Bill Text For HB2297 - House Floor Version

 1|              HOUSE OF REPRESENTATIVES - FLOOR VERSION                 |
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 2|                          STATE OF OKLAHOMA                            |
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 3|             1st Session of the 57th Legislature (2019)                |
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 4|COMMITTEE SUBSTITUTE                                                   |
  |FOR                                                                    |
 5|HOUSE BILL NO. 2297                  By: Caldwell (Trey) of the        |
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  |                                         Montgomery of the Senate      |
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11|                        COMMITTEE SUBSTITUTE                           |
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12|       [ revenue and taxation  apportionment - General                 |
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13|         Revenue Fund - Ad Valorem Reimbursement Fund -                |
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14|         effective date     emergency ]                                |
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17|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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18|    SECTION 1.     AMENDATORY     68 O.S. 2011, Section 2352, as       |
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19|last amended by Section 5, Chapter 337, O.S.L. 2016 (68 O.S. Supp.     |
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20|2018, Section 2352), is amended to read as follows:                    |
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21|    Section 2352.  It is hereby declared to be the purpose of          |
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22|Section 2351 et seq. of this title to provide revenue for general      |
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23|governmental functions of state government; and, for that purpose      |
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24|and to that end, it is expressly declared that the revenue derived     |
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arsid3765262 HB2297 HFLR                                           Page 1
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 1|herefrom and penalties and interest thereon, subject to the            |
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 2|apportionment requirements for the Rebuilding Oklahoma Access and      |
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 3|Driver Safety Fund, the Oklahoma Tourism and Passenger Rail            |
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 4|Revolving Fund and the Public Transit Revolving Fund to be derived     |
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 5|from income tax revenue that would otherwise be apportioned to the     |
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 6|General Revenue Fund as provided by Section 1521 of Title 69 of the    |
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 7|Oklahoma Statutes, subject to the apportionment requirements for the   |
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 8|Oklahoma Tax Commission and Office of Management and Enterprise        |
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 9|Services Joint Computer Enhancement Fund provided by Section 265 of    |
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10|this title, and subject to the apportionment requirements for the      |
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11|Oklahoma State Capitol Building Repair and Restoration Fund provided   |
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12|by Section 19 of Title 73 of the Oklahoma Statutes, shall be           |
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13|distributed as follows:                                                |
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14|    1.  For the fiscal year beginning July 1, 2002, the first Five     |
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15|Million Eight Hundred Thousand Dollars ($5,800,000.00) of revenue      |
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16|derived pursuant to the provisions of subsections A, B and E of        |
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17|Section 2355 of this title shall be apportioned to the Education       |
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18|Reform Revolving Fund.  The remainder of such revenue for the fiscal   |
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19|year beginning July 1, 2002, and all such revenue for each fiscal      |
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20|year thereafter shall be apportioned monthly as follows:               |
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21|         a.   (1)  the following amounts shall be paid to the State    |
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22|                   Treasurer to be placed to the credit of the         |
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23|                   General Revenue Fund of the state for such fiscal   |
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arsid3765262 HB2297 HFLR                                           Page 2
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 1|                   year for the support of the state government to     |
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 2|                   be paid out only pursuant to appropriation by the   |
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 3|                   Legislature:                                        |
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 4|                   Fiscal Year                         Amount          |
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 5|                   FY 2003 and FY 2004     87.12%                      |
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 6|                   FY 2005                 86.91%                      |
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 7|                   FY 2006                 86.66%                      |
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 8|                   FY 2007                 86.16%                      |
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 9|                   FY 2008 and each fiscal                             |
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10|                     year thereafter                                   |
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11|                     85.66% 82.95%                                     |
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12|              (2)  in the event that additional monies are necessary   |
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13|                   pursuant to paragraph 3 of this section, such       |
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14|                   additional monies shall be deducted in the          |
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15|                   proportion determined by the State Board of         |
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16|                   Equalization pursuant to paragraph 3 of Section     |
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17|                   2355.1B of this title from the monies apportioned   |
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18|                   to the General Revenue Fund,                        |
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19|         b.    for FY 2003 and each fiscal year thereafter, eight      |
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20|              and thirty-four one-hundredths percent (8.34%) shall     |
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21|              be paid to the State Treasurer to be placed to the       |
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22|              credit of the Education Reform Revolving Fund,           |
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arsid3765262 HB2297 HFLR                                           Page 3
