State government; directing submission of certain reports to utilize certain centralized filing system; directing the Office of the Secretary of State to create and maintain certain centralized filing system. Effective date.

An Act
ENROLLED SENATE
BILL NO. 1877 By: Hall of the Senate

and

Caldwell (Trey) of the
House

An Act relating to state government; amending 2 O.S.
2021, Sections 5-10, 5-85, as amended by Section 2,
Chapter 174, O.S.L. 2025, 5-507, 3, Chapter 391,
O.S.L. 2022, 6, Chapter 297, O.S.L. 2023, 14, Chapter
297, O.S.L. 2023, and 19, Chapter 297, O.S.L. 2023 (2
O.S. Supp. 2025, Sections 5-85, 11-13, 4006, 4014,
and 4019), which relate to agriculture; directing
submission of certain reports to utilize certain
centralized filing system; removing certain obsolete
report; amending Section 1, Chapter 126, O.S.L. 2024
(3 O.S. Supp. 2025, Section 415), which relates to
the Long-Term Aerospace and Aeronautics
Infrastructure Sustainability Revolving Fund;
directing submission of certain report to utilize
certain centralized filing system; amending 3A O.S.
2021, Sections 204, 619, 733, as amended by Section
4, Chapter 332, O.S.L. 2023, and 734 (3A O.S. Supp.
2025, Section 733), which relate to amusement and
sports; directing submission of certain reports to
utilize certain centralized filing system; amending 6
O.S. 2021, Section 212, which relates to the Banking
Department; directing submission of certain report to
utilize certain centralized filing system; amending
10 O.S. 2021, Sections 22.1, 405.1, 601.5, as amended
by Section 3, Chapter 347, O.S.L. 2024, 601.6, as
amended by Section 1, Chapter 178, O.S.L. 2025,
601.6a, as amended by Section 4, Chapter 347, O.S.L.
2024, 601.6b, as amended by Section 5, Chapter 347,
O.S.L. 2024, 601.6c, 601.81, 2, Chapter 35, 1st
Extraordinary Session, O.S.L. 2023, 1150.2, as last
amended by Section 10, Chapter 347, O.S.L. 2024, and
1411.1 (10 O.S. Supp. 2025, Sections 601.5, 601.6,

ENR. S. B. NO. 1877 Page 2
601.6a, 601.6b, 802, and 1150.2), which relate to
children; removing certain obsolete report; directing
submission of certain reports to utilize certain
centralized filing system; amending 10A O.S. 2021,
Sections 1-2-111, 1-6-105, 1-8-111, 1-9-105, 1-9-120,
as amended by Section 2, Chapter 28, O.S.L. 2023, 2-
7-311, 2-7-606, 2-7-705, 2-7-905, and 2-10-103 (10A
O.S. Supp. 2025, Section 1-9-120), which relate to
the children and juvenile codes; directing submission
of certain reports to utilize certain centralized
filing system; removing certain obsolete report;
amending 11 O.S. 2021, Sections 49-100.8, 49-100.9,
50-105.3, and 50-105.4, which relate to municipal
firefighter and police pension and retirement
systems; directing submission of certain reports to
utilize certain centralized filing system; amending
14A O.S. 2021, Sections 6-104 and 6-504, which relate
to the Department of Consumer Credit; directing
submission of certain reports to utilize certain
centralized filing system; amending 17 O.S. 2021,
Sections 40.1, 253, 325, 1, Chapter 403, O.S.L. 2022,
and 802.3, as last amended by Section 2, Chapter 31,
O.S.L. 2024 (17 O.S. Supp. 2025, Sections 801.9 and
802.3), which relate to the Corporation Commission;
directing submission of certain reports to utilize
certain centralized filing system; amending 19 O.S.
2021, Section 215.28, which relates to the creation
of the District Attorneys Council; directing
submission of certain report to utilize certain
centralized filing system; amending 20 O.S. 2021,
Sections 3.3, 1103.1, 1108, 1225, and 1656, which
relate to courts; directing submission of certain
reports to utilize certain centralized filing system;
amending 21 O.S. 2021, Sections 142.15 and 1290.16,
which relate to crimes and punishments; directing
submission of certain reports to utilize certain
centralized filing system; amending 22 O.S. 2021,
Sections 34.5, 116, 988.15, as amended by Section 1,
Chapter 14, O.S.L. 2023, 991a, as last amended by
Section 1, Chapter 306, O.S.L. 2025, 991f-1.1,
1355.4, 1601, as amended by Section 1, Chapter 51,
O.S.L. 2024, and 2002, as amended by Section 2,

ENR. S. B. NO. 1877 Page 3
Chapter 327, O.S.L. 2025 (22 O.S. Supp. 2025,
Sections 988.15, 991a, 1601, and 2002), which relate
to criminal procedure; directing submission of
certain reports to utilize certain centralized filing
system; amending 27A O.S. 2021, Sections 1-1-202, as
last amended by Section 1, Chapter 164, O.S.L. 2023,
1-2-101, 2-3-101, 2-3-109, 2-6-501.4, 2-7-307, 2-10-
802, 2-11-401.6, as amended by Section 22, Chapter
282, O.S.L. 2022, 2-11-607, 3-2-106, as amended by
Section 1, Chapter 326, O.S.L. 2025, 3-2-107, and 3-
2-108 (27A O.S. Supp. 2025, Sections 1-1-202, 2-11-
401.6, and 3-2-106), which relate to environment and
natural resources; directing submission of certain
reports to utilize certain centralized filing system;
removing certain obsolete report; amending 29 O.S.
2021, Sections 3-103, as amended by Section 1,
Chapter 6, O.S.L. 2024, and 3-306 (29 O.S. Supp.
2025, Section 3-103), which relate to game and fish;
directing submission of certain reports to utilize
certain centralized filing system; amending 36 O.S.
2021, Sections 312.1 and 924.2, which relate to
insurance; directing submission of certain reports to
utilize certain centralized filing system; amending
40 O.S. 2021, Sections 6-204, as amended by Section
6, Chapter 346, O.S.L. 2023, and 5, Chapter 361,
O.S.L. 2023, as amended by Section 1, Chapter 408,
O.S.L. 2025 (40 O.S. Supp. 2025, Sections 6-204 and
904), which relate to labor; directing submission of
certain reports to utilize certain centralized filing
system; amending 43 O.S. 2021, Section 107.2, which
relates to actions where a minor child is involved;
directing submission of certain report to utilize
certain centralized filing system; amending 43A O.S.
2021, Sections 2-205, 4, Chapter 201, O.S.L. 2023, as
amended by Section 1, Chapter 230, O.S.L. 2025, 1,
Chapter 202, O.S.L. 2024, 10-112, and 12-105, as
amended by Section 1, Chapter 317, O.S.L. 2025 (43A
O.S. Supp. 2025, Sections 2-312.4, 3-335, and 12-
105), which relate to mental health; directing
submission of certain reports to utilize certain
centralized filing system; amending 47 O.S. 2021,
Sections 2-107, 2-146, as amended by Section 1,

ENR. S. B. NO. 1877 Page 4
Chapter 370, O.S.L. 2022, 2-303.1, 3, Chapter 282,
O.S.L. 2022, as amended by Section 3, Chapter 47, 1st
Extraordinary Session, O.S.L. 2023, 1, Chapter 265,
O.S.L. 2024, as amended by Section 1, Chapter 104,
O.S.L. 2025, 7-606.1, 7-606.2, 156.1, as last amended
by Section 55, Chapter 452, O.S.L. 2024, 1104.1, as
last amended by Section 8, Chapter 171, O.S.L. 2025,
and 1140.3 (47 O.S. Supp. 2025, Sections 2-146, 3-
103, 6-212.7, 156.1, and 1104.1), which relate to
motor vehicles; directing submission of certain
reports to utilize certain centralized filing system;
amending 52 O.S. 2021, Section 87.2, which relates to
application protests; directing submission of certain
report to utilize certain centralized filing system;
amending 53 O.S. 2021, Sections 1.9 and 166, which
relate to Oklahoma Historical Society and
associations; directing submission of certain reports
to utilize certain centralized filing system;
amending 56 O.S. 2021, Sections 71, 162, 198.11b,
198.16, 229, 230.50, 230.65, 239, 241.4, 1008,
1011.5, 1017.4, 3002, and 17, Chapter 395, O.S.L.
2022, as amended by Section 3, Chapter 386, O.S.L.
2025 (56 O.S. Supp. 2025, Section 4002.12b), which
relate to poor persons; directing submission of
certain reports to utilize certain centralized filing
system; removing certain obsolete task force;
removing certain obsolete reports; amending 57 O.S.
2021, Sections 95, 115, 521, 530.3, and 541, which
relate to prisons and reformatories; directing
submission of certain reports to utilize certain
centralized filing system; amending 59 O.S. 2021,
Sections 858-705.1, 1000.4, as last amended by
Section 1, Chapter 321, O.S.L. 2025, 1000.25, as
amended by Section 4, Chapter 225, O.S.L. 2025, 3024,
and 4000.1, as last amended by Section 9, Chapter
227, O.S.L. 2024 (59 O.S. Supp. 2025, Sections
1000.4, 1000.25, and 4000.1), which relate to
professions and occupations; directing submission of
certain reports to utilize certain centralized filing
system; removing certain obsolete report; amending 60
O.S. 2021, Sections 177.2, 178, and 1, Chapter 220,
O.S.L. 2024 (60 O.S. Supp. 2025, Section 1403), which

ENR. S. B. NO. 1877 Page 5
relate to property; directing submission of certain
reports to utilize certain centralized filing system;
amending 61 O.S. 2021, Sections 65, as amended by
Section 11, Chapter 238, O.S.L. 2022, 130, as amended
by Section 27, Chapter 238, O.S.L. 2022, and 328 (61
O.S. Supp. 2025, Sections 65 and 130), which relate
to public buildings and public works; directing
submission of certain reports to utilize certain
centralized filing system; amending 62 O.S. 2021,
Sections 34.2, as amended by Section 1, Chapter 86,
O.S.L. 2025, 34.6, as amended by Section 2, Chapter
14, 2nd Extraordinary Session, O.S.L. 2022, 34.11.1,
as amended by Section 1, Chapter 193, O.S.L. 2024,
34.32, as amended by Section 25, Chapter 228, O.S.L.
2022, 34.36, as amended by Section 2, Chapter 199,
O.S.L. 2025, 34.37, 34.42, as last amended by Section
3, Chapter 199, O.S.L. 2025, 34.52, 34.88, 34.94,
34.95, 34.200-1, 34.301, as last amended by Section
1, Chapter 319, O.S.L. 2025, 35.9, 36, 45.3, 45.11,
48.2, as amended by Section 1, Chapter 313, O.S.L.
2019, 49, 71.1, as amended by Section 4, Chapter 308,
O.S.L. 2025, 88.4, 89.2, as amended by Section 5,
Chapter 308, O.S.L. 2025, 89.7, 91.5, 166d, 1,
Chapter 14, 2nd Extraordinary Session, O.S.L. 2022,
690.19, 695.7, 847, 901, as amended by Section 1,
Chapter 439, O.S.L. 2025, 901.1, 2309, 7004, as
amended by Section 2, Chapter 125, O.S.L. 2023, 7005,
as amended by Section 3, Chapter 125, O.S.L. 2023,
and 9010.4 (62 O.S. Supp. 2025, Sections 34.2, 34.6,
34.11.1, 34.32, 34.36, 34.42, 34.301, 71.1, 89.2,
255.1, 901, 7004, and 7005), which relate to public
finance; directing submission of certain reports to
utilize certain centralized filing system; removing
certain obsolete report; updating statutory
reference; amending 63 O.S. 2021, Sections 1-110.1,
2, Chapter 439, O.S.L. 2024, 1-227.2, 1-227.3, 1-
229.8, 1-237, 1-238, 1-270.2, as amended by Section
1, Chapter 111, O.S.L. 2024, 1-534.1, 1-550.3, 1-552,
1-556, 1-740.11, 1-753, 1-756.8, 1-2530.9, 1-2712, 1-
2721, as last amended by Section 1, Chapter 184,
O.S.L. 2024, 1-2731, 2-805, 2-904, 2-1001, as last
amended by Section 1, Chapter 198, O.S.L. 2025, 10,

ENR. S. B. NO. 1877 Page 6
Chapter 322, O.S.L. 2023, 1, Chapter 321, O.S.L.
2024, 683.4, 2565, 3208, 3220, 3224, 3229, 3240.6,
3240.7, 3250.6, 3250.7, 3276, as amended by Section
2, Chapter 334, O.S.L. 2023, 1, Chapter 112, O.S.L.
2023, as amended by Section 1, Chapter 295, O.S.L.
2024, 3285, 3290, as amended by Section 3, Chapter
334, O.S.L. 2023, 5007, 5010, 5013, 1, Chapter 162,
O.S.L. 2022, 5061.2, and 7301, as amended by Section
1, Chapter 328, O.S.L. 2023 (63 O.S. Supp. 2025,
Sections 1-114.22, 1-270.2, 1-2721, 2-1001, 427.17a,
427.29, 3276, 3278.1, 3290, 5026.1, and 7301), which
relate to public health and safety; directing
submission of certain reports to utilize certain
centralized filing system; removing certain obsolete
reports; amending 64 O.S. 2021, Section 1013, as
amended by Section 40, Chapter 228, O.S.L. 2022 (64
O.S. Supp. 2025, Section 1013), which relates to
investment of permanent school funds and other
educational funds and property; directing submission
of certain reports to utilize certain centralized
filing system; amending 65 O.S. 2021, Section 3-114,
which relates to deposit of publications with
publishing clearinghouse; directing submission of
certain report to utilize certain centralized filing
system; amending 66 O.S. 2021, Sections 190 and 304,
as amended by Section 556, Chapter 486, O.S.L. 2025
(66 O.S. Supp. 2025, Section 304), which relate to
railroads; directing submission of certain reports to
utilize certain centralized filing system; amending
67 O.S. 2021, Section 315, which relates to the
delivery of records for disposition; directing
submission of certain report to utilize certain
centralized filing system; amending 68 O.S. 2021,
Sections 102.3, 120, 205, as last amended by Section
2, Chapter 204, O.S.L. 2025, 270, 291, 400.1, as
amended by Section 3, Chapter 285, O.S.L. 2023,
1357.21, as last amended by Section 1, Chapter 353,
O.S.L. 2025, 2357.1A-2, 2357.7A, 2357.22, as last
amended by Section 153, Chapter 452, O.S.L. 2024,
2357.32A, 2357.65, 2357.76, 2370.1, as amended by
Section 1, Chapter 223, O.S.L. 2024, 3507, 3610,
3633, as amended by Section 2, Chapter 341, O.S.L.

ENR. S. B. NO. 1877 Page 7
2025, 4, Chapter 66, O.S.L. 2022, as amended by
Section 1, Chapter 1, O.S.L. 2023, 3808, 3910, 3920,
4206, 4210, 4310, 4510, and 50016 (68 O.S. Supp.
2025, Sections 205, 400.1, 1357.21, 2357.22, 2370.1,
3633, and 3645.4), which relate to revenue and
taxation; directing submission of certain reports to
utilize certain centralized filing system; amending
69 O.S. 2021, Sections 322, 1705.6, 1728, and 1912,
which relate to roads, bridges, and ferries; removing
certain obsolete reports; directing submission of
certain report to utilize certain centralized filing
system; amending 70 O.S. 2021, Sections 3-104, as
last amended by Section 1, Chapter 445, O.S.L. 2025,
3-104.10, 3-117.3, 3-118, 3-127, 3-129.10, 5-141, 5-
146, 6-186, 6-211, 11-103.6, as last amended by
Section 1, Chapter 384, O.S.L. 2024, 11-103.6a, 1,
Chapter 280, O.S.L. 2022, as last amended by Section
45, Chapter 59, O.S.L. 2024, 1, Chapter 336, O.S.L.
2022, 17-106.1, 17-116.7, 18-162, 24-158, as amended
by Section 2, Chapter 281, O.S.L. 2022, 625.14, as
amended by Section 15, Chapter 407, O.S.L. 2022,
695.20, 697.2, as amended by Section 17, Chapter 407,
O.S.L. 2022, 697.25, 698.1, as last amended by
Section 1, Chapter 249, O.S.L. 2023, 1, Chapter 155,
O.S.L. 2023, 1210.228, 1210.258, 1210.307, 1210.405,
1210.407, 1210.508C, as last amended by Section 2,
Chapter 297, O.S.L. 2025, 2, Chapter 288, O.S.L.
2023, as amended by Section 9, Chapter 411, O.S.L.
2024, 1210.509, 1210.516, 1210.544, 1210.591, 2120,
as amended by Section 3, Chapter 18, O.S.L. 2022,
2607, 2632, as amended by Section 1, Chapter 129,
O.S.L. 2025, 3206, 3206.6a, as amended by Section 2,
Chapter 84, O.S.L. 2025, 3218.2, 3219.1, 3224, 3903,
3909, as amended by Section 575, Chapter 486, O.S.L.
2025, 3954, 3970.11, 3980.4, as amended by Section 4,
Chapter 186, O.S.L. 2023, and 4705 (70 O.S. Supp.
2025, Sections 3-104, 11-103.6, 11-202, 14-201, 24-
158, 625.14, 697.2, 698.1, 1210.210, 1210.508C,
1210.508H, 2120, 2632, 3206.6a, 3909, and 3980.4),
which relate to schools; directing submission of
certain reports to utilize certain centralized filing
system; removing certain obsolete report; amending 71

ENR. S. B. NO. 1877 Page 8
O.S. 2021, Section 1-601, as last amended by Section
1, Chapter 225, O.S.L. 2023 (71 O.S. Supp. 2025,
Section 1-601), which relates to the Oklahoma
Securities Commission; directing submission of
certain report to utilize certain centralized filing
system; amending 73 O.S. 2021, Sections 179, 2,
Chapter 1, 1st Extraordinary Session, O.S.L. 2023, as
amended by Section 1, Chapter 393, O.S.L. 2024, 3,
Chapter 441, O.S.L. 2024, as amended by Section 2,
Chapter 439, O.S.L. 2025, and 2, Chapter 441, O.S.L.
2024, as amended by Section 3, Chapter 439, O.S.L.
2025 (73 O.S. Supp. 2025, Sections 187B, 188A, and
188B), which relate to the state capital and State
Capitol Building; directing submission of certain
reports to utilize certain centralized filing system;
amending 74 O.S. 2021, Sections 18b, as last amended
by Section 2, Chapter 335, O.S.L. 2025, 20i, as last
amended by Section 1, Chapter 212, O.S.L. 2024,
51.1a, as last amended by Section 2, Chapter 257,
O.S.L. 2024, 51.2b, as last amended by Section 5,
Chapter 257, O.S.L. 2024, 61.8, as amended by Section
1, Chapter 194, O.S.L. 2025, 63.3, 63.5, 78, as
amended by Section 1, Chapter 351, O.S.L. 2023, 78d,
as amended by Section 2, Chapter 351, O.S.L. 2023,
85.5, as amended by Section 1, Chapter 102, O.S.L.
2024, 85.7, as last amended by Section 1, Chapter
339, O.S.L. 2023, 85.43, 85.44D.1, 85.45f, 85.45j.11,
150.5, 150.38, 212, as amended by Section 1, Chapter
93, O.S.L. 2022, 213.2, 214, 324.2, 325.1, 450,
452.8, 452.10, 452.13, 452.14, 464, 471, 484, 500.2,
as amended by Section 1, Chapter 63, O.S.L. 2022,
500.18, as last amended by Section 1, Chapter 325,
O.S.L. 2022, 3, Chapter 414, O.S.L. 2024, 589, 669,
2, Chapter 201, O.S.L. 2024, 840-1.6A, as amended by
Section 4, Chapter 243, O.S.L. 2022, 840-2.17, as
amended by Section 13, Chapter 243, O.S.L. 2022, 840-
2.27C, as last amended by Section 1, Chapter 341,
O.S.L. 2024, 909.1, 942, 1207, 1332.1, as amended by
Section 8, Chapter 245, O.S.L. 2024, 2109, 2205,
2220, 2236, 2276.2, 2901.4, 2, Chapter 22, 1st
Extraordinary Session, O.S.L. 2023, 4, Chapter 22,
1st Extraordinary Session, O.S.L. 2023, 3117, 3122,

ENR. S. B. NO. 1877 Page 9
3601.2, 3602, 3917, 5003.7, as last amended by
Section 3, Chapter 133, O.S.L. 2025, 5003.9, 5003.10,
as amended by Section 6, Chapter 377, O.S.L. 2024,
5003.10a, as amended by Section 7, Chapter 377,
O.S.L. 2024, 5010.3, 5040.4, as amended by Section 7,
Chapter 375, O.S.L. 2024, 5060.22, 5062.19, 5066.7,
5079, 5156, 5402, 6112, 8303, 9053, 9076, 5, Chapter
229, O.S.L. 2022, as amended by Section 1, Chapter
336, O.S.L. 2023, 6, Chapter 229, O.S.L. 2022, 3,
Chapter 231, O.S.L. 2022, and 4, Chapter 231, O.S.L.
2022 (74 O.S. Supp. 2025, Sections 18b, 20i, 51.1a,
51.2b, 61.8, 78, 78d, 85.5, 85.7, 212, 500.2, 500.18,
583.1, 692, 840-1.6A, 840-2.17, 840-2.27C, 1332.1,
2903.1, 2903.3, 5003.7, 5003.10, 5003.10a, 5040.4,
9204, 9205, 12003, and 12004), which relate to state
government; directing submission of certain reports
to utilize certain centralized filing system;
removing certain obsolete reports; removing certain
requirement to follow certain procedure; amending 75
O.S. 2021, Sections 250.6, 252, 253, as last amended
by Section 6, Chapter 258, O.S.L. 2025, 303.1, as
amended by Section 3, Chapter 38, O.S.L. 2023, and
308, as last amended by Section 2, Chapter 420,
O.S.L. 2025 (75 O.S. Supp. 2025, Sections 253, 303.1,
and 308), which relate to statutes and reports;
directing submission of certain reports to utilize
certain centralized filing system; updating statutory
language; directing the Office of the Secretary of
State to create and maintain certain centralized
filing system; requiring the Secretary of State to
provide certain notification in certain circumstance;
requiring the Secretary of State to submit certain
report; amending 76 O.S. 2021, Section 17, which
relates to medical malpractice; directing submission
of certain report to utilize certain centralized
filing system; amending 82 O.S. 2021, Sections 863.3,
1085.14, 1085.62, 1085.82, 1, Chapter 268, O.S.L.
2023, and 1623 (82 O.S. Supp. 2025, Section 1086.7),
which relate to water and water rights; directing
submission of certain reports to utilize certain
centralized filing system; amending 85 O.S. 2021,
Section 380, as amended by Section 1, Chapter 256,

ENR. S. B. NO. 1877 Page 10
O.S.L. 2024, and as renumbered by Section 3, Chapter
256, O.S.L. 2024 (74 O.S. Supp. 2025, Section 85.70),
which relates to volunteer fire departments;
directing submission of certain reports to utilize
certain centralized filing system; amending 85A O.S.
2021, Sections 17, as amended by Section 10, Chapter
199, O.S.L. 2025, 50, 60, 101, 121, and 400, as
amended by Section 3, Chapter 279, O.S.L. 2024 (85A
O.S. Supp. 2025, Sections 17 and 400), which relate
to workers’ compensation; directing submission of
certain reports to utilize certain centralized filing
system; updating statutory language; making language
gender neutral; repealing Section 6, Chapter 222,
O.S.L. 2024 (2 O.S. Supp. 2025, Section 5-606), which
relates to reports; repealing 2 O.S. 2021, Sections
18-34 and 18-192, which relate to reports; repealing
10 O.S. 2021, Section 630.2, which relates to
coordinated database system; repealing Section 1,
Chapter 288, O.S.L. 2024 (17 O.S. Supp. 2025, Section
294), which relates to Southwest Power Pool report;
repealing 19 O.S. 2021, Section 547.2, which relates
to the Sheriffs’ Personnel Task Force; repealing 20
O.S. 2021, Sections 127 and 1103H, which relate to
reports; repealing Section 1, Chapter 333, O.S.L.
2023, as amended by Section 4, Chapter 329, O.S.L.
2025 (21 O.S. Supp. 2025, Section 2200), which
relates to the Oklahoma Organized Retail Crime Task
Force; repealing 36 O.S. 2021, Sections 6057.5,
6060.9c, 6060.13, and Section 5, Chapter 151, O.S.L.
2022 (36 O.S. Supp. 2025, Section 6060.44), which
relate to reports; repealing 40 O.S. 2021, Section
800.1, as amended by Section 1, Chapter 401, O.S.L.
2022 (40 O.S. Supp. 2025, Section 800.1), which
relates to the Occupational Licensing Advisory
Commission; repealing Section 1, Chapter 232, O.S.L.
2023 (47 O.S. Supp. 2025, Section 173.1), which
relates to the State Task Force on Motor Carrier
Regulation and Enforcement; repealing 56 O.S. 2021,
Sections 162.1b, 245, 245.1, and 3121, which relate
to reports; repealing 57 O.S. 2021, Section 521.1,
which relates to the Reentry Policy Council;
repealing 62 O.S. 2021, Section 46.5, which relates

ENR. S. B. NO. 1877 Page 11
to the State Revenue Apportionment Evaluation
Commission; repealing 63 O.S. 2021, Sections 2-112,
2175.1, 5009.6, and 5030.4A, which relate to reports;
repealing 70 O.S. 2021, Sections 3-116.5, 3-123.1,
628.19, and 7001, which relate to reports; repealing
74 O.S. 2021, Sections 20l, 30c, 30.2, 2900.3, and
9100, which relate to reports; repealing 82 O.S.
2021, Section 1088.14, which relates to the Water for
2060 Advisory Council; providing for codification;
and providing an effective date.

