Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB527 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SB527 HFLR Page 1
4		-	BOLD FACE denotes Committee Amendments. 1
	3	+	ENGR. S. B. NO. 527 Page 1 1
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28		-
29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	2nd Session of the 58th Legislature (2022)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 527 By: Montgomery and Thompson of
37	30		the Senate
38	31
39	32		and
40	33
41	34		McEntire and Pae of the
42	35		House
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46	39
47	40		[ public finance - Oklahoma Prosperity Act -
48	41		codification - effective date ]
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53	46		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
54	47		SECTION 1. NEW LAW A new sec tion of law to be codified
55	48		in the Oklahoma Statutes as Section 3600 of Title 62, unless there
56	49		is created a duplication in numbering, reads as follows:
57	50		This act shall be known and may be cited as the “Oklahoma
58	51		Prosperity Act”.
59	52		SECTION 2. NEW LAW A new section of law to be codified
60	53		in the Oklahoma Statutes as Section 3601 of Titl e 62, unless there
61	54		is created a duplication in numberi ng, reads as follows:
62	55		A. Implementation of this act shall be subject to the receipt
63	56		of appropriations su fficient to establish the Oklahoma Prosperity
64	57		Act Program, as defined in this section.
	58	+	B. As used in this act:
	59	+	1. “Administrative fund” shall mean the Oklahoma Prosperity Act
	60	+	administrative fund established under this act;
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66		-	SB527 HFLR Page 2
67		-	BOLD FACE denotes Committee Amendments. 1
	62	+	ENGR. S. B. NO. 527 Page 2 1
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92		-	B. As used in this act:
93		-	1. “Administrative fund” shall mean the Oklahoma Prosperity Act
94		-	administrative fund established under this act;
95	87		2. “Contribution rate” means the percentage of the wages of a
96	88		covered employee that is withheld from his or her wages and paid to
97	89		the individual retirement account or individual ret irement annuity
98	90		established for the cove red employee under the Program;
99	91		3. “Covered employee” means any individual who is eighteen (18)
100	92		years of age or older, who is employed by a participating employer
101	93		and who has wages that ar e allocable to the state. For pu rposes of
102	94		the investment, withdrawal, transfer, rollover, or other
103	95		distribution of an individual retirement account or individual
104	96		retirement annuity, the term covered employee also includes the
105	97		beneficiary of a deceased cove red employee;
106	98		4. “Participating employer” means an employer electing to
107	99		participate in the Oklahoma Prosperity Act Program that has not been
108	100		a participating or contributing employer in a retirement plan, an
109	101		automatic enrollment payroll deduction IRA , or a qualified
110	102		retirement plan in compliance with federal law for its employees
111	103		including plans qualified under Section 401(a), 401(k), 40 3(a),
112	104		403(b), 408(k), 408(p), 457(b), or 457(f) of Title 26 of the
113	105		Internal Revenue Code or any deferred compensation plan offered by
114	106		any employer at any time during the preceding two (2) calendar
115	107		years;
	108	+	5. “Employer” means a person or entity engaged in a business,
	109	+	profession, trade, or other enterprise in the state, whether for
	110	+	profit or not-for-profit, that employs one or more individuals in
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117		-	SB527 HFLR Page 3
118		-	BOLD FACE denotes Committee Amendments. 1
	112	+	ENGR. S. B. NO. 527 Page 3 1
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143		-	5. “Employer” means a person or entity engaged in a business,
144		-	profession, trade, or other enterprise in the state, whether for
145		-	profit or not-for-profit, that employs one or more individuals in
146	137		the state; provided, that a federal or state e ntity, agency, or
147	138		instrumentality or any political subdivision thereof, shall not be
148	139		an employer;
149	140		6. “Enrollee” means any covered employee enrolle d in the
150	141		Oklahoma Prosperity Act Program;
151	142		7. “Internal Revenue Code” means the federal Internal Revenue
152	143		Code of 1986, as amended;
153	144		8. “Investment adviser” means either:
154	145		a. an investment adviser registered as such under the
155	146		U.S. Investment Advisers Act of 1940, or
156	147		b. a bank or other institution exempt from registration
157	148		under the U.S. Inves tment Advisers Act of 19 40;
158	149		9. “Investment fund” means each investment portfolio
