OK
Oklahoma Senate Bill SB1176

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1176 Compare Versions

OldNewDifferences
11
22
3+ENGR. S. B. NO. 1176 Page 1 1
4+2
5+3
6+4
7+5
8+6
9+7
10+8
11+9
12+10
13+11
14+12
15+13
16+14
17+15
18+16
19+17
20+18
21+19
22+20
23+21
24+22
25+23
26+24
327
4-An Act
5-ENROLLED SENATE
28+ENGROSSED SENATE
629 BILL NO. 1176 By: Thompson (Roger) and Hall
730 of the Senate
831
932 and
1033
1134 Wallace and Martinez of the
1235 House
1336
1437
1538
1639
1740 An Act relating to economic development; amending
1841 Sections 4 and 6, Chapter 66, O.S.L. 2022 (68 O.S.
1942 Supp. 2022, Sections 3645.4 and 3645.6), which relate
2043 to the Large-scale Economic Activity and Development
2144 Act of 2022; modifying certain job thresho ld
2245 requirement; requiring transfer of funds if certain
2346 commitment is not received by the Oklahoma Department
2447 of Commerce by certa in date; updating statutory
2548 language; updating statutory reference s; and
2649 declaring an emergency.
2750
2851
2952
3053
3154
3255
33-SUBJECT: Large-scale Economic Activity and Development Act of 2022
34-
3556 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
36-
3757 SECTION 1. AMENDATORY Section 4, Chapter 66, O.S.L. 2022
3858 (68 O.S. Supp. 2022, Section 3645.4), is amended t o read as follows:
39-
4059 Section 3645.4. A. 1. There is hereby created until July 1,
4160 2032, an investment rebate program for the cost of qualified capital
4261 expenditures by establishments which cre ate not less than a
4362 threshold number of new direct jobs as provided in this section.
44-
4563 2. a. The threshold number of new direct jobs required for
4664 establishments to qualify and remain qualified for
4765
48-ENR. S. B. NO. 1176 Page 2
66+ENGR. S. B. NO. 1176 Page 2 1
67+2
68+3
69+4
70+5
71+6
72+7
73+8
74+9
75+10
76+11
77+12
78+13
79+14
80+15
81+16
82+17
83+18
84+19
85+20
86+21
87+22
88+23
89+24
90+
4991 investment rebate payments created in paragraph 1 of
5092 this subsection shall be as fol lows:
51-
5293 (1) five hundred (500) new direct jobs in year one of
5394 the rebate payment period,
54-
5595 (2) one thousand (1,000) cumulative new direct jobs
5696 in year two of the rebate payment period,
57-
5897 (3) two thousand five hundred (2,500) cumulative new
5998 direct jobs in year th ree of the rebate payment
6099 period,
61-
62100 (4) four thousand (4,000) three thousand five hundred
63101 (3,500) cumulative new direct jobs in year four
64102 of the rebate payment period, and
65-
66103 (5) four thousand (4,000) three thousand five hundred
67104 (3,500) cumulative new direct jobs in year five
68105 of the rebate payment period.
69-
70106 b. For establishments qualifying for investment rebate
71107 payments pursuant to division (2) of subparagraph a of
72108 paragraph 1 of subsection E of this section, the
73109 threshold numbers provided in this paragraph shall be
74110 reduced proportionally to reflect the lesser capital
75111 expenditure of such establishment. Such reduction
76112 shall be achieved by multiplying the thresholds in
77113 paragraph 2 of this subsection by a fractional
78114 equivalent equal to the following: the capital
115+
116+ENGR. S. B. NO. 1176 Page 3 1
117+2
118+3
119+4
120+5
121+6
122+7
123+8
124+9
125+10
126+11
127+12
128+13
129+14
130+15
131+16
132+17
133+18
134+19
135+20
136+21
137+22
138+23
139+24
140+
79141 expenditure plan amount of the establishment
80142 qualifying pursuant to division (2) of subparagraph a
81143 of paragraph 1 of subsection E of this section,
82144 divided by the capital expenditure plan amount of the
83145 establishment qualifying pursuant to division (1) of
84146 subparagraph a of paragraph 1 of subsection E of this
85147 section.
86-
87148 3. New direct jobs in this state of a subsidiary of a primary
88149 establishment, if such subsidiary is defined or classified in the
89150 NAICS Manual under Industry Group No. 5132, 5222, or 5413, shall be
90151 aggregated with the number of new direct jobs in the state of the
91-
92-ENR. S. B. NO. 1176 Page 3
93152 primary establishment for the purpose of determining if the
94153 thresholds provided in paragraph 2 of this subsection are met.
