Req. No. 1092 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 820 By: Boren
AS INTRODUCED
An Act relating to incentives; amending Sections 2,
3, and 4, Chapter 298, O.S.L. 2024 (68 O.S. Supp.
2024, Sections 3951, 3952, and 3953) , which relate to
the Oklahoma Five Major Sports Leagues Rebate Program
Act; modifying name of act and fund; expanding sports
leagues eligible for incentives; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A:
SECTION 1. AMENDATORY Section 2, Chapter 298, O.S .L.
2024 (68 O.S. Supp. 2024, Section 3951), is amended to read as
follows:
Section 3951. A. An establishment which meets the
qualifications specified in the Oklahoma Five Major Sports Leagues
Rebate Program Act may receive quarterly rebate payments from the
Oklahoma Tax Commission pursuant to the provisions of the Oklahoma
Quality Jobs Program Act; provided, such an establishment defined or
classified in the NAICS Manual under U.S. Industry No. 711211 (2007
version) and which is a professional sports tea m from one of the
five major sports leagues (National Football League, or NFL;
Req. No. 1092 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
National Basketball Association, or NBA; National Hockey League, or
NHL; Major League Baseball, or MLB; and Major League Soccer, or MLS ;
Women’s National Basketball Association, or WNBA; Women ’s
Professional Fastpitch, or WPF; and National Women ’s Soccer League,
or NWSL) may receive quarterly rebate payments for the period of
time that the establishment is located and performs in this state.
The amount of payment shall be equal to the net benefit rate
multiplied by the actual gross payroll of sports -league jobs for a
calendar quarter as verified by the Oklahoma Employment Security
Commission.
1. Any establishment or entity with a NAICS code classified as
711211 and which is a professional sports team from one of the five
major sports leagues (NFL, NBA, NHL, MLB, and MLS, WNBA, WPF, and
NWSL) that entered into a contract for the Quality Jobs Incentive
Program with the Oklahoma Department of Commerce shall only be
eligible to qualify for this program once the Quality Jobs contract
expires or is terminated.
2. Based upon the effective date upon which the first rebate
payment is to be received, an establish ment or entity may receive
quarterly rebate payments. However, the total yearly (or four
consecutive) rebate payments shall not exceed Ten Million Dollars
($10,000,000.00) in any single year.
3. As used in this act, “sports-league jobs” means:
Req. No. 1092 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
a. full-time-equivalent employment in this state in an
establishment which has qualified to receive a payment
pursuant to the provisions of the Oklahoma Five Major
Sports Leagues Rebate Program Act, and
b. shall include full-time-equivalent employment in this
state of employees who are employed by an employment
agency or similar entity other than the establishment
which has qualified to receive a payment and who are
leased or otherwise provided under contract to the
qualified establishment if the job otherwise qualif ies
as a sports-league job.
Sports-league jobs shall not include compensation paid to an
employee or independent contractor for an athletic contest conducted
in the state if the compensation is paid by an entity that does not
have its principal place of bu siness in the state or that does not
own real or personal property having a market value of at least One
Million Dollars ($1,000,000.00) located in the state, and the
employees or independent contractors of such entity are compensated
to compete against th e employees or independent contractors of an
establishment that qualifies for rebate payments pursuant to this
act and which is organized under Oklahoma law or that is lawfully
registered to do business in the state and which does have its
principal place of business located in the state and owns real or
Req. No. 1092 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
personal property having a market value of at least One Million
Dollars ($1,000,000.00) located in the state.
B. In order to receive rebate payments, an establishment shall
apply to the Oklahoma Department of Commerce. The application shall
be on a form prescribed by the Department and shall contain such
information as may be required by the Department to determine if the
applicant is qualified.
C. Except as otherwise provided by this section, in order to
qualify to receive payments, the establishment applying shall be
required to:
1. Have an annual gross payroll for sports -league jobs
projected by the Department to equal or exceed Ten Million Dollars
($10,000,000.00) within one (1) year of the first comp lete calendar
quarter following the start date; and
2. Have a number of full -time-equivalent employees subject to
the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes
and working an annual average of thirty (30) or more hours per week
in sports-league jobs located in this state equal to or in excess of
eighty percent (80%) of the total number of sports -league jobs.
D. Upon approval of an application, the Department shall notify
the Tax Commission and shall provide it with a copy of the con tract
and the results of the cost -benefit analysis. The Tax Commission
may require the qualified establishment to submit additional
information as may be necessary to administer the provisions of the
Req. No. 1092 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Oklahoma Five Major Sports Leagues Rebate Program Act. The approved
establishment shall file quarterly claims with the Tax Commission
and shall continue to file such quarterly claims during the period
in which the establishment or entity from one of the five major
sports leagues is located and performs in thi s state to show its
continued eligibility for rebate payments, or until it is no longer
qualified to receive rebate payments. The establishment or entity
may be audited by the Tax Commission to verify eligibility. Once
the establishment or entity is appr oved, an agreement shall be
deemed to exist between the establishment and this state, requiring
the continued rebate payment to be made as long as the establishment
or entity retains its eligibility as defined in and established
pursuant to this section an d within the limitations contained in the
Oklahoma Five Major Sports Leagues R ebate Program Act, which existed
at the time of approval. An establishment or entity described in
this subsection shall be required to repay all rebate payments
received under the Oklahoma Five Major Sports Leagues Rebate Program
Act if the establishment or entity is determined by the Tax
Commission to no longer have business operations in the state within
three (3) years from the beginning of the calendar quarter for which
the first rebate payment claim is filed.
