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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 294 By: Pugh
AS INTRODUCED
An Act relating to state fiscal affairs; amending 62
O.S. 2021, Section 48.2, as amended by Section 1,
Chapter 313, O.S.L. 2019, which relates to the
Oklahoma Quick Action Closing Fund; excluding certain
industry from eligibility to receive funds; updating
statutory language; updating statutory references;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 48.2, as
amended by Section 1, Chapter 313, O.S.L. 2019, is amended to read
as follows:
Section 48.2. A. There is hereby created in the State Treasury
a revolving fund for the Oklahoma Department of Commerce to be
designated the Oklahoma Quick Action Closing Fund. The fund shall
be a continuing fund, not subject to fiscal year limitations, and
shall consist of:
1. All monies apportioned or allocated to the fund pursuant to
law;
2. Any amounts appropriated by the Legislature to the fund;
3. Interest earned on the investment of money in the fund;
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4. Gifts, grants, and other donations received for the fund;
and
5. Five percent (5%) of all funds paid by the Oklahoma Tax
Commission to establishments that execute contracts for payment of
incentives pursuant to the Oklahoma Quality Jobs Program Act and the
21st Century Quality Jobs Incentive Act if the contract is executed
on or after the August 2, 2018.
B. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Governor for
the purposes of economic development and related infrastructure
development in instances in which expenditure of such funds would
likely be a determining factor in locating a high-impact business
project or facility in Oklahoma, in retaining such project or
facility within the state, or for payment of rebates to a high
impact high-impact production pursuant to the Oklahoma Film
Enhancement Rebate Program. Expenditures from the fund shall be
made upon warrants 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.
C. In order to qualify for any funds from the Oklahoma Quick
Action Closing Fund, the establishment making application shall be
engaged in a business activity described by a North American
Industry Classification System (NAICS) Code code used to define
eligibility for incentive payments from the Oklahoma Quality Jobs
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Program Act as defined in Section 3603 of Title 68 of the Oklahoma
Statutes or a business activity described by Section 3603 of Title
68 of the Oklahoma Statutes or be engaged in a “basic industry”
basic industry used to define eligibility for incentive payments
from the 21st Century Quality Jobs Incentive Act as prescribed by
Section 3913 of Title 68 of the Oklahoma Statutes or a high impact
high-impact production company which has been approved for a rebate
pursuant to the provisions of Section 3624 of Title 68 of the
Oklahoma Statutes; provided, establishments engaged in electric
automobiles for highway use manufacturing activities defined or
classified in the 2022 NAICS Manual under U.S. Industry Group No.
336110 shall not qualify for any funds from the Oklahoma Quick
Action Closing Fund.
D. Except in the case of a high impact high-impact production
company which has been approved for a rebate pursuant to the
provisions of Section 3624 of Title 68 of the Oklahoma Statutes, the
Governor shall not approve payments from the Oklahoma Quick Action
Closing Fund unless the Oklahoma Department of Commerce has
conducted a complete analysis of the potential impact of the
applicant’s business activity which shall include, but not be
limited to:
1. The number of jobs to be created by a new business
establishment;
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2. The number of jobs to be retained by an existing business
establishment;
3. The average salary of jobs to be created by a new
establishment;
4. The average salary of jobs to be retained by an existing
business establishment;
5. The total capital investment to be made by the business
establishment;
6. The likelihood of other business establishments locating
within the same vicinity or within the state as a result of the
business activity to be conducted by the entity to receive payments
from the Oklahoma Quick Action Closing Fund;
7. The impact on the economy of the area or community in which
the business activity of the applicant is or will be conducted; and
8. Such other factors as the Governor and the Oklahoma
Department of Commerce determine to be relevant.
E. The Oklahoma Department of Commerce shall administer the
Oklahoma Quick Action Closing Fund, and expenditures from the fund
shall be recommended by the Director of the Oklahoma Department of
Commerce to the Governor after a thorough evaluation of selected
projects or facilities or after a rebate is approved for payment to
a high impact high-impact production company pursuant to the
provisions of Section 3624 of Title 68 of the Oklahoma Statutes.
