| 3 | | - | SENATE FLOOR VERSION - SB385 SFLR Page 1 |
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| 4 | | - | (Bold face denotes Committee Amendments) 1 |
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| 28 | | - | |
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| 29 | | - | SENATE FLOOR VERSION |
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| 30 | | - | February 20, 2023 |
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| 31 | | - | AS AMENDED |
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| 32 | | - | |
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| 33 | | - | SENATE BILL NO. 385 By: Kirt |
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| 34 | | - | |
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| 35 | | - | |
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| 36 | | - | |
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| 37 | | - | |
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| 38 | | - | |
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| 39 | | - | [ incentive payments - Oklahoma Quality Jobs Program |
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| 40 | | - | - wage requirement - effective date ] |
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| 3 | + | |
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| 4 | + | Req. No. 1621 Page 1 1 |
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| 53 | + | STATE OF OKLAHOMA |
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| 54 | + | |
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| 55 | + | 1st Session of the 59th Legislature (2023) |
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| 56 | + | |
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| 57 | + | SENATE BILL 385 By: Kirt |
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| 58 | + | |
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| 59 | + | |
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| 60 | + | |
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| 61 | + | |
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| 62 | + | |
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| 63 | + | AS INTRODUCED |
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| 64 | + | |
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| 65 | + | An Act relating to incentive payments; amending 68 |
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| 66 | + | O.S. 2021, Sections 3603, 3604, and 3 604.1, which |
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| 67 | + | relate to the Oklahoma Quality Jobs Pr ogram; |
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| 68 | + | modifying wage requirement for establishments |
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| 69 | + | entering the Oklahoma Quality Jobs Program Act as the |
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| 70 | + | result of a change-in-control event for certain |
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| 71 | + | period; modifying wage requirement for certain |
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| 72 | + | applicants; limiting maximum wage requirement to |
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| 73 | + | certain period; clarifying statutory language; and |
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| 74 | + | providing an effective date . |
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| 41 | 75 | | |
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| 42 | 76 | | |
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| 43 | 77 | | |
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| 44 | 78 | | |
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| 45 | 79 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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| 46 | 80 | | SECTION 1. AMENDATORY 68 O.S. 2021, Se ction 3603, is |
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| 47 | 81 | | amended to read as follows: |
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| 48 | 82 | | Section 3603. A. As used in the Oklahoma Quality Jobs Program |
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| 49 | 83 | | Act: |
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| 50 | 84 | | 1. a. “Basic industry” means: |
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| 51 | 85 | | (1) those manufacturing activities defined or |
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| 52 | 86 | | classified in the NAICS Manua l under Industry |
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| 53 | 87 | | Sector Nos. 31, 32 an d 33, Industry Group No. |
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| 54 | 88 | | 5111 or Industry No. 11331, |
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| 86 | 144 | | (a) an establishment engaged t herein qualifies |
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| 87 | 145 | | as an exempt wholesale generator as defined |
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| 88 | 146 | | by 15 U.S.C., Section 79z -5a, |
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| 89 | 147 | | (b) the exempt wholesale generator facility |
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| 90 | 148 | | consumes from sources located within the |
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| 91 | 149 | | state at least ninety percent (90%) of the |
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| 92 | 150 | | total energy used to produce the elec trical |
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| 93 | 151 | | output which qualifies for the specialized |
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| 94 | 152 | | treatment provided by the Energy Policy Act |
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| 95 | 153 | | of 1992, P.L. 102-486, 106 Stat. 2776, as |
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| 96 | 154 | | amended, and federal regulations adopted |
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| 97 | 155 | | pursuant thereto, |
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| 98 | 156 | | (c) the exempt wholesale generator facility |
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| 99 | 157 | | sells to purchasers located outside the |
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| 100 | 158 | | state for consumption in activities located |
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| 101 | 159 | | outside the state at least ninety percent |
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| 102 | 160 | | (90%) of the total electrical energy output |
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| 103 | 161 | | which qualifies for the specialized |
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| 104 | 162 | | treatment provided by the Ene rgy Policy Act |
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| 105 | 163 | | of 1992, P.L. 102-486, 106 Stat. 2776, as |
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| 137 | 219 | | (3) those administrative and facilities support |
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| 138 | 220 | | service activities defined or classified in the |
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| 139 | 221 | | NAICS Manual under I ndustry Group Nos. 5611 and |
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| 140 | 222 | | 5612, Industry Nos. 51821, 519130, 52232, and |
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| 141 | 223 | | 56142 or U.S. Industry Nos. 524291 and 551114, |
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| 142 | 224 | | those other support activities for air |
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| 143 | 225 | | transportation defined or classified in the NAICS |
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| 144 | 226 | | Manual under Industry Group No. 488190, and th ose |
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| 145 | 227 | | support, repair, and maintenanc e service |
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| 146 | 228 | | activities for the wind industry defined or |
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| 147 | 229 | | classified in the NAICS Manual under Industry |
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| 148 | 230 | | Group No. 811310, |
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| 149 | 231 | | (4) those professional, scientific , and technical |
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| 150 | 232 | | service activities defined or classified in the |
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| 151 | 233 | | NAICS Manual under U.S. Industry Nos. 541 710 and |
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| 152 | 234 | | 541380, |
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| 153 | 235 | | (5) distribution centers for retail or wholesale |
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| 154 | 236 | | businesses defined or classified in the NAICS |
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| 155 | 237 | | Manual under Sector No. 42, if forty percent |
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| 188 | 294 | | seventy-five percent (75%) of the loans to be |
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| 189 | 295 | | serviced were made by out-of-state debtors, |
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| 190 | 296 | | (7) (a) those air transportation activities d efined |
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| 191 | 297 | | or classified in the NAICS Manual under |
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| 192 | 298 | | Industry Group No. 4811, if the following |
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| 193 | 299 | | facilities are located in this state: |
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| 194 | 300 | | (i) the corporate headquarters of an |
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| 195 | 301 | | establishment classified therein, and |
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| 196 | 302 | | (ii) a facility or facilities at which |
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| 197 | 303 | | reservations for transportation |
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| 198 | 304 | | provided by such an establishment are |
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| 199 | 305 | | processed, whether such services are |
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| 200 | 306 | | performed by employees of the |
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| 201 | 307 | | establishment, by employees of a |
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| 202 | 308 | | subsidiary of or other enti ty |
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| 203 | 309 | | affiliated with the establishment o r by |
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| 204 | 310 | | employees of an entity with who m the |
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| 205 | 311 | | establishment has contracted for the |
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| 206 | 312 | | performance of such services; provided, |
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| 238 | 368 | | (b) those air transportation activitie s defined |
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| 239 | 369 | | or classified in the NAICS Manual under |
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| 240 | 370 | | Industry Group No. 4811, if an establishment |
