OKLAHOMA CITY — Gov. Kevin Stitt is expected to sign a bill Monday that contains an economic incentive package designed to lure a large manufacturing plant to the state.
The Senate on Thursday passed House Bill 4455, dubbed the “Large-scale Economic Activity and Development Act of 2022,” by a vote of 41-5 after a lengthy period of questions and debate.
"Special mega legislation" would expand economic incentive programs to attract a specific, unnamed company, he said.
“I applaud my colleagues in the Legislature who voted overwhelmingly to pass the LEAD Act with bipartisan support and ensure Oklahoma is positioned to be globally competitive and secure the biggest economic development project in our state’s history,” Stitt said.
“We negotiated a strong, competitive package with safeguards in place to protect taxpayers and ensure a return on this critical investment to diversify and grow Oklahoma’s economy.”
The state is reportedly trying to lure a Panasonic electric battery plant to the MidAmerica Industrial Park in Pryor.
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The cost of the rebate program is $698 million based on the company’s capital investment and job creation figures, said Senate Appropriations Chairman Roger Thompson, R-Okemah.
The money is coming from savings which will be put in an interest-bearing account, Thompson said. The company would not get the rebates until certain benchmarks are met, such as a $3.6 billion capital expenditure.
Thompson said the Legislature would frontload $698 million into the LEAD fund. In order for a company to receive the 17% rebate payment, which would be disbursed at a rate of 3.4% a year for five years, the company would have to make a minimum capital investment of $3.6 billion and create a minimum of 500 jobs the first year, 1,000 by the second year, 2,500 by the third year, then 4,000 by the fourth year, maintaining them into year five.
The legislation also establishes metrics for a subsidiary company to receive rebates, which include a minimum capital investment of $500 million.
The rebate program would close on July 1, 2032, he said.
Sen. Warren Hamilton, R-McCurtain, questioned why the state would need to spend so much money to bring a company that large to the state.
Sen. Rob Standridge, R-Norman, said the state is spending this much money on one company while small mom-and-pop businesses in his district are struggling.
Sen. Jake Merrick, R-Yukon, said he was concerned about who the company is and what its values are. He wanted to know where the company stood on LGBTQ issues.
Sen. Casey Murdock, R-Felt, said he viewed incentives as fertilizer.
“If you are going to grow a crop, you have to fertilize the field,” Murdock said.
Every state around Oklahoma offers incentives, Murdock said.
Sen. Shane Jett, R-Shawnee, said he didn’t represent businesses or tribes, but taxpayers. He said the state is taking money from struggling mom-and-pop operations and giving it to a corporation, which may not share the state’s ideology or values.
“The game of attracting businesses is incentives,” said Sen. Bill Coleman, R-Ponca City. “Either you are in the game, or you are out.”
“Sometimes you have to move beyond what is in it for me to what is in it for the state of Oklahoma,” Thompson said.
