Req. No. 10257 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 58th Legislature (2022) HOUSE BILL 4162 By: Townley AS INTRODUCED An Act relating to the Tourism and Recreation Department; amending 74 O.S. 2021, Sections 2202, 2205, 2207, 2208, 2210, 2211, 2212, 2213, 2214, 2215, 2216, 2219, 2220, 2221, 2222, 2223, 2224, 2225, 2226, 2228, 2229, 2232, 2234, 2240, 2243, 2244, 2245, 2248, 2249, 2250, 2251, 2253, 2256, 2257, 2258, 2259, 2260, 2261, 2262, 2263, 2264, 2267, 2268, 2269, 2271, 2272, 2273, 2274, 2276, 2276.1, 2276.2, 2278, 2280, 2281, 2282, and 2283, which relate to the Tourism and Recreation Department; changing entity designation; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 74 O.S. 2021, Section 2202, is amended to read as follows : Section 2202. A. It shall be the purpose of the Commission and the Department to: 1. Conserve and protect the parkland under the control of the Commission; 2. Oversee the operation and maintenance of the state's lodges and golf courses; Req. No. 10257 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Promote tourism by publicity and dissemination of information; 4. Assist in promotion of events sponsored by municipalities, associations, and organizations commemorating sp ecial events of local or historical interest; 5. Educate the public on the people, places, events, culture, and history of Oklahoma; and 6. Function in an advisory capacity to the Governor, State Legislature, state agencies, municipalities, and to privat e organizations on matters pertaining to tourism and recreation. B. The Commission Executive Director shall determine or set policy for the Department and shall determine the broad plans and programs necessary to accomplish the duties and responsibilities in the Commission Department. SECTION 2. AMENDATORY 74 O.S. 2021, Section 2205, is amended to read as follows : Section 2205. The Commission Executive Director shall prepare and submit to the Governor and to the Legislature on the first day of each legislative session a report of the activities of the Department, together with all information and data in the possession of the Department as the Commission Executive Director shall deem of value to the Governor, the Legislature and the people of the Stat e of Oklahoma. Each report may contain recommendations for legislation as the Commission Executive Director may deem necessary Req. No. 10257 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 to give full effect to all the provisions of the Oklahoma Tourism, Parks and Recreation Enhancement Act . SECTION 3. AMENDATORY 74 O.S. 2021, Section 2207, is amended to read as follows : Section 2207. Subject to the policies and rules of the Commission, the The Executive Director shall: 1. Organize the Department in a manner to efficiently achieve the objectives of the Commission Department; 2. Prepare and submit plans for a dministering the programs of the Commission Department; 3. Prepare a person nel schedule, employ personnel, define duties, appoint technicians and consultants, and fix salaries or compensation; 4. Administer all policies formulated and adopted by the Commission Department; 5. Enter into leases, grant easements and execute such instruments as in the judgment of the Commission are necessary or convenient to the exercise of those powers an d duties of the Commission Department pursuant to the Oklahoma Tourism, Parks and Recreation Enhancemen t Act. The Executive Director shall provid e a monthly report to the Commission Department of actions taken as a result of such delegation; 6. Develop and implement a pay incentive plan for employees of the Department. Incentive pay shall not be included in the base Req. No. 10257 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 salary of an employee, and shall be based on the goals and eligibility established by the Commission Executive Director on an annual basis. Incentive pay shall not exceed ten percent (10%) of the salary of each eligible employee or the total change in improved financial performance for each facility over the previous fiscal year. Such compensation shall not be subject to the requirements of Section 840-2.17 of Title 74 of the Oklahoma Statutes this title. The Commission Department shall promulgate rules for the implementation of the plan; and 7. Authorize any division of the Department to sell advertising in any of the publications of the division, on division property on which advertising is sold in the tourism industry, or on its web site, provided that such advertising shall be approved by the Division Director or designee prior to acceptance for publication. The sale of advertising and negotiation of rates for the advertising shall not be subject to the Central Purchasing Act or the Administrative Procedures Act. SECTION 4. AMENDATORY 74 O.S. 2021, Section 2208, is amended to read as follows : Section 2208. The Executive Director may authorize the use of revolving fund income for entertainment and promotion expenses of the Department, provided that the expenses are directly related to business development for state -operated or state-owned facilities and the furtherance of tourism in Oklahoma. In all cases, the Req. No. 10257 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 expenses shall be approved in advance by the Executive Director, be audited by the fiscal officer for the Department on a monthly basis, and submitted to the Commission as an item for information. SECTION 5. AMENDATORY 74 O.S. 2021, Section 2210, is amended to read as follows : Section 2210. The Executive Director is hereby authorized to employ an attorney as needed, within the total employee limit authorized for the operation of the De partment, on a full- or part- time basis, to advise the Commission, the Executive Director and other department personnel on legal matters and to appear for and represent the Commission Department and the Executive Director in administrative hearings and ot her legal actions and procedures related to their officia l duties. Upon the request of the Commission or the Executive Director, it shall be the duty of the Office of the Attorney General to give an official opinion, prosecute, and defend actions of the C ommission or Department. SECTION 6. AMENDATORY 74 O.S. 2021, Section 2211, is amended to read as follows : Section 2211. There are hereby created within the Oklahoma Tourism and Recreation Department the Division of State Parks, the Travel Promotion Division, "Oklahoma Today Magazine ", and the Division of Administrative Services; provided, howe ver, the Commission Executive Director shall have authority, by resolution, to create other divisions and may, by resolution, combine or aboli sh Req. No. 10257 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 any or all such divisions, as deemed to be necessary to carry out its duties under the Oklahoma Tourism, Parks and Recreation Enhancement Act. SECTION 7. AMENDATORY 74 O.S. 2021, Section 2212, is amended to read as follows : Section 2212. The Commission Department shall have the authority to exercise the following powers, rights and privileges related to state parks: 1. Have the exclusive possession and control of, and to operate and maintain for the benefit of the people of the State of Oklahoma all state parks and all lands and other properties now or hereafter owned or leased by the state or Commission for park or recreational purposes; 2. Acquire by purchase, exchange, lease, gift , condemnation, or in any other manner and to maintain, use and operate any and all property, real, personal or mixed, necessary or convenient to the exercise of the powers, rights, privileges and functions conferred upon it by the Oklahoma Tourism, Parks and Recreation Enhancement Act. Title to all such property shall be vested in the State of Oklahoma, although such property is sometimes herein referred to as property "of the Commission Department". The power of condemnation herein granted shall be exer cised in the manner p rovided by the general laws of the state for the condemnation of property by the state; Req. No. 10257 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Subject to the provisions of the Oklahoma Tourism, Parks and Recreation Enhancement Act , from time to time lease, without restriction as to ter m, any property which the Commission Department shall determine to be necessary or convenient to more fully carry into effect the duties and powers of said Commission Department; and 4. Acquire, conserve, protect, construct, extend, reduce, improve, maintain and ope rate any and all facilities of a ll kinds which in the judgment of the Commission Executive Director will provide recreational or other facilities for the benefit of the public, or which are necessary or convenient to the exercise of the powers of the Commission Department. SECTION 8. AMENDATORY 74 O.S. 2021, Section 2213, is amended to read as follows : Section 2213. The Commission Executive Director may contract for the study, analysis, and planning as reasonably necessary to aid in determining the feasibility of lea sing, selling or privately managing or developing the property or facilities under the control of the Commission Department. The Commission Department shall be exempt from the competitive bidding requirements of the Oklahoma Central Purchasing Act for the purpose of soliciting, negotiating, and effectuating such a contract or contrac ts. SECTION 9. AMENDATORY 74 O.S. 2021, Section 2214, is amended to read as follows : Req. No. 10257 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 2214. A. Any person, natural or corporate, who submits a bid on a contract for work or services, or for the furnishing of materials, equipment, or supplies , or for the sale of any other thing of value where a contract is involved, shall submit, at the time of contract execution, a performance bond in such form a nd amount as may be required by the Commission Executive Director, or any existing statutory provi sion. Any lessee leasing any portion of a state park, lake, or recrea tion area under the authority of any law shall submit a performance bond in such form an d amount as may be required by the Commission Executive Director. All such bonds shall be in such form as is approved by law for other performance bonds made to the State of Oklahoma, an d shall be deposited with the Secretary of State. This section is cu mulative to existing law, and is intended to require performance security for contracts and leases involving state parks, lakes, and recreation areas in those instances where no such bond s or other securities are presently required by law. B. For the purpose of this section, performance bonds shall include, but not be limited to, cash payments, cashie r's checks and irrevocable letters of credit. SECTION 10. AMENDATORY 74 O.S. 2021, Section 2215, is amended to read as follows : Section 2215. The Division of State Parks shall, subject to the policies and rules of the Commission Department: Req. No. 10257 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Conserve, preserve, plan, supervise, construct, enlarge, reduce, improve, maintain, equip and operate parkland and pub lic recreation facilities i ncluding, but not limited to, lodges, cabins, camping sites, scenic trails, picnic sites, golf courses, boating, and swimming facilities under the jurisdiction and control of the Commission. All facilities in state parks shall b e reasonably necessary and useful in promoting the public use of state parks and shall be in accord with the resource management plan for the respective park; 2. Supervise the management and use of state properties and facilities under the jurisdiction of the Commission Department, with an emphasis on conserving, protecting, and enhancing the natural, ecological, historic, cultural, and other resources contained in each park and to provide for the public enjoyment of and access to these resources in a manner which wi ll protect them for future generations; 3. Formulate, establish, maintain, and periodically review with public participation a resource management plan for each state park. The resource management plan, upon approval by the Commission Executive Director, shall be considered a guide for the development, utilization, protection, and management of the state park and its natural, cultural, historic, and recreational resources; 4. Authorize those employees in the Park Manager job family classification series, as established by the Office of Management