Is anyone considering trying to establish one of these Districts?

Enrolled Senate Bill No. 838 was signed by the Governor and becomes effective November 1, 2021.  In essence, it allows municipalities to create "Public Safety Protection Districts" for the purpose of funding police, fire, and EMS services with ad valorem "assessments."  The question has to be passed at a vote of the people of the municipality and the governing body has to adopt appropriate ordinances and/or resolutions.

One of my Towns is interested.  I assume we will wait until after November 1 to do anything, but I would like to be ready with the collective wisdom of this group.

Thanks!

Mark H. Ramsey
For the Firm
Taylor, Foster, Mallett,
Downs, Ramsey & Russell, P.C.
P.O. Box 309
Claremore, OK 74018
918-343-4100
918-343-4900 fax
mramsey@soonerlaw.commailto:apixley@soonerlaw.com
The information contained in this electronic mail transmission (including any accompanying attachments) is intended solely for its authorized recipient(s), and may be confidential and/or legally privileged. If you are not an intended recipient, or responsible for delivering some or all of this transmission to an intended recipient, you have received this transmission in error and are hereby notified that you are strictly prohibited from reading, copying, printing, distributing or disclosing any of the information contained in it. In that event, please contact us immediately by telephone (918) 343-4100 or by electronic mail at postmaster@soonerlaw.commailto:postmaster@soonerlaw.com and delete the original and all copies of this transmission (including any attachments) without reading or saving in any manner. Thank you.

We've had discussions about this at Oklahoma City.  We've found some issues with the bill as currently written and would probably not recommend it to our clients at this time.  Here are some of the issues.

1. We met with the Oklahoma County Assessor's and Treasurer's offices and they do not think they can effectively administer the "assessment".  The bill contains exceptions to the assessment - (industrial and agriculturally ZONED properties.  The counties do not classify property according to municipal zoning but have their own classification systems that do not match perfectly with municipal zoning.  Oklahoma County thinks it will be extremely difficult to reconcile their system of classifications with our zoning.  For smaller counties, it may be impossible to implement effectively.  The county assessors have their annual meeting this month and it is expected that the Oklahoma County Assessor's Office will bring up this issue and discuss lobbying for amendments to the law, including eliminating the "zoning" language and replacing it with language such as, "property classified by the County Assessor as ....". Additionally, they want their costs covered.  Currently the law only allows the Treasurers to recoup their costs.
2. If this is a true assessment district, there may be language missing from SB 838 that is constitutionally required.  This is an issue I haven't yet fully researched but was raised by Mr. Jordan, the head of our office.

Amy Douglas
City of Oklahoma City

From: Mark Ramsey MRamsey@soonerlaw.com
Sent: Wednesday, October 6, 2021 9:21 AM
To: oama@lists.imla.org
Subject: [Oama] Oklahoma Public Safety Protection Districts Act

Is anyone considering trying to establish one of these Districts?

Enrolled Senate Bill No. 838 was signed by the Governor and becomes effective November 1, 2021.  In essence, it allows municipalities to create "Public Safety Protection Districts" for the purpose of funding police, fire, and EMS services with ad valorem "assessments."  The question has to be passed at a vote of the people of the municipality and the governing body has to adopt appropriate ordinances and/or resolutions.

One of my Towns is interested.  I assume we will wait until after November 1 to do anything, but I would like to be ready with the collective wisdom of this group.

Thanks!

Mark H. Ramsey
For the Firm
Taylor, Foster, Mallett,
Downs, Ramsey & Russell, P.C.
P.O. Box 309
Claremore, OK 74018
918-343-4100
918-343-4900 fax
mramsey@soonerlaw.commailto:apixley@soonerlaw.com
The information contained in this electronic mail transmission (including any accompanying attachments) is intended solely for its authorized recipient(s), and may be confidential and/or legally privileged. If you are not an intended recipient, or responsible for delivering some or all of this transmission to an intended recipient, you have received this transmission in error and are hereby notified that you are strictly prohibited from reading, copying, printing, distributing or disclosing any of the information contained in it. In that event, please contact us immediately by telephone (918) 343-4100 or by electronic mail at postmaster@soonerlaw.commailto:postmaster@soonerlaw.com and delete the original and all copies of this transmission (including any attachments) without reading or saving in any manner. Thank you.

CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.

Thanks, Amy!  Anyone else?

Mark H. Ramsey
For the Firm
Taylor, Foster, Mallett,
Downs, Ramsey & Russell, P.C.
P.O. Box 309
Claremore, OK 74018
918-343-4100
918-343-4900 fax
mramsey@soonerlaw.commailto:apixley@soonerlaw.com
The information contained in this electronic mail transmission (including any accompanying attachments) is intended solely for its authorized recipient(s), and may be confidential and/or legally privileged. If you are not an intended recipient, or responsible for delivering some or all of this transmission to an intended recipient, you have received this transmission in error and are hereby notified that you are strictly prohibited from reading, copying, printing, distributing or disclosing any of the information contained in it. In that event, please contact us immediately by telephone (918) 343-4100 or by electronic mail at postmaster@soonerlaw.commailto:postmaster@soonerlaw.com and delete the original and all copies of this transmission (including any attachments) without reading or saving in any manner. Thank you.

From: Douglas, Amy G Amy.Douglas@okc.gov
Sent: Wednesday, October 6, 2021 9:50 AM
To: Mark Ramsey MRamsey@soonerlaw.com; oama@lists.imla.org
Subject: RE: Oklahoma Public Safety Protection Districts Act

We've had discussions about this at Oklahoma City.  We've found some issues with the bill as currently written and would probably not recommend it to our clients at this time.  Here are some of the issues.

