1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1863 By: Stewart
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7 AS INTRODUCED
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8 An Act relating to incentives; amending 62 O.S. 2021,
8 Section 856, which relates to the Local Development
9 Act; expanding areas in which a county is authorized
9 to create certain districts; and providing an
10 effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 62 O.S. 2021, Section 856, is
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16 amended to read as follows:
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17 Section 856. A. The governing body shall designate and adopt
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18 the proposed boundaries of any district and the proposed boundaries
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19 of any project area. Except as otherwise provided in this
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20 subsection, any districts created by a city or town shall be
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21 confined to that territory within the corporate limits of such city
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22 or town and any districts created by a county shall be confined to
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23 that territory within the unincorporated areas of the county. Any
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 1 city, town, or county may by agreement jointly create a district
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2 with another entity.
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3 B. Upon the adoption and approval of the project plan, the
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4 governing body shall adopt an ordinance or resolution, whichever is
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5 applicable, which:
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6 1. Describes the boundaries of districts and project areas
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7 sufficiently definite to identify with ordinary and reasonable
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8 certainty the territory included in them;
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9 2. Creates the district as of a date provided in it or defers
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10 determination of such date, provided such date must be no more than
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11 ten (10) years after the date of approval of the project plan;
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12 3. Assigns a name to the district for identification purposes.
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13 The first district created shall be known as either an Incentive
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14 District or Increment District Number One, City, Town, or County of
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15 __________, whichever is applicable. Each subsequently created
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16 district shall be appropriately named and shall be assigned the next
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17 consecutive number; and
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18 4. Contains findings that:
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19 a. the project area or district meets at least one of the
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20 following criteria:
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21 (1) is a reinvestment area,
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22 (2) is a historic preservation area,
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23 (3) is an enterprise area, or
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 1 (4) is a combination of the areas specified in
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2 divisions (1), (2), and (3) of this subparagraph,
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3 b. the improvement of the area is likely to enhance the
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4 value of other real property in the area and to
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5 promote the general public interest. It shall not be
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6 necessary to identify the specific parcels meeting the
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7 criteria,
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8 c. the guidelines specified in paragraphs 1 and 2 of
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9 Section 852 of this title shall be followed,
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10 d. the aggregate net assessed value of the taxable
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11 property in all districts as determined pursuant to
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12 Section 862 of this title within the city or town
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13 shall not exceed twenty-five percent (25%) of the
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14 total net assessed value of taxable property within
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15 the city or town for cities or towns having a
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16 population of fifty thousand (50,000) or more or shall
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17 not exceed thirty-five percent (35%) of the total net
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18 assessed value of taxable property within the city or
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19 town for cities or towns having a population of less
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20 than fifty thousand (50,000),
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21 e. for projects approved by a county, the aggregate net
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22 assessed value of the taxable property in all
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23 districts as determined pursuant to Section 862 of
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24 this title within the county shall not exceed fifteen
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 1 percent (15%) of the total net assessed value of the
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2 taxable property within the county,
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3 f. the aggregate net assessed value of the taxable
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4 property in all districts as determined pursuant to
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5 Section 862 of this title within the city, the town,
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6 or the county shall not exceed twenty-five percent
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7 (25%) of the total net assessed value of any affected
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8 school district located within the city, town, or
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9 county, and
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10 g. the land area of this district and all other districts
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11 within the city, the town, or the county shall not
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12 exceed twenty-five percent (25%) of the total land
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13 area of the city, the town, or the county.
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14 For districts that are wholly or partially comprised or become
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15 comprised of industries operating under NAICS code 518210, the
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16 provisions of subparagraphs d through g of this paragraph shall not
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17 apply.
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18 C. It is the intention of the Legislature in adopting the Local
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19 Development Act that no long-term contractual obligation be created
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20 by the mere adoption of an ordinance or resolution establishing an
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21 increment district. Notwithstanding any provision contained in an
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22 ordinance, resolution, or project plan, an ordinance or resolution
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23 establishing an increment district shall constitute a legislative
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24 act and may be repealed, modified, or amended at any time during the
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 1 term of the increment district, by subsequent action of the
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2 governing body except as otherwise authorized pursuant to Sections
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3 854 and 863 of this title; provided, however, that no such ordinance
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4 shall be repealed, modified, or amended during the time that any
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5 bonds payable from incremental revenues are outstanding without the
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6 consent of the bondholders, if such bonds are issued pursuant to the
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7 provisions of Article X, Section 35 of the Oklahoma Constitution
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8 following its amendment by State Question No. 693.
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9 D. However, nothing in the Local Development Act shall restrict
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10 the ability of:
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11 1. Any city, town, or county to:
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12 a. issue debt in accordance with the applicable
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13 provisions of Article X of the Oklahoma Constitution,
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14 and any statutes enacted in connection therewith, and
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15 b. use incremental revenues derived from an increment
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16 district to pay principal, interest, or premium
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17 associated with such indebtedness; or
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18 2. Any public entity, other than a city, town, or county, to:
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19 a. issue tax apportionment bonds or notes in accordance
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20 with Section 863 of this title or to issue other types
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21 of revenue bonds or notes in accordance with other
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22 applicable provisions of Oklahoma law, and
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 1 b. use incremental revenues derived from an increment
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2 district to pay principal, interest, or premium
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3 associated with such indebtedness.
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4 SECTION 2. This act shall become effective November 1, 2024.
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6 59-2-3102 QD 1/17/2024 11:05:41 PM
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