STATE OF OKLAHOMA

1st Session of the 54th Legislature (2013)

SENATE BILL 537	By:	Anderson

AS INTRODUCED

An Act relating to public finance; creating the Midsize City Infrastructure Commission; providing for membership; staggering of membership terms; providing for appointment of chair; providing for a quorum; stipulating that Commission shall be subject to certain acts; specifying that members serve at pleasure of appointing authority; providing for the filling of vacancies; authorizing the Commission to review certain applications; limiting time for the Commission to act; providing for review of certain application by the Oklahoma Development Finance Authority; directing the Authority to develop certain procedure; directing Authority to provide certain support staff; amending 68 O.S. 2011, Section 1353, as amended by Section 540, Chapter 304, O.S.L. 2012 (68 O.S. Supp. 2012, Section 1353), which relates to apportionment of sales tax, directing certain revenues be placed into the Oklahoma Midsize City Infrastructure Financing Fund; providing for codification; and providing a conditional effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 5062.6b of Title 74, unless there is created a duplication in numbering, reads as follows:
A.  There is hereby created within the Oklahoma Development Finance Authority, the Midsize City Infrastructure Commission.  The Commission shall be composed of five (5) members as follows:
1.  One member appointed by the Governor, who shall be a resident of a municipality in this state with a population of less than fifty thousand (50,000);
2.  Two members appointed by the President Pro Tempore of the Senate, one of whom shall be a resident of a municipality in this state with a population of less than fifty thousand (50,000) and one of whom shall be a resident of a municipality in this state with a population of between fifty thousand (50,000) and one hundred thousand (100,000); and
3.  Two members appointed by the Speaker of the House of Representatives, one of whom shall be a resident of a municipality in this state with a population of less than fifty thousand (50,000) and one of whom shall be a resident of a municipality in this state with a population of between one hundred thousand (100,000) and one hundred twenty-five thousand (125,000).
B.  Initial appointments shall be made by July 1, 2015.  The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each appoint one member who is a resident of a municipality in this state with a population between fifty thousand (50,000) and one hundred thousand (100,000) for a term of two (2) years and one member who is a resident of a municipality in this state with a population of less than fifty thousand (50,000) for a term of four (4) years.  The Governor shall appoint one member for a term of two (2) years.  Members shall serve until their successors are duly appointed for a term of four (4) years. Subsequent appointments shall be made by and take effect on November 1 of the year in which the appointment is made.
C.  The Commission shall biannually appoint from among its members a chair, provided no member shall serve consecutive terms as chair of the Commission.  The Commission shall hold regular meetings at least once each quarter at a time and place determined by the Commission.  A majority of the Commission shall constitute a quorum for the transaction of business.
D.  The Commission shall act in accordance with the provisions of the Oklahoma Open Meeting Act and the Oklahoma Open Records Act.
E.  Members shall serve at the pleasure of their appointing authority.
F.  Vacancies shall be filled by the appointing authority.
SECTION 2.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 5062.6c of Title 74, unless there is created a duplication in numbering, reads as follows:
A.  The Midsize City Infrastructure Commission shall have the authority to review applications submitted pursuant to this section.  The Commission shall review and evaluate all applications submitted by municipalities seeking financing for proposed infrastructure projects pursuant to the Midsize City Infrastructure Finance Program.  The Commission shall, within ninety (90) days of receiving the application, either reject the application or submit the application to the Oklahoma Development Finance Authority for further review. The Authority, upon receipt of the application, shall conduct an independent review of the application and shall either approve or disapprove the proposed infrastructure project application.
B.  The Oklahoma Development Finance Authority shall develop a procedure for municipalities with a population of less than one hundred twenty-five thousand (125,000), according to the last federal decennial census, to submit to the Commission an application for financing an infrastructure project pursuant to the Midsize City Infrastructure Financing Program as provided in Section 44 of Article X of the Oklahoma Constitution.