159	150		established within the trust for investment purposes;
160	151		10. “IRA” means either an individu al retirement account or
161	152		individual retirement annuity established under Section 408 or 408A
162	153		of Title 26 of the Internal Revenue Code;
163	154		11. “Program” means the Oklahoma Prosperity Act Program
164	155		established under this act;
165	156		12. “State” means the State of Okla homa;
166	157		13. “State Treasurer” means the Oklahoma State Treasurer;
	158	+	14. “Trust” means the IRA retirement trust or annuity contract
	159	+	established under Section 7 of this act;
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168		-	SB527 HFLR Page 4
169		-	BOLD FACE denotes Committee Amendments. 1
	161	+	ENGR. S. B. NO. 527 Page 4 1
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194		-	14. “Trust” means the IRA retirement trust or annuity contract
195		-	established under Section 7 of this act;
196	186		15. “Trustee” means the trustee of the trust including an
197	187		insurance company issuing an annuity contract, selected under
198	188		Section 4 of this act; and
199	189		16. “Wages” means compensation within the mean ing of Section
200	190		219(f)(1) of Title 26 of the Internal Revenue Code that is received
201	191		by a covered employee from a participating employer.
202	192		SECTION 3. NEW LAW A new section of law to be codified
203	193		in the Oklahoma Statutes a s Section 3602 of Title 62, unless there
204	194		is created a duplication in numbering, reads as follows:
205	195		The State Treasurer shall have the following powers and duties
206	196		in implementing the provisions of this act:
207	197		1. To design, establish, and operate the Oklahoma P rosperity
208	198		Act Program in accordance with the requirements established in this
209	199		act;
210	200		2. To collect fees to defray the costs of administering th e
211	201		Program;
212	202		3. To enter into contracts necessary or desirable f or the
213	203		establishment and administration of the Prog ram;
214	204		4. To hire, retain, and terminate third-party service providers
215	205		for the Program including, but not limited to, consultants,
216	206		investment managers or advisors, trustee s, custodians, insurance
217	207		companies, record keepers, administrators, actuaries, counsel ,
	208	+	auditors, and other professionals; provided, that each service
	209	+	provider shall be authorized to do business in this state. For
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219		-	SB527 HFLR Page 5
220		-	BOLD FACE denotes Committee Amendments. 1
	211	+	ENGR. S. B. NO. 527 Page 5 1
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245		-	auditors, and other professionals; provided, that each service
246		-	provider shall be authorized to do business in this state. For
247	236		purposes of selecting a third-party service provider, the Office of
248	237		the State Treasurer shall be exempt from the Oklahoma Centra l
249	238		Purchasing Act; provided, that a competitive process shall be
250	239		developed and utilized to select service providers;
251	240		5. To determine the type or types of IRAs to be offer ed;
252	241		6. To employ a program administ rator and any other individuals
253	242		necessary to administer the Program and the administrative fund;
254	243		7. To develop and implement an outreach plan and disseminate
255	244		information regarding the Progra m and retirement and financial
256	245		education in general, to employees , employers, and other
257	246		constituents in the state;
258	247		8. To adopt rules and procedures for the establishment and
259	248		operation of the Program and to take such other actions as necessary
260	249		to operate the Program in accordance with the provisions of this
261	250		act. Any guidelines or procedure s affecting the Program may be
262	251		implemented after reasonable notice to the public and a public
263	252		comment period, in a manner similar to the requirements of the
264	253		Administrative Procedures Act. However, the Ad ministrative
265	254		Procedures Act shall not apply for purp oses of this section; and
266	255		9. If applicable, to establish and maintain the Program by
267	256		contracting with ano ther state, partnering with one or more states
268	257		to create a joint auto-IRA Program, allowing states to participate
	258	+	in the Program, or forming a consort ium with one or more other
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270		-	SB527 HFLR Page 6
271		-	BOLD FACE denotes Committee Amendments. 1
	260	+	ENGR. S. B. NO. 527 Page 6 1
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296		-	in the Program, or forming a consort ium with one or more other
297	285		states in which certain aspects of the Program of each state are
298	286		combined for administrative convenience and efficiency.
