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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 1399 By: Hall
COMMITTEE SUBSTITUTE
An Act relating to state fiscal affairs; creating the
Oklahoma Long-Range Capital Planning Legacy Fund;
providing sources of funds; requiring the State
Treasurer to appoint investment managers;
establishing investment guidelines; authorizing
realization of losses under certain circumstance;
requiring income and returns to accrue to the balance
of the fund; requiring annual report; providing for
transfer of funds; requiring managers to maintain
certain proportion of liquidity in the fund;
providing for transfer amount upon insufficient
liquidity; creating the State Asset Legacy Fund ;
providing sources of funds; providing for
expenditures from fund; requi ring expenditures to be
detailed in certain data feed; creating the State
Asset Legacy Commission; designating membership;
requiring election of chair; providing for quorum;
authorizing certain reimbursement of expenses;
prescribing duties of the Commission; requiring
development and updating of certain expenditure
plans; requiring submission of plans; authorizing th e
promulgation of rules; requiring the Office of
Management and Enterprise Services and the Deputy
Treasurer for Debt Management to provide required
staffing and assistance; requiring certain
performance audit; amending 68 O.S. 2021, Section
1353, as last amended by Section 2, Chapter 290,
O.S.L. 2023 (68 O.S. Supp. 2023, Section 1353), which
relates to the apportionment of sales tax revenue;
providing apportionment to the Oklahoma Long-Range
Capital Planning Legacy Fund; providing for
codification; providing an effective date; and
declaring an emergency .
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BE IT ENACTED BY THE PEOPLE OF THE STA TE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law t o be codified
in the Oklahoma Statutes as Section 34.602 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a fund to be
known and designated as the “Oklahoma Long-Range Capital Planning
Legacy Fund”. The fund shall be a continuing fund, not subject to
fiscal year limitations , and shall consist of surplus m onies and
savings appropriated by the Le gislature and all apportionments.
B. The State Treasurer shall appoint qualified investment
managers to provide for the investment of the monies of the fund.
The investments shall be consistent with the manner in which state
retirement funds are inve sted. The risk of large losses shall be
minimized by diversifying the investments in the fund, including the
length of time of the investment, unless, under the ci rcumstances,
it is clearly prudent not to do so. The investment managers may
sell investments and realize losses if su ch action is considered
advantageous to longer -term return maximization.
C. The fund principal shall consist of monies which are
deposited to the fund. No twithstanding any other provisions of law,
income and investment retur n on fund principal shall accrue to the
fund.
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D. For each fiscal year, the Treasurer shall make available a
report on its website detailing the present value of the investments
and assets in the Oklahoma Long-Range Capital Planning Legacy Fund
and the increase in value from the previo us fiscal year.
E. Except as provided for in s ubsection F of this section, upon
a determination by the Treasurer, through the report provided
pursuant to subsection D of this section, of the increase in the
value of the Oklahoma Long-Range Capital Planning Legacy Fund, the
State Asset Legacy Commission , created pursuant to Section 2 of this
act, may make a request for transfer of up to fo rty percent (40%) of
the increase in value of t he fund, as determined by the Treasu rer,
not to exceed Seventy-five Million Dollars ($75,000,000.00), to the
State Asset Legacy Fund created pursuant to Section 2 of this act .
For fiscal year 2025, subject to the availability of funds, the
State Asset Legacy Commission may request an amount not to exceed
Fifty Million Dollars ( $50,000,000.00) for transfer to the State
Asset Legacy Fund.
F. Investment managers appointed pursuant to subsection B of
this section shall maintain a reasonabl e proportion of liquid assets
in the Oklahoma Long-Range Capital Planning Legacy Fund in order to
facilitate any expected transfers requested pursuant to subsection E
of this section. In the event the balance of the Oklahoma Long-
Range Capital Planning Legacy Fund is insufficient or the cash
available in the fund is insuffi cient due to lack of liquid assets
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to make the transfers required pursuant to subsection E of this
section, the entire balance available for transfer shall be
transferred to the fund.
SECTION 2. NEW LAW A new section of law to be co dified
in the Oklahoma Statutes as Section 909 of Title 62, unless there is
created a duplication in numbering, reads as follows:
A. There is hereby created the State Asset Legacy Fund. The
fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of monies designated for deposit from
the Oklahoma Long-Range Capital Planning Legacy Fund created
pursuant to Section 1 of this act . All monies accruing to the
credit of the fund are hereby appropriated and may be expended
exclusively for maintaining and repairing state -owned properties and
buildings pursuant to the procedures set forth in subsection C of
this section. Expenditures from the fund shall be made u pon
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 p ayment. Expenditures from the
State Asset Legacy Fund shall be detailed in a data feed and made
available through the data.ok.gov web portal.