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| 241 | 371 | | classified therein has or will have within |
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| 242 | 372 | | one (1) year sales of at least seventy -five |
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| 243 | 373 | | percent (75%) of its total sales, as |
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| 244 | 374 | | determined by the Incentive Approval |
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| 245 | 375 | | Committee pursuant to the provisions of |
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| 246 | 376 | | subsection B of this section, to out -of- |
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| 247 | 377 | | state customers or buyers, to in -state |
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| 248 | 378 | | customers or buyers if the product or |
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| 249 | 379 | | service is resold by the purchaser to an |
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| 250 | 380 | | out-of-state customer or buyer for ultimate |
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| 251 | 381 | | use, or to the federal government, |
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| 252 | 382 | | (8) flight training services activities defined or |
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| 253 | 383 | | classified in the NAICS Manual under U.S. |
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| 254 | 384 | | Industry Group No. 611512, which for purposes of |
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| 255 | 385 | | the Oklahoma Quality Jobs Program Act shall |
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| 256 | 386 | | include new direct jobs for which gross payroll |
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| 289 | 443 | | its total sales, as determined by the Ince ntive |
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| 290 | 444 | | Approval Committee pursuant to the provisions of |
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| 291 | 445 | | subsection B of this section, to out -of-state |
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| 292 | 446 | | customers or buyers, to in -state customers or |
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| 293 | 447 | | buyers if the product or service is resold by the |
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| 294 | 448 | | purchaser to an out-of-state customer or buyer |
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| 295 | 449 | | for ultimate use, or to the federal government: |
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| 296 | 450 | | (a) those transportation and warehousing |
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| 297 | 451 | | activities defined or classified in the |
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| 298 | 452 | | NAICS Manual under Industry Subsector No. |
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| 299 | 453 | | 493, if not otherwise l isted in this |
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| 300 | 454 | | paragraph, Industry Subs ector Nos. 482 and |
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| 301 | 455 | | 484 and Industry Group Nos. 4884 through |
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| 302 | 456 | | 4889, |
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| 303 | 457 | | (b) those passenger transportation activities |
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| 304 | 458 | | defined or classified in the NAICS Manual |
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| 305 | 459 | | under Industry Nos. 561510 and 561599, |
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| 339 | 517 | | (e) those services to dwellings and other |
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| 340 | 518 | | buildings, as defined or classified in the |
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| 341 | 519 | | NAICS Manual under Industry Group No. 5617, |
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| 342 | 520 | | excluding U.S. Industry Nos. 561730, 56171, |
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| 343 | 521 | | 56172, 56174, and 56179, |
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| 344 | 522 | | (f) those equipment rental and leasing |
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| 345 | 523 | | activities defined or classified in the |
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| 346 | 524 | | NAICS Manual under Industry Group No. 5324, |
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| 347 | 525 | | (g) those information techno logy and other |
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| 348 | 526 | | computer-related service activities defined |
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| 349 | 527 | | or classified in the NAICS Manual under |
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| 350 | 528 | | Industry Group Nos. 5112, 5182, 5191 , and |
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| 351 | 529 | | 5415, |
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| 352 | 530 | | (h) those business support service activities |
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| 353 | 531 | | defined or classified in the NAICS Manual |
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| 354 | 532 | | under U.S. Industry N os. 561410 through |
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| 355 | 533 | | 561430, excluding 56143, and Industry No. |
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| 356 | 534 | | 51911, |
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| 390 | 592 | | Industry Group Nos. 5412, 5414, 5415, 5416 |
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| 391 | 593 | | and 5417, Industry Nos. 54131, 54133, 54136 , |
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| 392 | 594 | | and 54137, and U.S. Industry No. 541990, if |
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| 393 | 595 | | not otherwise listed in this paragraph, |
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| 394 | 596 | | (k) those communication ser vice activities |
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| 395 | 597 | | defined or classified in the NAICS Manual |
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| 396 | 598 | | under Industry Nos. 51741 and 51791, |
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| 397 | 599 | | (l) those refuse systems activities defined or |
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| 398 | 600 | | classified in the NAICS Manual under |
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| 399 | 601 | | Industry Group No. 5622, provided that the |
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| 400 | 602 | | establishment is primarily engaged in the |
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| 401 | 603 | | capture and distribution of meth ane gas |
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| 402 | 604 | | produced within a landfill, |
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| 403 | 605 | | (m) general wholesale distribution of groceries, |
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| 404 | 606 | | defined or classified in the NAICS Manual |
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| 405 | 607 | | under Industry Group Nos. 4244 and 4245, |
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| 406 | 608 | | (n) those activities relating to processing of |
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| 407 | 609 | | insurance claims, defined , or classified in |
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| 441 | 667 | | (o) those agricultural activities classified in |
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| 442 | 668 | | the NAICS Manual under U.S. Industry Nos. |
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| 443 | 669 | | 112120 and 112310, |
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| 444 | 670 | | (p) those professional organization activities |
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| 445 | 671 | | classified in the NAICS M anual under U.S. |
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| 446 | 672 | | Industry No. 813920, |
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| 447 | 673 | | (q) alternative energy structure construc tion |
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| 448 | 674 | | classified in the NAICS Manual under U.S. |
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| 449 | 675 | | Industry No. 237130, |
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| 450 | 676 | | (r) solar reflective coating application |
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| 451 | 677 | | classified in the NAICS Manual under U.S. |
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| 452 | 678 | | Industry No. 238160, |
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| 453 | 679 | | (s) solar heating equipment installation |
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| 454 | 680 | | classified in the NAICS Manual under U.S. |
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| 455 | 681 | | Industry No. 238220, |
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| 456 | 682 | | (t) those wired telecommunications carriers |
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| 457 | 683 | | classified in the NAICS Manual under U.S. |
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| 458 | 684 | | Industry No. 517110, and |
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| 492 | 742 | | gas, or refined petroleum products, defined or |
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| 493 | 743 | | classified in the NAICS Manu al under Industry |
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| 494 | 744 | | Group No. 2111, 2131 11, 213112, or 486, subject |
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| 495 | 745 | | to the limitations provided in paragraph 3 of |
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| 496 | 746 | | this subsection and paragraph 3 of subsection B |
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| 497 | 747 | | of this section, |
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| 498 | 748 | | (11) those activities performed by the federal |
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| 499 | 749 | | civilian workforce at a facility of the Federal |
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| 500 | 750 | | Aviation Administratio n located in this state if |
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| 501 | 751 | | the Director of the Oklahoma Department of |
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| 502 | 752 | | Commerce determines or is notified that the |
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| 503 | 753 | | federal government is soliciting proposals or |
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| 504 | 754 | | otherwise inviting states to compete for |
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| 505 | 755 | | additional federal civilian employment or |
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| 506 | 756 | | expansion of federal civilian employment at such |
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| 507 | 757 | | facilities, |
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| 543 | 817 | | at least seventy-five percent (75%) of the real |
