1 STATE OF OKLAHOMA
1
2 1st Session of the 59th Legislature (2023)
2
3 SENATE BILL 385 By: Kirt
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to incentive payments; amending 68
7 O.S. 2021, Sections 3603, 3604, and 3604.1, which
8 relate to the Oklahoma Quality Jobs Program;
8 modifying wage requirement for establishments
9 entering the Oklahoma Quality Jobs Program Act as the
9 result of a change-in-control event for certain
10 period; modifying wage requirement for certain
10 applicants; limiting maximum wage requirement to
11 certain period; clarifying statutory language; and
11 providing an effective date.
12
12
13
13
14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
14
15 SECTION 1. AMENDATORY 68 O.S. 2021, Section 3603, is
15
16 amended to read as follows:
16
17 Section 3603. A. As used in the Oklahoma Quality Jobs Program
17
18 Act:
18
19 1. a. “Basic industry” means:
19
20 (1) those manufacturing activities defined or
20
21 classified in the NAICS Manual under Industry
21
22 Sector Nos. 31, 32 and 33, Industry Group No.
22
23 5111 or Industry No. 11331,
23
24
24
Req. No. 1621 Page 1
 1 (2) those electric power generation, transmission,
1
2 and distribution activities defined or classified
2
3 in the NAICS Manual under U.S. Industry Nos.
3
4 221111 through 221122, if:
4
5 (a) an establishment engaged therein qualifies
5
6 as an exempt wholesale generator as defined
6
7 by 15 U.S.C., Section 79z-5a,
7
8 (b) the exempt wholesale generator facility
8
9 consumes from sources located within the
9
10 state at least ninety percent (90%) of the
10
11 total energy used to produce the electrical
11
12 output which qualifies for the specialized
12
13 treatment provided by the Energy Policy Act
13
14 of 1992, P.L. 102-486, 106 Stat. 2776, as
14
15 amended, and federal regulations adopted
15
16 pursuant thereto,
16
17 (c) the exempt wholesale generator facility
17
18 sells to purchasers located outside the
18
19 state for consumption in activities located
19
20 outside the state at least ninety percent
20
21 (90%) of the total electrical energy output
21
22 which qualifies for the specialized
22
23 treatment provided by the Energy Policy Act
23
24 of 1992, P.L. 102-486, 106 Stat. 2776, as
24
Req. No. 1621 Page 2
 1 amended, and federal regulations adopted
1
2 pursuant thereto, and
2
3 (d) the facility is constructed on or after July
3
4 1, 1996,
4
5 (3) those administrative and facilities support
5
6 service activities defined or classified in the
6
7 NAICS Manual under Industry Group Nos. 5611 and
7
8 5612, Industry Nos. 51821, 519130, 52232, and
8
9 56142 or U.S. Industry Nos. 524291 and 551114,
9
10 those other support activities for air
10
11 transportation defined or classified in the NAICS
11
12 Manual under Industry Group No. 488190, and those
12
13 support, repair, and maintenance service
13
14 activities for the wind industry defined or
14
15 classified in the NAICS Manual under Industry
15
16 Group No. 811310,
16
17 (4) those professional, scientific, and technical
17
18 service activities defined or classified in the
18
19 NAICS Manual under U.S. Industry Nos. 541710 and
19
20 541380,
20
21 (5) distribution centers for retail or wholesale
21
22 businesses defined or classified in the NAICS
22
23 Manual under Sector No. 42, if forty percent
23
24
24
Req. No. 1621 Page 3
 1 (40%) or more of the inventory processed through
1
2 such warehouse is shipped out-of-state,
2
3 (6) those adjustment and collection service
3
4 activities defined or classified in the NAICS
4
5 Manual under U.S. Industry No. 561440, if
5
6 seventy-five percent (75%) of the loans to be
6
7 serviced were made by out-of-state debtors,
7
8 (7) (a) those air transportation activities defined
8
9 or classified in the NAICS Manual under
9
10 Industry Group No. 4811, if the following
10
11 facilities are located in this state:
11
12 (i) the corporate headquarters of an
12
13 establishment classified therein, and
13
14 (ii) a facility or facilities at which
14
15 reservations for transportation
15
16 provided by such an establishment are
16
17 processed, whether such services are
17
18 performed by employees of the
18
19 establishment, by employees of a
19
20 subsidiary of or other entity
20
21 affiliated with the establishment or by
21
22 employees of an entity with whom the
22
23 establishment has contracted for the
23
24 performance of such services; provided,
24
Req. No. 1621 Page 4
 1 this provision shall not disqualify an
1
2 establishment which uses an out-of-
2
3 state entity or employees for some
3
4 reservations services, or
4
5 (b) those air transportation activities defined
5
6 or classified in the NAICS Manual under
6
7 Industry Group No. 4811, if an establishment
7
8 classified therein has or will have within
8
9 one (1) year sales of at least seventy-five
9
10 percent (75%) of its total sales, as
10
11 determined by the Incentive Approval
11
12 Committee pursuant to the provisions of
12
13 subsection B of this section, to out-of-
13
14 state customers or buyers, to in-state
14
15 customers or buyers if the product or
15
16 service is resold by the purchaser to an
16
17 out-of-state customer or buyer for ultimate
17
18 use, or to the federal government,
18
19 (8) flight training services activities defined or
19
20 classified in the NAICS Manual under U.S.
