An Act
ENROLLED HOUSE
BILL NO. 4085 By: Wallace, Dempsey, and Lowe
(Dick) of the House
and
Howard, Jech, and Kirt of
the Senate
An Act relating to revenue and taxation; cr eating the
Oklahoma Rural Jobs Act; defining terms; establishing
requirements; establishing application proc ess;
providing for a tax credit; establishing an
authorization amount limit; establishing inve stment
requirements; allowing for lapse in certificati on;
creating a credit; allowing for tra nsfer of credit;
providing for recapture of credits; determining how
recaptured credits are to be allocated; creating
ownership limitations; creating reporting
requirements; creating a program exit process;
establishing a sunset date; amending 68 O.S. 2021,
Section 205, which relates to certain tax
information; providing exception related to certain
tax credits; providing for codification; and
providing an effective date.
SUBJECT: Revenue and taxation
BE IT ENACTED BY THE PE OPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section o f law to be codified
in the Oklahoma Statutes as Section 3930 of Title 68, unless there
is created a duplicat ion in numbering, reads as follows:
This act shall be known a nd may be cited as the "Oklahoma Rural
Jobs Act".
ENR. H. B. NO. 4085 Page 2
SECTION 2. NEW LAW A new section of law to b e codified
in the Oklahoma Statute s as Section 3931 of Title 68, unless there
is created a duplication in numbering, reads as follows:
As used in this act:
1. "Affiliate" means an entity that directly, or indirectly
through one or more intermedia ries, controls, or is controlled by,
or is under the common control with another entity. An entity is
controlled by another entity if the controll ing entity holds,
directly or indirectly , the majority of voting or ownership interest
in the controlled entity or has control over day-to-day operations
of the controlled entity by contract or by law;
2. "Applicable percentage" means zero percent (0%) for the
first two credit allowance dates, and fifteen percent (15%) for the
next four credit allowance dates;
3. "Capital investment" means any equity investment in a rural
fund by a rural investor which:
a. is acquired after the effective date of this act at
its original issuance solely in exchange for cash,
b. has one hundred percent (100% ) of its cash purchase
price used by the rural fund to make qualified
investments in eligible businesses located in this
state by the third anniversary of the initial credit
allowance date, and
c. is designated by the rural fund as a capital
investment under this act and is cert ified by the
Department under the provisio ns of Section 3 of this
act. This shall include any capital investment that
does not meet the provisions of paragraph 1 of
subsection A of Section 3 of this act, if such
investment was a capital investment in the hands of a
prior holder;
4. "Credit allowance date" means the date on which the
Department certifies a rural fund's capital investment and each of
the five anniversary dates of such date thereafter;
5. "Department" means the Oklahoma Department of Commerce;
ENR. H. B. NO. 4085 Page 3
6. "Eligible business" means a business that, at the time of
the initial qualifie d investment in the business:
a. has fewer than two hundred fifty employees, and
b. has its principal business operations in the state.
Any business which is classified as an eligible business at the
time of the initial investment in such business by a rural fund
shall remain classified as an eligible business and may receive
follow-on investments from any rural fund, and such follow-on
investments shall be qualified investments even though such business
may not meet the definition of an eligible business at the time of
such follow-on investment;
7. "Principal business operations" means the location where at
least sixty percent (60%) of a business's employees work or where
employees who are paid at least sixty percent (60%) of such
business's payroll work. A business that has agreed to relocate
employees using the proceeds of a qualified investment to establish
its principal business operations in a new location shall be deemed
to have its principal business operations in such new location if it
satisfied the requirements of this paragraph no later than one
hundred eighty (180) days after receiving a qualified investment;
8. "Purchase price" means the amount paid to the rural fund
that issues a capital investment which shall not exceed the amount
of capital investment authority certified under the provisions of
Section 3 of this act;
9. "Qualified investment" means any investment in an eligible
business or any loan to an eligible business with a stated maturity
date of at least one (1) year after the date of issuance, excluding
revolving lines of credit and senior -secured debt unless the chief
executive or similar officer of the eligible business certifies that
the eligible business sought and was denied similar financing from a
depository instituti on, by a rural fund; provided that, with respect
