Read the full stored bill text
An Act
ENROLLED HOUSE
BILL NO. 3944 By: Kane of the House
and
Haste of the Senate
An Act relating to public finance; amending 62 O.S.
2021, Sections 34.3.1, 34.38, 34.40, 34.42, as last
amended by Section 3, Chapter 199, O.S.L. 2025,
34.43, 34.49, 34.52, 34.80, and 45.10 (62 O.S. Supp.
2025, Section 34.42), which relate to the reporting
and procedural requirements of the State Finance Act;
eliminating obsolete references; updating references;
modifying elements of and submission date for certain
budget documents; expanding limitations for expending
lump sum appropriations; limiting allotments and
reporting to fiscal years; permitting designation of
allotment request officers; simplifying information
technology budget reporting requirements; modifying
procedures related to mid-year budget transfer
requests; clarifying deposit of cancelled warrants
related to federal funds; simplifying certain metrics
reporting requirements; amending 62 O.S. 2021,
Section 34.6, as amended by Section 2, Chapter 14,
2nd Extraordinary Session, O.S.L. 2022, Section
34.36, as amended by Section 2, Chapter 199, O.S.L.
2025, Section 34.36.1, 34.56, 34.95, 34.401, and 45.5
(62 O.S. Supp. 2025, Sections 34.6, 34.36, 34.36.1,
34.56, 34.95, 34.401, and 45.5), which relate to the
powers and duties of the Director of Management and
Enterprise Services and other officials with regard
to the State Finance Act; eliminating certain
reporting and certification requirements; updating
references to legislative entities; vesting surviving
authority of the Special Agency Account Board;
authorizing the utilization of certain information;
limiting certain procedural requirement to certain
period; authorizing certain assistance and training
of agencies; and providing an effective date.
ENR. H. B. NO. 3944 Page 2
SUBJECT: Public finance
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 34.3.1, is
amended to read as follows:
Section 34.3.1. A. The Department of Central Services, Office
of Personnel Management, and Oklahoma State Employees Benefits
Council and the State and Education Employees Group Insurance Board
are consolidated into the Office of Management and Enterprise
Services. The Director of the Office of Management and Enterprise
Services shall assume all executive-level responsibilities for each
agency and shall function as and possess the powers of the agency
director for each consolidated agency as enumerated by existing
statute. For the purposes of this section the term "consolidated
agencies" shall mean the Department of Central Services, Office of
Personnel Management, and Oklahoma State Employees Benefits Council
and the State and Education Employees Group Insurance Board. Any
funds appropriated to, in the possession of or allocated to any of
the consolidated agencies shall be deemed to be funds of the Office
of Management and Enterprise Services.
B. Upon request of the Director of the Office of Management and
Enterprise Services, the personnel of the consolidated agencies
shall deliver to the Office of Management and Enterprise Services
all books, papers, records and property of the consolidated
agencies.
C. All functions, powers, duties and obligations previously
assigned to each of the consolidated agencies are hereby transferred
to the Office of Management and Enterprise Services.
D. All rules, regulations, acts, orders, determinations and
decisions of the consolidated agencies pertaining to the functions
and powers herein transferred and assigned to the Office of
Management and Enterprise Services, in force at the time of such
transfer, assignment, assumption or devolution shall continue in
force and effect as rules, regulations, acts, orders, determinations
and decisions of the consolidated agencies until duly modified or
abrogated by the appropriate body or until otherwise provided by
law.
ENR. H. B. NO. 3944 Page 3
SECTION 2. AMENDATORY 62 O.S. 2021, Section 34.6, as
amended by Section 2, Chapter 14, 2nd Extraordinary Session, O.S.L.
2022 (62 O.S. Supp. 2025, Section 34.6), is amended to read as
follows:
Section 34.6. A. The Director of the Office of Management and
Enterprise Services shall have the power and duty under the
direction of the Governor to:
1. Prepare the budget document and assist in the drafting of
legislation to make it effective;
2. Make field surveys and studies of governmental agencies,
looking toward economy and greater efficiency;
3. Make allotments to control expenditures;
4. Authorize transfers of appropriation authorized by law;
5. Study accounting and other reports rendered by the Division
of Central Accounting and Reporting;
6. Enter into agreements with the United States Secretary of
the Treasury for the purpose of implementing federal law;
7. Aid the Governor in the economical management of state
affairs; and
8. Adopt such rules and regulations concerning the exercise of
powers and duties as the Director shall deem appropriate, in
accordance with the Administrative Procedures Act.
