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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 4064 By: Wallace
AS INTRODUCED
An Act relating to public finance; creating the
Oklahoma Small Business Expans ion and Jobs Act;
providing for certain reference; defining terms;
authorizing certain uses of certain funds; requiring
certain actions prior to loan administration;
requiring the development of a revolving loan
program; requiring certain program criteria and
processes; requiring certain quarterly reporting;
prohibiting certain actions; creating the Small
Business Expansion Revolving Fund; establishing the
Fund under the Oklahoma Center for the Advancement of
Science and Technology; establishing revolving fund
characteristics; authorizing and limiting expenditure
and budgeting of funds; creating accounts with the
Fund; providing for allocation Fund balance among the
accounts; authorizing opt in feature to program;
providing opt in process; 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 2031 of Title 62, unless there
is created a duplication in numberi ng, reads as follows:
This act shall be known and may be cited as the "Oklahoma Small
Business Expansion and Jobs Act ."
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2032 of Title 62, unless there
is created a duplication in numbering, reads as follows:
As used in the Oklahoma Small Business Expansion and Jobs Act :
1. "Fixed interest rate" means an interest rate no greater than
three percent (3%) above the prime rate as published in the W all
Street Journal at the beginning of the month in which the applicant
requests a loan;
2. "Opt in" means the option an entity shall have to receive or
refuse funds for the purpose of establishing a revolving loan fund;
3. "Revolving loan fund" means a fund in which local small
businesses may obtain a loan and repay such loan principal and
interest, and such repayment proceeds are then used to fund
subsequent loans or expansions of services by the loan-making
entity, including ongoing administrative and operating costs;
4. "Small business" means a corporation, sole proprieto r,
partnership, or limited liability company that is an employer in the
state that has 50 employees or fewer as defined in paragraph 3 of
Section 502 of Title 75 of the Oklahoma Statut es; and
5. "Substate planning dis trict" means an entity as descri bed in
subsection A of Section 2007 of Title 62 of the Oklahoma Statutes .
SECTION 3. NEW LAW A new section o f law to be codified
in the Oklahoma Statutes as Section 2033 of Title 62, unless there
is created a duplication in numbering, reads as follows:
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A. Each substate planning district is authorized to utilize the
funds in the district's applicable account created pursuant to
subsection B of Section 4 of the Oklahoma Small Business Expansion
and Jobs Act:
1. To capitalize a revolving loan fund to support small
business expansion; and
2. To cover costs associated with administering the revolving
loan fund.
B. Prior to the administration of a loan application under the
provisions of the Oklahoma Small Business Expansion and Jobs Act ,
substate planning districts shall promulgate rules for the creation,
application, and administration of th e district's revolving loan
program.
C. Each substate planning district utilizing the Oklahoma Small
Business Expansion and Jobs Act shall develop a revolving loan
program. Such program shall adhere to the following criteria and
requirements:
1. Loan applicants:
a. shall be classified as a small business or
municipality to be eligible for a loan under the
program,
b. shall live within the boundaries of the substate
planning district administering the program ,
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c. shall have their business located within the
boundaries of the su bstate planning district
administering the pr ogram, and
d. shall not be directly related to any individual
involved in the awarding of loans under the revolving
loan program;
2. Substate planning districts :
a. shall charge a fixed interest rate on all loa ns
administered through the revolving loan p rogram, and
b. shall not make any loan to itself or another substate
planning district.
D. Each substate planning district utilizing the Oklahoma Small
Business Expansion and Jobs Act shall submit to the Oklahom a Center
for the Advancement of Science and Technology in written or
electronic format, a quarterly report detailing the activity of the
applicable revolving loan pro gram, including, but not limited to,
the number and amount of loans initiated, administere d, and
concluded during the previous quarter.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2034 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Center for the Advancement of Science and
Technology to be designated the "Small Business Expansion Revolving
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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
said fund are hereby appropriated and may be budgeted and expended
by the Oklahoma Center for the Advancement of Sc ience and Technology
in accordance with the provisions of the Oklahoma Small Business
Expansion and Jobs Act to facilitate financing of Oklahoma small
businesses by capitalizing revolving loan programs across the state.
Expenditures from said fund shall be made upon warrants issued by
the State Treasurer against claims file d as prescribed by law with
the Director of the Office of Management and Enterprise Serv ices for
approval and payment .
B. Within the Small Business Expansion Revolving Fund there
shall be established up to eleven (11) separate accounts into which
shall be deposited equal allocations of such funds as may be
provided to the Small Business Expa nsion Revolving Fund by law . One
of each such accounts shall be available to each substate planning
district described in subsection A of Section 2007 of Title 62 of
the Oklahoma Statutes that elects to opt in and participate in the
Oklahoma Small Business Expansion and Jobs Act . A substate planning
district may opt in to the Oklahoma Small Business Expansion an d
Jobs Act by communicating in written or electronic for m such intent,
no later than ninety (90) days after the effective date of this act.
SECTION 5. This act shall become effective July 1, 2024.
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SECTION 6. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
59-2-8561 JM 01/05/24