Oklahoma 2022 Regular Session

Oklahoma House Bill HB3692 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
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	3	+	ENGR. S. A. TO ENGR. H. B. NO. 3692 Page 1 1
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	28	+	ENGROSSED SENATE AMENDMENT
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	30	+	ENGROSSED HOUSE
3	31		BILL NO. 3692 By: Wallace of the House
4	32
5	33		and
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7	35		Garvin of the Senate
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	40	+	[ property - trusts for public functions - bidding
	41	+	requirements - effective date ]
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13		-	An Act relating to public trusts; amending 60 O.S.
	43	+
	44	+
	45	+
	46	+	AMENDMENT NO. 1. Page 1, strike the stricken title, enacting clause
	47	+	and entire bill and insert
	48	+
	49	+	“An Act relating to public trusts; amending 60 O.S.
14	50		2021, Section 178, which relates to trustees;
15	51		authorizing compensation and expense reimbursement
16	52		for certain trustees; defining term; making language
17	53		gender neutral; updating references; and providing an
18	54		effective date.
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22		-	SUBJECT: Public trusts
23		-
24	58		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
25		-
26	59		SECTION 1. AMENDATORY 60 O.S. 2021, Section 178, is
27	60		amended to read as follows:
28		-
29	61		A. The instrument or will cr eating such trust may provide for
30	62		the appointment, suc cession, powers, duties, term, manner of removal
31	63		and compensation of th e trustee or trustees subject to the
32	64		provisions of subsections C and E of this sect ion, and in all such
33	65		respects the terms of said instrument or will shall be controlling.
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34	92		Trustees, of public trusts who are public officers, elected
35	93		officials shall serve without compensation, but may be reimbursed
36	94		for actual expenses incurred in the perfo rmance of their duties as
37	95		trustees. Trustees of public trusts operating a hospital who are
38	96		not elected officials may receive reasonable compensation and
39	97		reimbursement for actual expenses related to the performance of
40	98		their duties as trustees. For purpose s of this section, reasona ble
41	99		compensation shall not exceed a stipend per meeting equal to the
42	100		regional average for compens ation of members of other governmental
43	101		or nonprofit boards. If the said instrument or will makes no
44	102		provisions in regard to any of t he foregoing, then the gener al laws
45	103		of the state shall control as to such omission or omissions. Every
46		-	person hereafter becoming a trustee of a public trust first shall ~~ENR. H. B. NO. 3692 Page 2~~
	104	+	person hereafter becoming a trustee of a public trust first shall
47	105		take the oath of office required of an elected public officer and
48	106		every officer and em ployee who handles funds of a public trust shall
49	107		furnish a good and sufficient fidelity bond in an amount and with
50	108		surety as may be specified and approved by the persons co nstituting
51	109		a majority of each of the governing bodies of the be neficiaries of
52	110		the trust, such bond to be in a su rety company authorized to
53	111		transact surety business in the State of Oklahoma but in no event
54	112		shall any bond be required of a trustee. The cost of said the bond
55	113		shall be paid from funds of the trust authorit y. The oaths of
56	114		office shall be administered by any person authorized to administer
57	115		oaths in the State of Oklahoma, and shall be filed with the
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58	142		Secretary of State in trusts wherein the State o f Oklahoma is the
59	143		beneficiary; in the office of the county cler k in a trust wherein
60	144		any county is beneficiary; and i n the office of the clerk of the
61	145		municipality in a trust wherein any municipality is the beneficiary.
62		-
63	146		B. Unless otherwise specified in anot her state law authorizing
64	147		the creation of a state -beneficiary public trust, any public trust
65	148		that hereafter names th e State of Oklahoma as the beneficiary shall
66	149		have five (5) trustees appointed by the Governor of the State of
67	150		Oklahoma with the advice and c onsent of the Senate. The terms of
68	151		the trustees shall be as fo llows: of the truste es first appointed,
69	152		one member shall be appointed for a term of one (1) year; one member
70	153		shall be appointed for a term of two (2) years; one member shall be
71	154		appointed for a term of three (3) years; one member shall be
72	155		appointed for a term of four (4) years ; and one member shall be
73	156		appointed for a term of five (5) years. At the expiration of the
74	157		term of each member and of each succeeding member, the Governor
75	158		shall appoint a successor who shall serve for a term of five (5)
76	159		years. Whenever a vacancy on such trust shall occur by death,
77	160		resignation or otherwise, the Governor shall fill the same by
78	161		appointment and the appointee shall hold office during the unexpired
79	162		term. Each member shall hold office until his or her successor has
80	163		been appointed and qualified.