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| 544 | 818 | | estate transactions generating those rev enues are |
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| 545 | 819 | | attributed to real property located outside the |
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| 546 | 820 | | State of Oklahoma this state, or |
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| 547 | 821 | | (14) those support activities for rail transportation |
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| 548 | 822 | | and those support activities for water |
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| 549 | 823 | | transportation defined or classified in the NAICS |
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| 550 | 824 | | Manual under U.S. Indu stry Nos. 4882 and 4883. |
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| 551 | 825 | | b. An establishment described in subparagraph a of this |
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| 552 | 826 | | paragraph shall not be considered to be engaged in a |
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| 553 | 827 | | basic industry unless it offers, or will offer within |
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| 554 | 828 | | one hundred eighty (180) days of employment, a basic |
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| 555 | 829 | | health benefits plan to the individuals it employs in |
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| 556 | 830 | | new direct jobs in this state which is determined by |
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| 557 | 831 | | the Oklahoma Department of Commerce to consist of the |
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| 558 | 883 | | following elements or elements substantially |
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| 559 | 884 | | equivalent thereto: |
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| 560 | 885 | | (1) not more than fifty percent (50%) of the premium |
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| 561 | 886 | | shall be paid by the employee, |
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| 562 | 887 | | (2) coverage for basic hospital care, |
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| 563 | 888 | | (3) coverage for physician care, |
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| 564 | 889 | | (4) coverage for mental health care, |
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| 565 | 890 | | (5) coverage for substance abuse treatment, |
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| 566 | 891 | | (6) coverage for prescription drugs, and |
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| 594 | 892 | | (7) coverage for prenata l care; |
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| 595 | 893 | | 2. “Change-in-control event” means the transfer to one or more |
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| 596 | 894 | | unrelated establishments or unrelated persons, of either: |
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| 597 | 895 | | a. beneficial ownership of more than fifty percent (50%) |
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| 598 | 896 | | in value and more than fifty percent (50%) in voting |
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| 599 | 897 | | power of the outstanding equity securities of the |
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| 600 | 898 | | transferred establishment, or |
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| 601 | 899 | | b. more than fifty percen t (50%) in value of the assets |
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| 602 | 900 | | of an establishment. |
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| 603 | 901 | | A transferor shall be treated as related to a transferee if more |
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| 604 | 902 | | than fifty percent (50%) of the voting interests o f the transferor |
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| 605 | 903 | | and transferee are ow ned, directly or indirectly, by the other or |
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| 606 | 904 | | are owned, directly or indirectly, by the same person or persons, |
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| 607 | 905 | | unless such transferred establishment has an outstanding class of |
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| 608 | 906 | | equity securities registered under Sectio ns 12(b) or 15(d) of the |
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| 609 | 958 | | Securities Exchange Act of 1934, as amended, in which event the |
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| 610 | 959 | | transferor and transferee will be treated as unrelated; provided, an |
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| 611 | 960 | | establishment applying for the Oklahoma Quality Jobs Program Act as |
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| 612 | 961 | | a result of a change -in-control event is required to apply within |
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| 613 | 962 | | one hundred eighty (180) days of the change -in-control event to |
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| 614 | 963 | | qualify for consideration. An establishment entering the Oklahoma |
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| 615 | 964 | | Quality Jobs Program Act as the result of a change -in-control event |
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| 616 | 965 | | shall be required to maintain a level of new direct jobs as agreed |
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| 617 | 966 | | to in its contract with the Oklahoma Depart ment of Commerce and to |
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| 645 | 967 | | pay new direct jobs an average annualized wage which equals or |
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| 646 | 968 | | exceeds one hundred twenty -five percent (125%) of the average county |
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| 647 | 969 | | wage, for the county in which the new jobs are lo cated, for |
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| 648 | 970 | | applications submitted by an establishment before January 1, 2024. |
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| 649 | 971 | | For applications submitted by an establishment on or after January |
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| 650 | 972 | | 1, 2024, the establishment shall pay one hundred twenty-five percent |
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| 651 | 973 | | (125%) of the average county wa ge, for the county in which the new |
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| 652 | 974 | | jobs are located, or one hundred percent (100%) of the average state |
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| 653 | 975 | | wage for application submitted by an establishment on or after |
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| 654 | 976 | | January 1, 2024, whichever is greater, as that percentage is |
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| 655 | 977 | | determined by the Oklahoma Department of Commerce based upon the |
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| 656 | 978 | | most recent U.S. Department of Commerce data for the county in which |
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| 657 | 979 | | the new jobs are located . For purposes of this paragraph, |
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| 658 | 980 | | healthcare premiums paid by the applicant for individuals in new |
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| 659 | 981 | | direct jobs shall not be included in the annualized wage. Such |
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| 660 | 1033 | | establishment entering the Oklahoma Quality Jobs Program Act as the |
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| 661 | 1034 | | result of a change-in-control event shall be required to retain the |
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| 662 | 1035 | | contracted average annualized wage and maintain the contracted |
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| 663 | 1036 | | maintenance level of new direct jobs numbers as certifie d by the |
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| 664 | 1037 | | Oklahoma Tax Commission. If the required average annualized wage or |
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| 665 | 1038 | | the required new direct jobs numbers do not equal or exceed such |
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| 666 | 1039 | | contracted level during any quarter, the quarterly incentive |
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| 667 | 1040 | | payments shall not be made and shall not be resumed until such time |
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| 668 | 1041 | | as such requirements are met. An establishment described in this |
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| 696 | 1042 | | paragraph shall be required to repay all incentive payments received |
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| 697 | 1043 | | under the Oklahoma Quality Jobs Program Act if the establishment is |
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| 698 | 1044 | | determined by the Tax Commission to n o longer have busines s |
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| 699 | 1045 | | operations in the state within three (3) years from the beginning of |
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| 700 | 1046 | | the calendar quarter for which the first incentive payment claim is |
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| 701 | 1047 | | filed; |
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| 702 | 1048 | | 3. “New direct job”: |
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| 703 | 1049 | | a. means full-time-equivalent employment in this state in |
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| 704 | 1050 | | an establishment which has qua lified to receive an |
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| 705 | 1051 | | incentive payment pursuant to the provisions of the |
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| 706 | 1052 | | Oklahoma Quality Jobs Program Act which employment did |
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| 707 | 1053 | | not exist in this state prior to the date of approval |
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| 708 | 1054 | | by the Department of the application of the |
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| 709 | 1055 | | establishment pursuant to the provisions of Section |
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| 710 | 1056 | | 3604 of this title and with respect to an |
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| 711 | 1108 | | establishment qualifying for incentive payments |
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| 712 | 1109 | | pursuant to division (12) of subparagraph a of |
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| 713 | 1110 | | paragraph 1 of this subsection shall n ot include |
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| 714 | 1111 | | compensation paid to an emp loyee or independent |
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| 715 | 1112 | | contractor for an athletic contest conducted in the |
