1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 317 By: Pemberton
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6 AS INTRODUCED
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7 An Act relating to development incentives; amending
7 62 O.S. 2021, Section 842, which relates to the
8 Oklahoma Local Development and Enterprise Zone
8 Incentive Leverage Act; adding certain reporting
9 requirements pursuant to the promulgation of rules by
9 the Oklahoma Department of Commerce; and providing an
10 effective date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 62 O.S. 2021, Section 842, is
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15 amended to read as follows:
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16 Section 842. A. An enterprise which locates its facility
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17 within an enterprise zone or which expands its existing facility
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18 after the designation of an enterprise zone as authorized by law and
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19 which is located in an incentive district as authorized pursuant to
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20 the provisions of the Local Development Act shall be eligible for
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21 the state local enterprise matching payment authorized pursuant to
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22 subsection A of Section 844 of this title.
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23 B. 1. A local governmental entity which approves a project
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24 plan pursuant to the provisions of the Local Development Act within
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 1 an enterprise zone or in support of a major tourism destination
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2 project which the local governmental entity determines is likely to
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3 significantly benefit contiguous or nearby enterprise zone census
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4 tracts shall be eligible for the state local government matching
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5 payment authorized pursuant to subsection D of Section 844 of this
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6 title; provided, no state local government matching payment shall be
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7 made for project costs in relation to:
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8 a. any gambling establishment, or
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9 b. any development within a project plan that provides
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10 for more than fifty percent (50%) of the net leasable
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11 space of such development to be used for retail
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12 purposes except for such portions of a development
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13 which includes grocery or specialty food store
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14 enterprises defined under NAICS Manual Industry Group
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15 No. 4451 or 4452 that provide healthy nutrition
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16 options including fresh fruits, vegetables, whole
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17 grains, seeds, nuts and healthy protein and that
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18 improve access within one-half (1/2) mile of any low
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19 income and low access geographies identified by the
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20 United States Department of Agriculture.
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21 State local government matching payments shall not be used to
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22 supplant local revenue currently being expended within the increment
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23 district boundaries.
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 1 2. In order to be eligible for state local government matching
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2 payments for approving a project within an enterprise zone, a local
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3 governmental entity shall provide to the Oklahoma Department of
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4 Commerce as part of the application provided for in subsection J of
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5 this section:
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6 a. an estimate of incremental revenues likely to be
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7 derived from the project, and
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8 b. certification that all projects described within the
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9 related project plan will generate, in the aggregate,
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10 a minimum of either One Million Dollars
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11 ($1,000,000.00) in payroll, exclusive of payroll for
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12 construction, or Five Million Dollars ($5,000,000.00)
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13 in investment.
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14 3. In order to be eligible for state local government matching
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15 payments in support of a major tourism destination project, a local
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16 governmental entity shall provide to the Oklahoma Department of
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17 Commerce as part of the application provided for in subsection J of
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18 this section:
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19 a. an estimate of incremental revenues new to the state
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20 likely to be derived from the project,
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21 b. certification that the major tourism destination meets
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22 the applicable criteria described in paragraph 12 of
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23 Section 841 of this title, and
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 1 c. an agreement to provide payment to the Oklahoma
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2 Department of Commerce to defray the costs of the
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3 study required by paragraph 4 of this subsection.
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4 4. To determine if a project qualifies as a major tourism
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5 destination project pursuant to subparagraph b of paragraph 12 of
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6 Section 841 of this title and to assist in other required
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7 determinations, the Oklahoma Department of Commerce shall cause a
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8 market and feasibility study to be conducted by an independent
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9 consultant with experience in the conduct of such studies. Upon
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10 review of the feasibility report, the Oklahoma Department of
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11 Commerce shall make its finding as to the reasonable probability
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12 that the proposed project is a major tourism destination project as
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13 provided in subparagraph b of paragraph 12 of Section 841 of this
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14 title.
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15 C. For purposes of the Oklahoma Local Development and
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16 Enterprise Zone Incentive Leverage Act, an enterprise engaged in a
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17 retail activity, where otherwise prohibited by the Oklahoma
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18 Enterprise Zone Act for purposes of the benefits and incentives
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19 extended pursuant to the Oklahoma Enterprise Zone Act, shall be
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20 considered an eligible enterprise for purposes of the state local
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21 enterprise matching payment authorized by the Oklahoma Local
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22 Development and Enterprise Zone Incentive Leverage Act.
