Oklahoma 2025 Regular Session

Oklahoma House Bill HB1221 Compare Versions

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	3	+	HB1221 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1221 By: West (Kevin), Crosswhite
30		-	Hader, and Adams of the
31		-	House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 60th Legislature (2025)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 1221 By: West (Kevin) and Crosswhite
	38	+	Hader of the House
32	39
33	40		and
34	41
35	42		Frix of the Senate
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	46	+
	47	+	COMMITTEE SUBSTITUTE
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40	49		An Act relating to public finance; creating the State
41	50		Accounts for Federal Expenditures Act (SAFE Act);
42	51		defining certain terms; creating State Accounts for
43	52		Federal Expenditures Accounts (SAFE Accounts);
44	53		determining what said accounts shall be us ed for;
45	54		requiring certain notice to be provided to certain
46	55		persons; requiring agencies to present certain
47	56		information in budget performance reviews; requiring
48	57		approval of agency use of certain funds; requiring
49	58		the creation of SAFE Ac counts after certain
50	59		approvals; requiring agencies to notify the federal
51	60		government of certain actions; requiring certain
52	61		notice to be provided to certain persons; requiring
53	62		certain formal hearings; requiring approval of agency
54	63		use of certain funds; requiring the creation of SAF E
55	64		Accounts after certain approvals; exempting certain
56	65		types of funds; requiring the creation of SAFE
57	66		Accounts after certain federal action; allowing for
58	67		immediate use by certain programs; requiring agencies
59	68		to submit certain informat ion; allowing for appro val
60	69		of certain funds; amending 62 O.S. 2021, Section
61	70		34.36, which relates to estimates of funds needed;
62	71		requiring agencies to submit certain information;
63	72		amending 62 O.S. 2021, Section 34.95, which relates
64	73		to certain reports; requiring agencies to present on
65	74		specific federal funds; providing for codification;
66		-	providing an effective date; and declaring an
67		-	emergency.
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70		-
71		-
72		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
73		-
74		-	ENGR. H. B. NO. 1221 Page 2 1
	76	+	HB1221 HFLR Page 2
	77	+	BOLD FACE denotes Committee Amendments. 1
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	102	+	providing an effective date; and declaring an
	103	+	emergency.
	104	+
	105	+
	106	+
	107	+
	108	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
99	109		SECTION 1. NEW LAW A new section of law to be codified
100	110		in the Oklahoma Statutes as Section 5001 of Title 62, unless there
101	111		is created a duplication in numbering, reads as follows:
102	112		This act shall be known and may be cited as the "State Accounts
103	113		for Federal Expenditures Act" (SAFE Act).
104	114		SECTION 2. NEW LAW A new section of law to be codified
105	115		in the Oklahoma Statutes as Section 5002 of Title 62, unless there
106	116		is created a duplication in numbering, reads as follows:
107	117		As used in the State Accounts for Federal Expenditures A ct:
108	118		1. "Agency" means any agency, board, bureau, commission, or
109	119		other entity organized within the executive department of state
110	120		government;
111	121		2. "Block grant" means a funding mechanism used by the federal
112	122		government that is not based on a program or an application; and
113	123		3. "Competitive grant" means a grant an agency applies for to
114	124		receive federal funding that is not necessarily associated with a
115	125		federal program the agency already operates.
116	126		SECTION 3. NEW LAW A new section of law to b e codified
117	127		in the Oklahoma Statutes as Section 5003 of Title 62, unless there
118	128		is created a duplication in numbering, reads as follows:
119		-	There is hereby created in the State T reasury "State Accounts
120		-	for Federal Expenditures" (SAFE Accounts). These accounts shall be
121		-	used by agencies for funds received under competitive grant awards,
122		-	direct monetary payments to the agency not associated with an
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124		-	ENGR. H. B. NO. 1221 Page 3 1
	130	+	HB1221 HFLR Page 3
	131	+	BOLD FACE denotes Committee Amendments. 1
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	156	+	There is hereby created in the State Treasury "State Accounts
	157	+	for Federal Expenditures" (SAFE Accounts). These accounts shall be
	158	+	used by agencies for funds received under competitive grant awards,
	159	+	direct monetary payments to the agency not associated with an
149	160		established federal program the agency operates, and block grants.