to any one eligible business, the maximum amount of investments made
in such business by on e or more rural funds, on a collective basi s
with all of the businesses' affiliates, with the proceeds of the
capital investments, shall be the greater of twenty percent (20%) of
the rural fund's capital investment authority or Six Million Five
Hundred Thousand Dollars ($6,500,000.00), exclusive of investments
made with repaid or redeemed investments or interest or profits
realized thereon; ENR. H. B. NO. 4085 Page 4
10. "Rural area" means any county of this state that has a
population of less than seventy-five thousand (75,000) or an y city
or town of this state that has a popula tion not to exceed seven
thousand (7,000) accordi ng to the 2020 Federal Decennial Census of
the United States;
11. "Rural fund" means an entity certified by the Department
under the provisions of Section 3 of this act;
12. "Rural investor" means an entity that makes a capital
investment in a rural fund;
13. "Senior-secured debt" means any loan that is secured by a
first mortgage on real estate with a loan-to-value ratio of less
than eighty percent (80%); and
14. "State tax liability" means the tax imposed under Section
2355, 2355.1P-4, or 2370 of Title 68 of the Oklahoma Statutes or
Section 624 or 628 of Title 36 of the Oklahoma Statutes . An
insurance company claiming a credit against state premium tax or
retaliatory tax or any other tax imposed by Section 624 or 628 of
Title 36 of the Oklahoma Statutes shall not be required to pay any
additional retaliatory tax under Section 628 of Title 36 of the
Oklahoma Statutes as a result of claiming the credit. The credit
may fully offset any retaliatory tax impo sed by Section 628 of Title
36 of the Oklahoma Statutes.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sec tion 3932 of Title 68, unless there
is created a duplica tion in numbering, rea ds as follows:
A. A rural fund that seeks to have an equity inve stment
certified as a capital investment eligible for credits authorized
under the provisions of this act shall apply to th e Department. The
Department shall begin accepting applications within ninety (90)
days of the effective date of this act. The application shall
include:
1. The amount of capital investment requested;
2. A copy of the applicant's or an affiliate of the applicant's
licenses as a rural business investment company under 7 U.S.C.,
Section 2009cc or as a small business investment company under 15
U.S.C., Section 681, and a certificate executed by an executive ENR. H. B. NO. 4085 Page 5
officer of the applicant attesting t hat such license remains in
effect and has not been revoked;
3. Evidence that, as of the date the application is submitted,
the applicant or affi liates of the applicant have invested at least
One Hundred Million Dollars ($100,000,000.00) in nonpublic companies
located in counties within the United States with a p opulation of
less than seventy-five thousand (75,000) according to the 2010
Federal Decennial Census of the United States;
4. A business plan that includes a revenue-impact assessment
projecting state and local tax revenue to be generated by the
applicant's proposed qualified investments, prepared by a nationally
recognized, third-party, independent economic forecasting firm using
a dynamic economic forecasting model that analyzes the applicant's
business plan over the ten (10) years following the date the
application is submitted to t he Department. Such plan shall include
an estimate of the number of jobs create d and jobs retained in this
state as a result of the applicant's qualified investments; and
5. A nonrefundable application fee of Five Thousand Dollars
($5,000.00) payable to the Department.
B. Within thirty (30) days after the receipt of a completed
application, the Department shall grant or deny the application in
full or in part. The Department shall deny the application if:
1. The applicant does not satisfy all the c riteria provided
under subsection A of this section;
2. The revenue-impact assessment submitted with the application
does not demonstrate that the applicant's business plan will result
in a positive fiscal impact on the state ove r a ten-year period that
exceeds the cumulative amount of tax credits that would be issued to
the applicant if the application was approved; or
3. The Department has already approved the maximum amoun t of
capital investment authority under Section 4 of this act.
C. If the Department denies any part of the application, it
shall inform the applicant of the grounds for such denial. If the
applicant provides any additional information required by the
Department or otherwise completes its application within f ifteen
(15) days of the notice of denial, the application shall be
considered complete as of the original date of submission. If the ENR. H. B. NO. 4085 Page 6
applicant fails to provide the information or fails to complete it s
application within the fifteen-day period, the application shall
remain denied and must be resubmitted with a new submission date and
a new application fee.
