SB1399 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 2nd Session of the 59th Legislature (2024) COMMITTEE SUBSTITUTE FOR ENGROSSED SENATE BILL NO. 1399 By: Hall of the Senate and McBride and Wallace of the House COMMITTEE SUBSTITUTE An Act relating to state property; creating the Oklahoma Capital Assets Maintenance and Protection Act; creating the Oklahoma Capital Ass ets Maintenance and Protection Fund; establishing revolving fund characteristics; authorizing and limiting allocation, budgeting, and expenditure of funds; requiring certain budgeting and expenditure procedures ; authorizing entry into memoranda of understandings; limiting memoranda of understandings; clarifying legal application; authorizing certain authority related to real and personal property acquisition, improvement, and disposition ; requiring certain reporting; establishing reporting criteria; creating the Oklahoma Capital Assets Management and Protection Board; providing for membership; establishing appointing authorities; providing for selection of Board leadership; providing for the development and adoption of the OCAMP -Higher Education Five -year Plan, the OCAMP-Tourism and Recreation Five-year Plan, and the OCAMP-State Five-year Plan; allocating monetary resources to such plans in certain proportions; requiring biennial update of plans by Board; requiring submission of certain reports electronically; providing for administrative assistance from the Office of Management and Enterprise Services and the Oklahom a Capitol Improvement Authority; authorizing and limiting the SB1399 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 utilization of funds directed by the Board; amending 68 O.S. 2021, Section 1353, as las t amended by Section 2, Chapter 290, O.S.L. 2023 (68 O.S. Supp. 2023, Section 1353), which relates to apportionment of sales tax revenues; providing for certain annual apportionment to the Oklahoma Capital Ass ets Maintenance and Protection Fund; providing for noncodification; provi ding for codification; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE S TATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law not to be codified in the Oklahoma Statutes reads as follows: This act shall be known and may be cited as the "Oklahoma Capital Assets Maintenance and Protection Act". SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 188B of Title 73, unless there is created a duplication in numbering, reads as follows: A. There is hereby created in the S tate Treasury a revolving fund for the Oklahoma Capitol Improvement Authority to be designated the "Oklahoma Capital Ass ets Maintenance and Protection Fund" (OCAMP Fund). The fund shall be a continuing fund , not subject to fiscal year limitations, and shall consist of all monie s received by the Oklahoma Capitol Improv ement Authority eligible under law and directed for deposit to the fund. All monies accruing to the credit of said fund are hereby appropriated an d may be allocated, budgeted, and expended by the Oklahoma Capitol Improvement Authority as SB1399 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 directed by the Oklahoma Capital Assets Management and Protection Board created in Section 3 of this act. Such allocations, budgeting, and expenditures shall strictly adhere to the specific terms, limitations, purposes, and requirements described in the directive adopted by the Oklahoma Capital Assets Management and Protection Board. Expenditures from said fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. B. The Oklahoma Capitol Improvement Authority shall be authorized to enter in to memoranda of understan ding with agencies, departments, and subdivisions of the state as provided by law and as deemed necessary by the Authority to administer expenditures from and allocations and deposits to and from the Oklahoma Capital Ass ets Maintenance and Protection Fund; provided that such memoranda of understanding do not co nflict with or impede t he administration of capital projects speci fically authorized by law or directed by the Oklahoma Capital Assets Management and Protection Board. Such memoranda of understanding shall not constitute a legal obli gation of the State of Oklahoma. C. Limited to the extent required for projects specifically authorized under the provisions of this act, the Oklahoma Capitol Improvement Authority shall be author ized to: SB1399 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Acquire real property tog ether with improvements located thereon and personal property; 2. Provide for the construction of improvements to real property and to provide funding for rep airs, refurbishments, deferred maintenance, and improvement s to real and personal property; 3. Hold title to property and improvements as necessary to comply with legal directives and authorizations; and 4. Lease, transfer, and otherwise legally dispose of property and improvements as necessary to comply with le gal directives and authorizations. D. No later than January 15 annually, the Okl ahoma Capitol Improvement Authority shall submit electronically to the Governor, the Speaker of the Oklahoma House of Representatives, the President Pro Tempore of the Oklahoma State Senate, the Appropriations and Budget Chair of the Oklahoma House of Repr esentatives, and the Appropriations Chair of the Oklahoma State Senate a report detailing impacts to the balance of the Oklahoma Capital Ass ets Maintenance and Protection Fund occurring in the prior calendar year, including , but not limited to, all distributions, expenditures, c ollections, deposits, and investment returns of the Oklahoma Capital Ass ets Maintenance and Protection Fund. SB1399 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 188A of Title 73, unless there is created a duplication in numbering, reads as follows: A. There is hereby created the Oklahoma Capital Assets Management and Protection Board (OCAMP Board). The Board shall develop plans and adopt authorizations directing the Oklahoma Capitol Improvement Authority on the utilization of Oklahoma Capital Assets Maintenance and Protection Fund monies. B. The Board shall consist of eleven (11) members to be appointed as follows: 1. Three members appointed by the Speaker of the Oklahoma House of Representatives; 2. Three members appointed by the President Pro Tempore of the Oklahoma State Senate; 3. Three members appointed by the Governor , at least one of whom shall have no less than ten (10) years experience in the construction industry; 4. The Chancellor of Higher Education or a designee; and 5. The Executive Director of the Oklahoma Tourism and Recreation Department or a des ignee. C. The chair and vice-chair of the Board shall be elected by the Board members at the first meeting of the Board and shall preside over meetings of the Board and perform other duties as may SB1399 HFLR Page 6 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 be required by the Board. The Board shall elect a chair a nd vice- chair no less than once a calendar year. D. 1. The Board shall develop and adopt the following five- year plans to provide for allocations and expenditures of the Oklahoma Capital Ass ets Maintenance and Protection Fund as follows: a. the OCAMP-Higher Education Five-year Plan, for the maintaining and repairing of state-owned properties and buildings of public institutions of higher learning, b. the OCAMP-Tourism and Recreation Five-year Plan, for the maintaining and repairin g of properties and buildings of state parks operated by the Oklahoma Tourism and Recreation Department , and c. the OCAMP-State Five-year Plan, for the maintaining and repairing of all state-owned properties and buildings. 