150	161		These accounts shall not be used for existing fed eral programs
151	162		agencies operate as of January 1, 2025, unless the program is a
152	163		competitive grant the agency must reapply for funds after November
153	164		1, 2025.
154	165		SECTION 4. NEW LAW A new section of law to be codified
155	166		in the Oklahoma Statutes as Section 5004 of Ti tle 62, unless there
156	167		is created a duplication in numbering, reads as follows:
157	168		A. Beginning November 1, 2025, all agencies applying for
158	169		competitive grants through Grants.gov, or any of its successors,
159	170		shall submit to the Speaker of t he Oklahoma House of
160	171		Representatives, the President Pro Tempore of the Oklahoma State
161	172		Senate, the Governor, the House Appropriations and Budget Chair, the
162	173		Senate Appropriations Chair, and the Secretary of Finance notice of
163	174		the application that includes, but is not limited to, th e
164	175		application deadline, when the agency expects to hear it will be
165	176		receiving funds under the grant, what federal department, agency, or
166	177		other federal entity is awarding the grant, the amount of the grant,
167	178		the purpose of the grant, an d for how many years th e agency will
168	179		receive funding under the grant if it is awarded.
169		-	B. Beginning with the FY -2027 Budget Performance Reviews as
170		-	described in Section 34.9 5 of Title 62 of the Oklahoma Statutes,
171		-	agencies shall present information on the competitive grants they
172		-	have applied for or are applying for regardless of whether the
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174		-	ENGR. H. B. NO. 1221 Page 4 1
	181	+	HB1221 HFLR Page 4
	182	+	BOLD FACE denotes Committee Amendments. 1
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	207	+	B. Beginning with the FY -2027 Budget Performance Reviews as
	208	+	described in Section 34.95 of Title 62 of the Oklahoma Statutes,
	209	+	agencies shall present information on the competitive grants they
	210	+	have applied for or are applying for regardless of whether the
199	211		agency has submitted notice to the persons mentioned in subsection A
200	212		of this section. Such information shall be contained in the
201	213		agency's Budget Performance Review docum ent and presentation.
202	214		C. No agency shall draw down funds for a competitive grant
203	215		unless it has received approval by the Legislature. Approval shall
204	216		be satisfied by a concurrent resolution. Upon approval, a SAFE
205	217		Account shall be created by the Office of Management and Enterpri se
206	218		Services. Once the account has been created, if the agency is
207	219		awarded the grant, the agency shall be authorized to draw down on
208	220		federal funds as the requirements of the grant have been met. In
209	221		the event the competitive grant is not approved by the Leg islature,
210	222		the agency shall notify the federal government and withdraw its
211	223		application for the funding.
212		-	D. Provisions of this section shall not apply to the Oklahoma
213		-	Department of Transportation if either:
214		-	1. Such competitive grant is used to advance a project or
215		-	projects listed on the 8 Year Construction Work Plan; or
216		-	2. Such competitive grant is provided by the Feder al Railroad
217		-	Administration and a dministration by the Department is limited to a
218		-	rail company or companies that fall under the regulatory purview of
219		-	the Federal Railroad Administration.
220	224		SECTION 5. NEW LAW A new section of law to be codified
221	225		in the Oklahoma Statutes as Section 5005 of Title 62, unless there
222	226		is created a duplication in numbering, reads as follows:
	227	+	A. Beginning November 1, 2025, in the event the federal
	228	+	government, through legislation, directs funds to be granted to
	229	+	state agencies as a form of monetary relief for states due to poor
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224		-	ENGR. H. B. NO. 1221 Page 5 1
	231	+	HB1221 HFLR Page 5
	232	+	BOLD FACE denotes Committee Amendments. 1
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249		-	A. Beginning November 1, 2025, in the event the federal
250		-	government, through legislation, directs funds to be granted to
251		-	state agencies as a form of monetar y relief for states due to poor
252	257		economic conditions, these funds shall be placed in SAFE Accounts
253	258		except for the exemptions provided in subsection E of this section.