SUBJECT: Centralized report system

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION 1. AMENDATORY 2 O.S. 2021, Section 5-10, is
amended to read as follows:

Section 5-10. A. To implement the Made in Oklahoma Program and
the Grown in Oklahoma Program, the State Department of Agriculture
shall:

1. Design a “Made in Oklahoma” logo and a “Grown in Oklahoma”
logo for use by Oklahoma processors, providers, or growers;

2. Establish standards and requirements for logos;

3. Establish fees for logos; provided any Oklahoma processor,
provider, or grower may acquire use of the logos on their foods,
products, or services free of charge for the first year after
authorization for use;

4. Establish a task force to assist in ascertaining strengths
and weaknesses of the program;

5. Cooperate with other state agencies and other organizations
as needed in development of the program;

6. Foster conferences, institutes, and exhibits on Oklahoma-
made products and services or Oklahoma-grown foods;

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7. Publish reports, surveys, news bulletins, or other materials
pertaining to its findings, recommendations, and work; and

8. Report Electronically report, utilizing the centralized
filing system provided for in Section 378 of this act, to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate areas needing legislative or
procedural changes to help promote the purchase and use of Oklahoma-
made products and services and Oklahoma-grown foods or to attract
manufacturers to supply processors with needed materials.

B. The Department may apply for, accept, and use any gift,
grant, or bequest from any source for the purpose of discharging its
duties.

SECTION 2. AMENDATORY 2 O.S. 2021, Section 5-85, as
amended by Section 2, Chapter 174, O.S.L. 2025 (2 O.S. Supp. 2025,
Section 5-85), is amended to read as follows:

Section 5-85. A. The State Treasurer is authorized to issue
guidelines and administer the Oklahoma Agricultural Linked Deposit
Program.

B. The State Treasurer shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit an annual report outlining the status of the Oklahoma
Agricultural Linked Deposit Program to the Governor, the Lieutenant
Governor, the President Pro Tempore of the Senate, and the Speaker
of the House of Representatives.

SECTION 3. AMENDATORY 2 O.S. 2021, Section 5-507, is
amended to read as follows:

Section 5-507. If state funds are utilized, unless otherwise
required by federal law, the Oklahoma Cooperative Extension Service
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically provide the Speaker of the
Oklahoma House of Representatives and the President Pro Tempore of
the Oklahoma Senate a copy of any report or other document that it
provides to the United States Department of Agriculture concerning
the Oklahoma AgrAbility Project.

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SECTION 4. AMENDATORY Section 3, Chapter 391, O.S.L.
2022 (2 O.S. Supp. 2025, Section 11-13), is amended to read as
follows:

Section 11-13. A. The Oklahoma Department of Agriculture,
Food, and Forestry shall develop a grant program for the purpose of
providing grants to incorporated municipalities to mitigate extreme
purchase costs, extraordinary costs, or both, incurred by the
incorporated municipality’s owned or controlled unregulated utility
affected by the extreme weather event that began February 7, 2021.
To qualify for a grant, the following requirements shall be met:

1. The incorporated municipality must shall show proof of
extreme purchase costs, extraordinary costs, or both incurred by the
incorporated municipality’s owned or controlled unregulated utility;

2. The population of the incorporated municipality shall be no
greater than three thousand five hundred (3,500) persons according
to the most recent Federal Decennial Census or most recent annual
estimate of the population by the United States Census Bureau; and

3. The incorporated municipality’s owned or controlled
unregulated utility has had no costs mitigated through
securitization as provided by Sections 9070 through 9081 of Title 74
of the Oklahoma Statutes.

B. The Department shall promulgate rules necessary for
determining the eligibility and priority of applicants for the
grants. In determining the priority of applicants, the Department
shall consider the implications of the extraordinary costs and
extreme purchase costs regarding the incorporated municipality’s
solvency and the amount of the incorporated municipality’s
extraordinary costs and extreme purchase costs on a per capita
basis.

C. On or before February 1, 2023, the Oklahoma Department of
Agriculture, Food, and Forestry shall provide a report to the
Governor, President Pro Tempore of the Senate, and the Speaker of
the House of Representatives that includes the list of
municipalities who applied for the grant, the amount requested by
each municipality, municipalities that were awarded grants, the

ENR. S. B. NO. 1877 Page 14
amount of each grant awarded, and any other information the
Department determines to be necessary.

SECTION 5. AMENDATORY Section 6, Chapter 297, O.S.L.
2023 (2 O.S. Supp. 2025, Section 4006), is amended to read as
follows:

Section 4006. A. On and after July 1, 2023, the Authority
shall have the power and duty to:

1. Adopt bylaws and promulgate rules for the regulation of its
affairs and the conduct of its business;

2. Adopt an official seal;

3. Maintain an office at a location to be determined by the
Authority;

4. Sue and be sued, subject to the provisions of the
Governmental Tort Claims Act;

5. Enter into cooperative agreements with the Board of Regents
for the Oklahoma Agricultural and Mechanical Colleges and/or or
other Oklahoma State University agencies, authorities, trusts or
entities for educational programs, professional staffing, research
and other veterinary activities;

6. Make and enter into all contracts necessary or incidental to
the performance of its duties and the execution of its powers
pursuant to the Oklahoma State University Veterinary Medicine
Authority Act;

7. Purchase or lease equipment, furniture, materials, and
supplies, and incur such other expenses as may be necessary to
maintain and operate animal hospitals or clinics, or to discharge
its duties and responsibilities or to make any of its powers
effective;

8. Acquire by purchase, lease, gift, or by any other manner,
and to maintain, use and operate or to contract for the maintenance,
use and operation of or lease of any and all property of any kind,
real, personal, or mixed or any interest therein unless otherwise

ENR. S. B. NO. 1877 Page 15
provided by the Oklahoma State University Veterinary Medicine
Authority Act;

9. Appoint such officers, agents, and employees, including but
not limited to attorneys, as it deems necessary and to prescribe
their duties and to fix their compensation;

10. Accept grants from the United States of America, or from
any corporation or agency created or designed by the United States
of America, and, in connection with any grant, to enter into such
agreements as the United States of America or such corporation or
agency may require;

11. Make and issue bonds and to pledge revenues of the
Authority subject to the Oklahoma Bond Oversight and Reform Act.
Nothing in the Oklahoma State University Veterinary Medicine
Authority Act shall authorize the issuance of any bonds of the
Authority payable other than from revenues of the Authority.
Authority revenue bonds issued under the provisions of this act
shall not at any time be deemed to constitute a debt of the state or
of any political subdivision thereof, or a pledge of the faith and
credit of the state or of any political subdivision, but such bonds
shall be payable solely from the funds herein provided. Such
revenue bonds shall contain on the face thereof a statement to the
effect that neither the state nor the Authority shall be obligated
to pay the same or the interest thereon except from the revenues of
the project or projects for which they are issued and that neither
the faith and credit nor the taxing power of the state or any
political subdivision thereof is pledged, or may hereafter be
pledged, to the payment of the principal of or the interest on such
bonds. The maximum amount of outstanding bonds at any time shall
not exceed Fifty Million Dollars ($50,000,000.00) unless a greater
amount is expressly approved by the Legislature by a concurrent
resolution adopted prior to commencing any action in anticipation of
issuance of revenue bonds of the Oklahoma State University
Veterinary Medicine Authority for the greater amount;

12. Provide for complete financial audits on all accounts of
the Oklahoma State University Veterinary Medicine Authority and to
authorize periodic audits by an independent external auditing
agency. Such audits shall be performed annually in a format
approved by the State Auditor and Inspector, and all such audits

ENR. S. B. NO. 1877 Page 16
shall be submitted to the State Auditor and Inspector for review.
Such audits shall be made in accordance with generally accepted
auditing standards and government auditing standards. Financial
statements shall be prepared in accordance with generally accepted
accounting principles;

13. Engage in long-term planning for the operation and
management of the Authority;

14. Establish petty cash funds and provide for appropriate
accounting procedures and controls;

15. Contract with national manufacturers and distributors of
drugs and medical supplies when appropriate to carry out the
purposes of this act;

16. Do all other things necessary and proper to implement the
provisions of the Oklahoma State University Veterinary Medicine
Authority Act;

17. Provide funding to other entities related to public health,
animal health, teaching, research, and the purposes of the Oklahoma
State Veterinary Medicine Authority Act when provided funding for
such purposes by the Legislature;

18. Waive, by such means as the Authority deems appropriate,
the exemption from federal income taxation of interest on the
Authority’s bonds provided by the Internal Revenue Code of 1986, as
amended, or any other federal statute providing a similar
exemption;19. Arrange for guaranties or insurance of its bonds by
the federal government or by any private insurer, and to pay any
premiums therefor; and

20. 19. Make a declaration of necessity as provided in Section
3 of this act. The Authority may, in its exclusive judgment, make a
declaration of necessity when such a declaration is deemed necessary
to effectuate the purposes of the Oklahoma State University
Veterinary Medicine Authority Act.

B. The Oklahoma State University Veterinary Medicine Authority
shall be subject to the Oklahoma State Finance Act.

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C. The Authority shall prepare monthly a “budget vs. actual”
report which shows by budget activity the monthly and year-to-date
revenues and expenditures compared to budgeted revenues and
expenditures. Such report shall be electronically submitted to the
Office of Management and Enterprise Services and to the Directors of
the House of Representatives Fiscal Division and the Senate Fiscal
Division utilizing the centralized filing system provided for in
Section 378 of this act.

D. The Authority shall be subject to the professional risk
management program provided for in Section 85.58A of Title 74 of the
Oklahoma Statutes.

SECTION 6. AMENDATORY Section 14, Chapter 297, O.S.L.
2023 (2 O.S. Supp. 2025, Section 4014), is amended to read as
follows:

Section 4014. The Oklahoma State University Veterinary Medicine
Authority shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit an annual
report to the Governor, the Speaker of the Oklahoma House of
Representatives, and the President Pro Tempore of the Oklahoma State
Senate. Such report shall be submitted in accordance with the
requirements for financial statement audits in Section 212A of Title
74 of the Oklahoma Statutes and shall include an account of the
operations and actions of the Authority and an accounting of all
revenue received and disbursed by the Authority for the previous
fiscal year. The report shall include an accounting of expenses
related to each of the following:

1. Education and training of students of the Oklahoma State
University College of Veterinary Medicine, resident veterinarians
and others;

2. Care and treatment of animal patients for whom the Authority
receives any form of state or federal reimbursement; and

3. Research.

SECTION 7. AMENDATORY Section 19, Chapter 297, O.S.L.
2023 (2 O.S. Supp. 2025, Section 4019), is amended to read as
follows:

ENR. S. B. NO. 1877 Page 18

Section 4019. A. The State of Oklahoma expressly approves the
creation of a public trust to be named the “Oklahoma State
University Veterinary Medical Trust”, of which the State of Oklahoma
shall be the beneficiary, provided such approval shall be contingent
upon satisfaction of the following conditions:

1. Finalizing of the declaration of trust;

2. Adoption of the declaration of trust by an official action
of the trustees of the Trust;

3. Submission of the Trust for acceptance of the beneficial
interest and approval as required by Section 177 of Title 60 of the
Oklahoma Statutes; and

4. The approved declaration of trust shall:

a. clearly state that the principal purpose of the
Oklahoma State University Veterinary Medical Trust is
to effectuate the purposes of the Oklahoma State
University Veterinary Medicine Authority as
established in the Oklahoma State University
Veterinary Medicine Authority Act,

b. except as otherwise provided by law, provide that the
title to real property held by the Oklahoma State
University Veterinary Medicine Authority shall not be
transferred, conveyed, or assigned to the Oklahoma
State University Veterinary Medical Trust without the
express consent of the Legislature as the governing
entity of the beneficiary pursuant to Section 176 of
Title 60 of the Oklahoma Statutes,

c. provide that any indebtedness incurred by the Oklahoma
State University Veterinary Medical Trust or the
trustees of the Trust shall not be secured with or
create a lien upon real property to which title is
held by the Oklahoma State University Veterinary
Medicine Authority and shall not involve the bonding
capacity of the Oklahoma State University Veterinary
Medicine Authority,

ENR. S. B. NO. 1877 Page 19

d. provide that the trust estate of the Oklahoma State
University Veterinary Medical Trust shall not include
fee simple title to real property owned by the
Oklahoma State University Veterinary Medicine
Authority,

e. clearly state that the creation of the Oklahoma State
University Veterinary Medical Trust shall not in any
way reduce, limit, or interfere with the power granted
to the Oklahoma State University Veterinary Medicine
Authority in the Oklahoma State University Veterinary
Medicine Authority Act,

f. provide that any lease or contractual agreement
involving use of the real property to which title is
held by the Oklahoma State University Veterinary
Medicine Authority and any improvements thereto shall
contain a provision and covenants requiring the proper
maintenance and upkeep of the real property and
improvements,

g. provide that the trustees of the Oklahoma State
University Veterinary Medical Trust shall be the
acting members of the Oklahoma State University
Veterinary Medicine Authority as provided in the
Oklahoma State University Veterinary Medicine
Authority Act, and

h. provide that the trustees of the Oklahoma State
University Veterinary Medical Trust shall have the
duty to, utilizing the centralized filing system
provided for in Section 378 of this act,
electronically submit an annual report to the
Governor, the Speaker of the House of Representatives,
and the President Pro Tempore of the Senate. The
report shall be submitted by January 1 of each year
and shall include an account of all operations,
actions of the Trust, and an account of all revenue
received and disbursed by the Trust for the previous
fiscal year. The report shall also provide a complete
accounting of how the Trust meets its primary function

ENR. S. B. NO. 1877 Page 20
of effectuating the purposes of the Oklahoma State
University Veterinary Medicine Authority, as
established in the Oklahoma State University
Veterinary Medicine Authority Act.

B. The Oklahoma State University Veterinary Medical Trust shall
require any agreements which it enters into with any entity pursuant
to Section 22 of this act for the operations of facilities leased by
the Oklahoma State University Veterinary Medicine Authority to the
Trust to include, but not be limited to:

1. The inclusion of all the members of the Trust, representing
the State of Oklahoma in a governing committee;

2. Binding arbitration shall not be required by such agreements
for resolving issues under consideration by the governing committee;
and

3. Major decisions shall be resolved by the governing
committee, and approval of any major decision by the governing
committee must shall include the approval of a majority of the state
appointees and the approval of a majority of the private entity
appointees to the governing committee. Major decisions shall
include:

a. approval of the operating and capital budgets,

b. sale or disposition of assets over Two Hundred Fifty
Thousand Dollars ($250,000.00),

c. the termination, transfer, material addition, or
material diminution of animal medical services at the
Oklahoma State University Veterinary Hospital related
to and part of a teaching program of the Oklahoma
State University College of Veterinary Medicine, and

d. other major decisions as may be agreed upon by the
Trust and the private entity.

C. To the extent it is determined by legislative enactment that
the Trust has expended funds in contravention of its mission as set
forth in this section, the Trust shall remit, upon a thirty (30) day

ENR. S. B. NO. 1877 Page 21
written notice from the Oklahoma State University Veterinary
Medicine Authority, such sum or sums to the Oklahoma State
University Veterinary Medicine Authority.

SECTION 8. AMENDATORY Section 1, Chapter 126, O.S.L.
2024 (3 O.S. Supp. 2025, Section 415), is amended to read as
follows:

Section 415. There is hereby created in the State Treasury a
revolving fund for the Oklahoma Department of Aerospace and
Aeronautics to be designated the “Long-Term Aerospace and
Aeronautics Infrastructure Sustainability Revolving Fund”. The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all monies received by the Department from
appropriations designated for the purpose of construction,
maintenance, or other capital projects. The Director of the
Oklahoma Department of Aerospace and Aeronautics shall, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically provide at the end of each month, provide a
current balance and statement of encumbrances of the fund to the
Chair of the Senate Appropriations Committee and the Chair of the
House of Representatives Appropriations and Budget Committee. All
monies accruing to the credit of the fund are hereby appropriated
and may be budgeted and expended by the Oklahoma Department of
Aerospace and Aeronautics for the sole purpose provided for in this
section. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.

SECTION 9. AMENDATORY 3A O.S. 2021, Section 204, is
amended to read as follows:

Section 204. A. The Oklahoma Horse Racing Commission shall:

1. Have supervision of:

a. all race meetings held in this state; provided, for
non-pari-mutuel race meetings and training races held
at non-pari-mutuel tracks jurisdiction of the
Commission shall be limited to a period of time
beginning twelve (12) hours before the commencement of

ENR. S. B. NO. 1877 Page 22
the first race on a race day and ending four (4) hours
after the finish of the last race on a race day,

b. all occupation and organization licensees in this
state, and

c. all persons on the property of an organization
licensee; provided, for non-pari-mutuel race meetings
and training races held at non-pari-mutuel tracks
supervision of such persons shall be limited to the
period set out in subparagraph a of this paragraph;

2. Have the authority to promulgate rules for the purpose of
administering the provisions of the Oklahoma Horse Racing Act;

3. Administer and enforce the provisions of the Oklahoma Horse
Racing Act and the rules of the Commission;

4. Adjudicate controversies arising from the enforcement of the
provisions of the Oklahoma Horse Racing Act and the rules of the
Commission;

5. Allocate racing days of not to exceed six (6) days per
calendar week, dates, and hours which are in the best interests of
the people of this state to organization licensees;

6. Promulgate rules for the granting or refusing and the
suspension or revoking of licenses;

7. Promulgate rules for the holding, conducting, and operating
of all race meetings held in this state; provided, the rules of the
American Quarter Horse Association for regulation of the holding,
conducting and operating of non-pari-mutuel race meetings and
training races held at non-pari-mutuel tracks shall serve as the
rules for the holding, conducting and operating of non-pari-mutuel
race meetings and training races held at non-pari-mutuel tracks,
except that appeals from decisions of the stewards shall be to the
Commission, until such time as the Commission has promulgated
substantially similar rules for regulation of the holding,
conducting and operating of non-pari-mutuel race meetings and
training races held at non-pari-mutuel tracks;

ENR. S. B. NO. 1877 Page 23
8. Have supervision and control of the pari-mutuel machines and
all other equipment at all race meetings held in this state;

9. Check the making of pari-mutuel pools and the distribution
of such pools and shall:

a. contract with the Office of the State Auditor and
Inspector to conduct an annual audit and inspection of
live race meets in this state, and

b. reimburse the Office of the State Auditor and
Inspector for the cost of these services;

10. Promulgate rules governing:

a. bids on leases,

b. the rate charged by an organization licensee for
admission to races, and

c. the rate charged for the performance of any service or
for the sale of any article on the premises of an
organization licensee;

11. Approve all contracts and agreements for the payment of
money and all salaries, fees, and compensations by any organization
licensee;

12. Have the authority to exclude, or compel the exclusion,
from any race meeting:

a. any person who violates the provisions of any rule or
order of the Commission or any law of this state, any
other state, or the United States,

b. any person who has been previously convicted of
violating any law of this state, any other state, the
United States, or

c. any other person, licensed or unlicensed, whose
conduct or reputation is such that his or her presence
at the race meeting may, in the opinion of the

ENR. S. B. NO. 1877 Page 24
Commission reflect on the honesty and integrity of
horse racing or interfere with the orderly conduct of
the race meeting. No person shall be excluded or
ejected from a race meeting solely on the grounds of
race, color, creed, sex, national origin, or ancestry;

13. Have investigatory powers and authority to place attendants
and such other persons as may be deemed necessary by the Commission
in the offices, on the tracks, or in places of business of any
organization licensee for the purpose of determining whether an
organization or occupation licensee is complying with the provisions
of the Oklahoma Horse Racing Act and the rules of the Commission;

14. Have authority to acquire or contract with, or establish,
maintain, and operate testing laboratories and related facilities
for the purpose of conducting:

a. human substance abuse testing on occupation licensees
who may affect the outcome of race results. Human
substance abuse tests and the laboratories performing
such tests must shall meet the nationally recognized
standards specified in the Mandatory Guidelines for
Federal Workplace Drug Testing Programs adopted by the
United States Department of Health and Human Services.
The Commission may require any occupation licensee to
submit to a human substance abuse test if the
Commission has probable cause to believe that such
licensee is possessing or using any controlled
dangerous substance or any other drug in violation of
any federal or state law. Provided, on and after July
1, 1994, such testing shall be in compliance with the
provisions of the Standards for Workplace Drug and
Alcohol Testing Act, and

b. a saliva test, a blood test, a urine test, or other
tests or combinations of tests on the horses run or to
be run in any race meeting. Prior to the Commission
entering into any contract pursuant to this paragraph,
the Attorney General shall review and approve the
contract. Any contract entered into pursuant to this
paragraph shall contain the specifications that were
in the request for bid for the contract;

ENR. S. B. NO. 1877 Page 25

15. Approve of all proposed construction on property owned or
leased by an organization licensee;

16. Have authority to require that all financial, employment,
or other records of an organization licensee shall be kept in such
manner as prescribed by the Commission and shall be subject to
inspection by the Commission. The organization licensee shall
submit to the Commission an annual balance sheet, profit-and-loss
statement, and any other information the Commission deems necessary
in order to administer the provisions of the Oklahoma Horse Racing
Act;

17. Have the authority to suspend or revoke a license or impose
fines in amounts not to exceed Ten Thousand Dollars ($10,000.00)
against individuals for each violation and in amounts not to exceed
Twenty Thousand Dollars ($20,000.00) against organization licensees
for each violation of any provision of the Oklahoma Horse Racing
Act, any rules adopted by the Commission, or any order of the
Commission, or for any other action which, in the discretion of the
Commission, is a detriment or impediment to horse racing or both
such suspension or revocation and fine. Each day upon which such
violation or other action by the organization licensee occurs shall
constitute a separate offense;

18. Have authority to suspend a horse from participating in
races if the horse has been involved in any violation of the rules
promulgated by the Commission or the provisions of the Oklahoma
Horse Racing Act; and

19. Prepare and, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit an
annual report to the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate. The
report shall include an account of the operations, actions, and
orders of the Commission, and an accounting of all revenue received
by the Commission.

B. 1. The Commission may delegate to stewards or the Executive
Director, those of its powers and duties as it deems necessary to
fully implement and effectuate the purposes of the Oklahoma Horse
Racing Act.

ENR. S. B. NO. 1877 Page 26

2. The Commission, upon appeal or due consideration, may
overrule any decision of a steward except decisions regarding
disqualifications for interference during the running of a race if a
preponderance of evidence indicates:

a. the stewards mistakenly interpreted the law,

b. new evidence of a convincing nature is produced, or

c. the best interests of racing and the state may be
better served.

3. Any decision pertaining to the finish of a race, as used for
purposes of pari-mutuel pool distribution to winning ticket holders,
may not be overruled. Any decision pertaining to the distribution
of purses may be changed only if a claim is made in writing to the
Commission by one of the involved owners or trainers, and a
preponderance of evidence clearly indicates to the Commission that
one or more of the grounds for protest, as provided for in the rules
prepared by the Commission, has been substantiated.

SECTION 10. AMENDATORY 3A O.S. 2021, Section 619, is
amended to read as follows:

Section 619. Beginning February 1, 2000, the Oklahoma State
Athletic Commission shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically file an
annual report of combative sports activities in Oklahoma with the
Governor, the President Pro Tempore of the Senate, and the Speaker
of the House of Representatives. Said Such report shall include,
but not be limited to, the amount of revenue collected, the number
of permits and licenses issued and revoked, the number of violations
of the Oklahoma State Athletic Commission Act, and the number of
professional combative sports events, amateur mixed martial arts
events and amateur kickboxing events conducted.

