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Oklahoma Legislature· SB 300Becomes law without Governor's signature 05/12/2025

An act relating to the Oklahoma Capital Investment 7 Board, the official text

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1                       STATE OF OKLAHOMA

1

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

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3 SENATE BILL 300               By: Kirt
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5

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6                               AS INTRODUCED

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7   An Act relating to the Oklahoma Capital Investment

7   Board; amending 74 O.S. 2021, Sections 5085.5,

8   5085.6, 5085.8, 5085.10, 5085.11, 5085.12, 5085.14,

8   5085.15, and 5085.16, which relate to the Oklahoma

9   Capital Formation Act; modifying definition;

9   modifying reference; dissolving Board upon certain

10  date; transferring certain contracts and management

10  of certain investments to the Oklahoma Science and

11  Technology Research and Development Board; making

11  language gender neutral; updating statutory

12  reference; updating statutory language; and providing

12  an effective date.

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13

14

14

15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16  SECTION 1.     AMENDATORY   74 O.S. 2021, Section 5085.5, is

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17 amended to read as follows:
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18  Section 5085.5. For purposes of this act the Oklahoma Capital

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19 Formation Act:
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20  1. "Board" means the Oklahoma Capital Investment Board Science

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21 and Technology Research and Development Board of the Oklahoma Center
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22 for the Advancement of Science and Technology;
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23  2. "Director" means any person who is a member of the Board;

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24

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    Req. No. 238                                              Page 1
1   3. "Equity capital" means capital invested in common or

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2 preferred stock, royalty rights, limited partnership interests, and
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3 any other securities or rights that evidence ownership in private
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4 businesses;
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5   4. "Investor group" means any individual, corporation,

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6 partnership, or other lawfully organized entity;
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7   5. "Near-equity capital" means capital invested in unsecured,

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8 undersecured, subordinated, or convertible loans or debt securities;
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9   6. "Persons" means individuals, corporations, partnerships, or

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10 other lawfully organized entities;
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11  7. "Put option" means a right or privilege to sell an amount of

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12 a particular security or class of securities during a time period
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13 ending on the expiration date of the option; and
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14  8. "Tax credits" means tax credits available against

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15 liabilities imposed by Section 2355 of Title 68 of the Oklahoma
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16 Statutes or Section 624 of Title 36 of the Oklahoma Statutes and
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17 issued or transferred pursuant to this act the Oklahoma Capital
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18 Formation Act.
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19  a. The tax credits issued or transferred pursuant to the

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20                 Oklahoma Capital Formation Act, upon election by the

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21                 purchaser at utilization, will be treated as a payment

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22                 or prepayment in lieu of tax imposed under Section

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23                 2355 of Title 68 of the Oklahoma Statutes;.

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    Req. No. 238                                                Page 2
1   b. Tax credits utilized pursuant to subparagraph a of

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2                 this paragraph shall be treated and may be claimed as

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3                 a payment of tax or estimated tax for the purposes of

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4                 and as defined provided in Sections 2375, 2385.9, and

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5                 2385.13 of Title 68 of the Oklahoma Statutes. Such

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6                 tax credits are further subject to the system

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7                 developed in conjunction with the Oklahoma Tax

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8                 Commission as required by subsection C H of Section

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9                 5085.7 of this title for registration and verification

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10                of the tax credits. Taxpayers may rely upon the

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11                provisions of the registration and verification system

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12                developed pursuant to Section 5085.7 of this title.

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13  SECTION 2.    AMENDATORY    74 O.S. 2021, Section 5085.6, is

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14 amended to read as follows:
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15  Section 5085.6. A. The Until the effective date of this act,