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 1|         c.    the following amounts shall be paid to the State        |
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 2|              Treasurer to be placed to the credit of the Teachers'    |
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 3|              Retirement System Dedicated Revenue Revolving Fund:      |
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 4|              Fiscal Year                              Amount          |
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 5|              FY 2003 and FY 2004           3.54%                      |
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 6|              FY 2005                       3.75%                      |
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 7|              FY 2006                        4.0%                      |
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 8|              FY 2007                        4.5%                      |
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 9|              FY 2008 and each fiscal                                  |
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10|                year thereafter  5.0%                                  |
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11|         d.    for FY 2003 2020 and each fiscal year thereafter, one   |
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12|              percent (1%) three and seventy-one one-hundredths        |
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13|              percent (3.71%) shall be placed to the credit of the     |
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14|              Ad Valorem Reimbursement Fund;                           |
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15|    2.  Beginning July 1, 2003, for any period of time as certified    |
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16|by the Oklahoma Development Finance Authority and the Oklahoma         |
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17|Department of Commerce to be necessary for the repayment of            |
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18|obligations issued by the Oklahoma Development Finance Authority       |
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19|pursuant to Section 3654 of this title if the other sources of         |
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20|revenue paid to or apportioned to the Quality Jobs Program Incentive   |
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21|Leverage Fund are not adequate, including the proceeds from payment    |
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22|pursuant to the guaranty required by subsection M of Section 3654 of   |
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23|this title, an amount certified by the Oklahoma Development Finance    |
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24|Authority to the Oklahoma Tax Commission shall be apportioned to the   |
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arsid3765262 HB2297 HFLR                                           Page 4
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 1|Quality Jobs Program Incentive Leverage Fund before any other          |
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 2|apportionments are made as otherwise authorized by this paragraph.     |
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 3|The Oklahoma Development Finance Authority shall certify to the        |
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 4|Oklahoma Tax Commission the time as of which the revenue authorized    |
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 5|for apportionment pursuant to this paragraph is no longer required.    |
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 6|After the certification, the revenue derived from the income tax       |
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 7|shall be apportioned in the manner otherwise provided by this          |
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 8|section.  Except as otherwise provided by this paragraph, for the      |
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 9|fiscal year beginning July 1, 2002, the first Forty-One Million One    |
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10|Hundred Ninety Thousand Eight Hundred Dollars ($41,190,800.00) of      |
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11|revenue derived pursuant to the provisions of subsections D and E of   |
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12|Section 2355 of this title shall be apportioned to the Education       |
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13|Reform Revolving Fund.  The remainder of such revenue for the fiscal   |
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14|year beginning July 1, 2002, and all such revenue for each fiscal      |
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15|year thereafter, subject to the apportionment requirements for the     |
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16|Oklahoma Tax Commission and Office of Management and Enterprise        |
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17|Services Joint Computer Enhancement Fund provided by Section 265 of    |
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18|this title, shall be apportioned monthly as follows:                   |
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19|         a.    the following amounts shall be paid to the State        |
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20|              Treasurer to be placed to the credit of the General      |
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21|              Revenue Fund of the state for such fiscal year for the   |
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22|              support of the state government to be paid out only      |
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23|              pursuant to appropriation by the Legislature:            |
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24|              Fiscal Year                              Amount          |
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arsid3765262 HB2297 HFLR                                           Page 5
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 1|              FY 2003 and FY 2004          78.96%                      |
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 2|              FY 2005                      78.75%                      |
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 3|              FY 2006                      78.50%                      |
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 4|              FY 2007                       78.0%                      |
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 5|              (1)FY 2018 and each fiscal year thereafter               |
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 6|                   until the apportionment to the General              |
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 7|                   Revenue Fund equals the moving five-year            |
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 8|                   average amount for corporate income tax             |
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 9|                   as prescribed by paragraph 4 of this                |
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10|                   section 77.50% 74.79%                               |
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11|              (2)   there shall be apportioned from the tax            |
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12|                   levy imposed on corporate income tax to             |
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13|                   the Revenue Stabilization Fund created by           |
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14|                   Section 1 of this act, or to the                    |
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15|                   Constitutional Reserve Fund, as provided            |
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16|                   by Section 1 of this act, the amount of             |