SECTION 11. AMENDATORY 3A O.S. 2021, Section 733, as
amended by Section 4, Chapter 332, O.S.L. 2023 (3A O.S. Supp. 2025,
Section 733), is amended to read as follows:

ENR. S. B. NO. 1877 Page 27
Section 733. To ensure the financial integrity of the lottery,
the Oklahoma Lottery Commission through its board of trustees shall:

1. Submit Electronically submit annual reports, utilizing the
centralized filing system provided for in Section 378 of this act,
to the Governor, State Auditor and Inspector, Oklahoma State Bureau
of Investigation, Attorney General, and the oversight committee
created by Section 734 of this title, disclosing the total lottery
revenues, prize disbursements, operating expenses, and
administrative expenses of the Commission. The annual report shall
additionally describe the organizational structure of the Commission
and summarize the functions performed by each organizational
division within the Commission;

2. Adopt a system of internal audits;

3. Maintain weekly or more frequent records of lottery
transactions, including the distribution of tickets or shares to
retailers, revenues received, claims for prizes, prizes paid, prizes
forfeited, and other financial transactions of the Commission;

4. Contract with a certified public accountant or firm for an
annual financial audit of the Commission. The certified public
accountant or firm shall have no financial interest in any vendor
with whom the Commission is under contract. The certified public
accountant or firm shall present an audit report not later than
seven (7) months after the end of the fiscal year. The certified
public accountant or firm shall evaluate the internal auditing
controls in effect during the audit period. The cost of this annual
financial audit shall be an operating expense of the Commission.
The State Auditor and Inspector may at any time conduct an audit of
any phase of the operations of the Commission at the expense of the
Commission and shall receive a copy of the annual independent
financial audit. A copy of any audit performed by the certified
public accountant or firm or the State Auditor and Inspector shall
be electronically transmitted to the Governor, the President Pro
Tempore of the Senate, the Speaker of the House of Representatives,
the State Auditor and Inspector, and the cochairs of the oversight
committee created in Section 734 of this title utilizing the
centralized filing system provided for in Section 378 of this act;

ENR. S. B. NO. 1877 Page 28
5. Submit Electronically submit, utilizing the centralized
filing system provided for in Section 378 of this act, to the Office
of Management and Enterprise Services and the State Auditor and
Inspector by June 30 of each year a copy of the annual operating
budget for the Commission for the next fiscal year. This annual
operating budget shall be approved by the board and be on such forms
as prescribed by the Office of Management and Enterprise Services;
and

6. Submit Electronically submit, utilizing the centralized
filing system provided for in Section 378 of this act, to the Office
of Management and Enterprise Services by October 1 of each year a
proposed estimate of the net proceeds to be deposited into the
Oklahoma Education Lottery Trust Fund during the succeeding fiscal
year. The estimate shall be on such forms as prescribed by the
Office of Management and Enterprise Services.

SECTION 12. AMENDATORY 3A O.S. 2021, Section 734, is
amended to read as follows:

Section 734. A. There is hereby created as a joint committee
of the Legislature the Oklahoma Lottery Commission Legislative
Oversight Committee, to be composed of the members of the House
Revenue and Taxation Committee and the Senate Finance Committee.
The chairs of the committees shall serve as cochairs of the
oversight committee. The oversight committee shall periodically
inquire into and review the operations of the Oklahoma Lottery
Commission, as well as periodically review and evaluate the success
with which the Commission is accomplishing its statutory duties and
functions as provided in the Oklahoma Education Lottery Act. The
oversight committee may conduct any independent audit or
investigation of the Commission it deems necessary.

B. The Commission shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
provide the oversight committee not later than December 1 of each
year with a complete report of the level of participation of
minority businesses in all retail and major procurement contracts
awarded by the Commission.

SECTION 13. AMENDATORY 6 O.S. 2021, Section 212, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 29

Section 212. A. Commissioner’s Report - Contents. The
Commissioner shall report to the Governor annually. The report
shall be a public document and shall include such matters as the
Commissioner deems advisable.

B. Copies furnished to Legislature and Oklahoma Publishing
Clearing House. Copies of the annual reports not previously so
submitted shall be electronically submitted to the Legislature at
the opening of each regular session and to the Oklahoma Publishing
Clearing House utilizing the centralized filing system provided for
in Section 378 of this act. A copy of the annual report shall also
be published on the Oklahoma State Banking Department’s website.

SECTION 14. AMENDATORY 10 O.S. 2021, Section 22.1, is
amended to read as follows:

Section 22.1. A. The Oklahoma Legislature recognizes that:

1. Children who have been abused, who are dependent or
neglected, or whose parents, for whatever reason, may be unable or
unwilling to provide care for their children, are best served when
they can be cared for by grandparents or other suitable relatives
instead of placing those children in foster care with the State of
Oklahoma; and

2. While grandparents or other relatives are often willing to
provide for the care of children who can no longer remain with their
parents, there may exist financial obstacles to the provision of
such care, or there may be a need for other services to enable the
children to remain with their grandparents or other relatives in
order to prevent the entry of those children into the foster care
system.

B. It is the intent of the Oklahoma Legislature in enacting
this section to:

1. Recognize family relationships in which a grandparent or
other relative within the third degree of relationship to the child
is the head of a household that includes a child otherwise at risk
of foster care placement by the Department of Human Services;

ENR. S. B. NO. 1877 Page 30
2. Enhance family preservation and stability by recognizing
that most children in placements with grandparents and other
relatives within the third degree of relationship to the child do
not need intensive supervision of the placement by the courts or by
the Department;

3. Provide additional placement options and incentives that
will achieve permanency and stability for many children who are
otherwise at risk of foster care placement by the Department because
of abuse, abandonment, or neglect, but who may successfully be able
to reside in the care of relatives within the third degree of
relationship to the child; and

4. Reserve the limited casework and supervisory resources of
the Department and the courts expended to care for children in state
custody for those cases in which children do not have the option for
safe, stable care within their immediate family.

C. The Department of Human Services shall establish and operate
a relative support program pursuant to eligibility guidelines
established in this section and by rules of the Department
promulgated thereto which will divert children from the foster care
program operated by the Department. The relative support program
shall provide assistance to relatives within the third degree of
relationship to a child who are caring for the child on a full-time
basis, regardless of whether there is a court order granting custody
of the child to the relative.

D. Grandparents or other such relatives who qualify for and
participate in the relative support program are not required to be
certified as foster parents or to meet the foster care requirements
but shall be capable of providing a physically safe environment and
a stable, supportive home for the children under their care.

E. Upon request by grandparents or other relatives who are
caring for a child on a full-time basis, the Department shall
complete a needs assessment on such grandparents or other relatives
to determine the appropriate services and support needed by the
child and the grandparents or other such relatives.

ENR. S. B. NO. 1877 Page 31
F. Within available funding specified by this section, the
relative support program may provide grandparents or other suitable
relatives with:

1. Case management services;

2. Monthly stipends or other financial assistance, family
support and preservation services;

3. Flexible funds to enable the grandparents or other relatives
to meet unusual or crisis expenditures, including but not limited
to, making housing deposits, utility deposits, or to purchase beds,
clothing and food;

4. Subsidized child care and after school care;

5. Respite care;

6. Transportation;

7. Counseling;

8. Support groups;

9. Assistance in accessing parental child support payments;

10. Aid in accessing food stamps, Social Security and other
public benefits;

11. Information about legal options for relative caregivers;

12. Assistance for establishing a relative guardianship or
relative custodianship for the child;

13. Available volunteer attorney services;

14. Mediation/family group conferencing; and

15. Community-based services and state or federal programs
available to the child and relatives to support the child’s safety,
growth and health development.

ENR. S. B. NO. 1877 Page 32
G. Children living with grandparents or other relatives within
the third degree of relationship to the child who are receiving
assistance pursuant to this section shall be eligible for Medicaid
coverage.

H. Subject to availability of funding, and as may be permitted
by federal law or regulations governing the Department of Human
Services’ block grant for Temporary Assistance for Needy Families
(TANF), the Department is specifically authorized to provide funding
assistance from such block grant or other available funds for the
development and operation of the relative support program by
providing available funds which are not otherwise committed to or
necessary for the provision of the Statewide Temporary Assistance
Responsibility System. In addition, the Department may use any
other state, federal or private funds available to the Department
for such purposes to implement the provisions of this section.

I. 1. In order to qualify for the receipt of any monthly
stipend, the grandparent or other relative shall meet any
eligibility criteria determined by the Department of Human Services.

2. Within limits of available funding, monthly stipends may be
paid to grandparents or other relatives with the third degree of
relationship to the child who have physical full-time custody of a
child who would be unable to serve in that capacity without a
monthly stipend because of inadequate financial resources, thus
exposing the child to the trauma of potential placement in a shelter
or in foster care placement by the Department of Human Services.
The statewide average monthly rate for children in the legal custody
of grandparents or other relatives who are not certified as foster
homes shall not exceed the cost of providing foster care.

J. Additional assistance may be made available to qualified
grandparents or other relatives within the third degree of
relationship and children, based upon specific needs of the
grandparent or other relative of the child and the specific needs of
the child. Such assistance shall also be subject to available
funding.

K. The relative support program established by the Department
pursuant to this section may receive referrals from district courts
of this state, from social service or child advocate agencies, from

ENR. S. B. NO. 1877 Page 33
any other agency of this state, or other states or federal programs.
In addition, the relative support program may be accessed directly
by the grandparents or other relatives of the affected children by
application made to the Department of Human Services.

L. The Department of Human Services may provide any services
necessary to effectuate the purposes of this section by contract
with any person or with any public or private entity.

M. The provisions of this section shall also be available to a
legal guardian of a child who is within the fifth degree of relation
to the child.

N. The Department of Human Services shall, pursuant to the
provisions of the Administrative Procedures Act, promulgate any
rules necessary to implement the provisions of this section.

O. As a part of the relative support program, the Department
shall develop, publish, and distribute an informational brochure for
grandparents and other relatives who provide full-time care for
children. The information provided under the program authorized by
this section may include, but is not limited to, the following:

1. The benefits available to children and grandparents or other
relatives pursuant to this section providing full-time care;

2. The procedures to access the relative support program;

3. A list of support groups and resources located throughout
the state;

4. Such other information deemed necessary by the Department;
and

5. The brochure may be distributed through municipal and
district courts, hospitals, public health nurses, child protective
services, medical professional offices, county health departments,
elementary and secondary schools, senior citizens centers, public
libraries, local, city, county and state offices and community
action agencies selected by the Department.

ENR. S. B. NO. 1877 Page 34
P. The Department of Human Services shall submit a report of
the outcomes associated with the relative support program
established pursuant to this section to the Speaker of the Oklahoma
House of Representatives and the President Pro Tempore of the State
Senate on or before January 15, 2002.

SECTION 15. AMENDATORY 10 O.S. 2021, Section 405.1, is
amended to read as follows:

Section 405.1. A. The Department of Human Services shall
collaborate with other appropriate agencies to develop a
comprehensive Oklahoma state plan for child care.

B. The comprehensive plan shall:

1. Meet all requirements for child care state plans as
periodically determined by the United States Department of Health
and Human Services Administration for Children and Families Child
Care Bureau; and

2. Be electronically submitted to the Speaker of the Oklahoma
House of Representatives and the President Pro Tempore of the Senate
on a biannual basis utilizing the centralized filing system provided
for in Section 378 of this act.

SECTION 16. AMENDATORY 10 O.S. 2021, Section 601.5, as
amended by Section 3, Chapter 347, O.S.L. 2024 (10 O.S. Supp. 2025,
Section 601.5), is amended to read as follows:

Section 601.5. A. The Oklahoma Commission on Children and
Youth shall appoint a Director who shall be a person having
experience in the operation and administration of services to
children and youth. Such Director shall be appointed for a term of
two (2) years and may be reappointed. Such Director may be
dismissed only for cause. The Director shall:

1. Employ such staff as may be necessary to perform the duties
of the Commission, with the advice and approval of the Commission;

2. Prepare an annual report summarizing the activities of the
Oklahoma Commission on Children and Youth for the previous fiscal

ENR. S. B. NO. 1877 Page 35
year, other reports as necessary and appropriate, and an annual
budget for the approval of the Commission;

3. Formulate and recommend rules and regulations for approval
or rejection by the Commission;

4. Serve as chief executive officer of the Oklahoma Commission
on Children and Youth; and

5. Act as agent as authorized for the Commission in the
performance of its duties.

B. The Director may periodically convene issue-specific task
groups for the purpose of improving services for children and youth.
A copy of any report or recommendations which result from meetings
of a task group shall be electronically provided to the Commission,
Governor, Speaker of the House of Representatives, President Pro
Tempore of the Senate, and the director of each state agency
affected by the report or recommendations utilizing the centralized
filing system provided for in Section 378 of this act.

SECTION 17. AMENDATORY 10 O.S. 2021, Section 601.6, as
amended by Section 1, Chapter 178, O.S.L. 2025 (10 O.S. Supp. 2025,
Section 601.6), is amended to read as follows:

Section 601.6. A. For purposes of this section, the term
“children and youth service system” shall have the same meaning as
it is defined in Section 600 of this title.

B. The Office of Juvenile System Oversight shall have the
responsibility of inspecting and investigating misfeasance and
malfeasance within the children and youth service system, as
directed by the Oklahoma Commission on Children and Youth, to
ascertain compliance with established responsibilities.

C. The Office shall conduct not less than one but not more than
two regular, periodic, unannounced inspections of state-operated
children’s institutions and facilities annually. The Office is
further authorized to inspect privately operated children’s
institutions and facilities that receive state or federal funding,
on a periodic basis or as needed.

ENR. S. B. NO. 1877 Page 36
D. The Office shall investigate complaints filed with the
Office regarding the children and youth service system.

E. The Office of Juvenile System Oversight shall have the
authority to:

1. Access all facilities within the children and youth service
system for the purpose of conducting inspections and investigations;

2. Examine and copy all records and budgets pertaining to the
children and youth service system and to review inspection reports
of the State Fire Marshal, State Department of Health, and any other
agency that accredits such institutions and facilities;

3. Interview the residents of institutions and facilities
within the children and youth service system;

4. Subpoena witnesses and hold public hearings;

5. Establish, in accordance with the Dispute Resolution Act,
Sections 1801 through 1813 of Title 12 of the Oklahoma Statutes, a
voluntary program for foster parents to mediate complaints
concerning the rights of foster parents, as provided for in Section
1-9-119 of Title 10A of the Oklahoma Statutes, that relate to
certain actions, inactions or decisions of the Department of Human
Services, the Department of Juvenile Justice, or child-placing
agencies that may adversely affect the safety and well-being of
children in the custody of the state;

6. Receive any complaint alleging that an employee of the
Department of Human Services or a child-placing agency has
threatened a foster parent with removal of a child from the foster
parent, harassed a foster parent, or refused to place a child in a
licensed or certified foster home, or disrupted a child placement as
retaliation or discrimination towards a foster parent who has:

a. filed a grievance pursuant to Section 1-9-120 of Title
10A of the Oklahoma Statutes,

b. provided information to any state official or
Department employee, or

ENR. S. B. NO. 1877 Page 37
c. testified, assisted, or otherwise participated in an
investigation, proceeding, or hearing against the
Department or child-placing agency.

The Office of Juvenile System Oversight shall forward the
complaints to the Office of Client Advocacy for investigation
pursuant to subsection D of Section 1-9-112 of Title 10A of the
Oklahoma Statutes. The Office of Juvenile System Oversight shall
work with the Office of Client Advocacy to ensure the complaints are
investigated and resolved in accordance with the grievance
procedures provided in Section 1-9-120 of Title 10A of the Oklahoma
Statutes. The provisions of this paragraph shall not apply to any
complaint by a foster parent regarding the result of a criminal,
administrative, or civil proceeding for a violation of any law,
rule, or contract provision by that foster parent, or the action
taken by the Department or a child-placing agency in conformity with
the result of any such proceeding;

7. Issue Electronically issue reports, utilizing the
centralized filing system provided for in Section 378 of this act,
to the Governor, Speaker of the House of Representatives, President
Pro Tempore of the Senate, Chief Justice of the Supreme Court of the
State of Oklahoma, any appropriate prosecutorial agency, the
director of the agency under consideration, and other persons as
necessary and appropriate; and

8. Provide recommendations to the Oklahoma Commission on
Children and Youth on or before May 1 of each year.

F. The Office of Juvenile System Oversight shall not release
information that would identify a person who makes a complaint to
the Office, unless a court of competent jurisdiction orders release
of the information for good cause shown.

SECTION 18. AMENDATORY 10 O.S. 2021, Section 601.6a, as
amended by Section 4, Chapter 347, O.S.L. 2024 (10 O.S. Supp. 2025,
Section 601.6a), is amended to read as follows:

Section 601.6a. The Office of Planning and Coordination for
Services to Children and Youth shall:

ENR. S. B. NO. 1877 Page 38
1. Convene meetings of public and private agencies that provide
services to children and youth for the purpose of facilitating and
implementing joint planning and service coordination among said such
agencies;

2. Prepare, with input from the Parent Partnership Board and
affected public and private agencies, a State Plan for Services to
Children and Youth for the upcoming three (3) years for the approval
of the Commission;

3. Make recommendations, to be included in the State Plan, for
the development and improvement of services provided to children and
youth, including homeless children and youth and youth at risk of
homelessness; and

4. Issue Electronically issue reports, utilizing the
centralized filing system provided for in Section 378 of this act,
to the Governor, Speaker of the House of Representatives, President
Pro Tempore of the Senate, Chief Justice of the Supreme Court of the
State of Oklahoma, public and private agencies, and such other
persons as necessary and appropriate.

SECTION 19. AMENDATORY 10 O.S. 2021, Section 601.6b, as
amended by Section 5, Chapter 347, O.S.L. 2024 (10 O.S. Supp. 2025,
Section 601.6b), is amended to read as follows:

A. On or before July 1, 2024, and on or before July 1 of every
third year thereafter, the Oklahoma Commission on Children and Youth
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically transmit to the Director of
the Office of Management and Enterprise Services, the director of
each affected agency, the President Pro Tempore of the Senate, the
Speaker of the House of Representatives, and the Governor a copy of
the State Plan for Services to Children and Youth for the next three
(3) fiscal years.

B. The Office of Planning and Coordination, with the assistance
of the Office of Management and Enterprise Services and affected
agencies, may assemble topic-specific reports regarding services to
children, youth, and families to include program descriptions, past
and current expenditures, future budget requests, and a description

ENR. S. B. NO. 1877 Page 39
of program outcomes as directed by the Legislature or the
Commission.

SECTION 20. AMENDATORY 10 O.S. 2021, Section 601.6c, is
amended to read as follows:

Section 601.6c. A. The Office of Planning and Coordination for
Services to Children and Youth Steering Committee shall:

1. Review data and propose policy solutions relating to the
issue of child homelessness; and

2. Update the Oklahoma State Legislature on existing programs
to reduce child homelessness including, but not limited to, programs
administered or financed in whole or in part by any agency of this
state, nonprofit organizations, or private-sector entities.

B. The Steering Committee shall include an examination of the
following in its assessment and recommendations:

1. State trends in the number of children who are homeless or
are at risk of becoming homeless;

2. The state’s role in providing services to children and youth
who are homeless or at risk for becoming homeless;

3. State policy regarding homeless children and youth; and

4. Existing services, resources, and capacity including, but
not limited to, the availability of publicly or privately provided
resources to children and youth who are homeless or at risk of
becoming homeless.

C. The Steering Committee shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a report to the President Pro Tempore of the
Senate and Speaker of the House of Representatives by December 31,
2015, and annually thereafter, describing assessment and
recommendations provided for by this act.

SECTION 21. AMENDATORY 10 O.S. 2021, Section 601.81, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 40

Section 601.81. A. The departments that provide home-visiting
services may adopt and promulgate rules by which the home-visiting
program shall operate.

B. The departments shall provide a framework for service
delivery and accountability across all home-visiting programs to
promote a continuum of care that targets families at the greatest
risk for experiencing adverse childhood outcomes.

C. A home-visiting program shall provide face-to-face visits by
specially trained parent educators to provide home-based family
support services.

D. The departments shall ensure home-visiting programs work in
partnership to serve children, thereby maximizing the opportunities
for families to receive services that best fit their needs.

E. A home-visiting program shall achieve two or more of the
following:

1. Improve prenatal, maternal, infant or child health outcomes,
including, but not limited to, indicators such as preterm birth
rates, substance abuse, and tobacco use;

2. Reduce entry into the child welfare system;

3. Improve positive parenting and relationship skills;

4. Improve parental self-sufficiency, including increased
employment and educational attainment;

5. Improve children’s readiness to succeed in school; and

6. Improve children’s social-emotional, cognitive and language
and physical development, including efforts at early identification
of delays.

F. The departments shall work with community partners,
researchers, model developers, program providers and interested
private entities to develop processes that provide for a greater

ENR. S. B. NO. 1877 Page 41
ability to collaborate, as well as share best practices and
information as necessary and appropriate.

G. When the departments authorize funds through payments,
contracts or grants that are used for home-visiting programs, they
shall include language regarding home visiting in the funding
agreement contract or grant that is consistent with the provisions
of the Family Support Accountability Act.

H. State and local agencies administering home-visiting
programs as defined in this act, providers of home-visiting services
and experts in home-visiting program evaluation shall collaborate
with the Early Childhood Advisory Council created in Section 640.1
of Title 10 of the Oklahoma Statutes to:

1. Jointly develop an outcomes measurement plan which includes
indicators related to the objectives established in subsection E of
this section in order to monitor outcomes for children and families
receiving home-visiting programs and determine the efficiency of
agency program implementation;

2. Complete and, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit the
outcomes measurement plan for state-funded home-visiting programs by
January 1, 2016, to the Governor, the Legislature, the Oklahoma
Commission on Children and Youth and the Early Childhood Advisory
Council and complete and submit an updated plan every subsequent
five (5) years; and

3. Develop a process for collecting and reporting outcomes
measures to maintain privacy and security.

I. Beginning December 1, 2017, and annually thereafter, the
departments shall allocate resources to collaborate with the Early
Childhood Advisory Council to, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit an annual outcomes report to the Governor and the
Legislature.

J. The annual outcomes report shall include:

ENR. S. B. NO. 1877 Page 42
1. Achieved outcomes as agreed upon and described in the
previously submitted outcomes measurement plan pursuant to
subsection H of this section for all state-funded family support
programs;

2. Combined program data regarding:

a. the cost per family served,

b. the number of families served,

c. demographic data on families served, and

d. the number and type of programs that the departments
have funded; and

3. Recommendations for quality improvements and future program
investments.

SECTION 22. AMENDATORY Section 2, Chapter 35, 1st
Extraordinary Session, O.S.L. 2023 (10 O.S. Supp. 2025, Section
802), is amended to read as follows:

Section 802. A. There is hereby created in the State Treasury
a revolving fund for the Administrative Office of the Courts to be
designated the “Family Representation and Advocacy Program Revolving
Fund”. The fund shall be a continuing fund, not subject to fiscal
year limitations, and shall consist of all monies received by the
Administrative Office of the Courts for child and indigent parent,
legal guardian, and Indian custodian legal and interdisciplinary
representation services to be provided by the Family Representation
and Advocacy Program. The revolving fund shall include funds
appropriated to the fund, federal funds, gifts, donations, and
grants. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Administrative
Office of the Courts for the purpose of administering the Family
Representation and Advocacy Program and for the provision of legal
and interdisciplinary services to indigent parents and children by
and through the Family Representation and Advocacy Program. By
January 31, 2024, and by January 31 of each year thereafter, the
Administrative Office of the Courts shall disburse funds from the

ENR. S. B. NO. 1877 Page 43
Family Representation and Advocacy Program Revolving Fund to the
contracted eligible organization.

B. The Administrative Office of the Courts shall allocate and
expend funds from the Family Representation and Advocacy Program
Revolving Fund to provide for the necessary operating costs of the
Family Representation and Advocacy Program including court-appointed
legal and interdisciplinary representation to children, indigent
parents, legal guardians, or Indian custodians in proceedings
governed by the Oklahoma Children’s Code, to the extent that funds
are available from the Family Representation and Advocacy Program
Revolving Fund. The Administrative Office of the Courts shall
allocate and expend these funds pursuant to the contract with the
eligible organization. The Administrative Office of the Courts may
charge an administrative fee as provided in subsection D of this
section for administering the contract.

C. The eligible organization that contracts to operate and
manage the Family Representation and Advocacy Program to provide
legal and interdisciplinary services shall maintain books and
records in accordance with generally accepted accounting principles.
The books and records shall account for the receipt and expenditure
of all funds paid pursuant to contract. Books and records shall be
maintained for a period of five (5) years from the close of the
fiscal year of the contract period. The State Auditor and Inspector
may audit each organization annually. The necessary expense of each
audit including but not limited to the cost of typing, printing, and
binding shall be paid from funds of the organization.

D. The Administrative Office of the Courts may use up to two
and one-half percent (2.5%) of the funds deposited in the Family
Representation and Advocacy Program Revolving Fund in any given
fiscal year to provide financial support staff, financial data entry
staff and facilities, and operating assistance for the Family
Representation Program Advisory Board.

E. An annual report issued by the Administrative Office of the
Courts outlining performance measures for the Family Representation
and Advocacy Program and recommendations for ongoing appropriations
shall be electronically transmitted to the Governor, the President
Pro Tempore of the Oklahoma Senate and the Speaker of the House of

ENR. S. B. NO. 1877 Page 44
Representatives no later than December 31 of each year utilizing the
centralized filing system provided for in Section 378 of this act.

SECTION 23. AMENDATORY 10 O.S. 2021, Section 1150.2, as
last amended by Section 10, Chapter 347, O.S.L. 2024 (10 O.S. Supp.
2025, Section 1150.2), is amended to read as follows:

Section 1150.2. A. There is hereby re-created until July 1,
2026, in accordance with the Oklahoma Sunset Law, the Child Death
Review Board within the Oklahoma Commission on Children and Youth.
The Board shall have the power and duty to:

1. Conduct case reviews of deaths and near deaths of children
in this state;

2. Develop accurate statistical information and identification
of deaths of children due to abuse and neglect;

3. Improve the ability to provide protective services to the
surviving siblings of a child or children who die of abuse or
neglect and who may be living in a dangerous environment;

4. Improve policies, procedures and practices within the
agencies that serve children including the child protection system;

5. Enter into agreements with regional teams established by the
Board to carry out such duties and responsibilities as the Board
shall designate including assigned cases in the geographical area
for that regional team. The Commission, with the advice of the
Board, shall promulgate rules necessary for the implementation of
the provisions of this paragraph; and

6. Enter into agreements with other state, local, or private
entities as necessary to carry out the duties of the Board
including, but not limited to, conducting joint reviews with the
Domestic Violence Fatality Review Board on domestic violence cases
involving child death or child near-death incidents.