81		-
82	164		C. Any instrument or will creating a trust which is not within
83	165		the scope of subsection B of this section shall provide for the
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84	192		appointment of a minimum of three trustees, their succession,
85	193		powers, duties, term, manner of removal and compensation subject to
86	194		the provisions of subsection E of th is section, and in all such
87	195		respects the terms of said the instrument or will shall be
88	196		controlling. If the instrument or will makes no provision in regard
89	197		to any of the foregoing, then the genera l laws of the state s hall
90	198		control as to the omissions.
91		-	ENR. H. B. NO. 3692 Page 3
92	199		D. Meetings of trustees of all public trusts shall be open to
93	200		the public to the same extent as is required by law for other public
94	201		boards and commissions. Such meetings shall also be open to the
95	202		press and any such equipm ent deemed necessary by the press to record
96	203		or report the activities of the meetings. In such trusts wherein
97	204		the State of Oklahoma is the beneficiary, a written notice of
98	205		trustees' meetings shall be filed with the office of the Secret ary
99	206		of State at least three (3) days prior to the meeting date. Records
100	207		of the trust and minutes of the trust meetings of any public trust
101	208		shall be written and kept in a place, the location of which shall be
102	209		recorded in the office of the county clerk of e ach county, wherein
103	210		the trust instrument shall be recorded. Suc h records and minutes
104	211		shall be available for inspection by any person during regular
105	212		business hours. Every trust created under Sections Section 176 et
106	213		seq. of this title shall file a monthly report of all expendi tures
107	214		of bond proceeds with the governing body of each beneficiary and
108	215		with the Governor, the Speaker of the House of Representatives and
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109	242		the President Pro Tempore of the S enate in the case of a public
110	243		trust having the State of Oklahom a as beneficiary.
111		-
112	244		E. Trustees of any public trust may be removed fr om office for
113	245		cause, including incompetency, neglect of duty, or malfeasance in
114	246		office, by a district court having jurisdicti on. In the case of
115	247		persons appointed by the Governor, such per sons shall be appoint ed
116	248		for terms not in excess of five (5) years, a nd shall be subject to
117	249		removal for cause. In the event of removal of a trustee under this
118	250		subsection, a successor trustee sh all be appointed as provided in
119	251		the trust instrument. Provided , however, in the eve nt a trustee is
120	252		so removed who is also a member of the governing board of a
121	253		municipal beneficiary, the successor trustee shall be appointed by
122	254		the judge of the court wherei n the removal occurred; said the
123	255		successor trustee shall serve only until the remove d trustee ceases
124	256		to serve as a member of the go verning board of the municipal
125	257		beneficiary and his or her successor on said the board has
126	258		qualified.
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128	259		F. The provisions of th is section shall be inapplicable to any
129	260		public trust created an d existing prior to J uly 1, 1988, if the
130	261		instrument or will creating such public trust shall have been held
131	262		to be a valid and binding agreement in an opinion of the Supreme
132	263		Court of the State o f Oklahoma; and nothing in this section shall
133	264		impair or be deemed to impair the trus t indenture or existing or
134	265		future obligations o f such public trust.
135	266
136		-	SECTION 2. This act shall become effective November 1, 2022. ENR. H. B. NO. 3692 Page 4
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138		-	Passed the House of Representatives the 12th day of May, 2022.
	292	+	SECTION 2. This act shall become effective November 1, 2022.”
	293	+
	294	+
	295	+
	296	+	Passed the Senate the 27th day of April, 2022.
	297	+
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	299	+
	300	+	Presiding Officer of the Senate
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	302	+
	303	+	Passed the House of Representatives the ____ day of __________,
	304	+	2022.