B. In addition to other duties, the Director of the Office of
Management and Enterprise Services shall, upon request, advise and
consult with members of the Legislature and legislative committees
concerning revenue and expenditures of state agencies.
C. The Director of the Office of Management and Enterprise
Services shall publish daily reports of all expenditures of funds
from the Coronavirus Aid, Relief, and Economic Security (CARES) Act
on the Oklahoma Checkbook page on the state website.
D. The Director of the Office of Management and Enterprise
Services shall report weekly on the status of all grant agreements,
as provided for in Section 1 255.1 of this act title.
ENR. H. B. NO. 3944 Page 4
E. D. The Director of the Office of Management and Enterprise
Services shall report quarterly to the chairs of the Joint Committee
on Pandemic Relief Funding and make available to the public on the
state's website, a quarterly report of all expenditures of federal
funds drawn down from the American Rescue Plan Act 2021 (ARPA),
Public Law 117-2.
F. E. The Director of the Office of Management and Enterprise
Services shall provide technical assistance to agencies seeking to
comply with state law and federal guidelines as a recipient of
federal funds. Technical assistance shall include, but not be
limited to, procurement and competitive bidding requirements
assistance, capital expenditure assistance, model templates, model
agreements, grants management software or other advice, recommended
reporting, and accounting of federal funds, to all state agencies
who request technical assistance.
SECTION 3. AMENDATORY 62 O.S. 2021, Section 34.36, as
amended by Section 2, Chapter 199, O.S.L. 2025 (62 O.S. Supp. 2025,
Section 34.36), is amended to read as follows:
Section 34.36. A. On the first day of October November
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 directors of the divisions in each body of the
Legislature assigned oversight of 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 directors of the divisions in each body of the
Legislature assigned oversight of state budget performance.
C. The forms shall be uniform, and shall clearly designate the
information to be given.
D. The information provided shall include, but not be limited
to:
ENR. H. B. NO. 3944 Page 5
1. A budget analysis of existing and proposed programs
utilizing performance-informed budgeting techniques. Such analysis
shall be included as a part of 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;
3. A statement of the statutory authority for the missions 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 objective;
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 number of personnel required to
accomplish each program;
10. 9. Revenues expected to be generated by each program, if
any; and
11. 10. 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
rental of any computers, software, telecom, information technology
hardware, firmware or information technology services, including
ENR. H. B. NO. 3944 Page 6
support services without the prior written approval of the State
Comptroller or his or her designee.
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 directors of the divisions in
each body of the Legislature assigned oversight of state budget
performance, no later than the fifth day of October November a
complete list of all spending agencies which have failed to submit
budgets by October November 1.
G. The reports required by this section shall include an
itemized listing of outstanding capital lease debt and estimated
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 section, "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 option 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. 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 Services 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
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
ENR. H. B. NO. 3944 Page 7
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 Enterprise
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 report
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 4. AMENDATORY 62 O.S. 2021, Section 34.36.1, is
amended to read as follows:
Section 34.36.1. A. Each state agency that is required to
provide an itemized budget request pursuant to the provisions of
Section 34.36 of Title 62 of the Oklahoma Statutes this title shall
provide to the Director of the Office of Management and Enterprise
Services a written report, in a form approved by the Director,
containing the following information:
1. The amount of federal funds received by the agency;
2. The source or sources of federal funds received by the
agency;
3. A description of any action required to be taken by the
agency as a condition for the receipt or continued receipt of
federal funds; and
4. A description of any action prohibited to be taken by the
agency as a condition for the receipt or continued receipt of
federal funds.
B. The report shall be submitted with the budget information
required by Section 34.36 of Title 62 of the Oklahoma Statutes this
title by the date required by that section.
C. The Director of the Office of Management and Enterprise
Services shall post the information contained in each agency's
ENR. H. B. NO. 3944 Page 8
report on the website created pursuant to Section 46 of Title 62 of
the Oklahoma Statutes this title.
