1 STATE OF OKLAHOMA
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2 1st Session of the 58th Legislature (2021)
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3 SENATE BILL 422 By: Simpson
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6 AS INTRODUCED
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7 An Act relating to the Agriculture Enhancement and
7 Diversification Program; amending 2 O.S. 2011,
8 Sections 5-3.2, as last amended by Section 1, Chapter
8 123, O.S.L. 2015 and 5-3.4, as amended by Section 3,
9 Chapter 123, O.S.L. 2015 (2 O.S. Supp. 2020, Sections
9 5-3.2 and 5-3.4), which relate to the purpose and
10 categories of the program, and grants and loan
10 criteria; removing purpose; modifying and removing
11 categories; removing authorization for matching
11 funds; removing and modifying preferences and
12 exclusions; requiring nondisclosure pursuant to the
12 Oklahoma Open Records Act; removing authorization for
13 executive sessions by the Board under certain
13 circumstances; exempting certain advisory meeting
14 from the Oklahoma Open Meeting Act; updating
14 statutory language; and providing an effective date.
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16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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17 SECTION 1. AMENDATORY 2 O.S. 2011, Section 5-3.2, as
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18 last amended by Section 1, Chapter 123, O.S.L. 2015 (2 O.S. Supp.
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19 2020, Section 5-3.2), is amended to read as follows:
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20 Section 5-3.2. A. The State Board of Agriculture is hereby
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21 authorized to establish and administer the Oklahoma Agriculture
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22 Enhancement and Diversification Program.
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 1 B. The purpose of the Oklahoma Agriculture Enhancement and
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2 Diversification Program is to promote and encourage the interests of
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3 agriculture through the allocation of funds, by grant or loan, to
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4 individuals, cooperatives and other agricultural entities to:
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5 1. Develop new or expanded uses of agricultural products;
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6 2. Develop new or expanded benefits of agricultural events;
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7 3. Increase agricultural productivity;
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8 4. 3. Provide added value to agricultural products or events;
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9 5. 4. Benefit the agricultural producer; and
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10 6. 5. Benefit the agricultural interests of Oklahoma this
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11 state.
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12 C. The Program shall consist of the following categories:
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13 1. Cooperative marketing Value-added agriculture grants and
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14 loans for entities or individuals intending to work together to
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15 develop or establish production, processing or marketing of
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16 agricultural products. The purpose of this category is to provide
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17 funding for promoting productivity, providing added value to
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18 agricultural products, stimulating and fostering agricultural
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19 diversification and encouraging processing innovations;
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20 2. Marketing and utilization grants and loans to assist in the
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21 development or implementation of sound domestic or foreign marketing
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22 plans for Oklahoma agricultural products, by-products, or new and
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23 better uses for existing agricultural products through the financing
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 1 of marketing feasibility studies, business plans, and test
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2 marketing;
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3 3. Farm diversification grants or loans for projects dealing
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4 with the diversification of family farms or ranches to
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5 nontraditional crops, livestock, agritourism, or on-farm, value-
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6 added processing of agricultural commodities;
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7 4. Basic and applied 3. Product development and research
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8 grants and loans for agricultural business creation or expansion, or
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9 research which will likely lead to a marketable agricultural product
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10 through the focusing of research efforts on uses and processing of
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11 Oklahoma agricultural products and by-products, including but not
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12 limited to:
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13 a. focused research which enhances the value of an
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14 agricultural product or by-product,
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15 b. feasibility studies, and
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16 c. product development and test marketing costs, and
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17 d. projects that are driven by an entrepreneur or the
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18 industry; and
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19 5. Agricultural event 4. Veteran or young farmer grants or
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20 loans for veterans and young farmers that are engaged or will be
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21 engaged in expansion or creation of events that benefit and further
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22 the public interest in agriculture an agricultural business.
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 1 D. The State Board of Agriculture shall promulgate rules
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2 governing the Oklahoma Agriculture Enhancement and Diversification
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3 Program.