B. In carrying out its duties and responsibilities the Board
shall:

ENR. S. B. NO. 1877 Page 45
1. Establish criteria for cases involving the death or near
death of a child subject to specific, in-depth review by the Board.
As used in this section, the term “near death” means a child is in
serious or critical condition, as certified by a physician, as a
result of abuse or neglect;

2. Conduct a specific case review of those cases where the
cause of death or near death is or may be related to abuse or
neglect of a child;

3. Establish and maintain statistical information related to
the deaths and near deaths of children including, but not limited
to, demographic and medical diagnostic information;

4. Establish procedures for obtaining initial information
regarding near deaths of children from the Department of Human
Services and law enforcement agencies;

5. Review the policies and procedures of the child protection
system and make specific recommendations to the entities comprising
the system as to actions necessary for improvement;

6. Review the extent to which the state child protection system
is coordinated with foster care and adoption programs and evaluate
whether the state is efficiently discharging its child protection
responsibilities under the federal Child Abuse Prevention and
Treatment Act State Plan;

7. As necessary and appropriate, for the protection of the
siblings of a child who dies and whose siblings are deemed to be
living in a dangerous environment, refer specific cases to the
Department of Human Services or the appropriate district attorney
for further investigation;

8. Request and obtain a copy of all records and reports
pertaining to a child whose case is under review including, but not
limited to:

a. the report of the medical examiner,

b. hospital records,

ENR. S. B. NO. 1877 Page 46
c. school records,

d. court records,

e. prosecutorial records,

f. local, state, and federal law enforcement records
including, but not limited to, the Oklahoma State
Bureau of Investigation (OSBI),

g. fire department records,

h. State Department of Health records including birth
certificate records,

i. medical and dental records,

j. Department of Mental Health and Substance Abuse
Services and other mental health records,

k. emergency medical service records,

l. files of the Department of Human Services, and

m. records in the possession of the Domestic Violence
Fatality Review Board when conducting a joint review
pursuant to paragraph 6 of subsection A of this
section.

Confidential information provided to the Board shall be
maintained in a confidential manner as required by state and federal
law. Any person damaged by disclosure of such information by the
Board, its regional teams or their members, not authorized by law,
may maintain an action for damages, costs, and attorney fees;

9. Maintain all confidential information, documents and records
in possession of the Board as confidential and not subject to
subpoena or discovery in any civil or criminal proceedings;
provided, however, information, documents and records otherwise
available from other sources shall not be exempt from subpoena or
discovery through those sources solely because such information,
documents and records were presented to or reviewed by the Board;

ENR. S. B. NO. 1877 Page 47

10. Conduct reviews of specific cases of deaths and near deaths
of children and request the preparation of additional information
and reports as determined to be necessary by the Board including,
but not limited to, clinical summaries from treating physicians,
chronologies of contact, and second-opinion autopsies;

11. Report Electronically report, utilizing the centralized
filing system provided for in Section 378 of this act, if
recommended by a majority vote of the Board, to the President Pro
Tempore of the Senate and the Speaker of the House of
Representatives any gross neglect of duty by any state officer or
state employee, or any problem within the child protective services
system discovered by the Board while performing its duties;

12. Recommend, when appropriate, amendment of the cause or
manner of death listed on the death certificate; and

13. Subject to the approval of the Commission, exercise all
incidental powers necessary and proper for the implementation and
administration of the Child Death Review Board Act.

C. The review and discussion of individual cases of death or
near death of a child shall be conducted in executive session and in
compliance with the confidentiality requirements of Section 1-6-102
of Title 10A of the Oklahoma Statutes. All other business shall be
conducted in accordance with the provisions of the Oklahoma Open
Meeting Act. All discussions of individual cases and any writings
produced by or created for the Board and recommended by the Board,
as the result of a review of an individual case of the death or near
death of a child, shall be privileged and shall not be admissible in
evidence in any proceeding. The Board shall periodically conduct
meetings to discuss organization and business matters and any
actions or recommendations aimed at improvement of the child
protection system which shall be subject to the Oklahoma Open
Meeting Act. Part of any meeting of the Board may be specifically
designated as a business meeting of the Board subject to the
Oklahoma Open Meeting Act.

D. 1. The Board shall submit an annual statistical report on
the incidence and causes of death and near death of children in this
state for which the Board has completed its review during the past

ENR. S. B. NO. 1877 Page 48
calendar year, including its recommendations, to the Oklahoma
Commission on Children and Youth on or before May 1 of each year.
The Board shall also prepare and make available to the public, on an
annual basis, a report containing a summary of the activities of the
Board relating to the review of deaths and near deaths of children,
the extent to which the state child protection system is coordinated
with foster care and adoption programs, and an evaluation of whether
the state is efficiently discharging its child protection
responsibilities. The report shall be completed no later than
December 31 of each year.

2. The Commission shall review the report of the Board and, as
appropriate, incorporate the findings and recommendations into the
State Plan for Services to Children and Youth.

SECTION 24. AMENDATORY 10 O.S. 2021, Section 1411.1, is
amended to read as follows:

Section 1411.1. A. Beginning January 1, 1999, and on January 1
each year thereafter, the Department of Human Services shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit to the Governor and the
Legislature an annual report of the administrative activities of the
Developmental Disabilities Services Division. The report shall
include a clear and complete description of the administrative
procedures utilized by the Developmental Disabilities Services
Division including, but not limited to:

1. Accounting and budgeting practices;

2. Client statistical data gathering and management;

3. Data processing procedures;

4. Development and maintenance of program service plans;

5. Provide contracting and evaluation procedures;

6. Incorporation of advisory committee assessment
recommendations; and

ENR. S. B. NO. 1877 Page 49
7. Any other area of activity that is not related to direct
delivery of services to applicants and clients.

B. The report shall also include, but not be limited to,
previous year performance data on:

1. The number of clients:

a. who applied for service,

b. accepted for service,

c. for whom plans for service were approved or denied,

d. receiving services by classification of service
objective, and

e. who were provided a type of service that differed from
the objective contained in the client’s service plan;

2. The cost of services;

3. The total cost for clients who received services;

4. The average cost and percentile cost distribution of
purchased services for all clients served; and

5. a. The average cost for all clients who received:

(1) at least eight hours of care,

(2) between eight and sixteen hours of care, and

(3) between sixteen and twenty-four hours of care.

b. In determining such averages, the Department shall
include, but not be limited to, the following costs:

(1) laboratory and x-ray services,

(2) dental services,

ENR. S. B. NO. 1877 Page 50
(3) occupational therapy,

(4) speech therapy,

(5) physical therapy,

(6) doctor services,

(7) nursing services,

(8) hospitalization,

(9) optometry services,

(10) housing services,

(11) utilities,

(12) food,

(13) transportation,

(14) clothing, and

(15) administrative costs of providing such services.

C. Beginning January 1, 1999, and on or before January 1 each
year thereafter, the Department shall prepare a report outlining the
Department’s two-year plan for providing individualized services to
clients with developmental disabilities. The report shall include
any new federal mandates and an estimate of any costs associated
with such mandates, and recommendations for any needed statutory or
constitutional changes. The Commission for Human Services shall
review, amend if necessary and approve the report. The Department
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically transmit the approved report
to the Governor, the President Pro Tempore of the Senate, and the
Speaker of the House of Representatives.

SECTION 25. AMENDATORY 10A O.S. 2021, Section 1-2-111,
is amended to read as follows:

ENR. S. B. NO. 1877 Page 51
Section 1-2-111. A. The Department of Human Services may,
subject to available funding and in consultation with an evaluation
team created pursuant to this section, create a pilot program to
improve socioeconomic outcomes for children in state custody.

B. If implemented by the Department, the pilot program shall:

1. Identify the populations of children in state custody and
the characteristics of those children including, but not limited to,
populations in which parental drug and/or or alcohol abuse, mental
illness, mental and/or, or physical disability and domestic abuse
are an issue;

2. Develop and design programs to provide services to children
in state custody;

3. Develop methods for coordinating state and local services to
assist children and their families;

4. Allow and provide for participation of both urban and rural
concerns in developing and designing such programs;

5. Monitor, evaluate and review the programs implemented to
serve populations of children in state custody; and

6. Include such other areas, programs, services, and
information deemed necessary by the Department to provide a
comprehensive assessment of the needs and programs necessary to
provide assistance to children in state custody.

C. An evaluation team shall determine the effectiveness of the
pilot program and make, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit a
report to the Legislature and to the Department annually thereafter.
Such report shall cover:

1. Effective programs that will serve children in state
custody;

2. The potential for statewide expansion of programs;

3. Funding sources from public and private partnerships;

ENR. S. B. NO. 1877 Page 52

4. Training of professionals to serve children in state
custody;

5. Monitoring, evaluating, and reviewing continued
effectiveness of such programs;

6. Special needs of children in state custody from parental
addiction to drugs and alcohol and parental mental illness and
mental and/or or physical disability and from domestic abuse; and

7. Recommendations regarding the issuance of grants and
contracts for serving such populations.

D. The evaluation team shall consist of not more than two (2)
representatives from the following entities who have expertise in
child abuse prevention, juvenile delinquency, or a related field and
who have an understanding of program evaluation techniques:

1. The Department of Human Services;

2. The Department of Mental Health and Substance Abuse
Services;

3. The Oklahoma Commission on Children and Youth;

4. A statewide organization advocating for children’s issues;

5. A statewide organization representing children in court;

6. The University of Oklahoma;

7. Oklahoma State University; and

8. The Office of Juvenile Affairs.

E. Upon receipt of recommendations from the evaluation team
established pursuant to this section, which indicate that the
expansion of the pilot project on a statewide basis would be
economically feasible and practical, the Department for Human
Services may promulgate rules for developing a statewide program
based on the findings of the pilot program.

ENR. S. B. NO. 1877 Page 53

F. The Department may:

1. Contract for services necessary to carry out the duties of
the Department pursuant to the provisions of this section; and

2. Accept the services of volunteer workers or consultants,
provided no compensation be provided for such services.

G. The Department of Human Services may promulgate rules to
implement the provisions of this section.

SECTION 26. AMENDATORY 10A O.S. 2021, Section 1-6-105,
is amended to read as follows:

Section 1-6-105. A. When used in this section, unless the
context otherwise requires:

1. “Abuse” means harm or threatened harm or failure to protect
from harm or threatened harm to the health, safety, or welfare of a
child by a person responsible for the child, including but not
limited to nonaccidental physical or mental injury, sexual abuse, or
sexual exploitation. Provided, however, that nothing contained in
this act shall prohibit any parent from using ordinary force as a
means of discipline including, but not limited to, spanking,
switching, or paddling;

2. “Identifying information” means information that identifies
an individual, including the individual’s:

a. name, address, date of birth, occupation, place of
employment and telephone number,

b. employer identification number, mother’s maiden name,
Social Security number, or any identification number
issued by a governmental entity, or

c. unique biometric data, including the fingerprints,
voice print, or retina or iris image of the
individual;

ENR. S. B. NO. 1877 Page 54
3. “Near death” means a child is in serious or critical
condition as verified by a physician, a registered nurse or other
licensed health care provider. Verification of medical condition of
a child may be given in person or by telephone, mail, electronic
mail or facsimile;

4. “Neglect” means:

a. the failure or omission to provide any of the
following:

(1) adequate nurturance and affection, food,
clothing, shelter, sanitation, hygiene, or
appropriate education,

(2) medical, dental, or behavioral health care,

(3) supervision or appropriate caretakers, or

(4) special care made necessary by the physical or
mental condition of the child,

b. the failure or omission to protect a child from
exposure to any of the following:

(1) the use, possession, sale, or manufacture of
illegal drugs,

(2) illegal activities, or

(3) sexual acts or materials that are not age-
appropriate, or

c. abandonment.

Nothing in this paragraph shall be construed to mean a child is
abused or neglected for the sole reason the parent, legal guardian
or person having custody or control of a child, in good faith,
selects and depends upon spiritual means alone through prayer, in
accordance with the tenets and practice of a recognized church or
religious denomination, for the treatment or cure of disease or
remedial care of such child. Nothing contained in this paragraph

ENR. S. B. NO. 1877 Page 55
shall prevent a court from immediately assuming custody of a child,
pursuant to the Oklahoma Children’s Code, and ordering whatever
action may be necessary, including medical treatment, to protect the
child’s health or welfare; and

5. “Person responsible for a child” means “person responsible
for a child’s health, safety or welfare” as provided in Section 1-1-
105 of this title but shall also include any person who has
voluntarily accepted the duty of supervising a child or who has been
directed or authorized to supervise a child by the person
responsible for the child’s health, safety or welfare.

B. Department of Human Services information shall be maintained
by the Department as required by federal law as a condition of the
allocation of federal monies to the state. All exceptions for the
public release of Department information shall be construed as
openly as possible consistent with federal law.

C. If the Department has reasonable cause to suspect that a
child death or near death is the result of abuse or neglect, the
Department shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically notify the Governor,
the President Pro Tempore of the Senate, and the Speaker of the
House of Representatives or their designees of the initial
investigative findings of the child protective services review.
Notice shall be communicated securely no later than twenty-four (24)
hours after determination of the reasonable suspicion.

D. Once the Department has reasonable cause to suspect that a
child death or near death is the result of abuse or neglect, the
Department shall, upon request, release to the public the following
information:

1. The age and sex of the child;

2. The date of death or near-death incident;

3. Whether the child was in the custody of the Department at
the time of the child’s death or near death;

ENR. S. B. NO. 1877 Page 56
4. Whether the child resided with the child’s parent, guardian,
or person responsible for the care of the child at the time of the
child’s death or near death; and

5. Whether the child was under the supervision of the child’s
parent, guardian, or person responsible for the child at the time of
the death or near death of the child.

E. If, after a child abuse or neglect investigation is
completed, the Department determines a child’s death or near death
was the result of abuse or neglect, the Department shall, upon
request, release to the public the following information:

1. The information described in subsection D of this section;

2. The name of the abused or neglected child; provided, that
the name shall not be disclosed in a case of a near death unless the
name has previously been disclosed;

3. The name of the offender if due process has been satisfied
or if the offender has been arrested and charged with a crime
associated with the death or near death of the child;

4. In cases in which the death or near death of the child
occurred while the child was living with the child’s parent,
guardian, or person responsible for the care of the child:

a. the circumstances of the death or near death of the
child,

b. a summary of the child’s involvement with the
Department while the child was living with the parent,
guardian, or person responsible for the care of the
child,

c. the disposition of any report created as a result of
the child’s involvement with the Department while the
child was living with the parent, guardian, or person
responsible for the care of the child,

d. a description of the services, if any, that were
provided by the Department as a result of the child’s

ENR. S. B. NO. 1877 Page 57
involvement with the Department while the child was
living with the parent, guardian, or person
responsible for the care of the child,

e. the results of any risk or safety assessment completed
by the Department relating to the child,

f. the date each report was assessed and completed,

g. whether the Department confirmed abuse or neglect,

h. whether any reports were referred to the district
attorney and the date of the referrals,

i. the dates of any judicial proceedings prior to the
death or near death of the child,

j. a summary of the recommendations submitted by each
participant at the judicial proceedings including
recommendations made at the hearing as they relate to
custody or placement of the child,

k. the rulings of the court,

l. specific recommendations made and services rendered by
the Department described in any progress reports of a
pending case submitted to the court,

m. a summary of the status of the child’s case at the
time of the death or near death, including, without
limitation, whether the child’s case was closed by the
Department before the death or near death,

n. similar information for any other investigations
concerning that child, or other children while living
in the same household,

o. a summary of statutory and policy violations,
including notice of any personnel actions taken by the
Department, and

ENR. S. B. NO. 1877 Page 58
p. recommendations for policy changes or practice
improvements based upon the interactions between the
Department, the child who died or nearly died and the
person responsible for the care of the child; and

5. In cases in which the death or near death of the child
occurred while the child was in the custody of the Department and
the person responsible for the supervision of the child was the
suspected perpetrator, the following information:

a. the circumstances of the death or near death of the
child,

b. information regarding the certification of the person
with whom the child was residing at the time of death
or near death,

c. a summary of any previous reports of abuse or neglect
investigated by the Department relating to the person
responsible for the supervision of the child,
including the disposition of any investigation
resulting from a report,

d. any policy violations, including notice of any action
taken by the Department regarding a violation,

e. records of any training completed by the person
responsible for the supervision of the child,

f. similar information for any other investigations
concerning that child, or other children while living
in the same household,

g. a summary of licensing actions taken by the
Department, and

h. recommendations for policy changes or practice
improvements based upon the interactions between the
Department and the child who died or nearly died.

F. If the Department is unable to release the information
required by subsection E of this section before forty-five (45) days

ENR. S. B. NO. 1877 Page 59
after receiving a report of the death or near death of a child, the
Department shall notify the person requesting the information of the
delay and provide the reason for the delay and the expected date the
Department will release the report.

G. At any time subsequent to seven (7) days, but no more than
forty-five (45) days, of the date the person responsible for the
child has been criminally charged, the district attorney, the
district court clerk, and the judge having jurisdiction over the
case, upon request, shall release certain information to the public
as follows:

1. The dates of any relevant judicial proceedings prior to the
death or near death of the child;

2. Recommendations submitted by each participant in writing at
the relevant judicial proceedings including recommendations made at
the hearing as they relate to custody or placement of a child; and

3. The relevant rulings of the court.

H. 1. At any time subsequent to seven (7) days after the date
the person responsible for the child has been criminally charged,
the Oklahoma Commission on Children and Youth shall, upon request,
release certain information to the public within sixty (60) days of
the request as follows:

a. a confirmation shall be provided by the Commission as
to whether a report of suspected child abuse or
neglect has been made concerning the alleged victim or
other children while living in the same household and
whether an investigation has begun,

b. confirmation shall be provided by the Commission as to
whether previous reports of suspected child abuse or
neglect have been made concerning the alleged victim
of the death or near death or against the person
responsible for the child and the dates thereof, a
summary of those previous reports, the dates and
outcome of any investigations or actions taken by the
Department and the Commission in response to any
previous report of child abuse or neglect, and the

ENR. S. B. NO. 1877 Page 60
specific recommendation made to the district attorney
and any subsequent action taken by the district
attorney,

c. the dates of any relevant judicial proceedings prior
to the death or near death of the child,

d. recommendations submitted by the Department and the
Commission shall be provided in writing including
relevant recommendations made at the hearing as they
relate to custody or placement of a child,

e. the relevant rulings of the court, and

f. any relevant information listed in subsections E and G
of this section.

2. Specific recommendations made by the Commission described in
any progress reports of a pending case submitted to the court may be
disclosed by the Commission.

I. Unless specifically authorized by this section, any public
disclosure of information pursuant to this section shall not:

1. Identify or provide any identifying information of any
complainant or reporter of child abuse or neglect;

2. Identify or provide any identifying information of the
victim, the child victim’s siblings or other children living in the
same household, the parent or other person responsible for the
child, or any other member of the household, or the person
criminally charged or Department employees, agents or contractors.
Nonspecific descriptors, such as father, mother, stepparent, or
sibling may be used; or

3. Violate other state or federal law as required pursuant to
subsection A of Section 1-6-102 of this title.

J. Any and all statements, affirmations, gestures, or conduct
expressing apology, sympathy, commiseration, condolence, compassion,
sorrow or a general sense of benevolence which are made by the
Department of Human Services or an employee of the Department to the

ENR. S. B. NO. 1877 Page 61
public or to the family or foster parents of a child which relate
solely to discomfort, pain, suffering, injury, tragedy, near death
or death of a child shall be inadmissible as evidence of an
admission of liability or wrongdoing or as evidence of an admission
against interest.

SECTION 27. AMENDATORY 10A O.S. 2021, Section 1-8-111,
is amended to read as follows:

Section 1-8-111. A. The Department of Human Services shall
provide each youth in its custody fourteen (14) years and older an
annual credit report. The Department shall inform the court with
jurisdiction over the youth of any inaccuracies in a credit report
displaying evidence of identity theft or any other activity
fraudulently made on behalf of the youth in custody. The Department
may implement the requirements of this section in stages beginning
with youth in the independent living program whose credit rating may
inhibit employment and housing opportunities when the child is no
longer in custody.

B. Within one (1) year of November 1, 2014, the Department of
Human Services shall submit annual reports on the implementation of
the provisions of this section to the Chair and Vice Chair of the
Senate Health and Human Services Committee and the Chair and Vice
Chair of the House Human Services Committee. Such reports shall
include, but not be limited to, the number of youths in the
Department’s custody receiving credit score reports, the frequency
of such reports and administrative issues faced by the Department in
the implementation of this section. Such reports shall continue to
be issued by the Department until November 1, 2018.

SECTION 28. AMENDATORY 10A O.S. 2021, Section 1-9-105,
is amended to read as follows:

Section 1-9-105. A. The Department of Human Services shall
carefully define the children and youth programs of the Department
as to their purpose, the population served, and performance
expectations. Planning for new programs and services and major
modifications to existing ones shall include evaluation of their
effect on other programs and services and communication and
coordination with other public and private children and youth
service providers in order to assure successful and cost-effective

ENR. S. B. NO. 1877 Page 62
implementation of the program. An evaluation component that
includes monitoring and evaluation of client outcomes shall be
incorporated into all of the Department’s programs and services to
children and youth, whether provided directly by the agency or
through a contract.

1. All programs and services shall be designed to ensure the
accessibility of the program to the persons served. Provision for
transportation, child care and similar services necessary in order
to assist persons to access the services shall be made. If the
service is provided in an office setting, the service shall be
available during the evening.

2. Programs and services shall be targeted to the areas of the
state having the greatest need for them. The programs and services
shall be designed to meet the needs of the area in which they are
located. Programs and services intended for statewide
implementation shall be implemented first in those areas that have
the greatest need for them.

3. As a part of the Department’s program planning and
monitoring processes, the Department shall examine its programs and
services to children and youth to ensure that the practices within
them do not operate to detriment of minority children and youth.

4. All child care services and facilities operated by the
Department shall be accredited by the National Council on
Accreditation, when applicable.

B. The Department shall develop a five-year plan for children
and youth services provided by the agency. The plan shall be
reviewed annually and modified as necessary. Agency budget
recommendations of the Department for services to children and youth
shall be based upon documented needs, and the development of budget
recommendations and priorities shall be closely integrated with
agency and interagency program planning and management.

C. The Department shall annually review its programs and
services and, utilizing the centralized filing system provided for
in Section 378 of this act, electronically submit a report to the
Governor, the Speaker of the House of Representatives, the President
Pro Tempore of the Senate, and the Supreme Court of the State of

ENR. S. B. NO. 1877 Page 63
Oklahoma, analyzing and evaluating the effectiveness of the programs
and services being carried out by the Department. Such report shall
include, but not be limited to:

1. An analysis and evaluation of programs and services
continued, established, and discontinued during the period covered
by the report;

2. A description of programs and services which should be
implemented;

3. Statutory changes necessary;

4. Relevant information concerning the number of children in
the Department’s custody during the period covered by the report;
and

5. Such other information as will enable a user of the report
to ascertain the effectiveness of the Department’s programs and
services.

D. The Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, on or before January
31 of each year, electronically submit a report to the Governor,
President Pro Tempore of the Senate, Speaker of the House of
Representatives, and the Oklahoma Supreme Court which shall include:

1. Information concerning the number of children in the
Department’s custody that are placed in nonfamily settings,
including but not limited to the types of settings utilized and the
duration of the children’s stays in such settings;

2. A census of approved foster homes and the number of children
placed in those homes and a comparative review of foster home room-
and-board rates; and

3. Information concerning child welfare staff workloads and
comparative salaries for such staff.

SECTION 29. AMENDATORY 10A O.S. 2021, Section 1-9-120,
as amended by Section 2, Chapter 28, O.S.L. 2023 (10A O.S. Supp.
2025, Section 1-9-120), is amended to read as follows:

ENR. S. B. NO. 1877 Page 64

Section 1-9-120. A. The Office of Client Advocacy and child-
placing agencies shall each establish grievance procedures for
foster parents with whom the Department of Human Services or child-
placing agencies contract. The Office of Client Advocacy shall work
with the Office of Juvenile System Oversight to track foster parent
complaints through the grievance procedures and ensure a resolution
of the complaint.

B. The procedures established shall contain the following
minimum requirements:

1. Resolution of disputes with foster parents shall be
accomplished quickly, informally, and at the lowest possible level,
but shall provide for access to impartial arbitration by management
level personnel within the central office;

2. Prompt resolution of grievances no more than sixty (60) days
after receipt of the grievance or complaint; and

3. Notification to all foster parents upon placement of a child
about the grievance procedures and how to file a complaint.

C. The Office of Client Advocacy and each child-placing agency
shall designate one employee at the central office to receive and
process foster care grievances received by the Office of Juvenile
System Oversight.

