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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1447 By: Thompson (Kristen)
AS INTRODUCED
An Act relating to economic development; creating the
Creating Oklahoma’s Modern Plan for Economic
Transformation and Effectiveness (COMPETE) Act;
providing short title; stating purpose; defining
terms; creating the Oklahoma Office of Ec onomic
Development, Growth, and Expansion ; establishing
purpose of the Office; specifying role of the Office;
creating the Oklahoma Economic Development, Growth,
and Expansion Board; providing for membership;
stating quorum; providing for qualifications for
Board members; stating appointment terms;
establishing Board proce dures for election of chair
and vice chair and presiding of meetings; allowing
for certain reimbursement; permitting membership to
serve on other boards and commissions; subjecting
Board to the provisions of the Oklahoma Open Meeting
Act and Oklahoma Open Records Act; providing for use
of executive sessions by Board; amending 25 O. S.
2021, Section 307, as amended by Section 1 , Chapter
182, O.S.L. 2022 (25 O.S. Supp. 2023, Section 307),
which relates to executive sessions; including
certain entities to exceptions; establishing powers,
duties, and responsibilities of the Board; requiring
selection of an Executive Director of the Oklahoma
Office of Economic Development, Growth, and
Expansion; providing selection criteria; a uthorizing
the Board to determine the Executive Director’s
salary and other compensation; requiring the
Executive Director to consult with the Board over the
administration of the Office; stating other duties of
the Board; establishing powers, duties, and
responsibilities of the Executive Director;
establishing the powers, duti es, and responsibilities
of the Office; authorizing the Office to implement
certain economic strategies to develop and expand
Oklahoma’s economy; amending 75 O.S. 2021, Section
250.4, as amended Section 37, Chapter 310, O.S.L.
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2023 (75 O.S. Supp. 2023, Section 250.4), which
relates to compliance with the Administrative
Procedures Act; exempting Office from certain
violation; creating the Legislative Economic
Evaluation Committee; providing for membership;
requiring legislative review on investments over
certain threshold; specifying information for review;
requiring certain notice of determinations by certain
time; subjecting Committee to the provisions of the
Oklahoma Open Meeting Act and Oklahoma Open Records
Act; providing for use of executive ses sions by
Committee; allowing for review of certain projects by
discretion; amending 74 O.S. 202 1, Section 85.7, as
amended by Section 1, Chapter 339, O.S.L. 2023 (74
O.S. Supp. 2023, Section 85.7), which relates to
acquisitions; exempting certain purchases made by the
Office; creating the Economic Development, Growth,
and Expansion Revolving Fund; stating purpose;
establishing funding procedures; providing for
codification; and dec laring an 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 a s Section 5090 of Title 74, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the “Creating
Oklahoma’s Modern Plan for Economic Transformation and Effectiveness
(COMPETE) Act”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Secti on 5090.1 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. The Legislature has determined that there exists in this
state a need to encourage, stimulate, and support the development
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and expansion of the economy for this state through economic
development, and that the state’s approach to economic development
needs to be modernized to compete nationally and internationally .
B. To achieve the objectives of this act, there is hereby
created a separate and distinct agency, to be known as the Oklahoma
Office of Economic Development, Growth, and Expansion. The Office
shall exercise the powers and duties granted to them by this ac t to
perform an essential governmental function for matters of public
necessity for which public mon ies may be spent and private property
acquired.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5090.2 of Title 74, unless there
is created a duplication in numbering, reads as fol lows:
As used in this act:
1. “Board” means the Oklahoma Economic Development , Growth, and
Expansion Board as created in Section 5 of this act;
2. “Commission” means the Oklahoma Workforce Commission created
in Section 902 of Title 40 of the Oklahoma Stat utes;
3. “Committee” means the Legislative Economic Evaluation
Committee as created in Section 11 of this act;
4. “Critical industry” means industries within O klahoma that
are critical to the state’s economic well-being and strategic plan
for economic growth and development;
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5. “Director” means the Executive Director of the Oklahoma
Office of Economic Development, Growth, and Expansion;
6. “Office” means the Oklahoma Office of Economic Development,
Growth, and Expansion; and
7. “Person” means any individual, group of individuals, or any
partnership, corporation, as sociation, cooperative , or employee
thereof, or any other legal entity .
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5090.3 of Title 74, unless there
is created a duplicat ion in numbering, reads as follows:
A. There is hereby created the Ok lahoma Office of Economic
Development, Growth, and Expansion. The purpose of the Office is to
serve as the state’s lead economic development agency.
B. The Office shall:
1. Be empowered to strategically drive opportunities for
economic growth and diversification ac ross the state;
2. Collaborate across local, regional, and state entities ;
3. Coordinate the funding and investment activities of each
element of the state’s economic development efforts and marketing
campaigns to achieve better results for the state ’s recruitment and
retention of businesses; and
4. Act as the principal point of contact regarding investment
in this state for public officials, businesses, and the public.
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C. The Office shall assume from the Oklahoma Department of
Commerce the role of lead economic development organization for this
state, and with regard to competitive economic development projects,
the Oklahoma Department of Commer ce shall play a support role for
the Office, as further outline d in this act.
SECTION 5. NEW LAW A new section of law to be codifi ed
in the Oklahoma Statutes as Section 5090.4 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created the Oklahoma Economic Development,
Growth, and Expansion Board. The Board shall constitute an
advisory, administrative , and policymaking board and shall consist
of nine (9) voting members, as follows:
1. Three members to be appointed by the President Pro Tempore
of the Senate; provided, at least one appointed member shall be from
a municipality with a po pulation of one hundred thousand (100,000)
people or less;
2. Three members to be appointed by the Speaker of the House of
Representatives; provided, at least one appointed member shall be
from a municipality with a population of one hundred thousand
(100,000) people or less; and
3. Three members to be appointed by the Governor ; provided, at
least one appointed member shall be from a municipality with a
population of one hundred thousand (100,000) people or less.
