OK
Oklahoma House Bill HB1293

Oklahoma 2024 Regular Session

Oklahoma House Bill HB1293 Compare Versions

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28-ENGROSSED HOUSE
29-BILL NO. 1293 By: McCall of the House
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31- and
31+STATE OF OKLAHOMA
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33- Dahm of the Senate
33+2nd Session of the 59th Legislature (2024)
34+
35+COMMITTEE SUBSTITUTE
36+FOR
37+HOUSE BILL NO. 1293 By: McCall
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43+COMMITTEE SUBSTITUTE
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3845 An Act relating to public finance; enacting the
39-Allied Investments in Oklahoma Act of 2024; stating
40-purpose of act; defining terms; prescribing
41-conditions for eligibility for tax credits or other
42-benefits; providing procedures for reporting
43-violations; imposing duties on Oklahoma Department of
44-Commerce; providing for exc lusions from scope of act;
45-providing for agreements related to recovery of
46-benefits; authorizing imposition of penalty amount;
47-providing for codification; providing an effective
48-date; and declaring an emergency.
46+Allied Investments in Oklahoma Act of 2024; defining
47+terms; prescribing conditions for eligibility for tax
48+credits or other benefits; providing procedures for
49+reporting violations; imposing duties on Oklahoma
50+Department of Commerce; providing for exc lusions from
51+scope of act; providing for agreements related to
52+recovery of benefits; authorizing imposition of
53+penalty amount; providing for codification; providing
54+an effective date; and declaring an emergency.
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5461 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5562 SECTION 1. NEW LAW A new section of law to be codified
5663 in the Oklahoma Statutes as Section 10001 of Title 62, unless there
5764 is created a duplication in numbering, reads as follows:
5865 This act shall be known and may be cited as th e "Allied
5966 Investments in Oklahoma Act of 2024".
60-SECTION 2. NEW LAW A new section of law to be codified
61-in the Oklahoma Statutes as Section 10002 of Title 62, unless there
62-is created a duplication in numbering, reads as follows:
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94+SECTION 2. NEW LAW A new section of law to be codified
95+in the Oklahoma Statutes as Section 10002 of Title 62, unless there
96+is 4reated a duplication in numbering, reads as follows:
8997 The purpose of this act is to prohibit tax credits and other
9098 economic or financial incentives for companies domiciled within
9199 countries of concern.
92100 SECTION 3. NEW LAW A new section of law to be codified
93101 in the Oklahoma Statutes as Sectio n 10003 of Title 62, unless there
94102 is created a duplication in numbering, reads as follows:
95103 As used in this act:
96104 1. "Contracts" shall mean agreements between an employer and
97105 the state, a state agency, a political subdivision of the state, or
98106 an agency of a political subdivision of the state;
99107 2. "Country of concern" shall mean any country designated by
100108 the United States Secretary of State as hostile or a Country of
101109 Particular Concern (CPC);
102110 3. "Domicile" shall mean either the country in which a company
103111 is registered, or where the company’s affairs are primarily
104112 completed, or where the plural ity of ownership share is held ;
105113 4. "Employer" shall mean a business entity that voluntarily
106114 pursues tax credits or other financial or economic incentives
107115 covered under this act or enters into an agreement with the state or
108116 a political subdivision thereof for the purpose of receiving tax
109117 credits or other financial or economic incentives ;
110-5. "Financial or economic incentive " shall mean anything of
111-financial or economic va lue that is offered by the state government
112-or a political subdivision thereo f for the purpose of incentivizing
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145+5. "Financial or economic incentive " shall mean anything of
146+financial or economic va lue that is offered by the state government
147+or a political subdivision thereof for the purpos e of incentivizing
139148 an employer to invest, expand, locate facilities, locate employees ,
140149 or otherwise deepen its economic engagement within Oklahoma;
141150 6. "Subcontractor" shall mean an individual or entity that has
142151 contracted with an employer to perform work or p rovide services; and
143152 7. "Tax credit" shall mean any amount authorized, through a
144153 contract, program, or agreement between an employer and the state,
145154 that subtracts directly from an entity's total tax liability.
146155 SECTION 4. NEW LAW A new s ection of law to be codified
147156 in the Oklahoma Statutes as Section 10004 of Title 62, unless there
148157 is created a duplication in numbering, reads as follows:
149158 A. To be eligible to receive a tax credit or other economic or
150159 financial benefit from Oklahoma or one of its political