Req. No. 10257 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 and Enterprise Services, to maintain administrative control over all facilities, programs, operations, services, and employees in the park to which they are assigned; and 5. Enforce the rules and policies governing the use of a nd conduct of patrons in all recreational facilities and properties of the Commission Department. The Commission Department may adopt rules to lease concessions in any state -owned facility if the Commission Department deems it feasible. SECTION 11. AMENDATORY 74 O.S. 2021, Section 2216, is amended to read as follows : Section 2216. Park Rangers, subject to the policies of the Commission Department, shall: 1. Obtain a commission as an officer or employee pursuant to the certification specified in Section 3311 of Title 70 of the Oklahoma Statutes and by the Div ision of State Parks; 2. Secure the parks and property of the Department and maintain law and order therein; 3. Maintain the powers of peace officers except the serving or execution of civil process, have in all parts of the state the same powers with respect to criminal matters and enforcement of the laws relating thereto as sheriffs, highway patrolmen and police officers in their respective jurisdictions and possess all immuni ties and matters of defense now available or hereafter made available to sheriffs, the highway patrol, and police officers in any suit Req. No. 10257 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 brought against them resulting from acts done in the course of their employment; 4. Possess law enforcement jurisdiction over state parks, including all facilities located therein; 5. Serve a probationary period of twelve (12) months. The Division of State Parks Director may extend the probationary period for up to three (3) additional months provided that the employee an d the Office of Management and Enterprise Services are notified in writing as to such action and the reasons therefor. At any time during a probationary period the employment of a park ranger may be terminated in accordance with Department procedure and a t the discretion of the Director of State Parks. Retention of the employee, after expiration of the probationary period, shall entitle the employee to be classified as a permanent employee; 6. Provide law enforcement protection and enforcement pursuant to the terms of interlocal agreements authorized by the Commission Department with other entities of government or federally recognized tribes in the state; and 7. Remain in the Oklahoma Law Enforcement Retirement System if promoted to the Park Manager job family classification series, provided they maintain their certification specified in Se ction 3311 of Title 70 of the Oklahoma Statutes, perform the requisite training required by the Chief Park Ranger, and meet all other requirements, policies, and rules of the Department and laws of the state. Req. No. 10257 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 12. AMENDATORY 74 O.S. 2021, Section 2219, is amended to read as follows : Section 2219. A. The Commission Department may offer for sale, sell and execute oil and gas leases, and oth er mineral and mining leases, on any of the lands of the state under the control and supervision of the Commission Department, provided, the development of land for the purpose leased shall not unduly interfere with the purpose for which the land is being used by the state. B. The Commission Department may promulgate additional rules, as are necessary and for the best interest o f the state to facilitate the sale of the leases. The Chair of the Commission Executive Director shall execute the leases for and on behalf of the Commission Department, and the Chair Executive Director shall be liable on the official bond for failure to faithfully discharge such duties. The sale of le ases shall be made upon the ba sis of a retained royalty of not less than one -eighth (1/8) of all oil, gas, casinghead gas, and other minerals produced from the lands covered by the leases and any additional cash bonus procured. Provided, however, if the state owns less than one hundre d percent (100%) of the oil, gas, casinghead gas an d other minerals covered by any such lease, the royalty retained shall not be less than one -eighth (1/8) of the mineral interest. C. All leases shall contain a provision that in the event of the discovery of natural gas, the gas shall be furnished free of Req. No. 10257 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 charge to any state institution now or hereafter located upon the lands covered by the lease. Leases shall be sold only after advertisement for a period of three (3) weeks i n a legal newspaper published and of general circulation in the county in which t he lands are located. A sale shall be made to the highest and best bidder and all bids shall be in sealed envelopes which shall be opened and considered at the same time. Th e Commission Department may reject any and all bids and readvertise any leases fo r sale. D. Revenues derived from the sale of oil and gas leases and other mineral leases shall be dedicated to the improvement of state park facilities and property to include, but not limited to, the conservation, protection, and rehabilitation of state parkland, the preservation of historic properties under the jurisdiction of the Commission Department, and master planning of state park properties. SECTION 13. AMENDATORY 74 O.S. 2021, Section 2220, is amended to read as follows : Section 2220. A. The Commission Department may prescribe and collect reasonable rates and fees pursuant to the provisions of this section for the services, facilities and commodities rendered by all property of the Commission Department. 1. The Commission Department may establish maximum rates for rooms at the state lodges and cabins, for recreational activities, for recreational vehicle s and camping sites, and for community facilities under control of the Commission Department. The method Req. No. 10257 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 whereby the rates are determined shall be promulgated pursuant to Article I of the Administrative Procedures Act. At least twenty (20) days prior to the adoption or approval of any rate changes by the Commission, the Department shall submit a copy of the pro posed rates, for informational purposes, to the Governor, Speaker of the House of Representatives and President Pro Tempore of the Senate. Any change in the rates during the year when the Legislature is not in session shall be reported in writing to the G overnor, Speaker of the House of Representatives and President Pro Tempore of the Senate within five (5) business days of such Commission action. 2. The Commission Department may establish maximum charges for all activities at state -owned golf courses. The charges may vary among the different golf courses according to the practices of the golf industry. The method whereby the maximum charges are determined shall be in accordance with rules promulgated pursuant to Article I of the Administrative Procedures Act. At least twenty (20) days prior to the adoption or approval of any rate changes by the Commission, the Department shall submit a copy of su ch proposed charges, for informational purposes, to the Governor, Speaker of the House of Representatives and President Pro Tempore of the Senate. 3. The Commission Department may establish entrance or day -use charges for the state park system. All monie s collected from entrance or day-use charges shall be used at the state parks where the charges were collected. The Commission Department may establish Req. No. 10257 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 an annual pass, or other varied passes as appropriate to that park, for visitors. The method whereby t he maximum charges are determined, sold, and collected shall be in accordance with rules promulgated pursuant to Article I of the Administrative Procedures Act. At least twenty (20) days prior to the adoption or approval of any rate changes by the Commission, the Department shall submit a copy of such proposed charges, for informational purposes, to the Governor, Speaker of the House of Representatives and President Pro Tempore of the Senate. 4. Fees shall be promulgated pursuant to Article I of the Administrative Procedures Act. 5. Fees may reflect the seasonal usage of the parks and facilities and for promotional purpose s and goals. B. All fees, licenses and other charges shall be posted in a convenient place in each park. Every person using any of th e facilities in a park shall be charged the same fees, licenses and every other charge except: 1. Residents of this stat e sixty-two (62) years of age and over and their spouses shall not be charged any admission fees for entrance into any state -owned and -operated park. The Commission Department may promulgate rules establishing different fees for residents and nonresident s sixty-two (62) years of age and over. Identification may be established by presentation of proof of age, residency, a state driver l icense, a state license for Req. No. 10257 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 identification only, birth certificate or any other form of identification authorized by the Commission; 2. Individuals who have been certified as totally disabled under state or federal law and their spouses shall be entitled to a fifty percent (50%) reduction of fees which apply to recreational - use facilities; 3. Children's groups, volunteer g roups as specified by the Commission Department, or governmental entities that provide beneficial services at the facility for which th e fee may be reduced or waived; and 4. Special discount rates as authorized in this section may be waived for individual s who are members of a group being provided a special group rate as allowed by law. C. The failure to collect such fees, licenses and other charges shall subject an employee of the Commission Department to a fine of Twenty-five Dollars ($25.00) for each a nd every violation. SECTION 14. AMENDATORY 74 O.S. 2021, Section 2221, is amended to read as follows : Section 2221. A. The Commission, through the Department, is authorized to promote state -owned, -leased, or -operated facilities. The Department may utilize specific promotion programs such as the provision of complimentary rooms, package-rate plans, group rates, guest incentive sales programs, entertainment of prospective guests, employee-information programs, golf promotional prog rams as well as Req. No. 10257 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 other sales and promotion programs considered acceptable in the hospitality industry, in the travel industry, or the regional magazine industry are approved as necessary advertising and promotion expenses. B. In order to best carry out the duties and responsibilities of the Department and to serve the people of the state in the promotion of tourism and tourism economic development, the Department may enter into partnerships for promotional programs and projects with a private person, firm, corporation, organization or association. The Department may enter into contracts or agreement s under terms to be mutually agreed upon to carry out the promotional programs and projects, excluding the advertising contract by the Department which utilizes the Tourism Promotion Tax or acquisition of land or buildings. The contracts or agreements may be negotiated and shall not be subject to the provisions of the Oklahoma Central Purchasing Act or the Public Competitive Bidding Act of 1974. C. All contracts or agreements entered into as partnerships for promotional projects or programs by the Departm ent shall be approved by the Commission Executive Director. SECTION 15. AMENDATORY 74 O.S. 2021, Section 2222, is amended to read as follo ws: Section 2222. A. The Commission Department may sell real estate owned by the State of Oklahoma or the Department that is surplus to its use and under the jurisdiction of the Commission Req. No. 10257 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Department located within McCurtain County and situated within th e Cedar Creek area of Hochatown State Park. B. The Commission and Department shall not be subject to the provisions of Section 129.4 of Title 74 of the Oklahoma Statutes this title for the sale. All monies received fr om the sale of the property, except those monies necessary to pay the expenses incurred pursuant