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B. The following individuals shall serve as nonvoting, ex
officio members:
1. The Executive Director of the Oklahoma Office of Economic
Development, Growth, and Expansion;
2. The chief executive officer of the Oklahoma Workforce
Commission;
3. The Secretary of Transportation , or his or her designee ;
4. The chair of a board of directors, or equivalent, of a group
whose mission is tasked with economic development in Ok lahoma;
5. The chief executive officer, or equivalent, of a state
chamber of commerce in Oklahoma, or his or her designee;
6. The chief executive officer, or equivalent, of an economic
development support organization in Oklahoma, or his or her
designee; and
7. The directors of fiscal staff, or equivalent, assigned to
the Senate and House committees on appropriations and budgeting.
C. Five voting members of the Board shall constitute a quorum,
and the vote of the majority of members present shall be necessary
for any action to be taken by the Board. No vacancy in the
membership of the Board shall impair the rights of a quorum to
exercise and perform all the rights and duties of the Board. The
voting members of this Board shall:
1. Have at least a m inimum of five (5) years of experience
working in the private sector;
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2. Not be employed by any government entity or have been
employed by a government entity within the preceding two-year
period; and
3. Possess expertise in at least one of the following areas:
a. marketing,
b. international commerce,
c. finance or grant administration,
d. state, regional, or local economic development,
e. incentive evaluation programs,
f. law,
g. information technologies,
h. transportation,
i. workforce development,
j. manufacturing,
k. biotechnology,
l. cybersecurity,
m. defense,
n. energy,
o. entrepreneurship, or
p. any other critical industry in this state .
D. For the initial appoin tments of members to the Board, each
appointing authority shall make one appointment for a one-year term,
one appointment for a two -year term, and one appointment for a
three-year term. Thereafter , the terms of the Board shall be for
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three (3) years. Nonvoting members shall service terms coincident
of their terms of office or employment.
E. Vacancies of the Board shall be filled for the unexpired
term of office in the same mann er as the original appointment. The
appointed members may be removed from their position by their
respective appointing authorities in a manner prescribed by law.
F. The Board shall elect a chair, a vice chair and such other
officers deemed necessary to conduct the business of the Board from
among its members. The chair shall preside over meetings of the
Board, and officers shall perform duties as may be required by the
Board. The initial appointments of the Board shall be made within
thirty (30) days after the effective date of this act. The first
meeting of the Board shall be called by the chair no later than
sixty (60) days after the effective date of this act.
G. No member of the Board shall receive a salary or
reimbursement for duties pe rformed as a member of the Board, however
members are eligible to receive travel reimbursement as provided in
the State Travel Reimbursement Act.
H. Members serving on the Board shall be eli gible to serve on
any other state board or commission if such member is otherwise
qualified to hold such appointed office, notwithstanding the
provisions of Section 6 of Title 51 of the Oklahoma Statutes.
I. The meetings of the Board shall be subject to the Oklahoma
Open Meeting Act and the Oklahoma Open Records Act. Any information
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submitted to or compiled by the Board with respect to the marketing
plans, financial statements, trade secrets , or any other
commercially sensitive information of persons, firms, associations,
partnerships, agencies, corporations, or other entities shall be
confidential, except to the exte nt that the person or ent ity which
provided such information , or which is the subject of su ch
information consents to disclosure. Executive sessions may be held
to discuss such materials if deemed necessar y by the Board.
SECTION 6. AMENDATORY 25 O.S. 2021, Section 307, as
amended by Section 1, Chapter 182 , O.S.L. 2022 (25 O.S. Supp. 2023,
Section 307), is amended to read as follows:
Section 307. A. No public body shall hold executive sessions
unless otherwise specifically provided in this section.
B. Executive sessions of public bodies will be permitted only
for the purpose of:
1. Discussing the employment, hirin g, appointment, promotion,
demotion, disciplining or resignation of any individual salaried
public officer or employee;
2. Discussing negotiations concerning employees and
representatives of em ployee groups;
3. Discussing the purchase or appraisal of real property;
4. Confidential communications between a public body and its
attorney concerning a pending investigation, claim, or action if the
public body, with the advice of its attorney, determines that
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disclosure will seriously impair the ability of the public body to
process the claim or co nduct a pending investigation, litigation, or
proceeding in the public interest;
5. Permitting district boards of education to hear evidence and
discuss the expulsion or suspension of a student when requested b y
the student involved or the student’s parent, attorney or legal
guardian;
6. Discussing matters involving a specific handicapped child;
7. Discussing any matter where disclosure of information would
violate confidentiality requirements of state or federal la w;
8. Engaging in deliberations or ren dering a final or
intermediate decision in an individual proceeding pursuant to
Article II of the Administrative Procedures Act;
9. Discussing matters inv olving safety and security at state
penal institutions o r correctional facilities used to house state
inmates;
10. Discussing contract negotiation s involving contracts
requiring approval of the State Board of Corrections, which shall be
limited to members of the public body, the attorney for the public
body, and the immediate staff of the public body. No person who may
profit directly or indirectly by a proposed transaction which is
under consideration may be present or participate in the executive
session; or
11. Discussing the following:
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a. the investigation of a plan or scheme to commit an act
of terrorism,
b. assessments of the vulnerability of government
facilities or public improvements to an act of
terrorism,
c. plans for deterrence or prevention of or protection
from an act of terrorism,
d. plans for response or remediation after an act of
terrorism,
e. information technology of the public body but only if
the discussion specifically identifies:
(1) design or functional schematics that demonstrate
the relationship or connections between devices
or systems,
(2) system configuration information,
(3) security monitoring and response equipment
placement and configuration,
(4) specific location or placement of systems,
components or devices,
(5) system identification numbers, names, or
connecting circuits,
(6) business continuity and disaster planning, or
response plans, or
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(7) investigation information directly related to
security penetrations or denial of services, or
f. the investigation of an act of t errorism that has
already been committed.
