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ENGROSSED HOUSE
BILL NO. 2838 By: Grego and Burns of the
House
and
Murdock of the Senate
An Act relating to agricultural economic development;
enacting the Oklahoma Certified Meat Processing
Facility Incentive Act of 202 5; providing for
creation of the Oklahoma Certified Meat Processing
Facility Incentive Approval Board; prescribing
membership; providing for eligibility of entity for
incentive payments; imposing requirements and
restrictions with respect to equity ownership;
providing for repayment of incentives under certain
circumstances; authorizing State Auditor and
Inspector to conduct aud it of books and records;
authorizing audit by third party; requiring certain
characterization of incentive payments for purposes
of repayment requirements ; providing for enforcement
and collection of incentive repayment by Oklahoma Tax
Commission; imposing requirements with respect to
processing facility inputs; creating the Oklahoma
Certified Meat Processing Facility Incentive
Revolving Fund; providing for sources of revenue;
prescribing purpose of fund; providing for
expenditures from fund; providing for
noncodification; providing for codification;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
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This act shall be known and may be cited as the "Oklahoma
Certified Meat Processing Facility Incentive Act of 202 5".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2121 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created the Oklahoma Certified Meat
Processing Facility Incentive Approval Board. The Board shall
consist of the following persons:
1. Three persons to be appointed by the Governor;
2. The Chair of the standing committee of the Oklahoma House of
Representatives having primary jurisdiction wit h respect to
legislation affecting agriculture or agricultural products;
3. The Chair of the standing committee of the Oklahoma State
Senate having primary jurisdiction with respect to legislation
affecting agriculture or agricultural products;
4. One person to be selected by the Chair of the committee of
the Oklahoma House of Representatives having primary jurisdiction
with respect to legislation affecting agriculture or agricultural
products; and
5. One person to be selected by the Chair of the standin g
committee of the Oklahoma State Senate having primary jurisdiction
with respect to legislation affecting agriculture or agricultural
products.
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B. In order to be eligible for any payment of funds from the
Oklahoma Certified Meat Processing Facility Incen tive Revolving
Fund, an otherwise eligible business entity shall:
1. Be organized pursuant to the laws of any state of the United
States of America;
2. Not allow the majority of its equity interest to be owned
by:
a. a natural person who is not a citizen of the United
States,
b. a legal entity which is not an entity organized under
the laws of any of the states of the United States,
c. a legal entity, regardless of the state of its
formation, the majori ty equity interest of which is
owned by natural perso ns who are not United States
citizens,
d. a legal entity, regardless of the state of its
formation, the majority equity interest of which is
owned by an entity or entities the majority equity
interest of which is itself owned by one or more
natural persons who are not United States citizens,
and
e. a legal entity, regardless of the state of its
formation, the majority equity interest of which is
owned by any combination of natural persons who are
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not United States citizens and other legal entities if
the majority equity interest of any one or more of
such entities is owned either by a natural person or
persons who are not United States citizens or if the
majority equity interest of any one or more of such
other legal entities is controlled, directly or
indirectly, by natural persons who are not United
States citizens; and
3. Use at least fifty percent (50%) of inputs in the processing
facility acquired from either a resident of the state or a legal
entity the majority equity interest of which is owned by one or more
residents of the state or a combination of natural persons who are
residents of the state and other legal entities the controlling
equity interest of which is owned, directly or indirectly, by one or
more residents of the state.
C. As used in this section, "majority equity interest" means
the shares or equivalent evidence of equity ownership in the entity
with voting rights having the power to select a board of directors
or an equivalent governi ng body for the entity.
D. If an entity receives fun ds pursuant to the provisions of
this act and pursuant to an audit of the books and records of the
entity it is determined that the restrictions regarding alien
ownership of the voting equity interest have been violated, the
amount of incentives paid to th e entity shall become the equivalent
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of a state tax owed by the entity and the Oklahoma Tax Commission
shall have all of the same procedures and remedies to enforce the
repayment of the incentive amount in the same manner as with respect
to any other state tax liability, including, but not limited to, the
provisions of the Uniform Tax Procedure Code.
E. The State Auditor and Inspector shall have the right to
examine the books and records of any entity receiving incentive
payments pursuant to the provisions of this act in order to enforce
the provisions of subsection B of this section and to assist in the
enforcement of the liabilities as described in subsection C of this
section. Any entity receiving inc entive payments pursuant to the
provisions of this ac t shall provide access to its books and records
to the State Auditor and Inspector or to any third -party auditor
engaged by the State Auditor and Inspector in order to enforce the
provisions of subsection B and subsection C of this section.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2122 of Title 62, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the Oklahoma Department of Agriculture, Food , and Forestry to be
designated the "Oklahoma Certified Meat Processing Facility
Incentive Revolving Fund". The fund shall be a continuing fund, not
subject to fiscal year limitations, and shall consist of all mo nies
received by the Oklahoma Department of Agriculture, Food , and
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Forestry from such sources as may be provided by law. All monies
accruing to the credit of said fund are hereby appropriated and may
be budgeted and expended by the Oklahoma Department of Agriculture,
Food, and Forestry for the purpose of providing incentives to
qualified entities to acquire and operate or to operate facilities
for the processing of certified meat produced within the state.
Expenditures from said fund shall be made upon wa rrants 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.
SECTION 4. This act shall become effective July 1, 202 5.
SECTION 5. 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 appro val.
Passed the House of Representatives the 13th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the ____ day of __________, 2025.
Presiding Officer of the Senate