Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB612 Compare Versions

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3-
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5-An Act
6-ENROLLED SENATE
7-BILL NO. 612 By: Howard of the Senate
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28+ENGROSSED HOUSE AMENDME NT
29+ TO
30+ENGROSSED SENATE BILL NO . 612 By: Howard of the Senate
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932 and
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1134 Osburn of the House
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1540 An Act relating to the Oklahoma Lottery ; amending 3A
41+O.S. 2021, Sections 712, 713, as amended by Section
42+1, Chapter 359, O.S.L. 2022, 724, and 733 (3A O.S.
43+Supp. 2022, Section 713), which relate to the
44+Oklahoma Lottery Commission, prize claims, and the
45+board of trustees; expanding required background
46+checks for certain applicants; requiring annual
47+background checks for Commission employees; deleting
48+Commission requirement to pay for certain
49+investigations and contract with the Oklahoma State
50+Bureau of Investigation; deleting r equirement to
51+submit certain report; deleting requirement to
52+display certain certificate; modifying certain
53+information required for submission; modifying
54+required date for submission of certain information;
55+modifying threshold for certain information required
56+to claim prize; modifying information required to
57+claim certain prize; amending 51 O.S. 2021, Section
58+24A.5, which relates to the Ok lahoma Open Records
59+Act; providing excepti on; repealing 3A O.S. 2021,
60+Sections 706 and 734, which relate to Lottery
61+Retailer Advisory Board and Oklahoma Lottery
62+Commission Legislative Oversight Committee; updating
63+statutory reference; and providing an effective date.
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68+AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
69+and insert:
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100+"An Act relating to the Oklahoma Lottery; amending 3A
16101 O.S. 2021, Sections 712, 713, as amended by Section
17102 1, Chapter 359, O.S.L. 2022, 724, and 733 (3A O.S.
18103 Supp. 2022, Section 713), which relate to the
19104 Oklahoma Lottery Commission; expanding required
20105 background checks for certain applicants; requiring
21106 annual background checks for Commission employees;
22107 deleting Commission requirement to pay for certain
23108 investigations and contract with the Oklahoma State
24109 Bureau of Investigation; deleting requirement to
25110 display certain certificate; modifying certain
26111 information required for submission; modifying
27112 required date for submission of certain info rmation;
28113 modifying threshold for certain information required
29114 to claim prize; modifying information required to
30115 claim certain prize; amending 51 O.S. 2021, Section
31116 24A.5, which relates to the Oklahoma Open Records
32117 Act; providing exception; repealing 3A O.S. 2021,
33118 Section 706, which relates to Lottery Retailer
34119 Advisory Board and Oklahoma Lottery Commission
35120 Legislative Oversight Committee; updating statutory
36121 reference; and providing an effective date.
37122
38123
39124
40-SUBJECT: Oklahoma Lottery
41125
42126 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
43-
44127 SECTION 1. AMENDATORY 3A O.S. 2021, Section 712, is
45128 amended to read as follows:
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49129 Section 712. A. The executive director of the Oklahoma Lottery
50130 Commission, with the approval of the board of trustees, shall employ
51131 such personnel as may be necessary to carry out the provi sions of
52132 this act and shall set the comp ensation and terms of comp ensation of
53133 such employees. All offices, positions, and personnel of the
54134 Oklahoma Lottery Commission shall be in the unclassified service.
55135
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56161 B. No employee of the Commission shall have a financial
57162 interest in any vendor doing busi ness or proposing to do bu siness
58163 with the Commission.
59-
60164 C. No employee of the Commission shall participate in any
61165 decision involving a retailer with whom the employee has a fin ancial
62166 interest.
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64167 D. No employee of the Commission who leaves the employment of
65168 the Commission may represent any vendor or lottery retaile r before
66169 the Commission for a period of two (2) years following termination
67170 of employment with the Commission.
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69171 E. A background investigation shall be conducte d on each
70172 applicant who has reached the final selection process pr ior to
71173 employment by the Commission at the level of division director and
72174 above and at any level within any division of security and as
73175 otherwise required by the board of trustees of the Oklahoma Lottery
74176 Commission. The Commission shall pay for the actual cost of the
75177 investigations and shall contract with the Oklahoma State Bureau of
76178 Investigation for the performance of the investigations and on every
77179 employee of the Commission for each calendar year . The results of a
78180 background investigation shall not be considered a record open to
79181 the public pursuant to the Oklahoma Open Records Act.
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81182 F. No person who has been convicted of any felony or a
82183 misdemeanor involving illegal gambling or involving moral turpitude
83184 shall be employed by t he Commission, nor shall the Commission employ
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84211 a person who is awaiting sentencing on a plea of guilt or nolo
85212 contendere to such a felony or misdemeanor .
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87213 G. The Commission shall bond Commission employees with access
88214 to Commission funds or lottery revenue in an amount specified b y the
89215 board and may bond other emp loyees as deemed necessary.
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93216 SECTION 2. AMENDATORY 3A O.S. 2021, Section 713, as
94217 amended by Section 1, Chapter 359, O.S.L. 2022 (3A O.S. Supp. 2022,
95218 Section 713), is amended to read as follows:
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97219 Section 713. A. All gross proceeds shall be the property of
98220 the Oklahoma Lottery Commission. From its gross proceeds, the
99221 Commission shall pay the operating expenses of the Commission. At
100222 least forty-five percent (45%) of gross proceeds shall be made
101223 available as prize money. However, the provisions of this
102224 subsection shall be deemed not to create any lien, entitlement,
103225 cause of action, or other private right, and any rights of holders
104226 of tickets or shares shall be d etermined by the Commission in
105227 setting the terms of its lottery or lotter ies.
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107228 B. The Oklahoma Lottery Commission shall submit a written
108229 report of its findings and any recommendations regarding the impact
109230 of removing the requirement that net proceeds shall equal at least
110231 thirty-five percent (35%) of the gross proceeds. The report shall
111232 be submitted to the Governor, the Speaker of the Oklahoma House of
112233 Representatives and the President Pro Tempore of the Oklahoma State
113234 Senate not later than October 1, 2020, and annually thereafter.
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114260
115261 C. There is hereby created in the State Treasu ry a fund to be
116262 designated the “Oklahoma Education Lottery Trust Fund”. Except as
117263 otherwise provided in subsections H G and I H of this section, on or
118264 before the fifteenth day of each ca lendar quarter, the Commission
119265 shall transfer to the State Treasurer, for credit to the Oklahoma
120266 Education Lottery Trust Fund, the amount of all net proceeds
121267 accruing during the preceding calendar quarter. Expenditures from
122268 the fund shall be made upon war rants issued by the State Treasurer
123269 against claims filed as prescribe d by law with the Director of the
124270 Office of Management and Enterprise Services for approval and
125271 payment.
126-
127272 D. C. Upon their deposit into the State Treasury, any monies
128273 representing a deposit of net proceeds shall then become the
129274 unencumbered property of this state, and neither the Commission nor
130275 the board of trustees shall have the power to agree or undertake
131276 otherwise. The monies shall be invested by the State Treasurer in
132277 accordance with state investment practices. All earnings
133278 attributable to such investments shall likewise be the unencumbered
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136279 property of the state and shall acc rue to the credit of the fund
137280 provided for in subsection C B of this section.
