1. Review tort reform to reduce business costs and protect the fundamental rights of citizens.
HB 2661 places limits on the amount juries can award for non-economic damages, gives more protection against unjustified lawsuits and begins to deal with rising medical malpractice insurance premiums. (2004)
2. The governor should appoint a group of experts to make recommendations to the Legislature on changes to workers’ compensation that will meet the needs of Oklahoma.
SB1X will save Oklahoma businesses an estimated $120 million addressing issues such as attorney fees, soft tissue injuries, medical fees and choice of doctors. Industry leaders have touted this fair and balanced legislation as the most far-reaching workers’ compensation reform in the state’s history and a model for the nation. (2005)
3. The Oklahoma Department of Commerce should formalize and initially fund regional economic development partnerships.
Through the Rural Action Partnership Program Act, HB 2288, the Oklahoma Department of Commerce and its partners are empowered to aggressively develop and implement new and existing programs to spur measurable economic growth and sustainability in rural Oklahoma communities. (2004)
In April and May 2005, the Oklahoma Department of Commerce, along with the State Regents and CareerTech, hosted economic development summits in four locations around the state to encourage regional collaboration in economic development. More than 600 community leaders attended the series of meetings. (2005)
Commerce facilitated the formation of regional partnerships, providing a framework for greater success through shared resources, a greater diversity of talent and experience, economies of scale and creative synergies. Grants were awarded to the state’s four quadrants to encourage the development of regionally based alliances. (2005)
Regional Economic Development Specialists assist rural communities through the coordination of Commerce programs to deliver business retention and expansion programs, entrepreneurial education, value-added production opportunities, strategic planning and community development programs, site location and business recruitment analysis, workforce development programs, and regional economic development partnerships. (2005)
Oklahoma Department of Commerce is providing a demonstration project and regional funding for E-Synchronist, a business retention data collection program to help identify needs of Oklahoma businesses. To date, nearly 400 existing businesses have been interviewed. (2005)
Through its partnership with the Oklahoma Alliance for Manufacturing Excellence, Commerce provides a network of 25 manufacturing extension agents and application engineers that provide expertise in lean manufacturing and production assistance. The partnership has provided increased services to rural areas, allowing participants to be more proactive in making businesses more aggressive and productive. (2004)
The Department of Commerce launched an agency Web site, OKCommerce.gov, which is quickly becoming the essential information tool for rural communities and businesses. The site will soon include a service provider database, searchable by keyword, allowing Oklahoma businesses and communities to locate service providers offering assistance. (2005)
Commerce is planning a second round of regional economic development summits to further educate communities as to the programs and service specifically geared toward Oklahoma’s rural communities. (2005)
The presidents of the public colleges and universities have formed a task force to address regional economic development. (2004)
HB 1680 provided tax credits against the gross production tax and for agricultural activity for Oklahoma-owned companies. (2005)
4. The state should work with the Oklahoma Strategic Military Planning Commission and each of Oklahoma’s five military communities in addressing the 2005 Base Realignment and Closure activity to ensure the continuation and expansion of Oklahoma’s military bases and the economic systems associated with them.
All five of Oklahoma’s military bases were spared from the 2005 BRAC round, and the state will also gain jobs from realigned bases outside Oklahoma. (2005)
HB 2164, the Oklahoma Private Activity Bond Allocation Act, and the Oklahoma Strategic Military Planning Commission added emphasis to housing bonds located on or near a military installation at risk for closure or adverse realignment. (2004)
For fiscal year 2006, the Legislature provided $1 million to the Military Base Closure Fund.
The 2005 Legislature provided $1.85 million for National Guard Life Insurance. Guard members will receive $250,000 in coverage.
5. The Oklahoma Department of Commerce should facilitate the enhancement of key industry clusters identified through the EDGE process.
The Oklahoma Department of Commerce analyzed data from the Oklahoma Employment Security Commission to produce industry cluster reports. The reports outlined workforce-based information to identify industries and broad clusters in which Oklahoma may have a comparative advantage relative to the national economy. (2005)
The industry cluster analysis identified aerospace, energy, weather, logistics, biotechnology, automotive and value-added food production as industries playing a major role in Oklahoma’s economy. The Department of Commerce provides support for industry growth, such as the hiring of an aerospace specialist to develop the state’s network of industry professionals and economic development opportunities. (2005)
Eight local area labor force studies were completed as a joint effort of the Oklahoma Department of Commerce, OU and community economic development organizations across the state. These studies provide a variety of statistics and analysis about Oklahoma’s workforce, including:
6. The governor, working with the Legislature, should take action to streamline Oklahoma’s regulatory practices.
The Oklahoma Department of Commerce’s Small Business Regulatory Review Committee reviews and provides feedback on new rules and regulations imposed by state agencies that impact small business. (2004, 2005)
HB 2661, the Tort Reform legislation, also created business courts within the Oklahoma City and Tulsa district courts due to the complex nature of litigation involving highly technical commercial issues. (2004)
7. The state should develop a focused international trade and investment approach to coordinate
all resources.