For the purposes of this subsection, the term “terrorism” means any
act encompassed by the definitions se t forth in Section 1268.1 of
Title 21 of the Oklahoma Statutes.
C. Notwithstanding the provisions of subsection B of this
section, the following public bodies may hold ex ecutive sessions:
1. The State Banking Board, as provided for under Section 306.1
of Title 6 of the Oklahoma Statutes;
2. The Oklahoma Industrial Finance Authority, as provided for
in Section 854 of Title 74 of the Oklahoma Statutes;
3. The Oklahoma Development Finance Authority, as provided for
in Section 5062.6 of Title 74 of the Okla homa Statutes;
4. The Oklahoma Center for the Advancement of Science and
Technology, as provided for in Section 5060.7 of Title 74 of the
Oklahoma Statutes;
5. The Oklahoma Health Research Committee for purposes of
conferring on matters pertaining to research and development of
products, if public disclosure of the matter discussed would
interfere with the deve lopment of patents, copyrights, products, or
services;
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6. The Workers’ Compensation Commission for the purposes
provided for in Section 20 of Titl e 85A of the Oklahoma Statutes;
7. A review committee, as provided for in Section 855 of Title
62 of the Oklahoma Statutes;
8. The Child Death Review Board for purposes of receiving and
conferring on matters pertaining to materials declared confidential
by law;
9. The Domestic Violence Fatality Review Board as provided in
Section 1601 of Title 22 of the Oklaho ma Statutes;
10. The Opioid Overdose Fatality Review Bo ard, as provided in
Section 2-1001 of Title 63 of the Oklahoma Statutes;
11. All nonprofit foundations, boards, bureaus, commissions,
agencies, trusteeships, authorities, councils, committees, public
trusts, task forces or study groups supported in whole or par t by
public funds or entrusted with the expenditure of public funds for
purposes of conferring on matters pertaining to economic development
including the transfer of property, financing, or the creation of a
proposal to entice a business to remain o r to locate within their
jurisdiction if public disclosure of the matter discussed would
interfere with the development of products or services or if public
disclosure would violate the confidentiality of the business;
12. The Oklahoma Indigent Defense System B oard for purposes of
discussing negotiating strategies in connection with making possible
counteroffers to offers to contract to provide legal representation
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to indigent criminal defendants and indigent juveniles in cases for
which the System must pr ovide representation pursuant to the
provisions of the Indigent Defense Act;
13. The Quality Investment Committee for purposes of discussing
applications and confidential materials pursuant to the terms of the
Oklahoma Quality Investment Act;
14. The Oklahoma Municipal Power Authority established pursuant
to Section 24-101 et seq. of Title 11 of the Oklahoma Statutes and
in its role as an electric utility regulated by the federal
government, for purp oses of discussing security plans and procedures
including, but not limited to, cybersecurity matters; and
15. The Oklahoma Tax Commis sion for purposes of discussing
confidential taxpayer matters as provided in Secti on 205 of Title 68
of the Oklahoma Statutes, and in compliance with subsection E of
this section;
16. The Oklahoma Economic Development, Growth, and Expansion
Board, as provided for in Section 5 of this act; and
17. The Legislative Economic Evaluation Committee, as provided
for in Section 11 of this act.
D. Except as otherwise specified in this subsection, an
executive session for the purpose of discussing the purchase or
appraisal of real property shall be li mited to members of the p ublic
body, the attorney f or the public body and the immediate staff of
the public body. No landowner, real estate salesperson, broker,
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developer or any other person who may profit dir ectly or indirectly
by a proposed transaction co ncerning real property which is under
consideration may be present or participate in the executive
session, unless they are operating under an existing agreement to
represent the public body.
E. No public body may go into an executive session unless the
following procedures are strictly complied with:
1. The proposed executive session is noted on the agenda as
provided in Section 311 of this title;
2. The executive session is authorized by a majority vote o f a
quorum of the members present and the vote i s a recorded vote; and
3. Except for matters considered in executive sessions of the
State Banking Board and the Oklahoma Tax Commission, and which are
required by state or federal l aw to be confidential, any vote or
action on any item of business consi dered in an executive ses sion
shall be taken in public meeting with t he vote of each member
publicly cast and recorded.
F. A willful violation of the provisions of this section shall:
1. Subject each member o f the public body to criminal sanctions
as provided in Section 314 of this title; and
2. Cause the minutes and all other records of the executive
session including tape recordings, to be immediately made public.
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SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5090.5 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. The Oklahoma Economic Development, Growth, and Expansion
Board shall administrate and serve a s an advisory body for policy
encouraging, stimulating, and supporting the development and
expansion of the economy of this state through economic development.
B. 1. The Board shall appoint an Executive Director for the
Oklahoma Office of Economic D evelopment, Growth, and Expansion to
serve at the pleasure of the Board and carry out such powers and
duties conferred upon him or her as presc ribed by the Board. The
Executive Director shall be a nonvoting member of the Board.
