Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB820 Compare Versions

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Version 2 (New)

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3		-	ENGR. S. B. NO. 820 Page 1 1
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28		-	ENGROSSED SENATE
29		-	BILL NO. 820 By: Boren of the Senate
	29	+	SENATE FLOOR VERSION
	30	+	February 20, 2025
	31	+	AS AMENDED
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31		-	~~and~~
	33	+	SENATE BILL NO. 820 By: Boren
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33		-	Gise of the House
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38	39		[ incentives - sports leagues - effective date ]
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44	45		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
45	46		SECTION 1. AMENDATORY Section 2, Cha pter 298, O.S.L.
46	47		2024 (68 O.S. Supp. 2024, Section 3951), is amended to read as
47	48		follows:
48	49		Section 3951. A. An establishment which meets the
49	50		qualifications specified in the Oklahoma Five Major Sports Leagues
50	51		Rebate Program Act may receive quarterly rebate payments from the
51	52		Oklahoma Tax Commission pursuant to the provisions of the Oklahoma
52	53		Quality Jobs Program Act; provided, such an estab lishment defined or
53	54		classified in the NAICS Manual under U.S. Industry No. 711211 (2007
54	55		version) and which is a profession al sports team from one of the
55	56		five major sports leagues (National Football League, or NFL;
56	57		National Basketball Association, or NBA; National Hockey League, or
57	58		NHL; Major League Baseball, or MLB; and Major League Soccer, or MLS ;
58	59		Women’s National Basketball Association, or WNBA; Women ’s
59	60		Professional Fastpitch, or WPF; and National Women ’s Soccer League,
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86	88		or NWSL) may receive quarterly reba te payments for the period of
87	89		time that the establishment is located and performs in this state.
88	90		The amount of payment sh all be equal to the net benefit rate
89	91		multiplied by the actual gross payroll of sports -league jobs for a
90	92		calendar quarter as verified by the Oklahoma Employment Security
91	93		Commission.
92	94		1. Any establishment or entity with a NAICS code classified as
93	95		711211 and which is a professional sports team from one of the five
94	96		major sports leagues (NFL, NBA, NHL, MLB, and MLS, WNBA, WPF, and
95	97		NWSL) that entered into a contract for the Quality Jobs Incentive
96	98		Program with the Oklahoma Department of Commerce shall only be
97	99		eligible to qualify for this program once the Quality Jobs contract
98	100		expires or is terminated.
99	101		2. Based upon the effective date upon which the first rebate
100	102		payment is to be received, an establishment or entity may receive
101	103		quarterly rebate payments. However, t he total yearly (or four
102	104		consecutive) rebate payments shall not exceed Ten Million Dollars
103	105		($10,000,000.00) in any single year.
104	106		3. As used in this act, “sports-league jobs” means:
105	107		a. full-time-equivalent employment in this state in an
106	108		establishment which has qualified to receive a payment
107	109		pursuant to the provisions of the Oklahoma Five Major
108	110		Sports Leagues Rebate Program Act, and
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135	138		b. shall include full-time-equivalent employment in this
136	139		state of employees who are employed by an employment
137	140		agency or similar entity other than the establishment
138	141		which has qualified to receive a payment and who are
139	142		leased or otherwise provided under contract t o the
140	143		qualified establishment if the job otherwise qualifies
141	144		as a sports-league job.
142	145		Sports-league jobs shall not include compensation paid to an
143	146		employee or independent contractor for an athletic contest conducted
144	147		in the state if the compensation is paid by an entity that does not
145	148		have its principal place of business in the state or that does not
146	149		own real or personal propert y having a market value of at least One
147	150		Million Dollars ($1,000,000.00) located in the state, and the
148	151		employees or independent contrac tors of such entity are compensated
149	152		to compete against the employees or independent contractors of an
150	153		establishment that q ualifies for rebate payments pursuant to this
151	154		act and which is organized under Oklahoma law or that is lawfully
152	155		registered to do business in the state and which does have its
153	156		principal place of business located in the state and owns real or
154	157		personal property having a market value of at least One Million
155	158		Dollars ($1,000,000.00) located in the state.
