Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1768 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 1 1
	3	+	SB1768 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE AMENDME NT
29		-	TO
30		-	ENGROSSED SENATE BILL NO . 1768 By: Howard and Jech of the
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 58th Legislature (2022)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR ENGROSSED
	37	+	SENATE BILL NO. 1768 By: Howard and Jech of the
31	38		Senate
32	39
33	40		and
34	41
35	42		Wallace of the House
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	49	+	COMMITTEE SUBSTITUTE
	50	+
42	51		[ revenue and taxation - Oklahoma Rural Jobs Act -
43		-	tax credit - sunset date - codification - effective
44		-	date ]
45		-
46		-
47		-
48		-	AMENDMENT NO. 1. Strike the stricken title, enacting clause, and
49		-	entire bill and insert:
50		-
51		-
52		-
53		-
54		-	"[ revenue and taxation - Oklahoma Rural Jobs Act -
55	52		tax credit - sunset date – tax information -
56	53		confidentiality - codification - effective date ]
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61	58		BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOMA:
62	59		SECTION 1. NEW LAW A new sect ion of law to be codifi ed
63	60		in the Oklahoma Statutes as Section 3930 of Title 68, unless there
64	61		is created a duplicat ion in numbering, reads as follows:
65	62		This act shall be known a nd may be cited as the "Oklahoma Rural
66	63		Jobs Act".
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68		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 2 1
	65	+	SB1768 HFLR Page 2
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93	91		SECTION 2. NEW LAW A new secti on of law to be codified
94	92		in the Oklahoma Statute s as Section 3931 of Title 68, unless there
95	93		is created a duplication in numberin g, reads as follows:
96	94		As used in this act:
97	95		1. "Affiliate" means an entity that directly, or indirectly
98	96		through one or more inter mediaries, controls, or is controlled by,
99	97		or is under the common control with another entity. An entity is
100	98		controlled by anothe r entity if the controll ing entity holds,
101	99		directly or indirectly , the majority of voting or ownershi p interest
102	100		in the controlled entity or has control over day-to-day operations
103	101		of the controlled entity by contract or by law;
104	102		2. "Applicable percentage " means zero percent (0%) for the
105	103		first two credit allowance dates, and fifteen percent (15%) for the
106	104		next four credit allowance dates;
107	105		3. "Capital investment" means any equity investment in a rural
108	106		fund by a rural investor which:
109	107		a. is acquired after the eff ective date of this act at
110	108		its original issuance solely in exchange for cash,
111	109		b. has one hundred percent (100%) of its cash purc hase
112	110		price used by the rural fund to make qualified
113	111		investments in eligible businesses located in this
114	112		state by the third anniv ersary of the initial credit
115	113		allowance date, and
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117		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 3 1
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142	141		c. is designated by the rural fund as a capital
143	142		investment under this act and is certified by the
144	143		Department under the provisions of Section 3 of this
145	144		act. This shall include any capital investment that
146	145		does not meet the provisions of paragraph 1 of
147	146		subsection A of Section 3 of this act, if such
148	147		investment was a capital investment in the hands of a
149	148		prior holder;
150	149		4. "Credit allowance date" means the date on which the
151	150		Department certifies a rural fund's capital investment and each of
152	151		the five anniversary dates of such date thereafter;
153	152		5. "Department" means the Oklahoma Department of Commerce;
154	153		6. "Eligible business" means a business that, at the time of
155	154		the initial qualifie d investment in the business:
156	155		a. has fewer than two hundred fifty employees, and
157	156		b. has its principal business oper ations in the state.
158	157		Any business which is classif ied as an eligible business at the
159	158		time of the initial investment in such business by a rural fund
160	159		shall remain classified as an eligible business and may receive
161	160		follow-on investments from any rural fund, and such follow-on
162	161		investments shall be qualified investments even though such business
163	162		may not meet the definition of an eligible business at the time of
164	163		such follow-on investment;
165	164
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	165	+	SB1768 HFLR Page 4
	166	+	BOLD FACE denotes Committee Amendments. 1
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191	191		7. "Principal business operations" means the location where at
192	192		least sixty percent (60%) of a business's employees work or where
193	193		employees who are paid at least sixty percent (60%) of such
194	194		business's payroll work. A business that has agreed to relocate
195	195		employees using the proceeds of a qualified investment to establish
196	196		its principal business operations in a new location shall be deemed
197	197		to have its principal business operations in such new location if it
198	198		satisfied the requirements of this paragraph no later than one
199	199		hundred eighty (180) days after receiving a qualified investment;
200	200		8. "Purchase price" means the amount paid to t he rural fund
201	201		that issues a capital investment which shall not exceed the amount
202	202		of capital investment authority certified under the provisions of
203	203		Section 3 of this act;
204	204		9. "Qualified investment" means any investment in an eligible
205	205		business or any loan to an eligible business with a stated maturity
206	206		date of at least one (1) year after the date of issuance, excluding
207	207		revolving lines of credit and senior -secured debt unless the chief
208	208		executive or similar officer of the eligible business certifies that
209	209		the eligible business sought and was denied similar financing from a
210	210		depository instituti on, by a rural fund; provided that, with respect
211	211		to any one eligible business, the maximum amount of investments made
212	212		in such business by on e or more rural funds, on a collective basis
213	213		with all of the businesses' affiliates, with the proceeds of the
214	214		capital investments, shall be the greater of twenty percent (20%) of
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216		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 5 1
	216	+	SB1768 HFLR Page 5
	217	+	BOLD FACE denotes Committee Amendments. 1
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241	242		the rural fund's capital investment authority or Six Million Five
242	243		Hundred Thousand Dollars ($6,500,000.00), exclusive of investments
243	244		made with repaid or redeemed investments or interest or profits
244	245		realized thereon;
245	246		10. "Rural area" means any county of this state that has a
246	247		population of less than seventy-five thousand (75,000) or an y city
247	248		or town of this state tha t has a population not to exceed seven
248	249		thousand (7,000) accordi ng to the 2020 Federal Decennial Census of
249	250		the United States;
250	251		11. "Rural fund" means an entity certified by the Department
251	252		under the provisions of Section 3 of this act;
252	253		12. "Rural investor" means an entity that makes a capital
253	254		investment in a rural fund;
254	255		13. "Senior-secured debt" means any loan that is secured by a
255	256		first mortgage on real estate with a loan-to-value ratio of less
256	257		than eighty percent (80%); and
257		-	14. "State tax liability" means the tax imposed under Section
258		-	2355, 2355.1P-4, or 2370 of Title 68 of the Oklahoma Statutes or
259		-	Section 624 or 628 of Title 36 of the Oklahoma Statutes.
	258	+	14. "State tax liability" means any liability incurred by any
	259	+	entity subject to the state income tax imposed under Title 68 of the
	260	+	Oklahoma Statutes or an insurance company paying an annual tax on
	261	+	its gross premium receipts including retaliatory tax or under
	262	+	provisions of Title 68 or Title 19 of the Oklahoma Statutes.
260	263		SECTION 3. NEW LAW A new section of law to be codified
261	264		in the Oklahoma Statutes as Sec tion 3932 of Title 68, unless there
262	265		is created a duplica tion in numbering, rea ds as follows:
263		-	A. A rural fund that seeks to have an equity investment
264		-	certified as a capital investment eligible for credits a uthorized
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266		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 6 1
	267	+	SB1768 HFLR Page 6
	268	+	BOLD FACE denotes Committee Amendments. 1
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	293	+	A. A rural fund that seeks to have an equity investment
	294	+	certified as a capital investment eligible for credits a uthorized
291	295		under the provisions of this act shall apply to the D epartment. The
292	296		Department shall begin accepting applications within ninety (90)
293	297		days of the effective date of this act. The application shall
294	298		include:
295	299		1. The amount of capital investment requested;
296	300		2. A copy of the applicant's or an affiliate of the applicant's
297	301		licenses as a rural business investment company under 7 U.S.C.,
298	302		Section 2009cc or as a small business investment company under 15
299	303		U.S.C., Section 681, and a certificate executed by an executive
300	304		officer of the applicant attesting t hat such license remains in
301	305		effect and has not been revoked;
302	306		3. Evidence that, as of the date the application is submitted,
303	307		the applicant or affiliates of the applicant have invested at least
304	308		One Hundred Million Dollars ($100,000,000.00) in nonpublic companies
305	309		located in counties within the United States with a p opulation of
306	310		less than seventy-five thousand (75,000) according to the 2010
307	311		Federal Decennial Census of the United States;
308	312		4. A business plan that includes a rev enue-impact assessment
309	313		projecting state and local tax rev enue to be generated by the
310	314		applicant's proposed qualified investments, prepared by a nationally
311	315		recognized, third-party, independent economic forecasting firm using
312	316		a dynamic economic forecasting model that analyzes the applicant's
313		-	business plan over the ten (10) years following the date the
314		-	application is submitted to t he Department. Such plan shall include
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316		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 7 1
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	344	+	business plan over the ten (10) years following the date the
	345	+	application is submitted to t he Department. Such plan shall include
341	346		an estimate of the number of jobs create d and jobs retained in this
342	347		state as a result of the applica nt's qualified investments; and
343	348		5. A nonrefundable application fee of Five Thousand Dollars
344	349		($5,000.00) payable to the Department.
345	350		B. Within thirty (30) days after the receipt of a completed
346	351		application, the Departme nt shall grant or deny the application in
347	352		full or in part. The Department shall deny the application if:
348	353		1. The applicant does not satisfy all the c riteria provided
349	354		under subsection A of this section;
350	355		2. The revenue-impact assessment submitted with the application
351	356		does not demonstrate that the ap plicant's business plan will result
352	357		in a positive fiscal impact on the state ove r a ten-year period that
353	358		exceeds the cumulative amount of tax credits that would be issued to
354	359		the applicant if the application was approved; or
355	360		3. The Department has already approved the maximum amount of
356	361		capital investment authority under Section 4 of this act.