C.  The Oklahoma Development Finance Authority shall provide staff and any staff support required by the Commission.
SECTION 3.     AMENDATORY     68 O.S. 2011, Section 1353, as amended by Section 540, Chapter 304, O.S.L. 2012 (68 O.S. Supp. 2012, Section 1353), is amended to read as follows:
Section 1353.  A.  It is hereby declared to be the purpose of the Oklahoma Sales Tax Code to provide funds for the financing of the program provided for by the Oklahoma Social Security Act and to provide revenues for the support of the functions of the state government of Oklahoma, and for this purpose it is hereby expressly provided that, revenues derived pursuant to the provisions of the Oklahoma Sales Tax Code, subject to the apportionment requirements for the Oklahoma Tax Commission and Office of Management and Enterprise Services Joint Computer Enhancement Fund provided by Section 265 of this title, shall be apportioned as follows:
1.	a.	the following amounts shall be paid to the State Treasurer to be placed to the credit of the General Revenue Fund to be paid out pursuant to direct appropriation by the Legislature:
Fiscal Year	Amount
FY 2003 and FY 2004	86.04%
FY 2005	85.83%
FY 2006	85.54%
FY 2007	85.04%
FY 2008 and each fiscal year thereafter	83.61%
b.	in the event that additional monies are necessary pursuant to paragraph 6 of this subsection, such additional monies shall be deducted in the proportion determined by the State Board of Equalization pursuant to paragraph 3 of Section 2355.1B of this title from the monies apportioned to the General Revenue Fund,
c.	for FY 2015 and each fiscal year thereafter one quarter of one percent (0.0025%) of revenues derived pursuant to the provisions of the Oklahoma Sales Tax Code from municipalities with a population of less than one hundred twenty-five thousand (125,000) shall be placed in the Oklahoma Midsize City Infrastructure Financing Fund as provided in Section 44 of Article X of the Oklahoma Constitution;
2.  For FY 2003, FY 2004 and FY 2005, ten and forty-two one-hundredths percent (10.42%), shall be paid to the State Treasurer to be placed to the credit of the Education Reform Revolving Fund of the State Department of Education and for FY 2006 and each fiscal year thereafter, ten and forty-six one-hundredths percent (10.46%) shall be paid to the State Treasurer to be placed to the credit of the Education Reform Revolving Fund of the State Department of Education;
3.  The following amounts shall be paid to the State Treasurer to be placed to the credit of the Teachers' Retirement System Dedicated Revenue Revolving Fund:
Fiscal Year	Amount
FY 2003 and FY 2004	3.54%
FY 2005	3.75%
FY 2006	4.0%
FY 2007	4.5%
FY 2008 and each fiscal year thereafter	5.0%
4.  For the fiscal year beginning July 1, 2010, and for each fiscal year thereafter, eighty-seven one-hundredths percent (0.87%) shall be paid to the State Treasurer to be further apportioned as follows:
a.	thirty-six percent (36%) shall be placed to the credit of the Oklahoma Tourism Promotion Revolving Fund, and
b.	sixty-four percent (64%) shall be placed to the credit of the Oklahoma Tourism Capital Improvement Revolving Fund; and
5.  For the fiscal year beginning July 1, 2010, and for each fiscal year thereafter, six one-hundredths percent (0.06%) shall be placed to the credit of the Oklahoma Historical Society Capital Improvement and Operations Revolving Fund.
6.  During the first fiscal year after the State Board of Equalization has made a determination as provided in Section 2355.1B of this title, regarding a baseline amount of revenue apportioned pursuant to paragraph 3 of this subsection, and for each fiscal year thereafter, in no event shall monies apportioned pursuant to paragraph 3 of this subsection, paragraph 3 of Section 1403 of this title and subparagraph c of paragraph 1 of Section 2352 of this title be less than such baseline amount.
B.  Provided, for the fiscal year beginning July 1, 2007, and every fiscal year thereafter, an amount of revenue shall be apportioned to each municipality or county which levies a sales tax subject to the provisions of Section 1357.10 of this title and subsection F of Section 2701 of this title equal to the amount of sales tax revenue of such municipality or county exempted by the provisions of Section 1357.10 of this title and subsection F of Section 2701 of this title.  The Oklahoma Tax Commission shall promulgate and adopt rules necessary to implement the provisions of this subsection.
SECTION 4.  This act shall become effective upon certification of election returns favoring passage of the Constitutional Amendment proposed in Senate Joint Resolution No. _____ of the 1st Session of the 54th Oklahoma Legislature.

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