299	287		SECTION 4. NEW LAW A new section of law to be codified
300	288		in the Oklahoma Statutes as S ection 3603 of Title 62, unless there
301	289		is created a duplication in numbering, reads as follows:
302	290		A. The trustee and each investment adviser shall be a fiduciary
303	291		with respect to the trust and IRAs establish ed and maintained under
304	292		the Oklahoma Prosperity Act Program.
305	293		B. Each participating employer shall be required to provide
306	294		covered employees with the information as required by the Program.
307	295		No employer acting pursuant to this act shall be considered a
308	296		fiduciary with respect to the trust o r an IRA or have fiduciary
309	297		responsibilities under the act.
310	298		C. Each fiduciary shall discharge its duties with respect to
311	299		the Program solely in the best interests of covered employees and
312	300		with the care, skill, prudence , and diligence under the prevailing
313	301		circumstances that a prudent person acti ng in a similar capacit y and
314	302		familiar with those matters would use in the conduct of an
315	303		enterprise of like character and aims.
316	304		SECTION 5. NEW LAW A new section o f law to be codified
317	305		in the Oklahoma Statutes as Section 3604 of Title 62, unless there
318	306		is created a duplication in numbering, reads as follows:
319	307
320		-	SB527 HFLR Page 7
321		-	BOLD FACE denotes Committee Amendments. 1
	308	+	ENGR. S. B. NO. 527 Page 7 1
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346	333		The Oklahoma Prosperity Act Program shall be designed,
347	334		established, and operated in accordance with the followi ng
348	335		provisions:
349	336		1. Each participating employer may offer to each covered
350	337		employee an opportuni ty to contribute to an IRA established under
351	338		the Program for the benefit of the covered employee through
352	339		withholding from his or her wages. No employer shall be permitted
353	340		to contribute to the Program;
354	341		2. Unless the covered employee elects not to particip ate in the
355	342		Program, he or she may be automatically enrol led in the Program and
356	343		contributions shall be withheld from the wage s of the covered
357	344		employee;
358	345		3. The minimum contribution rate of each enrollee shall be
359	346		three percent (3%); the minimum contributio n rate shall be the
360	347		default contribution rate;
361	348		4. The IRAs shall qualify for favorable federal income tax
362	349		treatment under Sections 408 and 408A of Title 26, as app ropriate,
363	350		of the Internal Revenue Code;
364	351		5. Each participating employer shall deposit withheld
365	352		contributions of the enrollee under the Program with the trustee in
366	353		such manner as is determined by the State Treasurer ; provided, that
367	354		the employer shall delive r the amounts withheld to the trustee
368	355		within thirty (30) business days after the date the a mounts
369	356		otherwise would have been paid to the enrollee;
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371		-	SB527 HFLR Page 8
372		-	BOLD FACE denotes Committee Amendments. 1
	358	+	ENGR. S. B. NO. 527 Page 8 1
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397	383		6. Additional rules and procedures may be adopted in
398	384		conjunction with established IRS regulations for withdra wals,
399	385		distributions, transfers , and rollovers of IRAs and for the
400	386		designation of IRA beneficiaries;
401	387		7. Information regarding the Program shall be made available to
402	388		the public on a website maintained for the Program;
403	389		8. Audited financial reports shall be submitted to the Governor
404	390		and Legislature within two (2) years after the Program is
405	391		established and annually thereafter at the end of each fiscal year;
406	392		9. Each participating employer shall be provided information
407	393		regarding the Program and disclosures incl uding:
408	394		a. a description of the benefits and risk s associated
409	395		with investments offered in t he Program,
410	396		b. instructions about how to obtain addit ional
411	397		information about the Program,
412	398		c. a description of the federal and sta te income tax
413	399		consequences of an IRA, which may consist of or
414	400		include the disclosure statement required to be
415	401		distributed under the Internal Revenue Code and the
416	402		Treasury Regulations thereunder,
417	403		d. a statement that covered employees seeking financial
418	404		advice should contact their own financial advisors,
419	405		that participating employers shall not provi de
420	406		financial advice, and that participating employers are
421	407
