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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1221 By: West (Kevin)
COMMITTEE SUBSTITUTE
An Act relating to public finance; creating the State
Accounts for Federal Expenditures Act (SA FE Act);
defining certain terms; creating State Accounts for
Federal Expenditures Accounts (SAFE Accounts);
determining what said accounts shall be used for;
requiring certain notice to be provided to certain
persons; requiring agencies to present certain
information in budget performance reviews; requiring
approval of agency use of certain funds; requiring
the creation of SAFE Accounts after certain
approvals; requiring agencies to notify the federal
government of certain actions; requiring certain
notice to be provided to certain persons; requiring
certain formal hearings; requiring approval of agency
use of certain funds; requiring the creation of SAFE
Accounts after certain approvals; exempting certain
types of funds; requiring the creation of SAFE
Accounts after certain federal action; allowing for
immediate use by certain programs; requiring agencies
to submit certain information; allowing for approval
of certain funds; amending 62 O.S. 2021, Section
34.36, which relates to estimates of funds needed;
requiring agencies to submit certain information;
amending 62 O.S. 2021, Section 34.95, which relates
to certain reports; requiring agencies to present on
specific federal funds; providing for codification;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5001 of Title 62, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "State Accounts
for Federal Expenditures Act" (SAFE Act).
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5002 of Title 62, unless there
is created a duplication in numbering, reads as follows:
As used in the State Accounts for Federal Expenditures Act:
1. "Agency" means any agency, board, bureau, commission, or
other entity organized within the executive department of state
government;
2. "Block grant" means a funding mechanism used by the federal
government that is not based on a program or an application; and
3. "Competitive grant" means a grant an agency applies for to
receive federal funding that is not necessarily asso ciated with a
federal program the agency already operates.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5003 of Title 62, unless there
is created a duplication in numbering, reads as fol lows:
There is hereby created in the State Treasury "State Accounts
for Federal Expenditures" (SAFE Accounts). These accounts shall be
used by agencies for funds received under competitive grant awards,
direct monetary payments to the agency not associate d with an
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established federal program the agency operates, and block grants.
These accounts shall not be used for existing federal programs
agencies operate as of January 1, 2025, unless the program is a
competitive grant the agency must reapply for funds after November
1, 2025.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5004 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. Beginning November 1, 20 25, all agencies applying for
competitive grants through Grants.gov, or any of its successors,
shall submit to the Speaker of the Oklahoma House of
Representatives, the President Pro Tempore of the Oklahoma State
Senate, the Governor, the House Appropriati ons and Budget Chair, the
Senate Appropriations Chair, and the Secretary of Finance notice of
the application that includes, but is not limited to, the
application deadline, when the agency expects to hear it will be
receiving funds under the grant, what f ederal department, agency, or
other federal entity is awarding the grant, the amount of the grant,
the purpose of the grant, and for how many years the agency will
receive funding under the grant if it is awarded.
B. Beginning with the FY -2027 Budget Performance Reviews as
described in Section 34.95 of Title 62 of the Oklahoma Statutes,
agencies shall present information on the competitive grants they
have applied for or are applying for regardless of whether the
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agency has submitted notice to the persons mentioned in subsection A
of this section. Such information shall be contained in the
agency's Budget Performance Review document and presentation.
C. No agency shall draw down funds for a competitive grant
unless it has received approval by the Legislat ure. Approval shall
be satisfied by a concurrent resolution. Upon approval, a SAFE
Account shall be created by the Office of Management and Enterprise
Services. Once the account has been created, if the agency is
awarded the grant, the agency shall be a uthorized to draw down on
federal funds as the requirements of the grant have been met. In
the event the competitive grant is not approved by the Legislature,
the agency shall notify the federal government and withdraw its
application for the funding.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5005 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. Beginning November 1, 2025, in the event the federal
government, through legislation, directs funds to be granted to
state agencies as a form of monetary relief for states due to poor
economic conditions, these funds shall be placed in SAFE Accounts
except for the exemptions provided in subsection E of this section.
B. Once informed by the federal government that an agency is
eligible to receive new funding sources, the agency shall submit to
the Speaker of the Oklahoma House of Representatives, the President
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Pro Tempore of the Oklahoma State Senate, the Go vernor, the House
Appropriations and Budget Chair, the Senate Appropriations Chair,
and the Secretary of Finance notice of the new funding source that
includes, but is not limited to, the amount of funds the agency is
to receive, what date or dates it is e xpected to receive or draw
down those funds, what timeline it has to obligate and expend the
funds, and the purpose of the funds.