to the sale, shall be deposited in the Oklahoma Tourism and Recreation Department Revolving Fund 215 ( "215 Fund"). Revenue derived from such real estate sale deposited to the fund shall be utilized for the benefit of Hochatown State Park or Beaver s Bend State Park. Such real estate sale shall not be subject to the provisions of Section 456.7 of Title 74 of the Oklahoma Statutes this title. SECTION 16. AMENDATORY 74 O.S. 2021, Section 2223, is amended to read as follows: Section 2223. A. The Commission Department may sell real estate and personal property owned or acquired by the State of Oklahoma or the Departmen t, now or in the future, and under the jurisdiction of the Commission located within Marshall County and situated within Texoma State Park. B. The sale of real estate and personal property authorized pursuant to subsection A of this section shall be subje ct to all existing easements and reservations o f record. The Commission or Department shall transfer any interests held inc luding, but not Req. No. 10257 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 limited to licenses, operating permits and leasehold interests to a subsequent purchaser. C. The Commission and Department shall not be subject to the provisions of Section 129.4 of Title 74 Section 327 of Title 6 of the Oklahoma Statutes for such sale. All mon ies received from the sale of these properties, except those monies necessary to pay the expenses incurred pursuant to the sale, sha ll be deposited in the Oklahoma Tourism and Recreation Department Revolving Fund 215 ("215 Fund"). Revenue derived from suc h real estate and personal property sale deposited to the fund shall be utilized for the benefit of the state park system. Such rea l estate and personal property sale shall not be subject to the provisions of Section 456.7 of Title 74 of the Oklahoma Stat utes this title. D. For every developed acre of land containing recreational vehicle campgrounds and other campgrounds that is sold pursuant t o this section, an equivale nt amount of replacement land shall be selected by the Oklahoma Tourism and Recreation Department in a suitable area at Lake Texoma or in the vicinity, and developed to provide comparable outdoor public recreation facilities for operation as part of the Ok lahoma state park system. SECTION 17. AMENDATORY 74 O.S. 2021, Section 2224, is amended to read as follows : Section 2224. The Commission Department may transfer to any city, county, or other agency of government, which is a willing Req. No. 10257 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 recipient, its interest in real and pe rsonal property owned by the State of Oklahoma or the Department and operated and maintained under the jurisdiction of the Commission Department. Such real estate transfers shall not be subject to Section 456.7 or 129.4 of Title 74 this title or Section 327 of Title 61 of the Oklahoma Statutes or any provision of state law relative to disposition of real estate. Such real estate transfers shall be subject to the following provisions: 1. The city, county or other agen cy recipient shall agree to accept the interest transferred by the state, accept responsibility for the property, and use the real esta te for public recreation purposes in accordance with the Land and Water Conservation Fund Act of 1965, Public Law 88 -578, 78 U.S.C., Section 897; 2. The city, county or other agency recipient shall not dispose of the property unless substitute property is provided that is equivalent in value and usefulness; 3. The Commission Department shall transfer the property to the recipient by quit claim deed or other instrument as may be appropriate; 4. The consideration for the property transfer shall be the agreement of the recipient to continue public recreation use of the property and to manage the property without an operating subsidy from the Department or Commission; Req. No. 10257 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. The real estate transfer shall be subject to all existing easements and reservations of record; and 6. The Commission Executive Director shall provide written notice to the President Pro Tempore of the Senate and the Speaker of the House of Representatives detailing any such proposed transfer agreement to be entered into pursuant to this sec tion no later than thirty (30) days prior to the first day of the legislative session. The Commission Department shall approve such proposed transfer during the legislative session to be effective at the beginning of the next fiscal year, contingent upon the approval of the proposed transfer by the Legislature. SECTION 18. AMENDATORY 74 O.S. 2021, Section 2225, is amended to read as follows: Section 2225. A. The Oklahoma Tourism and Recreation Commission Department is encouraged to explore the potential benefits of not-for-profit foundations for support of state parks. Such support from a not -for-profit foundation shall not substitute for the obligation of the state to support the natural resources infrastructure of the state, but shall serve only as a supplement to state funding and as a means to further assist the Oklahoma Tourism and Recreation Department in preserving the natural resources and historical, educational, and cultural facilities of significance in the state. Req. No. 10257 Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. There is hereby authorized the establishment of a not -for- profit state park foundation for the purpose of encouraging contributions by private individuals, companies, foundations, corporations, and others in the private and public sectors. Contributions shall be utilized for the support, preservation, and development of state park properties. This support, preservation, and development shall include, but is not limited to, preservation of historic facilities, development of educational and interpretive programs, materials, and other means of support. C. As used in this section, a "state park foundation " means any company, trust, corporation, or association: 1. That solicits money or property in the name of any state park under the jurisdiction of the Co mmission; and 2. Which is exempt from federal income taxes. D. The Commission Department may refuse to accept any grant, award, or donation of real or personal property offered by or through a state park foundation. E. No employee of the Department shal l be a voting member of a state park foundation board. Members of the Commission may serve on the board of a state park foun dation, but shall not constitute a majority of the members of the board of the foundation. No member of the Commission serving on the board or an employee of the Department serving as an ex officio member of the board shall be Req. No. 10257 Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 compensated by the foundatio n for service as a member of the foundation board. F. A state park foundation created pursuant to this section shall not be an entity of state government. No state funds shall be deposited in any account owned or controlled by a state park foundation. SECTION 19. AMENDATORY 74 O.S. 2021, Section 2226, is amended to read as follows : Section 2226. The Oklahoma Transportation Commission shall construct, maintain and repair those roads and parking areas in state parks as specified by t he Commission Executive Director. SECTION 20. AMENDATORY 74 O.S. 2021, Section 2228, is amended to read as fo llows: Section 2228. The Oklahoma Wildlife Conservation Commission and the Oklahoma Tourism and Recreation Commission Department may authorize, by written agreement or agreements between the Commissions Commission and Department, hunting in designated state parks or designated portions of state parks under the administrative control of the Oklahoma Tourism and Recreation Commission Department, excluding Lake Murray St ate Park. The agreement or agreements shall be made with the advice of the Attorney General 's office and shall contain the duration, terms and conditions of the hunting authorization, a list of species to be hunte d and permitted firearms, a map designatin g the specific land areas to be open to Req. No. 10257 Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 hunting and shall provide for the administration of the designated area or areas by the Oklahoma Wildlife Conservation Commission for so long as hunting is authorized under t he provisions of the agreement or agreemen ts. All areas to be open to hunting shall be clearly marked by signs to designate the open and closed areas. SECTION 21. AMENDATORY 74 O.S. 2021, Section 2229, is amended to read as follows : Section 2229. The Commission Executive Director is authorized to negotiate with the duly constituted authorities of the municipal corporation of Davis, in Murray County, to purchase from the municipal corporation the property now owned by it and known as Turner Falls, and other contiguous proper ties in Murray County, for a state park, provided that said municipal authorities shall, by resolution, declare said property no longer suitable for municipal park purposes and beyond the fiscal means of the corp oration properly to maintain as such. In the event of said purchase, the property shall be known as Turner Falls State Park. SECTION 22. AMENDATORY 74 O.S. 2021, Section 2232, is amended to read as follows : Section 2232. The Commission, through the Department, may sponsor, promote and implement an annual statewide tourism and recreation industry conference to promote the tourism and recreation industry. The Department is authorized to partner with private entities for the administrat ion and execution of the conference. Req. No. 10257 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The Department is hereby authorized to charge registration and exhibit space fees necessary to cove r the costs of the conference and shall deposit the fees plus any other conference proceeds, including donated funds, i nto an agency special account to be created by the Special Agency Account Board. Expenditure of monies from the agency special account s hall be for purposes incidental to the tourism and recre ation industry conference , and be approved by the Commission Executive Director. SECTION 23. AMENDATORY 74 O.S. 2021, Section 2234, is amended to read as follows : Section 2234. A. The Department, with the approval of the Commission Executive Director, shall develop rules to administer any of the matching funds derived from the Departm ent for the allowable expenditures of multicounty org anizations. The rules shall be developed in accordance with this section and shall be adopted by the Commission Department. As used in the Oklahoma Tourism, Pa rks and Recreation Enhancement Act: 1. "Multicounty organization" means a nonprofit organizati on which satisfies the following requireme nts: a. its primary purpose is to promote the tourism attributes of a multiple -county region which is identified as a tourism "country" or "lake" area, or any other organization participating in the matching funds program on July 1, 2001, Req. No. 10257 Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. it is governed by a board of directors elected by the membership of the organization, c. it is governed by a board of directors which equitably represents the counties within the multiple-county region, d. it has an administrator of operations position who is not an elected director, e. it utilizes income from private sector sources as the basis for funding its administrative and promot ion expenses, and f. it has provided to the Department an independent and certified financial a udit for the preceding fiscal year; 2. "Administrative expenditure " means expenditures for the administration of fund raising and tourism promotion. Administrative expenditures shall include salaries, payroll taxes, insurance, personal services contracts , travel expenses not to exceed the amounts provided in the State Travel Reimbursement Act, rent, lease or purchase of facilities, office supplies, telephone and electronic communications and multicounty organization audit costs; 3. "Allowable expenditure s" means expenditures by a multicounty organization submitted to the Department for matching funds in Req. No. 10257 Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 accordance with the provisions of this section and the rule s promulgated by the Commission Department; 4. "Discretionary expenditure" means those expenditures by multicounty organizations for which