1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 4064 By: Wallace
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6 AS INTRODUCED
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7 An Act relating to public finance; creating the
7 Oklahoma Small Business Expansion and Jobs Act;
8 providing for certain reference; defining terms;
8 authorizing certain uses of certain funds; requiring
9 certain actions prior to loan administration;
9 requiring the development of a revolving loan
10 program; requiring certain program criteria and
10 processes; requiring certain quarterly reporting;
11 prohibiting certain actions; creating the Small
11 Business Expansion Revolving Fund; establishing the
12 Fund under the Oklahoma Center for the Advancement of
12 Science and Technology; establishing revolving fund
13 characteristics; authorizing and limiting expenditure
13 and budgeting of funds; creating accounts with the
14 Fund; providing for allocation Fund balance among the
14 accounts; authorizing opt in feature to program;
15 providing opt in process; providing for codification;
15 providing an effective date; and declaring an
16 emergency.
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19 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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20 SECTION 1. NEW LAW A new section of law to be codified
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21 in the Oklahoma Statutes as Section 2031 of Title 62, unless there
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22 is created a duplication in numbering, reads as follows:
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23 This act shall be known and may be cited as the "Oklahoma Small
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24 Business Expansion and Jobs Act."
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 1 SECTION 2. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 2032 of Title 62, unless there
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3 is created a duplication in numbering, reads as follows:
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4 As used in the Oklahoma Small Business Expansion and Jobs Act:
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5 1. "Fixed interest rate" means an interest rate no greater than
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6 three percent (3%) above the prime rate as published in the Wall
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7 Street Journal at the beginning of the month in which the applicant
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8 requests a loan;
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9 2. "Opt in" means the option an entity shall have to receive or
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10 refuse funds for the purpose of establishing a revolving loan fund;
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11 3. "Revolving loan fund" means a fund in which local small
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12 businesses may obtain a loan and repay such loan principal and
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13 interest, and such repayment proceeds are then used to fund
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14 subsequent loans or expansions of services by the loan-making
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15 entity, including ongoing administrative and operating costs;
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16 4. "Small business" means a corporation, sole proprietor,
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17 partnership, or limited liability company that is an employer in the
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18 state that has 50 employees or fewer as defined in paragraph 3 of
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19 Section 502 of Title 75 of the Oklahoma Statutes; and
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20 5. "Substate planning district" means an entity as described in
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21 subsection A of Section 2007 of Title 62 of the Oklahoma Statutes.
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22 SECTION 3. NEW LAW A new section of law to be codified
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23 in the Oklahoma Statutes as Section 2033 of Title 62, unless there
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24 is created a duplication in numbering, reads as follows:
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 1 A. Each substate planning district is authorized to utilize the
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2 funds in the district's applicable account created pursuant to
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3 subsection B of Section 4 of the Oklahoma Small Business Expansion
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4 and Jobs Act:
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5 1. To capitalize a revolving loan fund to support small
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6 business expansion; and
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7 2. To cover costs associated with administering the revolving
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8 loan fund.
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9 B. Prior to the administration of a loan application under the
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10 provisions of the Oklahoma Small Business Expansion and Jobs Act,
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11 substate planning districts shall promulgate rules for the creation,
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12 application, and administration of the district's revolving loan
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13 program.
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14 C. Each substate planning district utilizing the Oklahoma Small
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15 Business Expansion and Jobs Act shall develop a revolving loan
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16 program. Such program shall adhere to the following criteria and
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17 requirements:
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18 1. Loan applicants:
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19 a. shall be classified as a small business or
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20 municipality to be eligible for a loan under the
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21 program,
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22 b. shall live within the boundaries of the substate
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23 planning district administering the program,
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 1 c. shall have their business located within the
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2 boundaries of the substate planning district
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3 administering the program, and
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4 d. shall not be directly related to any individual
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5 involved in the awarding of loans under the revolving
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6 loan program;
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7 2. Substate planning districts:
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8 a. shall charge a fixed interest rate on all loans
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9 administered through the revolving loan program, and
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10 b. shall not make any loan to itself or another substate
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11 planning district.
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12 D. Each substate planning district utilizing the Oklahoma Small
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13 Business Expansion and Jobs Act shall submit to the Oklahoma Center
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14 for the Advancement of Science and Technology in written or
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15 electronic format, a quarterly report detailing the activity of the
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16 applicable revolving loan program, including, but not limited to,
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17 the number and amount of loans initiated, administered, and
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18 concluded during the previous quarter.
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19 SECTION 4. NEW LAW A new section of law to be codified
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20 in the Oklahoma Statutes as Section 2034 of Title 62, unless there
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21 is created a duplication in numbering, reads as follows:
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22 A. There is hereby created in the State Treasury a revolving
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23 fund for the Oklahoma Center for the Advancement of Science and
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24 Technology to be designated the "Small Business Expansion Revolving
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 1 Fund". The fund shall be a continuing fund, not subject to fiscal
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2 year limitations, and shall consist of all monies designated for
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3 deposit to the fund by law. All monies accruing to the credit of
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4 said fund are hereby appropriated and may be budgeted and expended
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5 by the Oklahoma Center for the Advancement of Science and Technology
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6 in accordance with the provisions of the Oklahoma Small Business
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7 Expansion and Jobs Act to facilitate financing of Oklahoma small
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8 businesses by capitalizing revolving loan programs across the state.
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9 Expenditures from said fund shall be made upon warrants issued by
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10 the State Treasurer against claims filed as prescribed by law with
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11 the Director of the Office of Management and Enterprise Services for
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12 approval and payment.
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13 B. Within the Small Business Expansion Revolving Fund there
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14 shall be established up to eleven (11) separate accounts into which
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15 shall be deposited equal allocations of such funds as may be
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16 provided to the Small Business Expansion Revolving Fund by law. One
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17 of each such accounts shall be available to each substate planning
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18 district described in subsection A of Section 2007 of Title 62 of
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19 the Oklahoma Statutes that elects to opt in and participate in the
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20 Oklahoma Small Business Expansion and Jobs Act. A substate planning
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21 district may opt in to the Oklahoma Small Business Expansion and
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22 Jobs Act by communicating in written or electronic form such intent,
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23 no later than ninety (90) days after the effective date of this act.
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24 SECTION 5. This act shall become effective July 1, 2024.
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 1 SECTION 6. It being immediately necessary for the preservation
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2 of the public peace, health or safety, an emergency is hereby
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3 declared to exist, by reason whereof this act shall take effect and
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4 be in full force from and after its passage and approval.
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6 59-2-8561 JM 01/05/24
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