Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1782 Compare Versions

Version 1 (Old)

Version 2 (New)

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	3	+	ENGR. S. B. NO. 1782 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	2nd Session of the 58th Legislature (2022)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 1782 By: Rader and Kirt of the
37	30		Senate
38	31
39	32		and
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41	34		Talley of the House
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45	38		An Act relating to incentive payments; amendin g 68
46	39		O.S. 2021, Sections 3604 and 3604.1, which relate to
47	40		the Oklahoma Quality Jobs Program; modifying period
48	41		of incentive payments for applications submitted
49	42		after certain date; modifying period for e ffective
50	43		date of agreement; modifying wage requirement for
51	44		certain applicants; requiring the establishment to
52	45		meet wage requirements at certain period of the
53	46		agreement; limiting maximum wage requ irement to
54	47		certain period; updating statutory reference; and
55	48		providing an effective date .
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61	54		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
62	55		SECTION 1. AMENDATORY 68 O.S. 2021, Section 3604, is
63	56		amended to read as follo ws:
64	57		Section 3604. A. Except as otherwise provided in subsection I
65	58		or subsection L of this section, an establ ishment which meets the
66	59		qualifications specified in the Oklahoma Quality Jobs Program Act
67	60		may receive quarterly incentive payments for a ten-year period from
68	61		the Oklahoma Tax Commission pursuant to the provis ions of the
	62	+	Oklahoma Quality Jobs Program Act; provide d, such an establish ment
	63	+	defined or classified in the NAICS Manual und er U.S. Industry No.
	64	+	711211 (2007 version) may receive quarterly incentive payments for a
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96		-	Oklahoma Quality Jobs Program Act; provide d, such an establishment
97		-	defined or classified in the NAICS Manual und er U.S. Industry No.
98		-	711211 (2007 version) may receive quarterly incentive payments for a
99	91		fifteen-year period. The amount of such p ayments shall be equal to
100	92		the net benefit rate multipl ied by the actual gr oss payroll of new
101	93		direct jobs for a calendar quar ter as verified by the Oklaho ma
102	94		Employment Security Commission.
103	95		B. In order to receive incentive payments, an establishment
104	96		shall apply to the Oklahoma Department of Commerce. The appl ication
105	97		shall be on a form prescribed by the Department and shall cont ain
106	98		such information as may b e required by the Department to determine
107	99		if the applicant is qualified. An establishment may apply fo r an
108	100		effective date for a project, which shall not be more than twenty-
109	101		four (24) months twelve (12) months from the date the application is
110	102		submitted to the Department.
111	103		C. Except as otherwise provided by subsection D or E of this
112	104		section, in order to qualify to receive such payments, the
113	105		establishment applyi ng shall be required to:
114	106		1. Be engaged in a basic industry;
115	107		2. Have an annual gross payroll for new direct jobs projected
116	108		by the Department to equal or exceed Two Million Five Hundred
117	109		Thousand Dollars ($2,500,000.00) wi thin three (3) years of the first
118	110		complete calendar quarter following the start date; and
	111	+	3. Have a number of full-time-equivalent employees subject to
	112	+	the tax imposed by Section 2355 of this title and working an annual
	113	+	average of thirty (30) or more hour s per week in new direct jobs
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120		-	SB1782 HFLR Page 3
121		-	BOLD FACE denotes Committee Amendments. 1
	115	+	ENGR. S. B. NO. 1782 Page 3 1
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146		-	3. Have a number of full-time-equivalent employees subject to
147		-	the tax imposed by Section 2355 of this title and working an annual
148		-	average of thirty (30) or more hour s per week in new direct jobs
149	140		located in this state equal to or in excess of eighty percent (80%)
150	141		of the total number of new direct jobs.