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	307	+
	308	+	Presiding Officer of the House
	309	+	of Representatives
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	336	+	ENGROSSED HOUSE
	337	+	BILL NO. 3692 By: Wallace of the House
	338	+
	339	+	and
	340	+
	341	+	Garvin of the Senate
	342	+
	343	+
	344	+
	345	+
	346	+	[ property - trusts for public functions - bidding
	347	+	requirements - effective date ]
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	349	+
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	352	+
	353	+
	354	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	355	+	SECTION 3. AMENDATORY 60 O.S. 2021, Section 176, is
	356	+	amended to read as follows:
	357	+	Section 176. A. Express trusts may be created to issue
	358	+	obligations, enter into fi nancing arrangements includi ng, but not
	359	+	limited to, lease-leaseback, sale-leaseback, interest rate swaps and
	360	+	other similar transactions and to provide funds for the furtherance
	361	+	and accomplishment of any authori zed and proper public function or
	362	+	purpose of the state or of any county or municipality or any and all
	363	+	combinations thereof, in real o r personal property, or either or
	364	+	both, or in any estate or interest in either or both, with the
	365	+	state, or any county or m unicipality or any and all combinations
	366	+	thereof, as the beneficiary thereo f by:
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	393	+	1. The express approva l of the Legislature and the Go vernor if
	394	+	the State of Oklahoma is the beneficiary;
	395	+	2. The express approval of two -thirds (2/3) of the membership
	396	+	of the governing body of the beneficiary if a county is a
	397	+	beneficiary;
	398	+	3. The express approval of two -thirds (2/3) of the membership
	399	+	of the governing body of the beneficiary if a municipality is a
	400	+	beneficiary; or
	401	+	4. The express approval of two -thirds (2/3) of the membership
	402	+	of the governing body of each be neficiary in the event a tru st has
	403	+	more than one benefici ary; provided, that no funds of a beneficiary
	404	+	derived from sources other than the trust property, or the operation
	405	+	thereof, shall be charged with or expe nded for the execution of the
	406	+	trust, except by express action of the legis lative authority of the
	407	+	beneficiary prior to the charging or expending of the funds. The
	408	+	officers or any other governmental agencies or authorities having
	409	+	the custody, management or control of any proper ty, real or personal
	410	+	or mixed, of the beneficiary of the trust, or of a proposed trust,
	411	+	which property shall be needful for the execution of the trust
	412	+	purposes, are authorized and empowered to lease the property for
	413	+	those purposes, after the acceptance of the beneficial interest
	414	+	therein by the beneficiary a s hereinafter provided.
	415	+	B. Any trust created pursuant to th e provisions of this
	416	+	section, in whole or in part, may engage in activities outside of
	417	+
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	443	+	the geographic boundaries of its be neficiary, so long as the
	444	+	activity provides a benefit to a large class of the public within
	445	+	the beneficiary's geographic area or lesse ns the burdens of
	446	+	government of the beneficiary and which does not solely provide a
	447	+	benefit by generating administrative f ees.
	448	+	C. A municipality may convey title to real property which is
	449	+	used for an airport to the trustees of an industrial development
	450	+	authority trust whose beneficiary is the municipality. The
	451	+	industrial development authority trust must already have the
	452	+	custody, management or control of the real p roperty. The conveyance
	453	+	must be approved by a majority of the governing body of the
	454	+	municipality. A conveyance pursuant to this section may be made
	455	+	only for the sole purpose of allowing the authority to sell t he
	456	+	property for fair market value when the pr operty is to be used for
	457	+	industrial development purposes. Con veyances made pursuant to this
	458	+	subsection shall be made subject to any existing reversionary
	459	+	interest or other restrictions burdening the property an d subject to
	460	+	any reversionary interest or oth er restriction considered prudent by
	461	+	the municipality.
	462	+	D. The trustees of a public trust hav ing the State of Oklahoma
	463	+	as beneficiary shall make and adopt bylaws for t he due and orderly
	464	+	administration and regula tion of the affairs of the public trust.
	465	+	All bylaws of a public trust having the State of Oklahoma as
	466	+	beneficiary shall be submitted in w riting to the Governor of the
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	493	+	State of Oklahoma. The Governor must approv e the proposed bylaws
	494	+	before they take effec t.
	495	+	E. No public trust in which the State of Oklahoma is the
	496	+	beneficiary may be amended without a two -thirds (2/3) vote of
	497	+	approval of the trustees of the trust; provided, that any amendment
	498	+	is subject to the app roval of the Governor of the State of Oklaho ma.
