Oklahoma 2024 2024 Regular Session

Oklahoma Senate Bill SB1447 Comm Sub / Bill

Filed 02/12/2024

                     
 
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STATE OF OKLAHOMA 
 
2nd Session of the 59th Legislature (2024) 
 
COMMITTEE SUBSTITUTE 
FOR 
SENATE BILL 1447 	By: Thompson (Kristen) of the 
Senate 
 
  and 
 
  Osburn of the House 
 
 
 
 
COMMITTEE SUBSTITUTE 
 
An Act relating to economic development; creatin g 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 of Board 
members; stating appointment terms; establishing 
Board procedures 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; updating statutory 
language; updating statutory reference; 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   
 
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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 powers, duties, 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 3 10, O.S.L. 
2023 (75 O.S. Supp. 2023, Section 250.4), which 
relates to compliance with the Administrative 
Procedures Act; updating statutory language; 
exempting Office from certain violation; creating the 
Legislative Evaluation and Development Committee; 
stating intent; specifying information for review; 
providing for membership; requiring discretion; 
amending 74 O.S. 202 1, Section 85.7, as last amended 
by Section 1, Chapter 339, O.S.L. 2023 (74 O.S. Supp. 
2023, Section 85.7), which relates to acquisitions; 
updating statutory lang uage; 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 declaring an 
emergency. 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     NEW LAW     A new sec tion 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 se ction of law to be codified 
in the Oklahoma Statutes as Section 5090.1 of Title 74, unless there 
is created a duplication in numbering, reads as follows:   
 
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A.  The Legislature has determined that there exists in this 
state a need to encourage, stimulate, and support the development 
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 it by this act to 
perform an essential governmental function for matters of public 
necessity for which public mon ies may be spent and private property 
acquired.  In the duty of its service to the state, the Office shall 
create a partnership with the Oklahoma Department of Commerce to 
more effectively respo nd to the needs expressed in this act . 
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 Evaluation and Development 
Committee as created in Section 11 of this act;   
 
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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; 
5.  “Director” means the Executive Director of the Oklahoma 
Office of Economic D evelopment, 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, association, 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 duplication in numbering, reads as follows: 
A.  There is hereby created th e Oklahoma 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 bette r results for the state’s recruitment and 
retention of businesses; and   
 
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4.  Act as the principal point of contact regarding investment 
in this state for public officials, businesses, and the public. 
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 Commerce 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 sixty thousand (60,000) 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 sixty thousand (60,000) 
people or less; and   
 
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3.  Three members to be appointed by the Governor ; provided, at 
least one appointed member shall be an economic development 
practitioner from this state. 
B.  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; 
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,   
 
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j. manufacturing, 
k. biotechnology, 
l. cybersecurity, 
m. defense, 
n. energy, 
o. entrepreneurship, or 
p. any other critical industry in this state. 
C. For the initial appointments 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 
three (3) years.  Nonvoting members shall serve terms coincident 
with their terms of office or employment. 
D.  Vacancies on the Board shall be filled for the unexpired 
term of office in the same manner as the original appointment.  The 
appointed members may be removed from their positions by their 
respective appointing authorities but shall not be subject to 
dismissal or removal without cause . 
E.  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   
 
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meeting of the Board shall be called by the chair no later than 
sixty (60) days after the effective date of this act. 
F.  No member of the Board shall receive a salary or 
reimbursement for duties performed as a member of the Board; 
however, members are eligible to receive travel reimbursement as 
provided in the State Travel Reimbursement Act. 
G.  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. 
H.  The meetings of the Board shall be subject to the Ok lahoma 
Open Meeting Act and the Oklahoma Open Records Act.  Any information 
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, firm s, associations, 
partnerships, agencies, corporations , or other entities shall be 
confidential, except to the extent 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 necessary by the Board. 
I.  The Board may create an advisory board from time to time to 
assist the Board in carrying out the provisions of this act.  The 
advisory board shall consist of members from governmental agencies 
and members of the economic community of this state as appointed by   
 
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the members of the Board including, but not limited to, the 
Executive Director of the Oklahoma Office of Economic De velopment, 
Growth, and Expansion, chief executive officer of the Oklahoma 
Workforce Commission, and the Secretary of Transportation. 
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 
disclosure will seriously impair the ability of the public body to 
process the claim or conduct a pending investigation, litigation, or 
proceeding in the public interest;   
 