2. The Board shall select an Executive Director with experience
that includes, but is not limited to:
a. economic development pr ogram leadership,
b. business development leadership,
c. senior-level board management and leadership,
d. senior-level business and political engagement ,
e. leading business development or business recruitment
teams,
f. creating and implementing sector development
strategies,
g. branding and marketing leadership experience, and
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h. a track record in recruiting companies to a state or
community.
3. The Board shall determine the Executive Director ’s salary
and other compensation such that the Board is nationally competitive
in consistently employing a tale nted and experienced economic
development professional in the position .
C. The Executive Director shall consult with the Board
regarding the administration of the affairs of the Oklahoma Office
of Economic Development, Growth, and Expansion. The Board is
authorized and empowered to require from the Executive Director
complete reports and information relative to t he affairs of the
Office in the time and manner the Board may deem advisable.
D. In addition to the other powers an d duties prescribed by
law, the Board shall:
1. Prescribe rules and policies for the transaction of its
business and the control of the Office;
2. Review and approve the budget and amend to make supplemental
appropriations;
3. Advise in the appointment and compensation for officers,
agents, and employees of the Office;
4. Establish performance-based incentive compensation
structures to enhance organizational and individual p erformance,
both for the Executive Director and his or her employees;
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5. Supervise the letting of all contracts and purchases for the
Office, with all purchases of personal property to be made through
the Office of Management and Enterprise Services;
6. Form committees, which may include r epresentatives who are
not members of the Board, to undertake more extensive study and
discussion on the issues before the Board; and
7. Annually report to the Governor and the Legisl ature
electronically on the complete operation, act ivities, and plans of
the Office, together with such recommendatio ns for future activities
as the Board may deem to be in the best interest of t he state.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5090.6 of Title 74, unless there
is created a duplication in numbering, reads as follows:
Immediately upon the appointment of the Executive Director, he
or she shall become vested with the d uties and powers of the
management and control of the Oklahoma Office of Economic
Development, Growth, and Expansion under such provisions, orders ,
rules, and regulations as may be prescribed by the Oklahoma Economic
Development, Growth, and Expansion Board, and in addition thereto
shall have the following specific powers and duties:
1. To manage and control, under the supervision of the Board,
all economic development projects in this state;
2. To appoint and employ such assista nts, administrative
leadership, clerical help, and other employees as the Board may deem
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necessary, subject to the approval of the Board. The Executive
Director shall fix and determine the salaries and wag es to be paid
under and subject to the rules and r egulations as promulgated by the
Board; and
3. To exercise such powers and duties relat ing to the direction
of the state’s economic development efforts conferred upon the
Office as may be delegated to him or her by the Board.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as S ection 5090.7 of Title 74, unless there
is created a duplication in number ing, reads as follows:
A. The Oklahoma Office of Economic Development, Growth, and
Expansion is granted all powers necessary for the carrying out of
its statutory purposes including, but not limited to, the power to :
1. Administer the provisions of this act or any duty as
directed by the state;
2. Establish a presence for the Office in a location housed
with the Oklahoma Department of Commerce;
3. Administer funds from the Economic Development, Growth, and
Expansion Revolving Fund created in Section 13 of this act;
4. Promulgate rules to carry out the prov isions of this act;
5. Enter into contracts or agreements for studies, professional
services, grant administration and procurement, research projects,
supplies, or any other services the Office deems necessary to carry
out its purpose;
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6. Cooperate with any private, local , state, or national
commission, organization, agency, or group and to make contracts and
agreements for joint programs beneficial to Oklahoma’s economic
development;
7. Hire outside legal counsel as provided in Section 250.4 of
Title 75 of the Oklahoma Statutes;
8. Accept donations, grants, contributions, and gifts from any
public or private sources and dep osit such in the Economic
Development, Growth, and Expansion Revolving Fund;
9. Provide input and authorize an annual plan of work and
marketing plan;
10. Provide guidance, set policy, approve objectives and
conduct frequent reviews of the organization ’s progress to ensure
that the focus remains on its mission;
11. Render advice and assistance and provide services to state
agencies, local and regional economic development entitie s, private
firms, and the other person providing servi ces or facilities for
economic development; and
12. Develop, undertake, and pro vide programs, alone or in
conjunction with any person, for economic research, industrial
development research, and all ot her research that may lead t o
economic development.
B. It shall be the duty of the Office to encourage, stimulate,
and support the development and expansion of the ec onomy of
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Oklahoma. The Office is charged with the dut y and responsibility
to:
1. Create and implement a strategic economic development plan,
including identifying critical industries;
2. Create and implement effective economic development
marketing and promotional programming;
3. Make available, in conjunction and cooperation with
localities, chambers of commerce, in dustrial authorities, and other
public and private groups, to prospective new businesses, basic
information and pertinent factors of interest and concern to such
businesses;
4. Formulate, promulgate, and advance programs throughout the
state for encouraging the location of new businesses in the state
and the retention and growth of existing businesses;
5. Encourage and soli cit private sector involvement, support,
and funding for economic development in this state;
6. Encourage the coordination of economi c development efforts
of public institutions, regions, communities, and private industry
and collect and maintain data on the development and utilization of
economic development capabilities;
7. Encourage the export of p roducts and services; and
8. Advise the Oklahoma Workforce Commission and its educational
and instructional partners of increased workforce needs for
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particular industries or skills in accordance with the Office’s
strategic plan and economic development activities.
