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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1293 By: McCall
COMMITTEE SUBSTITUTE
An Act relating to public finance; enacting the
Allied Investments in Oklahoma Act of 2024; defining
terms; prescribing conditions for eligibility for tax
credits or other benefits; providing procedures for
reporting violations; imposing duties on Oklahoma
Department of Commerce; providing for exc lusions from
scope of act; providing for agreements related to
recovery of benefits; authorizing imposition of
penalty amount; providing for codification; providing
an effective date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 10001 of Title 62, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Allied
Investments in Oklahoma Act of 2024".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 10002 of Title 62, unless there
is 4reated a duplication in numbering, reads as follows:
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The purpose of this act is to prohibit tax credits and other
economic or financial incentives for companies domiciled within
countries of concern.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 10003 of Title 62, unless there
is created a duplication in numbering, reads as follows:
As used in this act:
1. "Contracts" shall mean agreements between an employer and
the state, a state agency, a political subdivision of the state, or
an agency of a political subdivision of the state;
2. "Country of concern" shall mean any country designated by
the United States Secretary of State as hostile or a Country of
Particular Concern (CPC);
3. "Domicile" shall mean either the country in which a company
is registered, or where the company’s affairs are primarily
completed, or where the plural ity of ownership share is held ;
4. "Employer" shall mean a business entity that voluntarily
pursues tax credits or other financial or economic incentives
covered under this act or enters into an agreement with the state or
a political subdivision thereof for the purpose of receiving tax
credits or other financial or economic incentives ;
5. "Financial or economic incentive " shall mean anything of
financial or economic value that is offered by the state government
or a political subdivision thereof for the purpos e of incentivizing
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an employer to invest, expand, locate facilities, locate employees ,
or otherwise deepen its economic engagement within Oklahoma;
6. "Subcontractor" shall mean an individual or entity that has
contracted with an employer to perform work or p rovide services; and
7. "Tax credit" shall mean any amount authorized, through a
contract, program, or agreement between an employer and the state,
that subtracts directly from an entity's total tax liability.
SECTION 4. NEW LAW A new s ection of law to be codified
in the Oklahoma Statutes as Section 10004 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. To be eligible to receive a tax credit or other economic or
financial benefit from Oklahoma or one of its political
subdivisions, an employer must not:
1. Be domiciled within a country of concern ;
2. Be owned by the government of a country of concern ;
3. Be owned by a company domiciled within a country of concern ;
4. Contract with employers or subcontractors dom iciled within a
country of concern.
B. The prohibitions set out in subsection A of this section
shall apply to any work or service for the employer on the project
for which the tax credit is provided.
SECTION 5. NEW LAW A new sectio n of law to be codified
in the Oklahoma Statutes as Section 10005 of Title 62, unless there
is created a duplication in numbering, reads as follows:
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A. A person or entity may report, based upon a reasonable
belief, a suspected violation of subsection A of Section 4 of this
act to the Oklahoma Department of Commerce provided that such report
must be made within one (1) year of the end of the term of the
agreement entered into by the Department of Commerce and the
employer. Upon receiving a report pursuant to this subsection, the
Department of Commerce shall obtain in writing a statement from the
employer on whether a violation has occurred, and shall
independently determine whether such a violation occurred.
B. It is a breach of the relevant agreement entered into
between the Department of Commerce and the employer for the employer
to refuse to provide the written statement.
C. If the Department of Commerce finds that an employer has
violated subsection B of Section 4 of this act, then the Department
shall deliver written notice of the Department's findings to the
employer informing the employer and the Office of the Attorney
General in order to initiate proceeding s to recover any funds and
penalties pursuant to subsection B of Section 6 of this a ct.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 10006 of Title 62, unless there
is created a duplicat ion in numbering, reads as follows:
A. This act applies prospectively and excludes:
1. An agreement between this state and an employer executed
prior to the effective date of this act;
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2. An agreement between an employer and a country of concern
executed prior to the effective date of this act .
B. Notwithstanding any law to the contrary, prior to
contracting to award a tax credit or other economic or financial
incentive, as defined in subsection A of Section 4 of this act and
limited by subsection B of Section 4 of this act, the Oklahoma
Department of Commerce and any other state agency or political
subdivision of the state must execute a separate agreement with the
recipient of the credit that reserves the right of the Department to
recover the amount o f money, grants, funds, or other incentives
disbursed by the Department if the recipient benefiting from su ch
money, grants, funds, or other incentives fails to comply with
subsection B of Section 4 of this act.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 10007 of Title 62, unless there
is created a duplication in numbering, reads as follows:
The Attorney General may impose a penalty equal to fifty percent
(50%) of the total value of any tax credit or other financial or
economic incentive upon any employer found in violation of this act.
SECTION 8. This act shall become effective July 1, 2024.
SECTION 9. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this ac t shall take effect
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and be in full force from and after its passage an d approval.
59-2-10410 LRB 02/22/24