SECTION 5. AMENDATORY 62 O.S. 2021, Section 34.38, is
amended to read as follows:
Section 34.38. The budget shall be submitted to the Legislature
and shall be in two parts:
1. A budget message:
a. outlining the fiscal policy of the state for the
fiscal year and describing the important features of
the budget,
b. giving a summary of the budget setting forth aggregate
figures of proposed revenues and expenditures and the
balanced relations between the proposed revenues and
expenditures and the total expected income and other
means of financing the budget compared with the
corresponding figures for the preceding fiscal year,
c. including explanatory schedules classifying proposed
expenditures by organization units, objects and funds,
d. giving estimated statements of assets and liabilities
as of the close of the preceding fiscal year and of
the budget year, and
e. explaining any proposed major increases in revenue
from any existing source or any new source of revenue
proposed, and
f. giving any further information or making any
suggestions; and
2. The detailed budget estimates of revenues and expenditures
for each fund as provided for in the Oklahoma State Finance Act
showing the recommendations of the Governor on each, compared with
the figures for the preceding fiscal year and giving an explanation
of each major change in the recommendations from the revenues and
expenditures in the previous fiscal year.
The budget shall be submitted to the Legislature containing the
following:
ENR. H. B. NO. 3944 Page 9
1. An outline of the fiscal policy of the state for the fiscal
year and a description of the important features of the budget;
2. A summary of the budget setting forth aggregate figures of
proposed revenues and expenditures and the balanced relations
between the proposed revenues and expenditures and the total
expected income and other means of financing the budget compared
with the corresponding figures for the preceding fiscal year, giving
estimated statements of assets and liabilities as of the close of
the preceding fiscal year, and giving any further information or
making any suggestions;
3. A balanced budget presented by agency based on the revenue
certified at the most recent Board of Equalization meeting, plus any
additional revenues detailed in the proposed budget; and
4. The detailed budget estimates of revenues and expenditures
showing the recommendations of the Governor on each, compared with
the figures for the preceding fiscal year and giving an explanation
of each major change in the recommendations from the revenues and
expenditures in the previous fiscal year.
SECTION 6. AMENDATORY 62 O.S. 2021, Section 34.40, is
amended to read as follows:
Section 34.40. A. When lump sum appropriations are made for
personal services, or for maintenance and operations, or for
maintenance and operations including personal services, no monies so
appropriated shall be available for payments for such expenses until
a schedule of positions and salaries and the amounts to be available
for the expenses shall have been approved by the Director of the
Office of Management and Enterprise Services and posted to the state
accounting system. The provisions of this subsection shall not
apply to such appropriations for the Legislature or judiciary, for
expenses of holding elections, or for temporary services or day
labor.
B. Any such approved schedule of positions and salaries may be
amended with the approval of the Director of the Office of
Management and Enterprise Services.
C. The request officer for each agency shall show the
classification of the expenditures for their agency, and such
classification shall follow the uniform budget and accounting
ENR. H. B. NO. 3944 Page 10
classifications adopted for similar spending agencies, except for
items peculiar to certain departments or institutions.
D. The Director of the Office of Management and Enterprise
Services shall not have authority to fix the amount of any agency
salary or eliminate any position listed on such schedule. However,
the Director shall not approve the schedule of positions and
salaries when the total amount of funds requested to be allotted
fails to reserve a sufficient balance to finance the operations of
the agency for the remainder of that fiscal year, considering any
possible failure in the revenue estimated to be collected for that
fiscal year.
E. The Director of the Office of Management and Enterprise
Services shall not have the authority to curtail the operation of
any particular part of the program, but shall order a reduction in
the total program only where insufficient revenues are anticipated
to carry on the program for the period concerned.
SECTION 7. AMENDATORY 62 O.S. 2021, Section 34.42, as
last amended by Section 3, Chapter 199, O.S.L. 2025 (62 O.S. Supp.
2025, Section 34.42), is amended to read as follows:
Section 34.42. A. On or before the first day of June in each
year, or as soon thereafter as possible, all agencies shall file
agency budgets with the Director of the Office of Management and
Enterprise Services. Copies of all agency budgets shall also be
made available electronically to the staff of the Joint Legislative
Committee on Budget and Program Oversight.