C. The Office shall annually update and modi fy its economic
development strategic plan for this state in consultation with the
Governor, Lieutenant Governor, and the Legislature. The Office
shall prepare a report on the economic development strategic plan by
December 30 each year to be electronically distributed to the
Governor, President Pro Tempore of the Senate, the Speaker of the
House of Representatives, and the fisc al directors of their
respective Legislative chambe rs. The Office shall post the report
on their website.
SECTION 10. AMENDATORY 75 O .S. 2021, Section 250.4, as
amended by Section 37, Chapter 310, O.S.L. 2023 (75 O.S. Supp. 2023,
Section 250.4), is amended to read as follows:
Section 250.4. A. 1. Except as is otherwise specifically
provided in this subsection, each a gency is required to comply wit h
Article I of the Administrative Procedure s Act.
2. The Corporation Commission shall be required to comply with
the provisions of Article I of the A dministrative Procedures Act
except for subsections A, B, C and E of Section 303 of this title
and Section 306 of this title. To the extent of any conflict or
inconsistency with Article I of the Administrative Procedures Act ,
pursuant to Section 35 of Article IX of the Oklahoma Constitution,
it is expressly declared that Article I of the Administrative
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Procedures Act is an amendment to and alteration of Sections 18
through 34 of Article IX of the Oklahoma Constitution.
3. The Oklahoma Military Department shall be exempt from the
provisions of Article I of the Administrative Procedures Act to the
extent it exercises its responsibility for military affairs.
Military publications, as defined in Section 801 of Title 44 of the
Oklahoma Statutes, shall be exempt from the provisions of Article I
and Article II of the Administrative Pro cedures Act, except as
provided in Section 251 of this title.
4. The Oklahoma Ordnance Works Authority, the Northeast
Oklahoma Public Facilities Authority, the Oklahoma Office of
Homeland Security and the Board of Trustees of the Oklahoma College
Savings Plan shall be exempt from Article I of the Administrative
Procedures Act.
5. The Transportation Commission and the Department of
Transportation shall be exempt from Article I of the Administrative
Procedures Act to the extent they exercise their authority in
adopting standard specifica tions, special provisions, plans, design
standards, testing procedures, federally imposed requirements and
generally recognized st andards, project pla nning and programming,
and the operation and control of the State Highway System.
6. The Oklahoma State Regents for Higher Education shall be
exempt from Article I of the Administrative Procedures Act with
respect to:
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a. prescribing standards of higher education,
b. prescribing functions and courses of study in each
institution to conform to the standards,
c. granting of degrees and other forms of aca demic
recognition for completion of the prescribed courses,
d. allocation of state-appropriated funds, and
e. fees within the limits prescribed by th e Legislature.
7. Institutional governing boards within The Oklahoma State
System of Higher Education shall be exempt from Article I of the
Administrative Procedures Act.
8. a. The Commissioner of Public Safety and the Director of
Service Oklahoma shall be exempt from Sections 303.1,
304, 307.1, 308 and 308.1 of thi s title insofar as it
is necessary to promu lgate rules pursuant to the
Oklahoma Motor Carrie r Safety and Hazardous Materials
Transportation Act, to ma intain a current
incorporation of federal mo tor carrier safety and
hazardous material regulations.
b. Such rules may be adopted by the Commissioner and
shall be deemed promulgated twenty (20) days after
notice of adoption is pu blished in “The Oklahoma
Register”. Such publication need not set forth th e
full text of the rule but may incorporate the federal
rules and regulations by reference.
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c. Such copies of promulgated r ules shall be filed with
the Secretary as required by Section 251 of this
title.
d. For any rules for which the Commissioner has
discretion to allow variances, tolerances or
modifications from the federal rules and regulations,
the Commissioner shall fully comply with Article I of
the Administrative Procedures Ac t.
9. The Council on Judicial Com plaints shall be exempt from
Section 306 of Article I of the Administrat ive Procedures Act, with
respect to review of the validity or applicability of a rule by an
action for declaratory judgment, or an y other relief based upon the
validity or applicability of a rule, in the district court or b y an
appellate court. A party aggrieved by the validity or applicability
of a rule made by the Council on Judicial Complaints may petition
the Court on the Judici ary to review the ru les and issue opinions
based upon them.
10. The Department of Corrections, State Board of Corrections,
county sheriffs and managers of city jails sh all be exempt from
Article I of the Administrativ e Procedures Act with respect to:
a. prescribing internal management procedures for the
management of the state prisons, county jai ls and city
jails and for the management, supervision and control
of all incarcerated prisoners, and
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b. prescribing internal management procedures for the
management of the probation and parole unit of the
Department of Corrections and for the supervision of
probationers and parolees.
11. The State Board of Education shall be exe mpt from Article I
of the Administrative Procedur es Act with respect to prescribing
subject matter standards as provided for in Section 11-103.6a of
Title 70 of the Oklahoma Statut es.
