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ENGROSSED SENATE
BILL NO. 1399 By: Hall of the Senate
and
McBride 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 to be codified
in the Oklahoma Statutes as Section 34.602 of Title 62, un less 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 sub ject to
fiscal year limitations, and shall consist of surplus monies and
savings appropriated by the Legislature 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 invested. The risk of large losses shall be
minimized by diversifying the investments in the fund, including the
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length of time of the investment, unless, under the circumstances,
it is clearly prudent not to do so. The investment managers may
sell investments and realize losses if such action is considered
advantageous to longer -term return maximization.
C. The fund principal shall consist of monies which are
deposited to the fund. Notwithstanding any other provisions of law,
income and investment return 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 o f the investments
and assets in the Oklahoma Long -Range Capital Planning Legacy Fund
and the increase in value from the previous fiscal year.
E. Except as provided for in subsection F of this section, upon
a determination by the Treasurer, through the rep ort 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 forty percent (40%) of
the increase in value of the fund, not including any appropriations
or apportionments to the fund, as determined by the Treasurer, not
to exceed Seventy-five Million Dollars ($75,000,000.00), to the
State Asset Legacy Fund create d pursuant to Section 2 of this act .
For fiscal year 2025 and subsequent fiscal years , subject to the
availability of funds, the State Asset Legacy Commission may request
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an additional amount not to exceed Fifty Million Dollars
($50,000,000.00) for transf er to the State Asset Legacy Fund .
F. Investment managers ap pointed pursuant to subsection B of
this section shall maintain a reasonable proportion of liquid assets
in the Oklahoma Long -Range Capital Planning Legacy Fund in order to
facilitate any expecte d 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 subject to fiscal year
limitations, and shall consist of monies designated fo r 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
buildings pursuant to the procedures set forth in subsection C of
this section. Expenditures from the fund shall be made upon
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warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office o f 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 Commiss ion to
develop plans for expenditures from the State Asset Legacy Fund.
The Commission shall consist 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 Department or a designee.
A chair of the Commission shall be 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, pursuant to the State Travel
Reimbursement Act, for expenses incurred 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:
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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 shall be subject to the
following limitations:
a. thirty percent (30%) of the planned expenditures shall
be for public research universities, and
b. seventy percent (70%) of the planned expenditures
shall be for all other public institutions of higher
learning;
2. For the maintaining and repairing 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 pursuant 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 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
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means to the Governor, the President Pro Tempore of the Sen ate, and
the Speaker of the House of Representatives.
E. The Commission shall have the authority to promulgate rules
and regulations necessary to implement 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 require.
G. The five-year plans created pursuant to this section 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 the 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 functions of the state
government of Oklahoma, and for this purpose it is hereby expressly
provided that, revenues derived pursuant to the provisions of the
Oklahoma Sales Tax Code, subject to the apportionment requirements
for the Oklahoma Tax Commission and Office of Management and
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Enterprise Services Joint Computer Enhancement 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 Revenue 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 Reform Revolving Fund of
the State Department of Education:
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 beginning September 1, 2020,
through the month ending June 30, 2021, eleven
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 fiscal 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 apportioned as
follows:
(1) twenty-four percent (24%) shall be placed to the
credit of the Oklahoma Tourism Promotion
Revolving Fund, but in no event shall such
apportionment exceed Five Million Dollars
($5,000,000.00) in any fiscal 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 no event shall such
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apportionment exceed Six Million Six Hund red
Thousand Dollars ($6,600,000.00) in any fiscal
year, and
b. any Any amounts which exceed the limitations of
subparagraph a of this paragraph shall be placed to
the credit of the General Reven ue 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
Improvement and Operations Revolving Fund, but in no event shall
such apportionment exceed the total amount app ortioned pursuant to
this paragraph for the fiscal year ending on June 30, 2015. Any
amounts which exceed the limitations of this paragraph shall be
placed to the credit of the General Revenue F und.
B. Provided, for the fiscal year beginning July 1, 2007, and
every fiscal year thereafter, an amount of revenue shall be
apportioned to each municipality or county which levies a sales tax
subject to the provisions of Section 1357.10 of this title an d
subsection F of Section 2701 of this title equal to the amo unt of
sales tax revenue of such municipality or county exempted by the
provisions of Section 1357.10 of this title and subsection F of
Section 2701 of this title. The Oklahoma Tax Commission sh all
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 section, there
shall be apportioned the following amounts:
1. For the month ending August 31, 2019:
a. Nine Million Six Hundred Thousand Dollars
($9,600,000.00) 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;
2. For the month ending September 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 of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of T itle 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
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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 Revolving 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 t he 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 3 09 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 Fund created pursuant to Section
1 of this act the amount of Fifty Million Dollars ($50,000,000.00).
SECTION 4. There is hereby appropriated to the Office of the
State Treasurer for deposit in the Oklahoma Long -Range Capital
Planning Legacy Fund, from any monies not otherwise appropriated
from the General Revenue Fund of the State Treasu ry for the fiscal
year ending June 30, 2023, the sum of Five Hundred Million Dollars
($500,000,000.00).
SECTION 5. This act shall become effective July 1, 2024.
SECTION 6. It being immediately necessary for the preservatio n
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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Passed the Senate the 11th day of March, 2024.
Presiding Officer of the Senate
Passed the House of Representatives the _ ___ day of __________,
2024.
Presiding Officer of the House
of Representatives