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16 the Oklahoma Capital Investment Board shall consist of five (5)
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17 Directors who shall be appointed by the Governor with the advice and
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18 consent of the Senate. Directors shall be selected based upon
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19 outstanding knowledge and leadership and shall possess experience in
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20 the management of investments similar in nature and in value to
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21 those of the Board. Directors shall serve for a term of office of
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22 five (5) years. Provided, the initial Board of Directors of the
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23 Oklahoma Capital Investment Board shall consist of the trustees of
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24 the trust certified as the Oklahoma Capital Investment Board
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    Req. No. 238                                                 Page 3
1 pursuant to the provisions of Section 2 of this act Section 5085.2
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2 of this title and the Directors of the Oklahoma Capital Investment
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3 Board who were appointed pursuant to the provisions of Section
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4 5061.6 of Title 74 of the Oklahoma Statutes. Positions on the Board
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5 of Directors held by trustees of such trust shall not be filled as
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6 the terms of office for said the trustees expire. Positions on the
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7 Board of Directors held by Directors of the Oklahoma Capital
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8 Investment Board shall be filled by the Governor with the advice and
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9 consent of the Senate as the terms of office for said the Directors
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10 expire and in a manner to allow one member to rotate off of the
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11 Board each year.
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12  B. Annually, the Directors shall select a chairman chair to

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13 preside at their meetings. The Directors shall have the authority
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14 to manage the Oklahoma Capital Investment Board in accordance with
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15 the requirements of this act the Oklahoma Capital Formation Act and
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16 its trust indenture.
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17  C. The meetings of the Directors shall be subject to the

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18 Oklahoma Open Meeting Act, Section 301 et seq. of Title 25 of the
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19 Oklahoma Statutes, and the Oklahoma Open Records Act, Section 24A.1
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20 et seq. of Title 51 of the Oklahoma Statutes. Any information
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21 submitted to or compiled by the Oklahoma Capital Investment Board
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22 with respect to the marketing plans, financial statements, trade
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23 secrets, research concepts, methods or products, or any other
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24 proprietary information of persons, firms, associations,
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    Req. No. 238                                             Page 4
1 partnerships, agencies, corporations, or other entities shall be
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2 confidential, except to the extent that the person or entity that
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3 provided such information or that is the subject of such information
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4 consents to disclosure. Executive sessions may be held to discuss
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5 such materials if deemed necessary by the Directors.
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6   D. A conflict of interest shall be deemed to exist in any

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7 contractual relationship in which a Director of the Board, officer,
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8 agent, or employee or any for-profit firm or corporation in which
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9 such Director, officer, agent, or employee or any member of his or
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10 her immediate family is an officer, partner, or principal
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11 stockholder, shall directly or indirectly buy or sell goods or
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12 services to, or otherwise contract with the Board. Upon a showing
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13 thereof, such Director, officer, agent, or employee shall be subject
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14 to removal and such contract shall be deemed unenforceable as
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15 against the Board unless the records of the Board shall reflect that
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16 such Director, officer, agent, or employee fully and publicly
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17 disclosed all such interest or interests, and unless such
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18 contractual relationship shall have been secured by competitive
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19 bidding following a public invitation to bid. If a Director,
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20 officer, agent, or employee holds such an interest, he or she shall
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21 refrain from any further official involvement in regard to such
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22 contract or agreement, from voting on any matter pertaining to such
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23 contract or agreement, and from communicating with other Board
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    Req. No. 238                                              Page 5
1 members, officers, agents, or employees concerning said the contract
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2 or agreement.
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3   E. Bonds issued by the Oklahoma Capital Investment Board shall

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4 be subject to oversight pursuant to the Oklahoma Bond Oversight and
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5 Reform Act, Section 695.1 et seq. of Title 62 of the Oklahoma
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6 Statutes.
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7   F. Upon the effective date of this act, the Oklahoma Capital

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8 Investment Board shall be dissolved. Any contracts or agreements
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9 executed by the Board or by any subsidiary or affiliate of the Board
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10 and any investment of funds required by the provisions of a contract
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11 executed by the Board or by any subsidiary or affiliate of the Board
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12 shall be transferred to and managed by the Oklahoma Center for the
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13 Advancement of Science and Technology.
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14  SECTION 3.    AMENDATORY    74 O.S. 2021, Section 5085.8, is

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15 amended to read as follows:
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16  Section 5085.8. A. Except as otherwise provided by subsections