D. The Office of Client Advocacy and each child-placing agency
shall maintain records of each grievance filed as well as summary
information about the number, nature and outcome of all grievances
filed. The Office of Client Advocacy and the Office of Juvenile
System Oversight shall compile an annual report for to be
electronically submitted to the Legislature, utilizing the
centralized filing system provided for in Section 378 of this act,
that details the number of complaints received, the number of
complaints resolved, the nature of the complaints and any other
information requested by the Legislature. The Office of Client
Advocacy and child-placing agencies shall keep records of grievances
separate and apart from other foster parent files. A foster parent
or a former foster parent shall have a right of access to the record

ENR. S. B. NO. 1877 Page 65
of grievances such person filed after the procedure has been
completed.

E. 1. Each foster parent shall have the right, without fear of
reprisal or discrimination, to present grievances with respect to
the providing of foster care services.

2. The Department of Human Services shall promptly initiate a
plan of corrective discipline including, but not limited to,
dismissal of any Department employee or cancellation or nonrenewal
of the contract of a child-placing agency determined by the state
agency, through an investigation to have retaliated or discriminated
against a foster parent who has:

a. filed a grievance pursuant to the provisions of this
section,

b. provided information to any official or Department
employee, or

c. testified, assisted, or otherwise participated in an
investigation, proceeding or hearing against the
Department or the child-placing agency.

3. The provisions of this subsection shall not be construed to
include any complaint by the foster parent resulting from an
administrative, civil, or criminal action taken by the employee or
child-placing agency for violations of law or rules, or contract
provisions by the foster parent.

SECTION 30. AMENDATORY 10A O.S. 2021, Section 2-7-311,
is amended to read as follows:

Section 2-7-311. A. The Office of Juvenile Affairs shall from
time to time, but not less often than annually, review its programs
and services and, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit a report to
the Governor, the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, the Supreme Court of the State
of Oklahoma, the Board of Juvenile Affairs, and the Oklahoma
Commission on Children and Youth analyzing and evaluating the

ENR. S. B. NO. 1877 Page 66
effectiveness of its programs and services. The report shall
include, but not be limited to:

1. An analysis and evaluation of programs and services
continued, established, and discontinued during the period covered
by the report;

2. A description of programs and services which should be
implemented;

3. Relevant information concerning the number of children
comprising the population of any facility operated by the Office of
Juvenile Affairs during the period covered by the report;

4. An analysis and evaluation, by age, of the number of
children assessed for literacy skills, the number who failed to
demonstrate age-appropriate reading skills, and the number who were
required to participate in a literacy skills improvement program;
and

5. Such other information as will enable a user of the report
to ascertain the effectiveness of the programs, services, and
facilities.

B. The Office of Juvenile Affairs shall annually analyze and
evaluate the implementation of the Youthful Offender Act, the
effectiveness of the Youthful Offender Act and any problems which
have occurred which have limited the effectiveness of the Youthful
Offender Act. The annual analysis and evaluation shall be
incorporated in the report required by subsection A of this section.

SECTION 31. AMENDATORY 10A O.S. 2021, Section 2-7-606,
is amended to read as follows:

Section 2-7-606. A. The Office of Juvenile Affairs shall have
the supervision, management, operation, and control of the
institution for children located at Tecumseh, formerly known and
designated as Girls’ Town and now known as Central Oklahoma Juvenile
Center, and all property, equipment and supplies related thereto.

B. The Central Oklahoma Juvenile Center shall maintain
facilities and bed-space capacity for programs that are consistent

ENR. S. B. NO. 1877 Page 67
with providing statewide juvenile justice and delinquency prevention
services.

C. It shall be the duty of the State Fire Marshal and the State
Commissioner of Health, to cause regular, periodic, not less than
quarterly, unannounced inspections of said such institution,
utilizing adequately trained and qualified inspection personnel, to
determine and evaluate conditions and programs being maintained and
carried on at said such institution in their respective areas of
agency jurisdiction. Such inspections shall include, but not be
limited to, the following: compliance with minimum fire, life, and
health safety standards; compliance with minimum standards governing
general sanitation of the institution, with particular emphasis upon
food storage, preparation, serving and transportation, respectively.
Reports of such inspections will be made in writing, itemizing and
identifying any deficiencies and recommending corrective measures,
and shall be electronically filed with the Board of Juvenile
Affairs, the Executive Director of the Office of Juvenile Affairs,
the Attorney General, the Speaker of the House of Representatives,
the President Pro Tempore of the Senate, the Office of Juvenile
System Oversight, and the Oklahoma Commission on Children and Youth
utilizing the centralized filing system provided for in Section 378
of this act. The Office of Juvenile Affairs shall file copies of
the reports of the inspections and recommendations of the
accrediting agencies listed in subsection D of this section with the
Office of Juvenile System Oversight.

D. The Office of Juvenile Affairs is authorized and directed to
establish, subject to the limits of funds available therefor, a
diversity of placement alternatives for children committed to the
custody of the Office including, but not limited to, foster family
homes, foster family group homes, and group homes. All child care
services and facilities operated by the Office shall be accredited
by the American Correctional Association, the Joint Commission on
Accreditation of Hospitals or the Child Welfare League of America,
as appropriate for the service or facility. The Office may directly
contract for accreditation fees, training or training conferences
with the organization accrediting the service or facility as
required by this subsection.

SECTION 32. AMENDATORY 10A O.S. 2021, Section 2-7-705,
is amended to read as follows:

ENR. S. B. NO. 1877 Page 68

Section 2-7-705. A. The Office of Juvenile Affairs shall have
the responsibility for implementation and evaluation of the
Delinquency and Youth Gang Intervention and Prevention Act and any
modifications thereto.

B. Any contract executed by the Office of Juvenile Affairs with
an eligible entity on and after the effective date of this act for
delinquency prevention and early intervention programs, subject to
the Delinquency and Youth Gang Intervention and Prevention Act,
shall require the eligible entity to prepare and submit to the
Office, in a manner prescribed by the Office, an outcome-based
performance report including, but not limited to, the following:

1. A description of the target population, service eligibility
criteria, and risk factors;

2. A description of program services, the number of clients
referred each year, the number of clients served each year, and the
number of clients discharged each year;

3. The average cost per client participating in program
services each year; and

4. Performance measures referencing service completion and
recidivism which employ uniform definitions developed by the Office.

C. The Office of Juvenile Affairs shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit to the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, and the
Governor by January 15 of each year, an annual report, including a
summary detailing the following information derived from the
outcome-based performance reports submitted by the eligible entities
pursuant to the provisions of subsection A of this section and other
information available to the Office:

1. Total amount of funds per state fiscal year expended for the
delinquency prevention programs subject to the Delinquency and Youth
Gang Intervention and Prevention Act;

ENR. S. B. NO. 1877 Page 69
2. Average expenditures per juvenile during the most recent
state fiscal year;

3. Analyses of the nature and effectiveness of gang-related
delinquency prevention and early intervention programs provided by
eligible entities pursuant to contracts;

4. Effectiveness of each of the programs provided by the
eligible entities;

5. Recommendations regarding distribution of the funds based
upon the effectiveness of the programs provided by the eligible
entities; and

6. Any other information or recommendations deemed necessary by
the Board of Juvenile Affairs.

SECTION 33. AMENDATORY 10A O.S. 2021, Section 2-7-905,
is amended to read as follows:

Section 2-7-905. A. For the purpose of information sharing and
management of the Juvenile Offender Tracking Program, there is
hereby created the Juvenile Justice Information System. The
information system shall be an automated, data-based, system for
tracking juvenile offenders from arrest through final closure of the
case and shall include information provided by all of the components
of the juvenile justice system in accordance with the provisions of
the Juvenile Offender Tracking Program. The information system
shall be fully integrated with other information systems related to
services to children and youth and shall:

1. Be based upon the integration, utilization, and
modification, as necessary, of existing information systems;

2. Provide for the accuracy of the information and for the
security of and limited access to the information;

3. Include case specific information, including client
outcomes, and have the ability to monitor juveniles in the juvenile
justice system; and

ENR. S. B. NO. 1877 Page 70
4. Be capable of providing management reports and information
to the various components of the juvenile justice system, and of
providing aggregate information necessary for planning, monitoring,
evaluating, and managing programs and services provided to youthful
offenders as well as for system-wide analysis of the Juvenile
Offender Tracking Program.

B. The Office of Juvenile Affairs, the juvenile bureaus, the
Oklahoma State Bureau of Investigation, the Office of the Court
Administrator, and other agencies and programs comprising the
juvenile justice system, including but not limited to law
enforcement and district attorneys, in accordance with guidelines
established by the Juvenile Offender Tracking Program, shall
jointly:

1. Identify information to be shared by agencies on a regular
basis;

2. Develop procedures for processing case-profiles as cases
move through agencies that come in contact with juvenile offenders;

3. Establish training programs in the use of the system;

4. Conduct a pilot project to test the system; and

5. At least annually, evaluate the plan for full statewide
implementation of the Juvenile Justice Information System and,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit any necessary modifications of
the existing plan to the Juvenile Offender Tracking Program and to
the Governor, the President Pro Tempore of the Senate, the Speaker
of the House of Representatives, and each agency affected by said
such plan.

SECTION 34. AMENDATORY 10A O.S. 2021, Section 2-10-103,
is amended to read as follows:

Section 2-10-103. The Oklahoma Commission on Children and Youth
shall prepare annually a report describing the Oklahoma Mentoring
Children of Incarcerated Parents Program and measuring its
effectiveness. The report shall be electronically submitted to the
President Pro Tempore of the Senate, the Speaker of the House of

ENR. S. B. NO. 1877 Page 71
Representatives, and the Governor of this state no later than March
1 of each applicable year utilizing the centralized filing system
provided for in Section 378 of this act. The report may be used for
the purpose of determining whether to continue or sunset the
Oklahoma Mentoring Children of Incarcerated Parents Program.

SECTION 35. AMENDATORY 11 O.S. 2021, Section 49-100.8,
is amended to read as follows:

Section 49-100.8. The State Board shall certify and, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit to the Director of the Office of
Management and Enterprise Services, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate, on or
before July 15 of each year, an actuarially determined estimate of
the rate of contribution which will be required, together with all
accumulated contributions and other assets of the System to pay by
level-dollar payments all liabilities which shall exist or accrue
pursuant to the provisions of the System, including amortization of
the unfunded accrued liability over a period of not to exceed thirty
(30) years beginning July 1, 2014.

SECTION 36. AMENDATORY 11 O.S. 2021, Section 49-100.9,
is amended to read as follows:

Section 49-100.9. A. The Oklahoma Firefighters Pension and
Retirement Board shall discharge their duties with respect to the
System solely in the interest of the participants and beneficiaries
and:

1. For the exclusive purpose of:

a. providing benefits to participants and their
beneficiaries, and

b. defraying reasonable expenses of administering the
System;

2. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of
an enterprise of a like character and with like aims;

ENR. S. B. NO. 1877 Page 72

3. By diversifying the investments of the System so as to
minimize the risk of large losses, unless under the circumstances it
is clearly prudent not to do so; and

4. In accordance with the laws, documents and instruments
governing the System.

B. The State Board may procure insurance indemnifying the
members of the State Board from personal loss or accountability from
liability resulting from a member’s action or inaction as a member
of the State Board.

C. The State Board may establish an investment committee. The
investment committee shall be composed of not more than five (5)
members of the State Board appointed by the chairman of the State
Board. The committee shall make recommendations to the full State
Board on all matters related to the choice of custodians and
managers of the assets of the System, on the establishment of
investment and fund management guidelines, and in planning future
investment policy. The committee shall have no authority to act on
behalf of the State Board in any circumstances whatsoever. No
recommendation of the committee shall have effect as an action of
the State Board nor take effect without the approval of the State
Board as provided by law.

D. The Board shall retain qualified investment managers to
provide for the investment of the monies of the System. The
investment managers shall be chosen by a solicitation of proposals
on a competitive bid basis pursuant to standards set by the State
Board. Subject to the overall investment guidelines set by the
State Board, the investment managers shall have full discretion in
the management of those monies of the System allocated to the
investment managers. The State Board shall manage those monies not
specifically allocated to the investment managers. The monies of
the System allocated to the investment managers shall be actively
managed by the investment managers, which may include selling
investments and realizing losses if such action is considered
advantageous to longer term return maximization. Because of the
total return objective, no distinction shall be made for management
and performance evaluation purposes between realized and unrealized
capital gains and losses.

ENR. S. B. NO. 1877 Page 73

E. Funds and revenues for investment by the investment managers
or the State Board shall be placed with a custodian selected by the
State Board. The custodian shall be a bank or trust company
offering pension fund master trustee and master custodial services
and any related custodial agreement or trust agreement is
incorporated herein by reference. The custodian shall be chosen by
a solicitation of proposals on a competitive bid basis pursuant to
standards set by the State Board. In compliance with the investment
policy guidelines of the State Board, the custodian bank or trust
company shall be contractually responsible for ensuring that all
monies of the System are invested in income-producing investment
vehicles at all times. If a custodian bank or trust company has not
received direction from the investment managers of the System as to
the investment of the monies of the System in specific investment
vehicles, the custodian bank or trust company shall be contractually
responsible to the State Board for investing the monies in
appropriately collateralized short-term interest-bearing investment
vehicles. Any assets of the System may be invested in a collective
investment fund or group trust that satisfies the requirements of
Revenue Ruling 81-100, as further amended by Revenue Ruling 2004-67,
Revenue Ruling 2008-40, and Revenue Ruling 2011-1, and as
subsequently amended by future guidance. Each such collective
investment fund or group trust is adopted, with respect to any
monies invested therein, as part of the System, its trust, and
custodial account and each such declaration of trust or trust
agreement and related adoption, participation, investment
management, subtrust, or other agreements, as amended from time to
time, with respect to any monies invested therein, are incorporated
by reference into the System, its trust agreement(s) or custodial
agreement(s), upon approval by the State Board.

F. By November 1, 1988, and prior to August 1 of each year
thereafter, the State Board shall develop a written investment plan
for the System.

G. The State Board shall compile a quarterly financial report
of all the funds of the System on a fiscal year basis. The report
shall be compiled pursuant to uniform reporting standards prescribed
by the Oklahoma State Pension Commission for all state retirement
systems. The report shall include several relevant measures of
investment value, including acquisition cost and current fair market

ENR. S. B. NO. 1877 Page 74
value with appropriate summaries of total holdings and returns. The
report shall contain combined and individual rate of returns of the
investment managers by category of investment, over periods of time.
The State Board shall include in the quarterly reports all
commissions, fees or payments for investment services performed on
behalf of the State Board. The report shall be electronically
distributed to the Governor, the Oklahoma State Pension Commission,
the Legislative Service Bureau, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate
utilizing the centralized filing system provided for in Section 378
of this act.

H. After July 1 and before December 1 of each year, the State
Board shall publish widely an annual report presented in simple and
easily understood language pursuant to uniform reporting standards
prescribed by the Oklahoma State Pension Commission for all state
retirement systems. The report shall be electronically submitted to
the Governor, the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, the Oklahoma State Pension
Commission, and the members of the System utilizing the centralized
filing system provided for in Section 378 of this act. The annual
report shall cover the operation of the System during the past
fiscal year, including income, disbursements, and the financial
condition of the System at the end of the fiscal year. The annual
report shall also contain the information issued in the quarterly
reports required pursuant to subsection G of this section as well as
a summary of the results of the most recent actuarial valuation to
include total assets, total liabilities, unfunded liability or over
funded status, contributions and any other information deemed
relevant by the State Board. The annual report shall be written in
such a manner as to permit a readily understandable means for
analyzing the financial condition and performance of the System for
the fiscal year.

I. Effective July 1, 2000, the State Board is hereby authorized
to do all acts and things necessary and proper to carry out the
purpose of the System and to make the least costly amendments and
changes, if any, as may be necessary to qualify the System under the
applicable sections of the Internal Revenue Code of 1986, as
amended.

ENR. S. B. NO. 1877 Page 75
SECTION 37. AMENDATORY 11 O.S. 2021, Section 50-105.3,
is amended to read as follows:

Section 50-105.3. The State Board shall certify and, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit such certification to the Director of the
Office of Management and Enterprise Services, the Speaker of the
House of Representatives, and the President Pro Tempore of the
Senate, on or before November 1 of each year, an actuarially
determined estimate of the rate of contribution which will be
required, together with all accumulated contributions and other
assets of the System to pay by level-dollar payments all liabilities
which shall exist or accrue pursuant to the provisions of the
System, including amortization of the unfunded accrued liability
over a period of not to exceed thirty (30) years beginning July 1,
1988.

SECTION 38. AMENDATORY 11 O.S. 2021, Section 50-105.4,
is amended to read as follows:

Section 50-105.4. A. The Oklahoma Police Pension and
Retirement Board shall discharge their duties with respect to the
System solely in the interest of the participants and beneficiaries
and:

1. For the exclusive purpose of:

a. providing benefits to participants and their
beneficiaries, and

b. defraying reasonable expenses of administering the
System;

2. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of
an enterprise of a like character and with like aims;

3. By diversifying the investments of the System so as to
minimize the risk of large losses, unless under the circumstances it
is clearly prudent not to do so; and

ENR. S. B. NO. 1877 Page 76
4. In accordance with the laws, documents and instruments
governing the System.

B. The State Board may procure insurance indemnifying the
members of the State Board from personal loss or accountability from
liability resulting from a member’s action or inaction as a member
of the State Board.

C. The State Board may establish an investment committee. The
investment committee shall be composed of not more than five (5)
members of the State Board appointed by the chairman of the State
Board. The committee shall make recommendations to the full State
Board on all matters related to the choice of custodians and
managers of the assets of the System, on the establishment of
investment and fund management guidelines, and in planning future
investment policy. The committee shall have no authority to act on
behalf of the State Board in any circumstances whatsoever. No
recommendation of the committee shall have effect as an action of
the State Board nor take effect without the approval of the State
Board as provided by law.

D. The State Board shall retain qualified investment managers
to provide for the investment of the monies of the System. The
investment managers shall be chosen by a solicitation of proposals
on a competitive bid basis pursuant to standards set by the State
Board unless the State Board deems it necessary and prudent to do
otherwise to fulfill its fiduciary responsibility. Subject to the
overall investment guidelines set by the State Board, the investment
managers shall have full discretion in the management of those
monies of the System allocated to the investment managers. The
State Board shall manage those monies not specifically allocated to
the investment managers. The monies of the System allocated to the
investment managers shall be actively managed by the investment
managers, which may include selling investments and realizing losses
if such action is considered advantageous to longer term return
maximization. Because of the total return objective, no distinction
shall be made for management and performance evaluation purposes
between realized and unrealized capital gains and losses.

E. Funds and revenues for investment by the investment managers
or the State Board shall be placed with a custodian selected by the
State Board. The custodian shall be a bank or trust company

ENR. S. B. NO. 1877 Page 77
offering pension fund master trustee and master custodial services
and any related custodial agreement or trust agreement is
incorporated herein by reference. The custodian shall be chosen by
a solicitation of proposals on a competitive basis pursuant to
standards set by the State Board. In compliance with the investment
policy guidelines of the State Board, the custodian bank or trust
company shall be contractually responsible for ensuring that all
monies of the System are invested in income-producing investment
vehicles at all times. If a custodian bank or trust company has not
received direction from the investment managers of the System as to
the investment of the monies of the System in specific investment
vehicles, the custodian bank or trust company shall be contractually
responsible to the State Board for investing the monies in
appropriately collateralized short-term interest-bearing investment
vehicles. Any assets of the System may be invested in a collective
investment fund or in a group trust that satisfies the requirements
of Rev. Rul. 81-100, as further amended by Rev. Rul. 2004-67, Rev.
Rul. 2008-40, and Rev. Rul. 2011-1, and as subsequently amended by
future guidance. Each such collective investment fund or group
trust is adopted, with respect to any monies invested therein, as
part of the System, its trust, and custodial account and each such
declaration of trust or trust agreement and related adoption,
participation, investment management, subtrust, or other agreements,
as amended from time to time, with respect to any monies invested
therein, are incorporated by reference into the System, its trust
agreement(s) or custodial agreement(s), upon approval by the State
Board.

F. By November 1, 1988, and prior to August 1 of each year
thereafter, the State Board shall develop a written investment plan
for the System.

G. After July 1 and before November 1 of each year, the State
Board shall publish widely an annual report presented in simple and
easily understood language pursuant to uniform reporting standards
prescribed by the Oklahoma State Pension Commission for all state
retirement systems. The report shall be electronically submitted to
the Governor, the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, the Oklahoma State Pension
Commission, and the members of the System utilizing the centralized
filing system provided for in Section 378 of this act. The annual
report shall cover the operation of the System during the past

ENR. S. B. NO. 1877 Page 78
fiscal year, including income, disbursements, and the financial
condition of the System at the end of the fiscal year. The annual
report shall also contain a summary of the results of the most
recent actuarial valuation to include total assets, total
liabilities, unfunded liability or over funded status, contributions
and any other information deemed relevant by the State Board. The
annual report shall be written in such a manner as to permit a
readily understandable means for analyzing the financial condition
and performances of the System for the fiscal year.

H. The State Board shall adopt a cost of living adjustment
actuarial assumption in its annual actuarial valuation report.

SECTION 39. AMENDATORY 14A O.S. 2021, Section 6-104, is
amended to read as follows:

Section 6-104. (1) In addition to other powers granted by this
title, the Administrator of Consumer Credit may, within the
limitations provided by law:

(a) receive and act on complaints, take action designed to
obtain voluntary compliance with this title, or
commence proceedings on the Administrator’s own
initiative,

(b) counsel persons and groups on their rights and duties
under this title,

(c) establish programs for the education of consumers with
respect to credit practices and problems,

(d) make studies appropriate to effectuate the purposes
and policies of this title and make the results
available to the public,

(e) with approval by the Commission on Consumer Credit
adopt, amend, and repeal substantive rules when
specifically authorized by this title, and adopt,
amend, and repeal procedural rules to carry out the
provisions of this title, all as provided by the
Administrative Procedures Act, and

ENR. S. B. NO. 1877 Page 79
(f) enforce the disclosure provisions of the Federal
Consumer Credit Protection Act as defined in Section
1-302 of this title.

(2) Except for refund of an excess charge, no liability is
imposed under this title for an act done or omitted in conformity
with a rule of the Administrator or written opinion of the
Administrator stating rights and duties issued on the
Administrator’s own motion or in response to a request under
paragraph (b) of subsection (1) of this section notwithstanding that
after the act or omission the rule or opinion may be amended or
repealed or be determined by judicial or other authority to be
invalid for any reason. The opinions of the Administrator shall be
compiled and published no less often than annually.

(3) The Administrator shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
report annually on or before January 1 to the Governor and
Legislature on the operation of the Administrator’s office, on the
use of consumer credit in the state, and on the problems of persons
of small means obtaining credit from persons regularly engaged in
extending sales or loan credit. For the purpose of making the
report, the Administrator is authorized to conduct research and make
appropriate studies. The report shall include a description of the
examination and investigation procedures and policies of the
Administrator’s office, a statement of policies followed in deciding
whether to investigate or examine the offices of credit suppliers
subject to this title, a statement of the number and percentages of
offices which are periodically investigated or examined, a statement
of the types of consumer credit problems of both creditors and
debtors which have come to the Administrator’s attention through
examinations and investigations and the disposition of them under
existing law, and a general statement of the activities of the
Administrator’s office and of others to promote the purposes of this
title. The report shall not identify the creditors against whom
action is taken by the Administrator.

(4) The Administrator may enter into cooperative, coordinating
and information-sharing agreements with any other agencies that have
supervisory or regulatory responsibility over any entity that has
been or may be licensed by the Department of Consumer Credit or any
organization affiliated with or representing one or more agencies

ENR. S. B. NO. 1877 Page 80
with supervisory or regulatory responsibility over any entity that
has been or may be licensed by the Department, and the Administrator
may accept reports of examination and reports of investigation from
any such agency or organization in lieu of conducting the
Administrator’s own examinations or investigations. The
Administrator may cooperate, coordinate, and enter into information-
sharing agreements with the Oklahoma State Banking Department and
other state agencies with whom the agreements may be mutually
beneficial.

(5) The Administrator shall have the authority to adopt rules,
not inconsistent with the provisions of this title, to limit the
amount of the additional charges that lenders are permitted to
impose under subsections (1) and (2) of Section 3-202 of this title
and Section 3-203.2 of this title, or to limit the amount of
deferral charges that sellers and lenders may impose under
subsections (2) and (3) of Section 2-204 of this title and
subsections (2) and (3) of Section 3-204 of this title. The
Administrator shall:

(a) in promulgating, amending or repealing rules pursuant
to this section, take into consideration whether
limits on the additional charges permitted under
subsections (1) and (2) of Section 3-202 of this title
and Section 3-203.2 of this title, or limits on
deferral charges that sellers and lenders may impose
under subsections (2) and (3) of Section 2-204 of this
title and subsections (2) and (3) of Section 3-204 of
this title, would:

(i) place lenders located in this state at a
competitive disadvantage, with respect to the
additional charges, as compared to out-of-state
credit card lenders or place sellers and lenders
in this state at a competitive disadvantage with
respect to the deferral charges, as compared to
out-of-state sellers and lenders,

(ii) require sellers or lenders located in this state
to impose higher finance charges, or

ENR. S. B. NO. 1877 Page 81
(iii) impede the growth of consumer credit sales or the
consumer lending industry in this state, and

(b) adopt rules limiting the dollar amounts of the
additional charges permitted under subsections (1) and
(2) of Section 3-202 of this title and Section 3-203.2
of this title, or the deferral charges permitted under
subsections (2) and (3) of Section 2-204 of this title
and subsections (2) and (3) of Section 3-204 of this
title, in the event that the Administrator determines
that such limits are necessary to protect debtors in
this state from being subjected to charges which are
unreasonable or excessive as compared to the
prevailing charges being imposed by out-of-state
lenders and sellers.

