Bill > SB1858

This bill allows public entities, like government agencies, to enter into agreements with property owners or developers involved in development projects within designated areas called "increment districts." These agreements, known as taxpayer agreements, can be used to secure repayment of bonds or other financial obligations issued by the public entity, provide for tax payments, and support project financing. Importantly, these agreements create a voluntary and binding payment obligation for the property owner or developer, not a pledge of the public entity's credit or taxing power. If a taxpayer agreement includes a lien on the property to secure payments, this lien will automatically be in effect upon signing, will be treated similarly to a tax lien, and will have priority over most other liens except for previously filed tax liens. Delinquent payments under these agreements can be collected like delinquent ad valorem taxes, including interest, penalties, and collection costs. The agreements and their associated liens can be assigned to bondholders, and the public entity acts as a conduit issuer, meaning repayment of bonds is limited to the pledged payments, tax increment revenues, or private security, and does not create a general obligation for the public entity. The bill also clarifies that these new powers are in addition to existing ones held by public entities and includes an emergency clause for immediate effect.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1858&Session=2600