	499	+	Any amendments shall be sent to the Gove rnor within fifteen (15)
	500	+	days of their adoption.
	501	+	F. No trust in which a county or municipali ty is the
	502	+	beneficiary shall hereafter create an indebtedness or obligation
	503	+	until the indebtedness or obligation has be en approved by a two-
	504	+	thirds (2/3) vote of the governing body of the beneficiar y. In the
	505	+	event a trust has more than one beneficiary, as a uthorized by this
	506	+	section, the trust shall not incur an indebtedness or ob ligation
	507	+	until the indebtedness or obligatio n has been approved by a two -
	508	+	thirds (2/3) vote of the governing body of two -thirds (2/3) of the
	509	+	beneficiaries of the trust. Provided, how ever, a municipality with
	510	+	a governing body consisting of fewer than seven (7) members shall be
	511	+	required to approve the creation of an indebtedness or obligation
	512	+	under this subsection by a three -fifths (3/5) vote of the govern ing
	513	+	body.
	514	+	G. All bonds describ ed in subsection F of this section, after
	515	+	December 1, 1976, except bonds s old to the federal government or any
	516	+	agency thereof or to any agency of the State of Okla homa, shall be
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	543	+	awarded to the lowest and best bidder based upo n open competitive
	544	+	public offering, advertised at least once a week for two (2)
	545	+	successive weeks in a new spaper of general circulation in the county
	546	+	where the principal office of the trust is lo cated prior to the date
	547	+	on which bids are received and opened; provided, competitive bidding
	548	+	may be waived on bond issues with the approval of three-fourths
	549	+	(3/4) of the trustees, unless the trust has fewer than four
	550	+	trustees, in which case a two -thirds (2/3) approval shall be
	551	+	required, and a three-fourths (3/4) vote of the governing body of
	552	+	the beneficiary, unless the beneficiary is a county in which case a
	553	+	two-thirds (2/3) vote of the members of the governing b ody shall be
	554	+	required, or three-fourths (3/4) vote of the governing bodies of
	555	+	each of the beneficiaries of the trust, unless one of the
	556	+	beneficiaries is a county in which case a two-thirds (2/3) vote of
	557	+	the members of the governing body of such county shal l be required.
	558	+	No bonds shall be sold for le ss than par value, except upon ap proval
	559	+	of three-fourths (3/4) of the trustees, unless the be neficiary is a
	560	+	county in which case a two-thirds (2/3) vote of the members of the
	561	+	governing body shall be required. I n no event shall bonds be sold
	562	+	for less than sixty-five percent (65%) of par v alue; provided,
	563	+	however, in no event shall the original purc haser from the issuer of
	564	+	any bonds issued by any public trust for any purp ose receive
	565	+	directly or indirectly any fees, compensation or other remuneration
	566	+	in excess of four percent (4%) of the pric e paid for the bonds by
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	593	+	the purchaser of the bonds from the original purchaser; and further
	594	+	provided, that the average coupon rate the reon shall in no event
	595	+	exceed fourteen perce nt (14%) per annum. No public trust shall se ll
	596	+	bonds for less than ninety -six percent (96%) of par value u ntil the
	597	+	public trust has recei ved from the underwriter or financial advisor
	598	+	or, in the absence of an und erwriter or financial advisor, the
	599	+	initial purchaser of the bonds, an estimated alternati ve financing
	600	+	structure or structu res showing the estimated tot al interest and
	601	+	principal cost of each alternative. At least one alternative
	602	+	financing structure shall i nclude bonds sold to the public at par.
	603	+	Any estimates shall be considered a public recor d of the public
	604	+	trust. Bonds, notes or other evidences of ind ebtedness issued by
	605	+	any public trust shall be eligible for purchase by any state banking
	606	+	association or corporation subject to such limitations as to
	607	+	investment quality as may be imposed by regu lations, rules or
	608	+	rulings of the State Banking Commissioner.