SECTION 40. AMENDATORY 14A O.S. 2021, Section 6-504, is
amended to read as follows:

Section 6-504. The Commission shall select a chair and is
hereby authorized to adopt rules for conducting its proceedings. A
majority of the voting members shall constitute a quorum for
transacting Commission business. The Commission may meet monthly on
such date as it may designate and may meet at such other times as it
may deem necessary, or when called by the chair or by any two
members. Complete minutes of each meeting shall be kept and filed
in the Department of Consumer Credit and shall be available for
public inspection during reasonable office hours. The Commission
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit a report annually to
the Governor and to the Speaker of the House of Representatives and
the President Pro Tempore of the Senate. The report shall contain a
summary of the minutes of the meetings held during the year,
legislative recommendations, a summary of violations of the Uniform
Consumer Credit Code and action taken thereon, and such other data
and information as may be deemed necessary or appropriate. Each
member of the Commission shall have unrestricted access to all
offices and records of the Department. The Commission may review,
repeal, amend or modify any rule or regulation adopted or
promulgated by the Administrator.

ENR. S. B. NO. 1877 Page 82
SECTION 41. AMENDATORY 17 O.S. 2021, Section 40.1, is
amended to read as follows:

Section 40.1. A. For the purpose of accepting, processing, and
hearing applications for oil and gas well development,
administrative applications, and for any other related matters, the
Corporation Commission shall divide the state into two regional
service areas. By September 1, 1990, the Corporation Commission
shall establish and maintain in each regional service area, a
regional service office located within the corporate limits of any
municipality having a population of more than two hundred fifty
thousand (250,000) inhabitants according to the last Federal
Decennial Census to implement their duties pursuant to law. The
State Office of the Corporation Commission located in Oklahoma City
shall serve as the regional service office for the regional service
area in which Oklahoma City is located. The regional service office
shall service the regional service area in which such office is
located or as otherwise provided by the Corporation Commission for
public convenience.

B. 1. Applications for oil and gas well development,
administrative applications and any other related matters may be
filed in any regional service office.

2. The central record of all filings with all regional service
offices shall be maintained in the State Office of the Corporation
Commission located in Oklahoma City and all initial dockets shall be
simultaneously announced in Oklahoma City and transmitted to
regional offices.

3. All hearings on any application including but not limited to
appellate hearings shall be held in the regional service office
where the application is filed unless:

a. in the case of an application protested by a
respondent mineral owner, or surface owner having
standing to protest by statute or by Rule of the
Corporation Commission, holding the hearing in the
regional service office would not be at the
convenience of such respondent mineral owner, or
surface owner, or

ENR. S. B. NO. 1877 Page 83
b. the applicant and all protestants agree to have the
Commission proceed to hear any case, or any portion
thereof, during any stage of the proceedings, at any
regional service office, or by telecommunication
hearings, or

c. the applicant, all protestants and the Commission
agree to have the Commission proceed to hear any case,
or any portion thereof, during any stage of the
proceedings, at another location other than a regional
service office.

C. 1. The Corporation Commission shall provide for an
adequately staffed regional service office in each regional service
area to conduct the business of the regional service office as
herein provided.

2. In order to implement the provisions of this subsection for
the regional service office located within the corporate limits of a
municipality having a population of more than two hundred fifty
thousand (250,000) inhabitants, the Commission shall utilize the
following positions from existing FTE for such service office:

POSITION MINIMUM

FTE

Office Administrator 1.0

Hearing Officers 2.0

Court Reporters 2.0

Docket Clerks 2.5

Secretary 1.0

3. The Corporation Commission shall maintain electronic data
equipment capable of retrieving and printing information by cause
number, applicant name, relief requested, or by county.

ENR. S. B. NO. 1877 Page 84
D. The Corporation Commission shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a report to the Speaker of the House of
Representatives and the President Pro Tempore of the Senate by
February 1 of each year detailing the number of applications filed
by county, hearings held and other activities performed by each
regional service office.

E. The Corporation Commission shall promulgate rules, pursuant
to the Administrative Procedures Act, to implement the provisions of
this section.

F. The Corporation Commission shall develop and maintain a
system for providing telephonic communication service for hearings
related to oil and gas matters in municipalities having a population
of more than eighty-five thousand (85,000) inhabitants according to
the last Federal Decennial Census. In order to implement the
provisions of this subsection, the Commission shall utilize from
existing FTE the following position for such telephonic
communication service:

POSITION FTE

Docket Clerk .5

SECTION 42. AMENDATORY 17 O.S. 2021, Section 253, is
amended to read as follows:

Section 253. A. No proposed monthly fuel adjustment, purchased
power adjustment or purchased gas adjustment shall become effective
until after the Corporation Commission has had an opportunity to
determine that the adjustment is calculated in accordance with the
terms and conditions of the applicable fuel adjustment clause.

B. The Commission shall promulgate rules requiring each company
as a necessary part of the monthly filing with the Commission and
condition to consideration of any adjustment application to submit
the following information:

1. A statement by each company subject to a fuel adjustment
clause of the items and costs making up the average cost of fuel per

ENR. S. B. NO. 1877 Page 85
million BTU and associated costs in dollars and cents or fraction
thereof;

2. A summary of its fuel and gas purchase invoices and its
computations of the proposed monthly fuel adjustment or purchased
gas adjustment charges;

3. A summary of inventory records of fuel and gas going into
and taken out of stockpile or storage;

4. A report containing the average unit price, the change in
the average unit price, the volume purchased and a brief explanation
of such unit cost increase; and

5. Any other records deemed necessary by the Commission
including, but not limited to, the heat rate efficiency and delivery
efficiency for affected electric public utilities and the actual
capacity factor for each generating facility utilized to produce
electric power.

The records and computations filed shall be open to public
inspection at the office of the Commission.

C. The Commission shall have five (5) business days after the
records and computations prescribed in subsection B of this section
have been filed to determine the necessity of an administrative
proceeding thereon. If the Commission does not determine that a
hearing is required, the proposed adjustment charge shall become
effective as filed. In the event the Commission decides to hold a
hearing on the information filed, it shall notify the public utility
within such five-day period, set the matter for a public hearing to
commence within thirty (30) business days thereafter, and give
notice thereof at least three (3) days prior to the commencement of
such hearing by publication in a newspaper of general circulation in
the area served by such company. The issue to be determined at such
hearing shall be either or both of the following determinations:

1. Whether charges or credits made under the fuel adjustment
clauses are based upon the actual prices paid for fuel, purchased
gas, or purchased power and are properly computed in accordance with
the applicable adjustment clause; or

ENR. S. B. NO. 1877 Page 86
2. Whether the fuel adjustment clauses should be discontinued,
amended, or suspended. In the event that the Commission determines
that it is necessary to set any proposed adjustment charge for
hearing, the proposed charge shall nevertheless become effective at
the option of the utility following the expiration of the five-day
period after its records and computations have been filed, pending
the Commission’s finding with respect to such charges. However, in
the discretion of the Commission, the effectiveness of the proposed
charge may be conditioned upon the filing by the utility with the
Commission of an assurance satisfactory to the Commission, which may
include a bond with surety, of the utility’s ability and willingness
to refund to its customers any such amounts as the utility may
collect from them in excess of the charge approved by the Commission
in its finding. If the Commission has not approved, in whole or in
part, or denied the proposed charge within a seven-day period
subsequent to the commencement of such hearing, the Commission shall
promptly, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit a written explanation
of the Commission’s failure to do so to the President Pro Tempore of
the Senate, the Speaker of the House of Representatives, and the
office of the Governor.

SECTION 43. AMENDATORY 17 O.S. 2021, Section 325, is
amended to read as follows:

Section 325. A. The Director of the Petroleum Storage Tank
Division shall make a written report and, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit such report on an annual basis to the
Corporation Commissioners, the Storage Tank Advisory Council, the
Speaker of the House of Representatives, and the President Pro
Tempore of the Senate detailing the following:

1. The total number of storage tank applicants requesting
disbursement from the Indemnity Fund during the preceding year;

2. The total number of storage tank applicants receiving
payment during the preceding year and total amount disbursed for
such payments;

3. The average time frame for providing disbursements to
applicants;

ENR. S. B. NO. 1877 Page 87

4. The total amount of funds needed to complete the corrective
action and achieve closure of all release cases; and

5. Any other information requested by the Speaker of the House
of Representatives or the President Pro Tempore of the Senate
regarding the Indemnity Fund program.

B. The Oklahoma Tax Commission shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit an annual report to the Speaker of the House
of Representatives and the President Pro Tempore of the Senate
detailing the amount of assessments collected for deposit to the
Indemnity Fund and to the State Transportation Fund.

C. The Oklahoma Department of Transportation shall, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit an annual report to the Speaker of the
House of Representatives and the President Pro Tempore of the Senate
detailing the expenditures made from the revenue received from the
assessment levied pursuant to Section 327.1 of this title.

D. The Oklahoma Department of Environmental Quality shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit an annual report to the Speaker
of the House of Representatives and the President Pro Tempore of the
Senate detailing the expenditures made from the revenue received
from the assessment levied pursuant to Section 327.1 of this title.

E. By December 1, 1998, and every year thereafter, the State
Auditor and Inspector shall conduct an independent audit of the
books, records, files, and other such documents of the Corporation
Commission pertaining to and which relate to the administration of
the Petroleum Storage Tank Indemnity Fund. The audit shall include
but shall not be limited to a review of agency compliance with state
statutes regarding the Indemnity Fund, internal control procedures,
adequacy of claim process expenditures from and debits of the
Indemnity Fund regarding administration, personnel, operating and
other expenses charged by the Corporation Commission; the duties
performed in detail by agency personnel and Indemnity Fund personnel
for which payment is made from the Indemnity Fund, and
recommendations for improving claim processing, equipment needed for

ENR. S. B. NO. 1877 Page 88
claim processing, internal control or structure for administering
the Indemnity Fund; and such other areas deemed necessary by the
State Auditor and Inspector.

F. The cost of the audit shall be borne by the Indemnity Fund.

G. Copies of the audit shall be electronically submitted to the
State Auditor and Inspector, the Governor, the Speaker of the House
of Representatives, the President Pro Tempore of the Senate, and the
Chairs of the Appropriation Committees of both the Oklahoma House of
Representatives and the Oklahoma State Senate utilizing the
centralized filing system provided for in Section 378 of this act.

SECTION 44. AMENDATORY Section 1, Chapter 403, O.S.L.
2022 (17 O.S. Supp. 2025, Section 801.9), is amended to read as
follows:

Section 801.9. A. The State of Oklahoma shall set a hydrogen
fuel production standard that will serve as an annual goal to be
reached each year through 2028 to increase the production of
hydrogen fuel in the state. Such hydrogen fuel production standard
shall be to produce Two Million Metric Tons (2 MMT) of hydrogen fuel
using a low or zero carbon source of energy annually by 2028.

B. Every qualified hydrogen fuel production facility that
produces hydrogen fuel in this state shall report to the Corporation
Commission by March 1 each year the amount of hydrogen fuel produced
in the preceding calendar year and the low or zero carbon source of
energy used to produce the hydrogen fuel. The Commission shall
begin collecting the reports no later than March 1, 2024, and shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically report annually to the President Pro
Tempore of the Senate, the Speaker of the House of Representatives,
and the Governor the annual hydrogen fuel production amount produced
by qualified hydrogen production facilities for the preceding
calendar year, gathered from reports submitted pursuant to this
subsection, no later than May 1 of the first year of collection and
each year thereafter. The Commission shall promulgate rules to
effectuate the provisions of this subsection.

C. For purposes of this section, qualifying hydrogen fuel
production shall include:

ENR. S. B. NO. 1877 Page 89

1. Hydrogen fuel produced from low carbon sources such as
natural gas;

2. Hydrogen fuel produced from zero carbon sources such as:

a. wind,

b. photovoltaic,

c. hydropower,

d. geothermal, and

e. biomass, which projects may include agricultural
crops, wastes, and residues, wood, animal, and other
degradable organic wastes, municipal solid waste, and
landfill gas; and

3. Other low or zero carbon sources approved by the Commission.

SECTION 45. AMENDATORY 17 O.S. 2021, Section 802.3, as
last amended by Section 2, Chapter 31, O.S.L. 2024 (17 O.S. Supp.
2025, Section 802.3), is amended to read as follows:

Section 802.3. A. The Oklahoma Low Carbon Energy Initiative
shall be administered and governed by the Oklahoma Low Carbon Energy
Initiative Board, made up of representatives of the contributing
institutions and entities of the Initiative which shall include but
not be limited to the University of Oklahoma, Oklahoma State
University, and the University of Tulsa. Additional contributing
members may be added at the discretion of the Board, if they
contribute to the purpose, objectives, and research coordinated by
the Initiative.

B. The Board shall consist of thirteen (13) members as follows:

1. One member, who shall serve as the chair of the Board, shall
be the Secretary of Energy and Environment or a member otherwise
appointed by the Governor;

ENR. S. B. NO. 1877 Page 90
2. One member shall be the Vice President for Research from the
University of Oklahoma or a member otherwise appointed by the
President of the University of Oklahoma;

3. One member shall be the Vice President for Research from
Oklahoma State University or a member otherwise appointed by the
President of Oklahoma State University;

4. One member shall be the Vice President for Research and
Economic Development from the University of Tulsa or a member
otherwise appointed by the President of the University of Tulsa;

5. One member who shall represent the Oklahoma Department of
Commerce, appointed by the Director of the Department of Commerce;

6. One member who shall represent the Department of Labor,
appointed by the Commissioner of Labor;

7. One member who shall represent the Department of
Environmental Quality, appointed by the Executive Director of the
Department of Environmental Quality;

8. One member who shall represent the Corporation Commission,
appointed by the Chair of the Commission;

9. One member who shall represent the Department of
Transportation, appointed by the Director of the Department of
Transportation;

10. One member who shall represent the Oklahoma Water Resources
Board, appointed by the Executive Director of the Oklahoma Water
Resources Board;

11. One member who shall represent the Oklahoma Center for the
Advancement of Science and Technology, appointed by the Executive
Director of the Center for the Advancement of Science and
Technology;

12. One member, who shall represent an electric utility or
cooperative regulated by the Corporation Commission, appointed by
the President Pro Tempore of the Senate; and

ENR. S. B. NO. 1877 Page 91
13. One member, who shall represent the nuclear energy
industry, appointed by the Speaker of the House of Representatives.

C. 1. The Board shall establish an Energy Industry Advisory
Council, appointed by the chair, for the purposes of providing
industry expertise and knowledge, assisting the Board with annual
report requirements, providing general recommendations, and other
support as needed to advance the efforts of the Board.

2. Members appointed to the Council shall serve at the pleasure
of the chair of the Board.

D. Board members shall serve for a term of four (4) years,
which shall begin on January 1 of the first year of the appointment
and end on December 31 of the fourth year. There shall be no limit
to the number of consecutive terms served. If a vacancy should
occur during a member’s term, the appointing authority for the
vacant position shall appoint a new member to fill the remainder of
the unexpired term. Board members shall serve without compensation
but may be eligible for necessary travel expenses pursuant to the
State Travel Reimbursement Act.

E. The Board shall be responsible for establishing procedures
for the Initiative and operations of the Board and the Advisory
Council. The rules may provide for protection from public
disclosure of trade secrets and proprietary information of any kind
including, but not limited to, data, processes, and technology, as
the Board determines necessary.

F. The Board shall undertake activities and commission
programs, through the contributing institutions and entities, to
achieve the purpose and satisfy the objectives of the Initiative as
provided in the Oklahoma Energy Initiative Act. The Board shall
have authority to distribute funding for such activities and
programs. The Board may employ staff as it deems necessary.

G. The Board, in consultation with the Advisory Council and any
other party deemed necessary, shall submit and publish
electronically an annual, written report to summarize the annual
progress of the Initiative including summaries of its programs and
their progress and outcomes. The report shall be made available to
the public and shall be distributed electronically to the Governor,

ENR. S. B. NO. 1877 Page 92
the President Pro Tempore of the Senate, and the Speaker of the
House of Representatives utilizing the centralized filing system
provided for in Section 378 of this act.

H. The provisions of the Oklahoma Central Purchasing Act shall
not apply to any project, activity or contract of the Initiative or
the Board.

I. No Board member or any person acting on behalf of the Board,
Advisory Council, or Initiative executing any contracts, commitments
or agreements issued by or on behalf of the Oklahoma Low Carbon
Energy Initiative shall be personally liable for the contracts,
commitments, or agreements or be subject to any personal liability
or accountability by reason thereof. No director or any person
acting on behalf of the Board or Initiative shall be personally
liable for damage or injury resulting from the performance of duties
hereunder.

SECTION 46. AMENDATORY 19 O.S. 2021, Section 215.28, is
amended to read as follows:

Section 215.28. A. There is hereby created the District
Attorneys Council which shall be organized and administered as
herein provided. Any reference in the Oklahoma Statutes to the
District Attorneys Training Coordination Council shall mean the
District Attorneys Council.

B. The chief executive officer of the office of the Council is
the Executive Coordinator who shall be appointed and supervised by
the Council. The Executive Coordinator shall serve at the pleasure
of the Council. The Executive Coordinator shall be licensed to
practice law in Oklahoma and shall have been a district attorney or
assistant district attorney or have held an equivalent position in
state or federal government for at least three (3) years prior to
appointment. The Executive Coordinator may appoint an Assistant
Coordinator, both of whom shall be in the unclassified service of
the state. The Executive Coordinator and the Assistant Coordinator,
who shall also be licensed to practice law in Oklahoma, shall devote
full time to their duties and shall not engage in the private
practice of law. The Executive Coordinator shall perform the
functions and duties as may be assigned by the Council. The
Executive Coordinator shall be named the project director and fiscal

ENR. S. B. NO. 1877 Page 93
officer of any grant or fund received by the Council. The Executive
Coordinator and the Assistant Coordinator shall receive compensation
for their services within the pay scale limits for district
attorneys.

C. 1. The Council shall be composed of the following members:

a. the Attorney General, or a designated representative
of the Attorney General,

b. the President of the Oklahoma District Attorneys
Association,

c. the President-elect of the Oklahoma District Attorneys
Association,

d. one district attorney selected by the Court of
Criminal Appeals for a three-year term, and

e. one district attorney selected by the Board of
Governors of the Oklahoma Bar Association for a three-
year term.

2. A member of the Council shall vacate the appointment upon
termination of the member’s official position as Attorney General or
district attorney. A vacancy shall be filled in the same manner as
the original appointment. A member appointed to fill a vacancy
created other than by expiration of a term shall be appointed for
the unexpired term of the member whom the appointed member is to
succeed in the same manner as the original appointment. Any member
may serve more than one term.

D. The Council shall designate from among its members a
Chairman and Vice Chairman who shall serve for one-year terms and
who may be reelected. Membership on the Council shall not
constitute holding a public office. The Council shall not have the
right to exercise any portion of the sovereign power of the state.
A member of the Council shall not be disqualified from holding any
public office or employment by reason of appointment or membership
on the Council, nor shall the member forfeit the office or
employment, by reason of appointment to the Council.

ENR. S. B. NO. 1877 Page 94
E. The Council shall meet at least four times in each year and
shall hold special meetings when called by the Chairman, or, in the
absence of the Chairman, by the Vice Chairman or when called by the
Chairman upon the written request of two members of the Council.
The Council shall establish its own procedures and requirements with
respect to quorum, place and conduct of its meetings and other
matters.

F. The members of the Council shall not receive a salary for
duties performed as members of the Council but shall be entitled to
be reimbursed for their travel expenses in accordance with the State
Travel Reimbursement Act.

G. The Council shall make, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit an annual report to the Governor, the President Pro Tempore
of the Senate, the Speaker of the House of Representatives, and the
President of the Oklahoma District Attorneys Association regarding
its efforts to implement the purposes of this section.

H. The Council shall have the power to perform such functions
as in its opinion shall strengthen the criminal justice system in
Oklahoma, to provide a professional organization for the education,
training and coordination of technical efforts of all state
prosecutors and to maintain and improve prosecutor efficiency and
effectiveness in enforcing the laws of this state including, but not
limited to, the following:

1. Organize, supervise, and perform functions consistent with
this section;

2. Convene regional or statewide conferences and training
seminars for the purpose of implementing the provisions of this
section;

3. Accept and expend monies, gifts, grants, or services from
any public or private source; contract or enter into agreements with
educational institutions or state or federal agencies; and employ
personnel as the Council in its judgment finds necessary to
effectively carry out the provisions of this section. Such
employees shall be in the unclassified service of the state;

ENR. S. B. NO. 1877 Page 95
4. Serve in an advisory capacity to the district attorneys of
the state;

5. Provide and coordinate training and continuing legal
education for district attorneys and their assistants, including
participation in nationally recognized prosecutorial seminars
conducted in other states. Subject to available funding, curriculum
for training required under this paragraph shall include, but not be
limited to:

a. dynamics of domestic violence,

b. the impact of domestic violence on victims and their
children including victim trauma and the neurobiology
of trauma,

c. identifying dominant aggressor,

d. tactics and behavior of batterers,

e. victim protection orders and full faith and credit
under the Violence Against Women Act of 1994,

f. rights of victims, and

g. evidence-based practices regarding behavioral health
and treatment of those with substance abuse or mental
health needs;

6. Gather and disseminate information to district attorneys
relative to their official duties, including changes in the law
relative to their office;

7. Coordinate with law enforcement officers, the courts and
corrections workers providing interdisciplinary seminars to augment
the effectiveness of the criminal justice system;

8. Require statistical reports from district attorneys’ offices
relating to functions and workload performance;

9. Recommend additional legislation necessary to upgrade the
Oklahoma District Attorneys System to professional status;

ENR. S. B. NO. 1877 Page 96

10. Establish an equitable distribution plan for allocation of
any funds or gifts received from public or private sources for state
prosecution and distribute such funds in accordance with such plan;
and

11. Appoint a larger Advisory Council made up of district
attorneys and assistant district attorneys to discuss problems and
hear recommendations concerning necessary research, minimum
standards, educational needs, and other matters imperative to
upgrading Oklahoma prosecution to professional status.

I. There is hereby created in the State Treasury a revolving
fund for the Council, to be designated the “District Attorneys
Council Revolving Fund”. The fund shall consist of all monies
received by the Council other than appropriated funds. The
revolving fund shall be a continuing fund not subject to fiscal year
limitations and shall be under the control and management of the
Council. Expenditures from this fund shall be made pursuant to the
purposes of this act and without legislative appropriation.
Warrants for expenditures shall be drawn by the State Treasurer
based on claims signed by the authorized employee or employees of
the Council and approved for payment by the Director of the Office
of Management and Enterprise Services.

J. The Council may accept operation and supervision of the Law
Enforcement Assistance Administration grants presently being
administered by the Oklahoma District Attorneys Association.

SECTION 47. AMENDATORY 20 O.S. 2021, Section 3.3, is
amended to read as follows:

Section 3.3. A. The Board on Judicial Compensation shall meet
on the third Tuesday of September in every odd-numbered year in the
Administrative Office of the Courts, at which meeting the Board
shall review the compensation paid to members of the State Judiciary
and, if necessary, change the compensation. In its review, the
Board shall consider various factors, including judicial
compensation in other states, with an emphasis on states within the
region, the value of comparable services performed in the private
sector, compensation of attorneys in the private and public sectors,
compensation of other state, county and municipal public officials,

ENR. S. B. NO. 1877 Page 97
and changes in the cost of living. The Board may, at the call of
the chair or upon a majority vote of its membership, hold such
additional meetings as are necessary to carry out its official
duties. Any change in judicial compensation shall be made by the
Board not later than the third Tuesday of November in the odd-
numbered year. Four members of the Board shall constitute a quorum
and a majority vote of the quorum shall be necessary for the Board
to act. If the Board recommends a change in judicial compensation,
notice of such recommendation shall be provided electronically to
the Governor, the President Pro Tempore and the Chair of the
Appropriations Committee of the Senate, and the Speaker and the
Chair of the Appropriations and Budget Committee of the House of
Representatives utilizing the centralized filing system provided for
in Section 378 of this act.

B. Any change in judicial compensation, unless rejected or
amended as provided for in Section 3.2 of this title, shall become
effective on July 1 of the following calendar year. Any amendment
passed by a majority vote of each house of the Legislature shall
become effective as provided by the amendment unless vetoed by the
Governor.

