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SENATE FLOOR VERSION
February 21, 2024
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1399 By: Hall of the Senate
and
Wallace of the House
[ state fiscal affairs - investment - guidelines -
fund - report - funds - membership - reimbursement -
Commission - plans - rules - performance audit -
apportionment - codification - effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE 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 monies 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
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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 maximizati on.
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.
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, not including any appropriations
or apportionments to the fund, as determined by the Treasu rer, not
to exceed Seventy-five Million Dollars ($75,000,00 0.00), to the
State Asset Legacy Fund created pursuant to Section 2 of this act .
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For fiscal year 2025 and subsequent fiscal years , subject to the
availability of funds, the State Asset Legacy Commission may request
an additional 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 insufficient due to lack of liquid assets
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 codified
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 subjec t to fiscal year
limitations, and shall consist of monies designated for deposit from
the Oklahoma Long-Range Capital Planning Legac y 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
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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 agai nst claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment . 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:
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 Education 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 be elec ted 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 incurred in the performance of their
duties.
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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 th e planned expenditures shall
be for public research uni versities, and
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 by 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 deposits 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 Planning Com mission pursuant to Section 901 of
Title 62 of the Oklahoma Statutes. The Commission shall biennially
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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 Managemen t 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.
G. The five-year plans created pursuant to this secti on shall
be subject to performance audits by the Legislative Office of Fiscal
Transparency upon request b y 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 t he 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 pursuant to the provisions of the
Oklahoma Sales Tax Code, subject to the apportionment requirements
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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 app ortioned 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 appropriation by the Legislature:
Fiscal Year Amount
FY 2003 and FY 2004 86.04%
FY 2005 85.83%
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 shall 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 2020, ten and forty-six one-
hundredths percent (10.46%),
c. for FY 2021:
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(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 beginnin g 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%);
3. The following amounts shall be paid to the State Treasurer
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
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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
the State Treasurer to be further ap portioned 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
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apportionment exceed Six Million Six Hund red
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 Histor ical Society Capital
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.
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C. From the monies that would otherwise be apportioned to the
General Revenue Fund pursuant to subsection A of this sectio n, 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
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 Sep tember 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 F und
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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:
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 o f
the Oklahoma Railroad Mai ntenance 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.
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D. For fiscal year 2029 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 amoun t of Fifty Million Dollars ( $50,000,000.00).
SECTION 4. This act shall become effective July 1, 2024.
SECTION 5. It being immediately necessary for the preser vation
of the public peace, health or safety, an emergency is he reby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
February 21, 2024 - DO PASS AS AMENDED