	609	+	H. Public trusts created pursua nt to this section shall file
	610	+	annually, with their respective beneficiarie s, copies of financial
	611	+	documents and reports sufficient to demonstrate the fiscal activit y
	612	+	of such trust, including, but n ot limited to, budgets, finan cial
	613	+	reports, bond indentures a nd audits. Amendments to the adopted
	614	+	budget shall be approved by the trus tees of the public trust and
	615	+	recorded as such in the official minutes of such trust.
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	642	+	I. Contracts for construction, labor , equipment, material or
	643	+	repairs in excess of Fifty Thousand Dollars ($50,000.00) shall be
	644	+	awarded by public trusts to the lowest and best competitive bidder,
	645	+	pursuant to public invitation to bid, which shall be published in
	646	+	the manner provided in subsecti on G of this section; t he
	647	+	advertisements shall appear in the county where the work, or the
	648	+	major part of it, is to be done, or the equipment or ma terials are
	649	+	to be delivered, or the services are to be rendered; provided,
	650	+	however, should The following bidding requirements shall a pply to
	651	+	public trusts:
	652	+	1. Construction contracts entered into by a public trust, when
	653	+	required, shall be administered, advertised, and awarded pursuant to
	654	+	the Public Competitive Bidding Act of 1974;
	655	+	2. Operational contracts entered into by public trusts for
	656	+	labor or equipment in excess of Two Hundred Fifty Thousand Dollars
	657	+	($250,000.00) shall be awarded by public trusts to the lowest
	658	+	responsible bidder, pursuant to a bid, which shall be published in
	659	+	the manner consistent with the bi d solicitation requirem ents imposed
	660	+	on state agencies under the Oklahoma Central Purchasing Act;
	661	+	3. Any construction contract issued under this section by a
	662	+	public trust may provide for a local bid preference of not more than
	663	+	five percent (5%) of the bid price if the public trust governing
	664	+	body determines that there is an economic benefit to the local area
	665	+	or economy. Provided, however, the local bidder or contractor m ust
	666	+
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	692	+	agree to perform the contract for the same price and te rms as the
	693	+	bid proposed by the nonlocal bidder or contractor. Any bid
	694	+	preference granted hereunder must be in accordance with an
	695	+	established policy adopted by the governing body of the trust to
	696	+	clearly demonstrate the economic benefit to the local area or
	697	+	economy. No local bid preference shall be granted unless the local
	698	+	bidding entity is the second lowest qualified bid on the contract.
	699	+	The bid specifications shall clearly state that the bid is s ubject
	700	+	to a local bidder preference law. For purposes of t his section,
	701	+	"local bid" means the bidding person is authorized to transac t
	702	+	business in this state and maintains a bona fide establishment for
	703	+	transacting such business within this state. This pro vision does
	704	+	not apply to any construction contract for whic h federal funds are
	705	+	available for expenditure when its provisions may be i n conflict
	706	+	with federal law or regulation;
	707	+	4. Should the trustee or the trust ees find that an immediate
	708	+	emergency exists, which findings shall be entered in the journal of
	709	+	the trust proceedings, by reason of which an immediate outla y of
	710	+	trust funds in an amount exceeding Seventy-five Thousand Dollars
	711	+	($75,000.00) the emergency threshold provided in the Public
	712	+	Competitive Bidding Act of 1974 for construction contracts, or Two
	713	+	Hundred Fifty Thousand Dollars ($250 ,000.00) for other contracts
	714	+	subject to this section is necessary in order to avoid loss of life,
	715	+	substantial damage to property or damage to the public peace or
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	742	+	safety, then the contracts may be made and entered into without
	743	+	public notice or competitive bids; provided that the provisions of
	744	+	this subsection shall not apply to contracts of industrial and
	745	+	cultural trusts. Findings of an emergency shall be entered in the
	746	+	journal or minutes of the trust proceedings;
	747	+	5. Notwithstanding the provisions o f this subsection, equipment
	748	+	or materials or labor may be purchased by a public trust directly
	749	+	from any contract duly awarded by this state or any state agency
	750	+	under the Oklahoma Central Purchasing Act, or from any contract duly
	751	+	awarded or approved by a governmental entity which is the
	752	+	beneficiary of the public trust .
	753	+	Furthermore, any construction contract issued under this section
	754	+	may provide for a local bid preference of not mo re than five percent
	755	+	(5%) of the bid price if the public trust governing body deter mines
	756	+	that there is an economic benefit to the local area or economy.