254	259		B. Once informed by the federal government that an agency is
255	260		eligible to receive new funding sources, the agency shall submit to
256	261		the Speaker of the Oklahoma House of Representatives, the President
257	262		Pro Tempore of the Oklahoma State Senate, the Governor, the House
258	263		Appropriations and Budget Chair, the Senate Appropriations Chair,
259	264		and the Secretary of Finance notice of the new funding source that
260	265		includes, but is not limited to, the amount of funds the agency is
261	266		to receive, what date or dates it is expected to receive or draw
262	267		down those funds, what timeline it has to obligate and expend the
263	268		funds, and the purpose of the funds.
264	269		C. The Legislature shall hold formal hearings where the agency
265	270		or agencies present this information. No agency shall draw down
266	271		funds from federal legislation providing monetary relief unless it
267	272		has had a formal hearing and received approval by the Leg islature.
268	273		Approval shall be satisfied by concurrent resolution.
269	274		D. Upon approval, a SAFE Account shall be created by the Office
270	275		of Management and Enterprise Services. Once the account has been
271	276		created, the agency shall be authorized to draw down the federal
272	277		funds in the manner determined by federal statute or federal rules.
	278	+	In the event the Legislature does not approve of the use of these
	279	+	funds, the agency shall notify the federal government in the manner
	280	+	as required by the federal act.
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274		-	ENGR. H. B. NO. 1221 Page 6 1
	282	+	HB1221 HFLR Page 6
	283	+	BOLD FACE denotes Committee Amendments. 1
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299		-	In the event the Legislature does not approve of the use of these
300		-	funds, the agency shall notify the federal government in the manner
301		-	as required by the fe deral act.
302	308		E. Upon the effective date of this act , nothing in this section
303		-	shall apply to either temporary increases in existing federal
304		-	programs already managed by state agencies , or federal unemployment
305		-	dollars managed by the Oklahoma Employment Security Commisssion.
	309	+	shall apply to temporary increases in existing federal programs
	310	+	already managed by state agencies.
306	311		SECTION 6. NEW LAW A new section of law to be codified
307	312		in the Oklahoma Statutes as Section 5006 of Title 62 , unless there
308	313		is created a duplication in numbering, reads as follows:
309	314		A. Beginning July 1, 2025, if the federal government, through
310	315		legislation, directs that all federal funds to states are
311	316		appropriated as block grants instead of program-specific funding,
312	317		these funds shall be placed in SAFE Accounts created by the Office
313	318		of Management and Enterprise Services for the correct agency or
314	319		agencies that utilize the funds.
315	320		B. For federal programs that are already in existence, agencies
316	321		shall be able to access these funds immediately in order to prevent
317	322		a stop in service to the people of Oklahoma.
318	323		C. For both current and new programs, agencies shall submit
319	324		information as required under Section 34.36 of Title 62 of the
320	325		Oklahoma Statutes. Agencies shall also pre sent such information as
321	326		required in Section 34.95 of Title 62 of the Oklahoma Statutes.
	327	+	D. The Legislature may formally disapprove of an agency's use
	328	+	of block grant funding through a concurrent resolution. If such
	329	+	disapproval occurs, the agency shall in form its corresponding
	330	+	federal entity of the disapproval and withdraw from receiving such
	331	+	funds. If no action is taken by the Legislature on block grant
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323		-	ENGR. H. B. NO. 1221 Page 7 1
	333	+	HB1221 HFLR Page 7
	334	+	BOLD FACE denotes Committee Amendments. 1
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348		-	D. The Legislature m ay formally disapprove of an agency's use
349		-	of block grant funding through a concurrent resolution. If such
350		-	disapproval occurs, the agency shall inform its corresponding
351		-	federal entity of the disapproval and withdraw from rec eiving such
352		-	funds. If no action is taken by the Legislature on block grant
353	359		funding, it is deemed approved and agencies shall use said funds in
354	360		accordance with governing federal and state laws.