151	142		D. In order to qualify to receive incentive payments as
152	143		authorized by the Oklahoma Quality Jobs Program Act, an
153	144		establishment engaged in an activity des cribed under:
154	145		1. Industry Group Nos. 3111 through 3119 of the NAICS Manual
155	146		shall be required to:
156	147		a. have an annual gross payroll for new direct jobs
157	148		projected by the Department to equal or exceed One
158	149		Million Five Hundred Thousand Dollars ($1,500,000.00)
159	150		within three (3) years of the first complete calendar
160	151		quarter following the start date and make, or which
161	152		will make within one (1) year, at least seventy-five
162	153		percent (75%) of its total sales, as determined by the
163	154		Incentive Approval Committee pursuant to th e
164	155		provisions of subsection B of Section 3603 of this
165	156		title, to out-of-state customers or buyers, to in-
166	157		state customers or buyers if the product or service is
167	158		resold by the purchaser to an out -of-state customer or
168	159		buyer for ultimate use, or to the federal g overnment,
169	160		unless the annual gross payroll equals or exceeds Two
	161	+	Million Five Hundred Thousand Dollars ($2,500,000.00)
	162	+	in which case the requirements for purchase of output
	163	+	provided by this subparagraph shall not apply, a nd
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172		-	BOLD FACE denotes Committee Amendments. 1
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197		-	Million Five Hundred Thousand Dollars ($2,500,000.00)
198		-	in which case the requirements for purchase of output
199		-	provided by this subparagraph shall not apply, a nd
200	190		b. have a number of full -time-equivalent employees
201	191		working an average of thirty (30) or more hours per
202	192		week in new direct jobs equal to or in excess of
203	193		eighty percent (80%) of the total number of new direct
204	194		jobs; and
205	195		2. Division (4) of subparagraph a o f paragraph 1 of subsection
206	196		A of Section 3603 of this title, shall be required to:
207	197		a. have an annual gross payroll for new direct jobs
208	198		projected by the Department to equal or exceed One
209	199		Million Five Hundred Thousand Dollars ($1,500,000.00)
210	200		within three (3) years o f the first complete calend ar
211	201		quarter following the start date, and
212	202		b. have a number of full -time-equivalent employees
213	203		working an average of thirty (30) or more hours per
214	204		week in new direct jobs equal to or in excess of
215	205		eighty percent (80%) of the total nu mber of new direct
216	206		jobs.
217	207		E. 1. An establishment which locates its principal business
218	208		activity within a site consisting of at least ten (10) acres which:
219	209		a. is a federal Superfund removal site,
	210	+	b. is listed on the National Priorities List established
	211	+	under Section 9605 of Title 42 of the United States
	212	+	Code,
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221		-	SB1782 HFLR Page 5
222		-	BOLD FACE denotes Committee Amendments. 1
	214	+	ENGR. S. B. NO. 1782 Page 5 1
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247		-	b. is listed on the National Priorities List established
248		-	under Section 9605 of Title 42 of the United States
249		-	Code,
250	239		c. has been formally deferred to the state i n lieu of
251	240		listing on the National Priorities List, or
252	241		d. has been determined by the Department of Environmental
253	242		Quality to be contaminated by any substance re gulated
254	243		by a federal or state statute governing environmental
255	244		conditions for real property pursuan t to an order of
256	245		the Department of Environmental Quality,
257	246		shall qualify for incentive payments irrespective of its actual
258	247		gross payroll or the number of full -time-equivalent employees
259	248		engaged in new direct jobs.
260	249		2. In order to qualify for the incentive pa yments pursuant to
261	250		this subsection, the establishment shall conduct the activity
262	251		resulting in at least fifty percent (50%) of its Oklahoma taxable
263	252		income or adjusted gross income, as de termined under Section 2358 of
264	253		this title, whether from the sale of pro ducts or services or both
265	254		products and services, at the physical location which has been
266	255		determined not to comply with the federal or state statutes
267	256		described in this subsection with re spect to environmental
268	257		conditions for real property. The establishment shall be subject to
269	258		all other requirements of the Oklahoma Quality Jobs Program Act
270	259		other than the exemptions provided by this subsection.
	260	+	3. In order to qualify for the incentive pay ments pursuant to
	261	+	this subsection, the entity shall obtain from the Dep artment of
	262	+	Environmental Quality a letter of concurrence that:
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272		-	SB1782 HFLR Page 6
273		-	BOLD FACE denotes Committee Amendments. 1
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298		-	3. In order to qualify for the incentive pay ments pursuant to
299		-	this subsection, the entity shall obtain from the Dep artment of
300		-	Environmental Quality a letter of concurrence that:
301	289		a. the site designated by the entity does meet one or
302	290		more of the requirements listed in paragr aph 1 of this
303	291		subsection, and
304	292		b. the site is being or has been remediated to a level
305	293		which is consistent with the intended use of the
306	294		property.
307	295		In making its determination, the Department of Environmental
308	296		Quality may rely on existing data and information a vailable to it,
309	297		but may also require the applying entity to provide additional data
310	298		and information as necessary.
311	299		4. If authorized by the Department of Environmental Quality
312	300		pursuant to paragraph 3 of this subsection, the entity may utilize a
313	301		remediated portion of the property for its intended purpose prior to
314	302		remediation of the remainder of the site, and shall qualify for
315	303		incentive payments based on employment associated with the portion
316	304		of the site.