	757	+	Provided, however, the local bidder or contractor must agree to
	758	+	perform the contract for the same pric e and terms as the bid
	759	+	proposed by the nonlocal bidder or contractor. Any bid pref erence
	760	+	granted hereunder must be in accordance with an est ablished policy
	761	+	adopted by the governing body of the trust to clearly demonstrate
	762	+	the economic benefit to the local area or economy. Provided,
	763	+	further, no local bid preference shall be granted unle ss the local
	764	+	bidding entity is the second lowest qualified bid on the contract.
	765	+	The bid specifications shall clearly state that the bid is subject
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	792	+	to a local bidder prefere nce law. For purposes of this section,
	793	+	"local bid" means the bidding person is aut horized to transact
	794	+	business in this state and maintains a bona fide establishment for
	795	+	transacting such business within this state. This provision does
	796	+	not apply to any con struction contract for which federal funds are
	797	+	available for expenditure when its p rovisions may be in conflict
	798	+	with federal law or regulatio n.;
	799	+	6. A public trust may enter into sole source contracts for the
	800	+	purchase of equipment, labor , or both. For each sole source
	801	+	acquisition, the public trust shall retain a cer tification signed by
	802	+	the trustee or trustees lis ting the supplier's name, address, and
	803	+	contact information; affirming that the supplier is the only
	804	+	business entity qualified to provide the requi red equipment or
	805	+	labor, or is the only supplier abl e to provide the brand satisfying
	806	+	the contract requirements , and specifying the reasons fo r its unique
	807	+	qualifications; and giving a brief description of all efforts made
	808	+	to verify that there is only one so urce for the required equipment
	809	+	or labor; and
	810	+	7. A public trust may enter into a cooperative purchasing
	811	+	agreement for the purchase of equipm ent or labor if economically
	812	+	justified by way of savings, material economic value , or both. The
	813	+	public trust shall consider the economic justification for using a
	814	+	cooperative purchasing agreement before entering into the
	815	+	cooperative purchasing agreement. Economic justification may be
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	842	+	demonstrated by a comparison of current cooperative pricing to
	843	+	information obtained from a request for information publicized by a
	844	+	public trust.
	845	+	J. As used in this section:
	846	+	1. "Equipment" means an item or product and includ es all
	847	+	personal property used or consumed by a public trust that typically
	848	+	will last and be used multiple times ove r a period of more than
	849	+	twelve (12) months;
	850	+	2. "Labor" means activity which is primarily accomplished
	851	+	through the use of physical or mechani cal movement to produce a
	852	+	given result; and
	853	+	3. "Sole source" means an acquisition which, by specification,
	854	+	restricts the acquisition to one supplier .
	855	+	K. Any public trust created pursuant to the provisions of this
	856	+	section shall have the power to acquire l ands by use of eminent
	857	+	domain in the same manner and according to the procedures provided
	858	+	for in Sections 51 throug h 65 of Title 66 of the Oklahoma Statutes.
	859	+	Any exercise of the power of eminent domain by a public trust
	860	+	pursuant to the provisions of this section shall be limited to the
	861	+	furtherance of public purpose projects involving revenue -producing
	862	+	utility projects of which the public trust retains ownershi p;
	863	+	provided, for public trusts in which the State of Oklahoma is th e
	864	+	beneficiary the exercise of t he power of eminent domain may also be
	865	+	used for public purpose projects involving air transportation.
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	892	+	Revenue-producing utility projects shall be limited to projects for
	893	+	the transportation, delivery, treatment or furnishing of water for
	894	+	domestic purposes or for power, including, but not limited to, the
	895	+	construction of lakes, pipelines and water treatment plants or for
	896	+	projects for rail transportation. Any pub lic trust formed pursuant
	897	+	to this section which has a county as its beneficiary shall have the
	898	+	power to acquire, by use of eminent domain, any lands located either
	899	+	inside the county, or contiguous to the county pu rsuant to the
	900	+	limitations imposed pursuant to this section.
	901	+	K. L. Provisions of this section shall not apply to entities
	902	+	created under Sections 1324.1 through 1324.26 of Title 82 of the
	903	+	Oklahoma Statutes.