355	361		SECTION 7. AMENDATORY 62 O.S. 2021, Section 34.36, is
356	362		amended to read as follows:
357	363		Section 34.36. A. On the first day of October preceding each
358	364		regular session of the Legislature, each state agency, including
359	365		those created or established pursuant to constitutional provisions,
360	366		shall report to the Director of the Office of Management and
361	367		Enterprise Services and the Chair and Vice Chair of the Legislative
362	368		Oversight Committee on State Budget Perf ormance an itemized req uest
363	369		showing the amount needed for the ensuing fiscal year beginning with
364	370		the first day of July.
365	371		B. The forms which must be used in making these reports shall
366	372		be approved by the Director of the Office of Management and
367	373		Enterprise Services and the Legislat ive Oversight Committee on State
368	374		Budget Performance.
369	375		C. The forms shall be uniform, and shall clearly designate the
370	376		information to be given.
	377	+	D. The information provided shall include, but not be limited
	378	+	to:
	379	+	1. A budget analysis of existing and proposed programs
	380	+	utilizing performance -informed budgeting techniques. Such analysis
	381	+	shall be included as a part of the estimate of funds needed;
371	382
372		-	ENGR. H. B. NO. 1221 Page 8 1
	383	+	HB1221 HFLR Page 8
	384	+	BOLD FACE denotes Committee Amendments. 1
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397		-	D. The information provided shall include, but not be limited
398		-	to:
399		-	1. A budget analysis of existing and proposed programs
400		-	utilizing performance -informed budgeting techniques. Such analysis
401		-	shall be included as a part of th e estimate of funds needed;
402	409		2. A statement listing any other state, federal or local
403	410		agencies which administer a similar or cooperating program a nd an
404	411		outline of the interaction among such agencies;
405	412		3. A statement of the statutory authority for the missions and
406	413		quantified objectives of each program;
407	414		4. A description of the groups of people served by each program
408	415		in the agency;
409	416		5. A quantification of the need for the program;
410	417		6. A description of the tactics which are intended to
411	418		accomplish each objective;
412	419		7. A list of quantifiable program outcomes which measure the
413	420		efficiency and effectiveness of each program;
414	421		8. A ranking of these programs by priority;
415	422		9. Actual program expenditures for the current fiscal year and
416	423		prior fiscal years and the number of personnel required to
417	424		accomplish each program;
418	425		10. Revenues expected to be generated by each program, if any;
419	426		11. With respect to appropriated state agencies, a detailed
420	427		listing of all employees and resources dedicated to the provision of
	428	+	financial services including but not limited to procurement,
	429	+	payroll, accounts receivable and accounts payable. The provisions
	430	+	of this paragraph shall not be a pplicable to the Oklahoma State
	431	+	Regents for Higher Education or to any institutions within The
	432	+	Oklahoma State System of Higher Education; and
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422		-	ENGR. H. B. NO. 1221 Page 9 1
	434	+	HB1221 HFLR Page 9
	435	+	BOLD FACE denotes Committee Amendments. 1
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447		-	financial services including but not limited to procurement,
448		-	payroll, accounts receivable and accounts payable. The provisions
449		-	of this paragraph shall not be applicable to the Oklahoma State
450		-	Regents for Higher Education or to any institu tions within The
451		-	Oklahoma State System of Higher Education; and
452	460		12. A certification that following the effective date of this
453	461		act and prior to July 1, 201 1, no expenditure shall have been made
454	462		or funds encumbered for the purchase, lease, lease -purchase or
455	463		rental of any computers, software, telecom, information technology
456	464		hardware, firmware or information technology services, including
457	465		support services without the prior written ap proval of the State
458	466		Comptroller or his or her designee ;
459	467		13. What competitive grants an agency has received or applied
460	468		for;
461	469		14. What federal funds an agency has received or expects to
462	470		receive as part of a piece of federal legislati on that is not
463	471		associated with a federal program the agency already operates; and
464	472		15. What block grant money an agency receives and how said
465	473		funds are expended.
466	474		E. These appropriated agencies shall make an itemized estimate
467	475		of needs for the ensuing fiscal year and the followi ng two (2)
468	476		fiscal years and request for funds for the ensuing fiscal year and
469	477		an estimate of the revenues from all sources to be received by the
	478	+	agency during the ensuing fiscal year and the following two (2)
	479	+	fiscal years.
