Req. No. 637 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 1st Session of the 59th Legislature (2023) SENATE BILL 612 By: Howard AS INTRODUCED An Act relating to the Oklahoma Lottery ; amending 3A O.S. 2021, Sections 712, 713, as amended by Section 1, Chapter 359, O.S.L. 2022, 724, and 733 (3A O.S. Supp. 2022, Section 713) , which relate to the Oklahoma Lottery Commission, prize claims, and the board of trustees; expanding required background checks for certain applicants; requiring annual background checks for Commission employees; deleting Commission requirement to pay for certain investigations and contract with the Oklahoma State Bureau of Investigation; deleting r equirement to submit certain report; deleting requirement to display certain certificate; modifying certain information required for submission ; modifying required date for submission of certain information; modifying threshold for certain information required to claim prize; modifying information required to claim certain prize; amending 51 O.S. 2021, Section 24A.5, which relates to the Oklahoma Open Records Act; providing exception; repealing 3A O.S. 2021, Sections 706 and 734, which relate to Lottery Retailer Advisory Board and Oklahoma Lottery Commission Legislative Oversight Committee; updating statutory reference; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 3A O.S. 2021, Section 712, is amended to read as follows: Req. No. 637 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 Section 712. A. The executive director of the Okla homa Lottery Commission, with the approval of the board of trustees, shall employ such personnel as may be necessary to carry out the provi sions of this act and shall set the comp ensation and terms of comp ensation of such employees. All offices, positions , and personnel of the Oklahoma Lottery Commission shall be in the unclassified service. B. No employee of the Commission shall have a financial interest in any vendor doing busi ness or proposing to do bu siness with the Commission. C. No employee of the Commission shall participate in any decision involving a retailer with whom the employee has a financial interest. D. No employee of the Commission who leaves the employment of the Commission may represent any vendor or lottery retailer before the Commission for a period of two (2) years following termination of employment with the Commission. E. A background investig ation shall be conducte d on each applicant who has reached the final selection process pr ior to employment by the Commission at the level of division director and above and at any level within any division of security and as otherwise required by the board of trustees of the Oklahoma Lottery Commission. The Commission shall pay for the actual cost of the investigations and shall contract with the Oklahoma State Bureau of Investigation for the performance of the investigations and on every Req. No. 637 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 employee of the Commission for each calendar year . The results of a background investigation shall not be considered a record open to the public pursuant t o the Oklahoma Open Records Act. F. No person who has been convicted of any felony or a misdemeanor involving illeg al gambling or involving moral turpitude shall be employed by t he Commission, nor shall the Commission employ a person who is awaiting sente ncing on a plea of guilt or nolo contendere to such a felony or misdemeanor . G. The Commission shall bond Commission employees with access to Commission funds or lottery revenue in an amount specified b y the board and may bond other employees as deemed ne cessary. SECTION 2. AMENDATORY 3A O.S. 2021, Section 713, as amended by Section 1, Chapter 359, O.S.L. 2022 (3A O.S. Supp. 2022, Section 713), is amended to read as follows: Section 713. A. All gross proceeds shall be the property of the Oklahoma Lottery Commission . From its gross proceeds, the Commission shall pay the operating expenses of the Commission. At least forty-five percent (45%) of gross proceeds shall be made available as prize money. However, the provisi ons of this subsection shall be deemed not to create any lien, en titlement, cause of action, or other private right, and any rights of holders of tickets or shares shall be d etermined by the Commission in setting the terms of its lottery or lotteries. Req. No. 637 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 B. The Oklahoma Lottery Commission shall submit a written report of its findings and any recommendations regarding the impact of removing the requirement that net proceeds shall equal at least thirty-five percent (35%) of the gross proceeds. The report shall be submitted to the Governor, the Speaker of the Oklahoma House of Representatives and the President Pro Tempore of the Oklahoma State Senate not later than October 1, 2020, and annually thereafter. C. There is hereby created in the State Treasury a fund to be designated the “Oklahoma Education Lottery Trust Fund ”. Except as otherwise provided in subsections H G and I H of this section, on or before the fifteenth day of each ca lendar quarter, the Commission shall transfer to the State Treasurer, for credit to the Oklahoma Education Lottery Trust Fund, the amount of al l net proceeds accruing during the preceding calendar quarter. Expenditures from the fund shall be made upon war rants issued by the State Treasurer against claims filed as prescribed by law wi th the Director of the Office of Management and Enterprise Serv ices for approval and payment. D. C. Upon their deposit into the State Treasury, any monies representing a deposit of net proceeds shall then become the unencumbered property of this state, and n either the Commission nor the board of trustees shall have the power to agree or undertake otherwise. The monies shall be invested by the State Treasurer in accordance with state investment practices. All earnings Req. No. 637 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 attributable to such investments shall l ikewise be the unencumbered property of the state and shall acc rue to the credit of the fund provided for in subsection C B of this section. 