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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 disabled 
child; 
7.  Discussing any matter where disclosure of information would 
violate confidentiality requirements of state or feder al law; 
8.  Engaging in deliberations or rendering 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 or correctional facilities used to house state 
inmates; 
10.  Discussing contract negotiati ons involving contracts 
requiring approval of the State Board of Corrections, which shall be 
limited to members of the public bo dy, 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: 
a. the investigation of a plan or scheme to commit an act 
of terrorism,   
 
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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 num bers, names, or 
connecting circuits, 
(6) business continuity and disaster planning, or 
response plans, or 
(7) investigation information directly related to 
security penetrations or denial of services, or   
 
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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 set 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 ho ld executive 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 Ok lahoma Statutes; 
4. The Oklahoma Center for the Advancement of Science and 
Technology, as provided for in Section 5060.7 of Tit le 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; 
6. The Oklahoma Workers’ Compensation Commission for the 
purposes provided for in Section 20 22 of Title 85A of the Oklahoma 
Statutes;   
 
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7.  A review committee, as provided for in Section 855 of Title 
62 of the Oklahoma Statutes; 
8.  The Child Death Review Bo ard 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 Fat ality Review Board, 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 supporte d in whole or part 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 busin ess to remain or to locate within their 
jurisdiction if public disc losure 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 Board for purposes of 
discussing negotiating strategies in connection with making possible 
counteroffers to offers to contract to provide legal representation 
to indigent criminal defendants and indigent juveniles in cases for   
 
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which the System must provide 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 o f 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 pro cedures 
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; and 
16.  The Oklahoma Economic Development, Growth, and Expansion 
Board, as provided for in Section 5 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 sha ll be limited 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, 
developer or any other person who may profit dir ectly or indirectly 
by a proposed transaction concerning real property which is under 
consideration may be present or participate in the executive   
 
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session, unless they are operating under an existing agreement to 
represent the public body. 
E.  No public body may go into an executive session un less 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 is 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 law to be confidential, any vote or 
action on any item of busine ss considered in an executive ses sion 
shall be taken in public meeting with the 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. 
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 administer and serve as an advisory body for policy   
 
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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 Development, Growth, and Expansion to 
serve at the pleasure of the Board and carry out such powers and 
duties conferred upon him or her as prescribed 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 politica l engagement, 
e. leading business development or busines s recruitment 
teams, 
f. creating and implementing sector development 
strategies, 
g. branding and marketing leadership experience, and 
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 talented and experienced economic 
development professional in the position .   
 
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C.  The Executive Director shall consult with th e Board 
regarding the admini stration 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 the 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 of officers, 
agents, and employees of the Office; 
4.  Establish performance-based incentive compensation 
structures to enhance organizational and individual performance, 
both for the Executive Di rector and his or her employees; 
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   
 
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7.  Annually report to the Governor an d the Legislature 
electronically on the complete operation, activities, and plans of 
the Office, together with such recommendatio ns for future activit ies 
as the Board may deem to be in the best interest of t he state. 
SECTION 8.     NEW LAW     A new section of l aw to be codified 
in the Oklahoma Statutes as Section 5090.6 of Title 74, unless there 
is created a duplicati on in numbering, reads as follows: 
Immediately upon the appointment of the Executive Director, he 
or she shall become vested with the duties 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 supe rvision of the Board, 
all economic development projects in this state; 
2.  To appoint and employ such assistants, administrative 
leadership, clerical help, and other employees as the Board may deem 
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 regul ations as promulgated by the 
Board; and   
 
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3.  To exercise such powers and duties relat ing to the direction 
of the state’s economic development ef forts 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 Section 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 carryin g 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 administratio n and procurement, research projects, 
supplies, or any other services the Office deems necessary to carry 
out its purpose; 
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;   
 
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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 deposit 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, 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 entities, pr ivate 
firms, and the other person providing services 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 other res earch that may lead to 
economic development. 
B.  It shall be the duty of the Office to encourage, stimula te, 
and support the development and expansion of the ec onomy of 
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;   
 