B. The required instructions, content and format of agency
budgets shall be developed by the staff of the Budget Division of
the Office of Management and Enterprise Services.
C. 1. The agency budget shall include a description of all
funds available to the agency for expenditure and set out allotments
requested by the agency by quarter and the entire fiscal year.
2. The agency budget shall be accompanied by an organizational
chart of the agency, a statement of agency mission and program
objectives.
3. The agency budget shall delineate agency spending by such
categories and with at least as much detail as is specified in the
ENR. H. B. NO. 3944 Page 11
legislative appropriation and as prescribed by the Director of the
Office of Management and Enterprise Services.
4. Agency budgets shall be signed by the executive officer of
each agency.
5. The executive officer shall certify that the agency is in
complete compliance with the requirements of Section 34.11.3 of this
title and Section 3-114 of Title 65 of the Oklahoma Statutes.
D. A "request officer" shall may be designated by each state
agency for the purpose of making program and allotment requests.
E. Executive officers of agencies shall cooperate with the
Office of Management and Enterprise Services staff and Joint
Committee staff in developing program budgeting categories.
F. All funds available or expected to be made available to any
agency, including nonfiscal appropriations, shall not be available
for expenditure until the request officer of the agency has complied
with the applicable provisions of the Oklahoma State Finance Act and
has received approval of such request for funds from the Director of
the Office of Management and Enterprise Services.
SECTION 8. AMENDATORY 62 O.S. 2021, Section 34.43, is
amended to read as follows:
Section 34.43. A. All agencies of the state shall submit to
the Director Chief Information Officer of the Office of Management
and Enterprise Services in all agency their detailed information
technology budgets, in addition to other required information,
whether such reports relate to past, present or future expenditures,
an itemization of the amount attributable to each of the following
expenses:
1. The number of persons, total amount of all salaries, the
total amount of travel and subsistence expense and the total amount
of personnel expense for:
a. data processing directors,
b. systems analysts,
c. programmers,
ENR. H. B. NO. 3944 Page 12
d. electronic data processing operators,
e. punch card machine operators,
f. data processing control personnel,
g. data processing clerical personnel, and
h. other data processing personnel;
2. Rental of data processing equipment;
3. Purchase of data processing equipment;
4. Maintenance of data processing equipment, if not included in
rental expense;
5. Data processing supplies;
6. Data processing planning;
7. Data processing conversion from one system to another;
8. Rental and purchase of non-data processing equipment and
supplies utilized in a data processing operation;
9. Shipment of data processing equipment;
10. Rental of communication lines for transmission of data
processing information;
11. Data processing education;
12. Rental of software packages;
13. Contracting for development of systems; and
14. Other data processing expense for approval.
B. All disbursements made from treasury funds by any state
agency for the above-named expenses shall be budgeted to and
disbursed from a special allotment account to be created by the
Director of the Office of Management and Enterprise Services.
ENR. H. B. NO. 3944 Page 13
C. This section shall not preclude agencies from programming
and expending intra-agency data processing costs for cost allocation
purposes.
SECTION 9. AMENDATORY 62 O.S. 2021, Section 34.49, is
amended to read as follows:
Section 34.49. A. Appropriations and/or federal funds shall be
allotted for each agency as provided by the language of the
legislative appropriation and other applicable state law. Items may
be allotted on a monthly, quarterly, semiannual or annual basis upon
the written request of the agency and the approval of the Director
of the Office of Management and Enterprise Services.
B. The request officer for each agency shall present the
proposed classification of the expenditures for that agency in such
manner as may be required by the Office of Management and Enterprise
Services.
C. Each agency shall be required to identify those items that
are for capital purposes in keeping with the definition of capital
projects promulgated by the Long-Range Capital Planning Commission.
Requests for capital appropriations and an agency's original budget
request shall be for capital projects that have been submitted to
the Long-Range Capital Planning Commission for review.
D. The Director of the Office of Management and Enterprise
Services shall review the requested allotments with respect to the
agency budget with each agency. The Director may require the agency
to change such allotments before approving them, if it is deemed
necessary, reserving a sufficient balance in the appropriation to
finance the operations of the agency for the remainder of any fiscal
year.