B. There is hereby created the State Asset Legacy Commission to
develop plans for expenditures from the State Asset Legacy Fund .
The Commission shall consi st of eleven (11) members as follows:
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1. The members appointed to the Long -Range Capital Planning
Commission created pursuant to Section 901 of Title 62 of the
Oklahoma Statutes;
2. The Chancellor of Higher Edu cation or a designee ; and
3. The Executive Director of the Oklahoma Tourism and
Recreation Departmen t or a designee.
A chair of the Commission shall b e elected from its membership.
Six members of the Commission shall constitute a quorum. Members of
the Commission shall serve without compensation, but shall be
entitled to reimbursement, purs uant to the State Travel
Reimbursement Act, for expenses incur red in the performance of their
duties.
C. The Commission shall develop three distinct five-year plans
to provide for expenditures from the State Asset Legacy Fund as
follows:
1. For the maintaining and repairing of state-owned properties
and buildings of public institutions of higher learning. Twenty-
five percent (25%) of deposits to the State Asset Legacy Fund shall
be expended pursuant to this plan, which sha ll be subject to the
following limitations:
a. thirty percent (30%) of the planned expenditures shall
be for public research uni versities, and
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b. seventy percent (70%) of t he planned expenditures
shall be for all other public institutions of higher
learning;
2. For the maintaining and repai ring of properties and
buildings of state parks operated b y the Oklahoma Tourism and
Recreation Department. Fifteen percent (15%) of deposits to the
State Asset Legacy Fund shall be expended pursuant to this plan ; and
3. For the maintaining and repairing of all other state-owned
properties and buildings . Sixty percent (60%) of deposit s to the
State Asset Legacy Fund shall be expended pu rsuant to this plan.
D. The plans created by the Commission pursuant to subsection C
of this section shall supplement the existing plans created by the
Long-Range Capital Planni ng Commission pursuant to Section 901 of
Title 62 of the Oklahoma Statutes. The Commission shall biennially
update each five-year plan. Upon the creation of the plans and upon
each update to the plans, the plans shall be submitted by electronic
means to the Governor, the President Pro Tempore of the Senate, and
the Speaker of the House of Representatives.
E. The Commission shall have the authority to promulgate rules
and regulations necessary to i mplement the provisions of this act.
F. The Office of Management and Enterprise Services, with the
advice and assistance of the Deputy Treasurer for Debt Management,
shall provide staffing for the Commission and other such assistance
as the Commission may requ ire.
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G. The five-year plans created pursuant to this section shall
be subject to performance audits by the Legislative Office of Fiscal
Transparency upon req uest by the oversight committee created
pursuant to Section 8013 of Title 62 of the Oklahoma Statutes.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 1353, as
last amended by Section 2, Chapter 290, O.S.L. 2023 (68 O.S. Supp.
2023, Section 1353), is amended to read as follows:
Section 1353. A. It is hereby declared to be t he purpose of
the Oklahoma Sales Tax Code to provide funds for the financing of
the program provided for by the Oklahoma Social Security Act and to
provide revenues for the support of the f unctions of the stat e
government of Oklahoma, and for this purpose it is here by expressly
provided that, revenues derived pur suant to the provisions of the
Oklahoma Sales Tax Code, subject to the apportionment requirements
for the Oklahoma Tax Commission and Office of Manage ment and
Enterprise Services Joint Computer Enha ncement Fund provided by
Section 265 of this title, shall be apportioned as follows:
1. Except as provided in subsection subsections C and D of this
section, the following amounts shall be paid to the State Treasurer
to be placed to the credit of the General Revenu e Fund to be paid
out pursuant to direct appropr iation by the Legislature:
Fiscal Year Amount
FY 2003 and FY 2004 86.04%
FY 2005 85.83%
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FY 2006 85.54%
FY 2007 85.04%
FY 2008 through FY 2022 83.61%
FY 2023 through FY 2027 83.36%
FY 2028 and each fiscal year thereafter 83.61%;
2. The following amounts sh all be paid to the State Treasurer
to be placed to the credit of the Education Ref orm Revolving Fund of
the State Department of Edu cation:
a. for FY 2003, FY 2004 and FY 2005, ten and forty -two
one-hundredths percent (10.42%),
b. for FY 2006 through FY 202 0, ten and forty-six one-
hundredths percent (10.46%),
c. for FY 2021:
(1) for the month beginning July 1, 2020, through the
month ending August 31, 2020, ten and forty -six
one-hundredths percent (10 .46%), and
