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Oklahoma Legislature· SB 820Recommendation to the full committee; Do Pass Appropriations and Budget Finance Subcommittee

An act relating to incentives, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                    STATE OF OKLAHOMA

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2                  1st Session of the 60th Legislature (2025)

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3 SENATE BILL 820              By: Boren
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6                    AS INTRODUCED

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7   An Act relating to incentives; amending Sections 2,

7   3, and 4, Chapter 298, O.S.L. 2024 (68 O.S. Supp.

8   2024, Sections 3951, 3952, and 3953), which relate to

8   the Oklahoma Five Major Sports Leagues Rebate Program

9   Act; modifying name of act and fund; expanding sports

9   leagues eligible for incentives; 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  Section 2, Chapter 298, O.S.L.

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15 2024 (68 O.S. Supp. 2024, Section 3951), is amended to read as
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16 follows:
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17  Section 3951. A. An establishment which meets the

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18 qualifications specified in the Oklahoma Five Major Sports Leagues
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19 Rebate Program Act may receive quarterly rebate payments from the
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20 Oklahoma Tax Commission pursuant to the provisions of the Oklahoma
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21 Quality Jobs Program Act; provided, such an establishment defined or
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22 classified in the NAICS Manual under U.S. Industry No. 711211 (2007
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23 version) and which is a professional sports team from one of the
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24 five major sports leagues (National Football League, or NFL;
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    Req. No. 1092                                              Page 1
1 National Basketball Association, or NBA; National Hockey League, or
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2 NHL; Major League Baseball, or MLB; and Major League Soccer, or MLS;
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3 Women's National Basketball Association, or WNBA; Women's
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4 Professional Fastpitch, or WPF; and National Women's Soccer League,
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5 or NWSL) may receive quarterly rebate payments for the period of
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6 time that the establishment is located and performs in this state.
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7 The amount of payment shall be equal to the net benefit rate
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8 multiplied by the actual gross payroll of sports-league jobs for a
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9 calendar quarter as verified by the Oklahoma Employment Security
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10 Commission.
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11  1. Any establishment or entity with a NAICS code classified as

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12 711211 and which is a professional sports team from one of the five
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13 major sports leagues (NFL, NBA, NHL, MLB, and MLS, WNBA, WPF, and
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14 NWSL) that entered into a contract for the Quality Jobs Incentive
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15 Program with the Oklahoma Department of Commerce shall only be
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16 eligible to qualify for this program once the Quality Jobs contract
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17 expires or is terminated.
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18  2. Based upon the effective date upon which the first rebate

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19 payment is to be received, an establishment or entity may receive
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20 quarterly rebate payments. However, the total yearly (or four
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21 consecutive) rebate payments shall not exceed Ten Million Dollars
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22 ($10,000,000.00) in any single year.
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23  3. As used in this act, "sports-league jobs" means:

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    Req. No. 1092                                            Page 2
1   a. full-time-equivalent employment in this state in an

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2                  establishment which has qualified to receive a payment

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3                  pursuant to the provisions of the Oklahoma Five Major

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4                  Sports Leagues Rebate Program Act, and

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5   b. shall include full-time-equivalent employment in this

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6                  state of employees who are employed by an employment

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7                  agency or similar entity other than the establishment

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8                  which has qualified to receive a payment and who are

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9                  leased or otherwise provided under contract to the

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10                 qualified establishment if the job otherwise qualifies

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11                 as a sports-league job.

