An Act
ENROLLED HOUSE
BILL NO. 3692 By: Wallace of the House
and
Garvin of the Senate
An Act relating to public trusts; amending 60 O.S.
2021, Section 178, which relates to trustees;
authorizing compensation and expense reimbursement
for certain trustees; defining term; making language
gender neutral; updating references; and providing an
effective date.
SUBJECT: Public trusts
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 60 O.S. 2021, Section 178, is
amended to read as follows:
A. The instrument or will cr eating such trust may provide for
the appointment, suc cession, powers, duties, term, manner of removal
and compensation of th e trustee or trustees subject to the
provisions of subsections C and E of this sect ion, and in all such
respects the terms of said instrument or will shall be controlling.
Trustees, of public trusts who are public officers, elected
officials shall serve without compensation, but may be reimbursed
for actual expenses incurred in the perfo rmance of their duties as
trustees. Trustees of public trusts operating a hospital who are
not elected officials may receive reasonable compensation and
reimbursement for actual expenses related to the performance of
their duties as trustees. For purpose s of this section, reasona ble
compensation shall not exceed a stipend per meeting equal to the
regional average for compens ation of members of other governmental
or nonprofit boards. If the said instrument or will makes no
provisions in regard to any of t he foregoing, then the gener al laws
of the state shall control as to such omission or omissions. Every
person hereafter becoming a trustee of a public trust first shall ENR. H. B. NO. 3692 Page 2
take the oath of office required of an elected public officer and
every officer and em ployee who handles funds of a public trust shall
furnish a good and sufficient fidelity bond in an amount and with
surety as may be specified and approved by the persons co nstituting
a majority of each of the governing bodies of the be neficiaries of
the trust, such bond to be in a su rety company authorized to
transact surety business in the State of Oklahoma but in no event
shall any bond be required of a trustee. The cost of said the bond
shall be paid from funds of the trust authorit y. The oaths of
office shall be administered by any person authorized to administer
oaths in the State of Oklahoma, and shall be filed with the
Secretary of State in trusts wherein the State o f Oklahoma is the
beneficiary; in the office of the county cler k in a trust wherein
any county is beneficiary; and i n the office of the clerk of the
municipality in a trust wherein any municipality is the beneficiary.
B. Unless otherwise specified in anot her state law authorizing
the creation of a state -beneficiary public trust, any public trust
that hereafter names th e State of Oklahoma as the beneficiary shall
have five (5) trustees appointed by the Governor of the State of
Oklahoma with the advice and c onsent of the Senate. The terms of
the trustees shall be as f ollows: of the truste es first appointed,
one member shall be appointed for a term of one (1) year; one member
shall be appointed for a term of two (2) years; one member shall be
appointed for a term of three (3) years; one member shall be
appointed for a term of four (4) years ; and one member shall be
appointed for a term of five (5) years. At the expiration of the
term of each member and of each succeeding member, the Governor
shall appoint a successor who shall serve for a term of five (5)
years. Whenever a vacancy on such trust shall occur by death,
resignation or otherwise, the Governor shall fill the same by
appointment and the appointee shall hold office during the unexpired
term. Each member shall hold office until his or her successor has
been appointed and qualified.
C. Any instrument or will creating a trust which is not within
the scope of subsection B of this section shall provide for the
appointment of a minimum of three trustees, their succession,
powers, duties, term, manner of removal an d compensation subject to
the provisions of subsection E of th is section, and in all such
respects the terms of said the instrument or will shall be
controlling. If the instrument or will makes no provision in regard
to any of the foregoing, then the gene ral laws of the state s hall
control as to the omissions.
ENR. H. B. NO. 3692 Page 3
D. Meetings of trustees of all public trusts shall be open to
the public to the same extent as is required by law for other public
boards and commissions. Such meetings shall also be open to the
press and any such equipm ent deemed necessary by the press to record
or report the activities of the meetings. In such trusts wherein
the State of Oklahoma is the beneficiary, a written notice of
trustees' meetings shall be filed with the office of the Sec retary
of State at least three (3) days prior to the meeting date. Records
of the trust and minutes of the trust meetings of any public trust
shall be written and kept in a place, the location of which shall be
recorded in the office of the county clerk o f each county, wherein
the trust instrument shall be recorded. Suc h records and minutes
shall be available for inspection by any person during regular
business hours. Every trust created under Sections Section 176 et
seq. of this title shall file a month ly report of all expendi tures
of bond proceeds with the governing body of each beneficiary and
with the Governor, the Speaker of the House of Representatives and
the President Pro Tempore of the S enate in the case of a public
trust having the State of Okla homa as beneficiary.
E. Trustees of any public trust may be removed fr om office for
cause, including incompetency, neglect of duty, or malfeasance in
office, by a district court having jurisdicti on. In the case of
persons appointed by the Governor, such persons shall be appoint ed
for terms not in excess of five (5) years, a nd shall be subject to
removal for cause. In the event of removal of a trustee under this
subsection, a successor trustee sh all be appointed as provided in
the trust instrument. Prov ided, however, in the eve nt a trustee is
so removed who is also a member of the governing board of a
municipal beneficiary, the successor trustee shall be appointed by
the judge of the court wherei n the removal occurred; said the
successor trustee shall se rve only until the remove d trustee ceases
to serve as a member of the go verning board of the municipal
beneficiary and his or her successor on said the board has
qualified.
F. The provisions of th is section shall be inapplicable to any
public trust created and existing prior to J uly 1, 1988, if the
instrument or will creating such public trust shall have been held
to be a valid and binding agreement in an opinion of the Supreme
Court of the State o f Oklahoma; and nothing in this section shall
impair or be deemed to impair the trus t indenture or existing or
future obligations o f such public trust.
SECTION 2. This act shall become effective November 1, 2022. ENR. H. B. NO. 3692 Page 4
Passed the House of Representatives the 12th day of May, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the 27th day of April, 2022.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________