D. Upon approval of an application, the Department shall
certify the proposed equity investment as a capital investment
eligible for credits under this act, subject to limitations laid out
in Section 4 of this act. The Department shall provide written
notice of the certification to the applicant which shall include the
amount of the applicant's capital investment authority. The
Department shall certify capital investments in the order that the
application is received by the Department. Applications received on
the same day shall be deemed to have been received simultaneously.
For applications tha t are complete and received on the same day, the
Department shall certify applications in proportionate percentages
based upon the ratio of the amount of capital investment authority
requested in all applications.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statu tes as Section 3933 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. The Department shall certify capital investment authority
under the provisions of this act in amounts that woul d not authorize
more than Fifteen Million Dollars ($15,000,000.00) in state tax
credits to be claimed against state tax liability in any calendar
year, excluding any credit amounts carried forward as provided under
subsection A of Section 5 of this act. Within ninety (90) days of
the applicant receiving notice of certifi cation, the rural fund
shall issue the capital investment to and receive cash in the amount
of the certified amount from a rural investor. At least ten percent
(10%) of the rural investor's capital investment shall be composed
of capital raised by the rural investor directly or indirectly from
sources including directors, members, employees, officers, and
affiliates of the rural investor, other than the amount invested by
the allocatee claiming the tax credits in exchange for such
allocation of tax credit s. The rural fund shall provide the
Department with evidence of the receipt of the cash investment
within ninety-five (95) days of the applicant receiving notice of
certification.
B. If the rural fund does not receive the cash investment and
issue the capital investment within such time period following
receipt of the certificate notice, the certification shall lapse and ENR. H. B. NO. 4085 Page 7
the rural fund shall not issue the capital investment without
reapplying to the Department for certificati on. Lapsed
certifications shall revert to the Department and shall be reissued
pro rata to applicants whose capital investment allocations were
reduced in accordance with the application process provided under
subsection D of Section 3 of this act.
C. A rural fund, before making a qualified investment, may
request from the Department a written opinion as to whether th e
business in which it proposes to invest is an eligible business.
The Department, no later than fifteen (15) business days after the
date of receipt of such request, shall notify the rural fund of its
determination. If the Department fails to notify the rural fund of
its determination by the twentieth business day, the business in
which the rural fund proposes to invest shall be deemed an eligible
business.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Stat utes as Section 3934 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. Upon making a capital investment in a rural fund, a rural
investor shall have a right to a credit against such entity's state
tax liability that may be utilized on e ach credit allowance date of
such capital investment in an amount equal to the applicable
percentage for such credit allowance date multiplied by the purchase
price paid to the rural fund for the capital investment. The amount
of the credit claimed by a rural investor shall not exceed the
amount of such entity's state tax liability for the tax year for
which the credit is claimed. Any amount of credit that a rural
investor is prohibited from claiming in a tax year as a result of
this section may be carried forward for use in any of the five (5)
subsequent tax years, but shall not be carried back to prior tax
years. It is the intent of this act tha t a rural investor claiming
a credit under this act is not required to pay any additional tax
that may arise as a result of claiming such credit.
B. No credit claimed under the provisions of this act shall be
refundable or saleable on the open market. Credits earned by or
allocated to a partnership, limited liability company, or S-
corporation may be allocated to the partners, members, or
shareholders of such entity for their direct use in accordance with
the provisions of any agreement among such partners, members, or
shareholders, and a rural fund shall notify the Department of the
names of the entities that are eligible to utilize transfer of a ENR. H. B. NO. 4085 Page 8
capital investment upon such allocation, change, or transfer. Such
allocation shall not be considered a sale for the purpose of this
section.