	904	+	L. M. Any trust created under Section 176 et seq. of this
	905	+	title, in whole or in part, to ope rate, administer or oversee any
	906	+	county jail facility shall consist of not less than five members a nd
	907	+	include a county commissioner and the county sheriff, or their
	908	+	designee, and one member appointed by each of the county
	909	+	commissioners. The appointed membe rs shall not be elected
	910	+	officials.
	911	+	SECTION 4. AMENDATORY 60 O.S. 2021, Section 178, is
	912	+	amended to read as follows:
	913	+	Section 178. A. The instrument or will creating such trust may
	914	+	provide for the appointment, succession, powers, duties, term,
	915	+	manner of removal and compensation of the trustee or t rustees
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	942	+	subject to the provisions of subsections C and E of this section,
	943	+	and in all such respects the terms of said the instrument or will
	944	+	shall be controlling. Trustees, who are public officers, Elected
	945	+	officials, who also serve as trustees, shall serve without
	946	+	compensation, but may be reimbursed for actual expenses incurred in
	947	+	the performance of their duties as trustees. Trustees who are not
	948	+	elected officials may receive reasonable compen sation and may be
	949	+	reimbursed for actual expenses related to the p erformance of their
	950	+	duties as trustees. For purposes of this section, reasonable
	951	+	compensation shall not exceed a stipend per meeting equal to the
	952	+	regional average for compensation of members of othe r governmental
	953	+	or nonprofit boards and shall be approved by the beneficiary of the
	954	+	public trust. If the said instrument or will makes no provisions in
	955	+	regard to any of the foregoing, then the gener al laws of the state
	956	+	shall control as to such omission or omissions. Every person
	957	+	hereafter becoming a trustee of a public trust first shall take the
	958	+	oath of office required of an elected public officer and every
	959	+	officer and employee who handles funds of a public trust shall
	960	+	furnish a good and sufficient fidelity bond in an amount and w ith
	961	+	surety as may be specified a nd approved by the persons constituting
	962	+	a majority of each of the governing bodies of the beneficia ries of
	963	+	the trust, such bond to be in a su rety company authorized to
	964	+	transact surety business in the State of Oklahoma but in no event
	965	+	shall any bond be requ ired of a trustee. The cost of said the bond
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	992	+	shall be paid from funds of the trust authority. The oaths of
	993	+	office shall be administered by any person authorized to administer
	994	+	oaths in the State of Oklahoma, and shall be fi led with the
	995	+	Secretary of State in trusts wherein the State of Oklahoma is the
	996	+	beneficiary; in the office of the county clerk in a trust wherein
	997	+	any county is beneficiary; and i n the office of the clerk of the
	998	+	municipality in a trust wherein any municipali ty is the beneficiary.
	999	+	B. Unless otherwise specified in another state law authorizing
	1000	+	the creation of a state-beneficiary public t rust, any public trust
	1001	+	that hereafter names th e State of Oklahoma as the beneficiary shall
	1002	+	have five (5) trustees appointed b y the Governor of the State of
	1003	+	Oklahoma with the advice and consent of the Senate. The terms of
	1004	+	the trustees shall be as follows: of the trustees first appointed,
	1005	+	one member shall be appointed for a term of one (1) year; one member
	1006	+	shall be appointed for a term of two (2) years; one me mber shall be
	1007	+	appointed for a term of three (3) years; one member shall be
	1008	+	appointed for a term of four (4) years; and one member shall be
	1009	+	appointed for a term of five (5) years. At the expiration of the
	1010	+	term of each member and of each succeeding member, the Governor
	1011	+	shall appoint a successor who shall serve for a term of five (5)
	1012	+	years. Whenever a va cancy on such trust shall occur by death,
	1013	+	resignation or otherwise, the Governor shall fill the same by
	1014	+	appointment and the a ppointee shall hold office durin g the unexpired
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	1041	+	term. Each member shall hold office until his or her successor has
	1042	+	been appointed and qualified.
	1043	+	C. Any instrument or will creating a trust which is not within
	1044	+	the scope of subsection B of this section shal l provide for the
	1045	+	appointment of a minimum of three trustees, their succession,
	1046	+	powers, duties, term, manner of removal and compens ation subject to
	1047	+	the provisions of subsection E of this section, and in all such
	1048	+	respects the terms of said the instrument or will shall be
	1049	+	controlling. If the instrument or will makes no provision in regard
	1050	+	to any of the foregoing, then the general laws of the state shall
	1051	+	control as to the omissions.