20
21 Industry Group No. 611512, which for purposes of
21
22 the Oklahoma Quality Jobs Program Act shall
22
23 include new direct jobs for which gross payroll
23
24
24
Req. No. 1621 Page 5
 1 existed on or after January 1, 2003, as
1
2 identified in the NAICS Manual,
2
3 (9) the following, if an establishment classified
3
4 therein has or will have within one (1) year
4
5 sales of at least seventy-five percent (75%) of
5
6 its total sales, as determined by the Incentive
6
7 Approval Committee pursuant to the provisions of
7
8 subsection B of this section, to out-of-state
8
9 customers or buyers, to in-state customers or
9
10 buyers if the product or service is resold by the
10
11 purchaser to an out-of-state customer or buyer
11
12 for ultimate use, or to the federal government:
12
13 (a) those transportation and warehousing
13
14 activities defined or classified in the
14
15 NAICS Manual under Industry Subsector No.
15
16 493, if not otherwise listed in this
16
17 paragraph, Industry Subsector Nos. 482 and
17
18 484 and Industry Group Nos. 4884 through
18
19 4889,
19
20 (b) those passenger transportation activities
20
21 defined or classified in the NAICS Manual
21
22 under Industry Nos. 561510 and 561599,
22
23
23
24
24
Req. No. 1621 Page 6
 1 (c) those freight or cargo transportation
1
2 activities defined or classified in the
2
3 NAICS Manual under Industry No. 541614,
3
4 (d) those insurance activities defined or
4
5 classified in the NAICS Manual under
5
6 Industry Group No. 5241,
6
7 (e) those services to dwellings and other
7
8 buildings, as defined or classified in the
8
9 NAICS Manual under Industry Group No. 5617,
9
10 excluding U.S. Industry Nos. 561730, 56171,
10
11 56172, 56174, and 56179,
11
12 (f) those equipment rental and leasing
12
13 activities defined or classified in the
13
14 NAICS Manual under Industry Group No. 5324,
14
15 (g) those information technology and other
15
16 computer-related service activities defined
16
17 or classified in the NAICS Manual under
17
18 Industry Group Nos. 5112, 5182, 5191, and
18
19 5415,
19
20 (h) those business support service activities
20
21 defined or classified in the NAICS Manual
21
22 under U.S. Industry Nos. 561410 through
22
23 561430, excluding 56143, and Industry No.
23
24 51911,
24
Req. No. 1621 Page 7
 1 (i) those medical and diagnostic laboratory
1
2 activities defined or classified in the
2
3 NAICS Manual under Industry Group No. 6215,
3
4 (j) those professional, scientific, and
4
5 technical service activities defined or
5
6 classified in the NAICS Manual under
6
7 Industry Group Nos. 5412, 5414, 5415, 5416
7
8 and 5417, Industry Nos. 54131, 54133, 54136,
8
9 and 54137, and U.S. Industry No. 541990, if
9
10 not otherwise listed in this paragraph,
10
11 (k) those communication service activities
11
12 defined or classified in the NAICS Manual
12
13 under Industry Nos. 51741 and 51791,
13
14 (l) those refuse systems activities defined or
14
15 classified in the NAICS Manual under
15
16 Industry Group No. 5622, provided that the
16
17 establishment is primarily engaged in the
17
18 capture and distribution of methane gas
18
19 produced within a landfill,
19
20 (m) general wholesale distribution of groceries,
20
21 defined or classified in the NAICS Manual
21
22 under Industry Group Nos. 4244 and 4245,
22
23 (n) those activities relating to processing of
23
24 insurance claims, defined, or classified in
24
Req. No. 1621 Page 8
 1 the NAICS Manual under U.S. Industry Nos.
1
2 524210 and 524292; provided, activities
2
3 described in U.S. Industry Nos. 524210 and
3
4 524292 in the NAICS Manual other than
4
5 processing of insurance claims shall not be
5
6 included for purposes of this subdivision,
6
7 (o) those agricultural activities classified in
7
8 the NAICS Manual under U.S. Industry Nos.
8
9 112120 and 112310,
9
10 (p) those professional organization activities
10
11 classified in the NAICS Manual under U.S.
11
12 Industry No. 813920,
12
13 (q) alternative energy structure construction
13
14 classified in the NAICS Manual under U.S.
14
15 Industry No. 237130,
15
16 (r) solar reflective coating application
16
17 classified in the NAICS Manual under U.S.
17
18 Industry No. 238160,
18
19 (s) solar heating equipment installation
19
20 classified in the NAICS Manual under U.S.
20
21 Industry No. 238220,
21
22 (t) those wired telecommunications carriers
22
23 classified in the NAICS Manual under U.S.
23
24 Industry No. 517110, and
24
Req. No. 1621 Page 9
 1 (u) those securities, commodity contracts, and
1
2 investment activities classified in the
2
3 NAICS Manual under Industry Subsector No.
3
4 523,
4
5 (10) those activities related to extraction or
5
6 pipeline transportation of petroleum, natural
6
7 gas, or refined petroleum products, defined or
7
8 classified in the NAICS Manual under Industry
8
9 Group No. 2111, 213111, 213112, or 486, subject
9
10 to the limitations provided in paragraph 3 of
10
11 this subsection and paragraph 3 of subsection B
11
12 of this section,
12
13 (11) those activities performed by the federal
13
14 civilian workforce at a facility of the Federal
14
15 Aviation Administration located in this state if
15
16 the Director of the Oklahoma Department of
16
17 Commerce determines or is notified that the
17
18 federal government is soliciting proposals or
18
19 otherwise inviting states to compete for
19
20 additional federal civilian employment