317	305		F. Except as otherwise provided by subsection G of thi s
318	306		section, for applications submitted on and after June 4, 2003, in
319	307		order to qualify to receive in centive payments as authoriz ed by the
320	308		Oklahoma Quality Jobs Program Act, in addition to other
321	309		qualifications specified herein, an establishment shall be requi red,
	310	+	both at the effective date of the agreement and the beginning of the
	311	+	sixth year of the agreement, to pay new direct jobs an average
	312	+	annualized wage which equals or exceeds:
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323		-	SB1782 HFLR Page 7
324		-	BOLD FACE denotes Committee Amendments. 1
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349		-	both at the effective date of the agreement and the beginning of the
350		-	sixth year of the agreement, to pay new direct jobs an average
351		-	annualized wage which equals or exceeds:
352	339		1. One hundred ten percent (110%) of the average cou nty wage as
353	340		determined by the Department of Commerce based on the most recent
354	341		U.S. Department of Commerce data for the coun ty in which the new
355	342		direct jobs are located. For purposes of this paragraph, health
356	343		care premiums paid by the applicant for individu als in new direct
357	344		jobs shall be included in the annualized wage; or
358	345		2. One hundred percent (100%) of the average county wa ge as
359	346		that percentage is det ermined by the Department of Commerce based
360	347		upon the most recent U.S. Department of Commerce data for the county
361	348		in which the new jobs are located. For purposes of this paragraph,
362	349		health care premiums paid by the applicant for individuals in new
363	350		direct jobs shall not be included in the annualized wage.
364	351		Provided, no average wage requirement shall exceed Twent y-five
365	352		Thousand Dollars ($25,000.00), in any county, for applications
366	353		received before January 1, 2023. This maximum wage threshold shall
367	354		be indexed and modified from time to time based on the latest
368	355		Consumer Price Index year -to-date percent change release as of the
369	356		date of the annual average county wage data release from the Bu reau
370	357		of Economic Analysis of the U.S. Department of Commerce.
371	358		G. 1. As used in this subsection, “opportunity zone” means one
372	359		or more census tracts in which, according to the most recent Federal
	360	+	Decennial Census, at least thirty pe rcent (30%) of the resid ents
	361	+	have annual gross household incomes from all sources below the
	362	+	poverty guidelines established by the U.S. Department of Health and
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374		-	SB1782 HFLR Page 8
375		-	BOLD FACE denotes Committee Amendments. 1
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400		-	Decennial Census, at least thirty pe rcent (30%) of the residents
401		-	have annual gross household incomes from all sources below the
402		-	poverty guidelines established by the U.S. Department of Health and
403	389		Human Services. An establishment which is otherwise qualified to
404	390		receive incentive payments and which locates its princ ipal business
405	391		activity in an opportunity zone shall not be subject to the
406	392		requirements of subsection F of this section.
407	393		2. As used in this subsection:
408	394		a. “negative economic event ” means:
409	395		(1) a man-made disaster or natural disaster as
410	396		defined in Section 68 3.3 of Title 63 of the
411	397		Oklahoma Statutes, resulting in the loss of a
412	398		significant number of jobs within a particular
413	399		county of this state, or
414	400		(2) an economic circumstance in which a significant
415	401		number of jobs within a particular coun ty of this
416	402		state have been lost due to an establishment
417	403		changing its structure, consolidating with
418	404		another establishment, closing or moving all or
419	405		part of its operations out of this state, and
420	406		b. “significant number of jobs ” means Local Area
421	407		Unemployment Statistics (LAUS) data, a s determined by
422	408		the Bureau of Labor Statistics, for a county which are
423	409		equal to or in excess of five percent (5%) of the
	410	+	total amount of Local Area Unemployment Statistics
	411	+	(LAUS) data for that county for the calendar year, or
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425		-	SB1782 HFLR Page 9
426		-	BOLD FACE denotes Committee Amendments. 1
	413	+	ENGR. S. B. NO. 1782 Page 9 1
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451		-	total amount of Local Area Unemployment Statistics
452		-	(LAUS) data for that county for the calendar year, or
453	438		most recent twelve-month period in which employment is
454	439		measured, preceding the event.
455	440		An establishment which is otherwise qualified to receive
456	441		incentive payments and which locates in a county in which a negative
457	442		economic event has occurred within the eighteen -month period
458	443		preceding the start date shall not be subject to the requirements of
459	444		subsection F of this section; provided, an establishment shall not
460	445		be eligible to receive incentive payments based upon a negative
461	446		economic event with respect to jobs that are transferred from one
462	447		county of this state to another.
463	448		H. The Department shall determine if the applicant is qualified
464	449		to receive incentive payments.