156	159		B. In order to receive rebate payments , an establishment shall
157	160		apply to the Oklahoma Department of Commerce. The application shall
158	161		be on a form prescribed by t he Department and shall contain such
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185	189		information as may be required by the Department to determine if the
186	190		applicant is qualified.
187	191		C. Except as otherwise provided by this section, in order to
188	192		qualify to receive payments, the establishment applying shall be
189	193		required to:
190	194		1. Have an annual gross payroll for sports -league jobs
191	195		projected by the Department to equal or exceed Ten Million Dolla rs
192	196		($10,000,000.00) within one (1) year of the first complete calendar
193	197		quarter following the start date; and
194	198		2. Have a number of full-time-equivalent employees subject to
195	199		the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes
196	200		and working an annual average of thirty (30) or more hours per week
197	201		in sports-league jobs located in this state equal to or in excess of
198	202		eighty percent (80%) of the total number of sports -league jobs.
199	203		D. Upon approval of an application, the Department shall notify
200	204		the Tax Commission and shall provide it with a copy of the contract
201	205		and the results of the cost -benefit analysis. The Tax Comm ission
202	206		may require the qualified establishment to submit additional
203	207		information as may be necessary to administer the provisions of the
204	208		Oklahoma Five Major Sports Leagues Rebate Program Act. The approved
205	209		establishment shall file quarterly claims with the Tax Commission
206	210		and shall continue to file such quarterly claims during the period
207	211		in which the establishment or entity from one of the five major
208	212		sports leagues is located and performs in this state to show its
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235	240		continued eligibility for rebate payments, or until it is no longer
236	241		qualified to receive rebate payments. The establishment or entity
237	242		may be audited by the Tax Commission to verify eligibility. Once
238	243		the establishment or entity is approved, an agreement shall be
239	244		deemed to exist between the establish ment and this state, requiring
240	245		the continued rebate payment to be made as long as the establishment
241	246		or entity retains its eligibility as defined in and established
242	247		pursuant to this section and within the limitations contained in the
243	248		Oklahoma Five Major Sports Leagues Rebate Program Act, which existed
244	249		at the time of approval. An establishment or entity described in
245	250		this subsection shall be required to repay all rebate payments
246	251		received under the Oklahoma Five Major Sports Leagues Rebate Program
247	252		Act if the establishment or entity is determined by the Tax
248	253		Commission to no longer have business operations in the state within
249	254		three (3) years from the beginning of the calendar quarter for which
250	255		the first rebate payment claim is filed.
251	256		E. For any contract executed by an establishment or entity
252	257		pursuant to this act, five percent (5%) of the quarterly rebate
253	258		payment amount shall be transferred by the Tax Commission to the
254	259		Oklahoma Quick Action Closing Fund.
255	260		SECTION 2. AMENDATORY Section 3, C hapter 298, O.S.L.
256	261		2024 (68 O.S. Supp. 2024, Section 3952), is amended to read as
257	262		follows:
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284	290		Section 3952. A. As soon as practicable a fter the end of the
285	291		first complete calendar quarter following the start date, the
286	292		establishment or entity shall file a cla im for the payment with the
287	293		Oklahoma Tax Commission and shall specify the actual number and
288	294		gross payroll of sports -league jobs for the establishment or entity
289	295		for the calendar quarter. The Tax Commission shall verify the
290	296		actual gross payroll for sports -league jobs for the establishment
291	297		for such calendar quarter. If the Tax Commission is not able to
292	298		provide verification utilizing all a vailable resources, the Tax
293	299		Commission may request additional information from the establishment
294	300		or entity as may be neces sary or may request the establishment to
295	301		revise its claim. An establishment or entity may file for an
296	302		extension of the initial filing date with the Oklahoma Department of
297	303		Commerce. Any such extension shall be based solely upon an
298	304		extraordinary adverse bu siness circumstance which prevented the
299	305		establishment or entity from hiring the sports -league jobs as
300	306		projected. If an establishment or entity fails to file claims as
301	307		required by this section, it shall forfeit the right to receive any
302	308		rebate payments afte r one (1) year from the start date. If an
303	309		establishment or entity has filed at least one claim pursuant to
304	310		this section but fails to file another claim within two (2) years of
305	311		the most recent claim, the Tax Commission, after consulting with the
306	312		Oklahoma Department of Commerce, may dismiss the establishment from
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333	340		the program, forfeiting the right of the establishment or entity to
334	341		receive rebate payments based on that contract.
