Req. No. 2766 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
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)
SENATE BILL 1265 By: Montgomery
AS INTRODUCED
An Act relating to the Revenue Stabilization Fund;
amending 62 O.S. 2021, Section 34.102, which relates
to the Revenue Stabilization Fund deposits; removing
certain prohibition of deposits to the Fund;
requiring that deposits exceeding certain limit be
apportioned for the benefit of common school s; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 34.102, is
amended to read as follows:
Section 34.102. A. There is hereby created in the State
Treasury a revolving fund to be known and designated as the “Revenue
Stabilization Fund”. The fund shall be a continuing fund, not
subject to fiscal year limitations.
B. For determinations made regarding deposits for fiscal years
beginning on or after July 1, 2019, no monies shall be deposited to
the credit of the Revenue Stabili zation Fund until such time as the
amount of actual revenue certified by the State Board of
Equalization as having been deposited into the General Revenue Fund
Req. No. 2766 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
for the first fiscal year prior to the beginning of the fiscal year
that deposits to the Revenue Stabilization Fund are first made
equals or exceeds Six Billion Six Hundred Million Dollars
($6,600,000,000.00).
C. Once the provisions prescribed by subsection B of t his
section have been met, deposits to the Revenue Stabilization Fund as
prescribed by this section may be made during any subsequent fiscal
year according to the requirements and lim itations imposed by this
act Section 34 et seq. of this title ; provided, that no deposits
shall be made during a fiscal year where the State Board of
Equalization General Revenue Fund certification for said fiscal year
is less than the State Board of Equalization General Revenue Fund
certification for the previous fiscal year plus an increment equal
to the amount otherwise calculated for deposit pursuant to
subsection E of this section.
D. Notwithstanding any other provisions of this section, unless
such deposits are the result of a direct appropriation to the
Revenue Stabilization Fund by the Legislature, no m onies shall be
deposited to the credit of the Revenue Stabilization Fund:
1. For for any month during a fiscal year after the month
during which the declaration of a revenue failure purs uant to the
provisions of Section 34.49 of this title has been made. For
purposes of this subsection, the limitation on d eposits to the
Revenue Stabilization Fund shall be imposed for the remaining months
Req. No. 2766 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
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 fiscal year during which the revenue failur e was declared,
but shall not operate as a limitation upon deposits f or any
subsequent fiscal year unless a revenue failur e is declared at some
time during such fiscal year ; or
2. That would cause deposits to the Revenue Stabilization Fund
for the fiscal year to exceed three percent (3%) of the State Board
of Equalization General Revenue Fund certification for that fiscal
year.
E. Except as provided in subsection I of this section, the
Revenue Stabilization Fund shall consist of:
1. One hundred percent ( 100%) of the revenue derived from the
gross production tax on oil lev ied pursuant to Section 1001 of Title
68 of the Oklahoma Statutes which is in excess of the five -year
average computed as prescribed by Section 34.103 of this title;
2. One hundred perce nt (100%) of the revenue derived from the
gross production tax on nat ural gas levied pursuant to Section 1001
of Title 68 of the Oklahoma Statutes which is in excess of the five -
year average computed as prescribed by Section 34.103 of this title;
3. Seventy-five percent (75%) of the revenue derived from
corporate income tax levied pursuant to Section 2355 of Title 68 of
the Oklahoma Statutes which is in excess of the five -year average
computed as prescribed by Section 34.103 of this title; and
4. Any amounts appropriated by the Legislature.
Req. No. 2766 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
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. 1. Except as provided in pa ragraph 2 of this subsection, in
the event that a rev enue failure is declared with respect to the
General Revenue Fund pursuant to Section 34.49 of this title, the
Director of the Office of Management and Enterprise Services may
withdraw up to one-quarter (1/4) of the balance of the Revenue
Stabilization Fund available at the beginning of the fiscal year,
provided the total amount withdrawn shall not exceed the amount of
the declared revenue failure, to in equal proportions reduce or
avoid reductions to age ncies for the current fiscal year and to
mitigate potential reductions of funds to be expended by common
school districts which were appropriated or authorized by the
Legislature, but exc luding any funds which are apportioned directly
to common school dist ricts.
2. For the fiscal year ending June 30, 2020, in the event that
a revenue failure is declared with respect to the General Revenue
Fund pursuant to Section 34.49 of this title, the Director of the
Office of Management and Enterprise Services may with draw amounts up
to a total of one-half (1/2) of the highest balance during the
fiscal year ending June 30, 2020, of the Revenue Stabilization Fund;
provided, the total amount withdrawn sh all not exceed the amount of
the declared revenue failure less any ap propriations made by the
Legislature to offset such r evenue failure, to in equal proportions
reduce or avoid reductions to agencies for the fiscal year and to
mitigate potential reduction s of funds to be expended by common
Req. No. 2766 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
school districts which were appro priated or authorized by the
Legislature for the fisc al year ending June 30, 2020, but excluding
any funds which are apportioned directly to common school districts.
No monies shall be w ithdrawn under the provisions of this subsection
for the purpose of r educing or avoiding reductions of appropriations
made pursuant to Section 129 of Enrolled House Bill No. 2765 of the
1st Session of the 57th Oklahoma Legislature or Section 1 of
Enrolled Senate Bill No. 1076 of the 1st Session of the 57th
Oklahoma Legislature.
G. In the event that a revenue failure is decla red with respect
to the General Revenue Fund pursuant to Section 34.49 of this title,
the Legislature may appropriate up to one -quarter (1/4) of the
balance of the Revenue Stabilization Fund available at the beginning
of the fiscal year, not to exceed the amount of the revenue failure
as declared with respect to the General Revenue Fund pursuant to
Section 34.49 of this title.
H. If the amount of revenue certified by the State Board of
Equalization at its February meeting in any year to be collected in
the General Revenue Fund for the upcoming fiscal year is less than
the amount of revenue certified by the State Board of Equalization
to be collected in the General Revenue Fund for the current fiscal
year as determined at its February meeting conducted in th e
preceding calendar year, the Legislature may appropriate up to one -
half (1/2) of the balance of the Revenue Stabilization Fund
Req. No. 2766 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
available at the beginning of the fiscal year; provided, that the
amount withdrawn shall not exceed the amount of the decline i n
revenue certified.
I. If during the Board of Equalization certification process,
one or more of the revenue sources identified in p aragraphs 1, 2 and
3 of subsection E of this section are forecasted t o experience a
revenue decrease, then the total depos its to the Revenue
Stabilization Fund as otherwise calculated under subsection E of
this section shall be reduced in an amount equal t o such revenue
decreases. For purposes of this subsection, “revenue decrease”
means an identified revenue source derived in an amount less than
the five-year average for such revenue source.
J. Monies that would cause deposits to the Revenue
Stabilization Fund for the fiscal year to exceed three percent (3%)
of the State Board of Equalization General Revenue Fund
certification for that fiscal year shall instead be apportioned to
the permanent school fund of the Commissioners of the Land Office
for the benefit of the common schools.
SECTION 2. This act shall become effective November 1, 2022.
58-2-2766 QD 1/12/2022 6:14:37 PM