357	362		C. If the Department denies any part of the application, it
358	363		shall inform the applicant of the grounds for such denial. If the
359	364		applicant provides any additional inform ation required by the
360	365		Department or otherwi se completes its application within f ifteen
361	366		(15) days of the notice of denial, the application shall be
362	367		considered complete as of the original date of submission. If the
363		-	applicant fails to provide the in formation or fails to complete its
364		-	application within the fifteen-day period, the application shall
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	369	+	SB1768 HFLR Page 8
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	395	+	applicant fails to provide the in formation or fails to complete its
	396	+	application within the fifteen-day period, the application shall
391	397		remain denied and must be resubmitted with a new submission date and
392	398		a new application fee.
393	399		D. Upon approval of an application, the Dep artment shall
394	400		certify the proposed equity investment as a capital investment
395	401		eligible for credits under this act, subject to limitations laid out
396	402		in Section 4 of this act. The Department shall provide written
397	403		notice of the certification to the applicant which shall include the
398	404		amount of the applicant's capital investment authority. The
399	405		Department shall certify capital investments in the order that the
400	406		application is received by the Department. Applications received on
401	407		the same day shall be de emed to have been received simultaneously .
402	408		For applications that are complete and received on the same day, the
403	409		Department shall certify applications in proportionate percentages
404	410		based upon the ratio of the amount of capital investment authority
405	411		requested in all applications.
406	412		SECTION 4. NEW LAW A new section of la w to be codified
407	413		in the Oklahoma Statu tes as Section 3933 of Title 68, unless there
408	414		is created a duplication in numbering, reads as follows:
409	415		A. The Department shall certify capital inv estment authority
410	416		under the provisions of this act in amounts that woul d not authorize
411	417		more than Fifteen Million Dollars ($15,000,000.00) in state tax
412	418		credits to be claimed against state tax liability in any calendar
413		-	year, excluding any credit amounts carried forward as provided under
414		-	subsection A of Section 5 of this act. Within ninety (90) days of
415	419
416		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 9 1
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	446	+	year, excluding any credit amounts carried forward as provided under
	447	+	subsection A of Section 5 of this act. Within ninety (90) days of
441	448		the applicant receiving notice of certifi cation, the rural fund
442		-	shall issue the capital investment to and receive cash in the ~~amount~~
443		-	of the certified amount from a rural investor. At least ten ~~percent~~
444		-	(10%) of the rural investor's capital investment shall be ~~composed~~
445		-	of capital raised by the rural investor directly or ~~indirectly from~~
446		-	sources including directors, members, employees, ~~officers , and~~
447		-	affiliates of the rural investor, other than the ~~amount invested by~~
448		-	the allocatee ~~claiming~~ the tax credits in ~~exchange for such~~
449		-	allocation of tax credit s. The rural fund shall ~~provide the~~
450		-	Department with evidence of the receipt of the cash ~~investment~~
451		-	within ~~ninety~~-five (95) days of the applica nt receiving ~~notice of~~
452		-	certification.
	449	+	shall issue the capital investment to, and receive cash in the
	450	+	amount of the certified amount from a rural investor. At least ten
	451	+	percent (10%) of the rural investor's capital investment shall be
	452	+	composed of capital raised by the rural investor directly or
	453	+	indirectly from sources including directors, members, employees,
	454	+	officers, and affiliates of the rural investor, other than the
	455	+	amount invested by the allocatee cl aiming the tax credits in
	456	+	exchange for such allocation of tax credit s. The rural fund shall
	457	+	provide the Department with evidence of the receipt of the cash
	458	+	investment within nine ty-five (95) days of the applica nt receiving
	459	+	notice of certification.
453	460		B. If the rural fund does not receive the cash investment and
454	461		issue the capital investment within such time period following
455	462		receipt of the certificate notice, the certifica tion shall lapse and
456	463		the rural fund shall not issue the capital investment without
457	464		reapplying to the Department for certificati on. Lapsed
458	465		certifications shall revert to the Department and shall be reissued
459	466		pro rata to applicants whose capital investment allocations were
460	467		reduced in accordance with the application process provided under
461	468		subsection D of Section 3 of this act.
462		-	C. A rural fund, before making a qualified investment, may
463		-	request from the Department a written opinion as to whether the
464		-	business in which it proposes to invest is an eligible business.
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	496	+	C. A rural fund, before making a qualified investment, may
	497	+	request from the Department a written opinion as to whether the
	498	+	business in which it proposes to invest is an eligible business.
491	499		The Department, no later than fifteen (15) business days after the
492	500		date of receipt of such request, shall notify the rural fund of its
493	501		determination. If the Department fails to notify the rural fund of
494	502		its determination by the twentieth business day, the business in
495	503		which the rural fund proposes to invest shall be deemed an eligible
496	504		business.
497	505		SECTION 5. NEW LAW A new section of law to be codified
498	506		in the Oklahoma Statutes as Sec tion 3934 of Title 68, unless there
499	507		is created a duplication in numbering, rea ds as follows:
500	508		A. Upon making a capital investment in a rural fund, a rural
501	509		investor shall have a right to a credit against such entity's state
502	510		tax liability that may be utilized on each c redit allowance date of
503	511		such capital investment in an amount equal to the applicable
504	512		percentage for such credit allowance date multiplied by the purchase
505	513		price paid to the rural fund for the capital investment. The amount
506	514		of the credit claimed by a rural investor shall not exceed the
507	515		amount of such entity's state tax liability for the tax year for
508	516		which the credit is claimed. Any amount of credit that a rural
509	517		investor is prohibited from claiming in a tax year as a result of
510	518		this section may be carried forward for use in any of the five (5)
511	519		subsequent tax years, but shall not be carried back to prior tax
512		-	years. It is the intent of this act tha t a rural investor claiming
513		-	a credit under this act is not required to pay any additional tax
514		-	that may arise as a result of claiming such credit.
515	520
516		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 11 1
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	547	+	years. It is the intent of this act tha t a rural investor claiming
	548	+	a credit under this act is not required to pay any additional tax
	549	+	that may arise as a result of claiming such credit.
541	550		B. No credit claimed under the provisions of this act shall be
542	551		refundable or saleable on the open market. Credits earned by or
543	552		allocated to a partnership, limited liability company, or S
544	553		corporation may be allocated to the partners, members, or
545	554		shareholders of such entity for their direct use in accordance with
546	555		the provisions of any agreement among such partners, members, or
547	556		shareholders, and a rural fund shall notify the Department of the
548	557		names of the entities that are eligible to utilize transfer of a
549	558		capital investment upon such allocation, ch ange, or transfer. Such
550	559		allocation shall not be considered a sale for the purpose of this
551	560		section.
552	561		C. The Department may recapture credits from a taxpayer that
553	562		claimed a credit authoriz ed under this section if:
554	563		1. The rural fund does not invest sixty percent (60%) of its
555	564		capital investment authority in qualified investments in this state
556	565		within two (2) years of the credit allowance date, and one hundred
557	566		percent (100%) of its capital inv estment authority in qualified
558	567		investments in this state within three (3) years of the credit
559	568		allowance date; provided, that at least seventy percent (70%) of
560	569		these initial qualified investments must be made in eligible
561	570		businesses located in rural are as;
562		-	2. The rural fund fails to maintain qualified investment s equal
563		-	to ninety percent (90%) of its capital invest ment authority from the
564		-	third anniversary until the sixth anniversary of the credit
565	571
566		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 12 1
	572	+	SB1768 HFLR Page 12
	573	+	BOLD FACE denotes Committee Amendments. 1
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590	597
	598	+	2. The rural fund fails to maintain qualified investment s equal
	599	+	to ninety percent (90%) of its capital invest ment authority from the
	600	+	third anniversary until the sixth anniversary of the credit
591	601		allowance date, with seventy percent (70%) of such investments
592	602		maintained in eligible busine sses located in rural areas. For each
593	603		year the rural fund fails to maintain such investments, the
594	604		Department may recapture an amount of such year's allowed credits
595	605		equal to the percentage difference between ninety percent (90% ) of a
596	606		rural fund's capital investment authority and the actual amount of
597	607		qualified investments maintained for such year. For the purposes of
598	608		this subsection, a qualified investment is considered even if the
599	609		qualified investment was sold or repaid so long as the rural fund
600	610		reinvests an amount equal to the capital returned or recovered or
601	611		repaid by the rural fund from the original investmen t, exclusive of
602	612		any profits realized, in other qualified investments in this state
603	613		within twelve (12) months of receipt of such capital . Amounts
604	614		received periodically by a rural fund shall be treated as
605	615		continually invested in qualified investment s if the amounts are
606	616		reinvested in one or more qualified investments by the end of the
607	617		following calendar year. A rural fund shall not be required to
608	618		reinvest capital returned from qualified investments after the fifth
609	619		anniversary of the credit allowance date , and such qualified
610	620		investments shall be considered held continuously by the rural fund
611	621		through the sixth anniversary of the credit allowance date ;
612		-	3. Prior to the earlier of exiting the program in accordance
613		-	with this act or thirty (30) days after the sixt h anniversary of the
614		-	credit allowance date, the rural fund makes a distribution or
615	622
616		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 13 1
	623	+	SB1768 HFLR Page 13
	624	+	BOLD FACE denotes Committee Amendments. 1
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640	648
	649	+	3. Prior to the earlier of exiting the program in accordance
	650	+	with this act or thirty (30) days after the sixt h anniversary of the
	651	+	credit allowance date, the rural fund makes a distribution or
641	652		payment that results in the rural fund having less than one hundred
642	653		percent (100%) of its capital investment authority invested in
643	654		qualified investments in the state or held in cash or other
644	655		marketable securities; or
645	656		4. The rural fund violates the provisions of Section 6 of this
646	657		act, in which case the Department may recapture an amount equal to
647	658		the amount of the rural fund's capital investment authority found to
648	659		be in violation of such provisions.
649	660		For the purposes of meeting and maintaining the objectives
650	661		established for investment in paragraphs 1 and 2 of this subsection,
651	662		a rural fund's qualified investment s shall be multiplied by a factor
652	663		of one and one-quarter (1 1/4) in counties with less than thirty
653	664		thousand (30,000) in population and more than thirteen thousand
654	665		(13,000) in population and shall be m ultiplied by a factor of one
655	666		and one-half (1 1/2) in counties with a population of thirteen
656	667		thousand (13,000) or less.