422		-	SB527 HFLR Page 9
423		-	BOLD FACE denotes Committee Amendments. 1
	408	+	ENGR. S. B. NO. 527 Page 9 1
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448	433		not liable for decisions covered employees m ake under
449	434		the act,
450	435		e. a statement that the Program is not an emp loyer-
451	436		sponsored retirement plan,
452	437		f. a statement that neither the Program nor the IRA of
453	438		the enrollee established under the Progra m is
454	439		guaranteed by the state,
455	440		g. a statement that neit her a participating employer nor
456	441		the state will monitor or has an obliga tion to monitor
457	442		the eligibility of t he covered employee under the
458	443		Internal Revenue Code to make contributions to an IRA
459	444		or to monitor whether the contribution of the enrollee
460	445		to the IRA established for the enrollee under the
461	446		Program exceeds the maximum pe rmissible IRA
462	447		contribution; it shall be the responsibility of the
463	448		covered employee, and
464	449		h. a statement that neither the state nor the
465	450		participating employer will have any liability with
466	451		respect to any failure of the covered employee to be
467	452		eligible to make IRA contributions or any contribution
468	453		in excess of the maximum IRA contribution;
469	454		10. Any information, forms , or instructions to be furnished to
470	455		covered employees that provide the c overed employee with the
471	456		procedures for:
472	457
473		-	SB527 HFLR Page 10
474		-	BOLD FACE denotes Committee Amendments. 1
	458	+	ENGR. S. B. NO. 527 Page 10 1
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499	483		a. making contributions to the IRA of the covered
500	484		employee established under the Program including a
501	485		description of the minimum contribution rate and the
502	486		right to elect to make no contribution or to change
503	487		the contribution rate under the Program,
504	488		b. making an investment election with respe ct to the IRA
505	489		of the covered employee established under the Program
506	490		including a description of the default investment
507	491		fund, and
508	492		c. making transfers, rollovers, withdrawals, and other
509	493		distributions from the IRA of the covered employee;
510	494		11. Each participating employer shall deliver or facilita te the
511	495		delivery of the information about the Program t o each covered
512	496		employee at the time and in the manner as established by Program
513	497		guidelines; and
514	498		12. The Program shall be designed and operated in a manner that
515	499		will cause it not to be an employee benef it plan within the meaning
516	500		of Section 3(3) of the Empl oyee Retirement Income Security Act of
517	501		1974.
518	502		SECTION 6. NEW LAW A new section of law to be codified
519	503		in the Oklahoma Statutes as Section 3605 of Title 62, unless there
520	504		is created a duplication in numbering, reads as follows:
521	505		There is hereby created in the Office of the Sta te Treasurer a
522	506		fund to be designated as the “Oklahoma Prosperity Act Administrative
523	507
524		-	SB527 HFLR Page 11
525		-	BOLD FACE denotes Committee Amendments. 1
	508	+	ENGR. S. B. NO. 527 Page 11 1
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550	533		Fund”. The fund shall be a continuing fu nd, not subject to fiscal
551	534		year limitations, and shall consist of monies appropriated for th e
552	535		administration of the Oklahoma Prosper ity Act Program, all
553	536		administrative fees collected, and any other monies designated to
554	537		the fund by law. All monies accruing t o the credit of the fund are
555	538		hereby appropriated and may be budgeted and expended by the St ate
556	539		Treasurer for expenses related to t he administration and support of
557	540		the Program. Expenditu res from the fund shall be made upon warrants
558	541		issued by the State Trea surer against claims filed as prescr ibed by
559	542		law with the Director of the Office of Manageme nt and Enterprise
560	543		Services for approval and payment.
561	544		SECTION 7. NEW LAW A new section of law to be codified
562	545		in the Oklahoma Statutes as Sectio n 3606 of Title 62, unless there
563	546		is created a duplication in numbering, reads as follows:
564	547		A. There is hereby created as an instr umentality of the state a
565	548		trust to be known as the “Oklahoma Prosperity Act Trust ”.
566	549		B. The State Treasurer may appoint qualifi ed financial
567	550		institutions to act as trustee or custodian of the IRA accounts.
568	551		C. The assets of IRAs established for covered empl oyees shall
569	552		be allocated to the trust and combined for in vestment purposes.
