OK
Oklahoma House Bill HB4354

Oklahoma 2022 Regular Session

Oklahoma House Bill HB4354 Compare Versions

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1-An Act
2-ENROLLED HOUSE
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28+ENGROSSED SENATE AMENDMENTS
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331 BILL NO. 4354 By: Hill, Phillips, and Dollens
432 of the House
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634 and
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836 Kidd of the Senate
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13-An Act relating to economic development; enacting the
14-Oklahoma Research and Deve lopment Attraction Act;
15-imposing duty on Oklahoma Center for the Ad vancement
16-of Science and Technology; requiring development of
17-Research and Development Attraction Program;
18-authorizing award of matching funds; specifying
19-amount of match; imposing d ollar limit; specifying
20-conditions required for eligibility; imposing
21-requirement related to eligible projects; specifying
22-factors in selection; requiring Oklahoma Center for
23-the Advancement of Science and Technology to adopt
24-rules; specifying required con tent for rules;
25-providing for codification; and providing an
26-effective date.
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42+[ economic development - Oklahoma Research and
43+Development Attraction Act - Oklahoma Center for
44+the Advancement of Science and Technology -
45+effective date ]
2746
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29-SUBJECT: Economic development
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50+AMENDMENT NO. 1. Page 2, line 12, after the “C.” and before the
51+word “OCAST” delete the words “Contingent upon the
52+availability of funds,”
53+
54+and when the title is restored, amend the title to
55+conform
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57+AMENDMENT NO. 2. Page 1, restore the title
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62+ENGR. S. A. TO ENGR. H. B. NO. 4354 Page 2 1
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87+Passed the Senate the 27th day of April, 2022.
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91+ Presiding Officer of the Senate
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94+Passed the House of Representatives the ____ day of __________,
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99+ Presiding Officer of the House
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102+ENGR. H. B. NO. 4354 Page 1 1
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127+ENGROSSED HOUSE
128+BILL NO. 4354 By: Hill, Phillips, and Dollens
129+of the House
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131+ and
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133+ Kidd of the Senate
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139+[ economic development - Oklahoma Research and
140+Development Attraction Act - Oklahoma Center for
141+the Advancement of Science and Technology -
142+effective date ]
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30146
31147 BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOMA:
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33148 SECTION 1. NEW LAW A new section of law to be codified
34149 in the Oklahoma Statutes as Section 5003.10f of Title 74, unless
35150 there is created a duplication in numberin g, reads as follows:
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37151 This act shall be known and may be cited as the "Oklahoma
38152 Research and Development Attraction Act".
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40153 SECTION 2. NEW LAW A new section of law to be codified
41154 in the Oklahoma Statutes as Section 5003.10g of Title 74, unless
42155 there is created a duplication in numbering, reads as follows:
156+A. The Oklahoma Center for the Advancement o f Science and
157+Technology ("OCAST") shall create a Research and Development
158+Attraction Program ("Program"), to be administered in ac cordance
43159
44-A. The Oklahoma Center for the Advancement o f Science and
45-Technology (OCAST) shall create a Research and Development
46-Attraction Program (Program), to be administered in accordance with ENR. H. B. NO. 4354 Page 2
47-this section for the purpose of fostering research and development
48-in key industry clusters, leading to the creation of new products
49-and services that are brought to market by Oklahoma-based companies,
50-or brought to market by relocating companies financially sponsored
51-by an Oklahoma-based capital provider and which conduct a
160+ENGR. H. B. NO. 4354 Page 2 1
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185+with this section for the purpose of fostering research and
186+development in key industry cl usters, leading to the creation of new
187+products and services that are brought to market by Oklahoma-based
188+companies, or brought to market by relocating companies financially
189+sponsored by an Oklahom a-based capital provider and which conduct a
52190 substantial portion of total business activity in the State of
53191 Oklahoma.
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55192 B. OCAST may award matching funds to eligible businesses to
56193 offset a portion of expenses incurred through a collaborative
57194 research and development project engagement with an Oklahoma
58195 institution of highe r education or nonprofit research institution.
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60-C. OCAST may award matching funds up to fifty percent (50%) of
61-the cost of the project, not to exceed One Hundred Thousand Dollars
62-($100,000.00). A business may receive only one matching award under
63-this section per year.
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196+C. Contingent upon the av ailability of funds, OCAST may award
197+matching funds up to fifty percent (50%) of the cost of the project,
198+not to exceed One Hundred Thousand Dollars ($100,000.00). A
199+business may receive only one matching award under this section per
200+year.
65201 D. In order to be eligible for matching funds under this
66202 section, a business must satisfy all of th e following conditions:
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68203 1. The business must be an Oklahoma-based small business. For
69204 the purposes of this section, "Oklahoma-based" means a business that
70205 has its principal place of business in this state or a business that
71206 has, in the preceding twelve ( 12) months, raised an equity round not
72207 less than Five Hundred Thousand Dollars ($500,000.00) with an
73208 Oklahoma-based capital provider investing n ot less than ten percent
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74235 (10%) of such equity round, that commits to spend all eligible
75236 Program funds in the Sta te of Oklahoma, and that has filed a
76237 certificate of qualification with the Oklahoma Secretary of State.
77238 For the purposes of this section, "small business" means a business
78239 entity that employs not more than one hundred (100) persons;
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80240 2. In accordance with the Oklahoma Office of Science and