657	668		D. Recaptured credits and related capital investment authority
658	669		shall revert to the Department and shall be reissued pro rata to
659	670		applicants whose capital investment allocations were reduced in
660	671		accordance with the application process provided under subsection D
661	672		of Section 3 of this act.
662		-	E. No recapture shall occur until the rural fund has been given
663		-	notice of noncompliance and afforded six (6) mont hs from the date of
664		-	such notice to cure the noncompl iance.
665	673
666		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 14 1
	674	+	SB1768 HFLR Page 14
	675	+	BOLD FACE denotes Committee Amendments. 1
667	676		2
668	677		3
669	678		4
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685	694		20
686	695		21
687	696		22
688	697		23
689	698		24
690	699
	700	+	E. No recapture shall occur until the rural fund has been given
	701	+	notice of noncompliance and afforded six (6) mont hs from the date of
	702	+	such notice to cure the noncompl iance.
691	703		SECTION 6. NEW LAW A new section of law to be codified
692	704		in the Oklahoma Statutes as Section 3935 of Title 68, unless there
693	705		is created a duplication in numbering, rea ds as follows:
694	706		No eligible business that receives a qualified investment under
695		-	the provisions of this act, or any affiliates of such eligible
	707	+	the provisions of this act, or any affiliates or such eligible
696	708		business, shall directly or indirectly:
697	709		1. Own or have the right to acquire an ownership interest in a
698	710		rural fund or member or affiliate of a rural fund including, but not
699	711		limited to, a holder of a capital investment issued by a rural fund;
700	712		or
701	713		2. Loan to or invest in a rural fund or any member or affiliate
702	714		of a rural fund including, but not limited to, a holde r of capital
703	715		investment issued by a rural fund, where the proceeds of such loan
704	716		or investment are directly or indirectly used to fund or refinance
705	717		the purchase of capital investments under this act.
706	718		SECTION 7. NEW LAW A new section of law to be codi fied
707	719		in the Oklahoma Statutes as Sec tion 3936 of Title 68, unless there
708	720		is created a duplication in numbering, rea ds as follows:
709	721		A. Rural funds shall submit a report to the Department within
710	722		the first fifteen (15) business days after the second and t hird
711	723		anniversary of the initial credit allowance date. The report
712		-	following the second anniversary shall provide documentation as to
713		-	the investment of sixty percent (60%) of the purchase price of such
714		-	capital investment in qualified investment s. The report following
715	724
716		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 15 1
	725	+	SB1768 HFLR Page 15
	726	+	BOLD FACE denotes Committee Amendments. 1
717	727		2
718	728		3
719	729		4
720	730		5
721	731		6
722	732		7
723	733		8
724	734		9
725	735		10
726	736		11
727	737		12
728	738		13
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731	741		16
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736	746		21
737	747		22
738	748		23
739	749		24
740	750
	751	+	following the second anniversary shall provide documentation as to
	752	+	the investment of sixty percent (60%) of the purchase price of such
	753	+	capital investment in qualified investment s. The report following
741	754		the third anniversary shall provide documentation as to the
742	755		investment of one hundred percent (100%) of the purchase price of
743	756		such capital investment in qualified investments. Unless previously
744	757		reported pursuant to this subsection, such report s shall also
745	758		include:
746	759		1. The name and location of ea ch eligible business receiving a
747	760		qualified investment;
748	761		2. Bank statements of such rural fund evidencing each qualified
749	762		investment;
750	763		3. A copy of the written op inion of the Department, as provided
751	764		in subsection C of Section 4 of this act, or evidence that such
752	765		business was an eligible business at the time of such qualified
753	766		investment, as applicable;
754	767		4. The number of jobs created and jobs retained as a result of
755	768		each qualified investment ;
756	769		5. The average salary of positions described in paragraph 4 of
757	770		this subsection; and
758	771		6. Such other information as required by the Depart ment.
759	772		B. For all subsequent years, rural funds shall submit an annual
760	773		report to the Department within ninety (90) days of the beginning of
761		-	the calendar year during the compliance period. The report shall
762		-	include, but is not limited to, the following:
763		-	1. The number of jobs created and jobs retained as a result of
764		-	qualified investments;
765	774
766		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 16 1
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773	783		8
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786	796		21
787	797		22
788	798		23
789	799		24
790	800
	801	+	the calendar year during the compliance period. The report shall
	802	+	include, but is not limited to, the following:
	803	+	1. The number of jobs created and jobs retained as a result of
	804	+	qualified investments;
791	805		2. The average annual salary of positions described in
792	806		paragraph 1 of this subsection; and
793	807		3. Such other information as required by the Department.
794	808		C. On or after the sixth anniversary of the credit allowance
795	809		date, a rural fund may apply to the Department to exit t he program
796	810		and no longer be subject to the regulation hereunder. The
797	811		Department shall res pond to the exit application within f ifteen (15)
798	812		days of receipt. In evaluating the exit application, the fact that
799	813		no credits have been recaptured and that the rural fund has not
800	814		received a notice of recapture that has not been cured pursuant to
801	815		subsection E of Section 5 of this act shall be sufficient evidence
802	816		to prove that the rural fund is eligible for exit. The Department
803	817		shall not unreasonably deny an exit applic ation submitted under this
804	818		section. If an exit application is denied, the notice shall include
805	819		the reasons for the determination.
806	820		SECTION 8. NEW LAW A new section of law to be codified
807	821		in the Oklahoma Statutes as Section 3937 of Title 68, unless there
808	822		is created a duplication in n umbering, reads as follows:
809	823		The Department shall accept no new applications for tax credits
810	824		authorized under this act after December 1, 2032.
811		-	SECTION 9. AMENDATORY 68 O.S. 2021, Section 205, is
812		-	amended to read as follows:
813		-	Section 205. A. The records and files of the Oklahoma Tax
814		-	Commission concerning the administra tion of the Uniform Tax
815	825
816		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 17 1
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	827	+	BOLD FACE denotes Committee Amendments. 1
817	828		2
818	829		3
819	830		4
820	831		5
821	832		6
822	833		7
823	834		8
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827	838		12
828	839		13
829	840		14
830	841		15
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832	843		17
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836	847		21
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838	849		23
839	850		24
840	851
	852	+	SECTION 9. AMENDATORY 68 O.S. 2021, Section 205, is
	853	+	amended to read as follows:
	854	+	Section 205. A. The records and files of the Oklahoma Tax
	855	+	Commission concerning the administra tion of the Uniform Tax
841	856		Procedure Code or of any stat e tax law shall be considered
842	857		confidential and privileged, except as otherwi se provided for by
843	858		law, and neither the Tax Commission nor any employee engaged in the
844	859		administration of the Tax Commission or charged with the custody of
845	860		any such records or files nor any person who may have secured
846	861		information from the Tax Commission sha ll disclose any information
847	862		obtained from the records or files or from any examination or
848	863		inspection of the premises or propert y of any person.
849	864		B. Except as provided in paragraph 26 of subsection C of this
850	865		section, neither the Tax Commission nor any emplo yee engaged in the
851	866		administration of the Tax Commission or charged with the custody of
852	867		any such records or files shall be requi red by any court of this
853	868		state to produce any of the records or files for the inspection of
854	869		any person or for use in any action o r proceeding, except when the
855	870		records or files or the facts shown thereby are directly involved in
856	871		an action or proceeding purs uant to the provisions of the Uniform
857	872		Tax Procedure Code or of the state tax law, or when the
858	873		determination of the action or proc eeding will affect the validity
859	874		or the amount of the claim of the state pursuant to an y state tax
860	875		law, or when the information contained in the records or files
861		-	constitutes evidence of violation of the provisions of the Uniform
862		-	Tax Procedure Code or of any state tax law.
863		-	C. The provisions of this section shall not prevent the Tax
864		-	Commission, or with respect to the Oklahoma Department of Commerce
865	876
866		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 18 1
	877	+	SB1768 HFLR Page 18
	878	+	BOLD FACE denotes Committee Amendments. 1
867	879		2
868	880		3
869	881		4
870	882		5
871	883		6
872	884		7
873	885		8
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886	898		21
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888	900		23
889	901		24
890	902
	903	+	constitutes evidence of violation of the provisions of the Uniform
	904	+	Tax Procedure Code or of any state tax law.