465	450		I. If the applicant is determined to be qualified by the
466	451		Department and is not subject to the provisions of subparagraph d of
467	452		paragraph 7 of subsection A of Section 3603 of this title, the
468	453		Department shall conduct a cost/benefit analysis to determine the
469	454		estimated net direct state benefits and the net benefit rate
470	455		applicable for a ten-year period beginning with the first complete
471	456		calendar quarter following the start date and to estimate the amount
472	457		of gross payroll for a ten-year period beginning with the first
473	458		complete calendar quarter following the start date or for a fifteen -
474	459		year period for an establishment defined or classified in the NAICS
	460	+	Manual under U.S. Industry No. 711211 (2007 version). In conducting
	461	+	such cost/benefit analysis, the Department shall consider
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477		-	BOLD FACE denotes Committee Amendments. 1
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502		-	Manual under U.S. Industry No. 711211 (2007 version). In conducting
503		-	such cost/benefit analysis, the Department shall consider
504	488		quantitative factors, such as the anticipated level of new tax
505	489		revenues to the state along wit h the added cost to the state of
506	490		providing services, and such other criteria as deemed appropriate by
507	491		the Department. In no event shall incentive payments, cumulatively,
508	492		exceed the estimated net direct state benefits, except for
509	493		applicants subject to the provisions of subparagra ph d of paragraph
510	494		7 of subsection A of Section 3603 of this title.
511	495		J. Upon approval of such an application, the Department shall
512	496		notify the Tax Commission and shall provide it with a copy of the
513	497		contract and the results of the cost /benefit analysis. The Tax
514	498		Commission may require the qualified establishment to submit such
515	499		additional information as may be necessary to administer the
516	500		provisions of the Oklahoma Quality Jobs Program Act. The approved
517	501		establishment shall file quarterly claims with the Tax Com mission
518	502		and shall continue to file such quarterly claims during the ten-year
519	503		incentive period to show its continued eligibility for incentive
520	504		payments, as provided in Section 3606 of this title, or until it is
521	505		no longer qualified to receive incentive payme nts. The
522	506		establishment may be audited by the Tax Commission to verify such
523	507		eligibility. Once the establishment is approved, an agreement shall
524	508		be deemed to exist between the establishment and the State of
525	509		Oklahoma, requiring the continued incentive payme nt to be made as
	510	+	long as the establishment retains its eligibility as defined in and
	511	+	established pursuant to this section and Sections 3603 and 3606 of
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553		-	long as the establishment retains its eligibility as defined in and
554		-	established pursuant to this section and Sections 3603 and 3606 of
555	538		this title and within the limitations contained in the Oklahoma
556	539		Quality Jobs Program Act, which existed at the time of such
557	540		approval. An establishment described in this subsection shall be
558	541		required to repay all incentive payments received under the Oklahoma
559	542		Quality Jobs Program Act if the establishment is determined by the
560	543		Oklahoma Tax Commission to no long er have business operations in the
561	544		state within three (3) years from the beginning of the calendar
562	545		quarter for which the first incentive payment claim is filed.
563	546		K. A municipality with a population of less than one hundred
564	547		thousand (100,000) persons in whi ch an establishment eligible to
565	548		receive quarterly incentive payments pursuant to the provisions of
566	549		this section is located may file a claim with the Tax Commission for
567	550		up to twenty-five percent (25%) of the amount of such pa yment. The
568	551		amount of such claim shall not exceed amounts paid by the
569	552		municipality for direct costs of municipal infrastructure
570	553		improvements to provide water and sewer service to the
571	554		establishment. Such claim shall not be approved by the Tax
572	555		Commission unless the municipality and the es tablishment have
573	556		entered into a written agreement for such claims to be filed by the
574	557		municipality prior to submission of the application of the
575	558		establishment pursuant to the provisions of this section. If such
576	559		claim is approved, the amount of the payment to the establishment
	560	+	made pursuant to the provisions of Section 3606 of this title shall
	561	+	be reduced by the amount of the approved claim by the municipality
577	562
578		-	SB1782 HFLR Page 12
579		-	BOLD FACE denotes Committee Amendments. 1
	563	+	ENGR. S. B. NO. 1782 Page 12 1
580	564		2
581	565		3
582	566		4
583	567		5
584	568		6
585	569		7
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587	571		9
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589	573		11
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591	575		13
592	576		14
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594	578		16
595	579		17
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597	581		19
598	582		20
599	583		21
600	584		22
601	585		23
602	586		24
603	587
604		-	made pursuant to the provisions of Section 3606 of this title shall
605		-	be reduced by the amount of the approved claim by the municipality
606	588		and the Tax Commission shall issue a warrant to the municipality in
607	589		the amount of the approved claim in the same manner as warrants are
608	590		issued to qualifying establishments.
609	591		L. For any contract executed by an establishment on or after
610	592		the effective date of this act August 2, 2018, five percent (5%) of
611	593		the quarterly incenti ve payment amount shall be trans ferred by the
612	594		Oklahoma Tax Commission to the Oklahoma Quick Action Closing Fund.