C. The Department may recapture credits from a taxpay er that
claimed a credit authorized under this section if:
1. The rural fund does not invest sixty percent (60%) of its
capital investment authority in qualified investments in this state
within two (2) years of the credit allowance date, and one hundred
percent (100%) of its ca pital investment authority in qualified
investments in this state within three (3) years of the credit
allowance date; provided, that at least seventy percent (70%) of
these initial qualified investments must be made in eligible
businesses located in rural areas;
2. The rural fund fails to maintain qualified investments equal
to ninety percent (90%) of its capital invest ment authority from the
third anniversary until the sixth anniversary of the credit
allowance date, with seventy percent (70%) of such inv estments
maintained in eligible businesses located in rural areas. For each
year the rural fund fails to maintain such investments, the
Department may recapture an amount of such year's allowed credits
equal to the percentage difference between ninety per cent (90%) of a
rural fund's capital investment authority and the actual amount of
qualified investments maintained for such year. For the purposes of
this subsection, a qualified investment is considered even if the
qualified investment was sold or repaid so long as the rural fund
reinvests an amount equal to the capital returned or recovered or
repaid by the rural fund from the original investmen t, exclusive of
any profits realized, in other qualified investments in this state
within twelve (12) months of receipt of such capital. Amounts
received periodically by a rural fund shall be treated as
continually invested in qualified investment s if the amounts are
reinvested in one or more qualified investments by the end of the
following calendar year. A rural fund shall not be required to
reinvest capital returned from qualified investments after the fifth
anniversary of the credit allowance date , and such qualified
investments shall be considered held continuously by the rural fund
through the sixth anniversary of the credit allowance date;
3. Prior to the earlier of exiting the program in accordance
with this act or thirty (30) days after the sixt h anniversary of the
credit allowance date, the rural fund makes a distribution or
payment that results in the rural fund having less than one hundred ENR. H. B. NO. 4085 Page 9
percent (100%) of its capital investment authority invested in
qualified investments in the state or held in cash or other
marketable securities; or
4. The rural fund violates the provisions of Section 6 of this
act, in which case the Department may recapture an amount equal to
the amount of the rural fund's capital investment authority found to
be in violation of such provisions.
For the purposes of m eeting and maintaining the objectives
established for investment i n paragraphs 1 and 2 of this subsection,
a rural fund's qualified investment s shall be multiplied by a factor
of one and one-quarter (1 1/4) in counties with less than thirty
thousand (30,000) in population and more than thirteen thousand
(13,000) in population and shall be multiplied by a factor of one
and one-half (1 1/2) in counties with a population of thirteen
thousand (13,000) or less.
D. Recaptured credits and related capital investment authority
shall revert to the Department and shall be reissued pro rata to
applicants whose capital investment allocations were reduced in
accordance with the application process provided under subsection D
of Section 3 of this act.
E. No recapture shall occur until the rural fund has been given
notice of noncomplian ce and afforded six (6) months from the date of
such notice to cure the noncompl iance.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3935 of Title 68, unless there
is created a duplicatio n in numbering, reads as follows:
No eligible business that receives a qualified investment under
the provisions of this act, or any affiliates of such eligible
business, shall directly or in directly:
1. Own or have the right to acquire an ownership interest in a
rural fund or member or affiliate of a rural fund including, but not
limited to, a holder of a capital investment issued by a rural fund;
or
2. Loan to or invest in a rural fund or any member or affiliate
of a rural fund including, but not limited to, a holder of capital
investment issued by a rural fund, where the proceeds of such loan ENR. H. B. NO. 4085 Page 10
or investment are directly or indirectly used to fund or refinance
the purchase of capital investments under this act.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sec tion 3936 of Title 68, unless there
is created a duplication in numbering, rea ds as follows:
A. Rural funds shall submit a report to the Department within
the first fifteen (15) business da ys after the second and third
anniversary of the initial credit allowance date. The report
following the second anniversary shall provide documentation as to
the investment of sixty percent (60%) of the purchase price of such
capital investment in qualified investments. The report following
the third anniversary shall provide documentation as to the
investment of one hundred percent (100%) of the purchase price of
such capital investment in qualified investments. Unless previously
reported pursuant to th is subsection, such reports shall also
include:
1. The name and location of ea ch eligible business receiving a
qualified investment;
2. Bank statements of such rural fund evidencing each qualified
investment;
3. A copy of the written opinion of the Department, as provided
in subsection C of Section 4 of this act, or evidence that such
business was an eligible business at the time of such qualified
investment, as applicable;
4. The number of jobs created and jobs retained as a result of
each qualified investment;
5. The average salary of positions described in paragraph 4 of
this subsection; and
6. Such other information as required by the Depart ment.
B. For all subsequent years, rural funds shall submit an annual
report to the Department within ninety (90) days of the beginning of
the calendar year during the compliance period. The report shall
include, but is not limited to, the following:
1. The number of jobs created and jobs retained as a result of
qualified investments; ENR. H. B. NO. 4085 Page 11
2. The average annual salary of positions described in
paragraph 1 of this subsection; and
3. Such other information as required by the Department.
C. On or after the sixth anniversary of the credit allowance
date, a rural fund may apply to the Department to exit the program
and no longer be subject to the regulation hereunder. The
Department shall res pond to the exit application within f ifteen (15)
days of receipt. In evaluating the exit application, the fact that
no credits have been recaptured and that the rural fund has not
received a notice of recapture that has not been cured pursuant to
subsection E of Section 5 of this act shall be sufficient evidence
to prove that the rural fund is eligible for exit. The Department
shall not unreasonably deny an exit application submitted under this
section. If an exit application is denied, the notice shall include
the reasons for the determination.
SECTION 8. NEW LAW A new section of law to be co dified
in the Oklahoma Statutes as Section 3937 of Title 68, unless there
is created a duplication in numbering, reads as follows:
The Department shall accept no new applications for tax credits
authorized under this act after December 1, 2032.
SECTION 9. AMENDATORY 68 O.S. 2021, Section 205, is
amended to read as follows:
Section 205. A. The records and files of the Oklahom a Tax
Commission concerning the administra tion of the Uniform Tax
Procedure Code or of any state tax law shall be considered
confidential and privileged, except as otherwi se provided for by
law, and neither the Tax Commission nor any employee engaged in th e
administration of the Tax Commission or charged with the custody of
any such records or files nor any person who may have secured
information from the Tax Commission sha ll disclose any information
obtained from the records or files or from any examinatio n or
inspection of the premises or propert y of any person.
B. Except as provided in paragraph 26 of subsection C of this
section, neither the Tax Commission nor any emplo yee engaged in the
administration of the Tax Commission or charged with the custody o f
any such records or files shall be requi red by any court of this
state to produce any of the records or files fo r the inspection of ENR. H. B. NO. 4085 Page 12
any person or for use in any action o r proceeding, except when the
records or files or the facts shown thereby are directl y involved in
an action or proceeding purs uant to the provisions of the Uniform
Tax Procedure Code or of the state tax law, or when the
determination of the action or proc eeding will affect the validit y
or the amount of the claim of the state pursuant to a ny state tax
law, or when the information contained in the records or files
constitutes evidence of violation of t he provisions of the Uniform
Tax Procedure Code or of any state tax law.
C. The provisions of this section shall not prevent the Tax
Commission, or with respect to the Oklahoma Department of Commerce
in administration of the Oklahoma Rural Job s Act as provided by
paragraph 22 of this subsection, from disclosing the following
information and no liability whatsoever, civil or criminal, shall
attach to any member of the Tax Commission, or the Oklahoma
Department of Commerce as applicable, or any employee ther eof for
any error or omission in the disclosure of such inf ormation:
1. The delivery to a taxpayer or a duly authorized
representative of the taxpayer of a copy of any report or any other
paper filed by the taxp ayer pursuant to the provisions of the
Uniform Tax Procedure Code or of any state tax law;
2. The exchange of information that is not protected by the
federal Privacy Protection A ct, 42 U.S.C., Section 2000aa et seq.,
pursuant to reciprocal agreements ent ered into by the Tax Commission
and other state agencies or agencies of the federal government;
3. The publication of statisti cs so classified as to prevent
the identification of a particular report and the items thereof;
4. The examination of records an d files by the State Auditor
and Inspector or the duly authorized agents of the State Auditor and
Inspector;
5. The disclosing of information or evidence to the Oklahoma
State Bureau of Investigation, Attorney General, Oklahoma State
Bureau of Narcotics a nd Dangerous Drugs Control, any district
attorney or agent of any federal law enforcement agency when t he
information or evidence is to be used by such officials to
investigate or prosecute violations of the criminal provisions of
the Uniform Tax Procedure Code or of any state tax law or of any
federal crime committed against this state. Any information
disclosed to the Oklahoma State Bureau of Investigation, Attorney ENR. H. B. NO. 4085 Page 13
General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, any district att orney or agent of any federal law
enforcement agency shall be kept confidential by such person and not
be disclosed except when presented to a court in a prosecution for
violation of the tax laws of this state or except as specifically
authorized by law, a nd a violation by the Oklahoma State Bureau of
Investigation, Attorney General, Oklahoma State Bureau o f Narcotics