(2) for the month beginning September 1, 2020,
through the month ending June 30, 2021, el even
and ninety-six one-hundredths percent (11.96%),
and
d. for FY 2022 and each fiscal year thereafter, ten and
forty-six one-hundredths percent (10.46%);
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3. The following amounts shall be paid to the State Treas urer
to be placed to the credit of the Teachers ’ Retirement System
Dedicated Revenue Revolving Fund:
Fiscal Year Amount
FY 2003 and FY 2004 3.54%
FY 2005 3.75%
FY 2006 4.0%
FY 2007 4.5%
FY 2008 through FY 2020 5.0%
FY 2021:
a. for the month beginning July
1, 2020, through the month
ending August 31, 2020 5.0%
b. for the month beginning
September 1, 2020, through
the month ending June 30,
2021 3.5%
FY 2022 5.0%
FY 2023 through FY 2027 5.25%
FY 2028 and each fis cal year thereafter 5.0%;
4. a. except Except as otherwise provided in subparagraph b
of this paragraph, for the fiscal year beginning July
1, 2022, and for each fiscal year thereafter, eighty -
seven one-hundredths percent (0.87%) shall be paid to
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the State Treasurer to be further apportioned as
follows:
(1) twenty-four percent (24%) shall be placed to t he
credit of the Oklahoma Tourism Promot ion
Revolving Fund, but in no event shall such
apportionment exceed Fiv e Million Dollars
($5,000,000.00) in any fisca l year,
(2) forty-four percent (44%) shall be placed to the
credit of the Oklahoma Tourism Capital
Improvement Revolving Fund, but in no event shall
such apportionment exceed Nine Million Dollars
($9,000,000.00) in any fiscal year, and
(3) thirty-two percent (32%) shall be placed to the
credit of the Oklahoma Route 66 Commission
Revolving Fund, but in n o event shall such
apportionment exceed Six Million Six Hundred
Thousand Dollars ($6,600,00 0.00) in any fiscal
year, and
b. any Any amounts which exceed the limitations of
subparagraph a of this pa ragraph shall be placed to
the credit of the General Revenue Fund ; and
5. For the fiscal year beginning July 1, 2015, and for each
fiscal year thereafter, six one -hundredths percent (0.06%) shall be
placed to the credit of the Oklahoma Historical Society Capital
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Improvement and Operations Revolving Fund, but in no ev ent shall
such apportionment exceed the total amount apportioned pursuant to
this paragraph for the fiscal year ending on June 30, 2015. Any
amounts which exceed the limita tions of this paragr aph shall be
placed to the credit of the General Revenue Fund.
B. Provided, for the fiscal year beginning July 1, 2007, and
every fiscal year thereafter, an amount of revenue shall be
apportioned to each m unicipality or county which levies a sales tax
subject to the provisions of Section 1357.10 of this title and
subsection F of Section 2701 of this title equal to the amount of
sales tax revenue of such mu nicipality or county exempted by the
provisions of Section 135 7.10 of this title a nd subsection F of
Section 2701 of this title. The Oklahoma Tax Commission shall
promulgate and adopt rules necessary to implement the provisions of
this subsection.
C. From the monies that would otherwise be apportioned to the
General Revenue Fund pursuant to subsection A of this section, there
shall be apportioned the following amoun ts:
1. For the month ending August 31, 2019:
a. Nine Million Six Hundred Thousand Dollars
($9,600,000.00) to t he credit of the State Highway
Construction and Maintenance Fu nd created in Sectio n
1501 of Title 69 of the Oklahoma Statutes, and
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b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
2. For the month ending September 30, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Main tenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000 .00) to the credit o f
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
3. For the month ending October 31, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolvi ng Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
4. For the month ending November 30, 2019:
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a. Twenty Million Dollars ($20,000,000.00) to the cred it
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes; and
5. For the month ending December 31, 2019:
a. Twenty Million Dollars ( $20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes.
D. For fiscal year 202 9 and subsequent fiscal years, before any
other apportionment otherwise required by this section is made to
the General Revenue Fund , there shall be apportioned to the Oklahoma
Long-Range Capital Planning Legacy Fu nd created pursuant to Section
1 of this act the amount of Fifty Million Dollars ( $50,000,000.00).
SECTION 4. This act shall become effective July 1, 2024.
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SECTION 5. It being immediately necessary for the preser vation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
59-2-3480 QD 2/8/2024 2:41:45 PM