95-
96154 B. The investment rebate program shall be administered by the
97155 Oklahoma Department of Commerce and the Oklahoma Tax Commission.
98-
99156 C. By October 1 of each year, the Oklahoma Department of
100157 Commerce shall submit electronically an annual report to the Speaker
101158 of the Oklahoma House of Representatives, the President Pro Tempore
102159 of the Oklahoma State Senate, the Chair of the Appropriations and
103160 Budget Committee of the Oklahoma House of Representatives, the Chair
104161 of the Appropriations Committee of the Oklahoma State Senate, and
105162 the Executive Director of the Legislative Office of Fiscal
106163 Transparency detailing the program and investment rebate payments.
107164
165+ENGR. S. B. NO. 1176 Page 4 1
166+2
167+3
168+4
169+5
170+6
171+7
172+8
173+9
174+10
175+11
176+12
177+13
178+14
179+15
180+16
181+17
182+18
183+19
184+20
185+21
186+22
187+23
188+24
189+
108190 D. The Oklahoma Department of C ommerce and the Oklahoma Tax
109191 Commission may promulgate rules to implement the provisions of this
110192 act the Large-scale Economic Activity and Development Act of 2022
111193 (LEAD Act).
112-
113194 E. To be eligible for consideration for an investment rebate
114195 payment awarded under the provisions of this act the LEAD Act, a
115196 primary establishment shall:
116-
117197 1. a. (1) Submit an application and documentation to the
118198 Oklahoma Department of Commerce, as required by
119199 the Department, outlining a capital expenditure
120200 plan in this state associated with qualified
121201 capital expenditures totaling no less than Three
122202 Billion Six Hundred Six Million Dollars
123203 ($3,606,000,000.00), or
124-
125204 (2) Submit an application and documentation to the
126205 Oklahoma Department of Commerce, as required by
127206 the Department, outlining a capital expenditure
128207 plan in this state associated with qualified
129208 capital expenditures totaling no less than Five
130209 Hundred Million Dollars ($500,000,000.00),
131210 provided a separate establishment has been
132211 approved by the Oklahoma Department of Commerce
133212 to participate in the investment rebate program
134213 pursuant to division (1) of this subparagraph ,
135214
136-ENR. S. B. NO. 1176 Page 4
215+ENGR. S. B. NO. 1176 Page 5 1
216+2
217+3
218+4
219+5
220+6
221+7
222+8
223+9
224+10
225+11
226+12
227+13
228+14
229+15
230+16
231+17
232+18
233+19
234+20
235+21
236+22
237+23
238+24
239+
137240 and such establishment participating pursuant to
138241 division (1) of this subparagraph remains in
139242 compliance with such approved application, and
140-
141243 b. Have made qualified capital expenditures of no less
142244 than twenty percent (20%) of the capital expenditure
143245 plan outlined in the application submitted by the
144246 primary establishment and approved by the Oklahoma
145247 Department of Commerce, pursuant to the provisions of
146248 this act the LEAD Act.
147-
148249 New investment in this state of a subsidiar y of a primary
149250 establishment, if su ch subsidiary is defined or classified in the
150251 NAICS Manual under Industry Group No. 5132, 5222, or 5413, shall be
151252 aggregated with the investment in this state of the primary
152253 establishment for the purpose of determining if the thresholds
153254 provided in this paragraph are met;
154-
155255 2. Be qualified to receive payments pursuant to the provisions
156256 of the Oklahoma Quality Jobs Pr ogram Act created pursuant to Section
157257 3601 of Title 68 of the Oklahoma Statutes; and
158-
159258 3. Have filed all Oklahoma tax returns and tax documents
160259 required by law.
161-
162260 F. 1. Notwithstanding any other provision of law, if a primary
163261 establishment receives an investment rebate payment pursuant to the
164262 provisions of this act the LEAD Act, neither the qualified
165263 establishment nor its subsidiaries shall be eligible to receive the
264+
265+ENGR. S. B. NO. 1176 Page 6 1
266+2
267+3
268+4
269+5
270+6
271+7
272+8
273+9
274+10
275+11
276+12
277+13
278+14
279+15
280+16
281+17
282+18
283+19
284+20
285+21
286+22
287+23
288+24
289+
166290 credits provided for in Section 2357.4 of Title 68 of the Oklahoma
167291 Statutes, in connection with the project or development for which
168292 the investment rebate payment was based; provided, however, the
169293 limitation provided in this paragraph, on claiming credits, shall
170294 not apply to the amount of qualifying capital expenditure in excess
171295 of Four Billion Five Hundred Million Dollars ($4,500,000,000.00)
172296 made by an establishment on a project or development in this state.
173-
174297 2. Notwithstanding any other provision of law, no investment
175298 expenditure shall be utilized for calculation purposes in a way that
176299 results in the qualification of more than one establishment under
177300 the provisions of this act the LEAD Act, for investment rebate
178301 payments based on the same expenditure.
179-
180-ENR. S. B. NO. 1176 Page 5
181-
182302 3. Notwithstanding any other provision of law, no investment
183303 rebate payment amount pre-qualified or pre-encumbered by the
184304 Oklahoma Department of Commerce for an establishment qualifying for
185305 payment under the provisions of division (1) of sub paragraph a of
186306 paragraph 1 of subsection E of this section, shall be re allocated to
187307 an establishment that at such time is participating under an
188308 approved application pursuant to division (2) of subparagraph a of
189309 paragraph 1 of subsection E of this sectio n.