	1052	+	D. Meetings of trustees of all public trusts shall be open to
	1053	+	the public to the same extent as is required b y law for other public
	1054	+	boards and commissions. Such meetings shall also be open to the
	1055	+	press and any such equipment deemed necessary by the press to record
	1056	+	or report the activities of the meetings. In such trusts wherein
	1057	+	the State of Oklahoma is the bene ficiary, a written notice of
	1058	+	trustees' meetings shall be filed with the office of the Secretary
	1059	+	of State at least three (3) days prior to the meeting date. Records
	1060	+	of the trust and minutes of the trust meetings of any publi c trust
	1061	+	shall be written and kep t in a place, the location of which shall be
	1062	+	recorded in the office of the county clerk of each cou nty, wherein
	1063	+	the trust instrument shall be recorde d. Such records and minutes
	1064	+	shall be available for inspection by any perso n during regular
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	1091	+	business hours. Every trust created under Sections Section 176 et
	1092	+	seq. of this title shall file a monthly report of all expenditures
	1093	+	of bond proceeds with the gove rning body of each beneficiary and
	1094	+	with the Governor, the Speaker of the Ho use of Representatives and
	1095	+	the President Pro Tempore of the Senate in the case of a public
	1096	+	trust having the State of Oklahoma as be neficiary.
	1097	+	E. Trustees of any public trust may be removed from office for
	1098	+	cause, including incompetency, neglect of duty, or malfeasance in
	1099	+	office, by a district court having jurisdiction. In the case of
	1100	+	persons appointed by the Governor, such persons sh all be appointed
	1101	+	for terms not in excess of five ( 5) years, and shall be subject to
	1102	+	removal for cause. In the event of remov al of a trustee under this
	1103	+	subsection, a successor trustee shall be appointed as provided in
	1104	+	the trust instrument. Provided, howev er, in the event a trustee is
	1105	+	so removed who is al so a member of the governing board of a
	1106	+	municipal beneficiary, the successo r trustee shall be appointed by
	1107	+	the judge of the court wherein the removal occurred; said the
	1108	+	successor trustee shall serve only un til the removed trustee ceases
	1109	+	to serve as a member of the governing board of the municipal
	1110	+	beneficiary and his or her successor on said the board has
	1111	+	qualified.
	1112	+	F. The provisions of this section shall be inapplicable to any
	1113	+	public trust created and exist ing prior to July 1, 1988, if the
	1114	+	instrument or will creating such public trust shall have been held
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	1141	+	to be a valid and bindin g agreement in an opinion of the Supreme
	1142	+	Court of the State of Oklahoma; and nothing in this section shall
	1143	+	impair or be deemed to i mpair the trust indenture or existing or
	1144	+	future obligations of such public trust .
	1145	+	SECTION 5. This act shall become effective November 1, 2022.
	1146	+	Passed the House of Represen tatives the 15th day of March, 2022.
139	1147
140	1148
141	1149
142	1150
143	1151		Presiding Officer of the House
144	1152		of Representatives
145	1153
146	1154
147		-	Passed the Senate the ~~27th~~ day of ~~April~~, 2022.
	1155	+	Passed the Senate the ___ day of __________, 2022.
148	1156
149	1157
150	1158
151	1159
152	1160		Presiding Officer of the Senate
153	1161
154	1162
155	1163
156		-	OFFICE OF THE GOVERNOR
157		-	Received by the Office of the Governor this ____________________
158		-	day of ___________________, 20_______, at _______ o'clock _______ M.
159		-	By: _________________________________
160		-	Approved by the Governor of the State of Oklahoma this _____ ____
161		-	day of ___________________, 20_______, at _______ o'clock _______ M.
162		-
163		-
164		-	_________________________________
165		-	Governor of the State of Oklahoma
166		-
167		-	OFFICE OF THE SECRETARY OF STATE
168		-	Received by the Office of the Secretary of State this __________
169		-	day of ___________________, 20_______, at _______ o'clock _______ M.
170		-	By: _________________________________