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| 716 | 1113 | | state if the compensation is paid by an entity that |
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| 717 | 1114 | | does not have its principal place of business in the |
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| 718 | 1115 | | state or that does not own real or perso nal property |
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| 719 | 1116 | | having a market value of at least One Million Dollars |
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| 747 | 1117 | | ($1,000,000.00) located in the state, and the |
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| 748 | 1118 | | employees or independent contractors of such entity |
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| 749 | 1119 | | are compensated to compete against the employees or |
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| 750 | 1120 | | independent contractors of an establish ment that |
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| 751 | 1121 | | qualifies for incentive paym ents pursuant to divi sion |
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| 752 | 1122 | | (12) of subparagraph a of paragraph 1 of this |
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| 753 | 1123 | | subsection and which is organized under Oklahoma law |
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| 754 | 1124 | | or that is lawfully registered to do business in the |
|---|
| 755 | 1125 | | state and which does have its principal place of |
|---|
| 756 | 1126 | | business located in the state and owns real or |
|---|
| 757 | 1127 | | personal property having a market value of at least |
|---|
| 758 | 1128 | | One Million Dollars ($1,000,000.00) located in the |
|---|
| 759 | 1129 | | state; provided, that if an application of an |
|---|
| 760 | 1130 | | establishment is approved by the Oklahoma Departmen t |
|---|
| 761 | 1131 | | of Commerce after a change-in-control event and the |
|---|
| 797 | 1191 | | b. shall include full-time-equivalent employment in this |
|---|
| 798 | 1192 | | state of employees who are employed by an employment |
|---|
| 799 | 1193 | | agency or similar en tity other than the establishment |
|---|
| 800 | 1194 | | which has qualified to receive an incentive payment |
|---|
| 801 | 1195 | | and who are leased or otherwise provided under |
|---|
| 802 | 1196 | | contract to the qualified establishment, if such job |
|---|
| 803 | 1197 | | did not exist in this state prior to the date of |
|---|
| 804 | 1198 | | approval by the Depar tment of the application of the |
|---|
| 805 | 1199 | | establishment or the job otherwise qualifies as a new |
|---|
| 806 | 1200 | | direct job following a change -in-control event. A job |
|---|
| 807 | 1201 | | shall be deemed to exist in this state prior to |
|---|
| 808 | 1202 | | approval of an application if the activities a nd |
|---|
| 809 | 1203 | | functions for which the particular job exists have |
|---|
| 810 | 1204 | | been ongoing at any time within six (6) months prior |
|---|
| 811 | 1205 | | to such approval. With respect to establishments |
|---|
| 812 | 1206 | | defined in division (10) of subparagraph a of |
|---|
| 813 | 1258 | | paragraph 1 of this subsection, new direct jobs shall |
|---|
| 814 | 1259 | | be limited to those jobs directly comprising the |
|---|
| 815 | 1260 | | corporate headquarters of or directly relating to |
|---|
| 816 | 1261 | | manufacturing, maintenance, administrative, financial, |
|---|
| 817 | 1262 | | engineering, surveying, geological , or geophysical |
|---|
| 818 | 1263 | | services performed by the establishment. Under no |
|---|
| 819 | 1264 | | circumstances shall e mployment relating to field |
|---|
| 820 | 1265 | | services be considered new direct jobs; |
|---|
| 848 | 1266 | | 4. “Estimated direct state benefits ” means the tax revenues |
|---|
| 849 | 1267 | | projected by the Department to accrue to the state as a result of |
|---|
| 850 | 1268 | | new direct jobs; |
|---|
| 851 | 1269 | | 5. “Estimated direct state costs” means the costs projected by |
|---|
| 852 | 1270 | | the Department to accrue to the state as a result of new direct |
|---|
| 853 | 1271 | | jobs. Such costs shall include, but not be limited to: |
|---|
| 854 | 1272 | | a. the costs of education of new state resident children , |
|---|
| 855 | 1273 | | b. the costs of public health, publi c safety, and |
|---|
| 856 | 1274 | | transportation services to be provided to new state |
|---|
| 857 | 1275 | | residents, |
|---|
| 858 | 1276 | | c. the costs of other state services to be provided to |
|---|
| 859 | 1277 | | new state residents, and |
|---|
| 860 | 1278 | | d. the costs of other state services; |
|---|
| 861 | 1279 | | 6. “Estimated net direct state benefits” means the estimated |
|---|
| 862 | 1280 | | direct state benefits less the estimated direct state costs; |
|---|
| 863 | 1332 | | 7. “Net benefit rate” means the estimated net direct state |
|---|
| 864 | 1333 | | benefits computed as a percentage of gross payroll; provided: |
|---|
| 865 | 1334 | | a. except as otherwise provided in this paragraph, the |
|---|
| 866 | 1335 | | net benefit rate may be variable and sha ll not exceed |
|---|
| 867 | 1336 | | five percent (5%), |
|---|
| 868 | 1337 | | b. the net benefit rate shall not exceed six percent (6%) |
|---|
| 869 | 1338 | | in connection with an establishment which is owned and |
|---|
| 870 | 1339 | | operated by an entity which has been awarded a Un ited |
|---|
| 871 | 1340 | | States Department of Defense cont ract for which: |
|---|
| 899 | 1341 | | (1) bids were solicited and accepted by the United |
|---|
| 900 | 1342 | | States Department of Defense from facilities |
|---|
| 901 | 1343 | | located outside this state, |
|---|
| 902 | 1344 | | (2) the term is or is renewable for not less than |
|---|
| 903 | 1345 | | twenty (20) years, and |
|---|
| 904 | 1346 | | (3) the average annual salary, excluding be nefits |
|---|
| 905 | 1347 | | which are not subject to Oklahoma income taxes, |
|---|
| 906 | 1348 | | for new direct jobs created as a direct result of |
|---|
| 907 | 1349 | | the awarding of the contract is projected by the |
|---|
| 908 | 1350 | | Oklahoma Department of Commerce to equal or |
|---|
| 909 | 1351 | | exceed Forty Thousan d Dollars ($40,000.00) within |
|---|
| 910 | 1352 | | three (3) years of the date of the first |
|---|
| 911 | 1353 | | incentive payment, |
|---|
| 912 | 1354 | | c. except as otherwise provided in subparagraph d of this |
|---|
| 913 | 1355 | | paragraph, in no event shall incentive payments, |
|---|
| 949 | 1415 | | (a) the per capita personal income, as |
|---|
| 950 | 1416 | | determined by the Departmen t, is eighty-five |
|---|
| 951 | 1417 | | percent (85%) or less of the statewide |
|---|
| 952 | 1418 | | average per capita personal income, |
|---|
| 953 | 1419 | | (b) the population has decreased over the |
|---|
| 954 | 1420 | | previous ten (10) years, as determined by |
|---|
| 955 | 1421 | | the Oklahoma Department of Commerce based on |
|---|
| 956 | 1422 | | the most recent U.S. Department of Commerce |
|---|
| 957 | 1423 | | data, or |
|---|
| 958 | 1424 | | (c) the unemployment rate exceeds the lesser of |
|---|
| 959 | 1425 | | five percent (5%) or two percentage points |
|---|
| 960 | 1426 | | above the state average unemployment rate as |
|---|
| 961 | 1427 | | certified by the Oklahoma Employment |
|---|
| 962 | 1428 | | Security Commission, |
|---|
| 963 | 1429 | | e. the net benefit rate shall not exceed si x percent (6%) |
|---|
| 964 | 1430 | | in connection with an establishment which: |
|---|
| 965 | 1482 | | (1) is, as of the date of application, receiving |
|---|
| 966 | 1483 | | incentive payments pursuant to the Oklahoma |
|---|
| 967 | 1484 | | Quality Jobs Program Act and has been receiv ing |
|---|
| 968 | 1485 | | such payments for at least one (1) year prior to |
|---|
| 969 | 1486 | | the date of application, and |
|---|
| 970 | 1487 | | (2) expands its operations in this state by creating |
|---|
| 971 | 1488 | | additional new direct jobs which pay average |
|---|
| 972 | 1489 | | annualized wages which equal or exceed one |
|---|
| 1000 | 1490 | | hundred fifty percent (150%) of t he average |
|---|
| 1001 | 1491 | | annualized wages of new dir ect jobs on which |
|---|
| 1002 | 1492 | | incentive payments were received during the |
|---|
| 1003 | 1493 | | preceding calendar year, |
|---|
| 1004 | 1494 | | f. with respect to an establishment defined or classified |
|---|
| 1005 | 1495 | | in the NAICS Manual under U.S. Industry No. 711211 |
|---|
| 1006 | 1496 | | (2007 version) or any establishment defined or |
|---|
| 1007 | 1497 | | classified in the NAICS Manual as a U.S. Industry |
|---|
| 1008 | 1498 | | Number which is not included within the definition of |
|---|
| 1009 | 1499 | | “basic industry” as such term is defined in this |
|---|
| 1010 | 1500 | | section on April 17, 2008, the net benefit rate shall |
|---|
| 1011 | 1501 | | not exceed the highest r ate of income tax imposed upon |
|---|
| 1012 | 1502 | | the Oklahoma taxable income of individuals pursuant to |
|---|
| 1013 | 1503 | | subparagraph (g) or subparagraph (h), as applicable, |
|---|
| 1014 | 1504 | | of paragraph 1 and paragraph 2 of subsection B of |
|---|
| 1015 | 1505 | | Section 2355 of this title. Any change in such |
|---|
| 1050 | 1564 | | the net benefit rate is modified as required by this |
|---|
| 1051 | 1565 | | subparagraph, and |
|---|
| 1052 | 1566 | | g. the net benefit rate shall not exceed six percent (6%) |
|---|
| 1053 | 1567 | | in connection with an estab lishment which employs |
|---|
| 1054 | 1568 | | United States military veterans in at least ten |
|---|
| 1055 | 1569 | | percent (10%) of its gross payroll. The net benefit |
|---|
| 1056 | 1570 | | rate for an establishment which employs United States |
|---|
| 1057 | 1571 | | military veterans in at least ten percent (10%) of its |
|---|
| 1058 | 1572 | | payroll shall not be lo wer than five percent (5%). |
|---|
| 1059 | 1573 | | Incentive payments made pursuant to the provisions of this |
|---|
| 1060 | 1574 | | subparagraph shall be based upon payroll associated with such new |
|---|
| 1061 | 1575 | | direct jobs. For purposes of this subparagraph, the amount of |
|---|
| 1062 | 1576 | | health insurance premiums or other benef its paid by the |
|---|
| 1063 | 1577 | | establishment shall no t be included for purpo ses of computation of |
|---|
| 1064 | 1578 | | the average annualized wage; |
|---|
| 1065 | 1579 | | 8. “Gross payroll” means wages, as defined in Section 2385.1 of |
|---|
| 1066 | 1580 | | this title for new direct jobs; |
|---|
| 1067 | 1632 | | 9. a. “Establishment” means any business or gov ernmental |
|---|
| 1068 | 1633 | | entity, no matter what legal form, including, but n ot |
|---|
| 1069 | 1634 | | limited to, a sole proprietorship; partnership; |
|---|
| 1070 | 1635 | | limited liability company; corporation or combination |
|---|
| 1071 | 1636 | | of corporations which have a central parent |
|---|
| 1072 | 1637 | | corporation which makes corporate management d ecisions |
|---|
| 1073 | 1638 | | such as those involving conso lidation, acquisition, |
|---|
| 1101 | 1639 | | merger or expansion; federal agency; political |
|---|
| 1102 | 1640 | | subdivision of the State of Oklahoma; or trust |
|---|