570	553		Trust assets shall be managed and administered for the purposes of
571	554		providing services to enrollees and defraying reasonable
572	555		administrative expenses of the Oklahoma Prosperity Ac t Program.
573	556
574		-	SB527 HFLR Page 12
575		-	BOLD FACE denotes Committee Amendments. 1
	557	+	ENGR. S. B. NO. 527 Page 12 1
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600	582		D. There shall be established within th e trust one or more
601	583		investment funds. The first One Thousand Dollars ($1,000. 00) in
602	584		contributions made by, or on behalf of, an enrollee may be deposited
603	585		into a default capital preservation investment fund and the enrollee
604	586		may be provided an account revoca tion period during which, if the
605	587		enrollee chooses to end participation in the Program, the enrollee
606	588		may withdraw the deposited amounts from the default investmen t
607	589		without penalty.
608	590		E. Enrollees may allocate assets of their IRAs among investment
609	591		funds and a default investment fund may be designated for the IRAs
610	592		of enrollees who do not select an investment fund.
611	593		F. The State Treasurer may retain inv estment advisers to select
612	594		and manage the investments of investment funds on a discretionary
613	595		basis, subject to ongoing review and oversight.
614	596		G. The assets of the trust shall be maintained, invested, and
615	597		expended solely for the purposes of the trust and no property rights
616	598		therein shall exist in favor of the state or any participating
617	599		employer. Trust asset s shall not be transferred or used by the
618	600		state for any purposes other than the purpose s of the trust or
619	601		funding the expenses of operating the Program.
620	602		H. The assets of the trust shall be held separate an d apart
621	603		from the assets of the state.
622	604
623		-	SB527 HFLR Page 13
624		-	BOLD FACE denotes Committee Amendments. 1
	605	+	ENGR. S. B. NO. 527 Page 13 1
625	606		2
626	607		3
627	608		4
628	609		5
629	610		6
630	611		7
631	612		8
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633	614		10
634	615		11
635	616		12
636	617		13
637	618		14
638	619		15
639	620		16
640	621		17
641	622		18
642	623		19
643	624		20
644	625		21
645	626		22
646	627		23
647	628		24
648	629
649	630		I. There shall be no liability for the state, the Program, the
650	631		State Treasurer, or any employer for investment losses incurred by
651	632		any covered employee as a result of partici pating in the Program.
652	633		J. The trust and each investment fund shall not be subject to
653	634		income tax of this state.
654	635		K. If the Program is established by using the IRA Program of
655	636		another state, a joint Program , or a consortium with one or more
656	637		other states, then the trust may be established by adoptin g the
657	638		trust established under the Program of the other state or states or
658	639		as a master trust or similar arrangement with the other state or
659	640		states; provided, that the trust, mas ter trust, or similar
660	641		arrangement satisfies the requirements of this section.
661	642		SECTION 8. NEW LAW A new sect ion of law to be codified
662	643		in the Oklahoma Statutes as Section 3607 of Title 62, unless ther e
663	644		is created a duplication in numb ering, reads as follows:
664	645		The Oklahoma Prosperity Act Program shall be established so that
665	646		enrollees may begin making contributions within twenty-four (24)
666	647		months of the effective date of this act; provided, that the State
667	648		Treasurer may extend the period within which the Program is
668	649		implemented by twelve (12) months. The St ate Treasurer may
669	650		establish a pilot program for certain participating employers, may
670	651		provide for a staggered rollout of the Program so that participating
671	652		employers may offer the Program to covered employees in stages based
672	653		on employee headcount o r other criteria, or both.
673	654
674		-	SB527 HFLR Page 14
675		-	BOLD FACE denotes Committee Amendments. 1
	655	+	ENGR. S. B. NO. 527 Page 14 1
676	656		2
677	657		3
678	658		4
679	659		5
680	660		6
681	661		7
682	662		8
683	663		9
684	664		10
685	665		11
686	666		12
687	667		13
688	668		14
689	669		15
690	670		16
691	671		17
692	672		18
693	673		19
694	674		20
695	675		21
696	676		22
697	677		23
698	678		24
699	679
700	680		SECTION 9. AMENDATORY 75 O.S. 2021, Section 250.4, is
701	681		amended to read as follows:
702	682		Section 250.4. A. 1. Except as is otherwise specifically
703	683		provided in this subsection, each agency is required to comply with
704	684		Article I of the Administrati ve Procedures Act.