613	595		SECTION 2. AMENDATORY 68 O.S. 2021, Section 3604.1, is
614	596		amended to read as follows:
615	597		Section 3604.1. A. A qualified federal contractor may receive
616	598		quarterly incentive payments for renewable ten-year periods from the
617	599		Oklahoma Tax Commission pursuant to the provisions of the Oklahoma
618	600		Quality Jobs Program Act and the provisions of this section.
619	601		B. The amount of such payments shall b e equal to a net benefit
620	602		rate of not less than twenty-five hundredths of one percent (0.25%),
621	603		but not greater than two percent (2%), multiplied by the total
622	604		qualified labor hour s worked by employees of the federal contractor
623	605		or employees of a qualified fed eral subcontractor, or both, pursuant
624	606		to a qualified federal contract f or a calendar quarter as ver ified
625	607		by the Oklahoma Employment Security Commission and certified by a
626	608		qualified federal contractor verifier. The net benefit rate for a
627	609		qualified federal contractor shall be scaled to annual
	610	+	subcontracting goals that account for both total qualified
	611	+	subcontract labor hours and the ratio of qualified subcontract labor
628	612
629		-	SB1782 HFLR Page 13
630		-	BOLD FACE denotes Committee Amendments. 1
	613	+	ENGR. S. B. NO. 1782 Page 13 1
631	614		2
632	615		3
633	616		4
634	617		5
635	618		6
636	619		7
637	620		8
638	621		9
639	622		10
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641	624		12
642	625		13
643	626		14
644	627		15
645	628		16
646	629		17
647	630		18
648	631		19
649	632		20
650	633		21
651	634		22
652	635		23
653	636		24
654	637
655		-	subcontracting goals that account for both total qualified
656		-	subcontract labor hours and the ratio of qualified subcontract labor
657	638		hours to total qualified labor hours. Unless limited by the
658	639		cost/benefit analysis, the net benefit rate shall:
659	640		1. Not exceed twenty-five hundredths of one perce nt (0.25%)
660	641		when annual qualified subcontract labor hours are less than Two
661	642		Hundred Thousand Dollars ($200, 000.00) or when annual qualified
662	643		subcontract labor is less than one percent (1% ) of the annual total
663	644		qualified labor hours claimed;
664	645		2. Not be less than five-tenths of one percen t (0.5%) when
665	646		subcontract goals are met with a minimum of Two Hundred Thousand
666	647		Dollars ($200,000.00) of annual total qualified subcontractor labor
667	648		hours and these hours are a minimum of one perc ent (1%) of the
668	649		annual total qualified hours claimed;
669	650		3. Not be less than one percent (1%) when subcontract goals are
670	651		met with a minimum of One Million Dollars ($1,000,000.00) of annual
671	652		total qualified subcontractor la bor hours and when these hours
672	653		represent a minimum of five percent (5%) of the annual total
673	654		qualified hours claimed;
674	655		4. Not be less than one and five-tenths percent (1.5%) when
675	656		subcontract goals are met with a minimum of Two Million Dollars
676	657		($2,000,000.00) of annual total qualified subcontra ctor labor hours
677	658		and these hours are a minimum of ten percent (10%) of the annual
678	659		total qualified hours claimed; and
	660	+	5. Not be less than tw o percent (2.0%) when subcontract goals
	661	+	are met with a minimum of Four Million Dollars ($4,000,000.00) of
679	662
680		-	SB1782 HFLR Page 14
681		-	BOLD FACE denotes Committee Amendments. 1
	663	+	ENGR. S. B. NO. 1782 Page 14 1
682	664		2
683	665		3
684	666		4
685	667		5
686	668		6
687	669		7
688	670		8
689	671		9
690	672		10
691	673		11
692	674		12
693	675		13
694	676		14
695	677		15
696	678		16
697	679		17
698	680		18
699	681		19
700	682		20
701	683		21
702	684		22
703	685		23
704	686		24
705	687
706		-	5. Not be less than tw o percent (2.0%) when subcontract goals
707		-	are met with a minimum of Four Million Dollars ($4,000,000.00) of
708	688		annual total qualified subcontractor labor h ours and these hours are
709	689		a minimum of twenty percent (20%) of the annual total qualified
710	690		hours claimed.