The Oklahoma Department of Commerce works to strengthen the state’s economy through exporting and attracting foreign investment. The agency supports businesses with basic exporting information and tools, workshops and seminars, referrals for financial and governmental assistance, market research, and protocol issues. (2005)
The state of Oklahoma maintains international trade offices in the Middle East, Southeast Asia, China, Mexico and Korea and hosts educational exchanges with sister cities and sister states around the world. (2005)
The governor along with the Department of Commerce, OU, OSU, the Business Roundtable and the World Council of Economic Policy, hosted Oklahoma’s International Small Business Enterprise Exchange. This symposium served as the first exchange of information and standardization of policy worldwide to promote small business and help it prosper. The symposium also coordinated marketing, capital and policy information for the benefit of Oklahoma small businesses. Dignitaries from 12 foreign countries and 125 representatives from Oklahoma small businesses attended, in addition to individuals from the sponsoring groups. (2004)
To capitalize on new global opportunities, the Oklahoma Department of Commerce combines traditional trade with service promotion missions to select markets where Oklahoma has a strategic advantage through its long-standing relationships. Since higher education is Oklahoma’s sixth largest export sector, Commerce has joined efforts with the State Regents to coordinate international student recruitment in strategic foreign markets. The state’s global business services are customized to the needs and requirements of each Oklahoma company seeking to establish or expand its international presence. Through its staff in Oklahoma and in four strategic world markets, Commerce provides continuous direct access to business opportunities in the NAFTA corridor, the Middle East, China and Southeast Asia. (2004, 2005)
To help Oklahoma businesses engage in the global conversation, in the fall of 2005, Commerce presented “Designing Your Business for the 21st Century – Staying Competitive in the New Economy.” This dynamic international business conference, challenged participants to map out some of the obstacles and new opportunities facing their businesses in the world marketplace. The program provided specific tools for adjusting business strategy to the realities of global competition.
8. Oklahoma should develop the “best in the world” weather industry.
Commerce, in cooperation with the Norman Economic Development Coalition and OU, is executing a strategy to attract weather-related business to Oklahoma and to stimulate the creation of new companies. During the past two years, more than 125 new jobs have been created in Oklahoma’s weather industry, stemming in part from Weathernews, Inc., the largest publicly-traded private weather company in the world, relocating its North American headquarters to Norman in a new building on OU’s Research Campus. Vieux and Associates, an Oklahoma-based hydrology company, recently moved to the OU Research Campus as well, and OU is about to begin construction of a second multi-tenant building on its Research Campus and enter the planning phase for a third. (2005)
Discussions began in summer 2005 on a number of major initiatives, involving both government and industry, which could lead to dramatic growth of the Oklahoma weather enterprise.
Additional funding will be available for the OU Weather Center through the legislative appropriations to the State Regents. (2005)
9. The state should increase support for the Oklahoma Center for the Advancement of Science and Technology (OCAST) and i2E.
The funding for OCAST was increased by the 2005 Legislature.
10. The Legislature should permit the State Regents to acquire sufficient debt to immediately pay off the backlog of endowed chairs over a period of years and should provide funding for a restructure program focused on attracting “all star” researchers and teachers.
HB 1904 authorized a $50 million bond issue that will help clear up a backlog of private donations for endowed chairs, professorships and lectureships in higher education that have been waiting for state funding. In December 2005, the Oklahoma Supreme Court validated the bond, making the funding available likely in spring 2006.
11. The Legislature should revise specific taxes to encourage the creation of jobs and wealth. The governor and the Legislature should work together in formulating and implementing these tax policies.
SB 435 and HB 1547 will give taxpayers a $94 million rebate this year, as well as a reduction in the income tax rate, lower taxes for retirees and the elimination of the corporate capital gains tax on Oklahoma-held property. (2005)
In November 2004, voters approved the elimination of capital gains taxes on personal property, and during the 2005 session, legislative leaders approved the elimination of the corporate capital gains tax on Oklahoma-held property. This session also brought a permanent reduction in the state income tax rate, lowering it from 6.65 percent to 6.25 percent beginning tax year 2006.