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17|                   revenue, if any, which exceeds the moving           |
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18|                   five-year average amount as defined                 |
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19|                   pursuant to paragraph 4 of this section,            |
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20|         b.    for FY 2003 and each fiscal year thereafter, sixteen    |
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21|              and five-tenths percent (16.5%) shall be paid to the     |
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22|              State Treasurer to be placed to the credit of the        |
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23|              Education Reform Revolving Fund of the State             |
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24|              Department of Education,                                 |
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arsid3765262 HB2297 HFLR                                           Page 6
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 1|         c.    the following amounts shall be paid to the State        |
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 2|              Treasurer to be placed to the credit of the Teachers'    |
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 3|              Retirement System Dedicated Revenue Revolving Fund:      |
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 4|              Fiscal Year                              Amount          |
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 5|              FY 2003 and FY 2004           3.54%                      |
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 6|              FY 2005                       3.75%                      |
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 7|              FY 2006                        4.0%                      |
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 8|              FY 2007                        4.5%                      |
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 9|              FY 2008 and each fiscal                                  |
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10|                year thereafter  5.0%                                  |
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11|         d.    for FY 2003 2020 and each fiscal year thereafter, one   |
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12|              percent (1%) three and seventy-one one-hundredths        |
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13|              percent (3.71%) shall be placed to the credit of the     |
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14|              Ad Valorem Reimbursement Fund;                           |
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15|    3.  During the first fiscal year after the State Board of          |
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16|Equalization has made a determination as provided in Section 2355.1B   |
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17|of this title, regarding a baseline amount of revenue apportioned      |
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18|pursuant to subparagraph c of paragraph 1 of this section, and for     |
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19|each fiscal year thereafter, in no event shall monies apportioned      |
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20|pursuant to subparagraph c of paragraph 1 of this section, paragraph   |
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21|3 of Section 1353 of this title and paragraph 3 of Section 1403 of     |
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22|this title be less than such baseline amount; and                      |
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23|    4.  "Moving five-year average for corporate income tax" means,     |
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24|for purposes of the apportionments prescribed by this section, the     |
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arsid3765262 HB2297 HFLR                                           Page 7
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 1|amount of income tax on corporations, as determined by the State       |
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 2|Board of Equalization in the manner prescribed by Section 2 of this    |
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 3|act.                                                                   |
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 4|    SECTION 2.     AMENDATORY     62 O.S. 2011, Section 193, as        |
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 5|amended by Section 457, Chapter 304, O.S.L. 2012 (62 O.S. Supp.        |
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 6|2018, Section 193), is amended to read as follows:                     |
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 7|    Section 193.  A.  There is hereby created in the State Treasury    |
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 8|a revolving fund for the Oklahoma Tax Commission to be designated      |
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 9|the "Ad Valorem Reimbursement Fund".  The fund shall be a continuing   |
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10|fund, not subject to fiscal year limitations.  Monies apportioned to   |
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11|this fund shall be expended:                                           |
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12|    1.  To reimburse counties of this state for loss of revenue due    |
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13|to exemptions of ad valorem taxes for new or expanded manufacturing    |
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14|or research and development facilities;                                |
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15|    2.  To reimburse counties of this state for loss of revenue for    |
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16|school district and county purposes due to exemptions granted          |
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17|pursuant to the provisions of Section 2890 of Title 68 of the          |
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18|Oklahoma Statutes; and                                                 |
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19|    3.  To reimburse counties of this state for loss of revenue due    |
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20|to decreased valuation and assessment for buffer strips pursuant to    |
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21|Section 2817.2 of Title 68 of the Oklahoma Statutes; and               |
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22|    4.  To reimburse counties of this state for loss of revenue due    |
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23|to the exemptions authorized by Sections 8E and 8F of Article X of     |
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24|the Oklahoma Constitution.                                             |
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arsid3765262 HB2297 HFLR                                           Page 8
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 1|    Provided that it shall be the duty of the Tax Commission to        |
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 2|assess the valuation of all property for new or expanded               |
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 3|manufacturing or research and development facilities which are         |
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 4|exempt from ad valorem taxes.                                          |
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 5|    Monies apportioned to this fund also may be transferred to other   |
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 6|state funds or otherwise expended as directed by the Legislature by    |
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 7|law.                                                                   |
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 8|    B.  The county commissioners of each county seeking                |