	905	+	C. The provisions of this section shall not prevent the Tax
	906	+	Commission, or with respect to the Oklahoma Department of Commerce
891	907		in administration of the Oklahom a Rural Jobs Act as provided by
892	908		paragraph 22 of this subsection, from disclosing the following
893	909		information and no liability whatsoever, civil or criminal, sh all
894	910		attach to any member of the Tax Commission, or the Oklahoma
895	911		Department of Commerce as applicable, or any employee thereof for
896	912		any error or omission in the disclosure of such information:
897	913		1. The delivery to a taxp ayer or a duly authorized
898	914		representative of the taxpayer of a copy of any report or any other
899	915		paper filed by the taxpa yer pursuant to the prov isions of the
900	916		Uniform Tax Procedure Code or of any state tax law;
901	917		2. The exchange of information that is not prot ected by the
902	918		federal Privacy Protection A ct, 42 U.S.C., Section 2000aa et seq.,
903	919		pursuant to reciprocal agreements ente red into by the Tax Comm ission
904	920		and other state agencies or agencies of the federal government;
905	921		3. The publication of statistics so class ified as to prevent
906	922		the identification of a particular report and the items thereof;
907	923		4. The examination of records and files by the State Audi tor
908	924		and Inspector or the duly authorized agents of the State Auditor and
909	925		Inspector;
910		-	5. The disclosing of infor mation or evidence to the Oklahoma
911		-	State Bureau of Investigation, Attorney General, Oklahoma Stat e
912		-	Bureau of Narcotics an d Dangerous Drugs Contro l, any district
913		-	attorney or agent of any federal law enforcement agency when the
914		-	information or evidence is to be used by such officials to
915	926
916		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 19 1
	927	+	SB1768 HFLR Page 19
	928	+	BOLD FACE denotes Committee Amendments. 1
917	929		2
918	930		3
919	931		4
920	932		5
921	933		6
922	934		7
923	935		8
924	936		9
925	937		10
926	938		11
927	939		12
928	940		13
929	941		14
930	942		15
931	943		16
932	944		17
933	945		18
934	946		19
935	947		20
936	948		21
937	949		22
938	950		23
939	951		24
940	952
	953	+	5. The disclosing of infor mation or evidence to the Oklahoma
	954	+	State Bureau of Investigation, Attorney General, Oklahoma Stat e
	955	+	Bureau of Narcotics an d Dangerous Drugs Contro l, any district
	956	+	attorney or agent of any federal law enforcement agency when the
	957	+	information or evidence is to be used by such officials to
941	958		investigate or prosecute violations of the criminal provisions of
942	959		the Uniform Tax Procedure Code or of any state tax law or of any
943	960		federal crime committed against this state. Any information
944	961		disclosed to the Oklahoma State Bu reau of Investigation, Attorney
945	962		General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
946	963		Control, any district atto rney or agent of any federal law
947	964		enforcement agency shall be kept confidential by such person and not
948	965		be disclosed except when presen ted to a court in a prosecution for
949	966		violation of the tax laws of this state or except as specifical ly
950	967		authorized by law, an d a violation by the Okl ahoma State Bureau of
951	968		Investigation, Attorney General, Oklahoma State Bureau of Narcotics
952	969		and Dangerous Drugs Control, district attorney or agent of any
953	970		federal law enforcement agency by otherwise releasing t he
954	971		information shall be a felony;
955	972		6. The use by any division of the Tax Commission of any
956	973		information or evidence in the possession of or contained in any
957	974		report or return filed with any other divisi on of the Tax
958	975		Commission;
959		-	7. The furnishing, at the dis cretion of the Tax Commi ssion, of
960		-	any information disclosed by its records or files to any official
961		-	person or body of this state, any other state, the Uni ted States or
962		-	foreign country who is concerne d with the administration or
963		-	assessment of any similar ta x in this state, any other state or the
964		-	United States. The provisions of this paragraph shall include the
965	976
966		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 20 1
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967	979		2
968	980		3
969	981		4
970	982		5
971	983		6
972	984		7
973	985		8
974	986		9
975	987		10
976	988		11
977	989		12
978	990		13
979	991		14
980	992		15
981	993		16
982	994		17
983	995		18
984	996		19
985	997		20
986	998		21
987	999		22
988	1000		23
989	1001		24
990	1002
	1003	+	7. The furnishing, at the dis cretion of the Tax Commi ssion, of
	1004	+	any information disclosed by its records or files to any official
	1005	+	person or body of this state, any other state, the Uni ted States or
	1006	+	foreign country who is concerne d with the administration or
	1007	+	assessment of any similar ta x in this state, any other state or the
	1008	+	United States. The provisions of this paragraph shall include the
991	1009		furnishing of information by the Tax Commissio n to a county assessor
992	1010		to determine the amount of gross household income pursuant to the
993	1011		provisions of Section 8C of Article X of the Oklahoma Constitu tion
994	1012		or Section 2890 of this title. The Tax Commission shall promulgate
995	1013		rules to give guidance to the co unty assessors regarding the type of
996	1014		information which may be used by the county assessors in determini ng
997	1015		the amount of gross h ousehold income pursuant to Section 8C of
998	1016		Article X of the Oklahoma Constitution or Section 2890 of this
999	1017		title. The provisions o f this paragraph shall also include the
1000	1018		furnishing of information to the State Treasurer for the purpos e of
1001	1019		administration of the Uniform Unclaimed Pro perty Act;
1002	1020		8. The furnishing of information to other state agencies for
1003	1021		the limited purpose of aiding i n the collection of debts owed by
1004	1022		individuals to such requesting agencies;
1005	1023		9. The furnishing of informa tion requested by any member of the
1006	1024		general public and stated in the sworn lists or schedules of taxable
1007	1025		property of public service corporations organi zed, existing, or
1008	1026		doing business in this state w hich are submitted to and certified by
1009		-	the State Board of Equalization pursuant t o the provisions of
1010		-	Section 2858 of this title and Section 21 of Article X of the
1011		-	Oklahoma Constitution, provided such informat ion would be a public
1012		-	record if filed pursuant t o Sections 2838 and 2839 of this title on
1013		-	behalf of a corporation other than a pu blic service corporation ;
1014	1027
1015		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 21 1
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1016	1030		2
1017	1031		3
1018	1032		4
1019	1033		5
1020	1034		6
1021	1035		7
1022	1036		8
1023	1037		9
1024	1038		10
1025	1039		11
1026	1040		12
1027	1041		13
1028	1042		14
1029	1043		15
1030	1044		16
1031	1045		17
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1038	1052		24
1039	1053
	1054	+	the State Board of Equalization pursuant t o the provisions of
	1055	+	Section 2858 of this title and Section 21 of Article X of the
	1056	+	Oklahoma Constitution, provided such informat ion would be a public
	1057	+	record if filed pursuant t o Sections 2838 and 2839 of this title on
	1058	+	behalf of a corporation other than a pu blic service corporation ;
1040	1059		10. The furnishing of information requested by any member of
1041	1060		the general public and stated in the f indings of the Tax Commission
1042	1061		as to the adjustment and equalization of the valuation of real and
1043	1062		personal property of the counties of the state, which are submitted
1044	1063		to and certified by the State Board of Equalization pursuant to the
1045	1064		provisions of Section 2 865 of this title and Section 21 of Article X
1046	1065		of the Oklahoma Constitution;
1047	1066		11. The furnishing of information as to the issuance or
1048	1067		revocation of any tax permit, license or exemption by the Tax
1049	1068		Commission as provided for by law. Such information shall be
1050	1069		limited to the name of the person issued the permit, license or
1051	1070		exemption, the name of the business entity authorized to engage i n
1052	1071		business pursuant to t he permit, license or exemption, the address
1053	1072		of the business entity and the grounds for revocation;
1054	1073		12. The posting of notice of revocation of any tax permit or
1055	1074		license upon the premises of the place of business of any business
1056	1075		entity which has had any ta x permit or license revoked by the Tax
1057	1076		Commission as provided for by law. Such notice shall be limited to
1058	1077		the name of the person issued the permit or license, the name of th e
1059		-	business entity authorized to engage in business pursuant to the
1060		-	permit or license, the address of the business entity and the
1061		-	grounds for revocation;
1062		-	13. The furnishing of informati on upon written request by any
1063		-	member of the general public as to the outstanding and unpaid amount
1064	1078
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	1079	+	SB1768 HFLR Page 22
	1080	+	BOLD FACE denotes Committee Amendments. 1
1066	1081		2
1067	1082		3
1068	1083		4
1069	1084		5
1070	1085		6
1071	1086		7
1072	1087		8
1073	1088		9
1074	1089		10
1075	1090		11
1076	1091		12
1077	1092		13
1078	1093		14
1079	1094		15
1080	1095		16
1081	1096		17
1082	1097		18
1083	1098		19
1084	1099		20
1085	1100		21
1086	1101		22
1087	1102		23
1088	1103		24
1089	1104
	1105	+	business entity authorized to engage in business pursuant to the
	1106	+	permit or license, the address of the business entity and the
	1107	+	grounds for revocation;
	1108	+	13. The furnishing of informati on upon written request by any
	1109	+	member of the general public as to the outstanding and unpaid amount
1090	1110		due and owing by any taxpayer of this state for any d elinquent tax,
1091	1111		together with penalty and interest, for which a tax warrant or a
1092	1112		certificate of indebted ness has been filed pursuant to law;
1093	1113		14. After the filing of a tax warrant pursuant to law, the
1094	1114		furnishing of information upon w ritten request by any me mber of the
1095	1115		general public as to any agreement entered into by the Tax
1096	1116		Commission concerning a comprom ise of tax liability for an amount
1097	1117		less than the amount of tax liability stated on such warrant;
1098	1118		15. The disclosure of informatio n necessary to complete the
1099	1119		performance of any contract authorized by this title to any person
1100	1120		with whom the Tax Commission h as contracted;
1101	1121		16. The disclosure of information to any person for a purpose
1102	1122		as authorized by the taxpayer pursuant to a waiver of
1103	1123		confidentiality. The w aiver shall be in writing and shall be made
1104	1124		upon such form as the Tax Commission may prescribe;
1105	1125		17. The disclosure of information required in order to c omply
1106	1126		with the provisions of Section 2369 of this title ;
1107		-	18. The disclosure to an employer, as defined in Sections
1108		-	2385.1 and 2385.3 of this title, of information required in order to
1109		-	collect the tax imposed by Section 2385.2 of this title;
1110		-	19. The disclosure to a plaintiff of a corporation's last -known
1111		-	address shown on the records of the Franchise Tax Di vision of the
1112		-	Tax Commission in order for such plaintiff to comply with the
1113		-	requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
1114	1127
1115		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 23 1
	1128	+	SB1768 HFLR Page 23
	1129	+	BOLD FACE denotes Committee Amendments. 1
1116	1130		2
1117	1131		3
1118	1132		4
1119	1133		5
1120	1134		6
1121	1135		7
1122	1136		8
1123	1137		9
1124	1138		10