E. D. At the end of any fiscal year, the entire amount
appropriated to any agency must be allotted to the agency by the
Director of the Office of Management and Enterprise Services, except
where the estimated budget resources during any fiscal year are
insufficient to pay all of the appropriations of the state in full
for such year. The Director of the Office of Management and
Enterprise Services shall not allot to any agency during any fiscal
year, an amount which will be in excess of the amount of revenue
collected and allocated to appropriations made to such agency.
ENR. H. B. NO. 3944 Page 14
F. E. In the event of a failure of revenue, the Director of the
Office of Management and Enterprise Services shall control the
allotment to prevent obligations being incurred in excess of the
revenue to be collected. However, within each state fund where a
revenue failure occurs, the Director of the Office of Management and
Enterprise Services shall make all reductions apply to each state
agency or special appropriation made by the State Legislature, in
the ratio that its total appropriation for that fiscal year bears to
the total of all appropriations for that fiscal year, as provided in
Section 23 of Article X of the Oklahoma Constitution.
G. F. An allotment may be approved for any item for the entire
year or may be approved on a monthly, quarterly, or semiannual
basis, but in no case shall the aggregate of such allotments for any
agency exceed the total appropriation made available to such agency
for the fiscal year to which they apply. Each agency's request for
appropriation allotments shall show the amount required to finance
each item of the request for the entire year and on a quarterly
basis within each fiscal year.
H. G. The Director of the Office of Management and Enterprise
Services shall review each allotment request for the purpose of
determining whether:
1. The itemized requests are in accordance with not in excess
of the agency budget;
2. The accounting classification is sufficient to reflect the
purposes for which the expenditures are to be made;
3. The current financial requirements of the agency justify the
monthly or quarterly allotment, reserving a sufficient balance to
finance the remaining months or quarters remainder of the budget
year; and
4. The realization of the estimated revenues is sufficient to
allow the allotments to be made.
I. H. The Legislature shall be exempt from submitting any
agency budget or allotment request.
SECTION 10. AMENDATORY 62 O.S. 2021, Section 34.52, is
amended to read as follows:
ENR. H. B. NO. 3944 Page 15
Section 34.52. A. The administrative head of any agency or the
request officer may request that any current item of appropriation,
allotment, or budget category be transferred to any other budget
category within the same agency.
B. The administrative head shall make a request for budget
transfer to the Director of the Office of Management and Enterprise
Services in writing and file a revised agency budget.
C. Copies of the request for budget transfer and corresponding
agency budget revisions shall also be filed with the Joint
Legislative Committee on Budget and Program Oversight as created by
Section 34.96 of this title chairs of the committees in each body of
the Legislature overseeing appropriations and the directors of the
divisions in each body of the Legislature assigned oversight of
state budget performance.
D. The Director of the Office of Management and Enterprise
Services shall approve the request for transfer unless both the
Chair and Vice Chair of the Joint Legislative Committee on Budget
and Program Oversight provide written notification to the Director
of the Office of Management and Enterprise Services within twelve
(12) calendar days of receipt of transfer request that the transfer
subverts the intention and objectives of the Legislature in
establishing the original appropriation, or unless the transfer does
not meet the requirements of this section or Section 34.49 of this
title. Notification of noncompliance with legislative intent shall
be transmitted to the Director of the Office of Management and
Enterprise Services within twelve (12) calendar days of receipt of
the transfer request. The Director of the Office of Management and
Enterprise Services shall give written notice of approval or
disapproval of each budget transfer to the agency, the Governor and
the Chair and Vice Chair of the Joint Legislative Committee on
Budget and Program Oversight chairs of the committees in each body
of the Legislature overseeing appropriations and the directors of
the divisions in each body of the Legislature assigned oversight of
state budget performance within eighteen (18) calendar days of
receiving the request.
