An act relating to public finance, the official text

1                  STATE OF OKLAHOMA

2            2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 4312           By: Blair

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6                           AS INTRODUCED

7   An Act relating to public finance; authorizing

    creation of a County Economic Development Closing

8   Fund; providing monies in fund deemed

    appropriated; providing for budgeting and

9   expenditure; providing condition for

    expenditures; prescribing procedures governing

10  expenditure from fund; requiring substantial

    economic benefit; specifying benefits;

11  prescribing criteria for evaluation of proposed

    expenditures; prescribing procedures related to

12  county excise board or county budget board;

    providing for written agreements; prescribing

13  required content of agreement; providing for

    disclosure of information related to fund

14  expenditures; prescribing procedures related to

    certain capital expenditures; providing for

15  codification; and declaring an emergency.

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18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

19  SECTION 1.     NEW LAW  A new section of law to be

20 codified in the Oklahoma Statutes as Section 339 of Title 62,

21 unless there is created a duplication in numbering, reads as

22 follows:

23  A. This act shall permit counties with an excise board as

24 per Section 3005.1 of Title 68 of the Oklahoma Statutes or
1 budget board as per Section 1407 of Title 19 of the Oklahoma

2 Statutes to establish a County Economic Development Closing

3 Fund. The fund shall be a continuing fund, not subject to

4 fiscal year limitations, and shall consist of:

5   1. All monies apportioned or allocated to the fund pursuant

6 to law;

7   2. Any amounts appropriated by the board of county

8 commissioners to the fund;

9   3. Interest earned on the investment of money in the fund;

10  4. Gifts, grants, and other donations received for the fund

11 from public or private sources; and

12  5. Any other monies lawfully deposited into the fund.

13  B. All monies accruing to the credit of the fund are hereby

14 appropriated and may be budgeted and expended by the board of

15 county commissioners, or a county economic development authority

16 as designated by the board of county commissioners, for the

17 purposes of economic development and related infrastructure

18 development within the county. Expenditures from such funds

19 shall be made in instances in which the expenditure would likely

20 be a determining factor in locating or retaining a high-impact

21 business or project within the county.

22  C. Expenditures from the County Economic Development

23 Closing Fund shall be proposed by the board of county

24 commissioners, or the director of the designated county economic
1 development authority, and shall only be proposed if it is

2 determined that such expenditures are expected to result in a

3 substantial economic benefit to the county through any of the

4 following:

5   1. The creation of new jobs within the county;

6   2. The maintenance of existing jobs within the county that

7 are at risk for termination;

8   3. Substantial investment in new real property, plant, or

9 equipment, or in the improvement or retooling of existing plant

10 or equipment within the county; or

11  4. Additional revenues in either ad valorem, sales, or use

12 taxes for the county and its associated political subdivisions.

13  D. In evaluating proposed expenditures from the fund, the

14 board of county commissioners or the designated county economic

15 development authority shall consider, but not be limited to, the

16 following factors:

17  1. The number of jobs to be created by a new business

18 establishment;

19  2. The number of jobs to be retained by an existing

20 business establishment;

21  3. The average salary of jobs to be created or retained by

22 the business establishment;

23  4. The total capital investment to be made by the business

24 establishment;
1   5. The likelihood of other business establishments locating

2 or expanding within the county as a result of the business

3 activity to be conducted by the entity to receive payments from

4 the fund;

5   6. The overall impact on the economy of the area or

6 community in which the business activity of the applicant is or

7 will be conducted; and

8   7. Such other factors as the board of county commissioners

9 or the designated county economic development authority

10 determines to be relevant.

11  E. Upon receipt of an evaluation that recommends an

12 expenditure from the County Economic Development Closing Fund,

13 the board of county commissioners shall provide the evaluation

14 and recommendation to the county excise board, or budget board

15 if applicable, and the county treasurer for review and comment.

16 Final approval of an expenditure on a project shall be made by a

17 majority vote of the board of county commissioners at a public

18 meeting.

19  F. Upon approval by the board of county commissioners, the

20 county shall enter into a written agreement with the recipient

21 of the funds that sets forth the conditions for payment of

22 monies from the County Economic Development Closing Fund. Such

23 agreement shall specify:

24  1. The amount and schedule of payments;
1   2. The performance measures the business establishment must

2 meet to receive and retain the funds, including job creation,

3 capital investment, or other economic benefits;

4   3. Provisions for repayment of funds if performance

5 measures are not met;

6   4. A requirement for the business establishment to provide

7 periodic reports to the county on its progress towards meeting

8 the agreed-upon performance measures; and

9   5. Any other terms and conditions deemed necessary by the

10 board of county commissioners to protect the county's interests

11 and ensure compliance with this act.

12  G. The county shall disclose, on its official website or

13 through other public means, the name of each business

14 establishment receiving payments from the fund, the amount of

15 the payments, and a description of the economic benefits

16 expected to be generated. This disclosure shall not include

17 proprietary information of the business establishment.

18  H. If an agreement for payment of monies from the fund

19 includes payments for a capital improvement, and if the capital

20 improvement is subsequently sold or ceases to be used for the

21 agreed-upon economic development purpose before the terms of the

22 agreement are fully met, the recipient of the award shall repay

23 the county the money awarded to pay for the capital improvement,

24 with interest at the rate and according to the other terms
1 provided by the agreement and share with the county a

2 proportionate amount of any profit realized from the sale, as

3 specified in the agreement.

4   SECTION 2. It being immediately necessary for the

5 preservation of the public peace, health or safety, an emergency

6 is hereby declared to exist, by reason whereof this act shall

7 take effect and be in full force from and after its passage and

8 approval.

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10  60-2-14468  MAH  01/02/26

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