SENATE FLOOR VERSION - HB4019 SFLR Page 1 (Bold face denotes Committee Amendme nts) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION April 18, 2024 AS AMENDED ENGROSSED HOUSE BILL NO. 4019 By: McBride and Townley of the House and Alvord of the Senate [ economic development – investment rebate program – qualifying criteria – application – Oklahoma Department of Commerce – claims – payments – conditional pre-qualification – Commerce Manufacturing Activity Development Fund - codification ] BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of l aw to be codified in the Oklahoma Statutes as Section 3647.1 of Title 68, unless there is created a duplication in numbering, reads as follows: A. There is hereby created until July 1, 2030, an investment rebate program for the cost of qualified capital e xpenditures defined by Section 3645.3 of Title 68 of the Oklahoma Statutes, by establishments defined by Section 3645.3 of Title 68 of t he Oklahoma Statutes, that: 1. Are defined or classified in the NAICS Manual under Industry Group No. 325120; and SENATE FLOOR VERSION - HB4019 SFLR Page 2 (Bold face denotes Committee Amendme nts) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Have acquired real property located within the boundaries of a municipality with a population between twenty thousand (20,000) and thirty thousand (30,000), according to the latest Federal Decennial Census, where the qualified capital will be located. B. To be eligible for consideration for an investment rebate payment awarded under the provisions of this act, the establishment shall: 1. Submit an application and documentation to the Oklahoma Department of Commerce, as required by the Department, outlining a capital expenditure plan in this state associated with qualified capital expenditures totaling no less than Eight Hundred Million Dollars ($800,000,000.00); 2. Have made qualified capital expenditures of no less than twenty percent (20%) of the capital expenditure plan outlined in the application submitted by the primary establishment and approved by the Oklahoma Department of Commerce , pursuant to the provisions of this act; and 3. Have filed all Oklahoma tax returns and tax documents required by law. C. Notwithstanding any other provision of law, no investment expenditure shall be utilized for calculation purposes that results in the qualification of more than one establishment under the provisions of this act, for investment rebate payments based on the same expenditure. SENATE FLOOR VERSION - HB4019 SFLR Page 3 (Bold face denotes Committee Amendme nts) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 D. 1. The Oklahoma Department of Commerce shall approve or disapprove claims for rebates and shall issue paymen t for all approved claims from funds held in the Commerce Manufacturing Activity Development Fund created in Section 2 o f this act. 2. The Department shall disapprove all applications and claims or any portion of applications and claims for rebates that would exceed the balance of available funds in the Commerce Manufacturing Activity Development Fund. 3. The total amount of applications approved and investment rebate payments awarded under the provisions of this act shall not exceed the total amount of m onies designated by law for deposit to the Commerce Manufacturing Activity Development Fund. E. 1. Subject to the appr oval and ongoing review of the eligibility application by the Oklahoma Department of Commerce, the investment rebate payment authorized by this act shall be equal to six and twenty-five hundredths percent (6.25%) of the cost of the qualified capital expend iture in the year of expenditure. 2. The Department is authorized to conditionally pre -qualify and account for anticipated future inves tment rebate payments. The Oklahoma Department of Commerce shall not pre -qualify investment rebate payments, encumber f unds, pre-encumber funds, or otherwise allocate resources that would result in the allocation of investment rebate payments in excess of the balance of available funds in the Commerce Manufacturing Activity Development Fund. SENATE FLOOR VERSION - HB4019 SFLR Page 4 (Bold face denotes Committee Amendme nts) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3647.2 of Title 68, unless there is created a duplication in numbering, reads as follows: A. There is hereby created in the State Treasury a fund for the Oklahoma Department of Commerce to be designated the "Commerce Manufacturing Activity Development Fund". The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies designated for deposit to the fund by law. All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the Department for the purpose of paying reb ates as provided in this act. Expenditures from such fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. B. All unencumbered funds remaining in the Commerce Manufacturing Activity Development Fund upon January 1, 2030, shall be transferred to the State Treasurer for deposit in the General Revenue Fund. COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS April 18, 2024 - DO PASS