1. The first Sixty-five Million Dollars ($65,000,000.00) of monies contributed annually to the Oklahoma Education Lottery Trust Fund shall only be appropriated as follows : a. forty-five percent (45%) for the following: (1) kindergarten through twelfth grade public education, including but not limi ted to compensation and benefits for public school teachers and support employees, and (2) early childhood development programs, which shall include but not be limited to costs associated with prekindergarten and full -day kindergarten programs, b. forty-five percent (45%) for the following: (1) tuition grants, loans and sc holarships to citizens of this state to enable such citizens to attend colleges and universities located within this state, regardless of whether such colleges and universities are owned o r operated by the Oklahoma State Regents for Higher Education, or to attend institutions operated under the authority of the Oklahoma Department of Career Req. No. 637 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 and Technology Education; provided, such tuition grants, loans and scholarships shall not be made to a citizen of this state to attend a college or university which is no t accredited by the Oklahoma State Regents for Higher Education, (2) construction of educational facilities for elementary school districts, independent school districts, The Oklahoma Sta te System of Higher Education, and career and technology education , (3) capital outlay projects for elementary school districts, independent school districts, The Oklahoma State System of Higher Education, and career and technology education, (4) technology for public elementary school district, independent school district, state higher education, and career and technology education facilities, which shall include but not be limited to costs of providing to teachers at accredited public institutions who tea ch levels kindergarten through twelfth grade, personnel at technology centers under the authority of the Oklahoma State Department of Career and Technology Education, and professors and instructors within The Oklahoma State System of Req. No. 637 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Higher Education, the necessary training in the use and application of computers a nd advanced electronic instructional technology to implement interactive learning environments in the classroom and to access the sta tewide distance learning network and costs associated with repairing and maintaining advanced electronic instructional technology, (5) endowed chairs for professors at institutions of higher education operated by The Oklahoma State System of Higher Educati on, and (6) programs and personnel of the Oklahoma School for the Deaf and the Oklahoma School for the Blind, c. five percent (5%) to the School Consolidation and Assistance Fund. When the total amount in the School Consolidation and Assistance Fund from all sources equals Five Million Dollars ($5,000,0 00.00), all monies appropriated pursuant to this subparagraph which would otherwise be deposited in the School Consolidation and Assistance Fund in excess of Five Million Dollars ($5,000,000.00) shall be all ocated by the State Department of Educa tion to public schools based on the audited end-of-year average daily membership in grades 8 through 12 during the preceding Req. No. 637 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 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 year for the purpose of purchasing technology equipment. If at any time the total am ount in the School Consolidation and As sistance Fund drops below Five Million Dollars ($5,000,000.00), the monies appropriated pursuant to this subparagraph shall be deposited in the School Consolidation and Assistance Fund until the Fund again reaches Fiv e Million Dollars ($5,000,000.00), and d. five percent (5%) to the Teachers’ Retirement System Dedicated Revenue Revolving Fund. In no instance shall the annual maximum percentage for administrative costs, not including marketing and advertising costs, funds set aside for prizes, commissions paid to retailers, contract fees paid to gaming system vendors and instant ticket providers or emergency-related capital expenses, exceed thre e percent (3%) of sales. 2. The remaining portion of lottery annual net proc eeds deposited to the Oklahoma Education Lottery Trust Fund that exceeds Sixty-five Million Dollars ($65,000,000.00) shall be deposited to the credit of the Teacher Empowerment Revolving Fund created in Section 2 of this act. E. D. The Legislature shall appropriate funds from the Oklahoma Education Lottery Trust Fund only for the purposes spe cified in subsection D C of this section. Even when funds from the trust fund Req. No. 637 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 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 are used for these purposes, the Legislature shall not use funds from the trust fund to supplant or replace other state fun ds supporting common education, higher education, or c areer and technology education. F. E. In order to ensure that the funds from the trust fund are used to enhance and not supplant funding for education, the State Board of Equalization shall examine and investigate appropriations from the trust fund each y ear. At the meeting of the State Board of Equalization held within five (5) days after the monthly apportionment in February of each year, the State Board of