| 1103 | 1641 | | authority; provided, distinct, identifiable subunits |
|---|
| 1104 | 1642 | | of such entities may be determined to be an |
|---|
| 1105 | 1643 | | establishment, for all purposes of the Okl ahoma |
|---|
| 1106 | 1644 | | Quality Jobs Program Act, by the Department subject to |
|---|
| 1107 | 1645 | | the following conditions: |
|---|
| 1108 | 1646 | | (1) within three (3) years of the first complete |
|---|
| 1109 | 1647 | | calendar quarter following the start date, the |
|---|
| 1110 | 1648 | | entity must have a minimum payroll of Two Million |
|---|
| 1111 | 1649 | | Five Hundred Thousand D ollars ($2,500,000.00) and |
|---|
| 1112 | 1650 | | the subunit must also have or will have a minimum |
|---|
| 1113 | 1651 | | payroll of Two Million Five Hundred Thousand |
|---|
| 1114 | 1652 | | Dollars ($2,500,000.00), |
|---|
| 1115 | 1653 | | (2) the subunit is engaged in an activity or service |
|---|
| 1116 | 1654 | | or produces a product which is demonstratively |
|---|
| 1117 | 1655 | | independent and separate from th e entity’s other |
|---|
| 1118 | 1707 | | activities, services or products and could be |
|---|
| 1119 | 1708 | | conducted or produced in the absence of any other |
|---|
| 1120 | 1709 | | activity, service, or production of the entity, |
|---|
| 1121 | 1710 | | (3) has an accounting system capab le of tracking or |
|---|
| 1122 | 1711 | | facilitating an audi t of the subunit’s payroll, |
|---|
| 1123 | 1712 | | expenses, revenue, and production. Limited |
|---|
| 1124 | 1713 | | interunit overlap of administrative and |
|---|
| 1152 | 1714 | | purchasing functions shall not disqualify a |
|---|
| 1153 | 1715 | | subunit from consideration as an establishment by |
|---|
| 1154 | 1716 | | the Department, |
|---|
| 1155 | 1717 | | (4) the entity has not previously had a subunit |
|---|
| 1156 | 1718 | | determined to be an establishment pursuant to |
|---|
| 1157 | 1719 | | this section; provided, the restriction set forth |
|---|
| 1158 | 1720 | | in this division shall not apply to subunits |
|---|
| 1159 | 1721 | | which qualify pursuant to the provisions of |
|---|
| 1160 | 1722 | | subparagraph b of paragraph 7 of this subsection, |
|---|
| 1161 | 1723 | | and |
|---|
| 1162 | 1724 | | (5) it is determined by th e Department that the |
|---|
| 1163 | 1725 | | entity will have a probable net gain in total |
|---|
| 1164 | 1726 | | employment within the incentive period. |
|---|
| 1165 | 1727 | | b. The Department may promulgate rules to further limit |
|---|
| 1166 | 1728 | | the circumstances under which a subunit may be |
|---|
| 1167 | 1729 | | considered an establis hment. The Department shall |
|---|
| 1168 | 1730 | | promulgate rules to determine whether a subunit of an |
|---|
| 1203 | 1789 | | States, 1997, promulgated by th e Office of Management and Budget of |
|---|
| 1204 | 1790 | | the United States of Ame rica, or the latest revised edition; |
|---|
| 1205 | 1791 | | 11. “Qualified federal contract ” means a contract between an |
|---|
| 1206 | 1792 | | agency or instrumentality of the United States government, including |
|---|
| 1207 | 1793 | | but not limited to the Depa rtment of Defense or any branch of the |
|---|
| 1208 | 1794 | | United States Armed Fo rces, but exclusive of any contract performed |
|---|
| 1209 | 1795 | | for the Federal Emergency Management Agency as a direct result of a |
|---|
| 1210 | 1796 | | natural disaster declared by the Governor or the President of the |
|---|
| 1211 | 1797 | | United States with respect to damage to property loca ted in Oklahoma |
|---|
| 1212 | 1798 | | or loss of life or personal injury to persons in Oklahoma, and a |
|---|
| 1213 | 1799 | | lawfully recognized business entity, whether or not the business |
|---|
| 1214 | 1800 | | entity is organized under the laws of the State of Oklahoma this |
|---|
| 1215 | 1801 | | state or whether or not the principal place o f business of the |
|---|
| 1216 | 1802 | | business entity is located within the State of Oklahoma this state, |
|---|
| 1217 | 1803 | | for the performance of services , including but not limited to |
|---|
| 1218 | 1804 | | testing, research, development, consulting , or other services in a |
|---|
| 1219 | 1805 | | basic industry, if the contract involves the performance of such |
|---|
| 1220 | 1857 | | services performed on or after July 1, 2009, by the employees of the |
|---|
| 1221 | 1858 | | business entity within the State of Oklahoma this state or if the |
|---|
| 1222 | 1859 | | contract involves the performance of such services performe d on or |
|---|
| 1223 | 1860 | | after July 1, 2009, by employe es of a lawfully recogn ized business |
|---|
| 1224 | 1861 | | entity that is a subco ntractor of the business entity with which the |
|---|
| 1225 | 1862 | | prime contract has been formed. A qualified federal contract |
|---|
| 1226 | 1863 | | described in this paragraph shall not qualify unle ss both the |
|---|
| 1254 | 1864 | | qualified federal contract or and any subcontracto rs originally |
|---|
| 1255 | 1865 | | involved in the work o r added subsequently during the period of |
|---|
| 1256 | 1866 | | performance verify to the qualified federal contractor verifier that |
|---|
| 1257 | 1867 | | it offers, or will offer within one hundred eigh ty (180) days of |
|---|
| 1258 | 1868 | | employment of its res pective employees, a ba sic health benefits plan |
|---|
| 1259 | 1869 | | as described in subparagraph b of paragraph 1 of this subsection to |
|---|
| 1260 | 1870 | | individuals who perform qualified labor hours in this state; |
|---|
| 1261 | 1871 | | 12. “Qualified federal contractor verifi er” means a nonprofit |
|---|
| 1262 | 1872 | | entity organized under the laws of the State of Oklahoma this state, |
|---|
| 1263 | 1873 | | having an affiliation with a comprehensive university which is part |
|---|
| 1264 | 1874 | | of The Oklahoma State System of Higher Education, and having the |
|---|
| 1265 | 1875 | | following characteristics: |
|---|
| 1266 | 1876 | | a. established multiyear classified and unc lassified |
|---|
| 1267 | 1877 | | indefinite-delivery/indefinite-quantity federal |
|---|
| 1268 | 1878 | | contract vehicles in excess of Fifty Million Dollars |
|---|
| 1269 | 1879 | | ($50,000,000.00), |
|---|
| 1304 | 1938 | | d. on-site secure mass data storage complex with the |
|---|
| 1305 | 1939 | | capability of isolat ing, segregating, and protecting |
|---|
| 1306 | 1940 | | corporate proprietary and classified i nformation, |
|---|
| 1307 | 1941 | | e. trusted agent status by maintaining no ownership of, |
|---|
| 1308 | 1942 | | vested interest in, nor royalty production from any |
|---|
| 1309 | 1943 | | intellectual property, |
|---|
| 1310 | 1944 | | f. at least one hundred thousand (100,000) square feet of |
|---|
| 1311 | 1945 | | configurable laboratory and support space, |
|---|
| 1312 | 1946 | | g. the direct access to restricted air space through a |
|---|
| 1313 | 1947 | | formalized memorandum of agreement with the Department |
|---|
| 1314 | 1948 | | of Defense, |
|---|
| 1315 | 1949 | | h. at least five thousand (5,000) acr es available for |
|---|
| 1316 | 1950 | | outdoor testing and t raining facilities, and |
|---|
| 1317 | 1951 | | i. the ability to house state -of-the-art surety |
|---|
| 1318 | 1952 | | facilities, including chemical, biological, |
|---|
| 1319 | 1953 | | radiological, explosives, electronics, and unmanned |
|---|
| 1320 | 1954 | | systems laboratories and ranges; |
|---|
| 1354 | 2012 | | 15. “Effective date” means the date of approval of a contract |
|---|
| 1355 | 2013 | | under which incentive payments will be made pursuant to the Oklahoma |
|---|
| 1356 | 2014 | | Quality Jobs Program Act, which shall be the da te the signed and |
|---|
| 1357 | 2015 | | accepted incentive c ontract is received by the Department; provided, |
|---|
| 1358 | 2016 | | an approved project ma y have a start date which is different from |
|---|
| 1359 | 2017 | | the effective date; |
|---|
| 1360 | 2018 | | 16. “Total qualified labor hours ” means the reimbursed payment |
|---|
| 1361 | 2019 | | amount for hours of work performed by the State of Oklaho ma |
|---|
| 1362 | 2020 | | workforce of a quali fied federal contractor or the State of Oklahoma |
|---|
| 1363 | 2021 | | workforce of a subcontractor of a qualified federal contractor and |
|---|
| 1364 | 2022 | | which are required for the full performance of a qualified federal |
|---|
| 1365 | 2023 | | contract; |
|---|
| 1366 | 2024 | | 17. “Qualified labor rate” means the fully reimbursed labor |
|---|
| 1367 | 2025 | | rate paid through a qualified federal contract for qualified labor |
|---|
| 1368 | 2026 | | hours to the qualified federal contractor or subcontractor; |
|---|
| 1369 | 2027 | | 18. “Qualified federal contractor ” means a business entity: |
|---|
| 1404 | 2086 | | new qualified subcontract under an existing qualifie d |
|---|
| 1405 | 2087 | | federal contract, and |
|---|
| 1406 | 2088 | | c. adding substantively to the contract by performing at |
|---|
| 1407 | 2089 | | least eight percent (8%) of the total labor whether |
|---|
| 1408 | 2090 | | qualified and nonqualified labor as determined by th e |
|---|
| 1409 | 2091 | | federal contractor ve rifier on a direct contract or |
|---|
| 1410 | 2092 | | individual task order or delivery order on an |
|---|
| 1411 | 2093 | | indefinite-delivery/indefinite-quantity or other |
|---|
| 1412 | 2094 | | blanket contract vehicle. |
|---|
| 1413 | 2095 | | Should a prime contractor provide notice to the Department of |
|---|
| 1414 | 2096 | | its intent not to apply for incentive for a qualified federal |
|---|
| 1415 | 2097 | | contract or fails to qualify under the criteria above, |
|---|
| 1416 | 2098 | | subcontractors in order of tier ranking as determined by the federal |
|---|
| 1417 | 2099 | | contract verifier may assume the role of the prime and apply to |
|---|
| 1418 | 2100 | | become a qualified federa l contractor provided t he entity meets the |
|---|
| 1419 | 2101 | | same criteria above with the exception that notice of intent to |
|---|
| 1420 | 2102 | | apply with the Department must be provided within sixty (60) days of |
|---|
| 1455 | 2161 | | b. benefits a geographic area where new direct jobs which |
|---|
| 1456 | 2162 | | meet the requirements of the Oklahoma Quality Jobs |
|---|
| 1457 | 2163 | | Program Act are created by an establishment, other |
|---|
| 1458 | 2164 | | than the proxy establishment, whic h is a branch of the |
|---|
| 1459 | 2165 | | Armed Forces of the United States. |
|---|
| 1460 | 2166 | | A proxy establishment may be determined to be an esta blishment |
|---|
| 1461 | 2167 | | for all purposes of the Oklahoma Quality Jobs Program Act by the |
|---|
| 1462 | 2168 | | Department and incentive payments may be made to such proxy |
|---|
| 1463 | 2169 | | establishment for new direct jobs otherwise qualif ied pursuant to |
|---|
| 1464 | 2170 | | the Oklahoma Quality Jobs Program Act. The Department may |
|---|
| 1465 | 2171 | | promulgate rules to further specify the circumstances under which a |
|---|
| 1466 | 2172 | | proxy establishment may be considered an establishment for the |
|---|
| 1467 | 2173 | | purposes of making application for incentive payme nts pursuant to |
|---|
| 1468 | 2174 | | the Oklahoma Quality Jobs Program Act. Provided , however, that with |
|---|
| 1469 | 2175 | | respect to any data on qualifying direct new jobs from a branch of |
|---|
