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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1504 By: Hicks
AS INTRODUCED
An Act relating to the Oklahoma Health Care
Authority; amending 63 O.S. 2021, Sections 5007 and
5008, which relate to governance of the Authority;
providing certain power and duty to the Oklahoma
Health Care Authority Board; requiring electronic
submission of certain report; modifying appointing
authority of the Administrator; conforming language;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 5007, is
amended to read as follows:
Section 5007. A. There is hereby created the Oklahoma Health
Care Authority Board which shall consist of the following nine (9)
members:
1. Five members appointed by the Governor;
2. Two members appointed by the Speaker of the House of
Representatives; and
3. Two members appointed by the President Pro Tempore of the
Senate.
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B. Each member shall serve at the pleasure of his or her
appointing authority and may be removed or replaced without cause.
Any member of the Board shall be prohibited from voting on any issue
in which the member has a direct financial interest. The
Administrator of the Oklahoma Health Care Authority shall be an ex
officio member of the Board, but shall be entitled to vote only in
case of a tie vote.
C. The Board shall have the power and duty to:
1. Establish the policies of the Oklahoma Health Care
Authority;
2. Appoint and fix the compensation of the Administrator of the
Authority;
3. Adopt and promulgate rules as necessary and appropriate to
carry out the duties and responsibilities of the Authority. The
Board shall be the rulemaking body for the Authority; and
3. 4. Adopt, publish, and submit electronically by January 1 of
each year to the Governor, the President Pro Tempore of the Senate,
and the Speaker of the House of Representatives appropriate
administrative policies and the business plan for that year. All
actions governed by the administrative policies and annual business
plan shall be examined annually in an independent audit.
D. A majority of the members of the Board shall constitute a
quorum for the transaction of business and for taking any official
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action. Official action of the Board must have a favorable vote by
a majority of the members present.
E. Members appointed pursuant to subsection A of this section
shall serve without compensation but shall be reimbursed for
expenses incurred in the performance of their duties in accordance
with the State Travel Reimbursement Act.
F. The Board and the Authority shall act in accordance with the
provisions of the Oklahoma Open Meeting Act, the Oklahoma Open
Records Act, and the Administrative Procedures Act.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 5008, is
amended to read as follows:
Section 5008. A. The Administrator of the Oklahoma Health Care
Authority shall have the training and experience necessary for the
administration of the Authority, as determined by the Oklahoma
Health Care Authority Board. The Administrator shall be appointed
by the Governor with the advice and consent of the Senate and shall
serve at the pleasure of the Governor Board and may be removed or
replaced without cause. Compensation for the Administrator shall be
determined by the Governor. The Administrator may be removed from
office by a two-thirds (2/3) vote of the members elected to and
constituting each chamber of the Legislature.
B. The Administrator of the Oklahoma Health Care Authority
shall be the chief executive officer of the Authority and shall act
for the Authority in all matters except as may be otherwise provided
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by law. The powers and duties of the Administrator shall include
but not be limited to:
1. Supervision of the activities of the Authority;
2. Formulation and recommendation of rules for approval or
rejection by the Oklahoma Health Care Authority Board and
enforcement of rules and standards promulgated by the Board;
3. Preparation of the plans, reports, and proposals required by
the Oklahoma Health Care Authority Act, Section 5003 et seq. of this
title, other reports as necessary and appropriate, and an annual
budget for the review and approval of the Board;
4. Employment of such staff as may be necessary to perform the
duties of the Authority including, but not limited to, an attorney
to provide legal assistance to the Authority for the state Medicaid
program; and
5. Establishment of a contract bidding process which:
a. encourages competition among entities contracting with
the Authority for state-purchased and state-subsidized
health care; provided, however, the Authority may make
patient volume adjustments to any managed care plan
whose prime contractor is a state-sponsored,
nationally accredited medical school. The Authority
may also make education or research supplemental
payments to state-sponsored, nationally accredited
medical schools based on the level of participation in
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any managed care plan by managed care plan
participants,
b. coincides with the state budgetary process, and
c. specifies conditions for awarding contracts to any
insuring entity.
C. The Administrator may appoint advisory committees as
necessary to assist the Authority with the performance of its duties
or to provide the Authority with expertise in technical matters.
SECTION 3. This act shall become effective November 1, 2026.
60-2-2644 DC 1/9/2026 11:18:00 PM