Equalization shall issue a finding and repo rt which shall state whether appropriations from the t rust fund were used to enhance or supplant education funding. If the State Board of Equalization finds that education funding was supplanted by funds from the trust fund, the Board shall specify the am ount by which education funding was supplanted. In this event, the Legislature shall not make any appropriations for the ensuing fiscal year until an appropriation in that amount is made to replenish the trust fund. G. F. Except as otherwise provided by this subsection, no deficiency in the Oklahoma Educati on Lottery Trust Fund shall be replenished by reducing any nonlottery funds including, specifically but without limitation, the General Revenue Fund, the Constitutiona l Reserve Fund, or the Education Ref orm Revolving Fund of the State Department of Educati on. No program or project started specifically Req. No. 637 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 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 lottery proceeds shall be continued from the General Revenue Fund, the Constitutional Reserve Fund, or the Education Reform Revolving Fund of the State Department of Education. Such programs must be adjusted or discontinued according to available lottery proceeds unless the Legislature by general law establishes eligibility requirements and appropriates specific fund s therefor. No surplus in the Oklaho ma Education Lottery Trust Fund shall be reduced or transferred to correct any nonlottery deficiencies in sums available for general appropriations. The provisions of this subsection shall not apply to bonds or other o bligations issued pursuant to or to the repayment of bonds or other obligations issued pursuant to the Oklahoma Higher Education Promise of Excellence Act of 2005. H. G. There is hereby created in the State Treasury a revolving fund to be designated the “Oklahoma Education Lottery Revolving Fund”. The fund shall be a continuing fund, not sub ject to fiscal year limitations, and shall consist of all monies received by the Commission. The Commission shall make payments of net proceeds from the fund to the Oklahoma Education Lottery Trust Fund on or before the fifteenth day of each calendar quar ter as provided in subsection C B of this section. All monies accruing to the credit of the Oklahoma Education Lottery Revolving Fund are hereby appropriated and may be budgeted and expended for the paymen t of net proceeds, prizes, commissions to retailers, administrative expenses and all Req. No. 637 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 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 expenses arising out of the operation of the education lottery, subject to the limitations provided in the Oklahoma Education Lottery Act. Expenditures from the fun d 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 Services for approval and payment. The monies in the fund shall be invested by the State Trea surer in accordance with state investment practices. All earnings attributable to such investments shall likewise accrue to the credit of the fund. I. H. When appropriations from the Oklahoma Education Lottery Trust Fund are made to common education purs uant to the provisions of subparagraph a of paragraph 1 of subsection D C of this section, the appropriations shall be made available on a monthly basis. In addition to the provisions of subsections C B and D C of this section, the following process shall be used to ensure that the appropriations are made available to common education in a timely manner: 1. Beginning in July of the fiscal year in which appropriations are made to common education from the Oklahoma Education Lottery Trust Fund, the Commissio n, on or before the ninth day of each month, shall transfer to the State Treasurer, for credit to the Oklahoma Education Lottery Trust Fund, the amount of net proceed s accruing during the preceding month equal to the amount of total Req. No. 637 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 monthly collections due to common education as required by subparagraph a of paragraph 1 of subsection D C of this section; 2. The Director of the Office of Management and Enterprise Services shall allocate the transfers provided for in paragraph 1 of this subsection to the State Department of Education on a monthly basis, not to exceed one-twelfth (1/12) of the annual apportionment for the fiscal year; and 3. The total amount of transfers to the Oklahoma Education Lottery Trust Fund of net lottery proceeds made pursuant to this subsection shall not exceed the total appropriations made to common education from the Oklahoma Education Lottery Trust Fund for the specific fiscal year. J. I. When appropriations from the Oklahoma Education Lottery Trust Fund are made to The Oklahoma Sta te System of Higher Education, the appropriations shall be made available to the System on a monthly basis. In addition to the provisions of subsections C B and D C of this section, the following process shall be used to ensure that the appropriations are mad e available to The Oklahoma State System of Higher Education i n a timely manner: 1. Beginning in July of the fiscal year in which appropriations are made to The Oklahoma State System of Higher Education from the Oklahoma Education Lottery Trust Fund, the Commission, on or before the ninth day of each month, shall tr ansfer to the State Treasurer, for credit to the Oklahoma Education Lottery Trust Fund, the amount Req. No. 637 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 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 net proceeds accruing during the preceding month equal to the amount of total monthly collec tions due to the Oklahoma State Regents for Higher Education a s required by subparagraph b of paragraph 