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Oklahoma Legislature· SB 294Referred to Revenue and Taxation

An act relating to state fiscal affairs, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                     STATE OF OKLAHOMA

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2                 1st Session of the 60th Legislature (2025)

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3 SENATE BILL 294                 By: Pugh
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6                     AS INTRODUCED

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7        An Act relating to state fiscal affairs; amending 62

7        O.S. 2021, Section 48.2, as amended by Section 1,

8        Chapter 313, O.S.L. 2019, which relates to the

8        Oklahoma Quick Action Closing Fund; excluding certain

9        industry from eligibility to receive funds; updating

9        statutory language; updating statutory references;

10       and providing an effective date.

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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13  SECTION 1.        AMENDATORY  62 O.S. 2021, Section 48.2, as

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14 amended by Section 1, Chapter 313, O.S.L. 2019, is amended to read
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15 as follows:
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16  Section 48.2. A. There is hereby created in the State Treasury

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17 a revolving fund for the Oklahoma Department of Commerce to be
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18 designated the Oklahoma Quick Action Closing Fund. The fund shall
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19 be a continuing fund, not subject to fiscal year limitations, and
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20 shall consist of:
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21  1. All monies apportioned or allocated to the fund pursuant to

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22 law;
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23  2. Any amounts appropriated by the Legislature to the fund;

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24  3. Interest earned on the investment of money in the fund;

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    Req. No. 434                                              Page 1
1      4. Gifts, grants, and other donations received for the fund;

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2 and
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3      5. Five percent (5%) of all funds paid by the Oklahoma Tax

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4 Commission to establishments that execute contracts for payment of
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5 incentives pursuant to the Oklahoma Quality Jobs Program Act and the
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6 21st Century Quality Jobs Incentive Act if the contract is executed
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7 on or after the August 2, 2018.
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8      B. All monies accruing to the credit of the fund are hereby

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9 appropriated and may be budgeted and expended by the Governor for
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10 the purposes of economic development and related infrastructure
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11 development in instances in which expenditure of such funds would
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12 likely be a determining factor in locating a high-impact business
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13 project or facility in Oklahoma, in retaining such project or
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14 facility within the state, or for payment of rebates to a high
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15 impact high-impact production pursuant to the Oklahoma Film
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16 Enhancement Rebate Program. Expenditures from the fund shall be
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17 made upon warrants issued by the State Treasurer against claims
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18 filed as prescribed by law with the Director of the Office of
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19 Management and Enterprise Services for approval and payment.
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20     C. In order to qualify for any funds from the Oklahoma Quick

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21 Action Closing Fund, the establishment making application shall be
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22 engaged in a business activity described by a North American
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23 Industry Classification System (NAICS) Code code used to define
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24 eligibility for incentive payments from the Oklahoma Quality Jobs
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    Req. No. 434                                                Page 2
1 Program Act as defined in Section 3603 of Title 68 of the Oklahoma
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2 Statutes or a business activity described by Section 3603 of Title
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3 68 of the Oklahoma Statutes or be engaged in a "basic industry"
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4 basic industry used to define eligibility for incentive payments
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5 from the 21st Century Quality Jobs Incentive Act as prescribed by
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6 Section 3913 of Title 68 of the Oklahoma Statutes or a high impact
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7 high-impact production company which has been approved for a rebate
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8 pursuant to the provisions of Section 3624 of Title 68 of the
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9 Oklahoma Statutes; provided, establishments engaged in electric
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10 automobiles for highway use manufacturing activities defined or
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11 classified in the 2022 NAICS Manual under U.S. Industry Group No.
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12 336110 shall not qualify for any funds from the Oklahoma Quick
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13 Action Closing Fund.
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14  D. Except in the case of a high impact high-impact production

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15 company which has been approved for a rebate pursuant to the
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16 provisions of Section 3624 of Title 68 of the Oklahoma Statutes, the
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17 Governor shall not approve payments from the Oklahoma Quick Action
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18 Closing Fund unless the Oklahoma Department of Commerce has
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19 conducted a complete analysis of the potential impact of the
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20 applicant's business activity which shall include, but not be
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21 limited to:
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22  1. The number of jobs to be created by a new business

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23 establishment;
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    Req. No. 434                                                Page 3
1   2. The number of jobs to be retained by an existing business

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2 establishment;
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3   3. The average salary of jobs to be created by a new

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4 establishment;
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5   4. The average salary of jobs to be retained by an existing

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6 business establishment;
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7   5. The total capital investment to be made by the business

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8 establishment;
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9   6. The likelihood of other business establishments locating

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10 within the same vicinity or within the state as a result of the
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11 business activity to be conducted by the entity to receive payments
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12 from the Oklahoma Quick Action Closing Fund;
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13  7. The impact on the economy of the area or community in which

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14 the business activity of the applicant is or will be conducted; and
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15  8. Such other factors as the Governor and the Oklahoma

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16 Department of Commerce determine to be relevant.
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17  E. The Oklahoma Department of Commerce shall administer the