and Dangerous Drugs Control, district attorney or agent of any
federal law enforcement agency by otherwise releasing the
information shall be a felony;
6. The use by any division of th e Tax Commission of any
information or evidence in the poss ession of or contained in any
report or return filed with any other divisi on of the Tax
Commission;
7. The furnishing, at the discretion of the Tax Comm ission, of
any information disclosed by its records or files to any official
person or body of this sta te, any other state, the United States or
foreign country who is concerne d with the administration or
assessment of any similar tax in this state, any ot her state or the
United States. The provisi ons of this paragraph shall include the
furnishing of information by the Tax Commission to a county assessor
to determine the amount of gross household income pursuant to the
provisions of Section 8C of Article X of the Oklahoma Constitution
or Section 2890 of this title. The Tax Commission shall promulgate
rules to give guidance to the county assessors regarding the type of
information which may be used by the county assessors in determining
the amount of gross household income pursuant to Section 8C of
Article X of the Oklahoma Constitution or Section 2890 of th is
title. The provisions of this paragraph shall also include the
furnishing of information to the State Treasurer for the purpose of
administration of the Uniform Unclaimed Property Act;
8. The furnishing of information to other state agencies for
the limited purpose of aiding in the collection of debts owed by
individuals to such requesting agencies;
9. The furnishing of information requested by any m ember of the
general public and stated in th e sworn lists or schedules of taxable
property of public se rvice corporations organized, existing, or
doing business in this state w hich are submitted to and certified by
the State Board of Equalization pursuant to the provisions of
Section 2858 of this ti tle and Section 21 of Article X of the
Oklahoma Constitutio n, provided such information would be a public ENR. H. B. NO. 4085 Page 14
record if filed pursuant t o Sections 2838 and 2839 of this title on
behalf of a corporation other than a p ublic service corporation;
10. The furnishing of information requested by any member of
the general public and stated in the findings of the Tax Commission
as to the adjustment and equalization of the valuation of real and
personal property of the countie s of the state, which are submitted
to and certified by the State Board of Equalization pursuant to the
provisions of Section 2865 of this title and Section 21 of Article X
of the Oklahoma Constitution;
11. The furnishing of information as to the issuance or
revocation of any tax permit, license or exemption by the Tax
Commission as provided for by law. S uch information shall be
limited to the name of the person issued the permit, license or
exemption, the name of the business entity authorized to engage in
business pursuant to the permit, license or exemption, the address
of the business entity and the grounds for revocation;
12. The posting of notice of revocation of any tax permit or
license upon the premises of the place of business of any business
entity which has had any tax permit or license revoked by the Tax
Commission as provided for by law. Suc h notice shall be limited to
the name of the person issued the permit or license, the na me of the
business entity authorized to engage in business pursua nt to the
permit or license, the address of the business entity and the
grounds for revocation;
13. The furnishing of information upon written request by any
member of the general public as to the outstanding and unpaid amount
due and owing by any taxpaye r of this state for any delinquent tax,
together with penalty and interest, for which a tax warrant or a
certificate of indebtedness has been filed pursuant to law;
14. After the filing of a tax warrant pursuant to law, the
furnishing of information upon written request by any member of the
general public as to any agreement entered into by the Tax
Commission concerning a compromise of tax liability for an amount
less than the amount of tax liability stated on such warrant;
15. The disclosure of informati on necessary to complete the
performance of any contract authorized by this title to any person
with whom the Tax Commission has contracted;
ENR. H. B. NO. 4085 Page 15
16. The disclosure of information to any person for a purpose
as authorized by the taxpayer pursuant to a waiver o f
confidentiality. The waiver shall be in w riting and shall be made
upon such form as the Tax Commissi on may prescribe;
17. The disclosure of information required in order to c omply
with the provisions of Section 2369 of this title;
18. The disclosure to an employer, as defined in Sections
2385.1 and 2385.3 of this title, of information required in order to
collect the tax imposed by Section 2385.2 of this title;
19. The disclosure to a plaintiff of a corporation's last -known
address shown on the record s of the Franchise Tax Division of the
Tax Commission in order for such plaintiff to comply with the
requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
20. The disclosure of information directly involved in the
