Oklahoma Senate Bill SB1859

Oklahoma 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/8/22
• Report Pass: 2/15/22
• Refer: 2/15/22

Caption

Quality Jobs Program Act; modifying net benefit rate for certain industry. Effective date.

Impact

One major change is the introduction of a net benefit rate that cannot exceed six percent for certain establishments, particularly those that create new jobs that pay well above the state average. This measure is designed to encourage higher-paying jobs while ensuring that the state does not overcommit its tax revenue in incentivizing businesses that do not deliver corresponding economic benefits. Additionally, the bill stipulates that municipalities of under 100,000 can claim a portion of incentive payments to offset infrastructure costs, aligning state and local goals towards enhancing economic development.

Summary

Senate Bill 1859 pertains to the Oklahoma Quality Jobs Program Act, aiming to amend various sections to clarify definitions and refine qualification requirements for certain industries. Notably, the bill introduces a net benefit rate limit for qualifying establishments, which serves to enhance the program's utility in attracting businesses that drive job creation within Oklahoma. By modifying the language and statutory references, the bill strives to create a streamlined process for industries to access these state benefits, particularly focusing on those that enhance local employment and economic growth.

Contention

While supporters argue that SB1859 will make the incentives more equitable and targeted towards worthwhile job creation, some have raised concerns that it could limit access to smaller businesses that do not meet the elevated net benefit criteria. Critics express worry that the focus on larger establishments may neglect the contributions of local enterprises, which are essential for the economic fabric of communities. The balance between effectively incentivizing substantial new jobs and maintaining support for smaller, existing businesses remains a point of contention in the legislative discussions.