| 1470 | 2176 | | the Armed Forces of the United States, such rules shall only requi re |
|---|
| 1471 | 2177 | | a proxy establishment to provide su ch data as would otherw ise be |
|---|
| 1506 | 2236 | | duty of the Committee to determine the elig ibility of all applicants |
|---|
| 1507 | 2237 | | for the Oklahoma Quality Jobs Progr am Act, subject to the applicable |
|---|
| 1508 | 2238 | | requirements. |
|---|
| 1509 | 2239 | | C. For an establishment defined as a “basic industry” pursuant |
|---|
| 1510 | 2240 | | to division (4) of subparagraph a of paragraph 1 of subsection A of |
|---|
| 1511 | 2241 | | this section, the Incentive Approval Committee shall consist of the |
|---|
| 1512 | 2242 | | members provided by subsection B of this section and the Executive |
|---|
| 1513 | 2243 | | Director of the Oklahoma Center for the Advancement of Science and |
|---|
| 1514 | 2244 | | Technology, or a designee from the Center appointed by the Executive |
|---|
| 1515 | 2245 | | Director. |
|---|
| 1516 | 2246 | | SECTION 2. AMENDATORY 68 O.S. 2021, Section 3604, is |
|---|
| 1517 | 2247 | | amended to read as follows: |
|---|
| 1518 | 2248 | | Section 3604. A. Except as otherwise provided in subsection I |
|---|
| 1519 | 2249 | | or subsection L of this section, an establishment which meets the |
|---|
| 1520 | 2250 | | qualifications specified in the Oklahoma Qualit y Jobs Program Act |
|---|
| 1521 | 2251 | | may receive quarterly incentive payments fo r a ten-year period from |
|---|
| 1522 | 2252 | | the Oklahoma Tax Commission pursuant to the provisions of the |
|---|
| 1557 | 2311 | | B. In order to receive incentive payments, an establishment |
|---|
| 1558 | 2312 | | shall apply to the Oklahoma Department of Commerce. The application |
|---|
| 1559 | 2313 | | shall be on a form prescribed by the Department and shall contain |
|---|
| 1560 | 2314 | | such information as may be required by the Department to determine |
|---|
| 1561 | 2315 | | if the applicant is qualified. An establishment may apply for an |
|---|
| 1562 | 2316 | | effective date for a project, which shall not be more than twenty - |
|---|
| 1563 | 2317 | | four (24) months from the date the application i s submitted to the |
|---|
| 1564 | 2318 | | Department. |
|---|
| 1565 | 2319 | | C. Except as otherwise provide d by subsection D or E of this |
|---|
| 1566 | 2320 | | section, in order to qualify to receive such payments, the |
|---|
| 1567 | 2321 | | establishment applying shall be required to: |
|---|
| 1568 | 2322 | | 1. Be engaged in a b asic industry; |
|---|
| 1569 | 2323 | | 2. Have an annual gros s payroll for new direc t jobs projected |
|---|
| 1570 | 2324 | | by the Department to e qual or exceed Two Million Five Hundred |
|---|
| 1571 | 2325 | | Thousand Dollars ($2,500,000.00) within three (3) years of the first |
|---|
| 1572 | 2326 | | complete calendar quarter following the start d ate; and |
|---|
| 1573 | 2378 | | 3. Have a number of full -time-equivalent employees subject to |
|---|
| 1574 | 2379 | | the tax imposed by Section 2 355 of this title and working an annual |
|---|
| 1575 | 2380 | | average of thirty (30) or more hours per week in new direct jobs |
|---|
| 1576 | 2381 | | located in this state equal to or in excess of eigh ty percent (80%) |
|---|
| 1577 | 2382 | | of the total number o f new direct jobs. |
|---|
| 1578 | 2383 | | D. In order to qualify to receive incentiv e payments as |
|---|
| 1579 | 2384 | | authorized by the Oklahoma Quality Jobs Program Act, an |
|---|
| 1580 | 2385 | | establishment engaged in an activity described under: |
|---|
| 1608 | 2386 | | 1. Industry Group Nos. 3111 thr ough 3119 of the NAICS Manual |
|---|
| 1609 | 2387 | | shall be required to: |
|---|
| 1610 | 2388 | | a. have an annual gross payroll for new direct j obs |
|---|
| 1611 | 2389 | | projected by the Department to equal or exceed One |
|---|
| 1612 | 2390 | | Million Five Hundred Thousand Dollars ($1,500,000.00) |
|---|
| 1613 | 2391 | | within three (3) years of the first complete ca lendar |
|---|
| 1614 | 2392 | | quarter following the start dat e and make, or which |
|---|
| 1615 | 2393 | | will make within one (1) year, at least s eventy-five |
|---|
| 1616 | 2394 | | percent (75%) of its total sales, as determined by the |
|---|
| 1617 | 2395 | | Incentive Approval Committee pursuant to the |
|---|
| 1618 | 2396 | | provisions of subsection B of Section 3603 o f this |
|---|
| 1619 | 2397 | | title, to out-of-state customers or buyers, to in- |
|---|
| 1620 | 2398 | | state customers or buyers if the product or service is |
|---|
| 1621 | 2399 | | resold by the purchaser to an out -of-state customer or |
|---|
| 1622 | 2400 | | buyer for ultimate use, or to the federal government, |
|---|
| 1623 | 2401 | | unless the annual gross payroll equ als or exceeds Two |
|---|
| 1624 | 2453 | | Million Five Hundred Thousand Dollars ($2, 500,000.00) |
|---|
| 1625 | 2454 | | in which case the requireme nts for purchase of output |
|---|
| 1626 | 2455 | | provided by this subparagraph shall not apply, and |
|---|
| 1627 | 2456 | | b. have a number of full -time-equivalent employees |
|---|
| 1628 | 2457 | | working an average of thirt y (30) or more hours per |
|---|
| 1629 | 2458 | | week in new direct jobs equal to or in excess of |
|---|
| 1630 | 2459 | | eighty percent (80%) of th e total number of new direct |
|---|
| 1631 | 2460 | | jobs; and |
|---|
| 1659 | 2461 | | 2. Division (4) of subparagraph a of paragraph 1 of subsection |
|---|
| 1660 | 2462 | | A of Section 3603 of this title, shall be required to : |
|---|
| 1661 | 2463 | | a. have an annual gross payroll for new direct jobs |
|---|
| 1662 | 2464 | | projected by the Department to equal or exceed One |
|---|
| 1663 | 2465 | | Million Five Hundred Thousand Dollars ($1,500,000.00) |
|---|
| 1664 | 2466 | | within three (3) years of the first complete calendar |
|---|
| 1665 | 2467 | | quarter following the start date, and |
|---|
| 1666 | 2468 | | b. have a number of full-time-equivalent employees |
|---|
| 1667 | 2469 | | working an average of thirty (30) or more hours per |
|---|
| 1668 | 2470 | | week in new direct jobs equal to or in excess of |
|---|
| 1669 | 2471 | | eighty percent (80%) of the total number of new direct |
|---|
| 1670 | 2472 | | jobs. |
|---|
| 1671 | 2473 | | E. 1. An establishment which locates its princ ipal business |
|---|
| 1672 | 2474 | | activity within a site c onsisting of at least t en (10) acres which: |
|---|
| 1673 | 2475 | | a. is a federal Superfund removal site, |
|---|
| 1709 | 2535 | | conditions for real property pursuant to an order of |
|---|
| 1710 | 2536 | | the Department of Environmental Quality, |
|---|
| 1711 | 2537 | | shall qualify for incentive payments irrespective of its actual |
|---|
| 1712 | 2538 | | gross payroll or the number of full -time-equivalent employees |
|---|
| 1713 | 2539 | | engaged in new direct jobs. |
|---|
| 1714 | 2540 | | 2. In order to qualify for the incentive payments pursua nt to |
|---|
| 1715 | 2541 | | this subsection, the establishment shall conduct the act ivity |
|---|
| 1716 | 2542 | | resulting in at least fifty percent (50%) of its Oklahoma taxable |
|---|
| 1717 | 2543 | | income or adjusted gross income, as determined under Section 2358 of |
|---|
| 1718 | 2544 | | this title, whether from the sale of products or serv ices or both |
|---|
| 1719 | 2545 | | products and services, at the physical location w hich has been |
|---|
| 1720 | 2546 | | determined not to comply with the federal or state statutes |
|---|
| 1721 | 2547 | | described in this subsection with respect to environmental |
|---|
| 1722 | 2548 | | conditions for real pro perty. The establishment shall be sub ject to |
|---|
| 1723 | 2549 | | all other requirements of the Oklahoma Quality Jobs Pr ogram Act |
|---|
| 1724 | 2550 | | other than the exemptions provided by this subsection. |
|---|
| 1758 | 2608 | | b. the site is being or has been remediated to a level |
|---|
| 1759 | 2609 | | which is consistent with t he intended use of the |
|---|
| 1760 | 2610 | | property. |
|---|
| 1761 | 2611 | | In making its determination, the Department of Environmental |
|---|
| 1762 | 2612 | | Quality may rely on existing data and information available to it, |
|---|
| 1763 | 2613 | | but may also require the applying entity to provide addit ional data |
|---|
| 1764 | 2614 | | and information as necessar y. |
|---|
| 1765 | 2615 | | 4. If authorized by the Department of Environmental Qualit y |
|---|
| 1766 | 2616 | | pursuant to paragraph 3 of this subsection, the entity may utilize a |
|---|
| 1767 | 2617 | | remediated portion of the property for its intended purpose prior to |
|---|
| 1768 | 2618 | | remediation of the remainder of the site, and shall qu alify for |
|---|
| 1769 | 2619 | | incentive payments based on employment associated wi th the portion |
|---|
| 1770 | 2620 | | of the site. |
|---|
| 1771 | 2621 | | F. Except as otherwise provided by subsection G of this |
|---|
| 1772 | 2622 | | section,: |
|---|
| 1773 | 2623 | | 1. for For applications submitted on and after June 4, 2003 and |
|---|
| 1774 | 2624 | | before January 1, 2024, in order to qualify to receive incentive |
|---|
| 1775 | 2625 | | payments as authorized by the Oklahoma Quality Jo bs Program Act, in |
|---|
| 1809 | 2683 | | for the county in which the new direct jobs are |
|---|
| 1810 | 2684 | | located. For purposes of this paragra ph, health care |
|---|
| 1811 | 2685 | | premiums paid by the applicant f or individuals in new |
|---|
| 1812 | 2686 | | direct jobs shall be included in the annualized wage ;, |
|---|
| 1813 | 2687 | | or |
|---|
| 1814 | 2688 | | 2. b. One hundred percent (100%) of the average county wage |
|---|
| 1815 | 2689 | | as that percentage is determin ed by the Department of |
|---|
| 1816 | 2690 | | Commerce based upon the most recent U.S. Department of |
|---|
| 1817 | 2691 | | Commerce data for the county in which t he new jobs are |
|---|
| 1818 | 2692 | | located. For purposes of this paragraph, health care |
|---|
| 1819 | 2693 | | premiums paid by the applicant for individuals in new |
|---|
| 1820 | 2694 | | direct jobs shall not be included in the annualized |
|---|
| 1821 | 2695 | | wage; and |
|---|
| 1822 | 2696 | | 2. For applications submitted on and after January 1, 2024, in |
|---|
| 1823 | 2697 | | order to qualify to receive incentive payments as authorized b y the |
|---|
| 1824 | 2698 | | Oklahoma Quality Jobs Program Act, in addition to other |
|---|
| 1825 | 2699 | | qualifications speci fied herein, an establishment shall be required |
|---|
| 1826 | 2700 | | to pay new direct jobs an average annu alized wage which equals or |
|---|
| 1860 | 2758 | | individuals in new direct jobs shall not be included in the |
|---|
| 1861 | 2759 | | annualized wage. |
|---|
| 1862 | 2760 | | Provided, no average wage requirement shall exceed Twenty-five |
|---|
| 1863 | 2761 | | Thousand Dollars ($25,000.00), in any county, for applications |
|---|
| 1864 | 2762 | | received before January 1, 2024. This maximum wage thres hold shall |
|---|
| 1865 | 2763 | | be indexed and modified fro m time to time based on the latest |
|---|
| 1866 | 2764 | | Consumer Price Index year-to-date percent change r elease as of the |
|---|
| 1867 | 2765 | | date of the annual average county wage data release from the Bureau |
|---|
| 1868 | 2766 | | of Economic Analysis of the U.S. Department of C ommerce. |
|---|