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2.  Create and implement effective economic development 
marketing and promotional programming; 
3.  Make available, in conjunction and cooperation with 
localities, chambers of commerce, industrial 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 ne w 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 economic development efforts 
of public institutions, regions, communities, and private industry 
and collect and maintain data on the development and utilizat ion 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 
particular industries or skills in accordance with the Office’s 
strategic plan and economic development activities. 
C.  The Office shall annually update and modify its economic 
development strategic plan for this state in consultation with the 
Governor, Lieutenant Governor, and the Legislature.  The Office   
 
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shall prepare a report on the economic development strategic pla n by 
December 30 each year to be electronically distributed to the 
Governor, the President Pro Tempore of the Senate, the Speaker of 
the House of Representatives, and the fisc al directors of their 
respective legislative chambers. The Office shall post the report 
on its 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 subs ection, each agency 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 declare d that Article I of the Administrative 
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 of the State of Oklahoma 
shall be exempt from the provisions of Article I of the 
Administrative Procedures Act to the extent it exercises its   
 
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responsibility for military affairs.  Military publications, as 
defined in Section 801 of Title 44 of the Ok lahoma Statutes, shall 
be exempt from the provisions of Article I and Article II of the 
Administrative Procedures 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, desig n 
standards, testing procedures, federally imposed requirements and 
generally recognized st andards, project planning 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: 
a. prescribing standards of higher education, 
b. prescribing functions and courses of study in each 
institution to conform to the standards,   
 
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c. granting of degrees and other forms of academic 
recognition for completion of the prescribed courses, 
d. allocation of state-appropriated funds, and 
e. fees within the limits prescribed by the 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 Executive 
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 promulgate rules 
pursuant to the Oklahoma Motor Carrie r Safety and 
Hazardous Materials Trans portation Act, to ma intain a 
current incorporation of federal motor 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 the 
full text of the rule but may incorporate the federal 
rules and regulations by reference. 
c. Such copies of promulgated r ules shall be filed with 
the Secretary of State as required by Section 251 of 
this title.   
 
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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 Complaints shall be exempt from 
Section 306 of Article I of the Administrat ive Procedures Act this 
title, with respect to revi ew 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 by 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 
rules and issue opinions based upon them. 
10.  The Department of Corrections, State Board of Corrections, 
county sheriffs and managers of city jails shall be exempt from 
Article I of the Administrative 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 
b. prescribing internal management procedures for the 
management of the probation and parole unit of the   
 
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Department of Corrections and for the supervision of 
probationers and parolees. 
11. The State Board of Education shall be exempt from Article I 
of the Administrative P rocedures 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 Se rvices; 
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 
the institutional supervision, custody, control, care or treatm ent 
of inmates, prisoners or patients therein; pro vided, that the   
 
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provisions of Article II shall apply to and govern 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 Executive 
Director of Service Oklahoma only with respect to driver license 
hearings and hearings conducted pursuant to the provisions of 
Section 2-115 of Title 47 of the Oklahoma Statu tes;   
 
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15.  The Administrator of the Oklahoma 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 pursuant to Section 
962 903A of Title 47 of the Oklahoma Statutes; 
17.  The Oklahoma Military Department of the State of Oklahoma ; 
18.  The University Hospitals Authority, including a ll hospitals 
or other institutions operated by the University Hospitals 
Authority; 
19.  The Oklahoma Health Care Authority 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.  It is the intent of the Legislature that the creation of the 
Legislative Evaluation and Developm ent Committee shall review 
financing for individual i ncentive 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   
 
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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 
currently existing incentives inc luded in the incentive package. In 
addition to the required review 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 businesses or state authorities which would be 
financed by public funds. 
B.  There is hereby created within the Legislatu re the 
Legislative Evaluation and Development Committee to evaluate and 
propose economic projects provided by the Oklahoma Office of 
Economic Development, Growth, and Expansion.  The Committee shall 
consist of: 
1.  Four members of the Senate to be appointed by the Presid ent 
Pro Tempore of the Senate; and 
2.  Four members of the House of the Representatives to be 
appointed by the Speaker of the H ouse of Representatives. 
The President Pro Tempore of the Senate and the Speaker of the 
House of Representatives shall serve as co-chairs for the Committee. 
C.  The quorum of the Committee shall consist of at least five 
members.  Meetings of the oversight Committee shall be governed by 
joint rules of the Legislatu re.  Members of the Committee may 
receive reimbursement from the Legis lative Service Bureau for actual   
 