711	691		C. In order to receive incentive payments, a qualified federal
712	692		contractor shall apply to the Oklahoma Department of C ommerce within
713	693		one hundred eighty (180) days following the dat e of the award of a
714	694		qualified federal contract or award of a new qualified sub contract
715	695		under an existing qualified federal contract. The application shall
716	696		be on a form prescribed by the Departm ent and shall contain such
717	697		information as may be required by t he Department to determine if the
718	698		applicant is qualified. Once qualified by t he Department, the
719	699		applicant shall submit qualified federal contracts to the fe deral
720	700		contract verifier. The federal contract verifier shall establish
721	701		with the applicant an infor mation system(s) or contract(s) as may be
722	702		required to certify the total qualif ied labor hours, qualified labor
723	703		rates, and reimbursement through the qualified federal contract. A
724	704		qualified federal contractor may apply for an eff ective date for a
725	705		project, which shall not be more than twenty-four (24) months twelve
726	706		(12) months from the date the applicat ion is submitted to the
727	707		Department. No state agency shall b e required to make any payment
728	708		to a qualified federal contract verifier for any information needed
729	709		by the agency to perform any duty imposed upon it pursuant to the
	710	+	provisions of Section 3601 et s eq. of this title. All costs for the
	711	+	federal contract verif ier shall be reimbursed through value -added
730	712
731		-	SB1782 HFLR Page 15
732		-	BOLD FACE denotes Committee Amendments. 1
	713	+	ENGR. S. B. NO. 1782 Page 15 1
733	714		2
734	715		3
735	716		4
736	717		5
737	718		6
738	719		7
739	720		8
740	721		9
741	722		10
742	723		11
743	724		12
744	725		13
745	726		14
746	727		15
747	728		16
748	729		17
749	730		18
750	731		19
751	732		20
752	733		21
753	734		22
754	735		23
755	736		24
756	737
757		-	provisions of Section 3601 et s eq. of this title. All costs for the
758		-	federal contract verif ier shall be reimbursed through value -added
759	738		services on the qualified f ederal contract or other mec hanisms
760	739		agreed to by the federal contractor verifier and the federal
761	740		contract performers.
762	741		D. In order to qualify to receive incentive payments as
763	742		authorized by the Oklahoma Quality Jobs Program Act, in addition to
764	743		other qualifications specified herein, a qualified federal
765	744		contractor shall be required to pay direct jobs an average
766	745		annualized wage, both at the effective date of the agreement and the
767	746		beginning of the sixth year of the agreement, which equals or
768	747		exceeds:
769	748		1. One hundred ten percent (110%) of t he average county wage as
770	749		determined by the Department of Commerce based on the most recent
771	750		U.S. Department of Commerce data for th e county in which the new
772	751		direct jobs are located. For purpose s of this paragraph, health
773	752		care premiums paid by the applican t for individuals in new direct
774	753		jobs shall be included in the annualized wage; or
775	754		2. One hundred percent (100%) of the average cou nty wage as
776	755		that percentage is determined by the Department of Commerce based
777	756		upon the most recent U.S. Department of Commerc e data for the county
778	757		in which the new jobs are located. For purposes of this paragraph,
779	758		health care premiums paid by the applican t for individuals in new
780	759		direct jobs shall not be included in t he annualized wage.
	760	+	Provided, no average wage requirement shal l exceed Twenty-nine
	761	+	Thousand Four Hundred Nine Dollars ($29,409.00), in any county , for
781	762
782		-	SB1782 HFLR Page 16
783		-	BOLD FACE denotes Committee Amendments. 1
	763	+	ENGR. S. B. NO. 1782 Page 16 1
784	764		2
785	765		3
786	766		4
787	767		5
788	768		6
789	769		7
790	770		8
791	771		9
792	772		10
793	773		11
794	774		12
795	775		13
796	776		14
797	777		15
798	778		16
799	779		17
800	780		18
801	781		19
802	782		20
803	783		21
804	784		22
805	785		23
806	786		24
807	787
808		-	Provided, no average wage requirement shal l exceed Twenty-nine
809		-	Thousand Four Hundred Nine Dollars ($29,409.00), in any county , for
810	788		applications received before January 1, 20 23. This maximum wage
811	789		threshold shall be indexed and modified from time to time based on
812	790		the latest Consumer Price Index year-to-date percent change release
813	791		as of the date of the annual average county wage data release from
814	792		the Bureau of Economic Analysis of the U.S. Department of Commerce.
815	793		3. For qualified subcontr actor work, the qualified federal
816	794		contractor shall have a minimum average qualified labor rate
817	795		requirement paid to the subcontractor of Thirty -one Dollars ($31.00)
818	796		per hour, in any county. Thi s maximum wage threshold s hall be
819	797		indexed and modified from tim e to time based on the latest Consumer
820	798		Price Index year-to-date percent change release as of the date of
821	799		the annual average county wage data release from the Bureau of
822	800		Economic Analysis of the U.S. Department of Commerc e.