705	685		2. The Corporation Commission shall be required to comply with
706	686		the provisions of Articl e I of the Administrative Procedures Act
707	687		except for subsections A, B, C, and E of Section 303 of this title
708	688		and Section 306 of this title. To the ex tent of any conflict or
709	689		inconsistency with Article I of the Administr ative Procedures Act,
710	690		pursuant to Section 35 of Article IX of the Oklahoma Constitution,
711	691		it is expressly declared that Article I of the Administrative
712	692		Procedures Act is an amendment to an d alteration of Sections 18
713	693		through 34 of Article IX of the Oklahoma Constitution.
714	694		3. The Oklahoma Military Department of the State of Oklahoma
715	695		shall be exempt from the provisions of Article I of the
716	696		Administrative Procedures Act to the extent it exercise s its
717	697		responsibility for military affairs. Military publications, as
718	698		defined in Section 801 o f Title 44 of the Oklahoma Statutes, sh all
719	699		be exempt from the provisions of Article I and Article II o f the
720	700		Administrative Procedures Act, except as provided in S ection 251 of
721	701		this title.
722	702		4. The Oklahoma Ordnance Works Authority, the Northeast
723	703		Oklahoma Public Facilities Authority, the Oklahoma Office of
724	704
725		-	SB527 HFLR Page 15
726		-	BOLD FACE denotes Committee Amendments. 1
	705	+	ENGR. S. B. NO. 527 Page 15 1
727	706		2
728	707		3
729	708		4
730	709		5
731	710		6
732	711		7
733	712		8
734	713		9
735	714		10
736	715		11
737	716		12
738	717		13
739	718		14
740	719		15
741	720		16
742	721		17
743	722		18
744	723		19
745	724		20
746	725		21
747	726		22
748	727		23
749	728		24
750	729
751	730		Homeland Security, and the Board of Trustees of the Oklahoma College
752	731		Savings Plan shall be exempt from Article I of the Administrative
753	732		Procedures Act.
754	733		5. The Transportation Commission and the Department of
755	734		Transportation shall be exempt from Art icle I of the Administrative
756	735		Procedures Act to the extent they exercise their authority in
757	736		adopting standard specification s, special provisions, plans, design
758	737		standards, testing procedures, federally imposed requireme nts and
759	738		generally recognized standards, project planning and programming,
760	739		and the operation and contr ol of the State Highway System.
761	740		6. The Oklahoma State Regen ts for Higher Education shall be
762	741		exempt from Article I of the Administrative Procedures Act wit h
763	742		respect to:
764	743		a. prescribing standards of higher education,
765	744		b. prescribing functions and courses of s tudy in each
766	745		institution to conform to the standards,
767	746		c. granting of degrees and other forms of academic
768	747		recognition for completion of the prescribed cours es,
769	748		d. allocation of state-appropriated funds, and
770	749		e. fees within the limits prescribed by the Legisl ature.
771	750		7. Institutional governing boards within The Oklahom a State
772	751		System of Higher Education shall be exempt from Article I of the
773	752		Administrative Procedu res Act.
774	753
775		-	SB527 HFLR Page 16
776		-	BOLD FACE denotes Committee Amendments. 1
	754	+	ENGR. S. B. NO. 527 Page 16 1
777	755		2
778	756		3
779	757		4
780	758		5
781	759		6
782	760		7
783	761		8
784	762		9
785	763		10
786	764		11
787	765		12
788	766		13
789	767		14
790	768		15
791	769		16
792	770		17
793	771		18
794	772		19
795	773		20
796	774		21
797	775		22
798	776		23
799	777		24
800	778
801	779		8. a. The Commissioner of Publ ic Safety shall be exempt from
802	780		Sections 303.1, 304, 307.1, 308 , and 308.1 of this
803	781		title insofar as it is necessary to prom ulgate rules
804	782		pursuant to the Oklahoma Motor Carrier Safety and
805	783		Hazardous Materials Transportatio n Act, to maintain a
806	784		current incorporation of federal motor carrier safety
807	785		and hazardous material re gulations, or pursuant to
808	786		Chapter 6 of Title 47 of the Oklah oma Statutes, to
809	787		maintain a current incorporation of federal commercial
810	788		driver license regulatio ns, for which the Commissioner
811	789		has no discretion when the state is mandated to
812	790		promulgate rules iden tical to federal rules and
813	791		regulations.