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18 Oklahoma Quick Action Closing Fund, and expenditures from the fund
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19 shall be recommended by the Director of the Oklahoma Department of
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20 Commerce to the Governor after a thorough evaluation of selected
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21 projects or facilities or after a rebate is approved for payment to
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22 a high impact high-impact production company pursuant to the
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23 provisions of Section 3624 of Title 68 of the Oklahoma Statutes.
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24 Except for rebates approved pursuant to the provisions of Section
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    Req. No. 434                                          Page 4
1 3624 of Title 68 of the Oklahoma Statutes, the Director of the
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2 Oklahoma Department of Commerce shall only recommend expenditures
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3 that the Director determines are expected to result in a net
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4 economic benefit to the state through the following:
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5   1. The creation of new jobs which offer a basic health benefit

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6 plan, as defined in the Oklahoma Quality Jobs Program Act;
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7   2. The maintenance of existing jobs which are at a risk for

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8 termination;
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9   3. Investment in new real property, plant plants, or equipment

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10 or in the improvement or retooling of existing plant plants or
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11 equipment; or
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12  4. Additional revenues in either ad valorem, income, or sales

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13 and use taxes.
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14  F. The Oklahoma Department of Commerce shall develop rules for

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15 the process of reviewing proposed expenditures from the Oklahoma
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16 Quick Action Closing Fund and for the determination of whether or
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17 not proposed expenditures meet the criteria identified in subsection
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18 E of this section. Criteria shall include, but not be limited to,
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19 requirements for economic impact, local participation in the
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20 project, capital investment, and average wage thresholds.
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21  G. Upon receipt of an evaluation that recommends an expenditure

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22 from the Oklahoma Quick Action Closing Fund from the Director of the
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23 Oklahoma Department of Commerce, the Governor shall provide the
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24 evaluation and recommendation to the President Pro Tempore of the
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    Req. No. 434                                              Page 5
1 State Senate and the Speaker of the Oklahoma House of
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2 Representatives before giving final approval for the expenditure on
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3 the project. The Executive Office of the Governor shall recommend
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4 final approval of an expenditure on a project pursuant to
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5 consultation with the President Pro Tempore of the State Senate and
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6 the Speaker of the Oklahoma House of Representatives.
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7   H. Upon approval by the Governor, the Oklahoma Department of

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8 Commerce shall enter into an agreement that sets forth the
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9 conditions for payment of monies from the Oklahoma Quick Action
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10 Closing Fund. The agreement must include:
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11  1. The total amount of funds awarded;

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12  2. Except in the case of a rebate approved for payment to a

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13 high impact high-impact production company pursuant to the
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14 provisions of Section 3624 of Title 68 of the Oklahoma Statutes, the
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15 performance conditions that must be met to obtain the award
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16 including, but not limited to, net new employment in the state,
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17 average salary, and total capital investment;
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18  3. If appropriate, a baseline of current service and measure of

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19 enhanced capability;
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20  4. The methodology of validating performance;

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21  5. The schedule of payments from the fund, and claw-back

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22 provisions for failure to meet performance conditions; and
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23  6. A requirement that no monies paid from the Oklahoma Quick

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24 Action Closing Fund shall be used by a recipient or any other person
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    Req. No. 434                                                Page 6
1 or entity for purposes of any political contribution to or on behalf
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2 of any candidate or for the support of or opposition to any measure
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3 including, but not limited to, an initiative petition or referendum.
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4   I. The Oklahoma Department of Commerce shall make available on

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5 its website or other website dedicated for this purpose a complete
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6 disclosure of all payments made from the Oklahoma Quick Action
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7 Closing Fund. The disclosure shall include a description of the
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8 expenditures made by the business establishment with the payments
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9 made from the fund. No proprietary information of the business
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10 establishment shall be subject to the requirements of this
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11 subsection.
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12  J. If any or all of the amount to be awarded is used to build a

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13 capital improvement, except in the case of an amount approved for
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14 payment to a high impact high-impact production company pursuant to
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15 the provisions of Section 3624 of Title 68 of the Oklahoma Statutes:
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16  1. The funds used for the capital improvement shall be deemed

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17 to be held in trust for the benefit of the state and shall be
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18 considered as a priority claim for purposes of federal bankruptcy
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19 law; and
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20  2. If the capital improvement is sold, the recipient of the

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21 award shall:
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22           a. repay the state the money awarded to pay for the

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23                capital improvement, with interest at the rate and

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    Req. No. 434                                               Page 7
1                 according to the other terms provided by the

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2                 agreement, and

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3   b. share with the state a proportionate amount of any

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4                 profit realized from the sale.

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5   K. If, as of the date certain provided in the agreement, the

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6 award recipient has not used monies awarded for the intended
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7 purposes, the recipient shall repay that amount and any related
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8 interest to the state at the agreed rate and on the agreed terms and
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9 any such amounts shall be deemed to be held in trust for the benefit
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10 of the state and shall be considered as a priority claim for
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11 purposes of federal bankruptcy law.
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12  SECTION 2. This act shall become effective November 1, 2025.

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14  60-1-434      QD              12/30/2024 11:23:30 PM

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    Req. No. 434                                                Page 8
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