138-
139281 1. The first Sixty-five Million Dollars ($65,000,000.00) of
140282 monies contributed annually to the Oklahoma Education Lottery Trust
141283 Fund shall only be appropriated as follows:
142-
143284 a. forty-five percent (45%) for the following:
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144310
145311 (1) kindergarten through twelfth grade public
146312 education, including but not limi ted to
147313 compensation and benefits for public school
148314 teachers and support employees, and
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150315 (2) early childhood development programs, which shall
151316 include but not be limited to costs associated
152317 with prekindergarten and full -day kindergarten
153318 programs,
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155319 b. forty-five percent (45%) for the following:
156-
157320 (1) tuition grants, loans and scholarships to
158321 citizens of this state to enable such citizens to
159322 attend colleges and universities located within
160323 this state, regardless of whether such colleges
161324 and universities are owned o r operated by the
162325 Oklahoma State Regents for Higher Education, or
163326 to attend institutions operated under the
164327 authority of the Oklahoma Department of Career
165328 and Technology Education; provided, such tuition
166329 grants, loans and scholarships shall not be made
167330 to a citizen of this state to attend a college or
168331 university which is not accredited by the
169332 Oklahoma State Regents for Higher Education,
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171333 (2) construction of educational facilities for
172334 elementary school districts, independent school
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173361 districts, The Oklahoma Sta te System of Higher
174362 Education, and career and technology education,
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176363 (3) capital outlay projects for elementary school
177364 districts, independent school districts, The
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180365 Oklahoma State System of Higher Education, and
181366 career and technology education,
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183367 (4) technology for public elementary school district,
184368 independent school district, state higher
185369 education, and career and technology education
186370 facilities, which shall include but not be
187371 limited to costs of providing to teachers at
188372 accredited public institutions who tea ch levels
189373 kindergarten through twelfth grade, personnel at
190374 technology centers under the authority of the
191375 Oklahoma State Department of Career and
192376 Technology Education, and professors and
193377 instructors within The Oklahoma State System of
194378 Higher Education, the necessary training in the
195379 use and application of computers and advanced
196380 electronic instructional technology to implement
197381 interactive learning environments in the
198382 classroom and to access the statewide distance
199383 learning network and costs associated with
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200410 repairing and maintaining advanced electronic
201411 instructional technology,
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203412 (5) endowed chairs for professors at institutions of
204413 higher education operated by The Oklahoma State
205414 System of Higher Education, and
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207415 (6) programs and personnel of the Oklahoma School for
208416 the Deaf and the Oklahoma School for the Blind,
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210417 c. five percent (5%) to the School Consolidation and
211418 Assistance Fund. When the total amount in the School
212419 Consolidation and Assistance Fund from all sources
213420 equals Five Million Dollars ($5,000,0 00.00), all
214421 monies appropriated pursuant to this subparagraph
215422 which would otherwise be deposited in the School
216423 Consolidation and Assistance Fund in excess of Five
217424 Million Dollars ($5,000,000.00) shall be allocated by
218425 the State Department of Educa tion to public schools
219426 based on the audited end-of-year average daily
220427 membership in grades 8 through 12 during the preceding
221428 school year for the purpose of purchasing technology
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224429 equipment. If at any time the total amount in the
225430 School Consolidation and As sistance Fund drops below
226431 Five Million Dollars ($5,000,000.00), the monies
227432 appropriated pursuant to this subparagraph shall be
228433 deposited in the School Consolidation and Assistance
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229460 Fund until the Fund again reaches Five Million Dollars
230461 ($5,000,000.00), and
231-
232462 d. five percent (5%) to the Teachers’ Retirement System
233463 Dedicated Revenue Revolving Fund.
234-
235464 In no instance shall the annual maximum percentage for
236465 administrative costs, not including marketing and advertising costs,
237466 funds set aside for prizes, commissions paid to retailers, contract
238467 fees paid to gaming system vendors and instant ticket providers or
239468 emergency-related capital expenses, exceed three percent (3%) of
240469 sales.
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242470 2. The remaining portion of lottery annual net proceeds
243471 deposited to the Oklahoma Education Lottery Trust Fund that exceeds
244472 Sixty-five Million Dollars ($65,000,000.00) shall be deposited to
245473 the credit of the Teacher Empowerment Revolving Fund created in
246474 Section 2 of this act.
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248475 E. D. The Legislature shall appropriate funds from the Oklahoma
249476 Education Lottery Trust Fund only for the purposes spe cified in
250477 subsection D C of this section. Even when funds from the trust fund
251478 are used for these purposes, the Legislature shall not use funds
252479 from the trust fund to supplant or replace other state fun ds
253480 supporting common education, higher education, or c areer and
254481 technology education.
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256482 F. E. In order to ensure that the funds from the trust fund are
257483 used to enhance and not supplant funding for education, the State
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258510 Board of Equalization shall examine and investigate appropriations
259511 from the trust fund each y ear. At the meeting of the State Board of
260512 Equalization held within five (5) days after the monthly
261513 apportionment in February of each year, the State Board of
262514 Equalization shall issue a finding and repo rt which shall state
263515 whether appropriations from the t rust fund were used to enhance or
264516 supplant education funding. If the State Board of Equalization
265517 finds that education funding was supplanted by funds from the trust
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268518 fund, the Board shall specify the am ount by which education funding
269519 was supplanted. In this event, the Legislature shall not make any
270520 appropriations for the ensuing fiscal year until an appropriation in
271521 that amount is made to replenish the trust fund.
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273522 G. F. Except as otherwise provided by this subsection, no
274523 deficiency in the Oklahoma Educati on Lottery Trust Fund shall be
275524 replenished by reducing any nonlottery funds including, specifically
276525 but without limitation, the General Revenue Fund, the Constitutional
277526 Reserve Fund, or the Education Ref orm Revolving Fund of the State
278527 Department of Educati on. No program or project started specifically
279528 from lottery proceeds shall be continued from the General Revenue
280529 Fund, the Constitutional Reserve Fund, or the Education Reform
281530 Revolving Fund of the State Department of Education. Such programs
282531 must be adjusted or discontinued according to available lottery
283532 proceeds unless the Legislature by general law establishes
284533 eligibility requirements and appropriates specific funds therefor.
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285560 No surplus in the Oklaho ma Education Lottery Trust Fund shall be
286561 reduced or transferred to correct any nonlottery deficiencies in
287562 sums available for general appropriations. The provisions of this
288563 subsection shall not apply to bonds or other obligations issued
289564 pursuant to or to the repayment of bonds or other obligations issued
290565 pursuant to the Oklahoma Higher Education Promise of Excellence Act
291566 of 2005.
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293567 H. G. There is hereby created in the State Treasury a revolving
294568 fund to be designated the “Oklahoma Education Lottery Revolving
295569 Fund”. The fund shall be a continuing fund, not sub ject to fiscal
296570 year limitations, and shall consist of all monies received by the
297571 Commission. The Commission shall make payments of net proceeds from
298572 the fund to the Oklahoma Education Lottery Trust Fund on or before
299573 the fifteenth day of each calendar quar ter as provided in subsection
300574 C B of this section. All monies accruing to the credit of the
301575 Oklahoma Education Lottery Revolving Fund are hereby appropriated
302576 and may be budgeted and expended for the paymen t of net proceeds,
303577 prizes, commissions to retailers, administrative expenses and all
304578 other expenses arising out of the operation of the education
305579 lottery, subject to the limitations provided in the Oklahoma
306580 Education Lottery Act. Expenditures from the fun d shall be made
307581 upon warrants issued by the State Treasurer against claims filed as
308582 prescribed by law with the Director of the Office of Management and
309583 Enterprise Services for approval and payment.
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313610 The monies in the fund shall be invested by the State Trea surer
314611 in accordance with state investment practices. All earnings
315612 attributable to such investments shall likewise accrue to the credit
316613 of the fund.
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318614 I. H. When appropriations from the Oklahoma Education Lottery
319615 Trust Fund are made to common education purs uant to the provisions
320616 of subparagraph a of paragraph 1 of subsection D C of this section,
321617 the appropriations shall be made available on a monthly basis. In
322618 addition to the provisions of subsections C B and D C of this
323619 section, the following process shall be used to ensure that the
324620 appropriations are made available to common education in a timely
325621 manner:
326-
327622 1. Beginning in July of the fiscal year in which appropriations
328623 are made to common education from the Oklahoma Education Lottery
329624 Trust Fund, the Commissio n, on or before the ninth day of each
330625 month, shall transfer to the State Treasurer, for credit to the
331626 Oklahoma Education Lottery Trust Fund, the amount of net proceed s
332627 accruing during the preceding month equal to the amount of total
333628 monthly collections due to common education as required by
334629 subparagraph a of paragraph 1 of subsection D C of this section;
335-
336630 2. The Director of the Office of Management and Enterprise
337631 Services shall allocate the transfers provided for in paragraph 1 of
338632 this subsection to the State Department of Education on a monthly
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339659 basis, not to exceed one-twelfth (1/12) of the annual apportionment
340660 for the fiscal year; and
341-
342661 3. The total amount of transfers to the Oklahoma Education
343662 Lottery Trust Fund of net lottery proceeds made pursuant to this
344663 subsection shall not exceed the total appropriations made to common
345664 education from the Oklahoma Education Lottery Trust Fund for the
346665 specific fiscal year.