SECTION 48. AMENDATORY 20 O.S. 2021, Section 1103.1, is
amended to read as follows:

Section 1103.1. A. On and after January 1, 2001, the
Administrative Director of the Courts, in addition to the members’
contributions, shall transfer monthly amounts for deposit in the
State Judicial Retirement Fund as set out in Section 1309 of this
title equal to two percent (2.0%) of the monthly total actual paid
gross salaries of the members of the Uniform Retirement System for
Justices and Judges. Effective July 1, 2005, such amounts
transferred by the Administrative Director of the Courts shall be as
follows:

Fiscal Year Ending Percentage of Contribution

June 30, 2006 3.0%

June 30, 2007 4.0%

June 30, 2008 5.5%

ENR. S. B. NO. 1877 Page 98

June 30, 2009 7.0%

June 30, 2010 8.5%

June 30, 2011 10.0%

June 30, 2012 11.5%

June 30, 2013 13.0%

June 30, 2014 14.5%

June 30, 2015 16.0%

June 30, 2016 17.5%

June 30, 2017 19.0%

June 30, 2018 20.5%

June 30, 2019 and thereafter 22.0%

B. The State Judicial Retirement Fund should have a funded
ratio at or near ninety percent (90%) or be receiving sufficient
contributions to amortize any unfunded liability of the fund
according to the amortization schedule adopted by the Board of
Trustees of the Oklahoma Public Employees Retirement System. The
Board of Trustees shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically provide a
copy of the annual actuarial report to the Governor, the Chief
Justice of the Supreme Court, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate. In
addition to this report, the Board shall provide a letter setting
forth the amount of the actuarially required contributions for the
System and any other recommendations that the Board may deem
necessary.

C. The Administrative Director of the Courts shall remit to the
System all statutorily required retirement contributions due on a
monthly basis. All required court and employee contributions and
supporting documentation are due and must shall be received by the

ENR. S. B. NO. 1877 Page 99
System on or before the fifteenth day of the month following the
month for which the contributions are due. Court and employee
contributions remitted to the System after thirty (30) days from the
above due date shall be subject to a monthly late charge of one and
one-half percent (1.5%) of the unpaid balance to be paid by the
Administrative Director of the Courts to the System.

SECTION 49. AMENDATORY 20 O.S. 2021, Section 1108, is
amended to read as follows:

Section 1108. A. The Board of Trustees of the Oklahoma Public
Employees Retirement System shall have the responsibility for
management of the Uniform Retirement System for Justices and Judges
and the State Judicial Retirement Fund. All benefits payable under
The Uniform Retirement System for Justices and Judges, refunds of
contributions and overpayments, purchases or investments under the
law, and all expenses in connection with the System shall be paid
from the Oklahoma Judicial Retirement Fund. The State Judicial
Retirement Fund shall be invested and managed in the same manner as
now or hereinafter provided by law for the investment and management
of funds belonging to the Oklahoma Public Employees Retirement
System. The Uniform Retirement System for Justices and Judges shall
be an instrumentality of the State of Oklahoma. The System shall be
vested with the powers and duties specified in this act and such
other powers as may be necessary to enable it, its officers,
employees, and agents to carry out fully and effectively the
purposes and intent of this act.

1. The Board shall distribute the corpus and income of the
System to the members and their beneficiaries in accordance with the
System’s law. At no time prior to the satisfaction of all
liabilities with respect to members and their beneficiaries shall
any part of the corpus and income be used for, or diverted to,
purposes other than the exclusive benefit of the members and their
beneficiaries.

2. The Board may not engage in a transaction prohibited by
Section 503(b) of the federal Internal Revenue Code.

3. The Board shall be responsible for the policies and rules
for the general administration of the System, subject to the
provisions of this act. Except as specifically provided in this

ENR. S. B. NO. 1877 Page 100
act, the Uniform Retirement System for Justices and Judges shall
generally be managed in the same manner as now or hereinafter
provided by law or by rule for the management of the Oklahoma Public
Employees Retirement System.

4. The Board shall establish rules for the administration of
the System and for the transaction of its business consistent with
law, which rules shall be promulgated in compliance with the
Administrative Procedures Act.

5. The Board may adopt all necessary actuarial tables to be
used in the operation of the System as recommended by the actuary
and may compile such additional data as may be necessary for
required actuarial valuation calculations.

6. All decisions of the Board as to questions of fact shall be
final and conclusive on all persons except for the right of review
as provided by law and except for fraud or such gross mistake of
fact as to have effect equivalent to fraud.

7. Any person who shall knowingly make any false statement, or
who shall falsify or permit to be falsified any record necessary for
carrying out the intent of this act for the purpose of committing
fraud, shall be guilty of a misdemeanor, and upon conviction shall
be punished by a fine not exceeding Five Hundred Dollars ($500.00)
or by imprisonment for not exceeding one (1) year. Should any error
in any records of the Uniform Retirement System for Justices and
Judges result in any member or beneficiary receiving more or less
than he or she would have been entitled to receive had the records
been correct, the Board shall correct such error, and, as far as
practicable, make future payments in such manner that the actuarial
equivalent of the benefit to which such member or beneficiary was
entitled shall be paid, and to this end, may recover any
overpayments.

B. The Board of Trustees of the Oklahoma Public Employees
Retirement System shall compile a quarterly financial report of all
the funds of the State Judicial Retirement Fund on a fiscal year
basis. The report shall be compiled pursuant to uniform reporting
standards prescribed by the Oklahoma State Pension Commission for
all state retirement systems. The report shall include several
relevant measures of investment value, including acquisition cost

ENR. S. B. NO. 1877 Page 101
and current fair market value with appropriate summaries of total
holdings and returns. The report shall contain combined and
individual rate of returns of the investment managers by category of
investment, over periods of time. The Board of Trustees shall
include in the quarterly reports all commissions, fees or payments
for investment services performed on behalf of the Board of Trustees
with respect to the State Judicial Retirement Fund. The report
shall be electronically distributed to the Governor, the Oklahoma
State Pension Commission, the Legislative Service Bureau, the
Speaker of the House of Representatives, and the President Pro
Tempore of the Senate utilizing the centralized filing system
provided for in Section 378 of this act. In lieu of compiling and
distributing the quarterly report, the Board may provide the Pension
Commission with direct access to the same data from the custodian
bank for the System.

C. There is hereby created the Retirement Medical Benefit Fund.
The fund shall be maintained as a subaccount of the State Judicial
Retirement Fund. The Retirement Medical Benefit Fund is composed of
all assets which may be contributed to this subaccount to pay the
retirement system’s portion of the monthly retiree health insurance
premium benefit described by Section 1316.2 of Title 74 of the
Oklahoma Statutes. All such allocated assets and any earnings
thereon in the Retirement Medical Benefit Fund shall be held for the
exclusive purpose of providing retiree medical benefits. The
Retirement Medical Benefit Fund is to be administered in accordance
with the requirements of Section 401(h) of the Internal Revenue Code
of 1986, as amended from time to time. The Board of Trustees may
promulgate such rules as are necessary to implement the funding and
administration of the fund pursuant to the provisions of this
subsection.

D. After July 1 and before December 1 of each year, the Board
of Trustees of the Oklahoma Public Employees Retirement System shall
publish widely an annual report presented in simple and easily
understood language pursuant to uniform reporting standards
prescribed by the Oklahoma State Pension Commission for all state
retirement systems. The report shall be electronically submitted to
the Governor, the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, the Oklahoma State Pension
Commission, and the members of the System utilizing the centralized
filing system provided for in Section 378 of this act. The annual

ENR. S. B. NO. 1877 Page 102
report shall cover the operation of the System during the past
fiscal year, including income, disbursements, and the financial
condition of the System at the end of the fiscal year. The annual
report shall also contain the information issued in the quarterly
reports required pursuant to subsection B of this section as well as
a summary of the results of the most recent actuarial valuation to
include total assets, total liabilities, unfunded liability or
overfunded status, contributions and any other information deemed
relevant by the Board of Trustees. The annual report shall be
written in such a manner as to permit a readily understandable means
for analyzing the financial condition and performance of the System
for the fiscal year.

E. The Board shall adopt a cost of living adjustment actuarial
assumption in its annual actuarial valuation report.

SECTION 50. AMENDATORY 20 O.S. 2021, Section 1225, is
amended to read as follows:

Section 1225. The State Auditor and Inspector shall enforce all
of the provisions of this act and, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
report any violations thereof to the Chief Justice, the President
Pro Tempore of the Senate, and the Speaker of the House.

SECTION 51. AMENDATORY 20 O.S. 2021, Section 1656, is
amended to read as follows:

Section 1656. A. The members of the Council on Judicial
Complaints shall qualify by taking the constitutional oath of
office.

B. The Council shall elect a chair and vice-chair. The chair
and vice-chair shall serve for terms of office set by the Council,
not to exceed their terms as members of the Council.

C. The Council shall adopt rules pursuant to the Administrative
Procedures Act.

D. The Council shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically provide to
the President Pro Tempore of the Senate and the Speaker of the House

ENR. S. B. NO. 1877 Page 103
of Representatives quarterly reports of the number of judicial
complaints filed, dismissed, and referred for further disciplinary
action.

SECTION 52. AMENDATORY 21 O.S. 2021, Section 142.15, is
amended to read as follows:

Section 142.15. The Board shall prepare and, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically transmit annually to the Governor and the Speaker of
the House of Representatives and the President Pro Tempore of the
Senate, a report of its activities, including the amount of
compensation awarded and a statistical summary of claims and awards
made and denied.

SECTION 53. AMENDATORY 21 O.S. 2021, Section 1290.16, is
amended to read as follows:

Section 1290.16.

STATISTICAL REPORT

By January 15, 1997, and by January 15 of each year thereafter,
the Bureau shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit a statistical
report for the preceding calendar year to the Governor, the
President Pro Tempore of the Senate, and the Speaker of the House of
Representatives, including, but not limited to, data on the numbers
of handgun licenses approved and issued and the numbers of licenses
suspended, revoked or denied in the following categories: age, sex,
race, county, and any other category deemed relevant by the Bureau.

SECTION 54. AMENDATORY 22 O.S. 2021, Section 34.5, is
amended to read as follows:

Section 34.5. A. The Attorney General’s Office of Civil Rights
Enforcement shall promulgate rules establishing procedures for
filing a racial profiling complaint with the Attorney General’s
Office of Civil Rights Enforcement and the district attorney and the
process for delivering a copy of the complaint by the Attorney
General to the employing agency. The Attorney General’s Office of
Civil Rights Enforcement, in consultation with the Governor’s

ENR. S. B. NO. 1877 Page 104
Cabinet Secretary for Safety and Security, shall promulgate forms
for complaints of racial profiling.

B. The Attorney General shall compile an annual report of all
complaints received for racial profiling and, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit the report on or before January 31 of each
year to the Governor, the President Pro Tempore of the Senate, and
the Speaker of the House of Representatives; provided, the names of
the complainants shall be redacted and shall not be forwarded with
the report.

SECTION 55. AMENDATORY 22 O.S. 2021, Section 116, is
amended to read as follows:

Section 116. A. District attorneys shall prepare and submit an
annual report to the District Attorneys Council showing total
deposits and total expenditures in the Bogus Check Restitution
Program.

B. By September 15 of each year, the District Attorneys Council
shall publish an annual report for the previous fiscal year of the
Bogus Check Restitution Program. A copy of the report shall be
electronically distributed to the President Pro Tempore of the
Senate and, the Speaker of the Oklahoma House of Representatives,
and the chairmen of the House and Senate Appropriations Committees
utilizing the centralized filing system provided for in Section 378
of this act. Each district attorney shall submit information
requested by the District Attorneys Council regarding the Bogus
Check Restitution Program. This report shall include the number of
checks processed and the total dollar amount of such checks, the
number of checks for which some restitution was made and the total
amount of the restitution, the total amount of fees collected, the
total cost of the program, and such other information as required by
the District Attorneys Council. The report shall provide totals by
county and district.

SECTION 56. AMENDATORY 22 O.S. 2021, Section 988.15, as
amended by Section 1, Chapter 14, O.S.L. 2023 (22 O.S. Supp. 2025,
Section 988.15), is amended to read as follows:

ENR. S. B. NO. 1877 Page 105
Section 988.15. The Community Sentencing Division within the
Department of Corrections shall have the duty to:

1. Administer a statewide community sentencing system pursuant
to the provisions of the Oklahoma Community Sentencing Act and other
provisions of law;

2. Establish goals and standards for the statewide community
sentencing system and the local community sentencing systems;

3. Promulgate rules pursuant to the Administrative Procedures
Act for the implementation and operation of the Oklahoma Community
Sentencing Act;

4. Provide technical assistance and administrative support to
each local community sentencing system. The technical assistance
shall include, but not be limited to, information on:

a. corrections system design,

b. administration,

c. development, monitoring, and evaluating of programs
and services,

d. program identification and specifications,

e. offender risk management,

f. supervision of offenders,

g. planning and budgeting,

h. grant applications, and

i. preparation and submission of documents, data,
budgets, and system plans;

5. Coordinate and collaborate with other state agencies for
services and technical assistance to each local community sentencing
system;

ENR. S. B. NO. 1877 Page 106
6. Apply for and accept money and other assets to be utilized
for support of a statewide community sentencing system and to
allocate and disburse appropriated funds to local community
sentencing systems through an appropriate funding method;

7. Review, analyze and fund local system plans within budgetary
limitations;

8. Contract with local service providers and state agencies for
services to the local system;

9. Identify and solicit other funding sources and resources to
support the statewide community sentencing system;

10. Request post-audits of state funds;

11. Monitor and coordinate local systems;

12. Provide performance-based evaluations for all service
providers of the statewide system;

13. Report Utilizing the centralized filing system provided for
in Section 378 of this act, electronically submit a report annually
by January 15 to the Legislature and Governor on the statewide
system. The report shall provide an evaluation of the effectiveness
of the Oklahoma Community Sentencing Act in terms of public safety,
appropriate range of community punishments, cost-effectiveness,
performance-based effectiveness in reducing recidivism, utilization
by the judiciary, resource allocation, reduced state and local
institutional receptions, if any, and statistical data, including,
but not limited to, community sentencing participation by county,
total number of qualifying and nonqualifying community sentences per
month for each local community sentencing system, total number of
community sentences ordered per month, program participation and the
annual average cost per offender. A copy of the report shall also
be submitted to the Oklahoma Statistical Analysis Center, a unit of
the Oklahoma State Bureau of Investigation, which shall publish the
annual report on the website of the Bureau; and

14. Disseminate information to local administrators and
community sentencing systems concerning corrections issues
including, but not limited to:

ENR. S. B. NO. 1877 Page 107

a. punishment options,

b. disciplinary sanctions,

c. resource allocation,

d. administration,

e. legal issues,

f. supervision and risk management,

g. treatment methodology and services,

h. education and vocational services,

i. service and program monitoring and evaluation methods,

j. grants and funding assistance,

k. data and record keeping, and

l. offender characteristics.

SECTION 57. AMENDATORY 22 O.S. 2021, Section 991a, as
last amended by Section 1, Chapter 306, O.S.L. 2025 (22 O.S. Supp.
2025, Section 991a), is amended to read as follows:

Section 991a. A. Except as otherwise provided in the Elderly
and Incapacitated Victim’s Protection Program, when a defendant is
convicted of a crime and no death sentence is imposed, the court
shall either:

1. Suspend the execution of sentence in whole or in part, with
or without probation. The court, in addition, may order the
convicted defendant at the time of sentencing or at any time during
the suspended sentence to do one or more of the following:

a. to provide restitution to the victim as provided by
Section 991f et seq. of this title or according to a
schedule of payments established by the sentencing

ENR. S. B. NO. 1877 Page 108
court, together with interest upon any pecuniary sum
at the rate of twelve percent (12%) per annum, if the
defendant agrees to pay such restitution or, in the
opinion of the court, if the defendant is able to pay
such restitution without imposing manifest hardship on
the defendant or the immediate family and if the
extent of the damage to the victim is determinable
with reasonable certainty,

b. to reimburse any state agency for amounts paid by the
state agency for hospital and medical expenses
incurred by the victim or victims, as a result of the
criminal act for which such person was convicted,
which reimbursement shall be made directly to the
state agency, with interest accruing thereon at the
rate of twelve percent (12%) per annum,

c. to engage in a term of community service without
compensation, according to a schedule consistent with
the employment and family responsibilities of the
person convicted,

d. to pay a reasonable sum into any trust fund
established pursuant to the provisions of Sections 176
through 180.4 of Title 60 of the Oklahoma Statutes and
which provides restitution payments by convicted
defendants to victims of crimes committed within this
state wherein such victim has incurred a financial
loss,

e. to confinement in the county jail for a period not to
exceed six (6) months,

f. to confinement as provided by law together with a term
of post-imprisonment community supervision for not
less than three (3) years of the total term allowed by
law for imprisonment, with or without restitution;
provided, however, the authority of this provision is
limited to Section 843.5 of Title 21 of the Oklahoma
Statutes when the offense involved sexual abuse or
sexual exploitation; Sections 681, 741 and 843.1 of
Title 21 of the Oklahoma Statutes when the offense

ENR. S. B. NO. 1877 Page 109
involved sexual abuse or sexual exploitation; and
Sections 865 et seq., 885, 886, 888, 891, 1021,
1021.2, 1021.3, 1040.13a, 1087, 1088, 1111.1, 1115 and
1123 of Title 21 of the Oklahoma Statutes,

g. to repay the reward or part of the reward paid by a
local certified crime stoppers program and the
Oklahoma Reward System. In determining whether the
defendant shall repay the reward or part of the
reward, the court shall consider the ability of the
defendant to make the payment, the financial hardship
on the defendant to make the required payment and the
importance of the information to the prosecution of
the defendant as provided by the arresting officer or
the district attorney with due regard for the
confidentiality of the records of the local certified
crime stoppers program and the Oklahoma Reward System.
The court shall assess this repayment against the
defendant as a cost of prosecution. The term
“certified” means crime stoppers organizations that
annually meet the certification standards for crime
stoppers programs established by the Oklahoma Crime
Stoppers Association to the extent those standards do
not conflict with state statutes. The term “court”
refers to all municipal and district courts within
this state. The “Oklahoma Reward System” means the
reward program established by Section 150.18 of Title
74 of the Oklahoma Statutes,

h. to reimburse the Oklahoma State Bureau of
Investigation for costs incurred by that agency during
its investigation of the crime for which the defendant
pleaded guilty, nolo contendere or was convicted
including compensation for laboratory, technical or
investigation services performed by the Bureau if, in
the opinion of the court, the defendant is able to pay
without imposing manifest hardship on the defendant,
and if the costs incurred by the Bureau during the
investigation of the defendant’s case may be
determined with reasonable certainty,

ENR. S. B. NO. 1877 Page 110
i. to reimburse the Oklahoma State Bureau of
Investigation and any authorized law enforcement
agency for all costs incurred by that agency for
cleaning up an illegal drug laboratory site for which
the defendant pleaded guilty, nolo contendere or was
convicted. The court clerk shall collect the amount
and may retain five percent (5%) of such monies to be
deposited in the Court Clerk’s Revolving Fund to cover
administrative costs and shall remit the remainder to
the Oklahoma State Bureau of Investigation to be
deposited in the OSBI Revolving Fund established by
Section 150.19a of Title 74 of the Oklahoma Statutes
or to the general fund wherein the other law
enforcement agency is located,

j. to pay a reasonable sum to the Crime Victims
Compensation Board, created by Section 142.2 et seq.
of Title 21 of the Oklahoma Statutes, for the benefit
of crime victims,

k. to reimburse the court fund for amounts paid to court-
appointed attorneys for representing the defendant in
the case in which the person is being sentenced,

l. to participate in an assessment and evaluation by an
assessment agency or assessment personnel certified by
the Department of Mental Health and Substance Abuse
Services pursuant to Section 3-460 of Title 43A of the
Oklahoma Statutes and, as determined by the
assessment, participate in an alcohol and drug
substance abuse course or treatment program or both,
pursuant to Sections 3-452 and 3-453 of Title 43A of
the Oklahoma Statutes, or as ordered by the court,

m. to be placed in a victims impact panel program, as
defined in subsection H of this section, or
victim/offender reconciliation program and payment of
a fee to the program of Seventy-five Dollars ($75.00)
as set by the governing authority of the program to
offset the cost of participation by the defendant.
Provided, each victim/offender reconciliation program
shall be required to obtain a written consent form

ENR. S. B. NO. 1877 Page 111
voluntarily signed by the victim and defendant that
specifies the methods to be used to resolve the
issues, the obligations and rights of each person and
the confidentiality of the proceedings. Volunteer
mediators and employees of a victim/offender
reconciliation program shall be immune from liability
and have rights of confidentiality as provided in
Section 1805 of Title 12 of the Oklahoma Statutes,

n. to install, at the expense of the defendant, an
ignition interlock device approved by the Board of
Tests for Alcohol and Drug Influence. The device
shall be installed upon every motor vehicle operated
by the defendant, and the court shall require that a
notation of this restriction be affixed to the
defendant’s driver license. The restriction shall
remain on the driver license not exceeding two (2)
years to be determined by the court. The restriction
may be modified or removed only by order of the court
and notice of any modification order shall be given to
Service Oklahoma. Upon the expiration of the period
for the restriction, Service Oklahoma shall remove the
restriction without further court order. Failure to
comply with the order to install an ignition interlock
device or operating any vehicle without a device
during the period of restriction shall be a violation
of the sentence and may be punished as deemed proper
by the sentencing court. As used in this paragraph,
“ignition interlock device” means a device that,
without tampering or intervention by another person,
would prevent the defendant from operating a motor
vehicle if the defendant has a blood or breath alcohol
concentration of two-hundredths (0.02) or greater,

o. to be confined by electronic monitoring administered
and supervised by the Department of Corrections or a
community sentence provider, and payment of a
monitoring fee to the supervising authority, not to
exceed Three Hundred Dollars ($300.00) per month. Any
fees collected pursuant to this subparagraph shall be
deposited with the appropriate supervising authority.
Any willful violation of an order of the court for the

ENR. S. B. NO. 1877 Page 112
payment of the monitoring fee shall be a violation of
the sentence and may be punished as deemed proper by
the sentencing court. As used in this paragraph,
“electronic monitoring” means confinement of the
defendant within a specified location or locations
with supervision by means of an electronic device
approved by the Department of Corrections which is
designed to detect if the defendant is in the court-
ordered location at the required times and which
records violations for investigation by a qualified
supervisory agency or person,

p. to perform one or more courses of treatment, education
or rehabilitation for any conditions, behaviors,
deficiencies or disorders which may contribute to
criminal conduct including but not limited to alcohol
and substance abuse, mental health, emotional health,
physical health, propensity for violence, antisocial
behavior, personality or attitudes, deviant sexual
behavior, child development, parenting assistance, job
skills, vocational-technical skills, domestic
relations, literacy, education or any other
identifiable deficiency which may be treated
appropriately in the community and for which a
certified provider or a program recognized by the
court as having significant positive impact exists in
the community. Any treatment, education or
rehabilitation provider required to be certified
pursuant to law or rule shall be certified by the
appropriate state agency or a national organization,

q. to submit to periodic testing for alcohol,
intoxicating substance or controlled dangerous
substances by a qualified laboratory,

r. to pay a fee or costs for treatment, education,
supervision, participation in a program or any
combination thereof as determined by the court, based
upon the defendant’s ability to pay the fees or costs,

ENR. S. B. NO. 1877 Page 113
s. to be supervised by a Department of Corrections
employee, a private supervision provider or other
person designated by the court,

t. to obtain positive behavior modeling by a trained
mentor,

u. to serve a term of confinement in a restrictive
housing facility available in the community,

v. to serve a term of confinement in the county jail at
night or during weekends pursuant to Section 991a-2 of
this title or for work release,

w. to obtain employment or participate in employment-
related activities,

x. to participate in mandatory day reporting to
facilities or persons for services, payments, duties
or person-to-person contacts as specified by the
court,

y. to pay day fines not to exceed fifty percent (50%) of
the net wages earned. For purposes of this paragraph,
“day fine” means the offender is ordered to pay an
amount calculated as a percentage of net daily wages
earned. The day fine shall be paid to the local
community sentencing system as reparation to the
community. Day fines shall be used to support the
local system,

z. to submit to blood or saliva testing as required by
subsection I of this section,

aa. to repair or restore property damaged by the
defendant’s conduct, if the court determines the
defendant possesses sufficient skill to repair or
restore the property and the victim consents to the
repairing or restoring of the property,

bb. to restore damaged property in kind or payment of out-
of-pocket expenses to the victim, if the court is able

ENR. S. B. NO. 1877 Page 114
to determine the actual out-of-pocket expenses
suffered by the victim,

cc. to attend a victim-offender reconciliation program if
the victim agrees to participate and the offender is
deemed appropriate for participation,

dd. to prioritize payments for restitution to the victim,

ee. in the case of a person convicted of prostitution
pursuant to Section 1029 of Title 21 of the Oklahoma
Statutes, require such person to receive counseling
for the behavior which may have caused such person to
engage in prostitution activities. Such person may be
required to receive counseling in areas including but
not limited to alcohol and substance abuse, sexual
behavior problems or domestic abuse or child abuse
problems,

ff. in the case of a sex offender sentenced after November
1, 1989, and required by law to register pursuant to
the Sex Offender Registration Act, the court shall
require the person to comply with sex offender
specific rules and conditions of supervision
established by the Department of Corrections and
require the person to participate in a treatment
program designed for the treatment of sex offenders
during the period of time while the offender is
subject to supervision by the Department of
Corrections. The treatment program shall include
polygraph examinations specifically designed for use
with sex offenders for purposes of supervision and
treatment compliance, and shall be administered not
less than each six (6) months during the period of
supervision. The examination shall be administered by
a certified licensed polygraph examiner. The
treatment program must shall be approved by the
Department of Corrections or the Department of Mental
Health and Substance Abuse Services. Such treatment
shall be at the expense of the defendant based on the
defendant’s ability to pay,

ENR. S. B. NO. 1877 Page 115
gg. in addition to other sentencing powers of the court,
the court in the case of a defendant being sentenced
for a felony conviction for a violation of Section 2-
402 of Title 63 of the Oklahoma Statutes which
involves marijuana may require the person to
participate in a drug court program, if available. If
a drug court program is not available, the defendant
may be required to participate in a community
sanctions program, if available,

hh. in the case of a person convicted of any false or
bogus check violation, as defined in Section 1541.4 of
Title 21 of the Oklahoma Statutes, impose a fee of
Twenty-five Dollars ($25.00) to the victim for each
check, and impose a bogus check fee to be paid to the
district attorney. The bogus check fee paid to the
district attorney shall be equal to the amount
assessed as court costs plus Twenty-five Dollars
($25.00) for each check upon filing of the case in
district court. This money shall be deposited in the
Bogus Check Restitution Program Fund as established in
subsection B of Section 114 of this title.
Additionally, the court may require the offender to
pay restitution and bogus check fees on any other
bogus check or checks that have been submitted to the
Bogus Check Restitution Program, and

ii. any other provision specifically ordered by the court.

