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ENGROSSED SENATE
BILL NO. 422 By: Simpson of the Senate
and
Burns of the House
An Act relating to the Agriculture Enhancement and
Diversification Program; amending 2 O.S. 2011,
Sections 5-3.2, as last amended by Section 1, Chapter
123, O.S.L. 2015 and 5-3.4, as amended by Section 3,
Chapter 123, O.S.L. 2015 (2 O.S. Supp. 2020, Sections
5-3.2 and 5-3.4), which relate to the purpose and
categories of the program, an d grants and loan
criteria; removing purpose; modifying and removing
categories; removing authorization for matching
funds; removing and modifying prefer ences and
exclusions; requiring nondisclosure pursuant to the
Oklahoma Open Records Act; removing authorization for
executive sessions by the Board under certain
circumstances; exempting certain advisory meeting
from the Oklahoma Open Meeting Act; updating
statutory language; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 2 O.S. 2011, Section 5-3.2, as
last amended by Section 1, Chapter 123, O.S.L. 201 5 (2 O.S. Supp.
2020, Section 5-3.2), is amended to read as follows:
Section 5-3.2. A. The State Board of Agricu lture is hereby
authorized to establish and administer the Oklahoma A griculture
Enhancement and Diversification Program.
B. The purpose of the Oklahoma Agriculture Enhancement and
Diversification Program is to promote and encourage the interests of
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agriculture through the allocation of funds, by grant or loan, to
individuals, cooperatives and other agricultural entities to:
1. Develop new or expanded uses of agricultural products;
2. Develop new or expanded benefits of agricultural events;
3. Increase agricultural productivity;
4. 3. Provide added value to agricultural products or events;
5. 4. Benefit the agricultural producer; and
6. 5. Benefit the agricultural interests of Oklahoma this
state.
C. The Program shall consist of the following categori es:
1. Cooperative marketing Value-added agriculture grants and
loans for entities or individuals intending to work together to
develop or establish production, processing or marketing of
agricultural products. The purpose of this category is to provide
funding for promoting productivity, providing added value to
agricultural products, stimulating and fostering agricultural
diversification and encouraging processing innovations;
2. Marketing and utilization grants and loans to assist in the
development or implementation of sound domestic or foreign marketing
plans for Oklahoma agricultural products, by-products, or new and
better uses for exis ting agricultural products through the financing
of marketing feasibility studies, business plans, and test
marketing;
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3. Farm diversification grants or loans for projects dealing
with the diversification of family farms or ranches to
nontraditional crops , livestock, agritourism, or on-farm, value-
added processing of agricultural commodities;
4. Basic and applied 3. Product development and research
grants and loans for agricultural business creation or expansion, or
research which will likely lead to a m arketable agricultural product
through the focusing of research efforts on uses and processing o f
Oklahoma agricultural products and by-products, including but not
limited to:
a. focused research which enhances the value of an
agricultural product or by -product,
b. feasibility studies, and
c. product development and test marketing costs, and
d. projects that are drive n by an entrepreneur or the
industry; and
5. 4. Agricultural event or events that benefit and further the
public interest in agricult ure; and
5. Veteran or young farmer grants or loans for veterans and
young farmers that are engaged or will be engaged in expansion or
creation of events that benefit and further the public in terest in
agriculture an agricultural business.
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D. The State Board of Agric ulture shall promulgate rules
governing the Oklahoma Agriculture Enhancement and Diversification
Program.
SECTION 2. AMENDATORY 2 O.S. 2011, Section 5 -3.4, as
amended by Section 3, Chapter 123, O.S.L. 2015 (2 O.S. Supp. 20 20,
Section 5-3.4), is amended to read as follows:
Section 5-3.4. A. The Oklahoma Department of Agriculture,
Food, and Forestry shall require eligible applicants to submit
information, forms and reports as are necessary to properly and
efficiently administer the Oklahoma Agriculture Enhancement and
Diversification Program.
B. Persons may apply to the Department for grant or loan funds
in accordance with rules promulgated by the State Boa rd of
Agriculture. Applications for grant or loan funds shall be approved
or denied by the Department in accordance with criteria promulgated
by the State Board of Agriculture pursuant to the Oklahoma
Agriculture Enhancement and Diversification Program.
C. The State Board of Agriculture may also allocate monies from
the fund to eligible applicants on a matching basis.
D. Grant or loan funds may be m ade available to eligible
applicants pursuant to evaluation by the Department based on the
following criteria:
1. Preference may be given to the applicants whose:
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a. industrial and nonfood production processes utilize
agricultural products,
b. food, feed and fiber products and uses are innovative
and add to the value of agricultural products,
c. applications demonstrate a high probability of job
creation and return-on-investment,
d. proposals feature research that is innovative as well
as commercially plau sible,
e. proposals demonstrate a high probability of rapid
commercialization,
f. projects demonstrate a sh ared commitment for funding
from other private or public so urces or from the
applicant,
g. proposals center efforts on nonurban locales,
h. principals are individuals, a group of individuals, an
individual on behalf of a group, or corporations which
meet the criteria set forth in Section 951 of Title 18
of the Oklahoma Statutes, to market a product or
formulate or implement a marketing plan for
agricultural products which have not been marketed
through existing marketing cooperatives produced or
processed in this state,
i. proposals contain the potential to create additional
income for the farm unit, and
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j. proposals provide for new and innovative plans for
marketing the product, and
k. proposals for agricultural events benefit the entire
state or a large geographic region of the state; and
2. Consideration shall not be given to ap plications for:
a. research or marketing plans which do not clearly meet
the stated objectives of the Oklahoma Agriculture
Enhancement and Diversification Act,
b. proposals which are aimed solely at business expansion
or creation without regard to agr icultural products
utilization, or
c. research or marketing plans that cannot reasonably be
expected to result in a viable commercial application,
or that are or have been duplicated by other research
efforts, or
d. proposals for agricultural events that do not result
in expansion of the event or encourage additional
public interest in the event.
E. D. 1. Any information submitted to or compiled by the
Department with respect to the ma rketing plans, financial
statements, trade secrets, research concepts, metho ds or products,
or any other proprietary information of persons, firms,
associations, partnerships, agencies, corporations, institutions of
higher education, nonprofit research ins titutions or other entities
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pursuant to the Oklahoma Agriculture Enhancement and Diversification
Program shall not be disclosed pursuant to the Oklah oma Open Records
Act or in public hearings and shall be kept confidential, except to
the extent that the pe rson or entity which provided such information
or which is the subject of su ch information consents to disclosu re.
2. Executive sessions may be held to discuss such materials if
deemed necessary by the Board In the event an independent advisory
group of reviewers are used to analyze and make recommendations for
projects for approval by the Boar d, any meetings of such advisory
groups shall be exempt from the Oklahoma Open Meeting Act .
SECTION 3. This act shall become effective November 1, 2021.
Passed the Senate the 4th day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2021.
Presiding Officer of the House
of Representatives