B. As specified, the following agencies or classes of agency
activities are not required to comply with the provi sions of Article
II of the Administrative Pro cedures Act:
1. The Oklahoma Tax Commission, except as provided in
subsection G of Section 114 0 of Title 47 of the Oklahoma S tatutes;
2. The Commission for Human Servi ces;
3. The Oklahoma Ordnance Works Authority;
4. The Corporation Commission;
5. The Pardon and Parole Board;
6. The Midwestern Oklahoma Development Authority;
7. The Grand River Dam Authority;
8. The Northeast Oklahoma Public Facilities Authority;
9. The Council on Judicial Complaints;
10. The Board of Trustees of the Oklahoma Colle ge Savings Plan;
11. The supervisory or administrative agency of any penal,
mental, medical or eleemosynary institution, only with respect to
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the institutional supervision, custody, control, care or treatm ent
of inmates, prisoners or patients therein; pro vided, that the
provisions of Article II shall apply to and gover n all
administrative actions of the Oklahoma Alcohol Prevention, Training,
Treatment and Rehabilitation Authority;
12. The Board of Regents or employees of any university,
college, or other institution of highe r learning;
13. The Oklahoma Horse Racing Commission, its employees or
agents only with respect to hearin g and notice requirements on the
following classes of violations which are an im minent peril to the
public health, safety and welf are:
a. any rule regarding the running of a race,
b. any violation of medication laws and rul es,
c. any suspension or revocation of an occupation license
by any racing jurisdiction recognized by the
Commission,
d. any assault or other destructive acts with in
Commission-licensed premises,
e. any violation of prohibited devices, laws and rules,
or
f. any filing of false information ;
14. The Commissioner of Public Safety and the Director of
Service Oklahoma only with respect to driver license hearings and
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hearings conducted pursuant to the provisions of Section 2 -115 of
Title 47 of the Oklahoma Statu tes;
15. The Administrator of the Department of Securities only with
respect to hearings conducted pursuant to p rovisions of the Oklahoma
Take-over Disclosure Act of 1985;
16. Hearings conducted by a public agency p ursuant to Section
962 of Title 47 of the Oklahoma Statutes;
17. The Oklahoma Military Department;
18. The University Hospitals Authority, including a ll hospitals
or other institutions operated by the University Hospitals
Authority;
19. The Oklahoma Health Care Au thority Board and the
Administrator of the Oklahoma Health Care Authority; and
20. The Oklahoma Office of Homeland Security; and
21. The Oklahoma Office of Economic D evelopment, Growth, and
Expansion created in Section 4 of this act only to the extent of
hiring outside legal counsel.
SECTION 11. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5090.8 of Title 74, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created within the Legislatu re the
Legislative Economic Evaluation Committee.
B. The Committee shall consist of th e President Pro Tempore of
the Senate, the Speaker of th e House of Representatives, and eight
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(8) other legislative members, serving at the p leasure of their
appointing authority. The President Pro Tempore shall appoint four
(4) members of the Senate and the Speaker shall appoint four (4)
members of the House of Representatives. The President Pro Tempore
and the Speaker shall se rve as co-chairs for the Committee.
C. The Committee shall rev iew financing for individual
incentive packages including, but not limited to, packages offering
tax incentives, funds for economic development, and when the annual
investment exceeds Seventy-five Million Dollars ($75,000,000.00) for
any business, new or existing currently in Oklahoma, or when one or
more of the incentives in the incentive package is not authorized
under current law or an amendment by the Legislature is being sought
to one or more current ly existing incentives inc luded in the
incentive package.
D. The Committee shall review the following information before
making a determination on:
1. The value of the proposed in centive;
2. The estimated return on investment;
3. The time frame for repayme nt of incentive to the state;
4. The average wages of the jobs created by the prospective
economic development;
5. The amount of capital investme nt that is required;
6. The need for enhanced employment opportunities in the
prospective location of the prospective economic development;
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7. The total amount of state incentives receiv ed by the sponsor
for economic development in the past and the return on investment of
those incentives;
8. A list of other existing nondiscretionary incentive s for
which the sponsor or the economic development may qualify; and
9. Any other additional information requested by the Committee.
E. The Oklahoma Office of Economic D evelopment, Growth, and
Expansion shall inform the Senate and House chairs when a project is
ready for review. Within ten (10) business days of receipt of the
incentive package for review, the Office shall present the project
to the Committee. The Committee may approve or disapprove t he
legislative changes needed for the project or defer action. The
Committee shall take action on a project within fifteen (15)
business days of receipt of the incentive package review materials.
The Committee may meet in the interim. The Committee may call upon
the Office representative, the local or regional economic
development group, or other pro ject leaders to answer questions
about the incentive package. Approval shall be by simple majority
vote of the members.
F. The meetings of the Committee shall be subject to the
Oklahoma Open Meeting Act and the Oklahoma Open R ecords Act. Any
information submitted to or compiled by the Office with respect to
the marketing plans, financial statements, trade secrets , or any
other commercially sensitive information of persons, firms,
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associations, partnerships, agencies, corporati ons, or other
entities shall be confidential, except to the extent that the per son
or entity which provided such information , or which is the subject
of such information consents to disclosure . Executive sessions may
be held to discuss such materials if d eemed necessary by the B oard.
G. In addition to the required revie w of certain incentive
packages as prescribed by this section , the Committee may, in its
discretion, also review potential economic development projects
presented by private sector business es or state authorities whic h
would be financed from public funds. The Committee shall not be
required to endorse any such project but may provide
recommendations.
H. Administrative staff s upport shall be provided by the staff
of the Joint Committee on A ppropriations and Budge t and the Office.
SECTION 12. AMENDATORY 74 O.S. 2021, Section 85.7, as
amended by Section 1, Chapter 339, O.S.L. 2023 (74 O.S. Supp. 2023,
Section 85.7), is amended to read as follows:
Section 85.7. A. 1. Except as otherwise provided by the
Oklahoma Central Purchasing Act, or associated rules:
a. every state agency shall initiate all acquisitions by
the submission of a requi sition to the Purchasing
Division, and
b. no state agency shall make an acquisition for an
amount exceeding Fifty Thousand Dollars ($50,000.00)
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or the limit determined by th e State Purchasing
Director pursuant to rules authorized by Section 85.5
of this title, not to exceed Two Hundred Fifty
Thousand Dollars ($250,000.00), without submission of
a requisition to the Purchasing Division for issuance
of a solicitation for the acquisition on behalf of the
agency. Any exemption from competitive bid
requirements of the Oklahoma Central Purchasing Act
further exempts the acquisition from requisition
requirements of the act.