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348666 J. I. When appropriations from the Oklahoma Education Lottery
349667 Trust Fund are made to The Oklahoma Sta te System of Higher
350668 Education, the appropriations shall be made available to the System
351669 on a monthly basis. In addition to the provisions of subsections C
352670 B and D C of this section, the following process shall be used to
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355671 ensure that the appropriations are mad e available to The Oklahoma
356672 State System of Higher Education i n a timely manner:
357-
358673 1. Beginning in July of the fiscal year in which appropriations
359674 are made to The Oklahoma State System of Higher Education from the
360675 Oklahoma Education Lottery Trust Fund, the Commission, on or before
361676 the ninth day of each month, shall tr ansfer to the State Treasurer,
362677 for credit to the Oklahoma Education Lottery Trust Fund, the amount
363678 of net proceeds accruing during the preceding month equal to the
364679 amount of total monthly collec tions due to the Oklahoma State
365680 Regents for Higher Education a s required by subparagraph b of
366681 paragraph 1 of subsection D C of this section;
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368708 2. The Director of the Office of Management and Enterprise
369709 Services shall allocate the transfers provided for in paragraph 1 of
370710 this subsection to the Oklahoma State Regents for Higher Education
371711 on a monthly basis, not to exceed one-twelfth (1/12) of the annual
372712 apportionment for the fiscal year; and
373-
374713 3. The total amount of transfers to the Oklahoma Education
375714 Lottery Trust Fund of net lottery proceeds made pursuant to this
376715 subsection shall not exceed the total appropriations made to The
377716 Oklahoma State System for Higher Education from the Oklahoma
378717 Education Lottery Trust Fund for the specific fiscal year.
379-
380718 SECTION 3. AMENDATORY 3A O.S. 2021, Section 724, is
381719 amended to read as follows:
382-
383720 Section 724. A. Proceeds of any lottery prize shall be subject
384721 to the Oklahoma state income tax.
385-
386722 B. Attachments, garnishment s, or executions authorized and
387723 issued pursuant to law shall be withheld if timely served upon the
388724 Oklahoma Lottery Commission. This subsection shall not apply to
389725 payment of prizes by a retailer.
390-
391726 C. The Commission shall adopt po licies and procedures to
392727 establish a system of verifying the validity of tick ets or shares
393728 claimed to win prizes and to effect payment of the prizes, except
394729 that:
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397-ENR. S. B. NO. 612 Page 10
730+1. No prize, any portion of a prize, or any right of any person
731+to a prize awarded shall be assignable. Any prize or any portion of
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758+a prize remaining unpaid at the deat h of a prize winner shall be
759+paid to the estate of the deceas ed prize winner or to the trustee of
760+a trust established by the deceased prize winner as settlor if a
761+copy of the trust document or instrument h as been filed with the
762+Commission along with a nota rized letter of direction from the
763+settlor and no written not ice of revocation has been received by the
764+Commission prior to the death of the settlor. Following the death
765+of a settlor and prior to any paym ent to a successor trustee, the
766+Commission shall obtain from the trustee a written agreement to
767+indemnify and hold the Commission harmless with respect to any
768+claims that may be asserted against the Commission arising from
769+payment to or through the trust. Notwithstanding any other
770+provisions of this secti on, any person, pursuant to an appropriate
771+judicial order, shall be paid the prize to which a winner is
772+entitled;
773+2. No prize shall be paid arising from claimed tickets that
774+are:
775+a. stolen, counterfeit, a ltered, fraudulent, unissued,
776+produced or issued in error, unreadable, not received,
777+or not recorded by the Comm ission within applicable
778+deadlines,
779+b. lacking in captions that conform and agree with the
780+play symbols as appropriate to the particular lottery
781+game involved, or
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808+c. not in compliance with such a dditional public or
809+confidential validation and security test s of the
810+Commission appropriate to the particular lottery game
811+involved;
812+3. No particular prize in any lottery game s hall be paid more
813+than once, and in the event of a determination that more th an one
814+claimant is entitled to a particular prize, the sole r emedy of the
815+claimants is the award to each of them of an equal share in the
816+prize;
817+4. A holder of a winning cash tic ket or share from a lotter y
818+game shall claim a cash prize within one hundred eighty (180) days,
819+or for a multistate or multisovereign lott ery game within one
820+hundred eighty (180) days, after the drawing in which the cash prize
821+was won. In any Oklahoma lot tery game in which the pla yer may
822+determine instantly if the player has won o r lost, the player shall
823+claim a cash prize within ninety (90 ) days, or for a multistate
824+lottery game within one hundred eighty (180) days, after the end of
825+the lottery game. If a valid claim is not made for a cash prize
826+within the applicable period, the cash prize shall constitute an
827+unclaimed prize for purposes o f the Oklahoma Education Lottery Act;
828+5. Any person or persons claiming a lottery prize exceeding Six
829+Hundred Dollars ($600.00) shall provide t he Commission with their
830+name, address, social security number or tax identification number,
831+and sufficient valid identification as proof of the same prior to
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858+payment of the prize by the Commission. This information shall be
859+confidential for purposes of the Oklahoma Open Records Act , except
860+for the person’s first name, city of residence, and prize amount;
861+and
862+6. Any person or persons claiming a lottery prize exceeding
863+Five Thousand Dollars ($5,000.00) shall provide the Commission with
864+their name, address, social security numb er or tax identification
865+number, proof of social security n umber or tax identification
866+number, and sufficient valid identification prior to payment of the
867+prize by the Commission. This information shall be co nfidential for
868+purposes of the Oklahoma Open Records Act, e xcept for the person ’s
869+first name, city of residence, and prize amount; and
870+7. Any person or persons claiming a lottery prize exceeding Six
871+Hundred Dollars ($600.00) as a trust shall provide for e ach person
872+entitled to any portion of the prize their name, address, social
873+security number or tax identification number, proof of social
874+security number or tax identification number, and sufficient valid
875+identification as proof of the same and trust certifications prior
876+to payment of the prize by the Commission except that such
877+information specified in this paragraph shall be conf idential and
878+not subject to the provisions of the Oklahoma Open Records Act.
879+D. No prize shall be paid upon a ticket or sh are purchased or
880+sold in violation of the Oklahoma Education Lottery Act. Any such
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907+prize shall constitute an unclaimed prize for pur poses of the
908+Oklahoma Education Lottery Act.
909+E. The Commission is discharged of all liability upon payment
910+of a prize.
911+F. No ticket or share shall be purchased by and no prize shall
912+be paid to any member of the boar d of trustees of the Oklahoma
913+Lottery Commission, any officer or employee of the Commission, or to
914+any spouse, child, brother, sister, or parent residing as a mem ber
915+of the same household in the principal place of residence of any
916+such person. No ticket o r share shall be purchased by and no pr ize
917+shall be paid to any officer, employee, agent, or subcontractor of
918+any vendor or to any spouse, child, brother, sister, or parent
919+residing as a member of the same household in the principal place of
920+residence of any such person if the officer, employee , agent, or
921+subcontractor has access to confidential information which may
922+compromise the integrity of the lottery.
923+G. Unclaimed prize money shall not constitute net lottery
924+proceeds. The first Seven Hundred Fifty T housand Dollars
925+($750,000.00) of unclai med prize money accruing annually shall be
926+transferred to the Department of Mental Health and Substance Abuse
927+Services for the treatment of compulsive gambling disorder and
928+educational programs related to such disorde r. All other unclaimed
929+prize money shall be added to the pool from which future prizes are
930+to be awarded or used for special prize promotions.
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957+SECTION 4. AMENDATORY 3A O.S. 2021, Section 733, is
958+amended to read as follows:
959+Section 733. To ensure the financial integrity of the lottery,
960+the Oklahoma Lottery Commission through its board of trustees shall:
961+1. Submit quarterly and annual reports to the Governor, State
962+Auditor and Inspector, Oklahoma State Bureau of Investigation,
963+Attorney General, and the oversight committee create d by Section 734
964+of this title, disclosing the total lottery revenues, prize
965+disbursements, operating expens es, and administrative expenses of
966+the Commission during the reporting period . The annual report shall
967+additionally describe the organizational str ucture of the Commission
968+and summarize the functions performed by each organizational
969+division within the Co mmission;
970+2. Adopt a system of internal audits;
971+3. Maintain weekly or more frequent records o f lottery
972+transactions, including the distribution of tickets or shares to
973+retailers, revenues received, claims for prizes, prizes paid, prizes
974+forfeited, and other financial transactions of the Commission;
975+4. Contract with a certified public accountant or firm for an
976+annual financial audit of the Commissio n. The certified public
977+accountant or firm shall have no financial interest in any vendor
978+with whom the Commission is under contract. The certified public
979+accountant or firm shall present an audit rep ort not later than
980+seven (7) months after the end of t he fiscal year. The certified
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1007+public accountant or firm shall evaluate the internal auditing
1008+controls in effect during the audit period. The cost of this annual
1009+financial audit shall be an operating e xpense of the Commission.