1125	1139		11
1126	1140		12
1127	1141		13
1128	1142		14
1129	1143		15
1130	1144		16
1131	1145		17
1132	1146		18
1133	1147		19
1134	1148		20
1135	1149		21
1136	1150		22
1137	1151		23
1138	1152		24
1139	1153
	1154	+	18. The disclosure to an employer, as defined in Sections
	1155	+	2385.1 and 2385.3 of this title, of information required in order to
	1156	+	collect the tax imposed by Section 2385.2 of this title;
	1157	+	19. The disclosure to a plaintiff of a corporation's last -known
	1158	+	address shown on the records of the Franchise Tax Di vision of the
	1159	+	Tax Commission in order for such plaintiff to comply with the
	1160	+	requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
1140	1161		20. The disclosure of information directly involved in the
1141	1162		resolution of the protest by a taxpayer to an assessm ent of tax or
1142	1163		additional tax or the resolution of a claim for refund filed by a
1143	1164		taxpayer, including the disclosure of the pendency of an
1144	1165		administrative proceeding involving such protest or claim, to a
1145	1166		person called by the Tax Commis sion as an expert witnes s or as a
1146	1167		witness whose area of knowledge or expertise specifically addresses
1147	1168		the issue addressed in the protest or claim for refund. Such
1148	1169		disclosure to a witness shall be limited to information pertaining
1149	1170		to the specific knowledge of that witness as to t he transaction or
1150	1171		relationship between taxpayer and witness;
1151	1172		21. The disclosure of information necessary to implement an
1152	1173		agreement authorized by Section 2702 of this title when such
1153	1174		information is directly i nvolved in the resolutio n of issues arising
1154	1175		out of the enforcement of a municipal sales tax ordinance. Such
1155	1176		disclosure shall be to the governing body or to the municipal
1156	1177		attorney, if so designated by the governing body;
1157		-	22. The furnishing of information regarding incentive paym ents
1158		-	made pursuant to the provisions of Sections 3601 through 3609 of
1159		-	this title or incentive p ayments made pursuant t o the provisions of
1160		-	Sections 3501 through 3508 of this title or tax credits authorized
1161		-	pursuant to the provisions of the Oklahoma Rural Jobs Act as
1162		-	provided by Sections 1 through 8 of this act;
1163	1178
1164		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 24 1
	1179	+	SB1768 HFLR Page 24
	1180	+	BOLD FACE denotes Committee Amendments. 1
1165	1181		2
1166	1182		3
1167	1183		4
1168	1184		5
1169	1185		6
1170	1186		7
1171	1187		8
1172	1188		9
1173	1189		10
1174	1190		11
1175	1191		12
1176	1192		13
1177	1193		14
1178	1194		15
1179	1195		16
1180	1196		17
1181	1197		18
1182	1198		19
1183	1199		20
1184	1200		21
1185	1201		22
1186	1202		23
1187	1203		24
1188	1204
	1205	+	22. The furnishing of information regarding incentive paym ents
	1206	+	made pursuant to the provisions of Sections 3601 through 3609 of
	1207	+	this title or incentive p ayments made pursuant t o the provisions of
	1208	+	Sections 3501 through 3508 of this title or tax credits authorized
	1209	+	pursuant to the provisions of the Oklahoma Rural Jobs Act as
	1210	+	provided by Sections 1 through 8 of this act;
1189	1211		23. The furnishing to a prospective purchaser of any business,
1190	1212		or his or her authorized representative, of information relating to
1191	1213		any liabilities, delinquencies, as sessments or warrants of the
1192	1214		prospective seller of the bus iness which have not been filed of
1193	1215		record, established or become final and which relate solely to the
1194	1216		seller's business. Any disclosure under this paragraph shall only
1195	1217		be allowed upon the presentm ent by the prospective buyer, or the
1196	1218		buyer's authorized rep resentative, of the purchase contract and a
1197	1219		written authorization between the parties;
1198	1220		24. The furnishing of information as to the amount of state
1199	1221		revenue affected by the issuance or granting of any tax permit,
1200	1222		license, exemption, deduction, credit or oth er tax preference by the
1201	1223		Tax Commission as provided for by law. Such information shall be
1202	1224		limited to the type of permit, license, exemption, deduction, credit
1203	1225		or other tax preference issued o r granted, the date and duration of
1204	1226		such permit, license, exempt ion, deduction, credit or other tax
1205	1227		preference and the amount of such revenue. The provisions of this
1206	1228		paragraph shall not authorize the disclosure of the name of the
1207		-	person issued such permit , license, exemption, deduction, credit or
1208		-	other tax preference, or the name of the business entity authorized
1209		-	to engage in business pursuant to the permit, license, exemption ,
1210		-	deduction, credit or other tax preference;
1211		-	25. The examination of records and files of a perso n or entity
1212		-	by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
1213	1229
1214		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 25 1
	1230	+	SB1768 HFLR Page 25
	1231	+	BOLD FACE denotes Committee Amendments. 1
1215	1232		2
1216	1233		3
1217	1234		4
1218	1235		5
1219	1236		6
1220	1237		7
1221	1238		8
1222	1239		9
1223	1240		10
1224	1241		11
1225	1242		12
1226	1243		13
1227	1244		14
1228	1245		15
1229	1246		16
1230	1247		17
1231	1248		18
1232	1249		19
1233	1250		20
1234	1251		21
1235	1252		22
1236	1253		23
1237	1254		24
1238	1255
	1256	+	person issued such permit , license, exemption, deduction, credit or
	1257	+	other tax preference, or the name of the business entity authorized
	1258	+	to engage in business pursuant to the permit, license, exemption ,
	1259	+	deduction, credit or other tax preference;
	1260	+	25. The examination of records and files of a perso n or entity
	1261	+	by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
1239	1262		Control pursuant to a court order by a magistrate in whose
1240	1263		territorial jurisdiction t he person or entity resides, or where the
1241	1264		Tax Commission records and files a re physically located . Such an
1242	1265		order may only be issued upon a s worn application by an agent of the
1243	1266		Oklahoma State Bureau of Narcotics and Dangerous Drugs Control,
1244	1267		certifying that the person or entity whose records and files are to
1245	1268		be examined is the targ et of an ongoing inve stigation of a felony
1246	1269		violation of the Unifo rm Controlled Dangerous Substances Act and
1247	1270		that information resulting from such an examination would likely be
1248	1271		relevant to that investigation. Any records or information obtained
1249	1272		pursuant to such an order may on ly be used by the Oklahoma State
1250	1273		Bureau of Narcotics and Dangerous Drugs Control in the investigation
1251	1274		and prosecution of a felony violation of the Uniform Cont rolled
1252	1275		Dangerous Substances Act. Any such order issued pursuant to this
1253	1276		paragraph, along with th e underlying application, shall be sealed
1254	1277		and not disclosed to the person or entity whose records were
1255	1278		examined, for a period of ninety (90) days. The issuing magistrate
1256	1279		may grant extensions of such period upon a showing of good cause in
1257		-	furtherance of the investigation. Upon the expiration of nin ety
1258		-	(90) days and any extensions granted by the magistrate, a copy of
1259		-	the application and order shall be served upo n the person or entity
1260		-	whose records were examined, along with a copy of the records or
1261		-	information actually provided by the Tax Commission;
1262	1280
1263		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 26 1
	1281	+	SB1768 HFLR Page 26
	1282	+	BOLD FACE denotes Committee Amendments. 1
1264	1283		2
1265	1284		3
1266	1285		4
1267	1286		5
1268	1287		6
1269	1288		7
1270	1289		8
1271	1290		9
1272	1291		10
1273	1292		11
1274	1293		12
1275	1294		13
1276	1295		14
1277	1296		15
1278	1297		16
1279	1298		17
1280	1299		18
1281	1300		19
1282	1301		20
1283	1302		21
1284	1303		22
1285	1304		23
1286	1305		24
1287	1306
	1307	+	furtherance of the investigation. Upon the expiration of nin ety
	1308	+	(90) days and any extensions granted by the magistrate, a copy of
	1309	+	the application and order shall be served upo n the person or entity
	1310	+	whose records were examined, along with a copy of the records or
	1311	+	information actually provided by the Tax Commission;
1288	1312		26. The disclosure of information, as prescribed by this
1289	1313		paragraph, which is related to the proposed or actual usa ge of tax
1290	1314		credits pursuant to Section 2357.7 of this title, the Small B usiness
1291	1315		Capital Formation Incentive Act or the Rural Venture Capital
1292	1316		Formation Incentive Act. Unless the context clearly requires
1293	1317		otherwise, the terms used in this paragraph shall have the same
1294	1318		meaning as defined by Section 2357.7, 2357.61 or 2357.72 of t his
1295	1319		title. The disclosure of information authorized by this paragraph
1296	1320		shall include:
1297	1321		a. the legal name of any qualified venture capital
1298	1322		company, qualified small business capital compan y or
1299	1323		qualified rural small business capital company,
1300	1324		b. the identity or legal name of any person or entity
1301	1325		that is a shareholder or partner of a qualified
1302	1326		venture capital company, qualified small business
1303	1327		capital company or qualified rural small business
1304	1328		capital company,
1305	1329		c. the identity or legal name of any Oklahoma busi ness
1306	1330		venture, Oklahoma small bu siness venture or Oklahoma
1307		-	rural small business venture in which a qualified
1308		-	investment has been made by a capital company, or
1309		-	d. the amount of funds invested in a qualified venture
1310		-	capital company, the amount of qualified investments
1311		-	in a qualified small business capital company or
1312	1331
1313		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 27 1
	1332	+	SB1768 HFLR Page 27
	1333	+	BOLD FACE denotes Committee Amendments. 1
1314	1334		2
1315	1335		3
1316	1336		4
1317	1337		5
1318	1338		6
1319	1339		7
1320	1340		8
1321	1341		9
1322	1342		10
1323	1343		11
1324	1344		12
1325	1345		13
1326	1346		14
1327	1347		15
1328	1348		16
1329	1349		17
1330	1350		18
1331	1351		19
1332	1352		20
1333	1353		21
1334	1354		22
1335	1355		23
1336	1356		24
1337	1357
	1358	+	rural small business venture in which a qualified
	1359	+	investment has been made by a capital company, or
	1360	+	d. the amount of funds invested in a qualified venture
	1361	+	capital company, the amount of qualified investments
	1362	+	in a qualified small business capital company or
1338	1363		qualified rural small business capital company and the
1339	1364		amount of investments made by a qualified venture
1340	1365		capital company, qualified small business capital
1341	1366		company, or qualified rural small busine ss capital
1342	1367		company;
1343	1368		27. The disclosure of specific information as required by
1344	1369		Section 46 of Title 62 of the Oklahoma Statutes;
1345	1370		28. The disclosure of specific information as required by
1346	1371		Section 205.5 of this title;
1347	1372		29. The disclosure of sp ecific information as required by
1348	1373		Section 205.6 of this title;
1349	1374		30. The disclosure of information to the State Treasurer
1350	1375		necessary to implement Section 2368.27 of this title;
1351	1376		31. The disclosure of specific information to the Oklahoma
1352	1377		Health Care Authority for purposes of determining eligibility for
1353	1378		current or potential recipients of assistance from the Oklahoma
1354	1379		Medicaid Program; or
1355	1380		32. The disclosure of information to the Oklahoma Department of
1356	1381		Veterans Affairs including but not limited to the name and basis for
1357		-	eligibility of each individual who quali fies for the sales tax
1358		-	exemption authorized in paragraph 34 of Section 1357 of this title.