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17 F and G of this section, the Oklahoma Capital Investment Science and
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18 Technology Research and Development Board shall have the power to
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19 solicit proposals from qualified investor groups for investment of
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20 capital in accordance with the requirements of the Oklahoma Capital
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21 Formation Act. The Board shall establish criteria for selection of
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22 persons, firms, corporations, or other entities deemed qualified to
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23 generate capital for investment in a manner which will result in a
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24 significant potential to create jobs and to diversify and stabilize
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    Req. No. 238                           Page 6
1 the economy of the State of Oklahoma this state. Such criteria
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2 shall include the applicant's level of experience, quality of
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3 management, investment philosophy and process, historical investment
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4 performance, probability of success in fund raising, the amount and
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5 timing of fees to be paid, and such other investment criteria as may
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6 be commonly used in professional portfolio management as the Board
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7 may deem appropriate.
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8   B. Except as otherwise provided by subsections F and G of this

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9 section, the Board shall have the power to extend a guarantee in the
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10 form of a put option or such other method as selected by the Board.
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11 Guarantees may extend to principal plus interest over the term of
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12 the guarantee at a rate set by Board resolution from time to time.
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13 Guarantees in whatever form negotiated by the Board may be made for
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14 any period of time, but no term shall expire prior to January 1,
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15 1992. The Board may charge a reasonable fee for costs and the fair
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16 compensation of risk associated with its guarantee. The guarantees
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17 extended by the Board shall in no way be an obligation of the state
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18 and may be restricted to specific funds or assets of the Board;
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19 provided, however, proceeds from the sale of any tax credits shall
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20 be sufficient to meet contractual guarantee obligations of the
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21 Board. The Board shall have the right to contract freely to protect
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22 the interests of the State of Oklahoma this state. The Board shall
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23 ensure that at least Two Dollars ($2.00) will be invested in
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    Req. No. 238         Page 7
1 Oklahoma businesses or projects for every One Dollar ($1.00) of
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2 principal guaranteed by the Board.
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3   C. If the Board purchases any security pursuant to an agreement

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4 with an investor group, the Board shall acquire such securities and
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5 may invest, manage, transfer, or dispose of such securities in
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6 accordance with policies for management of assets adopted by the
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7 Board.
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8   D. Except as otherwise provided by subsections F and G of this

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9 section, the Board shall have the power to make any contract,
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10 execute any document, perform any act, or enter into any financial
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11 or other transaction necessary in order to carry out its mission.
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12 The Board may employ such persons as may be required for the
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13 performance of any function authorized or required by the Oklahoma
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14 Capital Formation Act or necessary for the accomplishment of any
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15 such function. Such persons shall be selected based upon
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16 outstanding knowledge and leadership in the field for which the
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17 person performs services for the Board. In selecting such persons,
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18 the Board shall hire persons who meet standards applicable to
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19 persons responsible for investment of equity and near-equity
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20 securities.
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21  E. In carrying out the mission of the Board as authorized in

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22 the Oklahoma Capital Formation Act, neither the Board nor its
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23 officers, directors, or employees shall be considered to be broker-
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24 dealers, agents, investment advisors, or investment adviser
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    Req. No. 238                                                Page 8
1 representatives under Title 71 of the Oklahoma Statutes. The tax
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2 credits issued or transferred pursuant to the Oklahoma Capital
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3 Formation Act and Section 2357.7 of Title 68 of the Oklahoma
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4 Statutes shall not be considered to be securities under Title 71 of
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5 the Oklahoma Statutes.
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6   F. On and after the effective date of this act June 8, 2012,

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7 except for the investment of funds required by provisions in a
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8 contract executed by the Board or by any subsidiary or affiliate of
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9 the Board prior to the effective date of this act June 8, 2012, or
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10 executed by an entity that was not a subsidiary or affiliate of the
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11 Board at the time such contract was executed but which became a
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12 subsidiary or affiliate of the Board subsequent to the execution of
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13 such contract, but prior to the effective date of this act June 8,
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14 2012, neither the Board nor any entity which is a subsidiary or
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15 affiliate of the Board nor any entity which is controlled either
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16 directly or indirectly by the Board or which acts under the
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17 authority of or pursuant to the direction of the Board shall:
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18  1. Enter into any contract authorizing or requiring the