1 of subsection D C of this section; 2. The Director of the Office of Management and Enterprise Services shall allocate the transfers provided for in paragraph 1 of this subsection to the Oklahoma State Regents for Higher Education on a monthly basis, not to exceed one-twelfth (1/12) of the annual apportionment for the fiscal year; and 3. The total amount of transfers to the Oklahoma Education Lottery Trust Fund of net lottery proceeds made pursuant to this subsection shall not exceed the total appropriations made to The Oklahoma State System for Higher Education from the Oklahoma Education Lottery Trust Fund for the specific fiscal year. SECTION 3. AMENDATORY 3A O.S. 2021, Section 724, is amended to read as follows: Section 724. A. Proceeds of any lottery prize shall be subject to the Oklahoma state income tax. B. Attachments, garnishment s, or executions authorized and issued pursuant to law shall be withheld if timely served upon the Oklahoma Lottery Commission. Th is subsection shall not apply to payment of prizes by a retailer. C. The Commission shall adopt policies and procedures to establish a system of verifying the validity of tick ets or shares Req. No. 637 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 claimed to win prizes and to effect payment of the prizes, except that: 1. No prize, any portion of a prize, or any right of any person to a prize awarded shall be assignable. Any prize or any portion of a prize remaining unpaid at the deat h of a prize winner shall be paid to the estate of the deceased prize winner or to the trustee of a trust established by the deceased prize winner as settlor if a copy of the trust document or instrument h as been filed with the Commission along with a nota rized letter of direction from the settlor and no written notice of revocation h as been received by the Commission prior to the death of the settlor. Following the death of a settlor and prior to any paym ent to a successor trustee, the Commission shall obtain from the trustee a written agreement to indemnify and hold the Commission h armless with respect to any claims that may be asserted against the Commission arising from payment to or through the trust. Notwithstanding any other provisions of this secti on, any person, pursuant to an appropriate judicial order, shall be paid the pri ze to which a winner is entitled; 2. No prize shall be paid arising from claimed tickets that are: a. stolen, counterfeit, a ltered, fraudulent, unissued, produced or issued in error, unreadable, not received, Req. No. 637 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 or not recorded by the Commission within appli cable deadlines, b. lacking in captions that conform and agree with the play symbols as appropriate to the particular lottery game involved, or c. not in compliance with such a dditional public or confidential validation and security tests of the Commission appropriate to the particular lottery game involved; 3. No particular prize in any lottery game shall be paid more than once, and in the event of a determination that more th an one claimant is entitled to a particular prize, the sole remedy of the claimants is the award to each of them of an equal share in the prize; 4. A holder of a winning cash ticket or share from a lotter y game shall claim a cash prize within one hundred eighty (180) days, or for a multistate or multisovereign lottery game within one hundred eighty (180) days, after the drawing in which the cash prize was won. In any Oklahoma lottery game in which the pla yer may determine instantly if the player has won o r lost, the player shall claim a cash prize within ninety (90) days, or for a mu ltistate lottery game within one hundred eighty (180) days, after the end of the lottery game. If a valid claim is not made for a cash prize Req. No. 637 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 within the applicable period, the cash prize shall constitute an unclaimed prize for purposes of the Oklahoma Educ ation Lottery Act; 5. Any person or persons claiming a lottery prize exceeding Six Hundred Dollars ($600.00) shall provide t he Commission with their name, address, social security number or tax identification number, and sufficient valid identification as proof of the same prior to payment of the prize by the Commission. This information shall be confidential for purposes of the Oklahoma Open Records Act , except for the person’s first name, city of residence, and prize amount; and 6. Any person or persons claiming a lottery prize exceeding Five Thousand Dollars ($5,000.00) shall provide the Commission with their name, address, social security numb er or tax identification number, proof of social security n umber or tax identification number, and sufficient valid identification prior to payment of the prize by the Commission. This information shall be confiden tial for purposes of the Oklahoma Open Records Act, e xcept for the person ’s first name, city of residence, and prize amount; and 7. Any person or persons claiming a lottery prize exceeding Six Hundred Dollars ($600.00) as a trust shall provide for each pe rson entitled to any portion of the prize their name, address, social security number or tax identification number, proof of social security number or tax identification number, and sufficient valid identification as proof of the same and trust certifications prior Req. No. 637 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 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 payment of the prize by the Commission except that such information specified in this paragraph shall be conf idential and not subject to the provisions of the Oklahoma O pen Records Act. D. No prize shall be paid upon a ticket or sh are purchased or sold in violation of the Oklahoma Education Lottery Act. Any