823	801		E. The Department shall determine if the applicant is qualified
824	802		to receive incentive payments using information supplied to the
825	803		Department by the qualified federal contractor verifier. The NAICS
826	804		code or codes under which the federal government awarded the
827	805		qualified federal contract shall be used to determine the basic
828	806		industry for a qualified federal contractor. For federal contracts
829	807		awarded under NAICS codes not within the definition of basic
830	808		industry pursuant to paragraph 1 of subsection A of Sectio n 3603 of
831	809		this title, the Department of Commerce, with the federal contract
	810	+	verifier, may evaluate and utilize individual statement of work
	811	+	items that would qualify within a basic industry definition.
832	812
833		-	SB1782 HFLR Page 17
834		-	BOLD FACE denotes Committee Amendments. 1
	813	+	ENGR. S. B. NO. 1782 Page 17 1
835	814		2
836	815		3
837	816		4
838	817		5
839	818		6
840	819		7
841	820		8
842	821		9
843	822		10
844	823		11
845	824		12
846	825		13
847	826		14
848	827		15
849	828		16
850	829		17
851	830		18
852	831		19
853	832		20
854	833		21
855	834		22
856	835		23
857	836		24
858	837
859		-	verifier, may evaluate and utilize individual statement of work
860		-	items that would qualify within a basic industry definition.
861	838		F. If the applicant is deter mined to be qualified by t he
862	839		Department, the Department shall c onduct a cost/benefit analysis to
863	840		determine the estimated net direct state benefits and the net
864	841		benefit rate, as provided by subsection B of this section,
865	842		applicable for a ten-year period beginning with the first comple te
866	843		calendar quarter following the sta rt date and to estimate the amount
867	844		of gross payroll and total qualified labor hours for a ten-year
868	845		period beginning with th e first complete calendar quarter following
869	846		the start date. In conducting such cost/benefit ana lysis, the
870	847		Department shall consider quantitative factors, such as the
871	848		anticipated level of new tax revenues to the state along with the
872	849		added cost to the state of providing services, and such other
873	850		criteria as deemed appropriate by the Department. In no event shall
874	851		incentive payments, cumul atively, exceed the estimated net direct
875	852		state benefits. Using this net cost/benefit analysis model, the
876	853		Department may establish the renewable ten-year contract with a
877	854		qualified federal contractor at the entity level to encompass any
878	855		current or future qu alified federal contracts that meet the
879	856		cost/benefit analysis metrics as determined by the federal
880	857		contractor verifier and confirmed by the Department.
881	858		G. Upon approval of such an application, the Department shall
882	859		notify the Tax Commission and shall provi de it with a copy of the
	860	+	contract that has been cosigned by the federal contractor verifier
	861	+	and the results of the cost/benefit analysis. The Tax Commission
883	862
884		-	SB1782 HFLR Page 18
885		-	BOLD FACE denotes Committee Amendments. 1
	863	+	ENGR. S. B. NO. 1782 Page 18 1
886	864		2
887	865		3
888	866		4
889	867		5
890	868		6
891	869		7
892	870		8
893	871		9
894	872		10
895	873		11
896	874		12
897	875		13
898	876		14
899	877		15
900	878		16
901	879		17
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903	881		19
904	882		20
905	883		21
906	884		22
907	885		23
908	886		24
909	887
910		-	contract that has been cosigned by the federal contractor verifier
911		-	and the results of the cost/benefit analysis. The Tax Commission
912	888		may require the qualified federal contractor, federal contrac t
913	889		verifier, and qualified subcontract ors to submit such additional
914	890		information as may be necessary to administer the provisions of the
915	891		Oklahoma Quality Jobs Program Act. The approved qualified federal
916	892		contractor shall file quarterly claims with the Tax Co mmission and
917	893		shall continue to file s uch quarterly claims during the ten-year
918	894		incentive period to show its continued eligibility for incentive
919	895		payments, as provided in Section 3606 of this title, or until it is
920	896		no longer qualified to receive incentive paym ents. The qualified
921	897		federal contractor may be audited by the Tax Commission to verify
922	898		such eligibility. Once the qualified federal contractor is
923	899		approved, an agreement shall be deemed to exist between the
924	900		qualified federal contractor and the State of Okl ahoma, requiring
925	901		the continued incent ive payment to be made as long as the qualified
926	902		federal contractor retains its eligibility as defined in and
927	903		established pursuant to this section and Sections 3603 and 3606 of
928	904		this title and within the limitations conta ined in the Oklahoma
929	905		Quality Jobs Program Act, which existed at the time of such
930	906		approval.