SB 1516 created a nine-member Incentive Review Committee to annually review the costs and benefits of Oklahoma tax incentives. The Committee is addressing incentives in the income tax code its first year. (2004)
State Question 707 amended the Constitution to allow revenue streams from Tax Increment Financing (TIF) districts to be dedicated for more than one year to projects in TIF and related project areas. (2004)
HB 1860 allowed tax credit against the gross production tax by expanding the applicability of two current tax credits, the Oklahoma Rural Small Business Capital Formation Act and the Small Business Capital Formation Act. The bill also expands certain tax credits for agricultural activity. (2005)
The Small Business Capital Formation Incentive Act was reauthorized and provides changes that will
allow for the creation of 200 high-paying biotechnology jobs in central Oklahoma. (2004)
HB 2373 provided incentives to keep the Bridgestone-Firestone tire plant and its 1,800 employees in Oklahoma City and provides for future investments if needed. (2004)
HB 1738 provided exemptions and simplification of the franchise tax code. (2004)
SB 755 was designed to help Oklahoma manufacturers who are “at risk” of closing or leaving the state because of old or obsolete equipment or for other reasons. The measure requires industries to first make investments, and then allows the state to provide incentives up to 10 percent of a company’s investment over five years. This measure will be approved by voters. (2005)
HB 1078 provided increased funding of $170 million to the Oklahoma Department of Transportation for construction, maintenance and repair of state highways and bridges once the funding schedule is fully implemented. (2005)
HB 1547 and SB 435 provided more than $150 million in tax relief beginning in 2007, including reducing the marginal tax rate, increasing the standard deduction on state income taxes, expanding income tax exemptions for retirees and eliminating capital gains taxes on property owned by Oklahoma corporations. (2005)
HB 1738 eliminated the state’s franchise tax for small businesses that owe $10 or less, which includes more than 50 percent of Oklahoma’s businesses. (2005)
The Oklahoma Quality Jobs Program, administered by the Oklahoma Department of Commerce, provides quarterly cash payments of up to 5 percent of newly created payroll to qualifying companies. Generally, the program is applicable to manufacturing, research and development, central administrative offices, and selected service companies. (2005)
A recent amendment to the Oklahoma Quality Jobs Program, HB 1810, opens the program to flight training to support the aerospace industry cluster as identified in the analysis of Oklahoma’s workforce data. (2005)
A new incentive is available to existing Oklahoma quality jobs companies if they add new jobs that pay at least 150 percent of the average wage of the company’s current workforce. Legislation provides an incentive payment of up to 6 percent of the newly created payroll to qualifying companies. (2005)
Several additional tax relief bills targeting specific industries were passed in the 2005 session, including HB 1476 and SB 877, film and music production companies; HB 1605, wind turbines; HB 1556, ethanol production; and HB 1398, biodiesel production.
12. The Oklahoma Today magazine should be expanded into an interactive, online, current information source for statewide events and activities.
As the producer of Oklahoma Today, the Oklahoma Tourism and Recreation Department is developing an interactive Web site that will provide current information on events and activities within Oklahoma. (2005)
13. A recruiting campaign should be initiated to attract college graduates and members of the “creative class” to Oklahoma, especially native sons and daughters who might return.
The Oklahoma Department of Commerce is working on a proposed link between recent college graduates and Oklahoma small businesses. A preliminary study was completed in 2005 and Oklahoma workplace partners are using the study to develop a proposal.
The Greater Oklahoma City Chamber has launched "Project Next: Human Capital & Diversity." It is looking at a variety of ways to attract and keep young, talented professionals in the state. Specifically, it has implemented programs with Oklahoma companies and a Leadership OKC program that focuses on engaging superlative Oklahoma college students (attending in-state or out-of-state) in public service, the non-profit sector and private sector work. (2005)
Tulsa Metro Chamber, Workforce Tulsa, Tulsa Community College and Tulsa Technology Center co-sponsored a study by Next Generation Consulting, Inc. that benchmarks the Tulsa region and four peer cities to measure Tulsa’s attractiveness to young professionals. Tulsa Chamber’s Lifestyles Taskforce plans to use that information to develop key strategies and action step recommendations to promote the Tulsa region to young, creative talent. In response to the findings, both Tulsa and Oklahoma City continue to develop strong young professional organizations. (2005)
SB 1347 declared that a portion of expenditures for capital projects be set aside for the acquisition of works of art to be placed in public construction or on public lands. (2004)
14. The state should consider tax exemptions, partial forgiveness of student loans or other incentives to retain graduating Oklahomans with advanced college degrees.
SB 448 increased the annual state income tax deduction for contributions to the Oklahoma College Savings Plan from $2,500 to $10,000 per taxpayer, or to $20,000 for couples filing jointly. (2005)