Senate Approves Bill to Keep Jobs in Oklahoma

Senator Jay Paul Gumm has won support for a measure aimed at keeping jobs in Oklahoma. Senate Bill 1247 targets businesses that accept state incentive dollars then leave within 7 to 10 years of accepting the money.

“Economic development experts across the country have proclaimed Oklahoma’s business incentives to be among the best in the nation. We’re saying if you are a business that accepts those incentives and then decides to leave our state in just a few years, you’re going to have to pay back that money,” said Gumm, a Democrat from Durant.

The version approved by the full Senate would require a company relocating outside the state less than seven years after receiving any incentive payment would have to pay by 100 percent of that amount. Those relocating eight years after receiving state payments will have to pay back 80 percent After 9 years they would be required to pay back 60 percent. Those moving outside the state but were here longer than 10 years would not be required to repay any incentives.

“Those incentives dollars are Oklahoma’s good faith effort to bring jobs to our citizens. It comes out of the pockets of hard-working men and women who believe it is worth the investment. We need to make sure that the companies taking that money live up to their end of the bargain by keeping those jobs in Oklahoma,” said Gumm.

While Gumm said many companies who have accepted incentives have remained in state and worked to add jobs, some have taken the money only to announce they were leaving a few years later. One example would be the Kwikset plant in Bristow.

“In fact, officials from the Oklahoma Tax Commission told us when the bill was in committee that some companies that moved out of Oklahoma received agreed-to job creation incentives even after they left. It is bad public policy to reward companies that take our incentives, stick that money in their pockets and then move on,” said Gumm. “This bill will help will protect Oklahomans from companies like that.”

SB 1247 was approved 43 to 1. The measure now moves to the House for further consideration.