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 1 D. The maximum amount of state local enterprise matching
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2 payments for an enterprise per fiscal year shall not exceed Two
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3 Hundred Thousand Dollars ($200,000.00).
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4 E. Except as provided in subsection H of this section, for
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5 purposes of the Oklahoma Local Development and Enterprise Zone
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6 Incentive Leverage Act, the maximum amount of aggregate investment
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7 in all qualifying facilities located in any single county which can
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8 qualify for a state local enterprise matching payment pursuant to
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9 subsection A of Section 844 of this title shall be computed for each
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10 county of the state by multiplying Two Hundred Dollars ($200.00)
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11 times the population of the county according to the most recent
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12 estimate provided by the United States Bureau of the Census prior to
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13 the date an application is made.
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14 F. The computation required by subsection E of this section
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15 shall be the maximum amount of aggregated investment qualifying for
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16 the purposes of all enterprises for the duration of the Oklahoma
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17 Local Development and Enterprise Zone Incentive Leverage Act.
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18 G. The aggregate investment limit for all facilities located
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19 within a county which may qualify for the state local enterprise
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20 matching payments pursuant to subsection A of Section 844 of this
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21 title shall:
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22 1. Not be less than Twenty Million Dollars ($20,000,000.00) for
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23 counties with a population of less than one hundred thousand
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24 (100,000) persons; and
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 1 2. Not be greater than Forty Million Dollars ($40,000,000.00)
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2 for all other counties of the state.
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3 H. The aggregate limit for all state local government matching
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4 payments made to any public entity on behalf of any local
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5 governmental entity within a single county pursuant to subsection D
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6 of Section 844 of this title for the duration of the Oklahoma Local
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7 Development and Enterprise Zone Incentive Leverage Act shall be an
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8 amount equal to the net benefit rate multiplied by the taxable gross
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9 sales derived from the project over the period of apportionment of
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10 local sales taxes, as certified by the Secretary of Commerce.
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11 I. The payments authorized by Section 844 of this title shall
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12 be available for business and governmental entities qualifying
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13 pursuant to the Local Development Act for investments made within an
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14 incentive district or for improvements made within an increment
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15 district prior to December 31, 2007, or for which an incentive
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16 district or an increment district has been created prior to December
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17 31, 2028, if the investments or improvements are begun not later
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18 than December 31, 2029.
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19 J. The Oklahoma Department of Commerce shall promulgate rules
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20 for administration of the Oklahoma Local Development and Enterprise
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21 Zone Incentive Leverage Act. Such rules shall:
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22 1. Include a procedure for an enterprise or local governmental
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23 entity to make application for state local enterprise and state
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24 local government matching payments pursuant to this section;
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 1 2. Reflect the intent that the Oklahoma Local Development and
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2 Enterprise Zone Incentive Leverage Act be fiscally neutral to the
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3 state; and
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4 3. Establish reporting requirements for successful applicants
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5 which allow data collection and analysis by the Department on
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6 employment, capital investment, changes in assessed value of a
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7 project and other impacts resulting from payments and reporting of
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8 such data by the Department to the Oklahoma Tax Commission for the
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9 purposes of subsection B of Section 847 of this title; and
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10 4. Establish reporting requirements for local governmental
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11 entities that approve a project plan pursuant to the provisions of
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12 the Local Development Act within an enterprise zone or in support of
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13 a major tourism destination project which shall include:
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14 a. the name of the increment or incentive district,
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15 b. whether the increment or incentive district was
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16 created by a municipality or county government,
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17 c. a map with a defined boundary of the increment or
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18 incentive district,
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19 d. the length of the project and its date of expiration,
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20 e. the base assessed value, as certified by the county
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21 assessor, if required pursuant to Section 862 of this
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22 title,
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23 f. the total annual value of the increment, as defined in
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24 Section 853 of this title, and
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 1 g. a list of the taxing jurisdictions affected and their
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2 respective total millage levies.
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3 The report developed pursuant to the requirements of this paragraph
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4 shall be provided to each taxing jurisdiction affected by the
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5 increment or incentive district.
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6 SECTION 2. This act shall become effective November 1, 2023.
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8 59-1-892 QD 1/12/2023 6:53:06 PM
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