resolution of the protest by a taxpayer to an assessment of tax or
additional tax or the resolution of a claim for refund filed by a
taxpayer, including the disclosure of the pendency of an
administrative proceeding involving such protest or claim, to a
person called by the Tax Commi ssion as an expert witness or as a
witness whose area of knowledge or expertise specifically addresses
the issue addressed in the protest or claim for refund. Such
disclosure to a witness shall be limited to information pertaining
to the specific knowledg e of that witness as to the transaction or
relationship between taxpayer and witness;
21. The disclosure of information necessary to implement an
agreement authorized by Section 2702 of this title when such
information is directly involved in the resoluti on of issues arising
out of the enforcement of a municipal sales tax ordinance. Such
disclosure shall be to the governing body or to the municipal
attorney, if so designated by the governing body;
22. The furnishing of information regarding incentive pay ments
made pursuant to the provisions of Sec tions 3601 through 3609 of
this title, or incentive payments made pursuant to the provisions of
Sections 3501 through 3508 of this title, or tax credits claimed
pursuant to the provisions of S ections 1 through 8 of this act;
23. The furnishing to a pr ospective purchaser of any business,
or his or her authorized representative, of information relating to
any liabilities, delinquencies, as sessments or warrants of the ENR. H. B. NO. 4085 Page 16
prospective seller of the business which have not been filed of
record, established or become final and which relate solely to the
seller's business. Any disclosure under this paragraph shall only
be allowed upon the presentm ent by the prospective buyer, or the
buyer's authorized represe ntative, of the purchase contract and a
written authorization between the parties;
24. The furnishing of information as to the amount of state
revenue affected by the issuance or granting of any tax permit,
license, exemption, deduction, credit or oth er tax preference by the
Tax Commission as provided for by law. Such information shall be
limited to the type of permit, license, exemption, deduction, credit
or other tax preference issued o r granted, the date and duration of
such permit, license, exempt ion, deduction, credit or other tax
preference and the amou nt of such revenue. The provisions of this
paragraph shall not authorize the disclosure of the name of the
person issued such permit , license, exemption, deduction, credit or
other tax preference, or the name of the business entity authorized
to engage in business pursuant to the permit, license, exemption ,
deduction, credit or other tax preference;
25. The examination of records and files of a person or entity
by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control pursuant to a court order by a magistrate in whose
territorial jurisdiction t he person or entity resides, or wh ere the
Tax Commission records and files a re physically located. Such an
order may only be issued upon a s worn application by an agent of the
Oklahoma State Bureau of Na rcotics and Dangerous Drugs Control,
certifying that the person or entity whose records and files are to
be examined is the targ et of an ongoing investigation of a felony
violation of the Unifo rm Controlled Dangerous Substances Act and
that information res ulting from such an examination would likely be
relevant to that investigation. Any r ecords or information obtained
pursuant to such an order may only be used by the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control in the investigation
and prosecution of a felony violation of the Uniform Cont rolled
Dangerous Substances Act. Any such order issued pursuant to this
paragraph, along with the underlying application, shall be sealed
and not disclosed to the person or entity whose records were
examined, for a period of ninety (90) days. The issuing magistrate
may grant extensions o f such period upon a showing of good cause in
furtherance of the investigation. Upon the expiration of nin ety
(90) days and any extensions granted by the magistrate, a c opy of
the application and order shall be served upo n the person or entity ENR. H. B. NO. 4085 Page 17
whose records were examined, along with a copy of the records or
information actually provided by the Tax Commission;
26. The disclosure of information, as prescribed by this
paragraph, which is related to the proposed or actual usa ge of tax
credits pursuant to Sect ion 2357.7 of this title, the Small B usiness
Capital Formation Incentive Act or the Rural Venture Capit al
Formation Incentive Act. Unless the context clearly requires
otherwise, the terms used in this paragraph shall have the same
meaning as defined by Se ction 2357.7, 2357.61 or 2357.72 of t his
title. The disclosure of information authorized by this parag raph
shall include:
a. the legal name of any qualified venture capi tal
company, qualified small business capital compan y or
qualified rural small business capital company,
b. the identity or legal name of any person or entity
that is a shareholder or partner of a qualified
venture capital company, qualified small business
capital company or qualified rural small business