E. Transfers shall be subject to the following limitations:
1. The amount to be transferred, together with all previous
transfers, shall not exceed twenty-five percent (25%) of the total
appropriation of the least of the items of appropriation, allotment
or agency budget involved in the transfer; and
ENR. H. B. NO. 3944 Page 16
2. If the amount to be transferred, and all previous transfers,
is greater than twenty-five percent (25%) of the least items of
appropriation, allotment or agency budget involved in the transfer
request, the agency may make an application to the Director of the
Office of Management and Enterprise Services, and the Chair and Vice
Chair of the Joint Legislative Committee on Budget and Program
Oversight chairs of the committees in each body of the Legislature
overseeing appropriations, and the directors of the divisions in
each body of the Legislature assigned oversight of state budget
performance. If the agency obtains written approval from the
Director of the Office of Management and Enterprise Services and the
Chair and Vice Chair of the Joint Legislative Committee Budget and
Program Oversight, an additional fifteen percent (15%) may be
transferred chairs of the committees in each body of the Legislature
overseeing appropriations, the Director of the Office of Management
and Enterprise Services shall approve the request for transfer.
SECTION 11. AMENDATORY 62 O.S. 2021, Section 34.56, is
amended to read as follows:
Section 34.56. A. There is hereby re-created, to continue
until July 1, 2008, in accordance with the provisions of the
Oklahoma Sunset Law, a Special Agency Account Board, to consist of
the Director of the Office of Management and Enterprise Services,
the State Treasurer and the Director of the Legislative Service
Bureau. The Board shall have the authority to approve the
establishment of agency special accounts in the official depository
of the State Treasury. In the case of institutions of higher
education, the Special Agency Account Board, acting in conjunction
with the Oklahoma State Regents for Higher Education, shall
establish special agency accounts as appropriate which shall be
consistent with provisions of the Oklahoma State Finance Act, as it
relates to institutions in The Oklahoma State System of Higher
Education. Following the sunset of the Special Agency Account
Board, all authority vested in the Board shall transfer to the
Director of the Office of Management and Enterprise Services.
B. The Board, created by this section, shall adopt procedures
including application forms, justification and other pertinent
information as to the basis for a state agency application for the
establishment of agency special accounts.
C. The Board may approve agency special accounts for money
received by state agencies for the following purposes:
ENR. H. B. NO. 3944 Page 17
1. Benefit programs for individuals, including, but not limited
to, unemployment compensation, workers' compensation and state
retirement programs;
2. Revenues produced by activities or facilities ancillary to
the operation of a state agency which receive no money, directly or
indirectly, from or through that state agency, including, but not
limited to, revenues from the sales of food at retail level, sales
at canteens, sales at student unions, sales at student bookstores,
receipts from athletic programs and receipts from housing.
Provided, however, that a state institution of higher learning may
purchase necessary equipment and instructional supplies and office
supplies from a student bookstore, or, subject to authorization by
the Oklahoma State Regents for Higher Education, may rent building
space for institutional use in a building operated by an
organization or entity whose existence is ancillary to the operation
of a state agency, and whose cost was financed in whole or in part
with revenue-type bonds; provided, further, that the cost of such
office supplies or space rental shall not exceed the cost of similar
supplies or rentals available commercially;
3. Gifts, devises and bequests with an agency as beneficiary,
unless otherwise provided by statute;
4. Evidence funds for law enforcement agencies;
5. Student loan funds and scholarship funds;
6. Funds held in escrow;
7. Land Commission funds;
8. Funds for which the state agency acts as custodian,
including, but not limited to, fees from employee earnings approved
by the governing board of the agency, funds of student organizations
including student activity fees collected by an educational
institution as a separate item in enrollment procedures,
professional organizations, patients and inmates;
9. Funds used by the Oklahoma Tax Commission to pay for the
filing of liens with the Federal Aviation Administration;
10. Temporary accounts for funds arising from new or amended
legislation not otherwise provided for in statute or for other
ENR. H. B. NO. 3944 Page 18
emergency situations. Such accounts are to be utilized only pending
legislative action directing custody of such funds;
11. Payment of liability claims against the state;
12. Activities of the various Armory Boards of the Oklahoma
Military Department to receive and dispense funds derived by the
Armory Boards pursuant to Sections 232.6 and 232.7 of Title 44 of
the Oklahoma Statutes; and
13. Payment of expenses incurred in connection with the
acceptance of payments made with nationally recognized credit cards.
D. The State Treasurer is authorized to accept deposit of money
made directly to agency special accounts approved by the Board. All
money received by a state agency, as described in Section 34.57 of
this title, shall be deposited in State Treasury funds or accounts
and no money shall be deposited in banks or other depositories
unless the bank accounts are maintained by the State Treasurer or
are for the deposit of authorized petty cash funds.