190-
191310 G. 1. Except as limited by paragraph 2 of this subsection, the
192311 Oklahoma Department of Commerce shall approve or disapprove claims
193312 for rebates and shall notify the Tax Commission subject to the
194313 limitations set forth in Section 5 of this act 3645.5 of this title.
314+
315+ENGR. S. B. NO. 1176 Page 7 1
316+2
317+3
318+4
319+5
320+6
321+7
322+8
323+9
324+10
325+11
326+12
327+13
328+14
329+15
330+16
331+17
332+18
333+19
334+20
335+21
336+22
337+23
338+24
339+
195340 Upon notification of approval from the Department, the Commission
196341 shall issue payment for all approved claims from funds held in the
197342 Large-scale Economic Activity and Development Fund created pursuant
198343 to Section 6 of this act 3645.6 of this title and subject to the
199344 limitations set forth in Section 5 of this act 3645.5 of this title.
200-
201345 2. The Department shall disapprove all applications and claims,
202346 as well as portions of applications and claims, for rebates that
203347 would exceed the balance of available funds in the Large-scale
204348 Economic Activity and Development Fund.
205-
206349 H. The total amount of applications approved and investment
207350 rebate payments awarded under the provisions of this act the LEAD
208351 Act shall not exceed the total amount of monies designated by law
209352 for deposit to the Large-scale Economic Activity and Development
210353 Fund.
211-
212354 SECTION 2. AMENDATORY Section 6, Chapter 66, O.S.L. 2022
213355 (68 O.S. Supp. 2022, Section 3645.6), is amended to read as follows:
214-
215356 Section 3645.6. A. There is hereby created in the State
216357 Treasury a fund for the Oklahoma Tax Commissio n to be designated the
217358 "Large-scale Economic Activity and Development Fund", also known as
218359 the "LEAD Fund". The fund shall be a continuing fund, not subje ct
219360 to fiscal year limitations, and shall consist of all monies
220361 designated for deposit to the fund by law. All monies accruing to
221362 the credit of the fund are hereby appropriated and may be budgeted
222363 and expended by the Tax Commission for the purpose of payin g rebates
223364
224-ENR. S. B. NO. 1176 Page 6
365+ENGR. S. B. NO. 1176 Page 8 1
366+2
367+3
368+4
369+5
370+6
371+7
372+8
373+9
374+10
375+11
376+12
377+13
378+14
379+15
380+16
381+17
382+18
383+19
384+20
385+21
386+22
387+23
388+24
389+
225390 as provided in the Large-scale Economic Activity and Development Act
226391 of 2022. Expenditures from said such fund shall be made upon
227392 warrants issued by the State Treasurer against claims filed as
228393 prescribed by law with the Director of the Office of Management and
229394 Enterprise Services for approval and payment.
230-
231395 B. All unencumbered funds remaining in the Large-scale Economic
232396 Activity and Development Fund upon the expiration of the Large -scale
233397 Economic Activity and Development Act of 2022 shall be trans ferred
234398 to the State Treasurer for deposit in the General Revenue Fund.
235-
236399 C. If the Oklahoma Department of Commerce has not received a
237400 binding commitment from a primary establishment for an investment
238401 determined by the Department to qualify for payment under the
239402 provisions of division (1) of subparagraph a of paragraph 1 of
240403 subsection E of Section 3645.4 of this title by April 15, 2023, all
241404 unencumbered funds remaining in the Large -scale Economic Activity
242405 and Development Fund shall be transferred to the State Treasurer for
243406 deposit in the General Revenue Fund of the State Treasury for the
244407 fiscal year ending J une 30, 2022.
245-
246408 SECTION 3. It being immediately necessary for the preservation
247409 of the public peace, health or safety, an emergency is hereby
248410 declared to exist, by reason whereof this act shall take effect and
249411 be in full force from and after its passage and approval.
250412
413+ENGR. S. B. NO. 1176 Page 9 1
414+2
415+3
416+4
417+5
418+6
419+7
420+8
421+9
422+10
423+11
424+12
425+13
426+14
427+15
428+16
429+17
430+18
431+19
432+20
433+21
434+22
435+23
436+24
251437
252-ENR. S. B. NO. 1176 Page 7
253438 Passed the Senate the 28th day of February, 2023.
254439
255440
256441
257442 Presiding Officer of the Senate
258443
259444
260-Passed the House of Representatives the 2nd day of March, 2023.
445+Passed the House of Representatives the ____ day of __________,
446+2023.
261447
262448
263449
264450 Presiding Officer of the House
265451 of Representatives
266452
267-OFFICE OF THE GOVERNOR
268-Received by the Office of the Governor this _______ _____________
269-day of _________________ __, 20_______, at _______ o'clock _______ M.
270-By: _______________________________ __
271-Approved by the Governor of the State of Oklahoma this _________
272-day of _________________ __, 20_______, at _______ o'clock _______ M.
273-
274- _________________________________
275- Governor of the State of Oklahoma
276-
277-
278-OFFICE OF THE SECRETARY OF STATE
279-Received by the Office of the Secretary of State this _______ ___
280-day of __________________, 20 _______, at _______ o'clock _______ M.
281-By: _______________________________ __