1359		-	D. The Tax Commission shall cause to be prepared and made
1360		-	available for public inspection in the office of the Tax Commission
1361		-	in such manner as it may determine an annual list containing the
1362	1382
1363		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 28 1
	1383	+	SB1768 HFLR Page 28
	1384	+	BOLD FACE denotes Committee Amendments. 1
1364	1385		2
1365	1386		3
1366	1387		4
1367	1388		5
1368	1389		6
1369	1390		7
1370	1391		8
1371	1392		9
1372	1393		10
1373	1394		11
1374	1395		12
1375	1396		13
1376	1397		14
1377	1398		15
1378	1399		16
1379	1400		17
1380	1401		18
1381	1402		19
1382	1403		20
1383	1404		21
1384	1405		22
1385	1406		23
1386	1407		24
1387	1408
	1409	+	eligibility of each individual who quali fies for the sales tax
	1410	+	exemption authorized in paragraph 34 of Section 1357 of this title.
	1411	+	D. The Tax Commission shall cause to be prepared and made
	1412	+	available for public inspection in the office of the Tax Commission
	1413	+	in such manner as it may determine an annual list containing the
1388	1414		name and post office address of each person, whether individual,
1389	1415		corporate or otherwise, making and filing an income tax return with
1390	1416		the Tax Commission.
1391	1417		It is specifically provided that no liability whatsoever, civil
1392	1418		or criminal, shall attach to any member of the Tax Commission or any
1393	1419		employee thereof for any error or omission of any name or address in
1394	1420		the preparation and publication o f the list.
1395	1421		E. The Tax Commission shall prepare or cause to be prepared a
1396	1422		report on all provisio ns of state tax law that reduce state revenue
1397	1423		through exclusions, deductions, credits, exemptions, deferrals or
1398	1424		other preferential tax treatments. The report shall be prepared not
1399	1425		later than October 1 of each even -numbered year and shall be
1400	1426		submitted to the Governor, the President Pro Tempore of the Senate
1401	1427		and the Speaker of the House of Representatives. The Tax Commission
1402	1428		may prepare and submit supplements to the report at other times of
1403	1429		the year if additional or updated information relevant to the repor t
1404	1430		becomes available. The report shall include, for the previous
1405	1431		fiscal year, the Tax Commission's best estimate of the amount of
1406	1432		state revenue that would have been collected but for the existence
1407		-	of each such exclusion, deduction, credit, exemption, defer ral or
1408		-	other preferential tax treatment allowed by law. The Tax Commission
1409		-	may request the assistance of other state agencies as may be needed
1410		-	to prepare the report. The Tax Commission is authorized to require
1411		-	any recipient of a tax incentive or tax expe nditure to report to the
1412	1433
1413		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 29 1
	1434	+	SB1768 HFLR Page 29
	1435	+	BOLD FACE denotes Committee Amendments. 1
1414	1436		2
1415	1437		3
1416	1438		4
1417	1439		5
1418	1440		6
1419	1441		7
1420	1442		8
1421	1443		9
1422	1444		10
1423	1445		11
1424	1446		12
1425	1447		13
1426	1448		14
1427	1449		15
1428	1450		16
1429	1451		17
1430	1452		18
1431	1453		19
1432	1454		20
1433	1455		21
1434	1456		22
1435	1457		23
1436	1458		24
1437	1459
	1460	+	of each such exclusion, deduction, credit, exemption, defer ral or
	1461	+	other preferential tax treatment allowed by law. The Tax Commission
	1462	+	may request the assistance of other state agencies as may be needed
	1463	+	to prepare the report. The Tax Commission is authorized to require
	1464	+	any recipient of a tax incentive or tax expe nditure to report to the
1438	1465		Tax Commission such information as requested so that the Tax
1439	1466		Commission may fulfill its obligations as required by this
1440	1467		subsection. The Tax Commission may require this information to be
1441	1468		submitted in an electronic format. The Tax Commission may disallow
1442	1469		any claim of a person for a tax incentive due to its failure to file
1443	1470		a report as required under the authority of this subsection.
1444	1471		F. It is further provided that the provisions of this section
1445	1472		shall be strictly interpreted and shal l not be construed as
1446	1473		permitting the disclosure of any other information contained in the
1447	1474		records and files of the Tax Commission relating to income tax or to
1448	1475		any other taxes.
1449	1476		G. Unless otherwise provided for in this section, any violation
1450	1477		of the provisions of this section shall constitute a misdemeanor and
1451	1478		shall be punishable by the imposition of a fine not exceeding One
1452	1479		Thousand Dollars ($1,000.00) or by impri sonment in the county jail
1453	1480		for a term not exceeding one (1) year, or by both such fine and
1454	1481		imprisonment, and the offender shall be removed or dismissed from
1455	1482		office.
1456		-	H. Offenses described in Section 2376 of this title shall be
1457		-	reported to the appropriate d istrict attorney of this state by the
1458		-	Tax Commission as soon as the offenses are discovered by the Tax
1459		-	Commission or its agents or employees. The Tax Commission shall
1460		-	make available to the appropriate district attorney or to the
1461		-	authorized agent of the di strict attorney its records and files
1462	1483
1463		-	ENGR. H. A. to ENGR. S. B. NO. 1768 Page 30 1
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1464	1486		2
1465	1487		3
1466	1488		4
1467	1489		5
1468	1490		6
1469	1491		7
1470	1492		8
1471	1493		9
1472	1494		10
1473	1495		11
1474	1496		12
1475	1497		13
1476	1498		14
1477	1499		15
1478	1500		16
1479	1501		17
1480	1502		18
1481	1503		19
1482	1504		20
1483	1505		21
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	1510	+	H. Offenses described in Section 2376 of this title shall be
	1511	+	reported to the appropriate d istrict attorney of this state by the
	1512	+	Tax Commission as soon as the offenses are discovered by the Tax
	1513	+	Commission or its agents or employees. The Tax Commission shall
	1514	+	make available to the appropriate district attorney or to the
	1515	+	authorized agent of the di strict attorney its records and files
1488	1516		pertinent to prosecutions, and such records and files sh all be fully
1489	1517		admissible as evidence for the purpose of such prosecutions.
1490		-	SECTION 10. This act shall become effective November 1, 2022. "
1491		-	Passed the House of Representatives the 27th day of April, 2022.
	1518	+	SECTION 10. This act shall become effective November 1, 2022.
1492	1519
1493		-
1494		-
1495		-
1496		-
1497		-	Presiding Officer of the House of
1498		-	Representatives
1499		-
1500		-
1501		-	Passed the Senate the ____ day of _______ ___, 2022.
1502		-
1503		-
1504		-
1505		-
1506		-
1507		-	Presiding Officer of the Senate
1508		-
1509		-
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1535		-	ENGROSSED SENATE
1536		-	BILL NO. 1768 By: Howard and Jech of the
1537		-	Senate
1538		-
1539		-	and
1540		-
1541		-	Wallace of the House
1542		-
1543		-
1544		-
1545		-	[ revenue and taxation - Oklahoma Rural Jobs Act -
1546		-	tax credit - sunset date - codification - effective
1547		-	date ]
1548		-
1549		-
1550		-
1551		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
1552		-	SECTION 11. NEW LAW A new section of law to be codified
1553		-	in the Oklahoma Statutes as Sec tion 3930 of Title 68, unless there
1554		-	is created a duplicat ion in numbering, reads as follows:
1555		-	This act shall be known and may be cited as the "Oklahoma Rural
1556		-	Jobs Act".
1557		-	SECTION 12. NEW LAW A new section of law to be codified
1558		-	in the Oklahoma Statute s as Section 3931 of Title 68, unless there
1559		-	is created a duplication in numberin g, reads as follows:
1560		-	As used in this act:
1561		-	1. "Affiliate" means an entity that directly, or indirectly
1562		-	through one or more intermedia ries, controls, or is controlled by,
1563		-	or is under the common control with another entity. An entity is
1564		-	controlled by anothe r entity if the controlling entity holds,
1565		-	directly or indirectly , the majority of voting or ownershi p interest
1566		-
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1591		-
1592		-	in the controlled entity or has control over day -to-day operations
1593		-	of the controlled entity by contract or by law;
1594		-	2. "Applicable percentage " means zero percent (0%) for the
1595		-	first two credit allowance dates, and fifteen percent (15%) for the
1596		-	next four credit allowance dates;
1597		-	3. "Capital investment" means any equity investment in a rural
1598		-	fund by a rural investor which:
1599		-	a. is acquired after the eff ective date of this act at
1600		-	its original issuance solely in exchange for cash,
1601		-	b. has one hundred percent (100%) of its cash purchase
1602		-	price used by the rural fund to make qualified
1603		-	investments in eligible businesses located in this
1604		-	state by the third anniv ersary of the initial credit
1605		-	allowance date, and
1606		-	c. is designated by the rural fund as a capital
1607		-	investment under this act and is cert ified by the
1608		-	Department under the provisio ns of Section 3 of this
1609		-	act. This shall include any capital investment that
1610		-	does not meet the provisions of paragraph 1 of
1611		-	subsection A of Section 3 of this act, if such
1612		-	investment was a capital investment in the hands of a
1613		-	prior holder;
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1639		-
1640		-	4. "Credit allowance date" means the date on which the
1641		-	Department certifies a rural fund's capital investment and each of
1642		-	the five anniversary dates of such date thereafter;
1643		-	5. "Department" means the Oklahoma Department of Commerce;
1644		-	6. "Eligible business" means a business that, at the time of
1645		-	the initial qualifie d investment in the business:
1646		-	a. has fewer than two hundred fifty employees, and
1647		-	b. has its principal business oper ations in the state.