E. Money deposited in agency special accounts shall be
disbursed on vouchers issued by the state agency concerned to
accomplish the purpose for which the money was intended.
F. Funds and revenues of the Grand River Dam Authority are
exempt from the requirements of this section.
G. Funds and revenues of the Oklahoma Municipal Power Authority
are exempt from the requirements of this section.
H. Monies used for investment purposes by the Oklahoma
Firefighters Pension and Retirement System, the Oklahoma Police
Pension and Retirement System, the Uniform Retirement System for
Justices and Judges, the Oklahoma Law Enforcement Retirement System,
the Oklahoma Public Employees Retirement System, the Teachers'
Retirement System of Oklahoma, the State Insurance Fund, the
Oklahoma Employees Insurance and Benefits Board, the Commissioners
of the Land Office, and the Oklahoma State Regents for Higher
Education for its Endowment Trust Fund are exempt from the
requirements of this section, and shall be placed with the
respective custodian bank or trust company.
SECTION 12. AMENDATORY 62 O.S. 2021, Section 34.80, is
amended to read as follows:
ENR. H. B. NO. 3944 Page 19
Section 34.80. A. All warrants, checks or orders issued by the
State Treasurer against claims submitted through the Office of
Management and Enterprise Services in payment of obligations of the
state which shall for any cause remain outstanding or unpaid for a
period of ninety (90) days after funds are available for their
payment shall be revoked and canceled.
B. Such warrants, checks or orders shall be entered into the
records of the Office of Management and Enterprise Services and the
State Treasurer and the administrative head of the agency certifying
the claim for payment shall be notified that such items have been
canceled.
C. If, for any reason, a warrant should not be issued to
replace a warrant canceled pursuant to the provisions of this
section, the administrative head of the agency originally certifying
the claim for payment shall, within seven (7) days after
notification of the cancellation, advise the Director of the Office
of Management and Enterprise Services that a reissue should not be
made.
D. Notwithstanding the provisions of subsection B of this
section, warrants issued or caused to be issued by the Department of
Human Services for public assistance or medical assistance may be
reissued at any time within three (3) years after cancellation upon
submission of the canceled warrants to the Department.
E. No canceled warrants shall be paid, except that the holder
of any warrant that may have been canceled pursuant to the
provisions of this section may, within thirty-six (36) months
following the month in which the warrant was canceled, present the
warrant or an affidavit of loss or destruction and a request for
reissuance to the Director of the Office of Management and
Enterprise Services.
F. The Director of the Office of Management and Enterprise
Services shall certify a claim as needed for payment of those
verified unpaid requests presented, unless the certifying agency has
advised that a reissuance should not be made.
G. 1. There is hereby created in the State Treasury a fund to
be known as the Canceled Warrant Fund.
ENR. H. B. NO. 3944 Page 20
2. The Director of the Office of Management and Enterprise
Services shall transfer to the Canceled Warrant Fund the total of
the payable amounts of the warrants canceled pursuant to the
provisions of this section from the funds and accounts against which
the canceled warrants had been drawn.
3. The Office of Management and Enterprise Services shall
disburse from the fund such amounts as necessary to pay warrants
reissued as provided in this section.
4. These expenditures shall remain recorded in the funds and
accounts against which the original canceled warrants were issued
and they shall not be considered expenses of the state nor shall
receipts to the fund be considered revenue to the state.
5. Any such claim drawn against the Canceled Warrant Fund shall
identify the current holder of record and the warrant number of the
canceled warrant, which shall be provided on the warrant record.
H. The Director of the Office of Management and Enterprise
Services shall determine the minimum necessary balance to be
maintained in the Canceled Warrant Fund and on the third Monday of
October shall transfer the amount in excess of the required minimum
balance to the General Revenue Fund of the current year. The
minimum balance retained shall be not less than the total amount of
the warrants canceled by statute within the past thirty-six (36)
months preceding October 1 of each year and which remain eligible
for replacement according to the records of the Office of Management
and Enterprise Services. Provided, funds in the Canceled Warrant
Fund due to the cancellation of warrants from federal funds or the
Crime Victims Compensation Fund shall be transferred to the Crime
Victims Compensation Fund their originating fund upon cancellation
and not to the General Revenue Fund.
