OK
Oklahoma House Bill HB4064

Oklahoma 2024 Regular Session

Oklahoma House Bill HB4064 Compare Versions

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28-STATE OF OKLAHOMA
29-
30-2nd Session of the 59th Legislature (2024)
31-
32-COMMITTEE SUBSTITUTE
33-FOR ENGROSSED
34-HOUSE BILL 4064 By: Wallace of the House
28+ENGROSSED HOUSE
29+BILL NO. 4064 By: Wallace of the House
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3631 and
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3833 Hall of the Senate
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43-
44-COMMITTEE SUBSTITUTE
45-
46-An Act relating to state fiscal affairs ; creating the
47-OK Invest Advisory Commission; designating membership
48-appointments; prescribing member qualifications;
49-prohibiting certain interest; designating chair;
50-providing for quorum; providing certain
51-reimbursement; authorizing promulgation of rules;
52-requiring certain annual plan; creating the OK Invest
53-Fund; providing sources of funds; providing for
54-investment of funds; prescribing fixed rate and terms
55-of investments; requiring income, interest, and
56-investment returns to accrue to the balance of the
57-fund; providing for codification; and providing an
58-effective date.
38+An Act relating to public finance; creating the
39+Oklahoma Small Business Expans ion and Jobs Act;
40+defining terms; authorizing certain uses of certain
41+funds; requiring certain actions prior to loan
42+administration; requiring the development of a
43+revolving loan program; requiring certain program
44+criteria and processes; requiring certain quarterly
45+reporting; prohibiti ng certain actions; creating the
46+Small Business Expansion Revolving Fund; establishing
47+the fund under the Oklahoma Center for the
48+Advancement of Science and Technology; establishing
49+revolving fund characteristics; authorizing and
50+limiting expenditure and budgeting of funds; creating
51+accounts within the fund; providing for allocation of
52+fund balance among the accounts; authorizing opt-in
53+feature to program; providing opt -in process;
54+providing for the pr omulgation of rules; providing
55+for codification; providing an effective da te; and
56+declaring an emergency.
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6462 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6563 SECTION 1. NEW LAW A new section of law to be codified
66-in the Oklahoma Statutes as Section 89.12 of Title 62, unless there
64+in the Oklahoma Statutes as Section 2031 of Title 62, unless there
6765 is created a duplication in numbering, reads as follows:
68-A. There is hereby created the OK Invest Ad visory Commission to
69-develop plans for investment from the OK Invest Fund created
66+This act shall be known and may be cited as the "Oklahoma Small
67+Business Expansion and Jobs Act ".
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96-pursuant to Section 2 of this act. The Commission shall con sist of
97-seven (7) members as follows:
98-1. Two members appointed by the President Pro Tempore of the
99-Senate;
100-2. Two members appointed by the Speaker of the House of
101-Representatives;
102-3. Two members appointed by the Governor; and
103-4. The State Treasurer .
104-All appointees shall be from the public at large. Within thirty
105-(30) days of the effective date of this act, the ap pointing
106-authorities shall appoint new members to the Commission. Members
107-shall serve at the will of the appointing authority . The appointing
108-authorities shall appoint members who possess knowledge, skills, and
109-abilities to perform the duties of the Commission. No member of the
110-Commission shall be interested, directly or indirectly, in any
111-investment in an entity, or contract entered into with an entity
112-approved by the Commission during the period of service of the
113-member, nor shall any person be appoint ed as a member of the
114-Commission if such person is interested, directly or indirectly, in
115-any investment in an entity, or contract entered int o with an entity
116-approved prior to the appointment. An indirect interest shall
117-include, but not be limited to, an interest of an immediate family
118-member of the member of the Commission or a business with which the
119-member of the Commission is associate d.
94+SECTION 2. NEW LAW A new section of law to be codified
95+in the Oklahoma Statutes as Section 2032 of Title 62, unless there
96+is created a duplication in numbering, reads as follows:
97+As used in the Oklahoma Small Business Expansion and Jobs Act :
98+1. "Fixed interest rate" means an interest rate no greater than
99+three percent (3%) above the prime rate as published in the Wall
100+Street Journal at the beginning of the month in which the applicant
101+requests a loan;
102+2. "Opt in" means the option an entity shall have to receive or
103+refuse funds for the purpose of establishing a revolving loan fund;
104+3. "Revolving loan fund" means a fund in which local small
105+businesses may obtain a loan and repay such loan principal and
106+interest, and such repayment proceeds are then used to fund
107+subsequent loans or expansions of services by the loan-making
108+entity, including ongoing administrative and operating costs;
109+4. "Small business" means a corporation, sole proprieto r,
110+partnership, or limited liability company that is an employer in
111+this state that has fifty employees or fewer as defined in paragraph
112+3 of Section 502 of Title 75 of the Oklahoma Statutes; and
113+5. "Substate planning district" means an entity as descri bed in
114+subsection A of Section 2007 of Title 62 of the Oklahoma Statutes .
115+SECTION 3. NEW LAW A new section o f law to be codified
116+in the Oklahoma Statutes as Section 2033 of Title 62, unless there
117+is created a duplication in numbering, reads as follows:
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146-B. The State Treasurer shall serve as the chair of the
147-Commission. Four members of the Commission shall constitut e a
148-quorum. Members of the Commission shall serve without compensation,
149-but shall be entitled to reimbursement, pursuant to the State Travel
150-Reimbursement Act, for expenses incurred in the performance of their
151-duties.
152-C. The Oklahoma Center for the Advancement of Science and
153-Technology may promulgate rules to implement the provisions of this
154-section. The Center shall provide staffing for the Commission and
155-other such assistance as the Commission may require.