2. The State Purchasing Director may request additional
information necessary to adequately review a requisition to ensure
compliance with the Oklahoma Central Purchasing Act and associated
rules. If the State Purchasing Director determines that an
acquisition is not necessary, excessive or not justified, the State
Purchasing Director shall deny the requisition.
3. The provisions of the Oklahoma Central Purchasing Act shall
not preclude a state agency from:
a. accepting gifts or donations in any manner authorized
by law, or
b. making an acquisition for itself without submitting a
requisition under this section when authorized in
writing by the State Pu rchasing Director.
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4. Any acquisition a state agency makes shall be made pursuant
to the Oklahoma Central Purchasing Act and associated rules. No
agency shall use split purchasing for the purpose of evading the
requirement of competitive bidding or oth er requirement of the
Oklahoma Central Purchasing Act or associated rules. Violation of
this provision shall be cause for discipline of a state employee up
to and including termination.
5. The State Purchasing Director may waive or increase the
limit authorized for a state agency acquisition made pursuant to its
own competitive procedures. To perfect an otherwise valid
acquisition inadvertently exceeding the limit due to administrative
error by a state agency or unforeseeable circumstances, the st ate
agency shall request a limited waiver or increase upon the discovery
of the error or circumstance to the State Purchasing Director. The
State Purchasing Director shall report requests for waivers o r
increases, stating the amount and whether the reques t was granted or
denied, upon request by the Governor, Presiden t Pro Tempore of the
Senate or Speaker of the House of Representatives.
6. Competitive bidding requirements of this section shall not
be required for the following:
a. contracts for master cus todian banks or trust
companies, investment managers, investment
consultants, and actuaries for the state retirement
systems, and Oklahoma Employees Insurance and Benefits
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Board, pension fund management consultants of the
Oklahoma State Pension Commission and the
Commissioners of the Land Office, examiners, experts,
or consultants for the Insurance Department whose job
duties are tied to Market Conduct Exams, Financial
Exams, and Insurance Business Transfers, financial
institutions to act as depositories an d managers of
the Oklahoma College Savings Plan accounts and other
professional services as defined in Section 803 of
Title 18 of the Oklahoma Statutes. When requested by
the Oklahoma Employees Insuran ce and Benefits Board or
the governing board of a stat e retirement system
authorized to hire investment managers, the Purchasing
Division shall assist in the process of selecting
investment managers,
b. a state agency making such an acquisition shall notify
the State Purchasing Director within fifteen (15) da ys
following completion of the acquisition. A list of
the exempt contracts shall be provided, upon request,
to a member of the Appropriations and Budget Committee
of the House of Representatives or App ropriations
Committee of the Senate,
c. purchases of postage by state agencies made pursuant
to Sections 90.1 through 90.4 of th is title,
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d. a sole source acquisition made in compliance with
Section 85.44D.1 of this title,
e. an acquisition for design, development, communication
or implementation of the state employees flexible
benefits plan; provided, procedures used for the
acquisition are consistent with competitive bid
requirements of the Oklahoma Central Purchasing Act
and associated rules,
f. any acquisition of a service which the Office of
Management and Enterprise Services has approved as
qualifying for a fixe d and uniform rate, subject to
the following:
(1) the Purchasing Division shall establish criteria
and guidelines for those services which may
qualify for a fixed and uniform rate,
(2) fixed and uniform rate contracts authorized by
this subsection shall be limited to contracts for
those services furnis hed to persons directly
benefiting from such services and shall not be
used by a state agency to employ consultants or
to make other acquisitions,
(3) any state agency desiring to have a service
qualified for a fixed and uniform rate shall make
a request for service qualification to the State
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Purchasing Director and submit documentation to
support the request. The State Purchasing
Director shall approve or deny the request. If
approved, the state agency shall establish a
fixed and uniform rate for the ser vice. No
contracts shall be entered into by the state
agency until the rate has been approved by the
state agency in a public hearing. The proposed
rate shall be clearly and separately identified
in the agenda of the state agency for the hearing
and shall be openly and separately discussed
during such hearing. The state agency shall
notify the State Purchasing Director of its
pending consideration of the proposed rate at
least thirty (30) days before the state agency is
to meet on the proposed rate and d eliver a copy
of the agenda items concerning the proposed rate
with supporting documentation. The State
Purchasing Director shall communicate any
observation, reservation, criticism or
recommendation to the a gency, either in person at
the time of the hear ing or in writing delivered
to the state agency before or at the time of the
hearing. The State Purchasing Director shall
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specifically note in the written communications
whether the Director has determined the rate to
be excessive. Any written communicat ion
presented in the absenc e of the State Purchasing
Director shall be presented orally during the
public hearing. Whether made in person or in
writing, any comment made by the State Purchasing
Director shall be made a part of the minutes of
the hearing in full,
(4) within two (2) weeks after the convening of the
Legislature, the administrative officer of the
state agency shall furnish to the Speaker of the
House of Representatives, the President Pro
Tempore of the Senate and to any member of the
House or Senate, if requested by the member, a
complete list of all of the types of services
paid for by uniform fixed rates, the amount of
the rate last approved by the agency for the
service and the number of contrac ts then in
existence for each type of service . Any rate
which has been determined to be excessive by the
State Purchasing Director shall be specifically
identified in the list by the state agency, and
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(5) at any time, the State Purchasing Director may
review, suspend or terminate a contract entered
into pursuant to the provisio ns of this paragraph
if the Director determines the contract is not
necessary, is excessive or is not justified,
g. an acquisition for a client of the State Department of
Rehabilitation Services; provided, the agency develops
and maintains standards for su ch an acquisition. The
agency may elect to utilize the Purchasing Division
for an acquisition. The standards shall foster
economy, provide a short response time, include
appropriate safeguards, require written records,
ensure appropriate competition for economical and
efficient purchasing and shall be approved by the
State Purchasing Director,
h. structured settlement agreements entered into by the
Attorney General’s office in order to settle any
lawsuit involving the state, the Legislature, any
state agency or any employee or official of the state
if:
(1) prior to entering into any contract for the
services of an entity to administer a structured
settlement agreement, the Attorney General
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receives proposals from at least three e ntities
engaged in providing such services, and
(2) the selection of a particular entity is made on
the basis of the response to the request which is
the most economical and provides the most
competent service which furthers the best
interests of the state ,
i. an acquisition by a st ate agency pursuant to a
contract the State Purchasing Director enters into on
behalf of a state agency or awards and designates for
use by state agencies,
j. an acquisition by the Committee for Sustaining
Oklahoma’s Energy Resources pursuant to a contract
with a local supplier for the purpose of holding a
special event or an exhibition throughout the state,
and
k. contracts for the study, analysis, and planning, as
reasonably necessary, to aid in determining the
feasibility of leasing, selling, or privately managing
or developing the property or facilities under control
of the Oklahoma Tourism and Recreation Commission.