1010+The State Auditor and Inspe ctor may at any time conduct an audit of
1011+any phase of the operations of the Commission at the expense of th e
1012+Commission and shall receive a copy of the annual independent
1013+financial audit. A copy of any audit performed by the certified
1014+public accountant or firm or the State Auditor and Inspector shall
1015+be transmitted to the Governor, the President Pro Tempore of the
1016+Senate, and the Speaker of the House of Representatives, the State
1017+Auditor and Inspector, and the cochairs of the oversight committee
1018+created in Section 734 of this title;
1019+5. Submit to the Office of Management and Enterprise Services
1020+and the State Auditor and Inspector by June 30 of each year a copy
1021+of the annual operating budget for the C ommission for the next
1022+fiscal year. This annual operatin g budget shall be approved by the
1023+board and be on such forms as prescribed by the Office of Management
1024+and Enterprise Services; and
1025+6. For informational purposes only, submit Submit to the Office
1026+of Management and Enterprise Services on September 1 by October 1 of
1027+each year a proposed operating budget for the Commission for the
1028+succeeding fiscal year. The budget proposal shall also be
1029+accompanied by an estimate of the net proceeds to be deposited in to
1030+the Oklahoma Education Lottery Trust Fund during the s ucceeding
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1057+fiscal year. The budget estimate shall be on such forms as
1058+prescribed by the Office of Manage ment and Enterprise Services.
1059+SECTION 5. AMENDATORY 51 O.S. 2021, Sec tion 24A.5, is
1060+amended to read as follows:
1061+Section 24A.5 All records of public bodies and public officials
1062+shall be open to any person for inspection, copying, or mechanic al
1063+reproduction during regular business hours; provid ed:
1064+1. The Oklahoma Open Reco rds Act, Sections 24A.1 through 24A.30
1065+of this title, does not apply to records specifically required by
1066+law to be kept confidential including:
1067+a. records protected by a sta te evidentiary privilege
1068+such as the attorney -client privilege, the work
1069+product immunity from discovery and the identity of
1070+informer privileges,
1071+b. records of what transpired during meetings of a public
1072+body lawfully closed to the public such as executive
1073+sessions authorized under the Oklahoma Open Meeting
1074+Act,
1075+c. personal information w ithin driver records as defined
1076+by the Driver’s Privacy Protection Act, 18 United
1077+States Code, Sections 2721 through 2725,
1078+d. information in the files of the Board of Medico legal
1079+Investigations obtained pursuant to Sections 94 0 and
1080+941 of Title 63 of the O klahoma Statutes that may be
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1107+hearsay, preliminary unsubstantiated investigation-
1108+related findings, or confidential medical information,
1109+or
1110+e. any test forms, question banks a nd answer keys
1111+developed for state licensure examinat ions, but
1112+specifically excludi ng test preparation materials or
1113+study guides, or
1114+f. last names, addresses, social security numbers or tax
1115+identification numbers , and proof of identification
1116+submitted to the Oklahoma Lottery Commission by
1117+persons claiming a lotter y prize;
1118+2. All Social Security numbers i ncluded in a record may be
1119+confidential regardless of the person’s status as a public employee
1120+or private individual and may be redacted or delete d prior to
1121+release of the record by the public body;
1122+3. Any reasonably segregable portion of a record contain ing
1123+exempt material shall be provided a fter deletion of the exempt
1124+portions; provided however, the Department of Public Safety shall
1125+not be required to assemble for the requesting perso n specific
1126+information, in any format, from driving records relating to any
1127+person whose name and date of birt h or whose driver license number
1128+is not furnished by the requesting person.
1129+The Oklahoma State Bureau of In vestigation shall not be required
1130+to assemble for the requesting person any criminal history records
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1157+relating to persons whose names, dates of birth, and other
1158+identifying information required by the Oklahoma State Bureau of
1159+Investigation pursuant to admin istrative rule are not furnished by
1160+the requesting person;
1161+4. Any request for a record which contains individ ual records
1162+of persons, and the cost of copying, reproducing or certifying each
1163+individual record is otherwise prescribed by state law, the cost m ay
1164+be assessed for each individual reco rd, or portion thereof requested
1165+as prescribed by state law. Otherwise , a public body may charge a
1166+fee only for recovery of the reasonable, direct costs of record
1167+copying, or mechanical reproduction. Notwithstanding any state or
1168+local provision to the co ntrary, in no instance shall the record
1169+copying fee exceed twenty -five cents ($0.25) per page for records
1170+having the dimensions of eight and one-half (8 1/2) by fourteen (14)
1171+inches or smaller, or a maximum of One Dol lar ($1.00) per copied
1172+page for a certified copy. However, if the request:
1173+a. is solely for commercial purpos e, or
1174+b. would clearly cause excessive disruption of the
1175+essential functions of the public body,
1176+then the public body may charge a reasonable fee to recover the
1177+direct cost of record se arch and copying; however, publication in a
1178+newspaper or broadcast by n ews media for news purposes shall not
1179+constitute a resale or use of a record for trade or commercial
1180+purpose and charges for providing copies of e lectronic data to the
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1207+news media for a news purpose shall not exceed the direct cost of
1208+making the copy. The fee charged by the Department of Public Safety
1209+for a copy in a computerized format of a record of the Department
1210+shall not exceed the direct cost of making the copy unless the fee
1211+for the record is otherwise set by law.
1212+Any public body establishing fees un der this act shall post a
1213+written schedule of the fees at its principal office and with the
1214+county clerk.
1215+In no case shall a search fee be charged when the release of
1216+records is in the public interest, including, but not limited to,
1217+release to the news med ia, scholars, authors and taxpayers see king
1218+to determine whether those entrusted with the affairs of the
1219+government are honestly, faithfully, and competently performing
1220+their duties as public servants.
1221+The fees shall not be used for the purpose of discoura ging
1222+requests for information or as obs tacles to disclosure of requested
1223+information;
1224+5. The land description tract index of all recorded instrum ents
1225+concerning real property required to be kept by the county clerk of
1226+any county shall be available for ins pection or copying in
1227+accordance with the provisions of the Oklahoma Open Records Act;
1228+provided, however, the index shall not be copied or mechani cally
1229+reproduced for the purpose of sal e of the information;
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1256+6. A public body must provide prompt, reasonable access to its
1257+records but may establis h reasonable procedures which protect the
1258+integrity and organization of its records and to prevent excessiv e
1259+disruptions of its essential function s. A delay in providing access
1260+to records shall be limited solely to t he time required for
1261+preparing the requested documents and the avoidance of excessive
1262+disruptions of the public body’s essential functions. In no event
1263+may production of a current requ est for records be unreasonably
1264+delayed until after completion of a pri or records request that will
1265+take substantially longer than the current request. Any public body
1266+which makes the requested records available on t he Internet shall
1267+meet the obligation o f providing prompt, reasonable access to its
1268+records as required by thi s paragraph; and
1269+7. A public body shal l designate certain persons who are
1270+authorized to release records of the public body for inspection,
1271+copying, or mechanical reproduction. At leas t one person shall be
1272+available at all times to release records during the regular
1273+business hours of the publi c body.
1274+SECTION 6. REPEALER 3A O.S. 2021, Section 706, is hereby
1275+repealed.
1276+SECTION 7. This act shall become effective November 1, 2023."
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1305+Passed the House of Representatives the 26th day of April, 2023.
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1310+
1311+Presiding Officer of the House of
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1315+Passed the Senate the ____ day of _______ ___, 2023.
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1349+ENGROSSED SENATE
1350+BILL NO. 612 By: Howard of the Senate
1351+
1352+ and
1353+
1354+ Osburn of the House
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1357+
1358+
1359+An Act relating to the Oklahoma Lottery ; amending 3A
1360+O.S. 2021, Sections 712, 713, as amended by Section
1361+1, Chapter 359, O.S.L. 2022, 724, and 733 (3A O.S.
