Oklahoma § 68-4203 - Definitions

§ 68-4203. Definitions

For purposes of the Oklahoma Quality Investment Act:

1. “At-risk establishments” are those manufacturing

establishments, presently existing in Oklahoma which the Quality

Investment Committee, as described in paragraph 6 of this section,

finds would be lost within the state based on changes in global

economies, establishment structure, consolidation of establishments,

and which are structurally noncompetitive but which could regain a

competitive position with new investment if incentives are offered;

2. “Capital costs” means costs for land, building, improvements

to buildings, fixtures and for machinery and equipment as those

terms are described in Section 2902 of Title 68 of the Oklahoma

Statutes;

3. “Economic impact” means economic impact as described in

analyses that identify the value in terms of sales tax and income

tax revenues to the state and to the local community of the

establishment that the retention and expansion or modernization of

the manufacturing site provides. The Oklahoma Department of

Commerce may contract for the performance of an economic impact

analysis to aid it in determining whether to recommend entering into

a Quality Investment Contract with a particular establishment;

4. “Historical contributions trends” means historical

contributions of an establishment as described in analyses of direct

and indirect historical contributions to the state and local

economies that an establishment has had on jobs and tax base growth,

and on payroll and tax revenue inputs and growth. Analyses shall

include consideration of positive trends attributable to suppliers

of the establishment. The Oklahoma Department of Commerce may

contract for the performance of an historical contributions analysis

to aid the Quality Investment Committee in determining whether to

recommend entering into a Quality Investment Contract with a

particular establishment;

5. “Local community” means the town or city and the county of

the location of the establishment; provided, a city or town and a

county may jointly constitute the “local community”;

Oklahoma Statutes - Title 68. Revenue and Taxation

6. “Quality Investment Committee” means the independent

committee referenced in paragraph 6 of Section 23 of Article X of

the Oklahoma Constitution that consists of the following members:

a.

the Director of the Oklahoma Department of Commerce,

b.

the Dean of Engineering of Oklahoma State University,

c.

the Director of the Oklahoma Alliance for

Manufacturing Excellence,

d.

the Dean of the Price Business College of the

University of Oklahoma,

e.

the Executive Director for the Oklahoma Center for the

Advancement of Science and Technology,

f.

one small business representative from the Oklahoma

Science and Technology Research and Development Board,

and

g.

the State Director of Career Technology Education;

7. “Tax revenues projections” means a projection of anticipated

tax revenues based upon an analysis of historic taxes collected from

the establishment in the local community and in the state overall

over the previous ten (10) years in order to determine:

a.

the average of the growth percentages to determine the

projected growth in such revenues to the community and

the state over the following ten (10) years if no

retooling occurs but retention is assumed to be a

constant and remains stagnant,

b.

the modernization or retooling project’s estimated

impact on tax revenues and growth rates over the

following ten (10) years, and

c.

the projections of loss in tax revenues should the

plant location close and operations, in whole or in

part, are removed from the state.

The Oklahoma Department of Commerce may contract with the

Oklahoma Tax Commission for performance of tax revenues projections

analyses to aid it in determining whether to enter into an agreement

upon recommendation of the Quality Investment Committee;

8. “Establishment” means a manufacturer that is a partnership,

limited partnership, corporation, limited liability company, limited

liability partnership, or sole proprietorship. The establishment

may enter into a Quality Investment Contract pertaining to only one

manufacturing site as that term is defined in Section 1352 of Title

68 of the Oklahoma Statutes. No combination of other locations of

the establishment, or any related entities of the establishment is

contemplated. An establishment may have multiple contracts due to

multiple sites or multiple expansions due to retooling and

modernization at one site;

9. “NAICS” Manual means any manual book or other publication

containing the North American Industry Classification System, United

States, 1997, or as updated or amended from time to time,

Oklahoma Statutes - Title 68. Revenue and Taxation

promulgated by the Office of Management and Budget of the United

States of America; and

10. “Start date” means the date on which an establishment may

begin accruing benefits for investment of new capital costs in a

manufacturing site that is assigned in the agreement with the

Oklahoma Department of Commerce.

Added by Laws 2006, c. 1, § 3, eff. July 1, 2007, following passage

of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,

2006.