Bill Text For HB2776 - Engrossed

 1|ENGROSSED HOUSE                                                        |
  |BILL NO. 2776                        By: Pfeiffer of the House         |
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  |                                         Montgomery of the Senate      |
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 7|          An Act relating to school funding; creating the              |
  |          Protecting Revenues for Oklahoma Teachers,                   |
 8|          Educators and Students (PROTEST) Fund; describing            |
  |          type and contents of fund; providing purpose of              |
 9|          fund; providing for expenditures; providing for              |
  |          reimbursement of claims; directing disbursement              |
10|          of funds; requiring repayment of disbursed funds;            |
  |          authorizing State Department of Education to                 |
11|          promulgate rules; amending 62 O.S. 2011, Section             |
  |          193, as amended by Section 457, Chapter 304,                 |
12|          O.S.L. 2012 (62 O.S. Supp. 2020, Section 193),               |
  |          which relates to the Ad Valorem Reimbursement                |
13|          Fund; modifying apportionment of funds; providing            |
  |          for codification; providing an effective date;               |
14|          and declaring an emergency.                                  |
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16|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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17|    SECTION 1.     NEW LAW     A new section of law to be codified     |
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18|in the Oklahoma Statutes as Section 3-111.1 of Title 70, unless        |
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19|there is created a duplication in numbering, reads as follows:         |
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20|     A.  There is hereby created in the State Treasury a revolving     |
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21|fund for the State Department of Education to be designated the        |
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22|"Protecting Revenues for Oklahoma Teachers, Educators and Students     |
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23|(PROTEST) Fund".  The fund shall be a continuing fund, not subject     |
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24|to fiscal year limitations, and shall consist of all monies received   |
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arsid8469671 ENGR. H. B. NO. 2776                                  Page 1
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 1|by the State Department of Education from ad valorem funds which are   |
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 2|under protest pursuant to Section 2884 of Title 68 of the Oklahoma     |
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 3|Statutes.  All monies accruing to the credit of said fund are hereby   |
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 4|appropriated and may be budgeted and expended by the State             |
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 5|Department of Education for the purpose of providing funding to        |
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 6|school districts which are affected by protested ad valorem taxes.     |
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 7|Expenditures from said fund shall be made upon warrants issued by      |
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 8|the State Treasurer against claims filed as prescribed by law for      |
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 9|approval and payment.                                                  |
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10|    B.  The board of education of each school district seeking         |
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11|reimbursement for lost revenue from the Protecting Revenues for        |
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12|Oklahoma Teachers, Educators and Students (PROTEST) Fund shall make    |
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13|claims for reimbursement on forms prescribed by the State Department   |
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14|of Education.  If the claim is approved by the State Department of     |
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15|Education, funds shall be disbursed to the school district board of    |
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16|education.  Once the ad valorem funds which are under protest are      |
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17|settled and disbursed to the school district, the school district      |
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18|board of education shall reimburse the PROTEST Fund.                   |
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19|    C.  The State Department of Education may promulgate rules to      |
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20|implement the provisions of this act.                                  |
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21|    SECTION 2.     AMENDATORY     62 O.S. 2011, Section 193, as        |
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22|amended by Section 457, Chapter 304, O.S.L. 2012 (62 O.S. Supp.        |
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23|2020, Section 193), is amended to read as follows:                     |
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arsid8469671 ENGR. H. B. NO. 2776                                  Page 2
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 1|    Section 193.  A.  There is hereby created in the State Treasury    |
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 2|a revolving fund for the Oklahoma Tax Commission to be designated      |
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 3|the "Ad Valorem Reimbursement Fund".  The fund shall be a continuing   |
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 4|fund, not subject to fiscal year limitations.  Monies apportioned to   |
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 5|this fund shall be expended as follows:                                |
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 6|    1.  To For the fiscal year ending June 30, 2022, the first Five    |
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 7|Million Dollars ($5,000,000.00) of revenue derived pursuant to the     |
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 8|provisions of Section 1 of this act shall be apportioned to the        |
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 9|Protecting Revenues for Oklahoma Teachers, Educators and Students      |
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10|(PROTEST) Fund.                                                        |
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11|    2.  The remainder of such revenue for the fiscal year ending       |
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12|June 30, 2022, and all such revenue for each fiscal year thereafter    |
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13|shall be expended as follows:                                          |
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14|         a.    to reimburse school districts of this state for loss    |
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15|              of revenue due to ad valorem funds which are under       |
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16|              protest pursuant to Section 2884 of Title 68 of the      |
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17|              Oklahoma Statutes by apportioning an amount to ensure    |
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18|              the PROTEST Fund balance is not less than Five Million   |
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19|              Dollars ($5,000,000.00),                                 |
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20|         b.    to reimburse counties of this state for loss of         |
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21|              revenue due to exemptions of ad valorem taxes for new    |
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22|              or expanded manufacturing or research and development    |
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23|              facilities;,                                             |
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24|    2.  To                                                             |
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arsid8469671 ENGR. H. B. NO. 2776                                  Page 3
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 1|         c.    to reimburse counties of this state for loss of         |
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 2|              revenue for school district and county purposes due to   |
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 3|              exemptions granted pursuant to the provisions of         |
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 4|              Section 2890 of Title 68 of the Oklahoma Statutes;,      |
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 5|              and                                                      |
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 6|    3.  To                                                             |
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 7|         d.    to reimburse counties of this state for loss of         |