1362+Supp. 2022, Section 713), which relate to the
1363+Oklahoma Lottery Commission, prize claims, and the
1364+board of trustees; expanding required background
1365+checks for certain applicants; requiring annual
1366+background checks for Commission employees; deleting
1367+Commission requirement to pay for certain
1368+investigations and contract with the Oklahoma State
1369+Bureau of Investigation; deleting r equirement to
1370+submit certain report; deleting requirement to
1371+display certain certificate; modifying certain
1372+information required for submission; modifying
1373+required date for submission of certain information;
1374+modifying threshold for certain information required
1375+to claim prize; modifying information required to
1376+claim certain prize; amending 51 O.S. 2021, Section
1377+24A.5, which relates to the Oklahoma Open Records
1378+Act; providing exception; repealing 3A O.S. 2021,
1379+Sections 706 and 734, which relate to Lottery
1380+Retailer Advisory Board and Oklahoma Lottery
1381+Commission Legislative Oversight Committee; updating
1382+statutory reference; and providing an effective date.
1383+
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1386+
1387+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
1388+SECTION 8. AMENDATORY 3A O.S. 2021, Section 712, is
1389+amended to read as follows:
1390+Section 712. A. The executive director of the Oklahoma Lott ery
1391+Commission, with the approval of the board of trustees, shall employ
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1418+such personnel as may be necessary to carry out the provi sions of
1419+this act and shall set the comp ensation and terms of comp ensation of
1420+such employees. All office s, positions, and per sonnel of the
1421+Oklahoma Lottery Commission shall be in the unclassified service.
1422+B. No employee of the Commission shall have a financial
1423+interest in any vendor doing busi ness or proposing to do bu siness
1424+with the Commission.
1425+C. No employee of the Commission shall participate in any
1426+decision involving a retailer with whom the employee has a financial
1427+interest.
1428+D. No employee of the Commission who leaves the employment of
1429+the Commission may represent any vendor or lottery retailer before
1430+the Commission for a period of two (2) years following termination
1431+of employment with the Commission.
1432+E. A background investig ation shall be conducte d on each
1433+applicant who has reached the final selection process pr ior to
1434+employment by the Commission at the level of division director and
1435+above and at any level within any division of security and as
1436+otherwise required by the board of trustees of the Oklahoma Lottery
1437+Commission. The Commission shall pay for the actual cost of the
1438+investigations and shall c ontract with the Okla homa State Bureau of
1439+Investigation for the performance of the investigations and on every
1440+employee of the Commission for each calendar year . The results of
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1467+a background investigation shall not be considered a record open to
1468+the public pursuant to the Okl ahoma Open Records Act.
1469+F. No person who has been convicted of any felony or a
1470+misdemeanor involving illeg al gambling or involving moral turpitude
1471+shall be employed by t he Commission, nor shall the Commission employ
1472+a person who is awaiting sentencing on a plea of guilt or nolo
1473+contendere to such a felony or misdemeanor .
1474+G. The Commission shall bond Commission employees with access
1475+to Commission funds or lottery revenue in an amount specified b y the
1476+board and may bond other employees as deemed necessary.
1477+SECTION 9. AMENDATORY 3A O.S. 2021, Section 713, as
1478+amended by Section 1, Chapter 359, O.S.L. 2022 (3A O.S. Supp. 2022,
1479+Section 713), is amended to read as follows:
1480+Section 713. A. All gross proceeds shall b e the property of
1481+the Oklahoma Lottery Commission. From its gross proceeds, the
1482+Commission shall pay the operating expenses of the Commission. At
1483+least forty-five percent (45%) of gross proceeds shall be made
1484+available as prize money. However, the provisions of this
1485+subsection shall be deemed not to create any lien, entitlement,
1486+cause of action, or other private right, and any rights of holders
1487+of tickets or shares shall be d etermined by the Commission in
1488+setting the terms of its lottery or lotteries.
1489+B. The Oklahoma Lottery Commission shall submit a written
1490+report of its findings and any recommendations regarding the impact
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1517+of removing the requirement that net proceeds shall equal at least
1518+thirty-five percent (35%) of the gross proceeds. The report shall
1519+be submitted to the Governor, the Speaker of the Oklahoma House of
1520+Representatives and the President Pro Tempore of the Oklahoma State
1521+Senate not later than October 1, 2020, and annually thereafter.
1522+C. There is hereby created in the State Treasury a fu nd to be
1523+designated the “Oklahoma Education Lottery Trust Fund”. Except as
1524+otherwise provided in subsections H G and I H of this section, on or
1525+before the fifteenth day of each ca lendar quarter, the Commission
1526+shall transfer to the State Treasurer, for cr edit to the Oklahoma
1527+Education Lottery Trust Fund, the amount of all net proceeds
1528+accruing during the preceding calendar quarter. Expenditures from
1529+the fund shall be made upon war rants issued by the State Treasurer
1530+against claims filed as prescribed by la w with the Director of the
1531+Office of Management and Enterprise Services for approval and
1532+payment.
1533+D. C. Upon their deposit into the State Treasury, any monies
1534+representing a deposit of net proceeds shall then become the
1535+unencumbered property of this state , and neither the Commission nor
1536+the board of trustees shall have the power to agree or undertake
1537+otherwise. The monies shall be invested by the State Treasurer in
1538+accordance with state investment practices. All earnings
1539+attributable to such investments shall likewise be the unencumbered
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1566+property of the state and shall acc rue to the credit of the fund
1567+provided for in subsection C B of this section.
1568+1. The first Sixty-five Million Dollars ($65,000,000.00) of
1569+monies contributed annually to the Oklahoma Education Lottery Trust
1570+Fund shall only be appropriated as follows:
1571+a. forty-five percent (45%) for the following:
1572+(1) kindergarten through twelfth grade public
1573+education, including but not limi ted to
1574+compensation and benefits for public school
1575+teachers and support employees, and
1576+(2) early childhood development programs, which shall
1577+include but not be limited to costs associated
1578+with prekindergarten and full -day kindergarten
1579+programs,
1580+b. forty-five percent (45%) for the following:
1581+(1) tuition grants, loans and scholarships to
1582+citizens of this state to enable such citizens to
1583+attend colleges and universities located within
1584+this state, regardless of whether such colleges
1585+and universities are owned o r operated by the
1586+Oklahoma State Regents for Higher Education, or
1587+to attend institutions operated under the
1588+authority of the Oklahoma Department of Career
1589+and Technology Education; provided, such tuition
1590+
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1616+grants, loans and scholarships shall not be made
1617+to a citizen of this state to attend a college or
1618+university which is not accredited by the
1619+Oklahoma State Regents for Higher Education,
1620+(2) construction of educational facilities for
1621+elementary school districts, independent school
1622+districts, The Oklahoma Sta te System of Higher
1623+Education, and career and technology educatio n,
1624+(3) capital outlay projects for elementary school
1625+districts, independent school districts, The
1626+Oklahoma State System of Higher Education, and
1627+career and technology education,
1628+(4) technology for public elementary school district,
1629+independent school district, state higher
1630+education, and career and technology education
1631+facilities, which shall include but not be
1632+limited to costs of providing to teachers at
1633+accredited public institutions who tea ch levels
1634+kindergarten through twelfth grade, personnel at
1635+technology centers under the authority of the
1636+Oklahoma State Department of Career and
1637+Technology Education, and professors and
1638+instructors within The Oklahoma State System of
1639+Higher Education, the necessary training in the
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1666+use and application of computers a nd advanced
1667+electronic instructional technology to implement
1668+interactive learning environments in the
1669+classroom and to access the sta tewide distance
1670+learning network and costs associated with
1671+repairing and maintaining advanced electronic
1672+instructional technology,
1673+(5) endowed chairs for professors at institutions of
1674+higher education operated by The Oklahoma State
1675+System of Higher Educati on, and
1676+(6) programs and personnel of the Oklahoma School for
1677+the Deaf and the Oklahoma School for the Blind,
1678+c. five percent (5%) to the School Consolidation and
1679+Assistance Fund. When the total amount in the School
1680+Consolidation and Assistance Fund from all sources
1681+equals Five Million Dollars ($5,000,0 00.00), all
1682+monies appropriated pursuant to this subparagraph
1683+which would otherwise be deposited in the School
1684+Consolidation and Assistance Fund in excess of Five
1685+Million Dollars ($5,000,000.00) shall be all ocated by
1686+the State Department of Educa tion to public schools
1687+based on the audited end-of-year average daily
1688+membership in grades 8 through 12 during the preceding
1689+school year for the purpose of purchasing technology
1690+
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1716+equipment. If at any time the total am ount in the
1717+School Consolidation and As sistance Fund drops below
1718+Five Million Dollars ($5,000,000.00), the monies
1719+appropriated pursuant to this subparagraph shall be
1720+deposited in the School Consolidation and Assistance
1721+Fund until the Fund again reaches Fiv e Million Dollars
1722+($5,000,000.00), and
1723+d. five percent (5%) to the Teachers’ Retirement System
1724+Dedicated Revenue Revolving Fund.