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4 SECTION 2. AMENDATORY 2 O.S. 2011, Section 5-3.4, as
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5 amended by Section 3, Chapter 123, O.S.L. 2015 (2 O.S. Supp. 2020,
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6 Section 5-3.4), is amended to read as follows:
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7 Section 5-3.4. A. The Oklahoma Department of Agriculture,
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8 Food, and Forestry shall require eligible applicants to submit
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9 information, forms and reports as are necessary to properly and
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10 efficiently administer the Oklahoma Agriculture Enhancement and
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11 Diversification Program.
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12 B. Persons may apply to the Department for grant or loan funds
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13 in accordance with rules promulgated by the State Board of
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14 Agriculture. Applications for grant or loan funds shall be approved
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15 or denied by the Department in accordance with criteria promulgated
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16 by the State Board of Agriculture pursuant to the Oklahoma
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17 Agriculture Enhancement and Diversification Program.
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18 C. The State Board of Agriculture may also allocate monies from
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19 the fund to eligible applicants on a matching basis.
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20 D. Grant or loan funds may be made available to eligible
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21 applicants pursuant to evaluation by the Department based on the
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22 following criteria:
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23 1. Preference may be given to the applicants whose:
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 1 a. industrial and nonfood production processes utilize
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2 agricultural products,
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3 b. food, feed and fiber products and uses are innovative
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4 and add to the value of agricultural products,
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5 c. applications demonstrate a high probability of job
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6 creation and return-on-investment,
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7 d. proposals feature research that is innovative as well
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8 as commercially plausible,
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9 e. proposals demonstrate a high probability of rapid
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10 commercialization,
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11 f. projects demonstrate a shared commitment for funding
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12 from other private or public sources or from the
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13 applicant,
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14 g. proposals center efforts on nonurban locales,
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15 h. principals are individuals, a group of individuals, an
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16 individual on behalf of a group, or corporations which
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17 meet the criteria set forth in Section 951 of Title 18
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18 of the Oklahoma Statutes, to market a product or
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19 formulate or implement a marketing plan for
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20 agricultural products which have not been marketed
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21 through existing marketing cooperatives produced or
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22 processed in this state,
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23 i. proposals contain the potential to create additional
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24 income for the farm unit, and
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 1 j. proposals provide for new and innovative plans for
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2 marketing the product, and
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3 k. proposals for agricultural events benefit the entire
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4 state or a large geographic region of the state; and
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5 2. Consideration shall not be given to applications for:
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6 a. research or marketing plans which do not clearly meet
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7 the stated objectives of the Oklahoma Agriculture
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8 Enhancement and Diversification Act,
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9 b. proposals which are aimed solely at business expansion
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10 or creation without regard to agricultural products
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11 utilization, or
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12 c. research or marketing plans that cannot reasonably be
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13 expected to result in a viable commercial application,
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14 or that are or have been duplicated by other research
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15 efforts, or
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16 d. proposals for agricultural events that do not result
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17 in expansion of the event or encourage additional
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18 public interest in the event.
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19 E. D. 1. Any information submitted to or compiled by the
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20 Department with respect to the marketing plans, financial
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21 statements, trade secrets, research concepts, methods or products,
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22 or any other proprietary information of persons, firms,
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23 associations, partnerships, agencies, corporations, institutions of
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24 higher education, nonprofit research institutions or other entities
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 1 pursuant to the Oklahoma Agriculture Enhancement and Diversification
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2 Program shall not be disclosed pursuant to the Oklahoma Open Records
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3 Act or in public hearings and shall be kept confidential, except to
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4 the extent that the person or entity which provided such information
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5 or which is the subject of such information consents to disclosure.
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6 2. Executive sessions may be held to discuss such materials if
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7 deemed necessary by the Board In the event an independent advisory
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8 group of reviewers are used to analyze and make recommendations for
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9 projects for approval by the Board, any meetings of such advisory
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10 groups shall be exempt from the Oklahoma Open Meeting Act.
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11 SECTION 3. This act shall become effective November 1, 2021.
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13 58-1-425 NP 1/15/2021 3:22:03 PM
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