814	792		b. Such rules may be adopted by the Commissioner and
815	793		shall be deemed promulgated twenty (20) days after
816	794		notice of adoption is published in “The Oklahoma
817	795		Register”. Such publication need not set forth the
818	796		full text of the rule but may incorporate the federal
819	797		rules and regulations by reference.
820	798		c. Such copies of promulgated rules shall be filed with
821	799		the Secretary as requ ired by Section 251 of this
822	800		title.
823	801		d. For any rules for which the Commissioner has
824	802		discretion to allow variances, tolerances, or
825	803
826		-	SB527 HFLR Page 17
827		-	BOLD FACE denotes Committee Amendments. 1
	804	+	ENGR. S. B. NO. 527 Page 17 1
828	805		2
829	806		3
830	807		4
831	808		5
832	809		6
833	810		7
834	811		8
835	812		9
836	813		10
837	814		11
838	815		12
839	816		13
840	817		14
841	818		15
842	819		16
843	820		17
844	821		18
845	822		19
846	823		20
847	824		21
848	825		22
849	826		23
850	827		24
851	828
852	829		modifications from the federal rules and regulations,
853	830		the Commissioner shall fully comply with Article I of
854	831		the Administrative P rocedures Act.
855	832		9. The Council on Judic ial Complaints shall be exempt from
856	833		Section 306 of Article I of the Administrative Procedures Act, with
857	834		respect to review of the validity or applicability of a rule by an
858	835		action for declaratory judgment, or any other relief based upon the
859	836		validity or applicability of a rule, in the district court or by an
860	837		appellate court. A party aggrieved by the validity or applicability
861	838		of a rule made by the Council on Judicial Complaints may petition
862	839		the Court on the Judiciary to r eview the rules and issue opinions
863	840		based upon them.
864	841		10. The Department of Corrections, State Board of Corrections,
865	842		county sheriffs, and managers of city jails shall be exempt from
866	843		Article I of the Administrative Procedures Act with respect to:
867	844		a. prescribing internal management procedures for t he
868	845		management of the state prisons, county jails, and
869	846		city jails and for the management, supervision , and
870	847		control of all incarcerated prisoners, and
871	848		b. prescribing internal management procedures for the
872	849		management of the probation and parole unit of the
873	850		Department of Corrections and for the supervision of
874	851		probationers and parolees.
875	852
876		-	SB527 HFLR Page 18
877		-	BOLD FACE denotes Committee Amendments. 1
	853	+	ENGR. S. B. NO. 527 Page 18 1
878	854		2
879	855		3
880	856		4
881	857		5
882	858		6
883	859		7
884	860		8
885	861		9
886	862		10
887	863		11
888	864		12
889	865		13
890	866		14
891	867		15
892	868		16
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894	870		18
895	871		19
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897	873		21
898	874		22
899	875		23
900	876		24
901	877
902	878		11. The State Board of Education shall b e exempt from Article I
903	879		of the Administrative Procedures Act with respect to prescribing
904	880		subject matter standards as provided for in Sectio n 11-103.6a of
905	881		Title 70 of the Oklahoma Statutes.