capital company,
c. the identity or legal name of any Oklahoma busi ness
venture, Oklahoma small business venture or Oklahoma
rural small business venture in which a qualified
investment has been made by a capital company, or
d. the amount of funds invested in a qualified venture
capital company, the amount of qualified investments
in a qualified small business capital company or
qualified rural small business capital company and the
amount of investments ma de by a qualified venture
capital company, qualified small business capital
company, or qualified rural small busine ss capital
company;
27. The disclosure of specific information as required by
Section 46 of Title 62 of the Oklahoma Statutes;
28. The disclosure of specific information as required by
Section 205.5 of this title;
29. The disclosure of specific information as required by
Section 205.6 of this title; ENR. H. B. NO. 4085 Page 18
30. The disclosure of information to the State Treasurer
necessary to implement Section 236 8.27 of this title;
31. The disclosure of specific information to the Oklahoma
Health Care Authority for purposes of determining eligibili ty for
current or potential recipients of assistance from the Oklahoma
Medicaid Program; or
32. The disclosure of in formation to the Oklahoma Department of
Veterans Affairs including but not limited to the name and basis for
eligibility of each individual who qualifies for the sales tax
exemption authorized in paragraph 34 of Section 1357 of this title .
D. The Tax Commission shall cause to be prepared and made
available for public inspection in the office of the Tax Commission
in such manner as it may det ermine an annual list containing the
name and post office address of each person, whether individual,
corporate or otherwise, making and filing an income tax return with
the Tax Commission.
It is specifically provided that no liability whatsoever, civil
or criminal, shall attach to any member of the Tax Commission or any
employee thereof for any error or omission of any name or address in
the preparation and publication o f the list.
E. The Tax Commission shall prepare or cause to be prepared a
report on all provisions of state tax law that reduce state revenue
through exclusions, deductions, credits, exemptions, deferral s or
other preferential tax treatments. The report shall be prepared not
later than October 1 of each even -numbered year and shall be
submitted to the Governor, the President Pro Tempore of the Senate
and the Speaker of the House of Representatives. The Tax Commission
may prepare and submit supplements t o the report at other times of
the year if additional or updated information relevant to the report
becomes available. The report shall include, for the previou s
fiscal year, the Tax Commission's best est imate of the amount of
state revenue that would hav e been collected but for the existence
of each such exclusion, deduction, credit, exempt ion, deferral or
other preferential tax treatment allowed by law. The Ta x Commission
may request the assistance of o ther state agencies as may be needed
to prepare the report. The Tax Commission is authorized to require
any recipient of a tax incentive o r tax expenditure to report to the
Tax Commission such information as req uested so that the Tax
Commission may fulfil l its obligations as required by this ENR. H. B. NO. 4085 Page 19
subsection. The Tax Commission may require this information to be
submitted in an electronic format. The Tax Commission may disallow
any claim of a person for a tax incenti ve due to its failure to file
a report as required under the authority of this subsection.
F. It is further provided that the provisions of this section
shall be strictly interpreted and shall not be construed as
permitting the disclosure of any other inf ormation contained in the
records and files of the Tax Commission relating to income tax or to
any other taxes.
G. Unless otherwise provided for in this section, any violation
of the provisions of this section shall constitute a misdemeanor and
shall be punishable by the imposition of a fine not ex ceeding One
Thousand Dollars ($1,000.00) or by im prisonment in the county jail
for a term not exceeding one (1) year, or by both such fine and
imprisonment, and the offender shall be removed or dismissed from
office.
H. Offenses described in Section 2376 of this title shall be
reported to the appropria te district attorney of this state by the
Tax Commission as soon as the offenses are discov ered by the Tax
Commission or its agents or employees. The Tax Commissio n shall
make available to the appropriate di strict attorney or to the
authorized agent of th e district attorney its records and files
pertinent to prosecutions, and such records and f iles shall be fully
admissible as evidence for the purpose of such prosec utions.
SECTION 10. This act shall become e ffective November 1, 2022. ENR. H. B. NO. 4085 Page 20
Passed the House of Representatives the 20th day of May, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the 20th day of May, 2022.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of th e Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _____ __ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _____ __ M.
By: _________________________________