156-D. The Commission shall prepare an annual cap ital investment
157-plan. The plan shall determine options for investments, loans, seed
158-capital, or other forms of financing for entities headqua rtered and
159-investing in this state with monies within the OK Invest Fund.
160-SECTION 2. NEW LAW A new section of law to be codified
161-in the Oklahoma Statutes as Section 89.13 of Title 62, unless there
162-is created a duplication in numberi ng, reads as follows:
163-A. There is hereby created in the State Treasury a fund to be
164-known and designated as the “OK Invest Fund”. The fund shall be a
165-continuing fund, not subject to fiscal year limitations, and shall
166-consist of monies held by the State Treasury for investments.
167-B. The OK Invest Advisory Commission shall provide for the
168-investments, loans, seed capital, or other forms of financing of the
169-monies of the fund. Financing shall for terms of five (5) years
144+A. Each substate planning district is authorized to utilize the
145+funds in the district's applicable account created pursuant to
146+subsection B of Section 4 of the Oklahoma Small Business Expansion
147+and Jobs Act:
148+1. To capitalize a revolving loan fund to support s mall
149+business expansion; and
150+2. To cover costs associated with a dministering the revolving
151+loan fund.
152+B. Prior to the administration of a loan application under the
153+provisions of the Oklahoma Small Business Expansion and Jobs Act ,
154+substate planning districts shall promulgate rules for the creation,
155+application, and administration of the district's revolving loan
156+program.
157+C. Each substate planning district utilizing the Oklahoma Small
158+Business Expansion and Jobs Act shall develop a revolving loan
159+program. Such program shall adhere to the following criteria and
160+requirements:
161+1. Loan applicants:
162+a. shall be classified as a small business or
163+municipality to be eligible for a loan under the
164+program,
165+b. shall live within the boundaries of the substate
166+planning district administering the program ,
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196-with a fixed rate and no more than fo ur adjustable renewal terms;
197-provided, no term, including renewals, shall exceed twenty (20)
198-years.
199-C. The fund principal shall consist of monies held by the State
200-Treasury which are deposited in the fund. Notwithstanding any other
201-provisions of law, inc ome, interest, and investment return on fund
202-principal shall accrue to the fund.
203-SECTION 3. This act shall become effective November 1, 2024.
193+c. shall have their business located within the
194+boundaries of the su bstate planning district
195+administering the program, and
196+d. shall not be directly related to any individual
197+involved in the awarding of loans under the revolving
198+loan program; and
199+2. Substate planning districts :
200+a. shall charge a fixed interest rate on all loa ns
201+administered through the revolving loan program, and
202+b. shall not make any loan to itself or another substate
203+planning district.
204+D. Each substate planning district utilizing the Oklahoma Small
205+Business Expansion and Jobs Act shall submit to the Oklahom a Center
206+for the Advancement of Science and Technology, in written or
207+electronic format, a quarterly report detailing the activity of the
208+applicable revolving loan program, including, but not limited to,
209+the number and amount of loans initiated, administere d, and
210+concluded during the previous quarter.
211+SECTION 4. NEW LAW A new section of law to be codified
212+in the Oklahoma Statutes as Section 2034 of Title 62, unless there
213+is created a duplicatio n in numbering, reads as follows:
214+A. There is hereby created in the State Treasury a revolving
215+fund for the Oklahoma Center for the Advancement of Science and
216+Technology to be designated the "Small Business Expansion Revolving
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243+Fund". The fund shall be a continuing fund, not subject to fiscal
244+year limitations, and shall consist of all monies designated for
245+deposit to the fund by law. All monies accruing to the credit of
246+said fund are hereby appropriated and may be budgeted and expended
247+by the Oklahoma Center for the Advancement of Science and Technology
248+in accordance with the provisions of the Oklahoma Small Business
249+Expansion and Jobs Act to facilitate financing of Oklahoma small
250+businesses by capitalizing revolving loan programs across the state.
251+Expenditures from said fund shall be made upon warrants issued by
252+the State Treasurer against claims filed as prescribed by law with
253+the Director of the Office of Management and Enterprise Serv ices for
254+approval and payment .
255+B. Within the Small Business Expansio n Revolving Fund, there
256+shall be established up to eleven separate accounts into which shall
257+be deposited equal allocations of such funds as may be provided to
258+the Small Business Expa nsion Revolving Fund by law . One of each
259+such accounts shall be avai lable to each substate planning district
260+described in subsection A of Section 2007 of Title 62 of the
261+Oklahoma Statutes that elects to opt in and participate in the
262+Oklahoma Small Business Ex pansion and Jobs Act . A substate planning
263+district may opt in to the Oklahoma Small Business Expansion an d
264+Jobs Act by communicating in written or electronic form such intent
265+no later than ninety (90) days after the effective date of this act.
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292+C. The Director of the Oklahoma Center for the Advancement of
293+Science and Technology shall provide for the promulgation of rules
294+establishing procedu res for the administration and distribution of
295+the Small Business Expansion Revolving Fund.
296+SECTION 5. This act shall become effective July 1, 2024.
297+SECTION 6. It being immediately necessary for the preservation
298+of the public peace, health or safety, an emergency is hereby
299+declared to exist, by reason whereof thi s act shall take effect and
300+be in full force from and after its passage and approval.
301+Passed the House of Representatives the 26th day of February,
302+2024.
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307+ Presiding Officer of the House
308+ of Representatives
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311+Passed the Senate the ____ day of __________, 2024.
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