such prize shall constitute an unclaimed prize for pur poses of the Oklahoma Education Lottery Act. E. The Commission is discharged of all liability upon payment of a prize. F. No ticket or share shall be purchased by and no prize shall be paid to any member of the boar d of trustees of the Oklahoma Lottery Commission, any officer or emp loyee of the Commission, or to any spouse, child, brother, sister, or parent residing as a mem ber of the same household in the principal place of residence of any such person. No ticket o r share shall be purchased by and no pr ize shall be paid to any offi cer, employee, agent, or subcon tractor of any vendor or to any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of residence of any such person if the officer, employee , agent, or subcontractor has access to confidential informa tion which may compromise the integrity of the lottery. G. Unclaimed prize money shall not constitute net lottery proceeds. The first Seven Hundred Fifty T housand Dollars ($750,000.00) of unclai med prize money accruing annu ally shall be Req. No. 637 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 transferred to the Department of Mental Health and Substance Abuse Services for the treatment of compulsive gambling disorder and educational programs related to such disorde r. All other unclaimed prize money shall be added to the pool from which future prizes are to be awarded or used for special prize promotions. SECTION 4. AMENDATORY 3A O.S. 2021, Section 733, is amended to read as follows: Section 733. To ensure the financial integrity of the lottery, the Oklahoma Lottery Commission through its board of trustees shall: 1. Submit quarterly and annual reports to the Governor, State Auditor and Inspector, Oklahoma State Bureau of Investigation, and Attorney General, and the oversight committee created by Section 73 4 of this title, disclosing the total lottery revenues, prize disbursements, operating expens es, and administrative expenses of the Commission during the reporting period . The annual report shall additionally describe the organizational structure of the C ommission and summarize the fu nctions performed by each organizational division within the Co mmission; 2. Adopt a system of internal audits; 3. Maintain weekly or more frequent records o f lottery transactions, including the distribution of tickets or sha res to retailers, revenues rec eived, claims for prizes, prizes paid, prizes forfeited, and other financial transactions of the Commission; Req. No. 637 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 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. Contract with a certified public accountant or firm for an annual financial audit of the Commission. The certifi ed public accountant or firm shall have no financial interest in any vendor with whom the Commission is under contract. The certified public accountant or firm shall present an audit rep ort not later than seven (7) months after the end of the fiscal year. The certified public accountant or firm shall evaluate the internal auditing controls in effect during the audit period. The cost of this annual financial audit shall be an operating e xpense of the Commission. The State Auditor and Inspector may at any time conduct an audit of any phase of the operations of the Commission at the expense of th e Commission and shall receive a copy of the annual independent financial audit. A copy of any audit performed by the certified public accountant or firm or the St ate Auditor and Inspector sha ll be transmitted to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives, and the State Auditor and Inspect or, and the cochairs of the oversight committee created in Section 73 4 of this title; 5. Submit to the Office of Management and Enterprise Services and the State Auditor and Inspector by June 30 of each year a copy of the annual operating budget for the C ommission for the next fiscal year. This annual operating budget sha ll be approved by the board and be on such forms as prescribed by the Office of Management and Enterprise Services; and Req. No. 637 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. For informational purposes only, submit Submit to the Office of Management and Enterprise Services on September 1 by October 1 of each year a proposed operating budget for the Commission for the succeeding fiscal year. The budget proposal shall also be accompanied by an estimate of the net proceeds to be deposited in to the Oklahoma Education Lottery Trust Fund during the succeeding fiscal year. The budget estimate shall be on such forms as prescribed by the Office of Manage ment and Enterprise Services. SECTION 5. AMENDATORY 51 O.S. 2021, Sec tion 24A.5, is amended to read as follows: Section 24A.5. All records of public bodies and public officials shall be open to any person for inspection, copying, or mechanical reproduction during regular business hours; provid ed: 1. The Oklahoma Open Reco rds Act, Sections 24A.1 through 24A.30 of this title, does not apply to records specifically required by law to be kept confidential including: a. records protected by a sta te evidentiary privilege such as the attorney -client privilege, the work product immunity from discovery and the identity of informer privileges, b. records of what transpired during meetings of a public body lawfully closed to the public such as executive sessions authorized under the Oklahoma Open Meeting Act, Req. No. 637 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 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. personal information w ithin driver records as defined by the Driver’s Privacy Protection Act, 18 United States Code, Sections 2721 through 2725, d. information in the files of the Board of Medico legal Investigations obtained pursuant to Sections 