An Act
ENROLLED SENATE
BILL NO. 1447 By: Thompson (Kristen) of the
Senate
and
Osburn and Swope of the
House
An Act relating to economic development; creating the
Creating Oklahoma’s Modern Plan for Economic
Transformation and Effectiveness (COMPETE) Act ;
providing short title; amending 74 O.S. 2021, Section
5003.2, which relates to creation of the Oklahoma
Department of Commerce; requiring the Department to
create two separate divisions; creating the Division
on Economic Development, Growth, and Expansio n (EDGE)
and the Division on Community Outreach and
Revitalization Enterprise (CORE); specifying purpose
of each division; amending 74 O.S. 2021, Section
5003.4, which relates to definitions; modifying
definition; amending 74 O.S. 2021, Section 5003.5, as
amended by Section 25, Chapter 243, O.S.L. 2022 (74
O.S. Supp. 2023, Section 5003.5), which relates to
the Director of the Oklahoma Department of Commerce;
modifying title; establishing method for
compensation; specifying requirements for position;
amending 74 O.S. 2021, Section 5003.7, which relates
to the five-year economic development plan; expanding
provisions of plan; modifying recipients of notice;
requiring plan to be posted on Department ’s website;
requiring certain presentation; amending 7 4 O.S.
5003.10, which relates to the authority of the
Oklahoma Department of Commerce; modifying reference;
amending 74 O.S. 5003.10a, which relates to procedure
to terminate offices established outside of state;
modifying reference; creating the Legislative
Evaluation and Development Committee; requiring
legislative review on investments over certain
threshold; specifying information for review;
ENR. S. B. NO. 1447 Page 2
providing for membership; providing for quorum;
allowing for certain reimbursement; requiring members
of committee to submit to certain agreements;
updating statutory language; providing for
codification; and declaring an emergency.
SUBJECT: Economic development
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new secti on of law to be codified
in the Oklahoma Statutes as Section 5090 of Title 74, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the “Creating
Oklahoma’s Modern Plan for Economic Transformati on and Effectiveness
(COMPETE) Act”.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 5003.2, is
amended to read as follows:
Section 5003.2. A. Recognizing the geographic diversity of
this state, Oklahoma needs one central, primary public-sector
economic development agency for the state in order to manage or
coordinate all public sector economic development activity.
Oklahoma needs an agency to work at the community and firm level
to:
1. Create new and higher quality jobs for the people of this
state through the expansion, creation, restructuring and recruitment
of export-oriented Oklahoma firms which produce value -added goods,
services and processes;
2. Encourage statewide economic diversification and stability;
3. Maintain a two-way flow of information between the central
state economic development agency and firms, farms and communities;
ENR. S. B. NO. 1447 Page 3
4. Implement the strategic economic development five -year plan;
and
5. Carry out policy development and research in support of
Oklahoma Futures.
B. There are hereby created two separate and distinct divisions
within the Oklahoma Department of Commerce to be known as the
Division on Economic Development, Growth, and Expansion (EDGE) and
the Division on Community Outreach and Revitalizati on Enterprise
(CORE). EDGE and CORE shall collaborate to encourage economic
stability in the state, to improve the economic competitiveness of
this state, and to implement the Oklahoma Department of Commerce’s
strategic plan.
C. The Division on Economic Development, Growth, and Expansion
(EDGE).
The purpose of EDGE shall be to serve as the state’s lead
economic development point of contact. EDGE shall exercise the
powers and duties granted to it by this act to perform an essential
governmental function for matters of public necessity for which
public monies may be spent and property acquired. EDGE shall have
duties pertaining to the economic development of the state
including, but not limited to:
1. Being empowered to strategically drive opportunitie s for
economic growth and diversification across the state;
2. Collaborating with local, regional, and state entities;
3. Coordinating the funding and investment activities of each
element of the state’s economic development efforts and marketing
campaigns to achieve better results for the state’s recruitment and
retention of businesses; and
4. Acting as the principal point of contact regarding
investment in this state for public officials, businesses, and the
public.
