State government; prohibiting state contracts with certain companies; allowing for waiver of certain applicability. Effective date. Emergency.
Summary
SB2076 would create a new state law restricting Oklahoma from entering into or renewing state contracts, and from granting certain state tax incentives, to companies that use the H-1B visa program or optional practical training for positions performed within Oklahoma. The bill defines key terms such as “company,” “state contract,” “state tax incentive,” “Oklahoma operations,” and “utilize,” and it limits its application to work performed inside the state. It also states that it is not intended to regulate immigration status or visa eligibility, but instead to govern eligibility for state procurement and economic development benefits.
The bill includes exceptions and procedural safeguards. Its prohibitions would not apply to operations or employees outside Oklahoma, would not impair vested contractual rights that existed before the effective date, and could be waived for a specific company or project only through a concurrent resolution approved by both chambers of the Legislature identifying the public purpose for the exception. Companies seeking covered contracts or incentives would have to certify compliance under penalty of perjury, and state agencies would not receive rulemaking authority to implement the act. The bill is set to take effect July 1, 2026, but also contains an emergency clause for immediate effectiveness upon passage and approval.
Impact
If enacted, SB2076 would add a new restriction to Title 74 of the Oklahoma Statutes governing state procurement and tax incentive eligibility. It would bar state agencies from contracting with, and state programs from awarding certain tax benefits to, companies that use H-1B workers or optional practical training for Oklahoma-based positions, unless the Legislature grants a specific waiver. The measure would affect companies doing business with the state, especially employers that rely on foreign student work authorization or specialty-occupation visas for in-state operations, and it would require compliance certification as a condition of eligibility.
Sentiment
Based on the bill text and available context, the measure appears to be framed by its author as a sovereignty and worker-protection bill aimed at ensuring public funds do not subsidize labor practices that disadvantage Oklahoma workers. The legislative findings emphasize limiting state support for companies using visa-based labor programs in Oklahoma. No committee transcript or recorded vote information is available in the provided materials, so there is no documented floor or committee sentiment beyond the bill’s stated policy rationale.
Contention
The main point of contention is likely the bill’s treatment of employers that use H-1B visas or optional practical training, since it would make those companies ineligible for state contracts and incentives for Oklahoma operations. Supporters would likely view the bill as protecting Oklahoma workers and limiting the use of public funds to subsidize certain labor arrangements, while opponents could argue it interferes with business recruitment, workforce flexibility, and access to state economic development tools. The bill also raises potential legal and policy concerns because it targets companies based on use of federally authorized work programs, even though it expressly disclaims regulating immigration status. The waiver mechanism by concurrent resolution suggests the Legislature anticipated that some projects may still warrant exceptions.