	480	+	F. The Director of the Office of Management and Enterprise
	481	+	Services shall submit to the Governor and the Legislative Oversight
	482	+	Committee on State Budget Performance no later than the fifth day of
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471		-	ENGR. H. B. NO. 1221 Page 10 1
	484	+	HB1221 HFLR Page 10
	485	+	BOLD FACE denotes Committee Amendments. 1
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496		-	agency during the ensuing fiscal year and the following two (2)
497		-	fiscal years.
498		-	F. The Director of the Office of Management and Enterprise
499		-	Services shall submit to the Governor and the Legislative Oversight
500		-	Committee on State Budget Performance no later than the fifth day of
501	510		October a complete list of all spending agencies which have failed
502	511		to submit budgets by Octo ber 1.
503	512		G. The reports required by this section shall include an
504	513		itemized listing of outstanding capital lease debt and estimated
505	514		capital lease needs for the ensuing fiscal year and the following
506	515		two (2) fiscal years, and shall be pr ovided on forms prescri bed by
507	516		the Director of the Office of Management and Enterprise Services.
508	517		H. For the purposes of this section, "capital lease" means a
509	518		lease-purchase agreement which provides an option for the State of
510	519		Oklahoma or its agencies to purchase property, includi ng personal
511	520		and real property, which is the subject thereof and/or a lease
512	521		agreement that provides an option for the State of Oklahoma or its
513	522		agencies to lease such property, which is the subject thereof, at a
514	523		nominal annual amount, after a period in which leased property is
515	524		rented at fair market value.
516	525		I. The provisions of this section shall not apply to CompSource
517	526		Oklahoma if CompSource Oklahoma is operating pursuant to a pilot
518	527		program authorized by Sections 3316 and 3317 of Title 74 of the
519	528		Oklahoma Statutes.
	529	+	J. Not later than January 1, the Director of the Office of
	530	+	Management and Enterprise Services shall publish a shared services
	531	+	cost-performance assessment report documenting the amount of each
	532	+	state agency's cost for providing shared services. The l owest
	533	+	ranking state agencies shall enter into a contract with the Office
520	534
521		-	ENGR. H. B. NO. 1221 Page 11 1
	535	+	HB1221 HFLR Page 11
	536	+	BOLD FACE denotes Committee Amendments. 1
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546		-	J. Not later than January 1, the Director of the Office of
547		-	Management and Enterprise Services shall pub lish a shared services
548		-	cost-performance assessment report documenting the amount of each
549		-	state agency's cost for providing shared services. The lowest
550		-	ranking state agencies shall enter into a contract with the Office
551	561		of Management and Enterprise Services for the provision of shared
552	562		financial services, provided that the Director of the Office of
553	563		Management and Enterprise Services determines that im plementation of
554	564		such a contract would be feasible and documents that the contractual
555	565		agreement will result in cost savings or efficiencies to the state.
556	566		Contracts required by this subsection shall be entered into at the
557	567		start of the next fiscal year. Whe n a state agency is contracted
558	568		with the Office of Management and Enterprise Services for the
559	569		provision of shared financial services, the agency may discontinue
560	570		using shared services when documentation showing that the agency can
561	571		provide the services at a l ower cost to the state is provided to and
562	572		approved by the Director of the Office of Management and Enterprise
563	573		Services. As used in this subsection, "shared services" means
564	574		process, resource utilization or action as defined by admini strative
565	575		rule. On a yearly basis the Director of the Office of Management
566	576		and Enterprise Services shall compile and publish a report
567	577		documenting the cost savings resulting from shared services
568	578		contracts. The provisions of this subsection shall not be
569	579		applicable to the Oklahoma State Regents for Higher Education or to
	580	+	any institutions within The Oklahoma State System of Higher
	581	+	Education.
	582	+	SECTION 8. AMENDATORY 62 O.S. 2021, Section 34.95, is
	583	+	amended to read as follows:
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	585	+	HB1221 HFLR Page 12
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596		-	any institutions within The Oklahoma State System of Higher
597		-	Education.