1725+In no instance shall the annual maximum percentage for
1726+administrative costs, not including marketing and advertising costs,
1727+funds set aside for prizes, commissions paid to retailers, contract
1728+fees paid to gaming system vendors and instant ticket providers or
1729+emergency-related capital expenses, exceed three percent (3%) of
1730+sales.
1731+2. The remaining portion of lottery annual net proc eeds
1732+deposited to the Oklahoma Education Lottery Trust Fund that exceeds
1733+Sixty-five Million Dollars ($65,000,000.00) shall be deposited to
1734+the credit of the Teacher Empowerment Revolving Fund created in
1735+Section 2 of this act.
1736+E. D. The Legislature shall appropriate funds from the Oklahoma
1737+Education Lottery Trust Fund only for the purposes spe cified in
1738+subsection D C of this section. Even when funds from the trust fund
1739+are used for these purposes, the Legislature shall not use funds
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1766+from the trust fund to supplant or replace other state fun ds
1767+supporting common education, higher education, or c areer and
1768+technology education.
1769+F. E. In order to ensure that the funds from the trust fund are
1770+used to enhance and not supplant funding for education, the State
1771+Board of Equalization shall examine and investigate appropriations
1772+from the trust fund each y ear. At the meeting of the State Board of
1773+Equalization held within five (5) days after the monthly
1774+apportionment in February of each year, the State Board of
1775+Equalization shall issue a finding and repo rt which shall state
1776+whether appropriations from the t rust fund were used to enhance or
1777+supplant education funding. If the State Board of Equalization
1778+finds that education funding was supplanted by funds from the trust
1779+fund, the Board shall specify the am ount by which education funding
1780+was supplanted. In this event, the Legislature shall not make any
1781+appropriations for the ensuing fiscal year until an appropriation in
1782+that amount is made to replenish the trust fund.
1783+G. F. Except as otherwise provided by this subsection, no
1784+deficiency in the Oklahoma Educati on Lottery Trust Fund shall be
1785+replenished by reducing any nonlottery funds including, specifically
1786+but without limitation, the General Revenue Fund, the Constitutiona l
1787+Reserve Fund, or the Education Ref orm Revolving Fund of the State
1788+Department of Educati on. No program or project started specifically
1789+from lottery proceeds shall be continued from the General Revenue
1790+
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1816+Fund, the Constitutional Reserve Fund, or the Education Reform
1817+Revolving Fund of the State Department of Education. Such programs
1818+must be adjusted or discontinued according to available lottery
1819+proceeds unless the Legislature by general law establishes
1820+eligibility requirements and appropriates specific fund s therefor.
1821+No surplus in the Oklaho ma Education Lottery Trust Fund shall be
1822+reduced or transferred to correct any nonlottery deficiencies in
1823+sums available for general appropriations. The provisions of this
1824+subsection shall not apply to bonds or other o bligations issued
1825+pursuant to or to the repayment of bonds or other obligations issued
1826+pursuant to the Oklahoma Higher Education Promise of Excellence Act
1827+of 2005.
1828+H. G. There is hereby created in the State Treasury a revolving
1829+fund to be designated the “Oklahoma Education Lottery Revolving
1830+Fund”. The fund shall be a continuing fund, not sub ject to fiscal
1831+year limitations, and shall consist of all monies received by the
1832+Commission. The Commission shall make payments of net proceeds from
1833+the fund to the Oklahoma Education Lottery Trust Fund on or before
1834+the fifteenth day of each calendar quar ter as provided in subsection
1835+C B of this section. All monies accruing to the credit of the
1836+Oklahoma Education Lottery Revolving Fund are hereby appropriated
1837+and may be budgeted and expended for the paymen t of net proceeds,
1838+prizes, commissions to retailers, administrative expenses and all
1839+other expenses arising out of the operation of the education
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1866+lottery, subject to the limitations provided in the Oklahoma
1867+Education Lottery Act. Expenditures from the fun d shall be made
1868+upon warrants issued by the State Treasurer against claims filed as
1869+prescribed by law with the Director of the Office of Management and
1870+Enterprise Services for approval and payment.
1871+The monies in the fund shall be invested by the State Trea surer
1872+in accordance with state investment practices. All earnings
1873+attributable to such investments shall likewise accrue to the credit
1874+of the fund.
1875+I. H. When appropriations from the Oklahoma Education Lottery
1876+Trust Fund are made to common education purs uant to the provisions
1877+of subparagraph a of paragraph 1 of subsection D C of this section,
1878+the appropriations shall be made available on a monthly basis. In
1879+addition to the provisions of subsections C B and D C of this
1880+section, the following process shall be used to ensure that the
1881+appropriations are made available to common education in a timely
1882+manner:
1883+1. Beginning in July of the fiscal year in which appropriations
1884+are made to common education from the Oklahoma Education Lottery
1885+Trust Fund, the Commissio n, on or before the ninth day of each
1886+month, shall transfer to the State Treasurer, for credit to the
1887+Oklahoma Education Lottery Trust Fund, the amount of net proceed s
1888+accruing during the preceding month equal to the amount of total
1889+
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1915+monthly collections due to common education as required by
1916+subparagraph a of paragraph 1 of subsection D C of this section;
1917+2. The Director of the Office of Management and Enterprise
1918+Services shall allocate the transfers provided for in paragraph 1 of
1919+this subsection to the State Department of Education on a monthly
1920+basis, not to exceed one-twelfth (1/12) of the annual apportionment
1921+for the fiscal year; and
1922+3. The total amount of transfers to the Oklahoma Education
1923+Lottery Trust Fund of net lottery proceeds made pursuant to this
1924+subsection shall not exceed the total appropriations made to common
1925+education from the Oklahoma Education Lottery Trust Fund for the
1926+specific fiscal year.
1927+J. I. When appropriations from the Oklahoma Education Lottery
1928+Trust Fund are made to The Oklahoma Sta te System of Higher
1929+Education, the appropriations shall be made available to the System
1930+on a monthly basis. In addition to the provisions of subsections C
1931+B and D C of this section, the following process shall be used to
1932+ensure that the appropriations are mad e available to The Oklahoma
1933+State System of Higher Education i n a timely manner:
1934+1. Beginning in July of the fiscal year in which appropriations
1935+are made to The Oklahoma State System of Higher Education from the
1936+Oklahoma Education Lottery Trust Fund, the Commission, on or before
1937+the ninth day of each month, shall tr ansfer to the State Treasurer,
1938+for credit to the Oklahoma Education Lottery Trust Fund, the amount
1939+
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1965+of net proceeds accruing during the preceding month equal to the
1966+amount of total monthly collec tions due to the Oklahoma State
1967+Regents for Higher Education a s required by subparagraph b of
1968+paragraph 1 of subsection D C of this section;
1969+2. The Director of the Office of Management and Enterprise
1970+Services shall allocate the transfers provided for in paragraph 1 of
1971+this subsection to the Oklahoma State Regents for Higher Education
1972+on a monthly basis, not to exceed one-twelfth (1/12) of the annual
1973+apportionment for the fiscal year; and
1974+3. The total amount of transfers to the Oklahoma Education
1975+Lottery Trust Fund of net lottery proceeds made pursuant to this
1976+subsection shall not exceed the total appropriations made to The
1977+Oklahoma State System for Higher Education from the Oklahoma
1978+Education Lottery Trust Fund for the specific fiscal year.
1979+SECTION 10. AMENDATORY 3A O.S. 2021, Section 724, is
1980+amended to read as follows:
1981+Section 724. A. Proceeds of any lottery prize shall be subject
1982+to the Oklahoma state income tax.
1983+B. Attachments, garnishment s, or executions authorized and
1984+issued pursuant to law shall be withheld if timely served upon the
1985+Oklahoma Lottery Com mission. This subsection sha ll not apply to
1986+payment of prizes by a retailer.