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and necessary expenses incurred in connection with their duties as 
members of the Committee in accordance with other provisions of law 
relating to travel reimbursement for members of the Legislature. 
Members serving on this Committee shall submit to nondisclosure 
agreements and adhere to the confidentiality of the material 
discussed in meetings that aff ect the economic development of this 
state. 
SECTION 12.     AMENDATORY     74 O.S. 2021, Section 85.7, as 
last amended by Section 1, Chapter 339, O.S.L. 2023 (74 O.S. Supp. 
2023, Section 85.7), is amended to rea d 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) 
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   
 
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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. 
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.   
 
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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 waive rs or 
increases, stating the amount and whether the request was granted or 
denied, upon request by the Governor, President 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 
Board, pension fund manage ment 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 market conduct 
exams, Financial Exams financial exams, and Insurance 
Business Transfers insurance business transfers ,   
 
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financial institutions to act as depositories an d 
managers of the Oklahoma College Savings Plan accounts 
and other professional ser vices 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 state 
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 throu gh 90.4 of this title, 
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   
 
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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 
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   
 
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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 
specifically note in the written communications 
whether the Director has determined the rate to 
be excessive.  Any written communicat ion 
presented in the absen ce of the State Purchasing 
Director shall be presented orally during the 
public hearing.  Whether made in person or in   
 
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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 th e 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 
(5) at any time, the State Purchasing Director may 
review, suspend or terminate a contract entered 
into pursuant to the provisi ons 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   
 
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develops and maintains standards for such 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 fo r 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 Office of the Attorney 
General 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 
receives proposals from at least three entities 
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,   
 
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i. an acquisition by a state 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 contrac t 
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 solici ting, 
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   
 
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feasibility of economic projects by the Oklahoma 
Office of Economic Development, 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 provision of law, an acquisition 
may be exempted from requirements of this section by the State 
Purchasing Director when in the State Purchasing Director’s 
discretion unusual, time-sensitive or unique circumstances exist 
which make such exemption in the best and immediate 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 fee d.  The description shall 
include the name of the supplier, cost of the acquisition, reason 
for exemption and, as applicable, detailed comparison of the 
acquisition with comparable items, any identified cost savings 
resulting from the acquisition and a description 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.   
 
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B.  Competitively bid ac quisitions shall be awarded to the 
lowest and best, or best value, bidder o r 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 the acquisition.  At a 
minimum, cost and technical expertise shall be considered 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 th e state 
agency shall be completed prior to the contract award and such 
report shall be a matter of public record. 
D.  Except as otherwise specifically 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. 
E.  Cooperative contracts shall not be utilized unless the 
purchasing cooperative and its affiliated supp liers have complied 
with competitive bid requirements of 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   
 
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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 shall comply with 
competitive bid procedures. 
SECTION 13.    NEW LAW     A new secti on 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: 
A.  There is hereby created in the St ate Treasury a revolving 
fund for the Oklahoma Office of Economic D evelopment, Growth, and 
Expansion to be designated the “Economic Development, Growth, and 
Expansion Revolving Fund”.  The fund shall be a continuing f und, not 
subject to fiscal year limitations, and shall consist of al l monies 
received by the Office from appropriations and donations, grants, 
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, a nd 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   
 
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made upon warrants issued by the State Treasurer aga inst claims 
filed as prescribed by law with the Director of the Office of 
Management and Enterprise Services for approval and payment. 
B.  Notwithstanding any oth er provision of law, and until the 
fiscal year ending in 2034, income and earnings on the fund shall 
accrue to the fund and may be used for the purposes provided for in 
this section. 
SECTION 14.  It being immediately necessa ry for the preservation 
of the public peace, health or safety, an emerge ncy is hereby 
declared to exist, by reason whereof thi s act shall take effect a nd 
be in full force from and after its passage an d approval. 
 
59-2-3468 MR 2/12/2024 3:45:13 PM