598		-	SECTION 8. AMENDATORY 62 O.S. 2021, Section 34.95, is
599		-	amended to read as follows:
600	611		Section 34.95. A. The Appropriati ons and Budget Committee of
601	612		the Oklahoma House of Representatives and the Appropriations
602	613		Committee of the State Senate shall:
603	614		1. Utilize information collected by the Office of Management
604	615		and Enterprise Services pursuant to Section 34.36 of this title and
605	616		any reports issued by the Legislative Oversight Committee on State
606	617		Budget Performance to evaluate management programs, operations and
607	618		fiscal needs of state agencies, boards, commissions, departments,
608	619		divisions, offices, bureaus, inst itutions and other spen ding
609	620		agencies, including those created or established pursuant to
610	621		constitutional provisions; and
611	622		2. File an evaluation report no later than March 1 of each
612	623		fiscal year with the Chief Clerk of the Oklahoma House of
613	624		Representatives and the Clerk of the Stat e Senate which shall
614	625		include, but not be limited to, the following information:
615	626		a. a review of the agency's programs, performance and
616	627		management,
617	628		b. whether the agency has demonstrated a public need for
618	629		the services and programs just ifying the agency's
619	630		continued existence, and
	631	+	c. whether the agency is the most appropriate provider of
	632	+	the programs and services furnished by the agency , and
	633	+	d. what federal funds an agency receives or is expecting
	634	+	to receive and whether those funds are from
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	636	+	HB1221 HFLR Page 13
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646		-	c. whether the agency is the most appropriate provider of
647		-	the programs and services furn ished by the agency, and
648		-	d. what federal funds an agency receives or is expecting
649		-	to receive and whether those funds are from
650	662		competitive grants, federal legislation, or block
651	663		grants.
652	664		B. The Appropriations and Budget Committee of the Oklahoma
653	665		House of Representatives and the Appropriations Committee of the
654	666		State Senate shall utilize information contained in the evaluation
655	667		report in determining fina l appropriations for state agencies and in
656	668		any future adjustments in funding levels.
657	669		C. No action shall be taken on a measure making an
658	670		appropriation unless the evaluation report described by paragraph 2
659	671		of subsection A of this section with respect to the entity to which
660	672		the appropriation is made has first been filed with the applicable
661	673		clerk.
662	674		D. Each subcommittee of the Appropriations Committee of the
663	675		Oklahoma State Senate and the Appropriations and Budget Committee of
664	676		the Oklahoma House of Representativ es shall establish budget
665	677		performance measurements for each spending agency under its
666	678		jurisdiction. The performance measurements shall be developed in
667	679		order to allow the Legislature and the Governor to obtain
668	680		measureable data to determine if the agency is performing its duties
669	681		in the most cost-effective manner possible.
	682	+	Each spending agency, whether or not it receives state
	683	+	appropriations, shall submit analysis reports as required by the
	684	+	subcommittee in order to enable the subcommitt ee to make a
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696		-	Each spending agency, whether or not it rec eives state
697		-	appropriations, shall submit analysis reports as required by the
698		-	subcommittee in order to enable the subcommittee to make a
699	712		determination as to whether the agency has met the established
700	713		performance measurements.
701	714		Such requirements may be established for the forthcoming fiscal
702	715		year and for such additional fiscal years in the future as the
703	716		subcommittees deem appropriate.
704	717		SECTION 9. This act shall become effective July 1, 2025.
705	718		SECTION 10. It being immediately necessary for the preservation
706	719		of the public peace, health or safety, an emergency is hereby
707	720		declared to exist, by reason whereo f this act shall take e ffect and
708	721		be in full force from and after its passage and approval.
709		-	Passed the House of Representatives the 24th day of March, 2025.
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714		-	Presiding Officer of the House
715		-	of Representatives
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719		-	Passed the Senate the _____ day of __________, 2025.
720		-
721		-
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723		-
724		-	Presiding Officer of the Senate
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	723	+	COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT OVERSIGHT, dated
	724	+	02/26/2025 – DO PASS, As Amended and Coauthored.