1987+C. The Commission shall adopt policies and procedures to
1988+establish a system of verifying the validity of tick ets or shares
1989+
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2015+claimed to win prizes and to effect payment of the pri zes, except
2016+that:
3982017 1. No prize, any portion of a prize, or any right of any person
3992018 to a prize awarded shall be assignable. Any prize or any portion of
4002019 a prize remaining unpaid at the deat h of a prize winner shall be
4012020 paid to the estate of the deceased priz e winner or to the trustee of
4022021 a trust established by the deceased prize winner as settlor if a
4032022 copy of the trust document or instrument h as been filed with the
4042023 Commission along with a nota rized letter of direction from the
4052024 settlor and no written notice of revocation has been received by the
4062025 Commission prior to the death of the settlor. Following the death
4072026 of a settlor and prior to any paym ent to a successor trustee, the
4082027 Commission shall obtain from the trustee a written agreement to
4092028 indemnify and hold the Commission harmless with resp ect to any
4102029 claims that may be asserted against the Commission arising from
4112030 payment to or through the trust. Notwithstanding any other
4122031 provisions of this secti on, any person, pursuant to an appropriate
4132032 judicial order, shall be paid the prize to which a win ner is
4142033 entitled;
415-
4162034 2. No prize shall be paid arising from claimed tickets that
4172035 are:
418-
4192036 a. stolen, counterfeit, a ltered, fraudulent, unissued,
4202037 produced or issued in error, unreadable, not received,
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4212064 or not recorded by the Commission within applicable
4222065 deadlines,
423-
4242066 b. lacking in captions that conform and agree with the
4252067 play symbols as appropriate to the particular lottery
4262068 game involved, or
427-
4282069 c. not in compliance with such a dditional public or
4292070 confidential validation and security tests of th e
4302071 Commission appropriate to t he particular lottery game
4312072 involved;
432-
4332073 3. No particular prize in any lottery game shall be paid more
4342074 than once, and in the event of a determination that more th an one
4352075 claimant is entitled to a particular prize, the sole remedy o f the
4362076 claimants is the award to each of them of an equal share in the
4372077 prize;
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440-ENR. S. B. NO. 612 Page 11
4412078 4. A holder of a winning cash ticket or share from a lotter y
4422079 game shall claim a cash prize within one hundred eighty (180) days,
4432080 or for a multistate or multisovereign lottery gam e within one
4442081 hundred eighty (180) days, after the drawing in which the cash prize
4452082 was won. In any Oklahoma lottery game in which the pla yer may
4462083 determine instantly if the player has won o r lost, the player shall
4472084 claim a cash prize within ninety (90) days, or for a multistate
4482085 lottery game within one hundred eighty (180) days, after the end of
4492086 the lottery game. If a valid claim is not made for a cash prize
2087+
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4502113 within the applicable period, the cash prize shall constitute an
4512114 unclaimed prize for purposes of the O klahoma Education Lottery Act ;
452-
4532115 5. Any person or persons claiming a lottery prize exceeding Six
4542116 Hundred Dollars ($600.00) shall provide t he Commission with their
4552117 name, address, social security number or tax identification number,
4562118 and sufficient valid ident ification as proof of the same prior to
4572119 payment of the prize by the Commission. This information shall be
4582120 confidential for purposes of the Oklahoma Open Records Act , except
4592121 for the person’s first name, city of residence, and prize amount;
4602122 and
461-
4622123 6. Any person or persons claiming a lott ery prize exceeding
4632124 Five Thousand Dollars ($5,000.00) shall provide the Commission with
4642125 their name, address, social security numb er or tax identification
4652126 number, proof of social security n umber or tax identification
4662127 number, and sufficient valid identification prior to payment of the
4672128 prize by the Commission. This information shall be confiden tial for
4682129 purposes of the Oklahoma Open Records Act, e xcept for the person ’s
4692130 first name, city of residence, and prize amount; and
470-
4712131 7. Any person or persons claimin g a lottery prize exceeding Six
4722132 Hundred Dollars ($600.00) as a trust shall provide for each pe rson
4732133 entitled to any portion of the prize their name, address, social
4742134 security number or tax identification number, proof of social
4752135 security number or tax identificatio n number, and sufficient valid
4762136 identification as proof of the same and trust certifications prior
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4772163 to payment of the prize by the Commission except that such
4782164 information specified in this paragraph shall be conf idential and
4792165 not subject to the provisions of the Oklahoma Open Records Act.
480-
4812166 D. No prize shall be paid upon a ticket or sh are purchased or
4822167 sold in violation of the Oklahoma Education Lottery Act. Any such
483-
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4852168 prize shall constitute an unclaimed prize for pur poses of the
4862169 Oklahoma Education Lottery Act.
487-
4882170 E. The Commission is discharged of all liability upon payment
4892171 of a prize.
490-
4912172 F. No ticket or share shall be purchased by and no prize shall
4922173 be paid to any member of the boar d of trustees of the Oklahoma
4932174 Lottery Commission, any officer or employee of the Comm ission, or to
4942175 any spouse, child, brother, sister, or parent residing as a mem ber
4952176 of the same household in the principal place of residence of any
4962177 such person. No ticket o r share shall be purchased by and no pr ize
4972178 shall be paid to any officer, employee, ag ent, or subcontractor of
4982179 any vendor or to any spouse, child, brother, sister, or parent
4992180 residing as a member of the same household in the principal place of
5002181 residence of any such person if the officer, employee , agent, or
5012182 subcontractor has access to confid ential information which may
5022183 compromise the integrity of the lottery.
503-
5042184 G. Unclaimed prize money shall not constitute net lottery
5052185 proceeds. The first Seven Hundred Fifty T housand Dollars
5062186 ($750,000.00) of unclai med prize money accruing annually shall be
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5072213 transferred to the Department of Mental Health and Substance Abuse
5082214 Services for the treatment of compulsive gambling disorder and
5092215 educational programs related to such disorde r. All other unclaimed
5102216 prize money shall be added to the pool from which future priz es are
5112217 to be awarded or used for special prize promotions.
512-
513-SECTION 4. AMENDATORY 3A O.S. 2021, Section 733, is
2218+SECTION 11. AMENDATORY 3A O.S. 2021, Section 733, is
5142219 amended to read as follows:
515-
5162220 Section 733. To ensure the financial integrity of the lottery ,
5172221 the Oklahoma Lottery Commis sion through its board of trustees shall:
518-
5192222 1. Submit quarterly and annual reports to the Governor, State
520-Auditor and Inspector, Oklahoma State Bureau of Investigation,
2223+Auditor and Inspector, Oklahoma State Bureau of Investigation, and
5212224 Attorney General, and the oversight committee created b y Section 734
5222225 of this title, disclosing the total lottery revenues, prize
5232226 disbursements, operating expens es, and administrative expenses of
5242227 the Commission during the reporting period . The annual report shall
5252228 additionally describe the organizational struct ure of the Commission
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527-ENR. S. B. NO. 612 Page 13
5282229 and summarize the functions performed by each organizational
5292230 division within the Co mmission;
530-
5312231 2. Adopt a system of internal audits;
532-
5332232 3. Maintain weekly or more frequent records o f lottery
5342233 transactions, including the distribution of ti ckets or shares to
5352234 retailers, revenues received, claims for prizes, prizes paid, prizes
5362235 forfeited, and other financial transactions of the Commission;
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5382262 4. Contract with a certified public accountant or firm for an
5392263 annual financial audit of the Commission. The certified public
5402264 accountant or firm shall have no financial interest in any vendor
5412265 with whom the Commission is under contract. The certified public
5422266 accountant or firm shall present an audit rep ort not later than
5432267 seven (7) months after the end of the fiscal year. The certified
5442268 public accountant or firm shall evaluate the internal auditing
5452269 controls in effect during the audit period. The cost of this annual
5462270 financial audit shall be an operating e xpense of the Commission.
5472271 The State Auditor and Inspecto r may at any time conduct an audit of
5482272 any phase of the operations of the Commission at the expense of th e
5492273 Commission and shall receive a copy of the annual independent
5502274 financial audit. A copy of any audit performed by the certified
5512275 public accountant or fi rm or the State Auditor and I nspector shall
5522276 be transmitted to the Governor, the President Pro Tempore of the
553-Senate, and the Speaker of the House of Representatives, the State
554-Auditor and Inspector, and the cochairs of the oversight committee
555-created in Section 734 of this title;
556-
2277+Senate, and the Speaker of the House of Representatives, and the
2278+State Auditor and Inspect or, and the cochairs of the oversight
2279+committee created in Section 734 of this title ;
5572280 5. Submit to the Office of Management and Enterprise Services
5582281 and the State Auditor and Inspector by June 30 of each year a copy
5592282 of the annual operating budget for the C ommission for the next
5602283 fiscal year. This annual operatin g budget shall be approved by the
5612284 board and be on such forms as prescribed by the Office of Management
5622285 and Enterprise Services; and
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5642312 6. For informational purposes only, submit Submit to the Office
5652313 of Management and Enterprise Services on September 1 by October 1 of
5662314 each year a proposed operating budget for the Commission for the
5672315 succeeding fiscal year. The budget proposal shall also be
5682316 accompanied by an estimate of the net proceeds to be deposited in to
5692317 the Oklahoma Education Lottery Trust Fund during the s ucceeding
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571-ENR. S. B. NO. 612 Page 14
5722318 fiscal year. The budget estimate shall be on such forms as
5732319 prescribed by the Office of Manage ment and Enterprise Services.