2. The Board shall allocate Oklahoma Capital Assets Maintenance and Protection Fund monies to such Five-year Plans in the following proportions: a. the OCAMP-Higher Education Five-year Plan shall be allocated fifty-two percent (52%) of such monies. Such amount shall be further allocated fifty-five percent (55%) for public four-year institutions of higher learning considered research universities , SB1399 HFLR Page 7 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 twenty-five percent (25%) for public four-year institutions of higher learning not considered research universities , and twenty percent (20%) for public two-year institutions of higher learning, b. the OCAMP-Tourism and Recreation Five-year Plan shall be allocated twenty-four percent (24%) of such monies, and c. the OCAMP-State Five-year Plan shall be allocated twenty-four percent (24%) of such monies. E. The Board shall update each Five-year Plan no less often than biennially. Upon the adoption of such plans and upon each update to such plans, a report detailing such plans shall be submitted by electronic means to the Governor, the Speaker of the House of Representatives , and the President Pro Tempore of the Senate. F. The Office of Management and Ent erprise Services, with the advice and assistance of the Oklahoma Capitol Improvement Authority , shall provide staffing for the Board and other such assistance as the Board may require. G. The Board may direct the Oklahoma Capitol Imp rovement Authority to allocate, budget, and expend, either directly or under the terms of lawfully entered into memorand a of understanding with other state entities, monies from the Oklahoma Capital Ass ets Maintenance and Protection Fund on any project or item that has been SB1399 HFLR Page 8 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 included in an applicable Five-year Plan authorized under the provisions of this act for no less than one (1) year. SECTION 4. AMENDATORY 68 O.S. 2021, Section 1353, as last amended by Section 2, Chapter 290, O.S.L. 2023 (68 O.S. Sup p. 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 Soci al Security Act and to provide revenues for the su pport 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 require ments for the Oklahoma Tax Commission and Office of Management and Enterprise Services Joint Computer Enhancement Fund provided by Section 265 of this title , and further subject to the appor tionment requirement provided in subsection D of this section , shall be apportioned as follows: 1. Except as provided in subsection C 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 Legi slature: Fiscal Year Amount FY 2003 and FY 2004 86.04% FY 2005 85.83% SB1399 HFLR Page 9 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 therea fter 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: (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%), d. for FY 2022 and each fiscal year thereafter, ten and forty-six one-hundredths percent (10.46%); 3. The following amo unts shall be paid to the State Treasurer to be placed to the credit of the Teach ers' Retirement System Dedicated Revenue Revolving Fund: SB1399 HFLR Page 10 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 m onth 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 fiscal year th ereafter 5.0%; 4. a. except as otherwise provided in subp aragraph 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 SB1399 HFLR Page 11 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Capita l 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 b e placed to the credit of the Oklahoma Route 66 Commission Revolving Fund, but in no event shall such apportionment exceed Six Million Six Hundred Thousand Dollars ($6,600,000.00) in any fiscal year, and b. any amounts which exceed the limitations of subparagraph a of this paragraph 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 Improvement and Operations Revo lving Fund, but in no event shall such apportionment exceed the total amount apportioned pursuant to this paragraph for the fiscal year ending on June 30, 2015. Any SB1399 HFLR Page 12 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 amounts which exceed the limita tions of this paragraph shall be placed to the credit of th e 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 municipality or county which le vies 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 municipality or county exempted by the provisions of Section 1357.10 of this title a nd subsection F of Section 2701 of this title. The Oklahom a 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 pursu ant to subsection A of this section, there shall be apportioned the following amo unts: 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 Fu nd created in Section 1501 of Title 69 of the Oklahoma Stat utes, 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; SB1399 HFLR Page 13 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. For the month end ing September 30, 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 o f the Oklahoma Railroad Maintenanc e Revolving Fund created in Section 309 of Titl e 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 Mainte nance Fund created in Section 1501 of Title 69 of the Oklah oma 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 the credit of the State Highway Construction and Maintenance Fund created in Section 1501 of Title 69 of the Oklahoma Statutes, and SB1399 HFLR Page 14 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. Two Million Dollars ($2,000,000.00) to the c redit of 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 Constructio n 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 the fiscal year beginning July 1, 20 28, and for each fiscal year thereafte r, Fifty Million Dollars ($50,000,000.00) shall be placed to the credit of the Oklahoma Capital Ass ets Maintenance and Protection Fund created in Section 2 of this act. SECTION 5. This act shall become effective November 1, 2024. COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated 04/11/2024 - DO PASS, As Amended.