1. We met with the Oklahoma County Assessor's and Treasurer's offices and they do not think they can effectively administer the "assessment".  The bill contains exceptions to the assessment - (industrial and agriculturally ZONED properties.  The counties do not classify property according to municipal zoning but have their own classification systems that do not match perfectly with municipal zoning.  Oklahoma County thinks it will be extremely difficult to reconcile their system of classifications with our zoning.  For smaller counties, it may be impossible to implement effectively.  The county assessors have their annual meeting this month and it is expected that the Oklahoma County Assessor's Office will bring up this issue and discuss lobbying for amendments to the law, including eliminating the "zoning" language and replacing it with language such as, "property classified by the County Assessor as ....". Additionally, they want their costs covered.  Currently the law only allows the Treasurers to recoup their costs.
2. If this is a true assessment district, there may be language missing from SB 838 that is constitutionally required.  This is an issue I haven't yet fully researched but was raised by Mr. Jordan, the head of our office.

Amy Douglas
City of Oklahoma City

From: Mark Ramsey <MRamsey@soonerlaw.commailto:MRamsey@soonerlaw.com>
Sent: Wednesday, October 6, 2021 9:21 AM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Oklahoma Public Safety Protection Districts Act

Is anyone considering trying to establish one of these Districts?

Enrolled Senate Bill No. 838 was signed by the Governor and becomes effective November 1, 2021.  In essence, it allows municipalities to create "Public Safety Protection Districts" for the purpose of funding police, fire, and EMS services with ad valorem "assessments."  The question has to be passed at a vote of the people of the municipality and the governing body has to adopt appropriate ordinances and/or resolutions.

One of my Towns is interested.  I assume we will wait until after November 1 to do anything, but I would like to be ready with the collective wisdom of this group.

Thanks!

Mark H. Ramsey
For the Firm
Taylor, Foster, Mallett,
Downs, Ramsey & Russell, P.C.
P.O. Box 309
Claremore, OK 74018
918-343-4100
918-343-4900 fax
mramsey@soonerlaw.commailto:apixley@soonerlaw.com
The information contained in this electronic mail transmission (including any accompanying attachments) is intended solely for its authorized recipient(s), and may be confidential and/or legally privileged. If you are not an intended recipient, or responsible for delivering some or all of this transmission to an intended recipient, you have received this transmission in error and are hereby notified that you are strictly prohibited from reading, copying, printing, distributing or disclosing any of the information contained in it. In that event, please contact us immediately by telephone (918) 343-4100 or by electronic mail at postmaster@soonerlaw.commailto:postmaster@soonerlaw.com and delete the original and all copies of this transmission (including any attachments) without reading or saving in any manner. Thank you.

CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.

To be valid, SB 838 needs to be either:

1. A valid authorization for a special assessment district under Okla. Const. Art. X, § 7; or
2. A valid authorization for a municipal ad valorem tax levy within the ad valorem taxation limits of Okla. Const. Art. X, § 9(a).

We think it has potential problems as either one.  Before deciding to hold a city or town election to create one of these districts, please consider:

• As an ad valorem tax authorization, it likely exceeds the limits in § 9(a) (15 mills).  Five (5) mills of the 15 allowed under § 9(a) was directly apportioned in that subsection to schools; and we believe the other 10 mills levy by § 9(a) has be taken by counties.  Yes, there are other ad valorem tax levy authorizations, but those are based on other specific provisions of the Okla. Const.-e.g., Art. X, § 27, Art. X, § 35, etc.

• As a special assessment district, it also likely does not meet the requirements of § 7 (and related case law on special assessment districts).  On this issue, check out the following authorities:

1. 1988 OK AG 44.
2. Public Service Co. v. NW Rogers County, 1983 OK 96, 675 P.2d 134.
3. Other, older cases on special assessment districts annotated under Okla. Const. Art. X, § 7 (to be valid, such assessments must be funding improvements to properties; the AG's opinion, the NW Rogers County case, and the older cases set out the criteria for the validity of a special assessment.

Before relying on it create a Public Safety Protection District, seeking an AG's Opinion on the validity of SB 838 is likely desirable.

From: Mark Ramsey MRamsey@soonerlaw.com
Sent: Wednesday, October 6, 2021 9:21 AM
To: oama@lists.imla.org
Subject: [Oama] Oklahoma Public Safety Protection Districts Act

Is anyone considering trying to establish one of these Districts?

Enrolled Senate Bill No. 838 was signed by the Governor and becomes effective November 1, 2021.  In essence, it allows municipalities to create "Public Safety Protection Districts" for the purpose of funding police, fire, and EMS services with ad valorem "assessments."  The question has to be passed at a vote of the people of the municipality and the governing body has to adopt appropriate ordinances and/or resolutions.

One of my Towns is interested.  I assume we will wait until after November 1 to do anything, but I would like to be ready with the collective wisdom of this group.

Thanks!

Mark H. Ramsey
For the Firm
Taylor, Foster, Mallett,
Downs, Ramsey & Russell, P.C.
P.O. Box 309
Claremore, OK 74018
918-343-4100
918-343-4900 fax
mramsey@soonerlaw.commailto:apixley@soonerlaw.com
The information contained in this electronic mail transmission (including any accompanying attachments) is intended solely for its authorized recipient(s), and may be confidential and/or legally privileged. If you are not an intended recipient, or responsible for delivering some or all of this transmission to an intended recipient, you have received this transmission in error and are hereby notified that you are strictly prohibited from reading, copying, printing, distributing or disclosing any of the information contained in it. In that event, please contact us immediately by telephone (918) 343-4100 or by electronic mail at postmaster@soonerlaw.commailto:postmaster@soonerlaw.com and delete the original and all copies of this transmission (including any attachments) without reading or saving in any manner. Thank you.

CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.