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ENGROSSED SENATE AMENDMENTS
TO
ENGROSSED HOUSE
BILL NO. 4354 By: Hill, Phillips, and Dollens
of the House
and
Kidd of the Senate
[ economic development - Oklahoma Research and
Development Attraction Act - Oklahoma Center for
the Advancement of Science and Technology -
effective date ]
AMENDMENT NO. 1. Page 2, line 12, after the “C.” and before the
word “OCAST” delete the words “Contingent upon the
availability of funds,”
and when the title is restored, amend the title to
conform
AMENDMENT NO. 2. Page 1, restore the title
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Passed the Senate the 27th day of April, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2022.
Presiding Officer of the House
of Representatives
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ENGROSSED HOUSE
BILL NO. 4354 By: Hill, Phillips, and Dollens
of the House
and
Kidd of the Senate
[ economic development - Oklahoma Research and
Development Attraction Act - Oklahoma Center for
the Advancement of Science and Technology -
effective date ]
BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5003.10f of Title 74, unless
there is created a duplication in numberin g, reads as follows:
This act shall be known and may be cited as the "Oklahoma
Research and Development Attraction Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5003.10g of Title 74, unless
there is created a duplication in numbering, reads as follows:
A. The Oklahoma Center for the Advancement o f Science and
Technology ("OCAST") shall create a Research and Development
Attraction Program ("Program"), to be administered in ac cordance
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with this section for the purpose of fostering research and
development in key industry cl usters, leading to the creation of new
products and services that are brought to market by Oklahoma-based
companies, or brought to market by relocating companies financially
sponsored by an Oklahom a-based capital provider and which conduct a
substantial portion of total business activity in the State of
Oklahoma.
B. OCAST may award matching funds to eligible businesses to
offset a portion of expenses incurred through a collaborative
research and development project engagement with an Oklahoma
institution of highe r education or nonprofit research institution.
C. Contingent upon the av ailability of funds, OCAST may award
matching funds up to fifty percent (50%) of the cost of the project,
not to exceed One Hundred Thousand Dollars ($100,000.00). A
business may receive only one matching award under this section per
year.
D. In order to be eligible for matching funds under this
section, a business must satisfy all of th e following conditions:
1. The business must be an Oklahoma-based small business. For
the purposes of this section, "Oklahoma-based" means a business that
has its principal place of business in this state or a business that
has, in the preceding twelve ( 12) months, raised an equity round not
less than Five Hundred Thousand Dollars ($500,000.00) with an
Oklahoma-based capital provider investing n ot less than ten percent
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(10%) of such equity round, that commits to spend all eligible
Program funds in the Sta te of Oklahoma, and that has filed a
certificate of qualification with the Oklahoma Secretary of State.
For the purposes of this section, "small business" means a business
entity that employs not more than one hundred (100) persons;
2. In accordance with the Oklahoma Office of Science and
Innovation's 2021-2026 strategic plan, the business must operate in
one of the state's three strategic industry cluster s, including
aerospace and autonomous systems, life sciences, and energy
diversification;
3. The research and development service provider which partners
with the business must be an Oklahoma-based research entity. For
the purposes of this section, "Oklahoma-based research entity" means
an institution of higher education or another nonprofit organization
that primarily provides research services, and which has its main
physical campus in this state. For the purposes of this section,
"research services" means research and development, technology
exploration, technical development, product development, an d
commercialization intended to foster innovation in eligible small
businesses;
4. The research and development project for which matching
funds are provided must be conducted physical ly within the State of
Oklahoma, for the duration of the engagement wit h the Oklahoma-based
research entity; and
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5. To be awarded matching funds under the Program , an Oklahoma-
based small business must file an applicatio n with OCAST attesting
to the total cost of the project and demonstrating available and
unrestricted private capital to meet at least fifty percent (50%) of
the total project cost. Matching funds may be used only to purchase
research services, as defined in this section, from an Oklahoma -
based research entity.
E. When administering the Program under this section, OCAST
shall select eligible projects to qualify for matching funds within
the Oklahoma Research and Development Attraction Act based on
factors including, but not limited to:
1. The amount of private capital the matching funds will induce
to be spent in Oklahoma;
2. The total market size of the Oklahoma -based small
businesses' product or service offering;
3. Third-party validation of the Oklahoma -based small
businesses' intellectual assets, including but not limited to equity
raised from venture capital or private equity firms, federal
commercialization grants t hrough the Small Business Innovation
Research or Small Business Technology Trans fer Programs, or
competitive federal research aw ards through National Institutes of
Health, National Science Foundation, Department of Defense,
Department of Energy, and others;
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4. The projected future job creation impact of the Oklahoma-
based small business for the state;
5. Other economic benefits t o the state, including through
increased state and local revenues and growth in private investment;
6. The need of the Oklahoma-based small business to acquire
specialized services and resources in Oklahoma;
7. The alignment of the project within Oklahom a's identified
cluster strategies; and
8. The impact on Oklahoma-based research entities, including
through increased revenue, exposure to new technologies, and
increased attraction opportunities for students, researchers, and
professional staff.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5003.10h of Title 74, unless
there is created a duplication in numbering, reads as follows:
OCAST shall promulgate rules to enforce the provisions of the
Research and Development Attraction Program, including the
following:
1. The application process for applying for matching funds;
2. The criteria to be used by OCAST to evaluate matching funds
applications from Oklahoma -based small businesses and to determine
the amount of the award;
3. OCAST shall include in its annual report the evaluation
metrics which will be gathered to report efficacy of this Program
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back to the State of Ok lahoma, which may include, but will not be
limited to, volume of applications, technological dive rsity of
companies taking up the Program, the success of Oklahoma-based small
businesses at raising follow-on capital rounds or advancing in
technological readiness level (TRL), and follow-on capital spent in
the state and at Oklahoma -based research entities; and
4. The agreements that Oklahoma-based small businesses must
enter into in regard to claiming matching funds and to ensur e
compliance in spending of matching funds.
SECTION 4. This act shall become effective November 1, 2022.
Passed the House of Representatives the 15th day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senate