| 1869 | 2767 | | G. 1. As used in this subse ction, “opportunity zone” means one |
|---|
| 1870 | 2768 | | or more census tracts in which, according to the most recent Federal |
|---|
| 1871 | 2769 | | Decennial Census, at least thirty percent (30%) of the residents |
|---|
| 1872 | 2770 | | have annual gross household incomes from all sou rces below the |
|---|
| 1873 | 2771 | | poverty guidelines esta blished by the U.S. Dep artment of Health and |
|---|
| 1874 | 2772 | | Human Services. An establishment which is otherwise qualified to |
|---|
| 1875 | 2773 | | receive incentive payments and which locates its principal business |
|---|
| 1876 | 2774 | | activity in an opportunity zone shall n ot be subject to the |
|---|
| 1877 | 2775 | | requirements of subsection F of this sec tion. |
|---|
| 1910 | 2832 | | significant number of jobs within a particula r |
|---|
| 1911 | 2833 | | county of this state, or |
|---|
| 1912 | 2834 | | (2) an economic circumstance in which a significant |
|---|
| 1913 | 2835 | | number of jobs within a particular county of this |
|---|
| 1914 | 2836 | | state have been lost due to an establishment |
|---|
| 1915 | 2837 | | changing its structur e, consolidating with |
|---|
| 1916 | 2838 | | another establishment, closing, or moving all or |
|---|
| 1917 | 2839 | | part of its operations out of this state, and |
|---|
| 1918 | 2840 | | b. “significant number of jobs ” means Local Area |
|---|
| 1919 | 2841 | | Unemployment Statistics (LAUS) data, as determined by |
|---|
| 1920 | 2842 | | the Bureau of Labor Statistics, for a county which are |
|---|
| 1921 | 2843 | | equal to or in excess of five percent (5%) of the |
|---|
| 1922 | 2844 | | total amount of Local Area Unemployment Statistics |
|---|
| 1923 | 2845 | | (LAUS) data for that county for the calendar year, or |
|---|
| 1924 | 2846 | | most recent twelve-month period in which employ ment is |
|---|
| 1925 | 2847 | | measured, preceding the eve nt. |
|---|
| 1926 | 2848 | | An establishment which is otherwis e qualified to receive |
|---|
| 1927 | 2849 | | incentive payments and which locates in a county in which a negative |
|---|
| 1928 | 2850 | | economic event has occurred within the eighteen -month period |
|---|
| 1961 | 2907 | | H. The Department sha ll determine if the applicant is quali fied |
|---|
| 1962 | 2908 | | to receive incentive payments. |
|---|
| 1963 | 2909 | | I. If the applicant is determined to be qualified by the |
|---|
| 1964 | 2910 | | Department and is not subject to the provisions of subparagraph d of |
|---|
| 1965 | 2911 | | paragraph 7 of subse ction A of Section 3603 of this tit le, the |
|---|
| 1966 | 2912 | | Department shall conduct a cos t/benefit analysis to d etermine the |
|---|
| 1967 | 2913 | | estimated net direct state benefits and the net benefit rate |
|---|
| 1968 | 2914 | | applicable for a ten -year period beginning with the first complete |
|---|
| 1969 | 2915 | | calendar quarter following the start date and to estim ate the amount |
|---|
| 1970 | 2916 | | of gross payroll for a ten-year period beginning with the first |
|---|
| 1971 | 2917 | | complete calendar quarter following the start date or for a fifteen - |
|---|
| 1972 | 2918 | | year period for an establishment defined or classified in the NAICS |
|---|
| 1973 | 2919 | | Manual under U.S. Industry No. 711211 (20 07 version). In conducting |
|---|
| 1974 | 2920 | | such cost/benefit analysis, the D epartment shall consider |
|---|
| 1975 | 2921 | | quantitative factors, such as the anticipated level of new tax |
|---|
| 1976 | 2922 | | revenues to the state along with the added cost to the state of |
|---|
| 1977 | 2923 | | providing services, and such other criteria as deemed appropriate by |
|---|
| 1978 | 2924 | | the Department. In no event shall incentive payments, cumulatively, |
|---|
| 1979 | 2925 | | exceed the estimated net direct state benefits, except for |
|---|
| 2012 | 2982 | | Commission may require the qualified establishme nt to submit such |
|---|
| 2013 | 2983 | | additional informati on as may be necessary to administer the |
|---|
| 2014 | 2984 | | provisions of the Oklahoma Quality Jobs Program Act. The approved |
|---|
| 2015 | 2985 | | establishment shall file quarterly claims with the Tax Commission |
|---|
| 2016 | 2986 | | and shall continue to file such quarterly cl aims during the ten-year |
|---|
| 2017 | 2987 | | incentive period to show its continu ed eligibility for incentive |
|---|
| 2018 | 2988 | | payments, as provided in Section 3606 of this title, or until it is |
|---|
| 2019 | 2989 | | no longer qualified to receive incentive payments. The |
|---|
| 2020 | 2990 | | establishment may be audited by the Tax Co mmission to verify such |
|---|
| 2021 | 2991 | | eligibility. Once the establishment is approved, an agreement shall |
|---|
| 2022 | 2992 | | be deemed to exist between the establishment and the State of |
|---|
| 2023 | 2993 | | Oklahoma this state, requiring the continued incentive payment to be |
|---|
| 2024 | 2994 | | made as long as the establishmen t retains its eligibility as defined |
|---|
| 2025 | 2995 | | in and established pursu ant to this section and Sections 3603 and |
|---|
| 2026 | 2996 | | 3606 of this title and within the limitations contained in the |
|---|
| 2027 | 2997 | | Oklahoma Quality Jobs Program Act, which existed at the time of su ch |
|---|
| 2028 | 2998 | | approval. An establi shment described in this subsection sh all be |
|---|
| 2029 | 2999 | | required to repay all incentive payments received under the Oklahoma |
|---|
| 2030 | 3000 | | Quality Jobs Program Act if the establishment is determined by the |
|---|
| 2063 | 3057 | | receive quarterly incentive payments pursuant t o the provisions of |
|---|
| 2064 | 3058 | | this section is located may file a claim with the Tax Commission for |
|---|
| 2065 | 3059 | | up to twenty-five percent (25%) of the amount of such payment. The |
|---|
| 2066 | 3060 | | amount of such claim shall not exceed amounts paid by the |
|---|
| 2067 | 3061 | | municipality for direct costs of municipa l infrastructure |
|---|
| 2068 | 3062 | | improvements to provide water and sewer service to the |
|---|
| 2069 | 3063 | | establishment. Such claim shall not be approved by the Tax |
|---|
| 2070 | 3064 | | Commission unless the municipality and the establishment have |
|---|
| 2071 | 3065 | | entered into a written a greement for such claims to be filed b y the |
|---|
| 2072 | 3066 | | municipality prior to submission of the application of the |
|---|
| 2073 | 3067 | | establishment pursuant to the provisions of this section. If such |
|---|
| 2074 | 3068 | | claim is approved, the amount of the payment to the establishm ent |
|---|
| 2075 | 3069 | | made pursuant to the provisions of Section 3606 of this ti tle shall |
|---|
| 2076 | 3070 | | be reduced by the amount of the approved claim by the municipality |
|---|
| 2077 | 3071 | | and the Tax Commission shall issue a warrant to the municipality in |
|---|
| 2078 | 3072 | | the amount of the approved claim in the same mann er as warrants are |
|---|
| 2079 | 3073 | | issued to qualifying establishments. |
|---|
| 2080 | 3074 | | L. For any contract executed by an establishment on or after |
|---|
| 2081 | 3075 | | the effective date of this act August 2, 2018, five percent (5%) of |
|---|
| 2113 | 3131 | | Section 3604.1. A. A qualified federal contractor may receive |
|---|
| 2114 | 3132 | | quarterly incentive payments for renewable ten-year periods from the |
|---|
| 2115 | 3133 | | Oklahoma Tax Commission pursuant to the provisions of the Oklahoma |
|---|
| 2116 | 3134 | | Quality Jobs Program Act and the provisions of this section. |
|---|
| 2117 | 3135 | | B. The amount of such payments shall be equal to a net benefit |
|---|
| 2118 | 3136 | | rate of not less than twenty -five hundredths of one percent (0.25%), |
|---|
| 2119 | 3137 | | but not greater than two perce nt (2%), multiplied by the total |
|---|
| 2120 | 3138 | | qualified labor hours worked by employees of the federal contractor |
|---|
| 2121 | 3139 | | or employees of a qualified federal subcontractor, or both, pursuant |
|---|
| 2122 | 3140 | | to a qualified federal co ntract for a calendar quarter as verif ied |
|---|
| 2123 | 3141 | | by the Oklahoma Employment Security Commission and certified by a |
|---|
| 2124 | 3142 | | qualified federal contractor verifier. The net benefit rate for a |
|---|
| 2125 | 3143 | | qualified federal contractor shall be scaled to annual |
|---|
| 2126 | 3144 | | subcontracting goals that account for both total qualified |
|---|
| 2127 | 3145 | | subcontract labor hours and the ratio of qualified subcontract labor |
|---|
| 2128 | 3146 | | hours to total qualified labor hours. Unless limited by the |
|---|
| 2129 | 3147 | | cost/benefit analysis, the net benefit rate shall: |
|---|
| 2130 | 3148 | | 1. Not exceed twenty -five hundredths of o ne percent (0.25%) |
|---|
| 2131 | 3149 | | when annual qualified subcontract labor ho urs are less than Two |
|---|
| 2132 | 3150 | | Hundred Thousand Dollars ($200,000.00) or when annual qualified |
|---|
| 2164 | 3206 | | Dollars ($200,000.00) of annual total qualified subcontractor labor |
|---|
| 2165 | 3207 | | hours and these hours are a minimum of one percent (1%) of the |
|---|
| 2166 | 3208 | | annual total qualified hours claimed; |
|---|
| 2167 | 3209 | | 3. Not be less than one percent (1%) when subcontract goals are |
|---|
| 2168 | 3210 | | met with a minimum of One Million Dollars ($1,000,000.00) of annual |
|---|
| 2169 | 3211 | | total qualified subcontractor labor hours and when these hours |
|---|
| 2170 | 3212 | | represent a minimum of five perc ent (5%) of the annual total |
|---|
| 2171 | 3213 | | qualified hours claimed; |
|---|
| 2172 | 3214 | | 4. Not be less than one and five -tenths percent (1.5%) when |
|---|
| 2173 | 3215 | | subcontract goals are met with a minimum of Two Million Dollars |
|---|
| 2174 | 3216 | | ($2,000,000.00) of annual total qualified subcontractor labor hours |
|---|
| 2175 | 3217 | | and these hours are a minimum of ten percent (1 0%) of the annual |
|---|
| 2176 | 3218 | | total qualified hours claimed; and |
|---|
| 2177 | 3219 | | 5. Not be less than two percent (2.0%) when subcontract goals |
|---|
| 2178 | 3220 | | are met with a minimum of Four Million Dollars ($4,000,000.00) of |
|---|
| 2179 | 3221 | | annual total qualified subcontractor labor hours and these hours are |
|---|
| 2180 | 3222 | | a minimum of twenty percent (20%) of the annual total qualified |
|---|
| 2181 | 3223 | | hours claimed. |
|---|
| 2182 | 3224 | | C. In order to receive incentive payments, a qualified federal |
|---|
| 2183 | 3225 | | contractor shall apply to the Oklahoma Department of Commerce within |
|---|
| 2215 | 3281 | | information as may be required by the Department to determin e if the |
|---|
| 2216 | 3282 | | applicant is qualified. Once qualified by the Department, the |
|---|
| 2217 | 3283 | | applicant shall submit qualified federal contracts to the federal |
|---|
| 2218 | 3284 | | contract verifier. The federal contract verifier shall e stablish |
|---|
| 2219 | 3285 | | with the applicant an informa tion system(s) or contr act(s) as may be |
|---|
| 2220 | 3286 | | required to certify the total qualified labor hours, qualified labor |
|---|
| 2221 | 3287 | | rates, and reimbursement through the qualified federal contract. A |
|---|
| 2222 | 3288 | | qualified federal contractor may apply fo r an effective date for a |