SECTION 13. 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
any reports issued by the Legislative Oversight Committee on State
Budget Performance information provided directly from an agency to
ENR. H. B. NO. 3944 Page 21
evaluate management 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.
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
report in determining final appropriations for state agencies and in
any future adjustments in funding levels.
C. No action shall be 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 performance 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
ENR. H. B. NO. 3944 Page 22
determination as to whether the agency has met the established
performance measurements.
Such requirements may be established for the forthcoming fiscal
year and for such additional fiscal years in the future as the
subcommittees deem appropriate.
SECTION 14. AMENDATORY Section 1, Chapter 346, O.S.L.
2025 (62 O.S. Supp. 2025, Section 34.401), is amended to read as
follows:
Section 34.401. In addition to other duties imposed upon the
Office of Management and Enterprise Services (OMES) by law, for
fiscal years 2026, 2027, and 2028 the Director of the Office of
Management and Enterprise Services shall ensure that the following
procedures are strictly adhered to with respect to the Oklahoma
Department of Mental Health and Substance Abuse Services:
1. In accordance with paragraph 3 of subsection A of Section
34.6 of this title, prior to releasing the one-twelfth (1/12)
appropriations disbursement, OMES shall conduct a review of the
agency's budget to actuals to ensure the agency is staying within
budget constraints;
2. OMES shall provide a report to the Governor, the Speaker of
the Oklahoma House of Representatives, the President Pro Tempore of
the Oklahoma State Senate, and the chairs and vice-chairs of the
standing committees of the Oklahoma House of Representatives and the
Oklahoma State Senate having primary responsibility for the
consideration of agency appropriations concerning the status of
revenue and expenditures of the agency;
3. The Oklahoma Department of Mental Health and Substance Abuse
Services shall be prohibited from entering into contracts that do
not clearly state a maximum fiscal obligation;
4. OMES shall review encumbrances for any multi-year purchase
orders or contracts to ensure that only the anticipated amount of
funds for the current fiscal year are encumbered; and
5. OMES shall prohibit the processing of payments for non-
budgeted expenditures.
SECTION 15. AMENDATORY 62 O.S. 2021, Section 45.5, is
amended to read as follows:
ENR. H. B. NO. 3944 Page 23
Section 45.5. A. The Office of Management and Enterprise
Services and the Joint Legislative Committee on Budget and Program
Oversight divisions in each body of the Legislature assigned
oversight of state budget performance shall, as needed, work with
each state agency to determine acceptable measures of output,
outcome, unit cost, and cost-effectiveness for use in the agency's
plan.
B. The Office of Management and Enterprise Services is, and are
authorized to provide corresponding training or other services to
state agencies pursuant to this act.
SECTION 16. AMENDATORY 62 O.S. 2021, Section 45.10, is
amended to read as follows:
Section 45.10. A. Pursuant to this act, the Director of the
Office of State Finance shall develop processes and procedures to
guide state agencies in preparation of performance reporting metrics
to be published for each cabinet, state agency and statewide and
agency-specific initiatives. These metrics shall account for input,
output and outcome measures and provide benchmarks to which the
performance measures can be compared for evaluation of performance.
Metrics shall include not less than three consistent scales
demonstrating that a performance expectation or benchmark has been
achieved, partially achieved or not achieved. At least one metric
shall demonstrate the cost per person served by the agency.
B. State agencies shall provide information as required by the
Director to assist in the development of performance reporting
metrics and benchmarks.
C. Cabinet secretaries and agencies shall provide appropriate
benchmarks against which performance should be compared to determine
the agencies' success or failure to meet established performance
reporting benchmarks.
D. Performance metrics showing agency and agency program-level
performance shall be published and prominently featured on the state
Internet portal and through the direct domain performance.ok.gov.
This data shall be updated on a regular basis.
E. Performance metrics and standards shall be reviewed and
approved annually.
ENR. H. B. NO. 3944 Page 24
F. For the purposes of this section, "performance reporting
metrics" shall mean a set of criteria which demonstrates the
quantity and quality of work.
SECTION 17. This act shall become effective September 1, 2026.
ENR. H. B. NO. 3944 Page 25
Passed the House of Representatives the 11th day of March, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the 29th day of April, 2026.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________