Current through Vol. 42, No. 1, September 16, 2024
(a) In order to determine the presence or to
project the likelihood in a timely manner, of all the conditions that the
Oklahoma Department of Commerce must require a subunit to meet in order to be
determined to be an establishment under the terms of the Quality Jobs Program
Act as set forth in 68 O.S. Supp. 1994, Section 3603(8)(a), the Department may
consider the following:
(1) All information
and conditions to determine if an entity is qualified to be an establishment
pursuant to 68 O.S. Supp. 1994, Sections 3601 et seq. and
150:65-1-3
through
150:65-1-9
of this chapter;
(2) Unique or new
product line within the state;
(3)
New business ventures;
(4)
Technologies involved and state of the art;
(5) Distribution channels;
(6) Licenses held;
(7) Financing and tax structure;
(8) Local control of operations
decisions;
(9) Autonomous
administrative control over capital, expenditures and hiring;
(10) Other data of management practices or of
a background or financial nature requested by the Department.
(b)
The Department shall
establish criteria for determining the period of time within
which[job] gain must be demonstrated.
[68:3603(8)(b)].
(1) The Department shall
assign the date of determination on which an individual subunit and the entity
of which it is a part must demonstrate net gain in total employment.
(2) In order for the subunit to continue to
receive incentive payments beyond the date of determination, net gain in total
employment must be realized at the date of determination. If no net gain
exists, the subunit is disqualified as an establishment and incentive payments
cease and shall not be resumed.
(3)
If net gain exists at the date of determination, incentive payments shall be
paid upon claim presentment as long as conditions for payments are met. In no
event shall incentive payments, cumulatively, exceed the estimated net direct
state benefits.
(4) The Department
shall set out the date of determination on the approval transmitted to the
Oklahoma Tax Commission.
(5)
Additionally, the Department shall identify the entity of which the subunit is
a part by name and nature of establishment, whatever legal form and include any
necessary description of the structure of the entity of which the subunit is a
part.
(6) In determining the date
of determination to be assigned to an individual subunit, the Department may
require a plan to be submitted by the subunit and by the remainder of the
entity of which the subunit is a part which includes information consisting of:
(A) employment forecasts for the ten years it
is anticipated the subunit will receive incentive payments, for both the
subunit and the remainder of the entity of which it is a part;
(B) baseline of subunit;
(C) employment of the remainder of the entity
of which the subunit is a part;
(D)
business decisions of the entity of which the subunit is a part such as merger,
downsizing, relocation of working units, etc., and explanations or analyses of
trends or strategies of the entity reflected by the decisions;
(E) effect on Oklahoma operations of such
trends and strategies and discussion of less than positive net gain in
employment, if applicable;
(F)
recommendation of a date of determination;
(G) and, such other similar information as
the Department determines is necessary to set a date of
determination.
(7)
Provided, the date of determination shall not extend beyond five years from the
date of approval or date of project start-up, whichever is later;
(8) The plan submitted and all information
considered by the Department in determining whether a subunit is an
establishment shall be the criteria to set the date of determination.
(c)
The Department of
Commerce shall promulgate rules to determine whether a subunit of an entity
[and the remainder of the entity of which it is a part]
achieve a net gain in total employment...and a method for determining net gain
in total employment. [68:3303(8)(b)].The method to determine whether
or not a subunit, and the remainder of the entity of which the subunit is a
part, achieve net gain in total employment follows:
(1) Add the baseline of the subunit and the
employment of the remainder of the entity of which the subunit is a
part.
(2) Add the employment
numbers as reflected by the quarterly or monthly report to the Oklahoma Tax
Commission for the period immediately preceding the date of determination of
the subunit and the remainder of the entity of which it is a part.
(3) The sum of the latter, (paragraph (2) of
this subsection) must exceed the sum of the former, (paragraph) (1) of this
subsection, by at least one, for a net gain in total employment to
exist.
(d) Signatories
for the incentive offer shall be officers of the entity of which the subunit is
a part and the local chief operating officer or employee of the
subunit.
Added at 12 Ok Reg 19,
eff 9-29-94 (emergency); Added at 12 Ok Reg 1339, eff 5-25-95; Amended at 21 Ok
Reg 543, eff 8-7-03 (emergency); Amended at 21 Ok Reg 2965, eff 7-25-04;
Amended at 22 Ok Reg 1049, eff 5-26-05