81241 Innovation's 2021-2026 strategic plan, the business must operate in
82242 one of the state's three strategic industry cluster s, including
83243 aerospace and autonomous systems, life sciences, and energy
84244 diversification;
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86245 3. The research and development service provider which partners
87246 with the business must be an Oklahoma-based research entity. For
88247 the purposes of this section, "Oklahoma-based research entity" means
89248 an institution of higher education or another nonprofit organization
90249 that primarily provides research services, and which has its main
91-physical campus in this state. For the purposes of this section, ENR. H. B. NO. 4354 Page 3
250+physical campus in this state. For the purposes of this section,
92251 "research services" means research and development, technology
93252 exploration, technical development, product development, an d
94253 commercialization intended to foster innovation in eligible small
95254 businesses;
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97255 4. The research and development project for which matching
98256 funds are provided must be conducted physical ly within the State of
99-Oklahoma for the duration of the engagement wit h the Oklahoma-based
257+Oklahoma, for the duration of the engagement wit h the Oklahoma-based
100258 research entity; and
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102285 5. To be awarded matching funds under the Program , an Oklahoma-
103286 based small business must file an applicatio n with OCAST attesting
104287 to the total cost of the project and demonstrating available and
105288 unrestricted private capital to meet at least fifty percent (50%) of
106289 the total project cost. Matching funds may be used only to purchase
107290 research services, as defined in this section, from an Oklahoma -
108291 based research entity.
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110292 E. When administering the Program under this section, OCAST
111293 shall select eligible projects to qualify for matching funds within
112294 the Oklahoma Research and Development Attraction Act based on
113295 factors including, but not limited to:
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115296 1. The amount of private capital the matching funds will induce
116297 to be spent in Oklahoma;
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118298 2. The total market size of the Oklahoma -based small
119299 businesses' product or service offering;
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121300 3. Third-party validation of the Oklahoma -based small
122301 businesses' intellectual assets, including but not limited to equity
123302 raised from venture capital or private equity firms, federal
124303 commercialization grants t hrough the Small Business Innovation
125304 Research or Small Business Technology Trans fer Programs, or
126305 competitive federal research aw ards through National Institutes of
127306 Health, National Science Foundation, Department of Defense,
128307 Department of Energy, and others;
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130334 4. The projected future job creation impact of the Oklahoma-
131335 based small business for the state;
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133336 5. Other economic benefits t o the state, including through
134337 increased state and local revenues and growth in private investment;
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136338 6. The need of the Oklahoma-based small business to acquire
137339 specialized services and resources in Oklahoma;
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139340 7. The alignment of the project within Oklahom a's identified
140341 cluster strategies; and
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142342 8. The impact on Oklahoma-based research entities, including
143343 through increased revenue, exposure to new technologies, and
144344 increased attraction opportunities for students, researchers, and
145345 professional staff.
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147346 SECTION 3. NEW LAW A new section of law to be codified
148347 in the Oklahoma Statutes as Section 5003.10h of Title 74, unless
149348 there is created a duplication in numbering, reads as follows:
150-
151349 OCAST shall promulgate rules to enforce the provisions of the
152350 Research and Development Attraction Program, including the
153351 following:
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155352 1. The application process for applying for matching funds;
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157353 2. The criteria to be used by OCAST to evaluate matching funds
158354 applications from Oklahoma -based small businesses and to determine
159355 the amount of the award;
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161356 3. OCAST shall include in its annual report the evaluation
162357 metrics which will be gathered to report efficacy of this Program
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163384 back to the State of Ok lahoma, which may include, but will not be
164385 limited to, volume of applications, technological dive rsity of
165386 companies taking up the Program, the success of Oklahoma-based small
166387 businesses at raising follow-on capital rounds or advancing in
167388 technological readiness level (TRL), and follow-on capital spent in
168389 the state and at Oklahoma -based research entities; and
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170390 4. The agreements that Oklahoma-based small businesses must
171391 enter into in regard to claiming matching funds and to ensur e
172392 compliance in spending of matching funds.
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174393 SECTION 4. This act shall become effective November 1, 2022.
175- ENR. H. B. NO. 4354 Page 5
176-Passed the House of Representat ives the 18th day of May, 2022.
394+Passed the House of Representatives the 15th day of March, 2022.
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181399 Presiding Officer of the House
182400 of Representatives
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185-Passed the Senate the 27th day of April, 2022.
403+Passed the Senate the ___ day of __________, 2022.
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190408 Presiding Officer of the Senate
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194-OFFICE OF THE GOVERNOR
195-Received by the Office of the Governor this _________ ___________
196-day of ___________________, 20_______, at _______ o'clock _______ M.
197-By: _________________________________
198-Approved by the Governor of the State of Oklahoma this _____ ____
199-day of ___________________, 20_______, at _______ o'clock _______ M.
200-
201-
202- _________________________________
203- Governor of the State of Oklahoma
204-
205-OFFICE OF THE SECRETARY OF STATE
206-Received by the Office of the Secretary of State this __________
207-day of ___________________, 20_______, at _______ o'clock _______ M.
208-By: _________________________________
209-