Oklahoma SB 1782: Oklahoma Quality Jobs Program; modifying wage requirements and effective date for certain applicants. Effective date.

Bill Text

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ENGROSSED SENATE
BILL NO. 1782 By: Rader and Kirt of the
Senate

and

Talley of the House

An Act relating to incentive payments; amending 68
O.S. 2021, Sections 3604 and 3604.1, which relate to
the Oklahoma Quality Jobs Program; modifying period
of incentive payments for applications submitted
after certain date; modifying period for effective
date of agreement; modifying wage requirement for
certain applicants; requiring the establishment to
meet wage requirements at certain period of the
agreement; limiting maximum wage requirement to
certain period; updating statutory reference; and
providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3604, is
amended to read as follows:
Section 3604. A. Except as otherwise provided in subsection I
or subsection L of this section, an establishment which meets the
qualifications specified in the Oklahoma Quality Jobs Program Act
may receive quarterly incentive payments for a ten-year period from
the Oklahoma Tax Commission pursuant to the provisions of the
Oklahoma Quality Jobs Program Act; provided, such an establishment
defined or classified in the NAICS Manual under U.S. Industry No.
711211 (2007 version) may receive quarterly incentive payments for a

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fifteen-year period. The amount of such payments shall be equal to
the net benefit rate multiplied by the actual gross payroll of new
direct jobs for a calendar quarter as verified by the Oklahoma
Employment Security Commission.
B. In order to receive incentive payments, an establishment
shall apply to the Oklahoma Department of Commerce. The application
shall be on a form prescribed by the Department and shall contain
such information as may be required by the Department to determine
if the applicant is qualified. An establishment may apply for an
effective date for a project, which shall not be more than twenty-
four (24) months twelve (12) months from the date the application is
submitted to the Department.
C. Except as otherwise provided by subsection D or E of this
section, in order to qualify to receive such payments, the
establishment applying shall be required to:
1. Be engaged in a basic industry;
2. Have an annual gross payroll for new direct jobs projected
by the Department to equal or exceed Two Million Five Hundred
Thousand Dollars ($2,500,000.00) within three (3) years of the first
complete calendar quarter following the start date; and
3. Have a number of full-time-equivalent employees subject to
the tax imposed by Section 2355 of this title and working an annual
average of thirty (30) or more hours per week in new direct jobs

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located in this state equal to or in excess of eighty percent (80%)
of the total number of new direct jobs.
D. In order to qualify to receive incentive payments as
authorized by the Oklahoma Quality Jobs Program Act, an
establishment engaged in an activity described under:
1. Industry Group Nos. 3111 through 3119 of the NAICS Manual
shall be required to:
a. have an annual gross payroll for new direct jobs
projected by the Department to equal or exceed One
Million Five Hundred Thousand Dollars ($1,500,000.00)
within three (3) years of the first complete calendar
quarter following the start date and make, or which
will make within one (1) year, at least seventy-five
percent (75%) of its total sales, as determined by the
Incentive Approval Committee pursuant to the
provisions of subsection B of Section 3603 of this
title, to out-of-state customers or buyers, to in-
state customers or buyers if the product or service is
resold by the purchaser to an out-of-state customer or
buyer for ultimate use, or to the federal government,
unless the annual gross payroll equals or exceeds Two
Million Five Hundred Thousand Dollars ($2,500,000.00)
in which case the requirements for purchase of output
provided by this subparagraph shall not apply, and

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b. have a number of full-time-equivalent employees
working an average of thirty (30) or more hours per
week in new direct jobs equal to or in excess of
eighty percent (80%) of the total number of new direct
jobs; and
2. Division (4) of subparagraph a of paragraph 1 of subsection
A of Section 3603 of this title, shall be required to:
a. have an annual gross payroll for new direct jobs
projected by the Department to equal or exceed One
Million Five Hundred Thousand Dollars ($1,500,000.00)
within three (3) years of the first complete calendar
quarter following the start date, and
b. have a number of full-time-equivalent employees
working an average of thirty (30) or more hours per
week in new direct jobs equal to or in excess