matching funds are not requested. Discretionary expenditures are not subject to the limiting provisions of this sec tion and the rules promulgated by the Commission; 5. "Independent and certified audit" means a financial audit performed in accordance with General ly Accepted Government Auditing Standards, issued by the Comptroller General of the United States. The scope of the audit shall, at a minimum, consis t of a statement of revenue and expenditures and shall include t he specific requirements identified in thi s section and the rules promulgated by the Commission Department; and 6. "Tourism promotion expenditure " means an expenditure for the preparation, printing, publication and distribution of media advertising in brochures, news and publicity materials, trav el posters, mailing pieces, newspapers, magazines, television, radio, billboards, advertising and promotiona l specialties, exhibit space and displays at trade shows and conventions and the expenses fo r operating such exhibits, including travel expenses, no t to exceed amounts provided for in the State Travel Reimbursement Act , the cost of a travel writer, travel agent, tour broker and tour operator familiarization tours into the State of Oklahoma , and registration Req. No. 10257 Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 fees for an annual tourism and recreation in dustry conference with the purpose of attracting tourists or generating travel or tourism activity within the state or multicounty organization areas. The amount expended within the multicounty organ ization area for tourism promotion shall not exceed fift y percent (50%) of the total of allowable expenditures and allocated matching funds. B. It is the intent of the Legislature to encourage the promotion of tourism by multicounty organizations in coope ration with the statewide program of the Department. Allowable administrative expenditures by multicounty organizations shall not exceed forty percent (40%) of the lesser of either the total amount allocated, including reallocations, to the organization f rom appropriations made by the Legislature or the total of the matched expenditures. The limitation on administrative expenditures applies only to those expenditur es submitted for matching with state- appropriated funds. C. With the exception of those org anizations identified as "country" or "lake" associations participating in the matching funds program on July 1, 2001, not more than one organization representing a recognized "country" or "lake" area shall be eligible to receive matching funds. D. Matching funds for the allowable expenditures shall be based upon actual expenditures by the multicounty organization less any discount, refund, or rebate to the multicou nty organization. Req. No. 10257 Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Multicounty organizatio ns shall use a State of Oklahoma Notarized Claim Form with all applicable statements and affidavits to req uest matching funds for the allowable expenditures. E. In order for a multicounty organization to receive m atching funds for expenditures incurred to publish and distribute a promotional periodical e mphasizing the attractions, landmarks, activities, geographical features and other characteristics of counties within the multicounty organization 's area of responsibility, the multicounty organization shal l be subject to the following requirements: 1. Maintain an account with a financial institution subject t o the regulatory control of a state or federal financial regulatory entity for the deposit and withdrawal of all funds collected by or on behalf of the multicounty organization; 2. Prepare an annual Statement of Income and Expense showing all deposits to the account maintained with the financial institution and all withdrawals from the account with the financia l institution for the period covered by th e annual income and expense statement; 3. May enter into a contract with a person or legally organized business entity for the solicitation of advertising revenue in a promotional periodical publication and for th e publication and distribution of the peri odical emphasizing the attributes of sites, Req. No. 10257 Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 scenes, businesses and attractions located within the area for which the multicounty organization is responsible if: a. the person or legally organized business entity provides a detailed written disclosure to th e multicounty organization of its actual costs inc urred in performance of the contract on a periodic basis during the period prescribed in the contract for performance which disclosure shall be at least quarterly, b. the multicounty organization ensures th at the actual cost of publication for the promotio nal periodical is printed in at least 10 -point type somewhere in the body of the publication, c. the multicounty organization ensures that the person or legally organized business entity performing services on behalf of the multicounty organization identifies to the multicounty organization each purchaser of advertising in the multicounty organization promotional periodical, the amount of money paid for advertising i n the promotional periodical, and the size or other relevant characteristics of the material purchased for publication in the promotional periodical , Req. No. 10257 Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 d. the person or legally organized business entity soliciting advertising revenue may not advance or deposit their own funds as a means of securing matching state funds, and such acts shall be deeme d as fraud, subject to prosecution, and e. the multicounty organization and the person or legally organized business entity acting on behalf of the multicounty organization both execute a statement, upon a form to be prescribed by the State Auditor and Inspector, under oath, that any funds being requested from the Department for matching of an allowable expenditure as authorized by this section represent an amount of money equal to an amount of money that ha s previously been deposited into the account maint ained by the multicounty organization as of the date the request for matching funds is made. The statement shall include the identity of each purchaser of advertising in the multicounty organization promotional periodical and the amount of money paid for advertising in the periodical together with the other information required by subparagraph c of this paragraph. The statement shall also include a verification that the funds collected by or on behalf of the multicounty organization were expended for: Req. No. 10257 Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (1) a legitimate operational expense of the multicounty organization, (2) the purpose of obtaining matching funds as authorized by this section, or (3) a promotional event sponsored, conducted or organized by the multicounty organization for attracting attention to a specific location or occasion in furtherance of a purpose of the multicounty organization. F. 1. Each multicounty organization shall prepare and submit appropriate plans, including a budget work program, for the ensuing fiscal year to the Commission Department. Expenditures for obligations incurred before the Commission Department approves the multicounty organizations ' plans and budget work programs and any changes thereto, and expenditures not in accordance with the multicounty organizations ' plans and budget work programs, shall not be allowable expenditures. The approval by the Commission Department of a multicounty organization budget work program constitutes a firm commitment of the multi county organization's appropriated funds, subject to any fiscal year limitation, exc ept that the Commission Department may reallocate unobligated funds as provided by law. 2. Any funds collected on behalf of the mul ticounty organization for advertisements in the promotional periodical shall Req. No. 10257 Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 be paid to the multicounty organization within twenty (20) working days after collection by any entity acting on behalf of the multicounty organization for solicitation of adverti sing revenue. The multicounty organizat ion shall deposit any funds paid to it within five (5) working days of receipt . G. Each multicounty organization shall be required to submit an annual independent and certified audit of the multicounty organization. The audits shall encompass all funds a vailable to the multicounty organization. The audit report shall include a statement of Income and Expense and, at a minimum, encompass all monies received by the multicounty organization and all matched expenditures reimbursed to the multicounty organiza tion. Revenue reported shall include all advertising revenue received and define all other individual sources of revenue. The names and addresses of and amounts received from each advertiser shall be included as an unaudited supplemental schedule to the audit report. H. The person or entity eng aged to perform the audit required by subsection G of this section shall: 1. Not be the same person or entity that performs bookkeeping, controllership or management functio ns, or other accounting services for the multicounty organization; 2. Be registered with the Oklahoma Accountancy Board and possess a license to practice; and Req. No. 10257 Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. File a copy of the audit performed on behalf of a multicounty organization with the State Au ditor and Inspector. I. Failure to submit an audit report shall be cause for withholding of matching funds to a multicounty organization. Audit reports showing matching by any amount in excess of the allowable expenditures, matching for unallowable expen ditures, or noncompliance with statutes, procedures prescribed herein, or in rules promulgated by the Commission Department shall be cause for withholding of matching funds until such time as restitution is made to the Department. J. The State Auditor and Inspector shall conduct an office examination of the audits filed pursuant to par agraph 3 of subsection H of this section on an annual basis. The examination shall include analysis of the quality of the audit performed and shall include written recommend ations for modifications in future audits conducted on behalf of a multicounty org anization. SECTION 24. AMENDATORY 74 O.S. 2021, Section 2240, is amended to read as follows : Section 2240. A. The Oklahoma Tourism and Recreation Department shall establish a cost and reven ue reporting system for all budget activities and sub activities of the Depa rtment. B. 1. The State Auditor and Inspector or a designated agent of the State Auditor and Inspector shall perform an independent audit of the Department annually. The audit s hall be conducted in Req. No. 10257 Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 accordance with the Generally Accepted Government Audit ing Standards as issued by the Comptroller General of the United States. The cost of the audit shall be borne by the Depa rtment. 2. Matters to be considered in determining the ty pes of activities to be audited and the scope of the audit shall be based on an analysis of: a. the date and results of prior audits, reviews, and/or independent studies, b. financial exposure, c. potential loss and risk, d. requests by the Commission and/ or executive management of the Department, e. major changes in operations, p rograms, systems, and controls, and f. opportunities to achieve operating benefits. The audit may be conducted in accordan ce with Section 213.2 of Title 74 of the Oklahoma Statutes this title. 3. The internal auditors of the Department shall conduct internal audits of Department facilities and programs pursuant to the provisions of Section 228 of Title 74 of the Oklahoma Statutes this title. 4. The audits required by this section shall be completed on or before December 31 of each year and shall, upon distribution, become public record. Req. No. 10257 Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. Any person who intentionally alters or destroys records needed for the performance of an audit as provid ed for in this section or intentionally causes or directs a subordinate to do such acts, shall be subject to immediate removal from offic e or employment. D. The Commission Executive Director shall provide notice to Department employees affected by this se ction of the prohibited acts and the penalties pursuant to the provisions of this section. SECTION 25. AMENDATORY 74 O.S. 2021, Section 2243, is amended to read as follows : Section 2243. Expenditure of funds for all purchases in exc ess of Fifty Thousand Dollars ($50,000. 