The Commission shall be exempt from the competitive
bidding requirements of the Oklahoma Central
Purchasing Act for the purpose of solicit ing,
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negotiating, and effectuating such a contract or
contracts; provided, that the State Purchasing
Director shall review and audit all uses of the
exemptions provided in this subparagraph biannually,
and
l. contracts for the study, analysis, and planning as
reasonably necessary to aid in determining the
feasibility of economic projects by the Oklahoma
Office of Economic D evelopment, Growth, and Expansion
created in Section 4 of this act; provided, the Office
develops and maintains standards for such an
acquisition. The standards shall foster econom ic
development, provide a short response time, inclu de
appropriate safeguards, require written records, and
ensure appropriate competition for economical and
efficient purchasing.
7. Notwithstanding any other provisio n of law, an acquisition
may be exempted from requirements of this section by the State
Purchasing Director when in the S tate Purchasing Director’s
discretion unusual, time-sensitive or unique circum stances exist
which make such exemption in the best and i mmediate interest of the
state. As used in this subsection, “State Purchasing Director”
shall not mean a designee. Any such acquisitions shall be described
in detail and publicly posted as a data f eed. The description shall
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include the name of the suppl ier, cost of the acquisition, reason
for exemption and, as applicable, detailed comparison of the
acquisition with compar able items, any identified cost savings
resulting from the acquisition and a d escription of benefits to the
state. The State Purchasing Director shall take no action under the
provisions of this subsection prior to such pu blic posting.
B. Competitively bid ac quisitions shall be awarded to the
lowest and best, or best value, bidder or bidders.
C. Bids for an amount requiring submission of requisitions to
the Purchasing Division shall be evaluated by the Purchasing
Division and the state agency receiving t he acquisition. At a
minimum, cost and technical expertise shall be considere d in
determining the lowest and best, or best value, bid . Further, the
state agency shall present its evaluation and recommendation to the
State Purchasing Director. A documented evaluation report
containing the evaluations of the Purchasing Division or the state
agency shall be completed prior to the contract award and such
report shall be a matter of public record.
D. Except as otherwise specificall y provided by law, the
acquisition of food items or food products by a state agency from a
public trust created pursuant to Sections 176 through 180.56 of
Title 60 of the Oklahoma Statutes shall comply with competitive
bidding requirements of this se ction.
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E. Cooperative contracts shall not be utilized unless the
purchasing cooperative and its affiliated sup pliers have complied
with competitive bid requirements o f the Oklahoma Central Purchasing
Act and associated rules.
F. Notwithstanding any provision of the Oklahoma Central
Purchasing Act, in all cases where federal granted funds are
involved, the federal laws, rules and regulations thereto shall
govern to the extent necessary to inure to the benefit of such funds
to this state.
G. A court order requiring an acquisition by a state agency,
whether or not such state agency is subject t o the Oklahoma Central
Purchasing Act, shall not invalidate competitive bidding procedures
required by this section if such court order does not specify a
specific supplier. Any such acquisition sha ll comply with
competitive bid procedures.
SECTION 13. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5090.9 of Title 74, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the St ate Treasury a revolving fund
for the Oklahoma Office of Economic Development, Growth, and
Expansion to be designated the “Economic Development, Growth, and
Expansion Revolving Fund”. The fund shall be a continuing fund, not
subject to fiscal year limitations, and shall consist of all monies
received by the Office from appropriations and donations, grants,
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contributions, or gifts from any public or private source . All
monies accruing to the credit of the fund are hereby ap propriated
and may be budgeted an d expended by the Office for the purpose of
attracting, retaining, and recruiting new business to Oklahoma,
advancing the purposes of the Office, or any other purpose proposed
by the Office and consented to by the Oklahoma Economic Development,
Growth, and Expansion Board. Expenditures from the fund shall be
made upon warrants issued by the State Treasurer against claims
filed as prescribed by law with the Director of State Finance for
approval and payment.
SECTION 14. It being immediately necessary for the preservation
of the public peace, he alth 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 an d approval.
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