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 9|reimbursement for lost revenue from the Ad Valorem Reimbursement       |
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10|Fund shall make claims for reimbursement on forms prescribed by the    |
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11|Tax Commission prior to April 30 of each year.  Claims for             |
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12|reimbursement for loss of revenue due to exemptions of ad valorem      |
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13|taxes for new or expanded manufacturing or research and development    |
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14|facilities shall be made separately from claims for reimbursement      |
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15|for loss of revenue for school district and county purposes due to     |
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16|exemptions granted pursuant to the provisions of Section 2890 of       |
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17|Title 68 of the Oklahoma Statutes and separately from claims for       |
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18|reimbursement for loss of revenue for decreased valuation and          |
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19|assessment of buffer strips and from claims for loss of revenue due    |
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20|to the provisions of Sections 8E and 8F of Article X of the Oklahoma   |
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21|Constitution.  Provided, the assessed valuation of a school district   |
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22|as stated in the claim for reimbursement shall be the same as          |
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23|reported to the State Department of Education on the Estimate of       |
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24|Need and shall include the total valuation of property exempt from     |
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arsid3765262 HB2297 HFLR                                           Page 9
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 1|taxation pursuant to Section 2902 of Title 68 of the Oklahoma          |
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 2|Statutes.  The claims shall be either approved or disapproved in       |
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 3|whole or in part by the Tax Commission by June 15 of each year.  A     |
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 4|claim for reimbursement for loss of revenue due to an exemption of     |
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 5|ad valorem taxes for a new or expanded manufacturing or research and   |
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 6|development facility shall be disapproved if a county or school        |
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 7|district has received any payment in lieu of ad valorem taxes from     |
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 8|such facility, to the extent of the amount of such reimbursement.      |
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 9|If the Tax Commission determines that an exemption has been            |
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10|erroneously or unlawfully granted, it shall notify the appropriate     |
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11|county assessor who shall immediately value and assess the property    |
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12|and place it on the rolls for ad valorem taxation.  Disbursements      |
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13|from the fund shall be made on warrants issued by the State            |
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14|Treasurer against claims filed by the Tax Commission with the Office   |
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15|of Management and Enterprise Services for payment.  Such               |
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16|disbursements shall be exempt from all agency expenditure ceilings.    |
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17|The county treasurer shall apportion or disburse such funds for        |
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18|expenditures in the same manner as other ad valorem tax collections.   |
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19|    C.  In the event monies apportioned to the Ad Valorem              |
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20|Reimbursement Fund are insufficient to pay all claims for              |
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21|reimbursement made pursuant to subsection B of this section, claims    |
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22|for reimbursement for loss of revenue due to exemptions of ad          |
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23|valorem taxes for new or expanded manufacturing or research and        |
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24|development facilities shall be paid first, and any remaining funds    |
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arsid3765262 HB2297 HFLR                                           Page 10
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 1|shall be distributed proportionally among the counties making claims   |
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 2|for reimbursement for loss of revenue for school district and county   |
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 3|purposes due to exemptions granted pursuant to the provisions of       |
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 4|Section 2890 of Title 68 of the Oklahoma Statutes, according to the    |
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 5|amount of the claim made by each county.  If any funds remain after    |
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 6|paying all claims for reimbursement for loss of revenue due to         |
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 7|exemptions of ad valorem taxation for new or expanded manufacturing    |
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 8|or research and development facilities and for reimbursement for       |
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 9|loss of revenue for school district and county purposes due to         |
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10|exemptions granted pursuant to the provisions of Section 2890 of       |
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11|Title 68 of the Oklahoma Statutes, the remaining funds shall be        |
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12|distributed proportionally among the counties making claims for        |
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13|reimbursement for loss of revenue for decreased valuation and          |
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14|assessment for buffer strips pursuant to Section 2817.2 of Title 68    |
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15|of the Oklahoma Statutes.                                              |
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16|    SECTION 3.  This act shall become effective July 1, 2019.          |
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17|    SECTION 4.  It being immediately necessary for the preservation    |
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18|of the public peace, health or safety, an emergency is hereby          |
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19|declared to exist, by reason whereof this act shall take effect and    |
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20|be in full force from and after its passage and approval.              |
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21|                                                                       |
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22|COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated     |
  |02/28/2019 - DO PASS, As Amended and Coauthored.                       |
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arsid3765262 HB2297 HFLR                                           Page 11
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