931	907		H. For qualified federal contracts with periods of performance
932	908		exceeding two (2) years, if the actual annual verified gross
933	909		qualified labor hours for four (4) conse cutive calendar quarters
	910	+	does not equal or exceed Two Million Five Hundred Thousand Dollars
	911	+	($2,500,000.00) within three (3) years of the start date, or does
934	912
935		-	SB1782 HFLR Page 19
936		-	BOLD FACE denotes Committee Amendments. 1
	913	+	ENGR. S. B. NO. 1782 Page 19 1
937	914		2
938	915		3
939	916		4
940	917		5
941	918		6
942	919		7
943	920		8
944	921		9
945	922		10
946	923		11
947	924		12
948	925		13
949	926		14
950	927		15
951	928		16
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956	933		21
957	934		22
958	935		23
959	936		24
960	937
961		-	does not equal or exceed Two Million Five Hundred Thousand Dollars
962		-	($2,500,000.00) within three (3) years of the start date, or does
963	938		not equal or exceed actual annual gross qualified labor hours of Two
964	939		Million Five Hundred Thousand Dollars ($2,500,000.00) at any other
965	940		time during the ten-year period after the start date, the incentive
966	941		payments shall not be made and shall not be resumed until such time
967	942		as the actual annual qualified labor hours exceed Two Million Five
968	943		Hundred Thousand Dollars ($2,500,000.00).
969	944		I. If the average annualized wage or minimum average qualified
970	945		labor rate required by subsection H of this section is not met
971	946		during any calendar quarter, the incentive payments shall not be
972	947		made and shall not be resumed until s uch time as such requirements
973	948		are met.
974	949		J. Before approving a quarterly incentive payment for a
975	950		qualified federal contract, the federal contract verifier must first
976	951		determine through the Department that neither the qualified federal
977	952		contractor nor the subc ontractor are receiving incentiv e payments
978	953		under the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs
979	954		Act, the 21st Century Quality Jobs Incentive Act or the Former
980	955		Military Facility Development Act for the performance of the same
981	956		such services under the qualified federal contr act and is not
982	957		qualified for approval of an application for incentive payments
983	958		under the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs
984	959		Act, the 21st Century Quality Jobs Incentive Act or the Former
	960	+	Military Facility Development Act for the per formance of the same
	961	+	such services under the qualified federal contract. If the
985	962
986		-	SB1782 HFLR Page 20
987		-	BOLD FACE denotes Committee Amendments. 1
	963	+	ENGR. S. B. NO. 1782 Page 20 1
988	964		2
989	965		3
990	966		4
991	967		5
992	968		6
993	969		7
994	970		8
995	971		9
996	972		10
997	973		11
998	974		12
999	975		13
1000	976		14
1001	977		15
1002	978		16
1003	979		17
1004	980		18
1005	981		19
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1007	983		21
1008	984		22
1009	985		23
1010	986		24
1011	987
1012		-	Military Facility Development Act for the per formance of the same
1013		-	such services under the qualified federal contract. If the
1014	988		qualified federal contractor or the subcontractor are receiving or
1015	989		have an approved application for incentive payments under the
1016	990		Oklahoma Quality Jobs Program Act, the Saving Quality Jobs Act, the
1017	991		21st Century Quality Jobs Incentive Act or the Former Military
1018	992		Facility Development Act for the performance of the same such
1019	993		services under the qualified federal contract, each may choose to
1020	994		defer in part or in entirety the other ince ntives for the qualified
1021	995		federal contractor to receive the incentives pursuant to subsection
1022	996		B of this section. The federal contract verifier shall confirm any
1023	997		deferrals and ensure the total for all quality jobs incentive
1024	998		payments on any individual does n ot exceed the total net benefit to
1025	999		the state. Should neither the federal contractor nor the
1026	1000		subcontractor defer in part or in entirety their incentive payments
1027	1001		such that the total for all Quality Jobs incentive payments exc eeds
1028	1002		the total net benefit to th e state, the priority for incentive
1029	1003		payments shall go to the entity with the earliest recognized start
1030	1004		date indentified identified within the current Department of
1031	1005		Commerce Quality Jobs contract.
1032	1006		SECTION 3. This act shall become effective November 1, 2022.
1033	1007
1034		-	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
1035		-	04/06/2022 - DO PASS.
	1008	+	ENGR. S. B. NO. 1782 Page 21 1
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	1032	+
	1033	+	Passed the Senate the 21st day of March, 2022.
	1034	+
	1035	+
	1036	+
	1037	+	Presiding Officer of the Senate
	1038	+
	1039	+
	1040	+	Passed the House of Representatives the ____ day of __________,
	1041	+	2022.
	1042	+
	1043	+
	1044	+
	1045	+	Presiding Officer of the House
	1046	+	of Representatives
	1047	+