D. The Division on Community Ou treach and Revitalization
Enterprise (CORE).
ENR. S. B. NO. 1447 Page 4
The purpose of CORE shall be to focus on the long -term
development of local communities to increase competitiveness and
enhance economic opportunities. CORE shall have duties pertaining
to local economic oppor tunities and community development including,
but not limited to:
1. Creating new and higher -quality jobs for the people of the
state through long-term development of local communities;
2. Maintaining communication of information between the
Department and communities through regional organization and
representation;
3. Carrying out policy development and research in support of
the long-term competitiveness of this state;
4. Providing technical assistance to local communities in
securing federal fun ding, incentive availability, and community
development;
5. Providing assistance and funding in development of potential
sites for economic development;
6. Coordinating with other state agencies deploying federal and
state funds for infrastructure deve lopment including, but not
limited to, the Department of Transportation, the Oklahoma Water
Resources Board, and the Oklahoma Broadband Office; and
7. Assisting in compliance with the laws and regulations of
economic incentives and economic development i nitiatives.
E. The Oklahoma Department of Commerce is hereby constituted an
agency of state government.
C. F. Whenever the terms “Department of Economic Development”
or “Department of Economic and Community Affairs” appear in the
Oklahoma Statutes they shall mean and refer to the Oklahoma
Department of Commerce.
SECTION 3. AMENDATORY 74 O.S. 2021, Section 5003.4, is
amended to read as follows:
ENR. S. B. NO. 1447 Page 5
Section 5003.4. As used in the Oklahoma Department of Commerce
Act:
1. “Department” means the Oklahoma Department of Commerce;
2. “Director” means the director of the Department of Commerce
“Chief Executive Officer” means the Chief Executive Officer of the
Oklahoma Department of Commerce ;
3. “Enterprise” means a firm with its prin cipal place of
business in Oklahoma;
4. “Economic Information System” means a comprehensive
statewide data collection, analysis and distribution system which
makes available current and thorough information on Oklahoma
economic trends and future Oklahoma economic opportunities to
communities, firms, farms and individuals in the state; firms and
individuals outside the state considering location in Oklahoma; and
Oklahoma Futures, the Governor, the Legislature and all other state
agencies and institutions; and
5. “Economic Innovation System” means a decentralized statewide
system that responsively and innovatively coordinates technical
assistance, grant and loan programs with local, state, federal and
private sector activities into a single statewide Econo mic
Innovation System.
SECTION 4. AMENDATORY 74 O.S. 2021, Section 5003.5, as
amended by Section 25, Chapter 243, O.S.L. 2022 (74 O.S. Supp. 2023,
Section 5003.5), is amended to read as follows:
Section 5003.5. A. The Director Chief Executive Officer of the
Oklahoma Department of Commerce shall be appointed by the Governor
with the advice and consent of the Senate. The Director Chief
Executive Officer shall serve at the pleasure of the Governor and
shall continue to serve unti l a successor is duly appointed and
qualified. The salary of the Director Chief Executive Officer shall
be set by law compensated in a manner that compares equally to
similar positions in the private sector .
ENR. S. B. NO. 1447 Page 6
B. The Director Chief Executive Officer shall be qualified for
such position by character, personality, ability, education,
training and successful administrative experience in the public or
private sector. The Chief Executive Officer shall have experience
that includes, but is not limited to:
1. Economic development program leadership;
2. Business development leadership;
3. Senior-level board management and leadership;
4. Senior-level business and political engagement;
5. Leading business development or business recruitment teams;
6. Creating and implementing sector development strategies;
7. Branding and marketing leadership experience; and
8. Experience in recruiting companies to a state or community.
C. The Director Chief Executive Officer shall employ such
persons as are necessa ry to implement the powers and duties of the
Department. Because many of the powers and duties of the Department
involve working closely with the private sector, certain employee
positions of the Department shall be employed and compensated in a
manner that compares equally to similar positions in the private
sector and shall be exempt from the provisions of the Civil Service
and Human Capital Modernization Act. All other employees and
positions shall be subject to the provisions of the Civil Service
and Human Capital Modernization Act. Provided, nothing in this
section shall be construed to limit the authority of the Legislature
to specify the status of positions otherwise by law. Neither shall
the Director Chief Executive Officer have the authority to
circumvent, disregard or otherwise disobey specific provisions of
law regarding positions in the Department.