1648		-	Any business which is classified as an eligible business at the
1649		-	time of the initial investment in such business by a rural fund
1650		-	shall remain classified as an eligible business and may receive
1651		-	follow-on investments from any rural fund, and such follow-on
1652		-	investments shall be qualified investments even though such business
1653		-	may not meet the definition of an eligible business at the time of
1654		-	such follow-on investment;
1655		-	7. "Principal business operations" means the location where at
1656		-	least sixty percent (60%) of a business's employees work or where
1657		-	employees who are paid at least sixty percent (60%) of such
1658		-	business's payroll work. A business that has agreed to relocate
1659		-	employees using the proceeds of a qualified investment to establish
1660		-	its principal business operations in a new location shall be deemed
1661		-	to have its principal business operations in such new location if it
1662		-	satisfied the requirements of this paragraph no later than one
1663		-	hundred eighty (180) days after receiving a qualified investment;
1664		-
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1689		-
1690		-	8. "Purchase price" means the amount paid to the rural fund
1691		-	that issues a capital investment which shall not exceed the amount
1692		-	of capital investment authority certified under the provisions of
1693		-	Section 3 of this act;
1694		-	9. "Qualified investment" means any investment in an eligible
1695		-	business or any loan to an eligible business with a stated maturi ty
1696		-	date of at least one (1) year after the date of issuance, excluding
1697		-	revolving lines of credit and senior-secured debt unless the chief
1698		-	executive or similar officer of the eligible business certifies that
1699		-	the eligible business sought and was denied simil ar financing from a
1700		-	depository instituti on, by a rural fund; provided that, with respect
1701		-	to any one eligible business, the maximum amount of investments made
1702		-	in such business by on e or more rural funds, on a collective basi s
1703		-	with all of the businesses' affiliates, with the proceeds of the
1704		-	capital investments, shall be the greater of twenty percent (20%) of
1705		-	the rural fund's capital investment authority or Six Million Five
1706		-	Hundred Thousand Dollars ($6,500,000.00), exclusive of investmen ts
1707		-	made with repaid or redeemed investments or interest or profits
1708		-	realized thereon;
1709		-	10. "Rural area" means any county of this state that has a
1710		-	population of less than seventy-five thousand (75,000) or an y city
1711		-	or town of this state that has a populatio n not to exceed seven
1712		-	thousand (7,000) accordi ng to the 2020 Federal Decennial Census of
1713		-	the United States;
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1715		-	ENGR. S. B. NO. 1768 Page 5 1
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1739		-
1740		-	11. "Rural fund" means an entity certified by the Department
1741		-	under the provisions of Section 3 of this act;
1742		-	12. "Rural investor" means an entity that makes a capital
1743		-	investment in a rural fund;
1744		-	13. "Senior-secured debt" means any loan that is secured by a
1745		-	first mortgage on real estate with a loan-to-value ratio of less
1746		-	than eighty percent (80%); and
1747		-	14. "State tax liability" means any liability incurred by any
1748		-	entity subject to the state income tax imposed under Title 68 of the
1749		-	Oklahoma Statutes or an insurance company paying an annual tax on
1750		-	its gross premium receipts including retaliatory tax, or other
1751		-	financial institution paying taxes to the state or any political
1752		-	subdivision of the state under provisions of Title 68 or Title 19 of
1753		-	the Oklahoma Statutes or an express company which pays an annual tax
1754		-	on its gross receipts in the state.
1755		-	SECTION 13. NEW LAW A new section of law to be codified
1756		-	in the Oklahoma Statutes as Sec tion 3932 of Title 68, unless there
1757		-	is created a duplica tion in numbering, reads as follows:
1758		-	A. A rural fund that seeks to have an equity investment
1759		-	certified as a capital investment eligible for credits a uthorized
1760		-	under the provisions of this act shall apply to the D epartment. The
1761		-	Department shall begin accepting applications within ninety (90)
1762		-	days of the effective date of this act. The application shall
1763		-	include:
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1789		-
1790		-	1. The amount of capital investment requested;
1791		-	2. A copy of the applicant's or an affiliate of the applicant's
1792		-	licenses as a rural business investment company under 7 U.S.C.,
1793		-	Section 2009cc or as a small business investment company under 15
1794		-	U.S.C., Section 681, and a certificate executed by an executive
1795		-	officer of the applicant attesting t hat such license remains in
1796		-	effect and has not been revoked;
1797		-	3. Evidence that, as of the date the application is submitted,
1798		-	the applicant or affiliates of the applicant have invested at least
1799		-	One Hundred Million Dollars ($100,000,000.00) in nonpublic companies
1800		-	located in counties within the United States with a p opulation of
1801		-	less than seventy-five thousand (75,000) according to the 2010
1802		-	Federal Decennial Census of the United States;
1803		-	4. A business plan that includes a rev enue-impact assessment
1804		-	projecting state and local tax rev enue to be generated by the
1805		-	applicant's proposed qualified investments, prepared by a nationally
1806		-	recognized, third-party, independent economic forecasting firm using
1807		-	a dynamic economic forecasting model that analyzes the applicant's
1808		-	business plan over the ten (10) years following the date the
1809		-	application is submitted to the Department. Such plan shall include
1810		-	an estimate of the number of jobs create d and jobs retained in this
1811		-	state as a result of the applica nt's qualified investments; and
1812		-	5. A nonrefundable application fee of Five Thousand Dollars
1813		-	($5,000.00) payable to the Department.
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1840		-	B. Within thirty (30) days after the receipt of a completed
1841		-	application, the Departme nt shall grant or deny the application in
1842		-	full or in part. The Department shall deny the application if:
1843		-	1. The applicant does not satisfy all the criteria provided
1844		-	under subsection A of this section;
1845		-	2. The revenue-impact assessment submitted with the application
1846		-	does not demonstrate that the ap plicant's business plan will result
1847		-	in a positive fiscal impact on the state ove r a ten-year period that
1848		-	exceeds the cumulative amount of tax credits that would be issued to
1849		-	the applicant if the application was approved; or
1850		-	3. The Department has already approved the maximum amount of
1851		-	capital investment authority under Section 4 of this act.
1852		-	C. If the Department denies any part of the application, it
1853		-	shall inform the applicant of the gr ounds for such denial. If the
1854		-	applicant provides any additional inform ation required by the
1855		-	Department or otherwi se completes its application within f ifteen
1856		-	(15) days of the notice of denial, the application shall be
1857		-	considered complete as of the original date of submission. If the
1858		-	applicant fails to provide the in formation or fails to complete its
1859		-	application within the fifteen-day period, the application shall
1860		-	remain denied and must be resubmitted with a new submission date and
1861		-	a new application fee.
1862		-	D. Upon approval of an application, the Dep artment shall
1863		-	certify the proposed equity investment as a capital investment
1864		-
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1889		-
1890		-	eligible for credits under this act, subject to limitations laid out
1891		-	in Section 4 of this act. The Department shall provide written
1892		-	notice of the certification to the applicant which shall include the
1893		-	amount of the applicant's capital investment authority. The
1894		-	Department shall certify capital investments in the order that the
1895		-	application is received by the Department. Applications received on
1896		-	the same day shall be de emed to have been received simultaneously .
1897		-	For applications that are complete and received on the same day, the
1898		-	Department shall certify applications in proportionate percentages
1899		-	based upon the ratio of the amount of capital investment authority
1900		-	requested in all applications.
1901		-	SECTION 14. NEW LAW A new section of la w to be codified
1902		-	in the Oklahoma Statu tes as Section 3933 of Title 68, unless there
1903		-	is created a duplication in numbering, reads as follows:
1904		-	A. The Department shall certify capital inv estment authority
1905		-	under the provisions of this act in amounts that woul d not authorize
1906		-	more than Fifteen Million Dollars ($15,000,000.00) in state tax
1907		-	credits to be claimed against state tax liability in any cal endar
1908		-	year, excluding any credit amounts carried forward as provided under
1909		-	subsection A of Section 5 of this act. Within ninety (90) days of
1910		-	the applicant receiving notice of certification, the rural fund
1911		-	shall issue the capital investment to, and receive cash in the
1912		-	amount of the certified amount from a rural investor. At least ten
1913		-	percent (10%) of the rural investor's capital investment shall be
1914		-
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1939		-
1940		-	composed of capital raised by the rural investor directly or
1941		-	indirectly from sources including directors, mem bers, employees,
1942		-	officers, and affiliates of the rural investor, other than the
1943		-	amount invested by the allocatee cl aiming the tax credits in
1944		-	exchange for such allocation of tax credits. The rural fund shall
1945		-	provide the Department with evidence of the recei pt of the cash
1946		-	investment within nine ty-five (95) days of the applica nt receiving
1947		-	notice of certification.
1948		-	B. If the rural fund does not receive the cash investment and
1949		-	issue the capital investment within such time period following
1950		-	receipt of the certificate notice, the certifica tion shall lapse and
1951		-	the rural fund shall not issue the capital investment without
1952		-	reapplying to the Department for certificati on. Lapsed
1953		-	certifications shall revert to the Department and shall be reissued
1954		-	pro rata to applicants whose capital investment allocations were
1955		-	reduced in accordance with the application process provided under
1956		-	subsection D of Section 3 of this act.
1957		-	C. A rural fund, before making a qualified investment, may
1958		-	request from the Department a written opinion as to whether the
1959		-	business in which it proposes to invest is an eligible business.
1960		-	The Department, no later than fifteen (15) business day after the
1961		-	date of receipt of such request, shall notify the rural fund of its
1962		-	determination. If the Department fails to notify the rural fund of
1963		-	its determination by the twentieth business day, the business in
1964		-
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1990		-	which the rural fund proposes to invest shall be deemed an eligible
1991		-	business.