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 8|              revenue due to decreased valuation and assessment for    |
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 9|              buffer strips pursuant to Section 2817.2 of Title 68     |
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10|              of the Oklahoma Statutes.                                |
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11|    Provided that it shall be the duty of the Tax Commission to        |
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12|assess the valuation of all property for new or expanded               |
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13|manufacturing or research and development facilities which are         |
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14|exempt from ad valorem taxes.                                          |
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15|    Monies apportioned to this fund the Ad Valorem Reimbursement       |
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16|Fund also may be transferred to other state funds or otherwise         |
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17|expended as directed by the Legislature by law.                        |
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18|    B.  The county commissioners of each county seeking                |
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19|reimbursement for lost revenue from the Ad Valorem Reimbursement       |
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20|Fund shall make claims for reimbursement on forms prescribed by the    |
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21|Tax Commission prior to April 30 of each year.  Claims for             |
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22|reimbursement for loss of revenue due to exemptions of ad valorem      |
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23|taxes for new or expanded manufacturing or research and development    |
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24|facilities shall be made separately from claims for reimbursement      |
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arsid8469671 ENGR. H. B. NO. 2776                                  Page 4
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 1|for loss of revenue for school district and county purposes due to     |
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 2|exemptions granted pursuant to the provisions of Section 2890 of       |
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 3|Title 68 of the Oklahoma Statutes and separately from claims for       |
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 4|reimbursement for loss of revenue for decreased valuation and          |
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 5|assessment of buffer strips.  Provided, the assessed valuation of a    |
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 6|school district as stated in the claim for reimbursement shall be      |
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 7|the same as reported to the State Department of Education on the       |
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 8|Estimate of Need and shall include the total valuation of property     |
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 9|exempt from taxation pursuant to Section 2902 of Title 68 of the       |
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10|Oklahoma Statutes.  The claims shall be either approved or             |
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11|disapproved in whole or in part by the Tax Commission by June 15 of    |
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12|each year.  A claim for reimbursement for loss of revenue due to an    |
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13|exemption of ad valorem taxes for a new or expanded manufacturing or   |
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14|research and development facility shall be disapproved if a county     |
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15|or school district has received any payment in lieu of ad valorem      |
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16|taxes from such facility, to the extent of the amount of such          |
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17|reimbursement.  If the Tax Commission determines that an exemption     |
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18|has been erroneously or unlawfully granted, it shall notify the        |
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19|appropriate county assessor who shall immediately value and assess     |
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20|the property and place it on the rolls for ad valorem taxation.        |
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21|Disbursements from the fund shall be made on warrants issued by the    |
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22|State Treasurer against claims filed by the Tax Commission with the    |
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23|Office of Management and Enterprise Services for payment.  Such        |
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24|disbursements shall be exempt from all agency expenditure ceilings.    |
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arsid8469671 ENGR. H. B. NO. 2776                                  Page 5
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 1|The county treasurer shall apportion or disburse such funds for        |
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 2|expenditures in the same manner as other ad valorem tax collections.   |
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 3|    C.  In the event monies apportioned to the Ad Valorem              |
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 4|Reimbursement Fund are insufficient to pay all claims for              |
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 5|reimbursement made pursuant to subsection B of this section, claims    |
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 6|for reimbursement for loss of revenue due to exemptions of ad          |
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 7|valorem taxes for new or expanded manufacturing or research and        |
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 8|development facilities shall be paid first, and any remaining funds    |
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 9|shall be distributed proportionally among the counties making claims   |
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10|for reimbursement for loss of revenue for school district and county   |
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11|purposes due to exemptions granted pursuant to the provisions of       |
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12|Section 2890 of Title 68 of the Oklahoma Statutes, according to the    |
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13|amount of the claim made by each county.  If any funds remain after    |
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14|paying all claims for reimbursement for loss of revenue due to         |
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15|exemptions of ad valorem taxation for new or expanded manufacturing    |
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16|or research and development facilities and for reimbursement for       |
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17|loss of revenue for school district and county purposes due to         |
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18|exemptions granted pursuant to the provisions of Section 2890 of       |
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19|Title 68 of the Oklahoma Statutes, the remaining funds shall be        |
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20|distributed proportionally among the counties making claims for        |
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21|reimbursement for loss of revenue for decreased valuation and          |
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22|assessment for buffer strips pursuant to Section 2817.2 of Title 68    |
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23|of the Oklahoma Statutes.                                              |
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24|    SECTION 3.  This act shall become effective July 1, 2021.          |
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arsid8469671 ENGR. H. B. NO. 2776                                  Page 6
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 1|    SECTION 4.  It being immediately necessary for the preservation    |
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 2|of the public peace, health or safety, an emergency is hereby          |
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 3|declared to exist, by reason whereof this act shall take effect and    |
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 4|be in full force from and after its passage and approval.              |
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 5|    Passed the House of Representatives the 10th day of March, 2021.   |
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  |                                     Presiding Officer of the House    |
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  |    Passed the Senate the ___ day of __________, 2021.                 |
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12|                                    Presiding Officer of the Senate    |
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arsid8469671 ENGR. H. B. NO. 2776                                  Page 7
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