00) shall not be contracted except upon approval of a majority of the Oklahoma Tourism and Recreation Commission Department. The amount exempted by paragraph 1 of subsection A of Section 85.7 of this title shall appl y to each separate department facility as identified by the annual budget submitted to the Office of Management and Enterprise Services pursuant to Section 34.42 of Title 62 of the Oklahoma Statutes. SECTION 26. AMENDATORY 74 O.S. 2021, Section 2244, is amended to read as follows: Section 2244. A. The Department shall be exempt from any provision of Sections 85.1 th rough 85.45k of this title requiring purchases to be made pursuant to a statewide contract for individual Req. No. 10257 Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 purchases of less than Two Thousand Five Hundred Dollars ($2,500.00) when the following conditions are met: 1. The Department documents a cost saving s to the state resulting from the purchase of the item(s) from a vendor not on the statewide contract; 2. The exempted purchase is made in the county where the purchasing facility, as identified in subsection B of this section, is located or in an adjacen t county; and 3. The exempted purchase is approved by the Executive Director or a designee prior to the purchase. B. The Commission Department shall promulgate rules, procedures, and forms necessary to adequately document the dollar savings resulting fro m the application of this section. C. The exemption provided for in this section shall apply to individual department entities identified by the annual budget submitted to the Office of Management and Enterprise Services. D. The Department shall not be r equired to purchase furniture, fixtures and equipment, and soft goods associated with the decor of the state parks, lod ges, golf, and tourism information center facilities from Oklahoma prisons or reformatories. E. Nothing in this section shall be constru ed to authorize bid splitting as prohibited by The Oklahoma Central Purchasing Act. SECTION 27. AMENDATORY 74 O.S. 2021, Section 2245, is amended to read as follows: Req. No. 10257 Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 2245. A. The Department may place uncollectible accounts receivable in a special account for accounting and budgetary purposes. An "uncollectible account receivable " shall have been uncollectible or due for at least one (1) year and possess at least one of the followi ng characteristics: 1. The debtor has been discharged from bankruptcy or is insolvent; 2. The debtor cannot be found or is deceased; or 3. A collection agency h as indicated its inability to collect the debt. B. If uncollectible accounts receivable are placed in a special account, the following p rocedures shall be observed: 1. The proposed uncollectible accounts shall be forwarded to the Department by the approp riate divisions. The Department shall then submit the accounts to the Commission Department and to the State Auditor and Inspect or once each fiscal year for placement into the special uncollectible account; and 2. The Commission Executive Director and the State Auditor and Inspector shall certify those accounts which meet the requirements of this section as "uncollectible accounts receivable" and shall place those accounts in the special account created by this section. C. The special uncollectible accou nts receivable account shall not be used for budgetary purposes in determining the assets of the Department or any of its divisio ns. The Department shall take all Req. No. 10257 Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 reasonable steps to collect all accounts, including those placed in the special account by o peration of this section. SECTION 28. AMENDATORY 74 O.S. 2021, Section 2248, is amended to read as follows : Section 2248. The State Treasurer of Oklahoma shall be ex officio Treasurer of the Commission Department for all purposes of the Oklahoma Tourism, Parks and Recreation Enhancement Act. All official action taken by the Commission Department shall be taken through the adoption of appropriate resolutions. SECTION 29. AMENDATORY 74 O.S. 2021, Section 2249, is amended to read as follows: Section 2249. The monies of the Commission Department, except monies appropriated by the Legislatu re, shall be disbursed only by checks, drafts, orders or other instruments signed by such pers ons as shall be authorized to sig n the same by the bylaws or by appropriate resolution. The general manager, if any, Executive Director and all other officers, a gents and employees of the Commission Department who shall be charged with the collection, custody, or payment of any funds of the Commission Department shall give bond conditioned on the faithful performance of their duties and an accounting for all funds and properties of the Commission Department coming into their respective hands . Each bond, or if a blanket bond shall be pres cribed, shall be in a form, amount, and with a surety approved by the Commission Executive Director, and the Req. No. 10257 Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 premiums on the bonds shall be paid by the Commission Department and charged as an operating expense. SECTION 30. AMENDATORY 74 O.S. 2021, Section 2250, is amended to read as follows: Section 2250. The Commission Department shall keep complete and accurate accounts of all trans actions and affairs of the Commission Department, conforming to approved methods of bookkeeping. Suc h accounts and the contracts, documents and records of the Commission Department shall be kept at its principal office and shall be open to public inspection at all reasonable times. SECTION 31. AMENDATORY 74 O.S. 2021, Section 2251, is amended to read as follows: Section 2251. There is hereby created in the State Treasury a revolving fund for the Department to be designated the "Oklahoma Tourism and Recreation Department Revolving Fund ". The fund shall consist of all monies receive d by the Department pursuant to the provisions of this act, monies derived from the sale or conveyance of real property under the jurisdiction of the Commission Department, and interest attributable to investment of money in the fund. The revolving fund shall be a continuing fund not subject to fiscal year limitations and shall be under the administrative direction of the Departmen t. Expenditures from the fund created by this section shall be for the administration, operation, and maintenance expenses of the Department, for purchase of real Req. No. 10257 Page 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 property, and shall be made pursuant to the la ws of this state and the statutes relating to the Department. Expenditures from said fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Serv ices for approval and payment. SECTION 32. AMENDATORY 74 O.S. 2021, Section 2253, is amended to read as follows : Section 2253. There is hereby create d in the State Treasury a revolving fund for the Oklahoma Tourism and Recreation Department to be designated the "Tourism and Recreation Environmental Loan Proceeds Revolving Fund ". The fund shall be a continuing fund, not subject to fiscal year limitatio ns, and shall consist of all monies received from the State Revolving Fund loan programs as administered by the Oklahoma Water Re sources Board designated s pecifically for the purposes of reimbursements, construction, repair, remediation, or improvement of eligible facilities under the jurisdiction of the Oklahoma Tourism and Recreation Commission Department. The fund shall be under the administrative direction of the Oklahoma Tourism and Recreation Department. All monies accruing to the credit of the fund may be budgeted and expended by the Oklaho ma Tourism and Recreation Department for the purpose of constructing, repairing, remediating, improving loan eligible proje cts, reimbursing the Department for eligible planning and design expenses, or paying for Req. No. 10257 Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 associated loan financing requirements. Exp enditures from the fund shall be made upon warrants issued by the State Treasurer a gainst claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. SECTION 33. AMENDATORY 74 O.S. 2021, Section 2256, is amended to read as follows : Section 2256. A. The Commission Department shall have the power and is authorized to issue negotiable bonds in anticipation of the collection of all or any part of its revenues, not to exceed Five Million Dollars ($5,000,000.00), for the purpose of constructing, reconstructing, improving, bettering or extending any properties which it is authorized to maintain or operate hereunder. The Commission Department shall pledge all or any part of the revenues derived from the operation of the parks controlled and operated by the Commission Department to the payment of the interest and principal of such bonds. B. The bonds authorized by this section s hall be authorized by resolution of the Commi ssion the Executive Director and may, as provided in such resolution: 1. Be issued in one or more series; 2. Bear such date or dates and may mature at such time not exceeding twenty-five (25) years from their respective dates; 3. Bear interest at a rate or rates not exceeding ten percent (10%) per annum; and Req. No. 10257 Page 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. Contain such ter ms, covenants and conditions. C. The bonds authorized by this section may be sold in a manner and upon terms as determined by the Commission Executive Director. The interest cost yield to maturity of any issue of bonds shall not exceed ten percent (10%) per annum, payable semiannually. D. Any resolution authorizing the issuance of bonds under this act may contain covenants including, but not limited to: 1. The purpose or purpos es to which the proceeds of the sale of bonds may be applied, and the deposit , use, and disposition thereof; 2. The use, deposit, securing of deposits , and disposition of the revenues of the Commission Department, including the creating and maintenance of reserves; 3. The issuance of additional bonds payable from revenues of the Commission Department; 4. The operation and maintenance of properties of the Commission Department; 5. The insurance to be carried t hereon, and the use, deposit and disposition of insurance monies; 6. Books of account and the inspe ction and audit thereo f and the accounting methods of the Commission Department; 7. The nonrendering of any free service by the Commission Department except for promotional activities as deemed in thi s act; and Req. No. 10257 Page 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8. The preservation of the properties of the Commission Department so long as any of the bonds remain outstanding, from any mortgage, sale, lease or other encumbrances not specifically permitted by the terms of the resolution. E. At the discretion of the Commission Executive Director, any bonds issued under the provisi ons of this act may be secured by a trust indenture by and between the Commission Department and a corporate trustee, which may be any trust company or bank having the powers of a trust company within the state. Any trust indenture may pledge or assign the revenues from the operation of properti es of the Commission Department, but shall not convey or mortgage any properties, except such revenues. Any trust indenture or any resolution providing for the issuance of such bonds may contain provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Commission Department in relation to: 1. The construction, improvement, mainte nance, repair, operation and insurance of the improvements in c onnection with which such bonds shall have been authorized; 2. The custody, safeguarding and application of all mon ies; and 3. The employment of consulting engineers in connection with the construction or operation of such improvements. Req. No. 10257 Page 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 F. It shall be lawful for any bank or trust company incorporated under the laws of the state, which may act as depository of the pro ceeds of bonds or of revenues, to furnish indemnifying bonds or to pledge sec urities as may be required by the Commission Department. Any trust indenture