574-
575-SECTION 5. AMENDATORY 51 O.S. 2021, Sec tion 24A.5, is
2320+SECTION 12. AMENDATORY 51 O.S. 2021, Sec tion 24A.5, is
5762321 amended to read as follows:
577-
5782322 Section 24A.5. All records of public bodie s and public
5792323 officials shall be open to any person for inspection, copying, or
5802324 mechanical reproduction during regular business hours; provid ed:
581-
5822325 1. The Oklahoma Open Reco rds Act, Sections 24A.1 through 24A.30
5832326 of this title, does not apply to records specif ically required by
5842327 law to be kept confidential including:
585-
5862328 a. records protected by a sta te evidentiary privilege
5872329 such as the attorney -client privilege, the work
5882330 product immunity from discovery and the identity of
5892331 informer privileges,
590-
5912332 b. records of what tran spired during meetings of a public
5922333 body lawfully closed to the public such as executive
5932334 sessions authorized under the Oklahoma Open Meeting
5942335 Act,
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5962362 c. personal information w ithin driver records as defined
5972363 by the Driver’s Privacy Protection Act, 18 United
5982364 States Code, Sections 2721 through 2725,
599-
6002365 d. information in the files of the Board of Medico legal
6012366 Investigations obtained pursuant to Sections 94 0 and
6022367 941 of Title 63 of the O klahoma Statutes that may be
6032368 hearsay, preliminary unsubstantiated investigation -
6042369 related findings, or confidential medical information,
6052370 or
606-
6072371 e. any test forms, question banks a nd answer keys
6082372 developed for state licensure examinat ions, but
6092373 specifically excludi ng test preparation materials or
6102374 study guides, or
611-
6122375 f. last names, addresses, social sec urity numbers or tax
6132376 identification numbers , and proof of identification
614-
615-ENR. S. B. NO. 612 Page 15
6162377 submitted to the Oklahoma Lottery Commission by
6172378 persons claiming a lotter y prize;
618-
6192379 2. All Social Security numbers i ncluded in a record may be
6202380 confidential regardless of the person ’s status as a public employee
6212381 or private individual and may be redacted or delete d prior to
6222382 release of the record by the public body;
623-
6242383 3. Any reasonably segregable portion of a record contain ing
6252384 exempt material shall be provided a fter deletion of the exempt
6262385 portions; provided however, the Department of Public Safety shall
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6272412 not be required to assemble for the requesting perso n specific
6282413 information, in any format, from driving records relating to any
6292414 person whose name and date of birt h or whose driver license num ber
6302415 is not furnished by the requesting person.
631-
6322416 The Oklahoma State Bureau of In vestigation shall not be required
6332417 to assemble for the requesting person any criminal history records
6342418 relating to persons whose names, dates of birth, and other
6352419 identifying information required by the Oklahoma State Bureau of
6362420 Investigation pursuant to admin istrative rule are not furnished by
6372421 the requesting person;
638-
6392422 4. Any request for a record which contains individ ual records
6402423 of persons, and the cost of copying, reproducing or cert ifying each
6412424 individual record is otherwise prescribed by state law, the cost m ay
6422425 be assessed for each individual reco rd, or portion thereof requested
6432426 as prescribed by state law. Otherwise , a public body may charge a
6442427 fee only for recovery of the reasonable , direct costs of record
6452428 copying, or mechanical reproduction. Notwithstanding any state or
6462429 local provision to the co ntrary, in no instance shall the record
6472430 copying fee exceed twenty -five cents ($0.25) per page for records
6482431 having the dimensions of eight an d one-half (8 1/2) by fourteen (14)
6492432 inches or smaller, or a maximum of One Dol lar ($1.00) per copied
6502433 page for a certified copy. However, if the request:
651-
6522434 a. is solely for commercial purpos e, or
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6542461 b. would clearly cause excessive disruption of the
6552462 essential functions of the public body,
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6592463 then the public body may charge a reasonable fee to recover the
6602464 direct cost of record se arch and copying; however, publication in a
6612465 newspaper or broadcast by n ews media for news purposes shall not
6622466 constitute a resale or use of a record for trade or commercial
6632467 purpose and charges for providing copies of e lectronic data to the
6642468 news media for a news purpose shall not exceed the direct cost of
6652469 making the copy. The fee charged by the Department of Public Safety
6662470 for a copy in a compu terized format of a record of the Department
6672471 shall not exceed the direct cost of making the copy unless the fee
6682472 for the record is otherwise set by law.
669-
6702473 Any public body establishing fees un der this act shall post a
6712474 written schedule of the fees at its princi pal office and with the
6722475 county clerk.
673-
6742476 In no case shall a search fee be charged when the release of
6752477 records is in the public interest, including, but not limited to,
6762478 release to the news med ia, scholars, authors and taxpayers see king
6772479 to determine whether tho se entrusted with the affairs of the
6782480 government are honestly, faithfully, and competently performing
6792481 their duties as public servants.
680-
6812482 The fees shall not be used for the purpose of discoura ging
6822483 requests for information or as obs tacles to disclosure of reque sted
6832484 information;
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6842510
6852511 5. The land description tract index of all recorded instrum ents
6862512 concerning real property required to be kept by the county clerk of
6872513 any county shall be available for ins pection or copying in
6882514 accordance with the provisions of the Oklahoma Open Records Act;
6892515 provided, however, the index shall not be copied or mechani cally
6902516 reproduced for the purpose of sal e of the information;
691-
6922517 6. A public body must provide prompt, reasonable access to its
6932518 records but may establis h reasonable procedures which protect the
6942519 integrity and organization of its records and to prevent excessiv e
6952520 disruptions of its essential function s. A delay in providing access
6962521 to records shall be limited solely to t he time required for
6972522 preparing the requested documents and the avoid ance of excessive
6982523 disruptions of the public body’s essential functions. In no event
6992524 may production of a current requ est for records be unreasonably
7002525 delayed until after completion of a pri or records request that will
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7032526 take substantially longer than the curr ent request. Any public body
7042527 which makes the requested records available on t he Internet shall
7052528 meet the obligation o f providing prompt, reasonable access to its
7062529 records as required by thi s paragraph; and
707-
7082530 7. A public body shal l designate certain persons w ho are
7092531 authorized to release records of the public body for inspection,
7102532 copying, or mechanical reproduction. At leas t one person shall be
7112533 available at all times to release records during the regular
7122534 business hours of the publi c body.
7132535
714-SECTION 6. REPEALER 3A O.S. 2021, Section 706, is hereby
715-repealed.
716-
717-SECTION 7. This act shall become effective November 1, 2023.
718-
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721-Passed the Senate the 24th day of May, 2023.
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2561+SECTION 13. REPEALER 3A O.S. 2021, Sections 706 and 734,
2562+are hereby repealed.
2563+SECTION 14. This act shall become effective November 1, 2023.
2564+Passed the Senate the 7th day of March, 2023.
7222565
7232566
7242567
7252568 Presiding Officer of the Senate
7262569
7272570
728-Passed the House of Representat ives the 26th day of April, 2023.
2571+Passed the House of Representatives the ____ day of __________,
2572+2023.
7292573
7302574
7312575
7322576 Presiding Officer of the House
7332577 of Representatives
7342578
735-OFFICE OF THE GOVERNOR
736-Received by the Office of the Governor this _______ _____________
737-day of _________________ __, 20_______, at _______ o'clock _______ M.
738-By: _________________________________
739-Approved by the Governor of the State of Oklahoma this _____ ____
740-day of _________________ __, 20_______, at _______ o'clock _______ M.
741-
742- _________________________________
743- Governor of the State of Oklahoma
744-
745-
746-OFFICE OF THE SECRETARY OF STATE
747-Received by the Office of the Secretary of State this _______ ___
748-day of __________________, 20 _______, at _______ o'clock _______ M.
749-By: _______________________________ __
2579+