D. The Director Chief Executive Officer shall serve on the
board of:
1. The Oklahoma Industrial Finance Authority;
ENR. S. B. NO. 1447 Page 7
2. The Oklahoma Science an d Technology Research and Development
Board;
3. The Oklahoma Development Finance Authority;
4. The Executive Bond Oversight Commission; and
5. 3. The Oklahoma Ordnance Works Authority.
E. The Director Chief Executive Officer may serve as
administrator of any interlocal agreement or compact to pursue
economic development and to assign any employees of the Department
or employee personnel to carry out duties or obligations pursuant to
any interlocal agreement or compact for economic development.
F. The Director Chief Executive Officer , at his or her
discretion, may approve payment for affiliations or memberships of
the Department or, if necessary, associate memberships for
individual employees in international, national, or state economic
development councils, professional organizations, or governmental
associations.
SECTION 5. AMENDATORY 74 O.S. 2021, Section 5003.7, is
amended to read as follows:
Section 5003.7. A. The Oklahoma Department of Commerce shall
prepare, with the cooperation of the Oklahoma business community,
agricultural community, financial community, universities, labor
and, the state executive and legislative branches, and the Oklahoma
Workforce Commission, a five-year economic development plan and
annual updates for the State of Oklahoma this state.
1. The purpose of the plan shall be to identify significant
economic, social, and demographic trends which may have both short -
term and long-term impacts on the state and local economy and to
present strategies and recommendations that the state and local
political subdivisions might adopt to improve or stabilize the
economy.
2. The goals of the plan shall include the development of a
diversified state economy , increasing; the increase of employment,;
ENR. S. B. NO. 1447 Page 8
the maximum use of federal, state and local funds to achieve the
goals or recommendations included in the plan ,; the maximum
investment of capital in the economy of the state ,; and the
improvement of the quality of life in the state.
3. The plan wherever poss ible shall make recommendations to
encourage intergovernmental cooperation and public and private
cooperation.
4. The plan shall include an economic development strategy for
the state that addresses target industries, site development, and
workforce needs to meet the state goals.
5. Copies of the plan and the annual updates shall be submitted
electronically to the Oklahoma Advisory Committee on
Intergovernmental Relations, the Governor, the Speaker of the House
of Representatives, the President Pro Temp ore of the Senate and the
chairmen of the standing committees on economic development of the
Senate and of the House of Representatives members of the
Legislative Evaluation and Development Committee, as created in
Section 8 of this act, and be made availa ble to the public on the
Department’s website on the first day of each legislative session.
5. 6. The Department shall develop and manage a complete
economic information system which will support the five -year
planning process, and which will make availa ble complete and timely
information on the state economy. The economic information system
shall be operated by public or private Oklahoma universities or an
Oklahoma enterprise capable of providing such services in a cost -
effective manner.
B. The Chief Executive Officer of the Oklahoma Department of
Commerce shall present the strategic plan to the Legislative
Evaluation and Development Committee, as created in Section 8 of
this act, for approval.
C. The Department, in conjunction with the Oklahoma Deve lopment
Finance Authority, is authorized to develop an infrastructure
program which will enable political subdivisions of this state to
finance public works projects in order to modify or improve existing
public facilities for purposes of bringing said such facilities, and
the operation thereof, into compliance with and maintaining
ENR. S. B. NO. 1447 Page 9
compliance with federal, state and local laws and regulations
pertaining to the protection of the public health and the
environment.