may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders as is customary in trust agreements or trust indentures securing bonds and debentures of corporations. In addit ion to the foregoing, any trust indenture may contain other provisions as the Commission Executive Director may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of any trust indenture may be treated as a pa rt of the cost of operation of the improvements for which the bonds are authorized. G. Monies received pursuant to the authority of this act, whether as proceeds from the sale of bonds or as revenues from the operations of the properties which have been i dentified for bond repayment purposes, sh all be deemed to be trust funds, to be held and applied solely as provided in this act. The resolution authorizing the issuance of bonds of any issue, or the trust indenture securing such bonds, shall provide that any officer to whom, or any bank or trust company to which, the monies shall be paid, shall act as trustee of the monies and shall hold and apply Req. No. 10257 Page 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the same for the purpose hereof, subject to such regulations as this act and such resolution or trust indentur e may provide. SECTION 34. AMENDATORY 74 O.S. 2021, Section 2257, is amended to read as follows: Section 2257. The Commission Executive Director shall have the power and is authorized to refund the outstanding series of the revenue bonds authorized by this act. The Commission Department shall pledge to the payment o f the principal and interest of the refunded bonds all or any part of the revenues derived from the operation of the parks and lodges controlled and operated by the Commission Department. If not prohibited by t he terms of the revenue bonds, interest earni ngs on construction funds may be utilized by the Commission Department as provided by law. SECTION 35. AMENDATORY 74 O.S. 2021, Section 2258, is amended to read as follows : Section 2258. Bonds bearing the signatures signature of Commission officers the Executive Director on the date of the signing thereof shall be valid and bin ding obligations, notwithstanding that before the delivery of the bonds, any or all the persons whose signatures appear thereon shall have ceased to be officers of the Commission Executive Directors of the Department. The validity of the bonds shall not be dependent upon nor affected by the validity or regularity of any proceedings relating to the construction, reconst ruction, improvement, betterment or extension Req. No. 10257 Page 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of the properties for which the bonds are issued. The resolution authorizing the bonds may pr ovide that the bonds shall contain a recital that they are issued pursuant to this act, which recital shall be conclusive evidence of their validity and of the regularity of their issuance. SECTION 36. AMENDATORY 74 O.S. 2021, Section 2259, is amended to read as follows : Section 2259. A. The Commission Department shall prescribe and collect reasonable rates, fees, tolls or charges for the services, facilities and commodities rendered by all property of the Commission Department, a portion of which, may be pledged to the payment of bonds issued pursuant to this act. The Commission Department shall revise the rates, fees, tolls or charges from time to time whenever necessary to ensure that the revenues to be derived therefrom shall be fully sufficient to pay principal of and inte rest on such bonds. The gross revenues derived by the Commission Department from the operation of any part or parts of the properties of the Commission Department, but no revenues derived by the Commission Department through legislative appropriation or f rom sources other than operation of the properties of the Commission Department, may be pledged to the payment of principal and interest. Notwithstanding any other provisions of law, the Commission Department may use money derived from annual legislativ e appropriations on a year -to-year basis, as authorized by the Req. No. 10257 Page 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Legislature, to repay any obligations to the Oklahoma Water Resources Board pursuant to Sections 1085.51 and 1085.71 et seq. of Title 82 of the Oklah oma Statutes. B. The Commission Department is hereby authorized to construct improvements in several parks and auth orize the issuance of bonds for all such improvements, and to pledge for the payment of the bonds and the interest thereon, revenues derived by the Commission Department from the operation of any or all of the parks in which any consolidated bond issue has been authorized. C. The Commission Department is further authorized to construct state-of-the-art tourism information centers on interstat e highways including, but not limited to, entry points near the borders of the state and major metropolitan areas, a nd authorize the issuance of bonds for all construction projects, and to pledge for the payment of such bonds and the interest thereon, reve nues derived by the Commission Department from the lease or operation of any or all of the tourism information cente rs for which any such consolidated bond issue has been authorized. D. Any revenues which may be received by the Commission Department for the use of such buildings or improvements, in w hole or in part, shall be regarded as all other reven ues of the Commission Department and shall be subject to be pledged to the payment of bonds issued hereunder. Each bond shall recite in substance that such bond and the interest thereon is payable solel y Req. No. 10257 Page 49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 from the revenues pledged to the payment thereof, and that suc h bond does not constitute a debt of the Commission Department or of the state within the meaning of any constitutional or statutory limitation. SECTION 37. AMENDATORY 74 O.S. 2021, Section 2260, is amended to read as follows : Section 2260. A. It may be provided in any resolution authorizing bonds under this act that, in the event of a default in the payment of principal or interest on the bonds or in the performance of any agreement o r covenant contained in the resolution, and if such de fault shall have continued for a prescribed period, then the holders of a specified percentage of the outstanding bonds, or a t rustee acting in their behalf, may for the equal and proportion al benefit of the holders of all of the bonds and with or without possession thereof: 1. By mandamus or other suit, action or proceeding at law or in equity, enforce all rights of the holders of the bonds; 2. Bring suit upon the defaulted bonds or coupons; 3. By action or suit in equity to require the Commission Department to act as if it were the trustee or an express trust for the bondholders; 4. By action or suit in equity to enjoin any acts or things which may be unlawful or in violation of the rights of the holders of the bonds; Req. No. 10257 Page 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. After notice to the Commission Department as the resolution may provide, declare the principal of all of the bonds due and payable; or 6. Apply as a matter of right for the appointment of a receiver who may enter and take possession of all or any part o f the properties of the Commission Department and operate and maintain the same and fix, collect and receive fees and charges for the use thereof and services rendered thereby sufficient to provide revenues adequate to carry out all of the provisions of the bond reso lution and the costs and disbursements of the proceeding and of the receiver. B. Subject to the provisions of the Constitution of the State of Oklahoma, the courts of the county in which any of the real estate controlled and operated by the Commission Department may be located and the courts of Oklahoma County shall have jurisdiction of any suit, action or proceeding and of all property involved ther ein. SECTION 38. AMENDATORY 74 O.S. 2021, Section 2261, is amended to read as follows : Section 2261. Unless an action shall be filed in the Supreme Court for validation of the bonds in the manner hereinafter provided, no bonds shall be issued he reunder until a certified copy of the proceedings authorizing the issuance thereof, together with any other information which the Attorney General may require, shall be submitted to the Attorney General. If the Attorney General find s Req. No. 10257 Page 51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 that such bonds have been authorized in accordance with la w, the Attorney General shall approve the bonds and shall execute a certificate to that effect, which shall be filed in the office of the State Auditor and Inspector. All bonds so approved by the Attorney General, regi stered by the State Auditor and Inspe ctor, and issued in accordance with the approved proceedings shall be valid and binding obligations of the Commission Department, and the bonds and all of the provisions securing the bonds shall be incontestable for any cause in any court in Oklahoma unless suit ther eon shall be brought in a court having jurisdiction within thirty (3 0) days from the date of the approval. SECTION 39. AMENDATORY 74 O.S. 2021, Section 2262, is amended to read as follo ws: Section 2262. Nothing in this act shall be construed to authorize the Commission Department to mortgage or otherwise encumber any of its property of any kind, except that the revenues thereof may be pledged as herein provided. SECTION 40. AMENDATORY 74 O.S. 2021, Section 2263, is amended to read as follows : Section 2263. All property control led and operated by the Commission Department shall at all times be exempted from forced sale and nothing in this act shall authorize the sa le of any property under any judgment rendere d in any suit, and such sales are hereby prohibited. Req. No. 10257 Page 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 41. AMENDATORY 74 O.S. 2021, Section 2264, is amended to read as follows: Section 2264. All of the property controlled and ope rated by the Commission Department and all bonds issued hereunder and the interest thereon shall be exempt from taxa tion by the State of Oklahoma or by any municipal corporation, county or other political subdivision or taxing district of the state, except that the bonds shall be subject to the payment of inheritance taxes. SECTION 42. AMENDATORY 74 O.S. 2021, Section 2267, is amended to read as follows: Section 2267. The Commission Department may issue bonds unde r this act for the purpose of refunding any obligations of the Commission Department previously issued under this act, or may authorize and deliver a single issue of bonds hereunder, in part for the purpose of refunding such obligations and in part for the acquisition of additional properties or improvements. Where bonds are issued under this section solely for refunding purposes, such bonds may either be sold as above provided or delivered in exchange for the outstanding obligations. If sold, the proceed s may be either applied to the payment of the obligations, refunded or deposited in escrow for the retirement of the bond obligations. Nothing contained in this act shall be construed to authorize the refunding of any outstanding obligations which are not either maturing, callable for redemption under their terms or voluntarily Req. No. 10257 Page 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 surrendered by their holders for cancellation. All bonds issued under this section shall in all respects be authorized, issued, and secured in the manner provided for other bonds i ssued under this act and shall have all of the attributes of such bonds. The Commission Department may provide that any refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations which are refunded. SECTION 43. AMENDATORY 74 O.S. 2021, Section 2268, is amended to read as follows : Section 2268. The Commission Department is authorized in its discretion to file an application with the Supreme Court of Oklahoma for the approval of any se ries of bonds to be issued hereunder, and exclusive original jurisdiction is hereby conferred upon the Supreme Court to hear and determine each such application. It shall be the duty of the Court to give such applications precedence over the other business of the Court and to consider and pass upon the applications any protests which may be filed thereto as speedily a s possible. Notice of the hearing on each application shall