|---|
| 2223 | 3289 | | project, which shall not be more th an twenty-four (24) months from |
|---|
| 2224 | 3290 | | the date the application is submitted to the Department. No state |
|---|
| 2225 | 3291 | | agency shall be required to make any payment to a qualified federal |
|---|
| 2226 | 3292 | | contract verifier for any in formation needed by the agency to |
|---|
| 2227 | 3293 | | perform any duty imposed up on it pursuant to the provisions of |
|---|
| 2228 | 3294 | | Section 3601 et seq. of this title. All costs for the federal |
|---|
| 2229 | 3295 | | contract verifier shall be reimbursed through value -added services |
|---|
| 2230 | 3296 | | on the qualified federal cont ract or other mechanisms agreed to by |
|---|
| 2231 | 3297 | | the federal contractor verifier and the federal contract performers. |
|---|
| 2232 | 3298 | | D. In order to qualify to receive incentive payments as |
|---|
| 2233 | 3299 | | authorized by the Oklahoma Quality Jobs Program Act, in addition to |
|---|
| 2234 | 3300 | | other qualifications spe cified herein, a qualified federal |
|---|
| 2265 | 3355 | | a. One one hundred ten percent (110%) of the average |
|---|
| 2266 | 3356 | | county wage as determined by the Department of |
|---|
| 2267 | 3357 | | Commerce based on the most recent U.S. Department of |
|---|
| 2268 | 3358 | | Commerce data for the county in whic h the new direct |
|---|
| 2269 | 3359 | | jobs are located. For purposes of this paragraph, |
|---|
| 2270 | 3360 | | health care premiums paid by the applicant for |
|---|
| 2271 | 3361 | | individuals in new direct jobs shall be included in |
|---|
| 2272 | 3362 | | the annualized wage;, or |
|---|
| 2273 | 3363 | | 2. b. One one hundred percent (100%) of the average county |
|---|
| 2274 | 3364 | | wage as that percentage is determined by the |
|---|
| 2275 | 3365 | | Department of Commerce based upon the most rece nt U.S. |
|---|
| 2276 | 3366 | | Department of Commerce data for the co unty in which |
|---|
| 2277 | 3367 | | the new jobs are located . For purposes of this |
|---|
| 2278 | 3368 | | paragraph, health care premiums paid by the applicant |
|---|
| 2279 | 3369 | | for individuals in new direct jobs shall not be |
|---|
| 2280 | 3370 | | included in the annualized wage ; and |
|---|
| 2281 | 3371 | | 2. For applications submitted on or after January 1, 2024, one |
|---|
| 2282 | 3372 | | hundred percent (100%) of the average county wage for the county in |
|---|
| 2283 | 3373 | | which the new direct jobs are located or one hundred percent (100%) |
|---|
| 2284 | 3374 | | of the average state wage , whichever is greater, as determined by |
|---|
| 2285 | 3375 | | the Department of Commerce based on the most recent U.S. Department |
|---|
| 2316 | 3430 | | Provided, no average wage requirement shall exceed Twenty -nine |
|---|
| 2317 | 3431 | | Thousand Four Hundred Nine Dollar s ($29,409.00), in any county, for |
|---|
| 2318 | 3432 | | applications submitted before January 1, 2024. This maximum wage |
|---|
| 2319 | 3433 | | threshold shall be indexed and modified fro m time to time based on |
|---|
| 2320 | 3434 | | the latest Consumer Price Index year-to-date percent change release |
|---|
| 2321 | 3435 | | as of the date of th e annual average county wage data release from |
|---|
| 2322 | 3436 | | the Bureau of Economic Analysis of the U.S. Departme nt of Commerce. |
|---|
| 2323 | 3437 | | 3. For qualified subcontract or work, the qualified federal |
|---|
| 2324 | 3438 | | contractor shall have a minimum average qua lified labor rate |
|---|
| 2325 | 3439 | | requirement paid to the subcontractor of Th irty-one Dollars ($31.00) |
|---|
| 2326 | 3440 | | per hour, in any county. This maximum wage threshold shall be |
|---|
| 2327 | 3441 | | indexed and modified from time t o time based on the latest Consumer |
|---|
| 2328 | 3442 | | Price Index year-to-date percent change release as of the date of |
|---|
| 2329 | 3443 | | the annual average county wage da ta release from the Bureau of |
|---|
| 2330 | 3444 | | Economic Analysis of the U.S. Department of Commerce. |
|---|
| 2331 | 3445 | | E. The Department shall determine if the applicant is qualified |
|---|
| 2332 | 3446 | | to receive incentive payments using informatio n supplied to the |
|---|
| 2333 | 3447 | | Department by the qu alified federal contrac tor verifier. The NAICS |
|---|
| 2334 | 3448 | | code or codes under which the federal government awarded the |
|---|
| 2335 | 3449 | | qualified federal contract shall be used to determine the basic |
|---|
| 2336 | 3450 | | industry for a qualified federal contractor. For federal contracts |
|---|
| 2367 | 3505 | | verifier, may evaluate and utilize ind ividual statement of work |
|---|
| 2368 | 3506 | | items that would qualify within a b asic industry definition. |
|---|
| 2369 | 3507 | | F. If the applicant is determined to be qualified by the |
|---|
| 2370 | 3508 | | Department, the Department shall cond uct a cost/benefit analysis to |
|---|
| 2371 | 3509 | | determine the estimated net direct state be nefits and the net |
|---|
| 2372 | 3510 | | benefit rate, as provided by subsection B of this section, |
|---|
| 2373 | 3511 | | applicable for a ten -year period beginning with the first complete |
|---|
| 2374 | 3512 | | calendar quarter following the start date and to estimate the amount |
|---|
| 2375 | 3513 | | of gross payroll and total qualified labor hours for a ten-year |
|---|
| 2376 | 3514 | | period beginning with the first complet e calendar quarter following |
|---|
| 2377 | 3515 | | the start date. In conducting such cost/benefit analysis, the |
|---|
| 2378 | 3516 | | Department shall consider qua ntitative factors, such as the |
|---|
| 2379 | 3517 | | anticipated level of new tax revenues to th e state along with the |
|---|
| 2380 | 3518 | | added cost to the state of providing s ervices, and such other |
|---|
| 2381 | 3519 | | criteria as deemed appropriate by the Department. In no event shall |
|---|
| 2382 | 3520 | | incentive payments, cumulati vely, exceed the estimated net direct |
|---|
| 2383 | 3521 | | state benefits. Using this net cost /benefit analysis model, the |
|---|
| 2384 | 3522 | | Department may establish the ren ewable ten-year contract with a |
|---|
| 2385 | 3523 | | qualified federal contractor at the entity level to encompass any |
|---|
| 2386 | 3524 | | current or future quali fied federal contracts that meet the |
|---|
| 2418 | 3580 | | contract that has been cosigned by the federal contr actor verifier |
|---|
| 2419 | 3581 | | and the results of the cost/benefit analysis. The Tax Commission |
|---|
| 2420 | 3582 | | may require the qualified federal contractor, federal contract |
|---|
| 2421 | 3583 | | verifier, and qualified subcontractors to submit such additional |
|---|
| 2422 | 3584 | | information as may be necessary to administer t he provisions of the |
|---|
| 2423 | 3585 | | Oklahoma Quality Jobs Program Act. The approved qualified federal |
|---|
| 2424 | 3586 | | contractor shall file quarterly claims with the Tax Commission and |
|---|
| 2425 | 3587 | | shall continue to file such quarterly claims during the ten -year |
|---|
| 2426 | 3588 | | incentive period to show its continu ed eligibility for incentive |
|---|
| 2427 | 3589 | | payments, as provided in Section 3606 of this title, or until it is |
|---|
| 2428 | 3590 | | no longer qualified to receive incentive payments. The qualified |
|---|
| 2429 | 3591 | | federal contractor may be audited by the Tax Commission to verify |
|---|
| 2430 | 3592 | | such eligibility. Once the qualified federal contractor is |
|---|
| 2431 | 3593 | | approved, an agreement shall be deemed to exist between the |
|---|
| 2432 | 3594 | | qualified federal contractor and the State of Oklahoma, requiring |
|---|
| 2433 | 3595 | | the continued incentive payment to be made as long as the qualified |
|---|
| 2434 | 3596 | | federal contractor retains it s eligibility as defined in and |
|---|
| 2435 | 3597 | | established pursuant to this section and Sections 3603 and 3606 of |
|---|
| 2436 | 3598 | | this title and within the limitations contained in the Oklahoma |
|---|
| 2469 | 3655 | | does not equal or exceed Two Million Five Hundred Thousand Dollars |
|---|
| 2470 | 3656 | | ($2,500,000.00) within three (3) years of the start date, or does |
|---|
| 2471 | 3657 | | not equal or exceed actual annual gross qualified labor hours of Two |
|---|
| 2472 | 3658 | | Million Five Hundred Thousand Dollars ($2,500,000.00) at any other |
|---|
| 2473 | 3659 | | time during the ten-year period after the start date, the incentive |
|---|
| 2474 | 3660 | | payments shall not be made and shall not be re sumed until such time |
|---|
| 2475 | 3661 | | as the actual annual qualified labor hours exceed Two Million Five |
|---|
| 2476 | 3662 | | Hundred Thousand Dollars ($2,500,000.00). |
|---|
| 2477 | 3663 | | I. If the average annualized wage or minimum average qualified |
|---|
| 2478 | 3664 | | labor rate required by subsection H of this section is not me t |
|---|
| 2479 | 3665 | | during any calendar q uarter, the incentive payments shall not be |
|---|
| 2480 | 3666 | | made and shall not be resumed until such time as such requirements |
|---|
| 2481 | 3667 | | are met. |
|---|
| 2482 | 3668 | | J. Before approving a quarterly incentive payment for a |
|---|
| 2483 | 3669 | | qualified federal contract, the federal contract verifie r must first |
|---|
| 2484 | 3670 | | determine through the Department that neither the qualified federal |
|---|
| 2485 | 3671 | | contractor nor the subcontractor are receiving incentive paymen ts |
|---|
| 2486 | 3672 | | under the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs |
|---|
| 2487 | 3673 | | Act, the 21st Century Quality Jobs Incen tive Act or the Former |
|---|
| 2520 | 3730 | | Military Facility Development Act for the performance of the same |
|---|
| 2521 | 3731 | | such services under the qualified federal contract. If the |
|---|
| 2522 | 3732 | | qualified federal contractor or the sub contractor are receivin g or |
|---|
| 2523 | 3733 | | have an approved application for incentive payments under the |
|---|
| 2524 | 3734 | | Oklahoma Quality Jobs Program Act, the Saving Quality Jobs Act, the |
|---|
| 2525 | 3735 | | 21st Century Quality Jobs Incentive Act or the Former Milita ry |
|---|
| 2526 | 3736 | | Facility Development Act for the pe rformance of the same s uch |
|---|
| 2527 | 3737 | | services under the qualified federal contract, each may choose to |
|---|
| 2528 | 3738 | | defer in part or in entirety the other incentives f or the qualified |
|---|
| 2529 | 3739 | | federal contractor to receive the incentives pursuant to subsection |
|---|
| 2530 | 3740 | | B of this section. The fed eral contract verifier shall confirm any |
|---|
| 2531 | 3741 | | deferrals and ensure the total for all quality jobs incentive |
|---|
| 2532 | 3742 | | payments on any individual does not excee d the total net benefit to |
|---|
| 2533 | 3743 | | the state. Should neither the federal contract or nor the |
|---|
| 2534 | 3744 | | subcontractor defer in part or in entirety their i ncentive payments |
|---|
| 2535 | 3745 | | such that the total for all Quality Jobs incentive payments exceeds |
|---|
| 2536 | 3746 | | the total net benefit to the state, the priority for incentive |
|---|
| 2537 | 3747 | | payments shall go to the entity with the earli est recognized start |
|---|