C. D. The Director Chief Executive Officer shall develop an
annual business plan for the Department. The business plan shall
include the need and mission of each division of the Department
created by law or the Director Chief Executive Officer and an
analysis of past costs and benefits and future projected costs and
benefits to the state of the programs of each division of the
Department. The business plan shall be consistent with the goals of
the recurring five-year plan specified in this section. The
Director Chief Executive Officer shall distribute copies of the
business plan by such means that will make it widely available to
communities, firms and local economic development managers
throughout this state.
SECTION 6. AMENDATORY 74 O.S. 2021, Section 5003.10, is
amended to read as follows:
Section 5003.10. The Oklahoma Department of Commerce shall have
the authority to:
1. Disseminate information concerning the industrial,
commercial, governmental, educational, cultural, agricultural,
business and other advantages and attractions of the state;
2. Assist public and private agencies in the preparation of
informational and publicity programs designed to attract or retain
business and industry for the state;
3. Obligate and expend funds for services performed by loc al
political subdivisions of the state, state agencies, including
universities and colleges within and without the state, and federal
agencies for research and training in conformity with the general
state laws governing such activity; and apply for, accep t,
administer and expend grants from the federal government and any
other public or private sources for research and training purposes;
4. Conduct, publish and disseminate or encourage research
designed to further new and more extensive uses of the natur al and
ENR. S. B. NO. 1447 Page 10
other resources of the state and designed to develop and
commercialize new products and commercial processes;
5. Study trends and developments in the industries of the state
and analyze the reasons underlying such trends; study costs within
the state; and make recommendations regarding circumstances
promoting or hampering business and industrial development;
6. Generally gather, compile and make available economic
analyses and statistical information relating to business, trade,
commerce, industry, transportation, communication, natural
resources, population and other like subjects in this state, with
authority to call upon other agencies, universities and colleges of
the state for statistical data and results obtained by them, and to
arrange and compile such economic analyses and statistical
information in such a manner as it deems advisable;
7. Study such other scientific, industrial, financial and
economic issues as, in the judgment of the Department, shall be
deemed of value to the people of the state;
8. Support and assist the efforts of state, regional and local
development organizations, industrial committees, chambers of
commerce, agricultural organizations, labor organizations and other
similar public and private agencies to obtain new and to foster
expansion of existing service, industrial and manufacturing
facilities, businesses and enterprises; and to foster community
improvements in leadership, expertise, human development,
infrastructure, public facilities and quality of life; and t o expand
data availability and utilization opportunities;
9. Maintain a continuing evaluation of the sources available
for the financing of the development or expansion of industrial,
agricultural and commercial facilities in this state through both
public and private agencies;
10. Assist in obtaining financing for the development and
expansion of industrial, agricultural and commercial facilities in
the state;
11. Serve as the state’s official liaison agency between
persons interested in locating new economic enterprises in Oklahoma
ENR. S. B. NO. 1447 Page 11
and state and local groups seeking new enterprises. In this
respect, the Department shall aid communities in organizing for and
obtaining new businesses and expanding existing businesses and shall
process requests which r eflect interest in locating economic
enterprises in the state;
12. Promote the sale and facilitate the marketing of Oklahoma
products including agricultural and value -added products in the
international market;
13. Encourage the location of foreign man ufacturing plants and
other industries in Oklahoma;
14. Coordinate the international efforts of the various state
agencies without violating the individual authority given those
agencies by statute;
15. Coordinate and serve as liaison to the private se ctor as
needed;
16. Establish, subject to an annual appropriation or private
gifts, offices outside the state boundaries. The offices may be
operated by the state or may be operated pursuant to contract which
shall not be subject to the competitive bid laws of the State of
Oklahoma. The Department shall prepare an annual report concerning
the activities of the offices and submit it to the Governor and the
Legislature. The Director Chief Executive Officer of the Oklahoma
Department of Commerce shall not ify in writing the Governor, the
President Pro Tempore of the Senate and the Speaker of the House of
Representatives that the Department intends to establish a new
office pursuant to this paragraph at least thirty (30) days prior to
the establishment of th e new office or execution of a contract;
17. Establish a system of not less than six geographic regions
for promoting new or existing businesses, assisting in the expansion
of small and medium sized manufacturers through a modernization
program, creating new jobs, and assisting local businesses,
political subdivisions or other entities to better utilize the
services of the Department;
18. Solicit, accept and expend donations and contributions from
any source, whether public or private, in order to adver tise,
ENR. S. B. NO. 1447 Page 12
promote or disseminate information which may assist in the
recruitment of companies, firms or jobs to Oklahoma, including but
not limited to the Oklahoma Quality Jobs Program Act, and any other
acts which the Department administers or which may assis t the
Department in the performance of its mission. The Department shall
deposit any funds collected pursuant to this paragraph in the
“Oklahoma Department of Commerce Revolving Fund” created by Section
5012 of this title; and
19. Enter into contracts a t fair market value for the rental of
office space in any facility under its control to entities engaged
in activities related to the export of goods produced in Oklahoma.
