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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 760 By: Kirt
AS INTRODUCED
An Act relating to the Oklahoma Capital Investm ent
Board; amending 74 O.S. 2021, Section s 5085.5,
5085.6, and 5085.15, which relate to the Oklahoma
Capital Formation Act; modifying definition;
dissolving Board upon certain date; transferring
certain contracts and management of certain
investments to the Oklahoma Center for the
Advancement of Science and Technology; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 5085.5, is
amended to read as follows:
Section 5085.5. For purposes of this act:
1. "Board" means the Oklahoma Capital Investment Board Center
for the Advancement of Science an d Technology;
2. "Director" means any person who is a member of the Board;
3. "Equity capital" means capital invested in common or
preferred stock, royalty rights, limited partnership inter ests, and
any other securities or rights that evidence ownership in private
businesses;
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4. "Investor group" means any individual, corporation,
partnership or other lawfully organized entity;
5. "Near-equity capital" means capital invested in unsecured,
undersecured, subordinated or convertible loans or debt securities;
6. "Persons" means individuals, corporations, partnerships or
other lawfully organized entities;
7. "Put option" means a right or privil ege to sell an amount of
a particular security or c lass of securities during a time period
ending on the expiration date of the option; and
8. "Tax credits" means tax credits available against
liabilities imposed by Section 2355 of Title 68 of the Oklahom a
Statutes or Section 624 of Title 36 of the Oklaho ma Statutes and
issued or transferred pursuant to this act.
a. The tax credits issued or transferred pursuant to the
Oklahoma Capital Formation Act, upon election by the
purchaser at utilization, will be t reated as a payment
or prepayment in lieu of tax im posed under Section
2355 of Title 68 of the Oklahoma Statutes;
b. Tax credits utilized pursuant to subparagraph a of
this paragraph shall be treated and may be claimed as
a payment of tax or estimated tax for the purposes of
and as defined in Sections 2375 , 2385.9 and 2385.13 of
Title 68 of the Oklahoma Statutes. Such tax credits
are further subject to the system developed in
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conjunction with the Oklahoma Tax Commission as
required by subsection C of Secti on 5085.7 of this
title for registration and verifi cation of the tax
credits. Taxpayers may rely upon the provisions of
the registration and verification system developed
pursuant to Section 5085.7 of this title.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 5085.6, is
amended to read as follows:
Section 5085.6. A. The Oklahoma Capital Investment Board shall
consist of five (5) Directors who shall be appointed by the Governo r
with the advice and consent of the Senate. Directors s hall be
selected based upon outstanding knowledge a nd leadership and shall
possess experience in the management of investments similar in
nature and in value to those of the Board. Directors shall s erve
for a term of office of five (5) years. Provided, t he initial Board
of Directors of the Oklahoma Capit al Investment Board shall consist
of the trustees of the trust certified as the Oklahoma Capital
Investment Board pursuant to the provisions of Sect ion 2 of this act
and the Directors of the Oklahoma Capit al Investment Board who were
appointed pursuant to the provisions of Section 5061.6 of Title 74
of the Oklahoma Statutes. Positions on the Board of Directors held
by trustees of such trust shall not be filled as the terms of office
for said trustees expir e. Positions on the Board of Directors held
by Directors of the Oklahoma Capital Investment Board shall be
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filled by the Governor with the advice and consent of the Senate as
the terms of office for said Directors expire and in a manner to
allow one member to rotate off of the Board each year.
B. Annually, the Directors shall select a chairman to preside
at their meetings. The Directors shall have the authority to manage
the Oklahoma Capital Inves tment Board in accordance with the
requirements of this ac t and its trust indenture.
C. The meetings of the Directors shall be subject to the
Oklahoma Open Meeting Act, Section 301 et seq. of Title 25 of the
Oklahoma Statutes, and the Oklahoma Open Record s Act, Section 24A.1
et seq. of Title 51 of the Oklahoma S tatutes. Any information
submitted to or compiled by the Oklahoma Capital Investment Board
with respect to the marketing plans, financial statements, trade
secrets, research concepts, methods or pr oducts, or any other
proprietary information of persons, f irms, associations,
partnerships, agencies, corpora tions, or other entities shall be
confidential, except to the extent that the person or entity that
provided such information or that is the subject of such information
consents to disclosure. Executive s essions may be held to discuss
such materials if de emed necessary by the Directors.
D. A conflict of interest shall be deemed to exist in any
contractual relationship in which a Director of the Boar d, officer,
agent or employee or any for -profit firm or corporation in which
such Director, officer, agent o r employee or any member of his or
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her immediate family is an officer, partner, or principal
stockholder, shall directly or indirectly buy or sell g oods or
services to, or otherwise contract with the Board . Upon a showing
thereof, such Director, officer, agent, or employee shall be subject
to removal and such contract shall be deemed unenforceable as
against the Board unless the records of the Board s hall reflect that
such Director, officer, agent , or employee fully and publicly
disclosed all such interest or interests, and unless such
contractual relationship shall have been secured by competitive
bidding following a public invitation to bid. If a Dir ector,
officer, agent, or employee holds such an intere st, he or she shall
refrain from any further offici al involvement in regard to such
contract or agreement, from voting on any matter pertaining to such
contract or agreement, and from communicating with other Board
members, officers, agents , or employees concerning said contract or
agreement.
E. Bonds issued by the Oklahoma Capital Investment Board shall
be subject to oversight pursuant to the Oklahoma Bond Oversight and
Reform Act, Section 695.1 et seq. of Title 62 of the Oklahoma
Statutes.
F. Upon the effective date of this act, the Oklahoma Capital
Investment Board shall be dissolved. Any contracts or agreements
executed by the Board or b y any subsidiary or affiliate of the Board
and any investment of funds required by the provisions of a contract
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executed by the Board or by any subsidiary or affiliate of the Board
shall be transferred to and managed by the Oklahoma Center for the
Advancement of Science and Technology .
SECTION 3. AMENDATORY 74 O.S. 2021, Section 5085.15, is
amended to read as follows:
Section 5085.15. Within thirty (30) days after the Oklahoma
Capital Investment Board Oklahoma Center for the Advancement of
Science and Technology or any subsidiary or affiliate of the Board
Center has made payment of any remainin g expense or obligation
created by the Board Center or by the subsidiary or affiliate,
pursuant to the terms of any promissory note, loan agreement,
guaranty agreement, investment agreement or other contract or
agreement, any remaining monies paid to eithe r the Board Center or
any subsidiary or affiliate o f the Board Center pursuant to the
terms of an agreement or contract entered into prior to the
effective date of this act shall be paid by the Board or by its
subsidiary or affiliate to the General Revenue Fund of the State
Treasury.
SECTION 4. This act shall become effective November 1, 2023.
59-1-1411 QD 1/18/2023 6:26:54 PM