Firms luring employees to Oklahoma with incentive programs could be reimbursed

Senate Bill 1335, also referred to as the OK to Relocate Act, authored by Sen. Jessica Garvin, R-Duncan, proposes creation of a revolving fund to be managed by the Oklahoma Department of Commerce. It also proposes a $16 million initial appropriation from the state’s General Revenue Fund.

Garvin said the Commerce Department would be directed to establish a “talent attraction” program focused not only on helping existing state businesses but also on encouraging out-of-state businesses to relocate to the Sooner State.

“If I’m a new business coming into Oklahoma or establishing a new business in Oklahoma or even growing an existing business in Oklahoma and I’m needing more engineers, for example, this bill would allow for me … to be able to attract outside engineers from all over the country and be able to bring them to Oklahoma,” Garvin said in a Tulsa World interview.

Companies that provide at least $10,000 to prospective employees to bring them to the state could be reimbursed for their costs up to 100 employees per year.

Employees would have to sign documents stating their intention to live and work in Oklahoma for at least three years.

Garvin said a 2022 study commissioned by the Oklahoma Department of Commerce to identify needs of businesses concluded that strengthening workforce development and recruitment should be a primary goal of the state. Workforce needs were identified by numerous industries, including aerospace, agribusiness, automotive, bioscience, defense, film and music, information and financial services, manufacturing, renewable energy, traditional energy, and transportation and logistics.

In considering where potentially to set up shop, company managers identified access to technically trained and management professionals as “must haves” along with competitive operating and labor costs. They also wanted shovel-ready sites or available buildings. Other strong considerations included cost of living, quality of education, proximity of suppliers, and competitive state and local incentives.

The study found that Oklahoma’s aging population and low workforce participation rate will likely leave the state short by at least 20,000 needed workers by 2028.

“The growth of Oklahoma’s target sectors could result in additional employment opportunities for state residents and new wealth creation, but efforts are hampered by talent and skill shortages,” the report by the company DCI concluded.

Garvin said she’s hopeful that her legislation and other bills being considered this year will pass to help strengthen the state’s workforce and prospects for attracting new business.

“That’s also pulling workforce into our state and pulling taxpayers into our state,” she said, “So I think it really provides us with a big opportunity, especially for some of these small mom-and-pop existing companies to really to be able to diversify what they’re doing.”

Under SB 1335, the Commerce Department would consider the needs of business applicants and determine priorities and set funding limits for talent attraction. Money from the fund might also be used to advertise and market the state to out-of-state businesses.

Garvin’s bill passed through the Senate’s Business and Commerce Committee on an 8-5 vote. Its title was stricken, meaning it remains subject to amendment. It was referred for further consideration by the chamber’s Appropriations Committee.

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