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12 Sports-league jobs shall not include compensation paid to an
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13 employee or independent contractor for an athletic contest conducted
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14 in the state if the compensation is paid by an entity that does not
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15 have its principal place of business in the state or that does not
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16 own real or personal property having a market value of at least One
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17 Million Dollars ($1,000,000.00) located in the state, and the
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18 employees or independent contractors of such entity are compensated
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19 to compete against the employees or independent contractors of an
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20 establishment that qualifies for rebate payments pursuant to this
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21 act and which is organized under Oklahoma law or that is lawfully
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22 registered to do business in the state and which does have its
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23 principal place of business located in the state and owns real or
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    Req. No. 1092                                          Page 3
1 personal property having a market value of at least One Million
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2 Dollars ($1,000,000.00) located in the state.
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3   B. In order to receive rebate payments, an establishment shall

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4 apply to the Oklahoma Department of Commerce. The application shall
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5 be on a form prescribed by the Department and shall contain such
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6 information as may be required by the Department to determine if the
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7 applicant is qualified.
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8   C. Except as otherwise provided by this section, in order to

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9 qualify to receive payments, the establishment applying shall be
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10 required to:
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11  1. Have an annual gross payroll for sports-league jobs

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12 projected by the Department to equal or exceed Ten Million Dollars
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13 ($10,000,000.00) within one (1) year of the first complete calendar
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14 quarter following the start date; and
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15  2. Have a number of full-time-equivalent employees subject to

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16 the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes
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17 and working an annual average of thirty (30) or more hours per week
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18 in sports-league jobs located in this state equal to or in excess of
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19 eighty percent (80%) of the total number of sports-league jobs.
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20  D. Upon approval of an application, the Department shall notify

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21 the Tax Commission and shall provide it with a copy of the contract
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22 and the results of the cost-benefit analysis. The Tax Commission
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23 may require the qualified establishment to submit additional
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24 information as may be necessary to administer the provisions of the
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    Req. No. 1092                                Page 4
1 Oklahoma Five Major Sports Leagues Rebate Program Act. The approved
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2 establishment shall file quarterly claims with the Tax Commission
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3 and shall continue to file such quarterly claims during the period
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4 in which the establishment or entity from one of the five major
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5 sports leagues is located and performs in this state to show its
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6 continued eligibility for rebate payments, or until it is no longer
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7 qualified to receive rebate payments. The establishment or entity
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8 may be audited by the Tax Commission to verify eligibility. Once
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9 the establishment or entity is approved, an agreement shall be
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10 deemed to exist between the establishment and this state, requiring
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11 the continued rebate payment to be made as long as the establishment
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12 or entity retains its eligibility as defined in and established
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13 pursuant to this section and within the limitations contained in the
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14 Oklahoma Five Major Sports Leagues Rebate Program Act, which existed
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15 at the time of approval. An establishment or entity described in
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16 this subsection shall be required to repay all rebate payments
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17 received under the Oklahoma Five Major Sports Leagues Rebate Program
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18 Act if the establishment or entity is determined by the Tax
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19 Commission to no longer have business operations in the state within
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20 three (3) years from the beginning of the calendar quarter for which
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21 the first rebate payment claim is filed.
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22  E. For any contract executed by an establishment or entity

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23 pursuant to this act, five percent (5%) of the quarterly rebate
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    Req. No. 1092                                               Page 5
1 payment amount shall be transferred by the Tax Commission to the
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2 Oklahoma Quick Action Closing Fund.
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3  SECTION 2.     AMENDATORY  Section 3, Chapter 298, O.S.L.

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4 2024 (68 O.S. Supp. 2024, Section 3952), is amended to read as
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5 follows:
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6  Section 3952. A. As soon as practicable after the end of the

