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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1814 By: Dahm
AS INTRODUCED
An Act relating to the Legislative Office of Fiscal
Transparency; amending 62 O.S. 2021, Section 8012,
which relates to Office operations and actions;
modifying actions to be taken by the Office; updating
statutory references; updating statutory language;
establishing Administrative Rules Division within
Office; establishing purposes; directing oversight;
providing for codification; providing an effective
date; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 8012, is
amended to read as follows:
Section 8012. A. The Legislative Office of Fiscal Transparency
shall:
1. Gather information regarding the proposed budgets of
executive branch agencies each fiscal year;
2. Analyze the information and evaluate the extent to which the
agency budget does or does not fulfill the agency ’s primary duties
and responsibilities under applicable provisions of federa l, state
or other law;
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3. Analyze and forecast all revenues available to the agency
from appropriations, fees, dedicated revenue or any other source;
4. Compare the agency budget i nformation to the comparable
information contained in that agency ’s budget requests from prior
fiscal years; and
5. Conduct such investigations regardin g the operations of the
agency as required in order t o fulfill the duties imposed upon the
Office by law or as otherwise directed by the oversight committee ;
and
6. Analyze and conduct performance evaluations as it relates to
the administrative code of executive branch agencies , as outlined in
Section 2 of this act.
The oversight committee, subject to the direction of the
President Pro Tempore of the Senate and the Speak er of the House of
Representatives, shall ensure that t he functions performed by the
Office pursuant to the provisions of this subsection do not
duplicate those of the Senate Committee on Ap propriations and the
House Committee on Appropriations and Budget and their respective
staffs.
B. The Office shall further conduct performance evaluations and
may conduct independent comprehensive performance audi ts. The
oversight committee created in Se ction 3 of this act 8013 of this
title may periodically identify s pecific executive branch agencies,
or programs, activit ies or functions within executiv e branch
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agencies, for which the Office shall conduct a performance
evaluation or independent comprehen sive performance audit.
C. As used in this act Section 8011 et seq. of this title,
“performance evaluation ” means an examination of a program, activity
or function of an executive branch agency, conducted in accordance
with applicable government auditing standards or auditing and
evaluation standards of other appropriate autho ritative bodies. The
term includes, but is not limited to, an examination of issue s
related to:
1. Economy, efficiency or effective ness of the agency or
program, including any reven ue sources used to fund or support the
agency or program;
2. Structure or design of the agency or program t o accomplish
its goals and objectives;
3. Adequacy of the agency or program to meet the needs or
policy goals identified by the Legislature;
4. Alternative methods of providing agency or program services
or products;
5. Goals, objectives and performance measures used by the
agency to monitor and repo rt agency or program accomplishments;
6. The accuracy or adequacy of public documents, reports or
requests prepared by or in relation to the agency or program;
7. Compliance with appropriate policies, rules or laws related
to the agency or program; and
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8. Any other issues related to such agencies or programs as
directed by the oversight committee.
D. As used in this act Section 8011 et seq. of this title,
“independent comprehensive performance audit (ICPA) ” includes, but
is not limited to, a review and analysis of the economy, efficiency ,
effectiveness and compliance of the policies, management, fisca l
affairs and operations of state agencie s, divisions, programs and
accounts. The results of an ICPA may be used by the Legislature to
implement the best budgeting and policy -making practices for
government services to run in the most cost -effective way. The
Office may, at the direction of the oversi ght committee and subject
to the approval of the President Pr o Tempore of the Senate and the
Speaker of the House of Representatives, contract w ith a private
company, nonprofit organization or academic institu tion to assist
with an independent compre hensive performance audit or for
professional consulting and adminis trative support services. The
Office may, but shall not be required to, contract with the Office
of the State Auditor and Inspector to conduct any ICPA. The Office
shall develop the scope of s ervices for a request for proposals
issued, for professional services necessary to complete each ICPA.
Prior to entering into any contract, the Office shall obtain no less
than three separate bids for the aud iting services, unless the
Office determines that fewer than three entitie s meet the
qualifications to bid to perform such services as set forth by the
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Office. The cost of the contract shall be paid by the Legislative
Services Service Bureau.
An independent comprehensive performance audit shall address but
not be limited to the following topics:
1. Policies which shall include constitutional mandates, if
any, statutory mandates, statutory authorizat ions, administrative
rules or policies of the affected ag ency reflected in internal
agency documents or ag ency practices;
2. All sources of funding received by the a gency, inclusive of
federal funds, state appropriations, state -dedicated revenues, fee
revenue sources, the use of agency revol ving funds or any ot her fund
or revenue source which is used to pay the exp enses of the agency;
3. Management of the agency whic h shall include, but not be
limited to, its governance, capacity, divisions, programs, acc ounts,
information technology systems and policies and ag ency operations
which include objective analysis of the roles and function s of the
department; and
4. A schedule for implementation of agency -specific
recommendations.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 8016 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The Legislative Office of Fiscal Transparency shall
establish a division within the Office for the purpose of reviewing
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the Oklahoma Administrative Code and proposed rules of state
agencies. The Office may employ up to five full-time employees to
service the division and carry out the functions outlined in this
section.
B. The Administrative Rules Division of the Office shall
evaluate the following:
1. Whether proposed permanen t rules align with the Oklahoma
Constitution;
2. Whether proposed per manent rules further th e legislative
intent of the statute authorizing the proposed rulemaking;
3. Whether proposed permanent rules will h ave a negative impact
that is disproportionate to the intended effects of the rulemaking;
4. Whether the agency has the statutory authority to promulgate
the proposed rules; and
5. Whether proposed permanent rules are constructed so as not
to expand agency power but rather maximize individual liberties.
C. The Division shall issue a report including the information
provided in subsection B of this section, a summary statement of the
legislative recommendation being made, and any other information
deemed necessary by the President Pro Tempore of the Senate, the
Speaker of the House of Representatives, or the Administrative Rules
chairs of both the Senate and the House of Representatives.
D. The Division shall also be responsible for regular
evaluations of the existing administrative code in coordination with
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the President Pro Tempore of the Senate, the Speaker of the House of
Representatives, or the Administrative Rules chairs of both the
Senate and the House of Representatives.
SECTION 3. This act shall become effective July 1, 2024.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergenc y is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
59-2-3392 MR 1/17/2024 3:57:10 PM