151160 subdivisions, an employer must not:
152161 1. Be domiciled within a country of concern ;
153162 2. Be owned by the government of a country of concern ;
154163 3. Be owned by a company domiciled within a country of concern ;
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156164 4. Contract with employers or subcontractors dom iciled within a
157165 country of concern.
158166 B. The prohibitions set out in subsection A of this section
159167 shall apply to any work or service for the employer on the project
160168 for which the tax credit is provided.
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187196 SECTION 5. NEW LAW A new sectio n of law to be codified
188197 in the Oklahoma Statutes as Section 10005 of Title 62, unless there
189198 is created a duplication in numbering, reads as follows:
190199 A. A person or entity may report, based upon a reasonable
191200 belief, a suspected violation of subsection A of Section 4 of this
192-act to the Oklahoma Department of Commerce, provided that such
193-report must be made within one (1) year of the end of the term of
194-the agreement entered into by the Department of Commerce and the
201+act to the Oklahoma Department of Commerce provided that such report
202+must be made within one (1) year of the end of the term of the
203+agreement entered into by the Department of Commerce and the
195204 employer. Upon receiving a report pursuant to this subsection, the
196-Department of Commerce shall obtain, in writing, a statement from
197-the employer on whether a violation has occurred, a nd shall
205+Department of Commerce shall obtain in writing a statement from the
206+employer on whether a violation has occurred, a nd shall
198207 independently determine whether such a violation occurred.
199208 B. It is a breach of the relevant agreement entered into
200209 between the Department of Commerce and the employer for the employer
201210 to refuse to provide the written statement.
202211 C. If the Department of Commerce finds that an employer has
203-violated subsection A of Section 4 of this act, then the Department
212+violated subsection B of Section 4 of this act, then the Department
204213 shall deliver written notice of the Department's findings to the
205214 employer informing the employer and the Office of the Attorney
206215 General in order to initiate proceeding s to recover any funds and
207216 penalties pursuant to subsection B of Section 6 of this a ct.
208217 SECTION 6. NEW LAW A new section of law to be codified
209218 in the Oklahoma Statutes as Section 10006 of Title 62, unless there
210219 is created a duplicat ion in numbering, reads as follows:
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237247 A. This act applies prospectively and excludes:
238248 1. An agreement between this state and an employer executed
239-prior to the effective date of this act; or
249+prior to the effective date of this act;
240250 2. An agreement between an employer and a cou ntry of concern
241251 executed prior to the effective date of this act .
242252 B. Notwithstanding any law to the contrary, prior to
243253 contracting to award a tax credit or other economic or financial
244254 incentive, as defined in subsection A of Section 4 of this act and
245255 limited by subsection B of Section 4 of this act, the Oklahoma
246256 Department of Commerce and any other state agency or political
247257 subdivision of the state must execute a separate agreement with the
248258 recipient of the credit that reserves the right of the Department to
249259 recover the amount o f money, grants, funds, or other incentives
250260 disbursed by the Department if the recipient benefiting from su ch
251261 money, grants, funds, or other incentives fails to comply with
252262 subsection B of Section 4 of this act.
253263 SECTION 7. NEW LAW A new section of law to be codified
254264 in the Oklahoma Statutes as Section 10007 of Title 62, unless there
255265 is created a duplication in numbering, reads as follows:
256266 The Attorney General may impose a penalty equal to fifty percent
257267 (50%) of the total value of any tax credit or other financial or
258268 economic incentive upon any employer found in violation of this act.
259269 SECTION 8. This act shall become effective July 1, 2024.
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286297 SECTION 9. It being immediately necessa ry for the preservation
287298 of the public peace, health or safety, an emergency is hereby
288299 declared to exist, by reason whereof this ac t shall take effect and
289300 be in full force from and after its passage an d approval.
290-Passed the House of Representatives the 13th day of March, 2024.
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295- Presiding Officer of the House
296- of Representatives
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299-Passed the Senate the ___ day of __________, 2024.
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304- Presiding Officer of the Senate
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302+COMMITTEE REPORT BY: COMMITTEE ON RULES, da ted 03/04/2024 - DO PASS,
303+As Amended.