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7 first complete calendar quarter following the start date, the
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8 establishment or entity shall file a claim for the payment with the
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9 Oklahoma Tax Commission and shall specify the actual number and
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10 gross payroll of sports-league jobs for the establishment or entity
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11 for the calendar quarter. The Tax Commission shall verify the
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12 actual gross payroll for sports-league jobs for the establishment
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13 for such calendar quarter. If the Tax Commission is not able to
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14 provide verification utilizing all available resources, the Tax
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15 Commission may request additional information from the establishment
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16 or entity as may be necessary or may request the establishment to
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17 revise its claim. An establishment or entity may file for an
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18 extension of the initial filing date with the Oklahoma Department of
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19 Commerce. Any such extension shall be based solely upon an
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20 extraordinary adverse business circumstance which prevented the
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21 establishment or entity from hiring the sports-league jobs as
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22 projected. If an establishment or entity fails to file claims as
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23 required by this section, it shall forfeit the right to receive any
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24 rebate payments after one (1) year from the start date. If an
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   Req. No. 1092                                               Page 6
1 establishment or entity has filed at least one claim pursuant to
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2 this section but fails to file another claim within two (2) years of
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3 the most recent claim, the Tax Commission, after consulting with the
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4 Oklahoma Department of Commerce, may dismiss the establishment from
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5 the program, forfeiting the right of the establishment or entity to
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6 receive rebate payments based on that contract.
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7  B. If the actual verified gross payroll for four (4)

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8 consecutive calendar quarters does not equal or exceed the
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9 applicable total required by this act within three (3) years of the
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10 start date, or does not equal or exceed the applicable total
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11 required by Section 3604 of Title 68 of the Oklahoma Statutes at any
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12 other time during the entire period after the start date for
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13 establishments defined or classified in the NAICS Manual under U.S.
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14 Industry No. 711211 (2007 version) and which are a professional
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15 sports team from one of the five major sports leagues (NFL, NBA,
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16 NHL, MLB, and MLS, WNBA, WPF, and NWSL), the rebate payments shall
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17 not be made and shall not be resumed until such time as the actual
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18 verified gross payroll equals or exceeds the applicable amounts
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19 specified in Section 3604 of Title 68 of the Oklahoma Statutes. If
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20 an establishment fails to achieve the required gross payroll within
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21 three (3) years of the start date, the establishment shall not make
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22 a new or renewal application for rebate payments authorized pursuant
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23 to the Oklahoma Five Major Sports Leagues Rebate Program Act for a
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24 period of twelve (12) months from the last day of the last month of
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   Req. No. 1092                                              Page 7
1 the three-year period during which the required gross payroll amount
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2 was not achieved.
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3   C. In no event shall rebate payments cumulatively exceed the

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4 estimated net direct state benefits or Ten Million Dollars
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5 ($10,000,000.00) in four (4) consecutive quarters.
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6   D. As soon as practicable after verification of the actual

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7 gross payroll as required by this section, the Tax Commission shall
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8 issue a warrant to the establishment in the amount of the net
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9 benefit rate multiplied by the actual gross payroll as determined
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10 pursuant to subsection A of this section for the calendar quarter.
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11  SECTION 3.       AMENDATORY  Section 4, Chapter 298, O.S.L.

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12 2024 (68 O.S. Supp. 2024, Section 3953), is amended to read as
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13 follows:
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14  Section 3953. There is hereby created within the State Treasury

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15 a special fund for the Oklahoma Tax Commission to be designated the
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16 "Oklahoma Five Major Sports Leagues Rebate Payment Fund". The Tax
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17 Commission is hereby authorized and directed to withhold a portion
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18 of the taxes levied and collected pursuant to Section 2355 of Title
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19 68 of the Oklahoma Statutes for deposit into the fund. The amount
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20 deposited shall equal the sum of an amount determined by multiplying
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21 the net benefit rate provided by the Oklahoma Department of Commerce
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22 by the gross payroll as determined pursuant to the provisions of
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23 this act. All the amounts deposited in the fund shall be used and
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24 expended by the Tax Commission solely for the purposes and in the
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    Req. No. 1092                                             Page 8
1 amounts authorized by the Oklahoma Five Major Sports Leagues Rebate
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2 Program Act. The liability of the State of Oklahoma to make the
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3 rebate payments under this act shall be limited to the balance
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4 contained in the fund created by this section.
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5   SECTION 4. This act shall become effective November 1, 2025.

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    Req. No. 1092                                 Page 9
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