be given by a notice published in a newspaper of general circulation in the state informing that, on a day named, the Commission Department will ask the Court to hear its application and approve bonds. Such notice shall inform all persons interested that they may file protest against the issuance of the bonds and be present at the hearing and contest the legality thereof. Such notice shall be Req. No. 10257 Page 54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 published one time not less than ten (10) days prior to the date named for the hearing, and the hearing may be adjourned from time to time in the discretion of the Court. If the Court shall be satisfied that the bonds have been properly authorized in accordance with this act and that when issued they will c onstitute valid obligations in accordance with their terms, the Court shall render its written opinion approving the bonds and shall fix the time within which a petition for rehearing may be filed. The decision of the Court shall be a judicial determinati on of the validity of the bonds and shall be conclusive as to the Commission Department, its officers and agents. Thereafter, the bonds so a pproved and the revenue pledged to their payment and the provision and agreements contained in the bond resolution for the security of such bonds shall be incontestable in any court in the State of Oklahoma. SECTION 44. AMENDATORY 74 O.S. 2021, Section 2269, is amended to read as follows : Section 2269. All revenues collected or received by the Commission Department under the provisions hereof shall be held in a separate fund or funds and deposited in a bank or banks as the Commission Executive Director may direct, from time to time, an d need not be paid into the Oklahoma Tourism and Recreation Dep artment Revolving Fund. All revenues shall be subjected to payment out of such fund or funds from time to time as the Commission Executive Director may direct. Req. No. 10257 Page 55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 45. AMENDATORY 74 O.S. 2021, Section 2271, is amended to read as follows: Section 2271. The Commission Department is hereby authorized to: 1. Make and issue notes and bonds, and pledg e revenues of the Commission Department subject to the Oklahoma Bond Oversight and Reform Act. The Commission Department revenue notes and bonds issued under the provisions of this act shall not at any time be deemed to constitute a debt of the state or o f any political subdivision thereof or a pledge of the faith and credit of the state or of any political subdi vision. Such notes and b onds shall be payable solely from the revenues of the Department and any other funds as may be provided by law for such p ayments and shall contain on their face a statement to that effect; and 2. Arrange for guaranties or insuranc e of its notes and bonds by the federal government or by any private insurer, and to pay any premiums therefrom. SECTION 46. AMENDATORY 74 O.S. 2021, Section 2272, is amended to read as follows : Section 2272. A. The Commission Department may provide by resolution, from time to time, for the issuance of revenue notes and bonds for its lawful purposes, in such amount or amounts as are necessary, incidental, or convenient to the exercise of powers, rights, privileges, and functions conferred upon it by this ac t or Req. No. 10257 Page 56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 other law. The principal of and interest on any indebtedness shall be payable solely from the revenues of the Department and such othe r funds as may be provided by law for such payments. The Commission Department may provide for credit enhancement a s additional security or liquidity for its notes and bonds and enter into such agreements as may be necessary or appropriate to provide for the repayment of any funds advanced by the provider of any such credit enhancement including the payment of any fees and expenses incurred in connection therewith. The notes and bonds of each issue shall bear interest at fixed or variable rates and shall bear an average interest rate comparable to other revenue notes and bo nds of like credit quality and maturity as pre scribed by the State Bond Advisor and shall mature at such time or times not exceeding thirty (30) years from the date or dates of issue, as may be determined by the Commission Department. The notes and bonds may be made redeemable before maturity at the option of the Commission Department, at such time or times and at such price or prices and pursuant to such terms and conditions as may be f ixed by the Commission Department prior to the issuance of the notes a nd bonds. The Commission Department shall determine the form of the notes and bonds and the manner of execution thereof and shall fix the denominations o f the notes and bonds and the place or places of payment of principal and interest. If any officer whose signature or facsimile of whose signature appears on any notes and bonds shall cease to hold the office before Req. No. 10257 Page 57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the delivery of the notes and bonds, th e signature or the facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the person had remained in the office until delivery. All notes and bonds issued pursuant to the provisions of this act shall have all the qualities a nd incidences of negotiable instruments subject to the laws of this state. The Commission Department may sell the notes and bonds in such amounts a nd in such manner, either at public or private sale, and for such price, as it may determine to be in the best interest s of the state. If t he notes and bonds are not sold by competitive bid, the sale must be approved by the State Bond Advisor. B. The Commission Department may, by resolution, provide for the issuance of notes and bonds for the purpose of refunding notes and bonds then outstanding, including the payment of any redemption premium, any interest ac crued to the date of redemption of the notes and bonds, and for incurring additional indebtedness for its lawful purposes. The issuance of such notes and bonds shall be govern ed by the provisions of this act and the Oklahoma Bond Oversight and Reform Act. C. The Commission Department shall promulgate rules governing the issuance of revenue bonds authorized pursuant to this act. SECTION 47. AMENDATORY 74 O.S. 2021, Section 2273, is amended to read as follows : Req. No. 10257 Page 58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 2273. Before any bond shall be issued and delivered by the Commission Department, a certified copy of the proceedings for the issuance thereof, together with any other information wh ich the Attorney General of the State of Oklahoma may require shall be submitted to the Attorney General. If the Attorney General shal l find that the notes and bonds have been issued in accordance with the law, the Attorney General shall approve the notes and bonds and execute a certificate to that effect. The Attorney General shall file the certificates in the Office of the State Audit or and Inspector, and the certificates shall be recorded in a record kept for that purpose. All notes and bonds approved by the Attorney General and issued in accordance with the approved proceedings shall be valid and binding obligations of the Commission Department and shall be incontestable from and after the date of such approval. SECTION 48. AMENDATORY 74 O.S. 2021, Section 2274, is amended to read as follows : Section 2274. Revenue notes and bonds of the Commission Department issued pursuant to the provisions of this act shall not constitute a debt of the state or of any political subdivision thereof, or a pledge of the full faith and credit of the state, or of any political subdivision thereof, but such notes and bonds shall be payable solely from the funds provided therefrom. The forms of the notes and bonds so issued shall contain on the face thereof a statement to the effect that neither the state nor the Commission Req. No. 10257 Page 59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Department shall be obligated to pay the same or the intere st thereon except from the revenues of the Department pledged to the payment of such notes and bonds and that neither the faith and credit nor the taxing power of the state or any political subdivision thereof is pledged, or may hereafter be pledged, to th e payment of the principal of or interest on the notes and bonds. The notes and bonds so issued shall be exempt from taxation by the State of Oklahoma and any political subdivision thereof, including the income therefrom, and any gain from the sale thereo f. Notwithstanding any other provisions of law, the Commission Department may use money derived from annual legislative appropriations on a year-to-year basis, as authorized by the Legislature, to repay any obligations to the Oklahoma Water Resources Board pursuant to Sections 1085.51 and 1085.71 et seq. of Title 82 of the Oklahoma Statutes. SECTION 49. AMENDATORY 74 O.S. 2021, Section 2276, is amended to read as follows : Section 2276. The Commission Department shall be subject to blanket bond coverage as provided in Sections 85.26 through 85.31 of Title 74 of the Oklahoma Statutes 85.58Q through 85.58V of this title; provided, the Commission Department shall be authorized to purchase increased amounts of fide lity bond coverage for t hose employees deemed necessary by the Commission Executive Director. When the amount listed in Section 85.29 of Title 74 of the Oklahoma Req. No. 10257 Page 60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Statutes 85.58T of this title is deemed inadequate, the co st of increased coverage shall be borne by the Department. SECTION 50. AMENDATORY 74 O.S. 2021, Section 2276.1, is amended to read as follows : Section 2276.1 A. There is hereby created a trust fund to be known as the "Oklahoma State Park Trust Fund". The Oklahoma Tourism and Recreation Commission Department shall be the trustees of the Trust Fund. B. 1. The Commission Department may utilize five percent (5%) of the principal of the Trust Fund annually to: a. protect and conserve state park lands, but shall not include routine maintenance expenses of the state parks, b. preserve historic pr operties under the jurisdiction of the Commission Department, c. provide for one-time capital upgrades and improvements of state park resources, and d. pay fees and expenses associated with the services of a custodian of the Trust Fund. 2. Beginning July 1, 2012, and ending June 30, 2020, the Commission Department may utilize funds not to exceed Fifteen Million Dollars ($15,000,000.00) from the principal of the Trust Fund to construct and maintain a lodg e and any associated facilities Req. No. 10257 Page 61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 deemed necessary by the Commission Executive Director at the Lake Murray State Park. C. The Commission Department shall give priority for funding to the state park from whi ch the revenues were initially derived. D. The Trust Fund principal shall consist of monies from any and all mineral lease payments, seismograph fees, royalty payments, or other payments associated wit h oil and gas mineral operations at state parks that are managed by the Oklahoma Tourism and Recreation Department, any funds appropriated or trans ferred to the Trust Fund by the Legislature, and any monies or assets contributed to the Trust Fund from any other source, public or private. E. Notwithstanding o ther provisions of law, income and investment return on Trust Fund principal shall accrue to the Trust Fund for use as provided by authorization of the trustees for the purposes listed in subsection B o f this section. Except as provided for in subsection B of this section, no income or investment return or principal shall be used for administrati ve expenses of the Oklahoma Tourism and Recreation Department or expenses incurred by the Commission in the administration of the Trust Fund. SECTION 51. AMENDATORY 74 O.S. 2021, Section 2276.2, is amended to read as follows: Section 2276.2 A. The Oklahoma Tourism and Recreation Commission Department shall discharge their its duties as trustees Req. No. 10257 Page 62 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of the Oklahoma State Park Trust Fund created in Section 2276.1 of this title, hereafter referred to as the "Trust Fund": 1. With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character a nd with like aims; 2. By