Okla. Admin. Code § 150:65-1-12

Current through Vol. 42, No. 7, December 16, 2024

Section 150:65-1-12 - Subunit

(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.

Okla. Admin. Code § 150:65-1-12

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