94 0 and 941 of Title 63 of the O klahoma Statutes that may be hearsay, preliminary unsubstantiated investigation- related findings, or confidential medical information, or e. any test forms, question banks a nd answer keys developed for state licensure examinat ions, but specifically excludi ng test preparation materials or study guides, or f. last names, addresses, social security numbers or tax identification numbers , and proof of identification submitted to the Oklahoma Lottery Commission by persons claiming a lotter y prize; 2. All Social Security numbers i ncluded in a record may be confidential regardless of the person’s status as a public e mployee or private individual and may be redacted or delete d prior to release of the record by the public body; 3. Any reasonably segregable portion of a record contain ing exempt material shall be provided after deletio n of the exempt portions; provided h owever, the Department of Public Safety shall Req. No. 637 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 not be required to assemble for the requesting perso n specific information, in any format, from driving records relating to any person whose name and date of birth or whose d river license number is not furnished by the requesting person. The Oklahoma State Bureau of In vestigation shall not be required to assemble for the requesting person any criminal history records relating to persons whose names, dates of birth, and other identifying information required by t he Oklahoma State Bureau of Investigation pursuant to admin istrative rule are not furnished by the requesting person; 4. Any request for a record which contains individ ual records of persons, and the cost of copying, re producing or certifying each individual record is otherwise prescribed by state law, the cost m ay be assessed for each individual reco rd, or portion thereof requested as prescribed by state law. Otherwise , a public body may charge a fee only for recovery of the reasonable, direct costs of r ecord copying, or mechanical reproduction. Notwithstanding any state or local provision to the co ntrary, in no instance shall the record copying fee exceed twenty -five cents ($0.25) per page for records having the dimensions of eight and one -half (8 1/2) by fourteen (14) inches or smaller, or a maximum of One Dol lar ($1.00) per copied page for a certified copy. However, if the request: a. is solely for commercial purpos e, or Req. No. 637 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 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. would clearly cause excessive disruption o f the essential functions of the pub lic body, then the public body may charge a reasonable fee to recover the direct cost of record se arch and copying; however, publication in a newspaper or broadcast by n ews media for news purposes shall not constitute a resale or use of a record for trade or commercial purpose and charges for providing copies of e lectronic data to the news media for a news purpose shall not exceed the direct cost of making the copy. The fee charged by the Department of Public Safety for a copy in a computerized format of a record of the Department shall not exceed the direct cost of making the copy unless the fee for the record is otherwise set by law. Any public body establishing fees un der this act shall post a written schedule of the f ees at its principal office and with the county clerk. In no case shall a search fee be charged when the release of records is in the public interest, including, but not limited to, release to the news med ia, scholars, authors and taxpayers seeking to determine whether those entrusted with t he affairs of the government are honestly, faithfully, and competently performing their duties as public servants. The fees shall not be used for the purpose of discoura ging requests for information or as obstacles to di sclosure of requested information; Req. No. 637 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 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 land description tract index of all recorded instrum ents concerning real property required to be kept by the county clerk of any county shall be available for ins pection or copying in accordance with the provision s of the Oklahoma Open Records Act; provided, however, the index shall not be copied or mechani cally reproduced for the purpose of sal e of the information; 6. A public body must provide prompt, reasonable access to its records but may establish reasonable procedures which protect the integrity and organization of its records and to prevent excessiv e disruptions of its essential function s. A delay in providing access to records shall be limited solely to t he time required for preparing the requested docume nts and the avoidance of excessive disruptions of the public body’s essential functions. In no event may production of a current requ est for records be unreasonably delayed until after completion of a pri or records request that will take substantially lon ger than the current request. Any p ublic body which makes the requested records available on t he Internet shall meet the obligation o f providing prompt, reasonable access to its records as required by thi s paragraph; and 7. A public body shall designate certain persons who are authorized to release records of the public body for inspection, copying, or mechanical reproduction. At leas t one person shall be available at all times to release records during the regular business hours of the public body. Req. No. 637 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 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 6. REPEALER 3A O.S. 2021, Sections 706 and 734, are hereby repealed. SECTION 7. This act shall become effective November 1, 2023. 59-1-637 QD 1/17/2023 7:45:54 PM