1992		-	SECTION 15. NEW LAW A new section of law to be codified
1993		-	in the Oklahoma Statutes as Sec tion 3934 of Title 68, unless there
1994		-	is created a duplication in numbering, rea ds as follows:
1995		-	A. Upon making a capital investment in a rural fund, a rural
1996		-	investor shall have a vested right to a credit against such entity's
1997		-	state tax liability that may be utilized on each c redit allowance
1998		-	date of such capital investment in an amount equal to the applicable
1999		-	percentage for such credit allowance date multiplied by the purchase
2000		-	price paid to the rural fund for the capital investment. The amount
2001		-	of the credit claimed by a rural investor shall not exceed the
2002		-	amount of such entity's state tax liability for the tax year for
2003		-	which the credit is claimed. Any amount of credit that a rural
2004		-	investor is prohibited from claiming in a tax year as a result of
2005		-	this section may be carried forward for use in any of the five (5)
2006		-	subsequent tax years, but shall not be carried back to prior tax
2007		-	years. It is the intent of this act that a rural investor claiming
2008		-	a credit under this act is not required to pay any additional tax
2009		-	that may arise as a result of claiming such credit.
2010		-	B. No credit claimed under the provisions of this act shall be
2011		-	refundable or saleable on the open market. Credits earned by or
2012		-	allocated to a partnership, limited liability company, or S-
2013		-	corporation may be allocated to the partners, members, or
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2039		-
2040		-	shareholders of such entity for their direct use in accordance with
2041		-	the provisions of any agreement among such partners, members, or
2042		-	shareholders, and a rural fund shall notify the Department of the
2043		-	names of the entities that are eligible to utilize transfer of a
2044		-	capital investment upon such allocation, ch ange, or transfer. Such
2045		-	allocation shall not be considered a sale for the purpose of this
2046		-	section.
2047		-	C. The Department may recapture credits from a taxpayer that
2048		-	claimed a credit authoriz ed under this section if:
2049		-	1. The rural fund does not invest sixty percent (60%) of its
2050		-	capital investment authority in qualified investments in this state
2051		-	within two (2) years of the credit allowance date , and one hundred
2052		-	percent (100%) of its capital inv estment authority in qualified
2053		-	investments in this state within three (3) years of the credit
2054		-	allowance date; provided, that at least seventy percent (70%) of
2055		-	these initial qualified investments must be made in eligible
2056		-	businesses located in rural are as;
2057		-	2. The rural fund fails to maintain qualified investment s equal
2058		-	to ninety percent (90%) of its capital invest ment authority from the
2059		-	third anniversary until the sixth anniversary of the credit
2060		-	allowance date, with seventy percent (70%) of such investments
2061		-	maintained in eligible busine sses located in rural areas. For each
2062		-	year the rural fund fails to maintain such investments, the
2063		-	Department may recapture an amount of such year's allowed credits
2064		-
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2089		-
2090		-	equal to the percentage difference between ninety percent (90% ) of a
2091		-	rural fund's capital investment authority and the actual amount of
2092		-	qualified investments maintained for such year. For the purposes of
2093		-	this subsection, a qualified investment is considered even if the
2094		-	qualified investment was sold or repaid so long as the rural fund
2095		-	reinvests an amount equal to the capital returned or recovered or
2096		-	repaid by the rural fund from the original investment, exclusive of
2097		-	any profits realized, in other qualified investments in this state
2098		-	within twelve (12) months of receipt of such capital . Amounts
2099		-	received periodically by a rural fund shall be treated as
2100		-	continually invested in qualified investments if the amounts are
2101		-	reinvested in one or more qualified investments by the end of the
2102		-	following calendar year. A rural fund shall not be required to
2103		-	reinvest capital returned from qualified investments after the fifth
2104		-	anniversary of the credit allowance date, and such qualified
2105		-	investments shall be considered held continuously by the rural fund
2106		-	through the sixth anniversary of the credit allowance date ;
2107		-	3. Prior to the earlier of exiting the program in accordance
2108		-	with this act or thirty (30) days after the sixth anniversary of the
2109		-	credit allowance date, the rural fund makes a distribution or
2110		-	payment that results in the rural fund having less than one hundred
2111		-	percent (100%) of its capital investment authority invested in
2112		-	qualified investments in the state or held in cash or other
2113		-	marketable securities; or
2114		-
2115		-	ENGR. S. B. NO. 1768 Page 13 1
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2130		-	16
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2138		-	24
2139		-
2140		-	4. The rural fund violates the provisions of Section 6 of this
2141		-	act, in which case the Department may recapture an amount equal to
2142		-	the amount of the rural fund's capital investment authority found to
2143		-	be in violation of such provisions.
2144		-	For the purposes of m eeting and maintaining the objectives
2145		-	established for investment in paragraphs 1 and 2 of this subsection,
2146		-	a rural fund's qualified investment s shall be multiplied by a factor
2147		-	of one and one-quarter (1 1/4) in counties with less than thirty
2148		-	thousand (30,000) in population and more than thirteen thousand
2149		-	(13,000) in population and shall be m ultiplied by a factor of one
2150		-	and one-half (1 1/2) in counties with a population of thirteen
2151		-	thousand (13,000) or less.
2152		-	D. Recaptured credits and related capital investment authority
2153		-	shall revert to the Department and shall be reissued pro rata to
2154		-	applicants whose capital investment allocations were reduced in
2155		-	accordance with the application process provided under subsection D
2156		-	of Section 3 of this act.
2157		-	E. No recapture shall occur until the rural fund has been given
2158		-	notice of noncompliance and afforded six (6) mont hs from the date of
2159		-	such notice to cure the noncompl iance.
2160		-	SECTION 16. NEW LAW A new section of law to be codified
2161		-	in the Oklahoma Statutes as Section 3935 of Title 68, unless there
2162		-	is created a duplication in numbering, rea ds as follows:
2163		-
2164		-	ENGR. S. B. NO. 1768 Page 14 1
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2183		-	20
2184		-	21
2185		-	22
2186		-	23
2187		-	24
2188		-
2189		-	No eligible business that receives a qualified investment under
2190		-	the provisions of this act, or any affiliates or such eligible
2191		-	business, shall directly or in directly:
2192		-	1. Own or have the right to acquire an ownership interest in a
2193		-	rural fund or member or affiliate of a rural fund including, but not
2194		-	limited to, a holder of a capital investment issued by a rural fund;
2195		-	or
2196		-	2. Loan to or invest in a rural fund or any member or affiliate
2197		-	of a rural fund including, but not limited to, a holde r of capital
2198		-	investment issued by a rural fund, where the proceeds of such loan
2199		-	or investment are directly or indirectly used to fund or refinance
2200		-	the purchase of capital investments under this act.
2201		-	SECTION 17. NEW LAW A new section of law to be codi fied
2202		-	in the Oklahoma Statutes as Sec tion 3936 of Title 68, unless there
2203		-	is created a duplication in numbering, reads as follows:
2204		-	A. Rural funds shall submit a report to the Department within
2205		-	the first fifteen (15) business days after the second and t hird
2206		-	anniversary of the initial credit allowance date. The report
2207		-	following the second anniversary shall provide documentation as to
2208		-	the investment of sixty percent (60%) of the purchase price of such
2209		-	capital investment in qualified investment s. The report following
2210		-	the third anniversary shall provide documentation as to the
2211		-	investment of one hundred percent (100%) of the purchase price of
2212		-	such capital investment in qualified investments. Unless previously
2213		-
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2216		-	3
2217		-	4
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2220		-	7
2221		-	8
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2236		-	23
2237		-	24
2238		-
2239		-	reported pursuant to this subsection, such report s shall also
2240		-	include:
2241		-	1. The name and location of ea ch eligible business receiving a
2242		-	qualified investment;
2243		-	2. Bank statements of such rural fund evidencing each qualified
2244		-	investment;
2245		-	3. A copy of the written op inion of the Department, as provided
2246		-	in subsection C of Section 4 of this act, or evidence that such
2247		-	business was an eligible business at the time of such qualified
2248		-	investment, as applicable;
2249		-	4. The number of jobs created and jobs retained as a result of
2250		-	each qualified investment ;
2251		-	5. The average salary of positions described in paragraph 4 of
2252		-	this paragraph; and
2253		-	6. Such other information as required by the Department.
2254		-	B. For all subsequent years, rural funds shall submit an annual
2255		-	report to the Department within ninety (90) days of the beginning of
2256		-	the calendar year during the compliance period. The report shall
2257		-	include, but is not limited to the following:
2258		-	1. The number of jobs created and jobs retained as a result of
2259		-	qualified investments;
2260		-	2. The average annual salary of positions described in
2261		-	paragraph 1 of this subsection; and
2262		-	3. Such other information as required by the Department.
2263		-
2264		-	ENGR. S. B. NO. 1768 Page 16 1
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2288		-
2289		-	C. On or after the sixth anniversary of the credit allowance
2290		-	date, a rural fund may apply to the Department to exit t he program
2291		-	and no longer be subject to the regulation hereunder. The
2292		-	Department shall res pond to the exit application within f ifteen (15)
2293		-	days of receipt. In evaluating the exit application, the fact that
2294		-	no credits have been recaptured and that the rural fund has not
2295		-	received a notice of recapture that has not been cured pursuant to
2296		-	subsection E of Section 5 of this act shall be sufficient evidence
2297		-	to prove that the rural fund is eligible for exit. The Department
2298		-	shall not unreasonably deny an exit applic ation submitted under this
2299		-	section. If an exit application is denied, the notice shall include
2300		-	the reasons for the determination.
2301		-	SECTION 18. NEW LAW A new section of law to be co dified
2302		-	in the Oklahoma Statutes as Section 3937 of Title 68, unless there
2303		-	is created a duplication in n umbering, reads as follows:
2304		-	The Department shall accept no new applications for tax credits
2305		-	authorized under this act after December 1, 2032.
2306		-	SECTION 19. This act shall become effective November 1, 2022.
2307		-
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2310		-	3
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2317		-	10
2318		-	11
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2321		-	14
2322		-	15
2323		-	16
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2327		-	20
2328		-	21
2329		-	22
2330		-	23
2331		-	24
2332		-
2333		-	Passed the Senate the 9th day of March, 2022.
2334		-
2335		-
2336		-
2337		-	Presiding Officer of the Senate
2338		-
2339		-
2340		-	Passed the House of Representatives the _ ___ day of __________,
2341		-	2022.
2342		-
2343		-
2344		-
2345		-	Presiding Officer of the House
2346		-	of Representatives
2347		-
2348		-
	1520	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	1521	+	04/21/2022 - DO PASS, As Amended.