E. For any contract executed by an establ ishment or entity
pursuant to this act, five percent (5%) of the quarterly rebate
Req. No. 1092 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
payment amount shall be transferred by the Tax Commission to the
Oklahoma Quick Action Closing F und.
SECTION 2. AMENDATORY Section 3, Chapter 298, O.S.L.
2024 (68 O.S. Supp. 2024, Section 3952), is amended to read as
follows:
Section 3952. A. As soon as practicable after the end of the
first complete calendar quarter follo wing the start date, the
establishment or entity shall file a claim for the pa yment with the
Oklahoma Tax Commission and shall specify the actual number and
gross payroll of sports -league jobs for the establishment or entity
for the calendar quarter. The Tax Commission shall verify the
actual gross payroll for sports -league jobs for the establishment
for such calendar quarter. If the Tax Commission is not able to
provide verification utilizing all available resources, the Tax
Commission may request additi onal information from the establishment
or entity as may be necessary or may r equest the establishment to
revise its claim. An establishment or entity may file for an
extension of the initial filing date with the Oklahoma Department of
Commerce. Any such extension shall be based solely upon an
extraordinary adverse business circumstance which prevented the
establishment or entity from hiring the sports -league jobs as
projected. If an establishment or entity fails to file claims as
required by this sectio n, it shall forfeit the right to receive any
rebate payments after one (1) yea r from the start date. If an
Req. No. 1092 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
establishment or entity has filed at least one claim pursuant to
this section but fails to file another claim within two (2) years of
the most recent claim, the Tax Commission, after consulting with the
Oklahoma Department of Commerce, may dismiss the establishment from
the program, forfeiting the right of the establishment or entity to
receive rebate payments based on that contract.
B. If the actual verified gross payroll for four (4)
consecutive calendar quarters does not eq ual or exceed the
applicable total required by this act within three (3) years of the
start date, or does not equal or exceed the applicable total
required by Section 3604 of Tit le 68 of the Oklahoma Statutes at any
other time during the entire period after the start date for
establishments defined or classified in the NAICS Manual under U.S.
Industry No. 711211 (2007 version) and which are a professional
sports team from one of t he five major sports leagues (NFL, NBA,
NHL, MLB, and MLS, WNBA, WPF, and NWSL), the rebate payments shall
not be made and shall not be resumed until such time as the actual
verified gross payroll equals or exceeds the applicable amounts
specified in Section 3604 of Title 68 of the Oklahoma Statutes. If
an establishment fails to achieve the required gross payroll within
three (3) years of the start date, the establishment shall not make
a new or renewal application for rebate payments authorized pursuant
to the Oklahoma Five Major Sports Leagues Rebate Program Act for a
period of twelve (12) months from the last day of the last month of
Req. No. 1092 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
the three-year period during which the required gross payroll amount
was not achieved.
C. In no event shall rebate paymen ts cumulatively exceed the
estimated net direct state benefits or Ten Million Dollars
($10,000,000.00) in four (4) consecutive quarters.
D. As soon as practicable after verification of the actual
gross payroll as required by this section, the Tax Commissi on shall
issue a warrant to the establishment in the amount of the net
benefit rate multiplied by the actual gross payroll as determined
pursuant to subsection A of this section for the calendar quarter.
SECTION 3. AMENDATORY Sect ion 4, Chapter 298, O.S.L.
2024 (68 O.S. Supp. 2024, Section 3953), is amended to read as
follows:
Section 3953. There is hereby created within the State Treasury
a special fund for the Oklahoma Tax Commission to be designated the
“Oklahoma Five Major Sports Leagues Rebate Payment Fund ”. The Tax
Commission is hereby authorized and directed to withhold a portion
of the taxes levied and collected pursuant to Section 2355 of Title
68 of the Oklahoma Statutes for deposit into the fund. The amount
deposited shall equal the sum of an amount determined by multiplying
the net benefit rate provided by the Oklahoma Department of Commerce
by the gross payroll as determined pursuant to the provisions of
this act. All the amounts deposited in the fund shall be used a nd
expended by the Tax Commission solely for the purposes and in the
Req. No. 1092 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
amounts authorized by the Oklahoma Five Major Sports Leagues Rebate
Program Act. The liability of the State of Oklahoma to make the
rebate payments under this act shall be limited to the balance
contained in the fund created by this section.
SECTION 4. This act shall become effective November 1, 2025.
60-1-1092 QD 1/16/2025 12:39:05 AM