335	342		B. If the actual verified gross payroll for four (4)
336	343		consecutive calendar quarter s does not equal or exceed the
337	344		applicable total required by this act within three (3) years of the
338	345		start date, or does not equal or exceed the applicable total
339	346		required by Section 3604 of Title 68 of the Oklahoma Statutes at any
340	347		other time during the entir e period after the start date for
341	348		establishments defined or classified in the NAICS Manual under U.S.
342	349		Industry No. 711211 (2007 versio n) and which are a professional
343	350		sports team from one of the five major sports leagues (NFL, NBA,
344	351		NHL, MLB, and MLS, WNBA, WPF, and NWSL), the rebate payments shall
345	352		not be made and shall not be resumed until such time as the actual
346	353		verified gross payroll equals or exceeds the applicable amounts
347	354		specified in Section 3604 of Title 68 of the Oklahoma Statutes. If
348	355		an establishment fails to achieve the required gross payroll within
349	356		three (3) years of the start date, the establishment shall not make
350	357		a new or renewal application for rebate payments authorized pursuant
351	358		to the Oklahoma Five Major Sports Leagues Rebate Program Act for a
352	359		period of twelve (12) months from the last day of the last month of
353	360		the three-year period during which the required gross payroll amount
354	361		was not achieved.
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381	389		C. In no event shall rebate payments cumulatively exceed the
382	390		estimated net direct state benefits or Ten Million Dollars
383	391		($10,000,000.00) in four (4) consecutive quarters.
384	392		D. As soon as practicable after verification of the actual
385	393		gross payroll as required by this section, the Tax Commission shall
386	394		issue a warrant to the establishment in the amount of th e net
387	395		benefit rate multiplied by the actual gross payroll as determined
388	396		pursuant to subsection A of this section for the calendar quarter.
389	397		SECTION 3. AMENDATORY Section 4, Chapter 298, O.S.L.
390	398		2024 (68 O.S. Supp. 2024, Section 3953 ), is amended to read as
391	399		follows:
392	400		Section 3953. There is hereby created within the State Treasury
393	401		a special fund for the Oklahoma Tax Commission to be designated the
394	402		“Oklahoma Five Major Sports Leagues Rebate Payment Fund ”. The Tax
395	403		Commission is hereby a uthorized and directed to withhold a portion
396	404		of the taxes levied and collected pursuant to Section 2355 of Title
397	405		68 of the Oklahoma Statutes for deposit into the fund. The amount
398	406		deposited shall equal the sum of an amount determined by multiplying
399	407		the net benefit rate provided by the Oklahoma Department of Commerce
400	408		by the gross payroll as determined pursuant to the provisions of
401	409		this act. All the amounts deposited in the fund shall be used and
402	410		expended by the Tax Commission solely for the purposes and in the
403	411		amounts authorized by the Oklahoma Five Major Sports Leagues Rebate
404	412		Program Act. The liability of the State of Oklahoma to make the
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431	440		rebate payments under this act shall be limited to the balance
432	441		contained in the fund created by this section.
433	442		SECTION 4. This act shall become effective November 1, 2025.
434		-	Passed the Senate the 12th day of March, 2025.
435		-
436		-
437		-
438		-	Presiding Officer of the Senate
439		-
440		-
441		-	Passed the House of Representatives the ____ day of __________,
442		-	2025.
443		-
444		-
445		-
446		-	Presiding Officer of the House
447		-	of Representatives
448		-
	443	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
	444	+	February 20, 2025 - DO PASS