The Department shall deposit any funds collected pursuant to this
paragraph in the “Oklahoma Department of Commerce Revolving Fund”
created by Section 5012 of this title.
SECTION 7. AMENDATORY 74 O.S. 2021, Section 5003.10a, is
amended to read as follows:
Section 5003.10a. An office established by the Oklahom a
Department of Commerce outside the State of Oklahoma pursuant to
paragraph 16 of Section 5003.10 of this title shall not be
terminated until the Director Chief Executive Officer of the
Oklahoma Department of Commerce provides a written report to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate of the intent of the Director
Chief Executive Officer to terminate the office. Termination of the
office pursuant to this section shall not occur earlier than s ixty
(60) days following the date the report is filed as provided in this
section. For purposes of this section, “termination” means a
reduction in funding for an office or a change in representation.
SECTION 8. NEW LAW A new sect ion of law to be codified
in the Oklahoma Statutes as Section 5090.1 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created within the Legislature the
Legislative Evaluation and Development Committee . The Legislative
Evaluation and Development Committee shall review financing for
individual incentive packages including, but not limited to,
packages offering tax incentives, funds for economic development,
and, when the annual investment exceeds Twenty Million Dollars
ENR. S. B. NO. 1447 Page 13
($20,000,000.00), excluding funding from existing incentives for any
business, new or existing currently in this state, or when one or
more of the incentives in the incentive package is not authorized
under current law or an amendment by t he Legislature is being sought
to one or more currently existing incentives included in the
incentive package. In addition to the required review of certain
incentive packages as prescribed by this section, the Committee may,
in its discretion, also revie w potential economic development
projects presented by private sector businesses or state or other
political subdivision authorities which would be financed by public
funds.
B. The Legislative Evaluation and Development Committee shall
evaluate and propose economic projects provided by the Division on
Economic Development, Growth, and Expansion within the Oklahoma
Department of Commerce. The Committee shall consist of:
1. Four members of the Senate to be appointed by the President
Pro Tempore of the Se nate, one of whom shall be from the minority
party; and
2. Four members of the House of the Representatives to be
appointed by the Speaker of the House of Representatives, one of
whom shall be from the minority party.
The President Pro Tempore of the Se nate, or his or her designee,
and the Speaker of the House of Representatives, or his or her
designee, shall serve as co -chairs for the Committee.
C. The quorum of the Committee shall consist of at least five
members. Meetings of the Committee shall be governed by joint rules
of the Legislature. Members of the Committee may receive
reimbursement from the Legislative Service Bureau for actual and
necessary expenses incurred in connection with their duties as
members of the Committee in accordance with ot her provisions of law
relating to travel reimbursement for members of the Legislature.
Members serving on this Committee shall submit to nondisclosure
agreements and adhere to the confidentiality of the material
discussed in meetings that affects the econ omic development of this
state.
ENR. S. B. NO. 1447 Page 14
SECTION 9. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
ENR. S. B. NO. 1447 Page 15
Passed the Senate the 29th day of May, 2024.
Presiding Officer of the Senate
Passed the House of Representatives the 30th day of May, 2024.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _______ __
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this _______ ___
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________