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No. 3468 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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: Req. No. 3468 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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; Req. No. 3468 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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, Req. No. 3468 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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; Req. No. 3468 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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, Req. No. 3468 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. 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 Req. No. 3468 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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; Req. No. 3468 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 . Req. No. 3468 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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; Req. No. 3468 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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; Req. No. 3468 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. 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 Req. No. 3468 Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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, Req. No. 3468 Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. Req. No. 3468 Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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; Req. No. 3468 Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. Req. No. 3468 Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 , Req. No. 3468 Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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, Req. No. 3468 Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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. Req. No. 3468 Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. 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 Req. No. 3468 Page 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Req. No. 3468 Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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