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19 investment of any funds obtained by the Board, or commitment binding
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20 the Board to make any investment of any funds obtained by the Board,
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21 or the investment of any funds obtained by a subsidiary, affiliate,
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22 or any entity under the direct or indirect control of the Board, in
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23 any corporation, general partnership, limited partnership, limited
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    Req. No. 238                                                Page 9
1 liability company, private equity or hedge fund, or other lawfully
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2 recognized business entity; or
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3   2. Modify any agreement executed prior to the effective date of

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4 this act June 8, 2012, by the Board or executed by any subsidiary or
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5 affiliate of the Board or executed by any entity that was not a
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6 subsidiary or affiliate of the Board at the time such contract was
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7 executed, but which subsequently became a subsidiary or affiliate,
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8 in any manner that would have the effect of increasing the amount of
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9 any contractual commitment to make an investment of funds in a
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10 general or limited partnership, corporation, limited liability
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11 company, private equity or hedge fund, or any other lawfully
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12 recognized entity.
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13  G. On and after the effective date of this act June 8, 2012,

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14 except for the use of funds required by provisions in a contract
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15 executed by the Board or by any subsidiary or affiliate of the Board
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16 prior to the effective date of this act June 8, 2012, or executed by
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17 an entity that was not a subsidiary or affiliate of the Board at the
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18 time such contract was executed but which became a subsidiary or
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19 affiliate of the Board subsequent to the execution of such contract,
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20 but prior to the effective date of this act June 8, 2012, neither
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21 the Board nor any entity which is a subsidiary or affiliate of the
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22 Board nor any entity which is controlled either directly or
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23 indirectly by the Board or which acts under the authority of or
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24 pursuant to the direction of the Board shall:
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    Req. No. 238                                  Page 10
1   1. Enter into any contract for the purpose of guaranteeing, in

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2 whole or in part, the repayment of obligations owed by a business
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3 entity, other than a subsidiary of the Board, in connection with a
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4 loan of money from a bank, financial institution, or any other
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5 entity; or
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6   2. Modify any contract described by paragraph 1 of this

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7 subsection executed prior to the effective date of this act June 8,
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8 2012, by the Board or executed by any subsidiary or affiliate of the
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9 Board or executed by any entity that was not a subsidiary or
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10 affiliate of the Board at the time such contract was executed, but
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11 which subsequently became a subsidiary or affiliate, in a manner
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12 that would increase any existing obligation of the Board or its
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13 subsidiary or affiliate or extend the term of any such contract.
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14  SECTION 4.    AMENDATORY    74 O.S. 2021, Section 5085.10, is

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15 amended to read as follows:
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16  Section 5085.10. Notwithstanding other provisions of law, the

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17 Oklahoma Science and Technology Research and Development Board or
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18 any entity designated by the Board, shall have the authority to
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19 expend funds to administer and operate the programs of the Oklahoma
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20 Capital Investment Board.
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21  SECTION 5.    AMENDATORY    74 O.S. 2021, Section 5085.11, is

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22 amended to read as follows:
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23  Section 5085.11. A. There is hereby created in the State

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24 Treasury a revolving fund for the Oklahoma Department of Commerce to
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    Req. No. 238                Page 11
1 be designated the "Oklahoma Capital Formation Revolving Fund". The
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2 fund shall be a continuing fund, not subject to fiscal year
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3 limitations, and shall consist of appropriated funds. All monies
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4 accruing to the credit of said the fund are hereby appropriated and,
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5 as authorized by the Oklahoma Capital Investment Science and
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6 Technology Research and Development Board, shall be expended by the
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7 Oklahoma Department of Commerce to perform the duties imposed upon
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8 the Oklahoma Capital Investment Board by law. Expenditures of
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9 appropriated funds from said the fund shall be made upon warrants
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10 issued by the State Treasurer against claims filed as prescribed by
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11 law with the Director of the Office of Management and Enterprise
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12 Services for approval and payment.
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13  B. On the effective date of this act July 1, 1991, any