C. The Legislature shall hold formal hearings where the agency
or agencies present this information. No agency shall draw do wn
funds from federal legislation providing monetary relief unless it
has had a formal hearing and received approval by the Legislature.
Approval shall be satisfied by concurrent resolution.
D. Upon approval, a SAFE Account shall be created by the Office
of Management and Enterprise Services. Once the account has been
created, the agency shall be authorized to draw down the federal
funds in the manner determined by federal statute or federal rules.
In the event the Legislature does not approve of the us e of these
funds, the agency shall notify the federal government in the manner
as required by the federal act.
E. Upon the effective date of this act, nothing in this section
shall apply to temporary increases in existing federal programs
already managed by state agencies.
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SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 5006 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. Beginning July 1, 2025, if the federal government, through
legislation, directs that all federal funds to states are
appropriated as block grants instead of program -specific funding,
these funds shall be placed in SAFE Accounts created by the Office
of Management and Enterprise Service s for the correct agency or
agencies that utilize the funds.
B. For federal programs that are already in existence, agencies
shall be able to access these funds immediately in order to prevent
a stop in service to the people of Oklahoma.
C. For both current and new programs, agencies shall submit
information as required under Section 34.36 of Title 62 of the
Oklahoma Statutes. Agencies shall also present such information as
required in Section 34.95 of Title 62 of the Oklahoma Statutes.
D. The Legislature may formally disapprove of an agency's use
of block grant funding through a concurrent resolution. If such
disapproval occurs, the agency shall inform its corresponding
federal entity of the disapproval and withdraw from receiving such
funds. If no action is taken by the Legislature on block grant
funding, it is deemed approved and agencies shall use said funds in
accordance with governing federal and state laws.
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SECTION 7. AMENDATORY 62 O.S. 2021, Section 34.36, is
amended to read as follows:
Section 34.36. A. On the first day of October preceding each
regular session of the Legislature, each state agency, including
those created or established pursuant to constitutional provisions,
shall report to the Director of the Office of Management and
Enterprise Services and the Chair and Vice Chair of the Legislative
Oversight Committee on State Budget Performance an itemized request
showing the amount needed for the ensuing fiscal year beginning with
the first day of July.
B. The forms which must be used in making these reports shall
be approved by the Director of the Office of Management and
Enterprise Services and the Legislative Oversight Committee on State
Budget Performance.
C. The forms shall be uniform, and shall clearly des ignate the
information to be given.
D. The information provided shall include, but not be limited
to:
1. A budget analysis of existing and proposed programs
utilizing performance -informed budgeting techniques. Such analysis
shall be included as a part o f the estimate of funds needed;
2. A statement listing any other state, federal or local
agencies which administer a similar or cooperating program and an
outline of the interaction among such agencies;
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3. A statement of the statutory authority for the m issions and
quantified objectives of each program;
4. A description of the groups of people served by each program
in the agency;
5. A quantification of the need for the program;
6. A description of the tactics which are intended to
accomplish each obje ctive;
7. A list of quantifiable program outcomes which measure the
efficiency and effectiveness of each program;
8. A ranking of these programs by priority;
9. Actual program expenditures for the current fiscal year and
prior fiscal years and the numbe r of personnel required to
accomplish each program;
10. Revenues expected to be generated by each program, if any;
11. With respect to appropriated state agencies, a detailed
listing of all employees and resources dedicated to the provision of
financial services including but not limited to procurement,
payroll, accounts receivable and accounts payable. The provisions
of this paragraph shall not be applicable to the Oklahoma State
Regents for Higher Education or to any institutions within The
Oklahoma State System of Higher Education; and
12. A certification that following the effective date of this
act and prior to July 1, 2011, no expenditure shall have been made
or funds encumbered for the purchase, lease, lease -purchase or
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rental of any computers, so ftware, telecom, information technology
hardware, firmware or information technology services, including
support services without the prior written approval of the State
Comptroller or his or her designee ;
13. What competitive grants an agency has receive d or applied
for;
14. What federal funds an agency has received or expects to
receive as part of a piece of federal legislation that is not
associated with a federal program the agency already operates; and
15. What block grant money an agency receives and how said
funds are expended.
E. These appropriated agencies shall make an itemized estimate
of needs for the ensuing fiscal year and the following two (2)
fiscal years and request for funds for the ensuing fiscal year and
an estimate of the revenues from all sources to be received by the
agency during the ensuing fiscal year and the following two (2)
fiscal years.
F. The Director of the Office of Management and Enterprise
Services shall submit to the Governor and the Legislative Oversight
Committee on State Budget Performance no later than the fifth day of
October a complete list of all spending agencies which have failed
to submit budgets by October 1.