Except for rebates approved pursuant to the provisions of Section
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3624 of Title 68 of the Oklahoma Statutes, the Director of the
Oklahoma Department of Commerce shall only recommend expenditures
that the Director determines are expected to result in a net
economic benefit to the state through the following:
1. The creation of new jobs which offer a basic health benefit
plan, as defined in the Oklahoma Quality Jobs Program Act;
2. The maintenance of existing jobs which are at a risk for
termination;
3. Investment in new real property, plant plants, or equipment
or in the improvement or retooling of existing plant plants or
equipment; or
4. Additional revenues in either ad valorem, income, or sales
and use taxes.
F. The Oklahoma Department of Commerce shall develop rules for
the process of reviewing proposed expenditures from the Oklahoma
Quick Action Closing Fund and for the determination of whether or
not proposed expenditures meet the criteria identified in subsection
E of this section. Criteria shall include, but not be limited to,
requirements for economic impact, local participation in the
project, capital investment, and average wage thresholds.
G. Upon receipt of an evaluation that recommends an expenditure
from the Oklahoma Quick Action Closing Fund from the Director of the
Oklahoma Department of Commerce, the Governor shall provide the
evaluation and recommendation to the President Pro Tempore of the
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State Senate and the Speaker of the Oklahoma House of
Representatives before giving final approval for the expenditure on
the project. The Executive Office of the Governor shall recommend
final approval of an expenditure on a project pursuant to
consultation with the President Pro Tempore of the State Senate and
the Speaker of the Oklahoma House of Representatives.
H. Upon approval by the Governor, the Oklahoma Department of
Commerce shall enter into an agreement that sets forth the
conditions for payment of monies from the Oklahoma Quick Action
Closing Fund. The agreement must include:
1. The total amount of funds awarded;
2. Except in the case of a rebate approved for payment to a
high impact high-impact production company pursuant to the
provisions of Section 3624 of Title 68 of the Oklahoma Statutes, the
performance conditions that must be met to obtain the award
including, but not limited to, net new employment in the state,
average salary, and total capital investment;
3. If appropriate, a baseline of current service and measure of
enhanced capability;
4. The methodology of validating performance;
5. The schedule of payments from the fund, and claw-back
provisions for failure to meet performance conditions; and
6. A requirement that no monies paid from the Oklahoma Quick
Action Closing Fund shall be used by a recipient or any other person
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or entity for purposes of any political contribution to or on behalf
of any candidate or for the support of or opposition to any measure
including, but not limited to, an initiative petition or referendum.
I. The Oklahoma Department of Commerce shall make available on
its website or other website dedicated for this purpose a complete
disclosure of all payments made from the Oklahoma Quick Action
Closing Fund. The disclosure shall include a description of the
expenditures made by the business establishment with the payments
made from the fund. No proprietary information of the business
establishment shall be subject to the requirements of this
subsection.
J. If any or all of the amount to be awarded is used to build a
capital improvement, except in the case of an amount approved for
payment to a high impact high-impact production company pursuant to
the provisions of Section 3624 of Title 68 of the Oklahoma Statutes:
1. The funds used for the capital improvement shall be deemed
to be held in trust for the benefit of the state and shall be
considered as a priority claim for purposes of federal bankruptcy
law; and
2. If the capital improvement is sold, the recipient of the
award shall:
a. repay the state the money awarded to pay for the
capital improvement, with interest at the rate and
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according to the other terms provided by the
agreement, and
b. share with the state a proportionate amount of any
profit realized from the sale.
K. If, as of the date certain provided in the agreement, the
award recipient has not used monies awarded for the intended
purposes, the recipient shall repay that amount and any related
interest to the state at the agreed rate and on the agreed terms and
any such amounts shall be deemed to be held in trust for the benefit
of the state and shall be considered as a priority claim for
purposes of federal bankruptcy law.
SECTION 2. This act shall become effective November 1, 2025.
60-1-434 QD 12/30/2024 11:23:30 PM