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14 unencumbered funds remaining in the Oklahoma Capital Investment
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15 Board Revolving Fund shall be transferred to the credit of the
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16 Oklahoma Capital Formation Revolving Fund. Any unexpended funds
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17 remaining in the Oklahoma Capital Investment Board Revolving Fund
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18 after November 15, 1991, shall be transferred to the credit of the
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19 Oklahoma Capital Formation Revolving Fund.
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20  SECTION 6.    AMENDATORY           74 O.S. 2021, Section 5085.12, is

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21 amended to read as follows:
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22  Section 5085.12. Nothing contained herein is or shall be

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23 construed as a restriction or limitation upon any powers which the
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24 Oklahoma Capital Investment Science and Technology Research and
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    Req. No. 238                               Page 12
1 Development Board might otherwise have under any other law of this
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2 state heretofore or hereafter enacted and the provisions of this act
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3 the Oklahoma Capital Formation Act are cumulative to such powers.
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4 The provisions hereof do and shall be construed to provide a
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5 complete, additional, and alternative method for the doing of the
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6 things authorized and shall be regarded as supplemental and
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7 additional to powers conferred by any other laws.
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8   SECTION 7.    AMENDATORY       74 O.S. 2021, Section 5085.14, is

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9 amended to read as follows:
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10  Section 5085.14. A. The Oklahoma Capital Investment Science

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11 and Technology Research and Development Board may adopt rules,
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12 policies, procedures, and regulatory and administrative measures
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13 necessary to administer the programs of the Board or convenient for
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14 the organization and internal management of Board responsibilities.
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15  B. The level, timing, or degree of success of the Oklahoma

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16 Capital Investment Board in mobilizing or ensuring investment in
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17 Oklahoma businesses or projects, accomplishing other economic
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18 development objectives, or achieving any other statutory duty shall
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19 not compromise, diminish, invalidate, or affect the enforceability
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20 of any guarantee of the Board.
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21  SECTION 8.    AMENDATORY       74 O.S. 2021, Section 5085.15, is

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22 amended to read as follows:
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23  Section 5085.15. Within thirty (30) days after the Oklahoma

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24 Capital Investment Science and Technology Research and Development
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    Req. No. 238                                     Page 13
1 Board or any subsidiary or affiliate of the Board has made payment
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2 of any remaining expense or obligation created by the Board or by
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3 the subsidiary or affiliate, pursuant to the terms of any promissory
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4 note, loan agreement, guaranty agreement, investment agreement, or
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5 other contract or agreement, any remaining monies paid to either the
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6 Board or any subsidiary or affiliate of the Board pursuant to the
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7 terms of an agreement or contract entered into prior to the
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8 effective date of this act June 8, 2012, shall be paid by the Board
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9 or by its subsidiary or affiliate to the General Revenue Fund of the
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10 State Treasury.
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11  SECTION 9.      AMENDATORY  74 O.S. 2021, Section 5085.16, is

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12 amended to read as follows:
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13  Section 5085.16. None of the provisions of this act the

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14 Oklahoma Capital Formation Act shall alter, amend, modify, affect,
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15 diminish, or impair the enforceability of, or any obligation or
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16 liability of the Oklahoma Capital Investment Science and Technology
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17 Research and Development Board or any entity which is a subsidiary
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18 or affiliate of the Oklahoma Capital Investment Board or any entity
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19 which is controlled either directly or indirectly by the Oklahoma
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20 Capital Investment Board under any contract, agreement, guarantee,
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21 or instrument entered into or delivered by such party with any
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22 business entity or bank, financial institution, or any other entity
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23 existing as of the effective date of this act June 8, 2012,
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24 including, without limitation, any guarantee extended by the
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    Req. No. 238                Page 14
1 Oklahoma Capital Investment Board and any assignment of any third-
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2 party commitments to purchase, and proceeds released from the sale
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3 of, tax credits, all of which shall remain in full force and effect.
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4   SECTION 10. This act shall become effective November 1, 2025.

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    Req. No. 238                              Page 15
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