906	882		B. As specified, the following agencies or classes of agency
907	883		activities are not required to comply with the provisions of Article
908	884		II of the Administrative Procedures Act:
909	885		1. The Oklahoma Tax Commission , except as provided in
910	886		subsection G of Section 1140 of Title 47 of the Oklahoma Statutes;
911	887		2. The Commission for Human Services;
912	888		3. The Oklahoma Ordnance Works Authority;
913	889		4. The Corporation Commission;
914	890		5. The Pardon and Parole Board;
915	891		6. The Midwestern Oklahoma Development Auth ority;
916	892		7. The Grand River Dam Authority;
917	893		8. The Northeast Oklaho ma Public Facilities Authority;
918	894		9. The Council on Judicial Complaint s;
919	895		10. The Board of Trustees of the Oklahoma College Savings Plan;
920	896		11. The supervisory or administrative agency of any penal,
921	897		mental, medical, or eleemosynary institution, only with resp ect to
922	898		the institutional supervision, custody, control, care, or treatment
923	899		of inmates, prisoners , or patients therein; provided, that the
924	900		provisions of Article II shall apply to and govern all
925	901
926		-	SB527 HFLR Page 19
927		-	BOLD FACE denotes Committee Amendments. 1
	902	+	ENGR. S. B. NO. 527 Page 19 1
928	903		2
929	904		3
930	905		4
931	906		5
932	907		6
933	908		7
934	909		8
935	910		9
936	911		10
937	912		11
938	913		12
939	914		13
940	915		14
941	916		15
942	917		16
943	918		17
944	919		18
945	920		19
946	921		20
947	922		21
948	923		22
949	924		23
950	925		24
951	926
952	927		administrative actions of the Oklahoma Alcohol Prevention, Traini ng,
953	928		Treatment and Rehabilitation Authority;
954	929		12. The Board of Regents or employees of any university,
955	930		college, or other institution of higher learning;
956	931		13. The Oklahoma Horse Racing Comm ission, its employees , or
957	932		agents only with respect to hearing and noti ce requirements on the
958	933		following classes of violations which are an i mminent peril to the
959	934		public health, safety , and welfare:
960	935		a. any rule regarding the running of a race,
961	936		b. any violation of medication laws and rules,
962	937		c. any suspension or revocation of an o ccupation license
963	938		by any racing jurisdiction recognized by the
964	939		Commission,
965	940		d. any assault or other destructive acts within
966	941		Commission-licensed premises,
967	942		e. any violation of prohibited d evices, laws, and rules,
968	943		or
969	944		f. any filing of false information;
970	945		14. The Commissioner of Public Safety only with respect to
971	946		driver license hearings and hearings conducted pursuant to the
972	947		provisions of Section 2 -115 of Title 47 of the Oklahoma Statutes;
973	948		15. The Administrator of the Depart ment of Securities only with
974	949		respect to hearings conducted pursuant to provisions of the Oklahoma
975	950		Take-over Disclosure Act of 1985;
976	951
977		-	SB527 HFLR Page 20
978		-	BOLD FACE denotes Committee Amendments. 1
	952	+	ENGR. S. B. NO. 527 Page 20 1
979	953		2
980	954		3
981	955		4
982	956		5
983	957		6
984	958		7
985	959		8
986	960		9
987	961		10
988	962		11
989	963		12
990	964		13
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992	966		15
993	967		16
994	968		17
995	969		18
996	970		19
997	971		20
998	972		21
999	973		22
1000	974		23
1001	975		24
1002	976
1003	977		16. Hearings conducted by a public agency pursuant to Section
1004	978		962 of Title 47 of the Oklah oma Statutes;
1005	979		17. The Oklahoma Military Department of the State of Oklahoma ;
1006	980		18. The University Hospitals Authority, including all hospitals
1007	981		or other institutions o perated by the University Hospitals
1008	982		Authority;
1009	983		19. The Oklahoma Health Care Authority Boa rd and the
1010	984		Administrator of the Oklahoma Health Care Autho rity; and
1011	985		20. The Oklahoma Office o f Homeland Security; and
1012	986		21. The State Treasurer with respect to the ad option of rules
1013	987		and procedures for the implementation and operation of the Oklahoma
1014	988		Prosperity Act pursuant to Section 1 of this act .
1015	989		SECTION 10. This act shall become effective November 1, 2022.
	990	+	Passed the Senate the 24th day of March, 2022.
1016	991
1017		-	COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND
1018		-	PENSIONS, dated 04/12/2022 - DO PASS, As Amended.
	992	+
	993	+
	994	+	Presiding Officer of the Senate
	995	+
	996	+
	997	+	Passed the House of Representatives the ____ day of __________,
	998	+	2022.
	999	+
	1000	+
	1001	+
	1002	+	Presiding Officer of the House
	1003	+	of Representatives
	1004	+