diversifying the investments of the Trust Fund so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and 3. In accordance with the laws, documents and instruments governing the Trust Fund. B. The Commission Department may procure insurance indemnifying the members of the Commission the Department from personal loss or accountability from liability resulting from the action or inaction of a member as a trustee. C. The Commission Department may utilize the written investment policy developed by the State Treasurer for the inves tment of public funds for the investment and management of the Trust Fund. Investments of the Trust Fund may be consistent with the guidelines set forth in Section 89.2 of Title 62 of the Oklahoma Statut es which establishes the investment requirements for public funds by the State Treasurer. D. Funds and revenues for investment by the Commission Department shall be placed with a custodian selected by t he Req. No. 10257 Page 63 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Commission Executive Director. Payment of any fees for the services of a custodian may be paid from t he income and investment return on the Trust Fund. The custodian may be the State Treasurer or a bank or trust company offering pension fund master tr ustee and master custodial services. If other than the State Treasurer is utilized, the custodian shall be chosen by a solicitation of proposals on a competitive bid basis pursuant to standards set by the Commission Executive Director. In compliance with the investment policy guidelines of the Commission Executive Director, the custodian bank or trust company shall be contractually responsible for ensuring that all monies of the Trust Fund are invested in income -producing investment vehicles at all times. If a custodian bank or trust company has not receiv ed direction from the Commission Executive Director as to the investment of the monies of the Trust Fund in specific investment vehicles, the custodian bank or trust co mpany shall be contractually respon sible to the Commission Department for investing the monies in appropriately collateralized short -term interest-bearing investment vehicles. If the State Treasurer is utilized as the custodian and has not received direct ion from the Commission Executive Director as to the investment of the monies of the Trust Fund in specific investment vehicles, the State T reasurer shall invest the monies in accordance with the investment policy developed by the State Treasurer for inves tment of public funds and in a manner consistent with the guidelines for the investme nt of Req. No. 10257 Page 64 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 public funds set forth in Section 89.2 of Title 6 2 of the Oklahoma Statutes. E. By November 1, 2006, and prior to August 1 of each year thereafter, the Commission Executive Director shall develop a written investment plan for the Trust Fund. F. The Commission Executive Director shall compile quarterly financial reports of all the funds and accounts of the Trust Fund on a fiscal year basis. The reports shall include several relevant measures of investment value, including acquisition cost and current fair market value with appropriate summaries of total holdings and returns. The report shall be distributed to the Director of the Legislative Service Bureau. G. After July 1 and before October 1 of eac h year, the Commission Department shall publish an annual report presented in simple and easily und erstood language. The report shall be submitted to the Governor, the Speaker of the House of Representatives, the Preside nt Pro Tempore of the Senate, and t he Director of the Legislative Service Bureau. The a nnual report shall cover the operation of the Trust Fund during the past fiscal year, including income, disbursements, and the financial condition of the Trust Fund at the end of the fiscal year. The an nual report shall also contain the information issued in the quarterly reports required pursuant to subsection F of this section as well as a summary of the results of the most recent actuarial valuation to Req. No. 10257 Page 65 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 include total assets, total liabilities, unfunded liability or over- funded status, contributions and a ny other information deemed relevant by the Commission Department. SECTION 52. AMENDATORY 74 O.S. 2021, Section 2278, is amended to read as follo ws: Section 2278. As used in the Oklahoma Trails System Act: 1. "Commission" means the Oklahoma Tourism and Recreation Commission; and 2. "Political subdivision " means any county, municipality or other subdivision of state or local government. SECTION 53. AMENDATORY 74 O.S. 2021, Section 2280, is amended to read as f ollows: Section 2280. A. There is hereby created a state trails system composed of: 1. State nature trails, which shall be trails designed to deepen the public's awareness and understanding of variou s ecological, geological or cultural qualities within the state by means of an interpretive service program; 2. State hiking trails, which shall be extensive trails and will serve to connect parks, scenic areas, historica l points and neighboring communiti es; 3. State special-use trails, which shall be trails designed to provide for those trail activities which require special trail definition and will include trails for bicycling, public riding and Req. No. 10257 Page 66 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 motorcycle and minibike activities, as well as trails des igned to meet the needs of the handicapped, the blind and the elderly; and 4. State heritage trails, which shall be trails designed to promote the identification and interpretation of significant cultural and historic sit es throughout the state. B. The Commission Oklahoma Tourism and Recreation Department, in accordance with appropriate federal, state and local governmental organizations, shall establish a uniform marker for the trails system. C. In the planning and designatio n of trails, the Commission Department shall give due regard to the interest of fe deral or state agencies, all political subdivisions, private land owners, interested individuals and citizen groups. Furthermore, the Commission Department encourages citizen participation in trail acquisition, construction, development and maintenance wh ere such activities will not conflict with the purposes of the Oklahoma Trails System Act. SECTION 54. AMENDATORY 74 O.S. 2021, Section 2281, is amended to read as follows : Section 2281. A. The Commission Department shall be vested with the responsibility and authority to: 1. Plan, purchase, develop, construct, maintain, operate and protect the state trails system and shall prescri be the uses and limits of each designated trail; and Req. No. 10257 Page 67 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Acquire, by lease, deed or contract, rights -of-way or easements of trails across private, municipal, county, state or federal lands. In selecting the rights -of-way, every effort will be made to minimize any adverse eff ects on the adjacent landown er or user and his or her operations. Acquisition sha ll be, whenever possible, in the form of an easement obtained by gift, exchange or purchase with donated funds. In cases where these attempts fail, the Commission Department may authorize the expenditure of state trail funds for acquisition in fee. Any agreement for acquisition of rights in land shall be for terms of not less than twenty -five (25) years whenever possible. B. The Commission Department may abandon any portion or all of a trail or easement acquired for trail purposes; or it may transfer any trail or easement to a local government having jurisdiction over the area in which the trail or easement is located, provided that such local government agrees to maintain and oper ate the trail. C. The Commission Department shall notify the owner of the land, through which any trail or easement passes, prior to entering into any agreement with local government for the operation of a trail and shall secure the co nsent of the landown er prior to the transfer of any trail or easement to a local government. D. The Commission Department shall review all formal declarations of railroad rights -of-way abandonment for possible inclusion into the state trails system. Req. No. 10257 Page 68 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. Within the boundaries of a right-of-way, the Commission Department may acquire, on behalf of the state, lands in fee title, any interest in lands in the form of scenic or other easements or any interest in lands under cooperative or other agreement. Acquisition of land or of any interest in land may be by gift, purchase or exchange. Acquisition may be through the use of funds obtained by donation, federal grants, legislative appropriation or otherwise. In acquiring real property or any interest therein, th e power of eminent domain shall not be us ed. F. 1. The Commission Department shall encourage the provision of bicycle routes within the rights -of-way of federal aid system highways and on or along county and city roadways. These bicycle routes shall be composed of three ty pes of pathways: bic ycle trails, bicycle lanes and bicycle routes. Bicycle trails shall be distinct pathways which separate bicycles from motorized vehicular traffic by means of an open space or barrier. Bicycle lanes shall use designated portions of ex isting roadways and w ill be clearly marked and separated from automob ile lanes. Bicycle routes shall be existing, low-volume roads and will be designated by clearly marked signs. 2. Prior to the designation and construction of the bic ycle pathway system, the Commission Department shall authorize the development of a bicycle mas ter plan. The plan shall be comprised of a set of clearly defined goals, a statement of current and Req. No. 10257 Page 69 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 projected demands, a proposed layout of routes, construction specifications, cost projections and the scheduling of implementation. The plan shall likewise devote serious consideration to those design criteria which will help to ensure the safety of bicyclist, pedestrian and motorist alike. 3. Funds received for this pathway program shall be expended in amounts deemed reasonable and necessary by the Commission Executive Director for the establishment of the bicycle pathway system. SECTION 55. AMENDATORY 74 O.S. 2021, Section 2282, is amended to read as follows : Section 2282. A. The Commission Department may establish and designate state trails on lands under the jurisdiction of a federal agency when, in the opinion of the federal agency, such lands may be so developed under the provisions of federal law. B. Nothing in the Oklahoma Trails System Act shall prevent a segment of the state trails system from being a part of the National Scenic or Recreation T rails System. The Commission Department shall coordinate the state trails system with the National Trails S ystem and will encourage and assist any federal studies for inclusion of state trails into the National Trails System. SECTION 56. AMENDATORY 74 O.S. 2021, Section 2283, is amended to read as follows : Section 2283. A. No hunting of wild game or the sho oting of firearms shall be permitted along the trail, with the exception of Req. No. 10257 Page 70 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 those portions of the trail which traverse public hunting areas. Such portions of the trail shall be closed to trail use, as listed in the Oklahoma Trails Sys tem Act, during hunting season. B. All horseback riding and motorcycling a ctivities shall be restricted to their designated special -use trails. Foot travel on special-use trails shall be permitted; however, the special -use activities shall have the right-of-way on the trails. C. Each person is guilty of a misdemeanor, who shal l: 1. Willfully mutilate, deface or destroy any guidepost, notice, tablet or other work for the protection o r ornamentation of any state trail; 2. Place along any trail or affix t o any object in the r ight- of-way, without a written license from the Commission Department, any word, character or device designed to advertise any business, trade, profession, article, thing, ma tter or event; or 3. Willfully cause any damage to lands wit hin or adjacent to the state trails system. SECTION 57. This act shall become effective November 1, 2022. 58-2-10257 KN 01/20/22