G. The reports required by this section shall include an
itemized listing of outstanding capital l ease debt and estimated
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capital lease needs for the ensuing fiscal year and the following
two (2) fiscal years, and shall be provided on forms prescribed by
the Director of the Office of Management and Enterprise Services.
H. For the purposes of this sect ion, "capital lease" means a
lease-purchase agreement which provides an option for the State of
Oklahoma or its agencies to purchase property, including personal
and real property, which is the subject thereof and/or a lease
agreement that provides an opti on for the State of Oklahoma or its
agencies to lease such property, which is the subject thereof, at a
nominal annual amount, after a period in which leased property is
rented at fair market value.
I. The provisions of this section shall not apply to Com pSource
Oklahoma if CompSource Oklahoma is operating pursuant to a pilot
program authorized by Sections 3316 and 3317 of Title 74 of the
Oklahoma Statutes.
J. Not later than January 1, the Director of the Office of
Management and Enterprise Services shall publish a shared services
cost-performance assessment report documenting the amount of each
state agency's cost for providing shared services. The lowest
ranking state agencies shall enter into a contract with the Office
of Management and Enterprise Serv ices for the provision of shared
financial services, provided that the Director of the Office of
Management and Enterprise Services determines that implementation of
such a contract would be feasible and documents that the contractual
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agreement will result in cost savings or efficiencies to the state.
Contracts required by this subsection shall be entered into at the
start of the next fiscal year. When a state agency is contracted
with the Office of Management and Enterprise Services for the
provision of shared financial services, the agency may discontinue
using shared services when documentation showing that the agency can
provide the services at a lower cost to the state is provided to and
approved by the Director of the Office of Management and Enterpr ise
Services. As used in this subsection, "shared services" means
process, resource utilization or action as defined by administrative
rule. On a yearly basis the Director of the Office of Management
and Enterprise Services shall compile and publish a re port
documenting the cost savings resulting from shared services
contracts. The provisions of this subsection shall not be
applicable to the Oklahoma State Regents for Higher Education or to
any institutions within The Oklahoma State System of Higher
Education.
SECTION 8. AMENDATORY 62 O.S. 2021, Section 34.95, is
amended to read as follows:
Section 34.95. A. The Appropriations and Budget Committee of
the Oklahoma House of Representatives and the Appropriations
Committee of the State Senate shall:
1. Utilize information collected by the Office of Management
and Enterprise Services pursuant to Section 34.36 of this title and
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any reports issued by the Legislative Oversight Committee on State
Budget Performance to evaluate manageme nt programs, operations and
fiscal needs of state agencies, boards, commissions, departments,
divisions, offices, bureaus, institutions and other spending
agencies, including those created or established pursuant to
constitutional provisions; and
2. File an evaluation report no later than March 1 of each
fiscal year with the Chief Clerk of the Oklahoma House of
Representatives and the Clerk of the State Senate which shall
include, but not be limited to, the following information:
a. a review of the agency' s programs, performance and
management,
b. whether the agency has demonstrated a public need for
the services and programs justifying the agency's
continued existence, and
c. whether the agency is the most appropriate provider of
the programs and services furnished by the agency , and
d. what federal funds an agency receives or is expecting
to receive and whether those funds are from
competitive grants, federal legislation, or block
grants.
B. The Appropriations and Budget Committee of the Oklahoma
House of Representatives and the Appropriations Committee of the
State Senate shall utilize information contained in the evaluation
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report in determining final appropriations for state agencies and in
any future adjustments in funding levels.
C. No action shall b e taken on a measure making an
appropriation unless the evaluation report described by paragraph 2
of subsection A of this section with respect to the entity to which
the appropriation is made has first been filed with the applicable
clerk.
D. Each subcommittee of the Appropriations Committee of the
Oklahoma State Senate and the Appropriations and Budget Committee of
the Oklahoma House of Representatives shall establish budget
performance measurements for each spending agency under its
jurisdiction. The p erformance measurements shall be developed in
order to allow the Legislature and the Governor to obtain
measureable data to determine if the agency is performing its duties
in the most cost-effective manner possible.
Each spending agency, whether or not it receives state
appropriations, shall submit analysis reports as required by the
subcommittee in order to enable the subcommittee to make a
determination as to whether the agency has met the established
performance measurements.
Such requirements may be es tablished for the forthcoming fiscal
year and for such additional fiscal years in the future as the
subcommittees deem appropriate.
SECTION 9. This act shall become effective July 1, 2025.
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SECTION 10. It being immediately n ecessary for the preservation
of the public peace, health or safety, an emergency 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.
60-1-12929 MJ 02/25/25