However, any such order for restitution, community service,
payment to a local certified crime stoppers program, payment to the
Oklahoma Reward System or confinement in the county jail, or a
combination thereof, shall be made in conjunction with probation and
shall be made a condition of the suspended sentence.

However, unless under the supervision of the district attorney,
the offender shall be required to pay Forty Dollars ($40.00) per
month to the district attorney during the first two (2) years of
probation to compensate the district attorney for the costs incurred
during the prosecution of the offender and for the additional work
of verifying the compliance of the offender with the rules and
conditions of his or her probation. The district attorney may waive

ENR. S. B. NO. 1877 Page 116
any part of this requirement in the best interests of justice. The
court shall not waive, suspend, defer or dismiss the costs of
prosecution in its entirety. However, if the court determines that
a reduction in the fine, costs and costs of prosecution is
warranted, the court shall equally apply the same percentage
reduction to the fine, costs and costs of prosecution owed by the
offender;

2. Impose a fine prescribed by law for the offense, with or
without probation or commitment and with or without restitution or
service as provided for in this section, Section 991a-4.1 of this
title or Section 227 of Title 57 of the Oklahoma Statutes;

3. Commit such person for confinement provided for by law with
or without restitution as provided for in this section;

4. Order the defendant to reimburse the Oklahoma State Bureau
of Investigation for costs incurred by that agency during its
investigation of the crime for which the defendant pleaded guilty,
nolo contendere or was convicted including compensation for
laboratory, technical or investigation services performed by the
Bureau if, in the opinion of the court, the defendant is able to pay
without imposing manifest hardship on the defendant, and if the
costs incurred by the Bureau during the investigation of the
defendant’s case may be determined with reasonable certainty;

5. Order the defendant to reimburse the Oklahoma State Bureau
of Investigation for all costs incurred by that agency for cleaning
up an illegal drug laboratory site for which the defendant pleaded
guilty, nolo contendere or was convicted. The court clerk shall
collect the amount and may retain five percent (5%) of such monies
to be deposited in the Court Clerk’s Revolving Fund to cover
administrative costs and shall remit the remainder to the Oklahoma
State Bureau of Investigation to be deposited in the OSBI Revolving
Fund established by Section 150.19a of Title 74 of the Oklahoma
Statutes;

6. In the case of nonviolent felony offenses, sentence such
person to the Community Service Sentencing Program;

7. In addition to the other sentencing powers of the court, in
the case of a person convicted of operating or being in control of a

ENR. S. B. NO. 1877 Page 117
motor vehicle while the person was under the influence of alcohol,
other intoxicating substance or a combination of alcohol or another
intoxicating substance, or convicted of operating a motor vehicle
while the ability of the person to operate such vehicle was impaired
due to the consumption of alcohol, require such person:

a. to participate in an alcohol and drug assessment and
evaluation by an assessment agency or assessment
personnel certified by the Department of Mental Health
and Substance Abuse Services pursuant to Section 3-460
of Title 43A of the Oklahoma Statutes and, as
determined by the assessment, participate in an
alcohol and drug substance abuse course or treatment
program or both, pursuant to Sections 3-452 and 3-453
of Title 43A of the Oklahoma Statutes,

b. to attend a victims impact panel program, as defined
in subsection H of this section, and to pay a fee of
Seventy-five Dollars ($75.00) as set by the governing
authority of the program and approved by the court, to
the program to offset the cost of participation by the
defendant, if in the opinion of the court the
defendant has the ability to pay such fee,

c. to both participate in the alcohol and drug substance
abuse course or treatment program, pursuant to
subparagraph a of this paragraph and attend a victims
impact panel program, pursuant to subparagraph b of
this paragraph,

d. to install, at the expense of the person, an ignition
interlock device approved by the Board of Tests for
Alcohol and Drug Influence, upon every motor vehicle
operated by such person and to require that a notation
of this restriction be affixed to the person’s driver
license at the time of reinstatement of the license.
The restriction shall remain on the driver license for
such period as the court shall determine. The
restriction may be modified or removed by order of the
court and notice of the order shall be given to
Service Oklahoma. Upon the expiration of the period
for the restriction, Service Oklahoma shall remove the

ENR. S. B. NO. 1877 Page 118
restriction without further court order. Failure to
comply with the order to install an ignition interlock
device or operating any vehicle without such device
during the period of restriction shall be a violation
of the sentence and may be punished as deemed proper
by the sentencing court, or

e. beginning January 1, 1993, to submit to electronically
monitored home detention administered and supervised
by the Department of Corrections, and to pay to the
Department a monitoring fee, not to exceed Seventy-
five Dollars ($75.00) a month, to the Department of
Corrections, if in the opinion of the court the
defendant has the ability to pay such fee. Any fees
collected pursuant to this subparagraph shall be
deposited in the Department of Corrections Revolving
Fund. Any order by the court for the payment of the
monitoring fee, if willfully disobeyed, may be
enforced as an indirect contempt of court;

8. In addition to the other sentencing powers of the court, in
the case of a person convicted of prostitution pursuant to Section
1029 of Title 21 of the Oklahoma Statutes, require such person to
receive counseling for the behavior which may have caused such
person to engage in prostitution activities. Such person may be
required to receive counseling in areas including but not limited to
alcohol and substance abuse, sexual behavior problems or domestic
abuse or child abuse problems;

9. In addition to the other sentencing powers of the court, in
the case of a person convicted of any crime related to domestic
abuse, as defined in Section 60.1 of this title, the court may
require the defendant to undergo the treatment or participate in the
counseling services necessary to bring about the cessation of
domestic abuse against the victim. The defendant may be required to
pay all or part of the cost of the treatment or counseling services;

10. In addition to the other sentencing powers of the court,
the court, in the case of a sex offender sentenced after November 1,
1989, and required by law to register pursuant to the Sex Offenders
Registration Act, shall require the defendant to participate in a
treatment program designed specifically for the treatment of sex

ENR. S. B. NO. 1877 Page 119
offenders, if available. The treatment program will include
polygraph examinations specifically designed for use with sex
offenders for the purpose of supervision and treatment compliance,
provided the examination is administered by a certified licensed
polygraph examiner. The treatment program must shall be approved by
the Department of Corrections or the Department of Mental Health and
Substance Abuse Services. Such treatment shall be at the expense of
the defendant based on the ability of the defendant to pay;

11. In addition to the other sentencing powers of the court,
the court, in the case of a person convicted of abuse or neglect of
a child, as defined in Section 1-1-105 of Title 10A of the Oklahoma
Statutes, may require the person to undergo treatment or to
participate in counseling services. The defendant may be required
to pay all or part of the cost of the treatment or counseling
services;

12. In addition to the other sentencing powers of the court,
the court, in the case of a person convicted of cruelty to animals
pursuant to Section 1685 of Title 21 of the Oklahoma Statutes, may
require the person to pay restitution to animal facilities for
medical care and any boarding costs of victimized animals;

13. In addition to the other sentencing powers of the court, a
sex offender who is habitual or aggravated as defined by Section 584
of Title 57 of the Oklahoma Statutes and who is required to register
as a sex offender pursuant to the Sex Offenders Registration Act
shall be supervised by the Department of Corrections for the
duration of the registration period and shall be assigned to a
global position monitoring device by the Department of Corrections
for the duration of the registration period. The cost of such
monitoring device shall be reimbursed by the offender;

14. In addition to the other sentencing powers of the court, in
the case of a sex offender who is required by law to register
pursuant to the Sex Offenders Registration Act, the court may
prohibit the person from accessing or using any Internet social
networking website that has the potential or likelihood of allowing
the sex offender to have contact with any child who is under the age
of eighteen (18) years;

ENR. S. B. NO. 1877 Page 120
15. In addition to the other sentencing powers of the court, in
the case of a sex offender who is required by law to register
pursuant to the Sex Offenders Registration Act, the court shall
require the person to register any electronic mail address
information, instant message, chat or other Internet communication
name or identity information that the person uses or intends to use
while accessing the Internet or used for other purposes of social
networking or other similar Internet communication; or

16. In addition to the other sentencing powers of the court,
and pursuant to the terms and conditions of a written plea
agreement, the court may prohibit the defendant from entering,
visiting or residing within the judicial district in which the
defendant was convicted until after completion of his or her
sentence; provided, however, the court shall ensure that the
defendant has access to those services or programs for which the
defendant is required to participate as a condition of probation.
When seeking to enter the prohibited judicial district for personal
business not related to his or her criminal case, the defendant
shall be required to obtain approval by the court.

B. Notwithstanding any other provision of law, any person who
is found guilty of a violation of any provision of Section 761 or
11-902 of Title 47 of the Oklahoma Statutes or any person pleading
guilty or nolo contendere for a violation of any provision of such
sections shall be ordered to participate in, prior to sentencing, an
alcohol and drug assessment and evaluation by an assessment agency
or assessment personnel certified by the Department of Mental Health
and Substance Abuse Services for the purpose of evaluating the
receptivity to treatment and prognosis of the person. The court
shall order the person to reimburse the agency or assessor for the
evaluation. The fee shall be the amount provided in subsection C of
Section 3-460 of Title 43A of the Oklahoma Statutes. The evaluation
shall be conducted at a certified assessment agency, the office of a
certified assessor or at another location as ordered by the court.
The agency or assessor shall, within seventy-two (72) hours from the
time the person is assessed, submit a written report to the court
for the purpose of assisting the court in its final sentencing
determination. No person, agency or facility operating an alcohol
and drug substance abuse evaluation program certified by the
Department of Mental Health and Substance Abuse Services shall
solicit or refer any person evaluated pursuant to this subsection

ENR. S. B. NO. 1877 Page 121
for any treatment program or alcohol and drug substance abuse
service in which such person, agency or facility has a vested
interest; however, this provision shall not be construed to prohibit
the court from ordering participation in or any person from
voluntarily utilizing a treatment program or alcohol and drug
substance abuse service offered by such person, agency or facility.
If a person is sentenced to the custody of the Department of
Corrections and the court has received a written evaluation report
pursuant to this subsection, the report shall be furnished to the
Department of Corrections with the judgment and sentence. Any
evaluation report submitted to the court pursuant to this subsection
shall be handled in a manner which will keep such report
confidential from the general public’s review. Nothing contained in
this subsection shall be construed to prohibit the court from
ordering judgment and sentence in the event the defendant fails or
refuses to comply with an order of the court to obtain the
evaluation required by this subsection.

C. When sentencing a person convicted of a crime, the court
shall first consider a program of restitution for the victim, as
well as imposition of a fine or incarceration of the offender. The
provisions of paragraph 1 of subsection A of this section shall not
apply to defendants being sentenced upon their third or subsequent
to their third conviction of a felony. Provided, the court may
waive these prohibitions upon written application of the district
attorney. Both the application and the waiver shall be made part of
the record of the case.

D. When sentencing a person convicted of a crime, the judge
shall consider any victim impact statements if submitted to the
jury, or the judge in the event a jury is waived.

E. Probation, for purposes of subsection A of this section, is
a procedure by which a defendant found guilty of a crime, whether
upon a verdict or plea of guilty or upon a plea of nolo contendere,
is released by the court subject to conditions imposed by the court
and subject to supervision by the Department of Corrections, a
private supervision provider or other person designated by the
court. Such supervision shall be initiated upon an order of
probation from the court, and shall not exceed two (2) years, unless
a petition alleging a violation of any condition of deferred
judgment or seeking revocation of the suspended sentence is filed

ENR. S. B. NO. 1877 Page 122
during the supervision, or as otherwise provided by law. In the
case of a person convicted of a sex offense, supervision shall begin
immediately upon release from incarceration or if parole is granted
and shall not be limited to two (2) years. Provided further, any
supervision provided for in this section may be extended for a
period not to exceed the expiration of the maximum term or terms of
the sentence upon a determination by the court or the Division of
Probation and Parole of the Department of Corrections that the best
interests of the public and the release will be served by an
extended period of supervision.

F. The Department of Corrections, or such other agency as the
court may designate, shall be responsible for the monitoring and
administration of the restitution and service programs provided for
by subparagraphs a, c and d of paragraph 1 of subsection A of this
section, and shall ensure that restitution payments are forwarded to
the victim and that service assignments are properly performed.

G. 1. The Department of Corrections is hereby authorized,
subject to funds available through appropriation by the Legislature,
to contract with counties for the administration of county Community
Service Sentencing Programs.

2. Any offender eligible to participate in the Program pursuant
to this section shall be eligible to participate in a county
Program; provided, participation in county-funded Programs shall not
be limited to offenders who would otherwise be sentenced to
confinement with the Department of Corrections.

3. The Department shall establish criteria and specifications
for contracts with counties for such Programs. A county may apply
to the Department for a contract for a county-funded Program for a
specific period of time. The Department shall be responsible for
ensuring that any contracting county complies in full with
specifications and requirements of the contract. The contract shall
set appropriate compensation to the county for services to the
Department.

4. The Department is hereby authorized to provide technical
assistance to any county in establishing a Program, regardless of
whether the county enters into a contract pursuant to this
subsection. Technical assistance shall include appropriate

ENR. S. B. NO. 1877 Page 123
staffing, development of community resources, sponsorship,
supervision, and any other requirements.

5. The Department shall annually, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically make a report to the Governor, the President Pro
Tempore of the Senate, and the Speaker of the House on the number of
such Programs, the number of participating offenders, the success
rates of each Program according to criteria established by the
Department and the costs of each Program.

H. As used in this section:

1. “Ignition interlock device” means a device that, without
tampering or intervention by another person, would prevent the
defendant from operating a motor vehicle if the defendant has a
blood or breath alcohol concentration of two-hundredths (0.02) or
greater;

2. “Electronically monitored home detention” means
incarceration of the defendant within a specified location or
locations with monitoring by means of a device approved by the
Department of Corrections that detects if the person leaves the
confines of any specified location; and

3. “Victims impact panel program” means a program conducted by
a corporation registered with the Secretary of State in Oklahoma for
the sole purpose of operating a victims impact panel program. The
program shall include live presentations from presenters who will
share personal stories with participants about how alcohol, drug
abuse, the operation of a motor vehicle while using an electronic
communication device or the illegal conduct of others has personally
impacted the lives of the presenters. A victims impact panel
program shall be attended by persons who have committed the offense
of driving, operating or being in actual physical control of a motor
vehicle while under the influence of alcohol or other intoxicating
substance, operating a motor vehicle while the ability of the person
to operate such vehicle was impaired due to the consumption of
alcohol or any other substance or operating a motor vehicle while
using an electronic device or by persons who have been convicted of
furnishing alcoholic beverage to persons under twenty-one (21) years
of age, as provided in Sections 6-101 and 6-120 of Title 37A of the

ENR. S. B. NO. 1877 Page 124
Oklahoma Statutes. Persons attending a victims impact panel program
shall be required to pay a fee of Seventy-five Dollars ($75.00) to
the provider of the program. A certificate of completion shall be
issued to the person upon satisfying the attendance and fee
requirements of the victims impact panel program. The certificate
of completion shall contain the business identification number of
the program provider. A certified assessment agency, certified
assessor or provider of an alcohol and drug substance abuse course
shall be prohibited from providing a victims impact panel program
and shall further be prohibited from having any proprietary or
pecuniary interest in a victims impact panel program. The provider
of the victims impact panel program shall carry general liability
insurance and maintain an accurate accounting of all business
transactions and funds received in relation to the victims impact
panel program. Beginning October 1, 2020, and each October 1
thereafter, the provider of the victims impact panel program shall
provide to the District Attorneys Council the following:

a. proof of registration with the Oklahoma Secretary of
State,

b. proof of general liability insurance,

c. end-of-year financial statements prepared by a
certified public accountant,

d. a copy of federal income tax returns filed with the
Internal Revenue Service,

e. a registration fee of One Thousand Dollars
($1,000.00). The registration fee shall be deposited
in the District Attorneys Council Revolving Fund
created in Section 215.28 of Title 19 of the Oklahoma
Statutes, and

f. a statement certifying that the provider of the
victims impact panel program has complied with all of
the requirements set forth in this paragraph.

I. A person convicted of a felony offense or receiving any form
of probation for an offense in which registration is required
pursuant to the Sex Offenders Registration Act, shall submit to

ENR. S. B. NO. 1877 Page 125
deoxyribonucleic acid (DNA) testing for law enforcement
identification purposes in accordance with Section 150.27 of Title
74 of the Oklahoma Statutes and the rules promulgated by the
Oklahoma State Bureau of Investigation for the OSBI Combined DNA
Index System (CODIS) Database. Subject to the availability of
funds, any person convicted of a misdemeanor offense of assault and
battery, domestic abuse, stalking, possession of a controlled
substance prohibited under the Uniform Controlled Dangerous
Substances Act, outraging public decency, resisting arrest, escape
or attempting to escape, eluding a police officer, Peeping Tom,
pointing a firearm, threatening an act of violence, breaking and
entering a dwelling place, destruction of property, negligent
homicide or causing a personal injury accident while driving under
the influence of any intoxicating substance, or any alien unlawfully
present under federal immigration law, upon arrest, shall submit to
DNA testing for law enforcement identification purposes in
accordance with Section 150.27 of Title 74 of the Oklahoma Statutes
and the rules promulgated by the Oklahoma State Bureau of
Investigation for the OSBI Combined DNA Index System (CODIS)
Database. Any defendant sentenced to probation shall be required to
submit to testing within thirty (30) days of sentencing either to
the Department of Corrections or to the county sheriff or other
peace officer as directed by the court. Defendants who are
sentenced to a term of incarceration shall submit to testing in
accordance with Section 530.1 of Title 57 of the Oklahoma Statutes,
for those defendants who enter the custody of the Department of
Corrections or to the county sheriff, for those defendants sentenced
to incarceration in a county jail. Convicted individuals who have
previously submitted to DNA testing under this section and for whom
a valid sample is on file in the OSBI Combined DNA Index System
(CODIS) Database at the time of sentencing shall not be required to
submit to additional testing. Except as required by the Sex
Offenders Registration Act, a deferred judgment does not require
submission to DNA testing.

Any person who is incarcerated in the custody of the Department
of Corrections after July 1, 1996, and who has not been released
before January 1, 2006, shall provide a blood or saliva sample prior
to release. Every person subject to DNA testing after January 1,
2006, whose sentence does not include a term of confinement with the
Department of Corrections shall submit a blood or saliva sample.
Every person subject to DNA testing who is sentenced to unsupervised

ENR. S. B. NO. 1877 Page 126
probation or otherwise not supervised by the Department of
Corrections shall submit for blood or saliva testing to the sheriff
of the sentencing county.

J. Samples of blood or saliva for DNA testing required by
subsection I of this section shall be taken by employees or
contractors of the Department of Corrections, peace officers, or the
county sheriff or employees or contractors of the sheriff’s office.
The individuals shall be properly trained to collect blood or saliva
samples. Persons collecting blood or saliva for DNA testing
pursuant to this section shall be immune from civil liabilities
arising from this activity. All collectors of DNA samples shall
ensure the collection of samples are mailed to the Oklahoma State
Bureau of Investigation within ten (10) days of the time the subject
appears for testing or within ten (10) days of the date the subject
comes into physical custody to serve a term of incarceration. All
collectors of DNA samples shall use sample kits provided by the OSBI
and procedures promulgated by the OSBI. Persons subject to DNA
testing who are not received at the Lexington Assessment and
Reception Center shall be required to pay a fee of Fifteen Dollars
($15.00) to the agency collecting the sample for submission to the
OSBI Combined DNA Index System (CODIS) Database. Any fees collected
pursuant to this subsection shall be deposited in the revolving
account or the service fee account of the collection agency or
department.

K. When sentencing a person who has been convicted of a crime
that would subject that person to the provisions of the Sex
Offenders Registration Act, neither the court nor the district
attorney shall be allowed to waive or exempt such person from the
registration requirements of the Sex Offenders Registration Act.

SECTION 58. AMENDATORY 22 O.S. 2021, Section 991f-1.1,
is amended to read as follows:

Section 991f-1.1. A. Each district attorney shall create
within the district attorney’s office a Restitution and Diversion
Program and assign sufficient staff and resources for the efficient
operation of such program. The purpose of the Restitution and
Diversion Program is to allow the district attorney the discretion
to divert criminal complaints involving property crimes from
criminal court and to monitor restitution payments. At the

ENR. S. B. NO. 1877 Page 127
discretion of the district attorney, the program may be administered
by the Bogus Check Restitution Program operated by the county.

B. 1. Referral of a criminal complaint to the Restitution and
Diversion Program shall be at the discretion of the district
attorney. This act shall not limit the power of the district
attorney to prosecute criminal complaints.

2. Upon receipt of a criminal complaint involving property, the
district attorney shall determine if the complaint is one which is
appropriate for deferred prosecution.

3. In determining whether to defer prosecution and refer a case
to the Restitution and Diversion Program, the district attorney
shall consider the following factors:

a. whether the criminal complaint alleges an offense
involving property,

b. whether the alleged offense was committed in an
aggressive, violent, premeditated or willful manner,

c. the prospects for adequate protection of the public if
the accused person is processed through deferred
prosecution in the Restitution and Diversion Program,

d. the number of criminal complaints against the
defendant previously received by the district
attorney,

e. whether or not there are other criminal complaints
currently pending against the defendant,

f. the strength of the evidence of the particular
criminal complaint, and

g. the wishes of the victim.

C. Upon referral of a complaint to the Restitution and
Diversion Program, a notice of the complaint shall be forwarded by
mail to the accused person. The notice shall contain:

ENR. S. B. NO. 1877 Page 128
1. The date the act which is the subject of the complaint
occurred;

2. The name of the victim;

3. The date before which the accused person must shall contact
the office of the district attorney concerning the complaint; and

4. A statement of the penalty for the crime which is the
subject of the complaint.

D. The district attorney may enter into a written agreement
with the accused person to defer prosecution on the criminal
complaint for a period to be determined by the district attorney,
not to exceed three (3) years pending restitution being made to the
victim of the complaint and payment of necessary fees.

E. Each restitution agreement shall include a provision
requiring the accused person to pay to the district attorneys office
a fee equal to the amount which would have been assessed as court
costs upon the filing of the case in district court plus Twenty-five
Dollars ($25.00) for each criminal complaint covered by the
agreement. This fee may be deposited in a special fund with the
county treasurer to be known as the “Restitution and Diversion
Program Fund” or in the Bogus Check Restitution Fund. The monies
deposited in the Restitution and Diversion Program Fund shall be
used by the district attorney to make any lawful expenditure
associated with the district attorney’s office. The district
attorney shall keep records of all monies deposited to and disbursed
from these funds. The records of these funds shall be audited at
the same time the records of county funds are audited.

F. 1. Restitution to be paid by the accused person to the
victim shall include out-of-pocket expenses the victim incurred as a
direct result of the crime having been committed. A restitution
agreement may include provisions for restitution in an amount up to
treble the amount of property involved except such restitution shall
not apply to false or bogus checks. If, instead of paying
restitution directly to the victim, the accused person delivers
restitution funds to the office of the district attorney, the
district attorney shall deposit such funds in a depository account
in the office of the county treasurer to be disbursed to the victim

ENR. S. B. NO. 1877 Page 129
by a warrant signed by the district attorney or a member of the
district attorney’s staff assigned to the Restitution and Diversion
Program. The district attorney shall keep full records of all
restitution monies received and disbursed. These records shall be
audited at the same time the county funds are audited;

2. If the accused person fails to comply with the provisions of
the Restitution and Diversion Program agreement, the district
attorney may file an information and proceed with the prosecution of
the accused person as provided by law.

G. Members of the district attorney’s staff shall perform
duties in connection with the Restitution and Diversion Program in
addition to any other duties which may be assigned by the district
attorney.

H. 1. District attorneys shall prepare and submit an annual
report to the District Attorneys Council showing total deposits and
total expenditures in the Restitution and Diversion Program.

2. By September 15 of each year, the District Attorneys Council
shall publish an annual report for the previous fiscal year of the
Restitution and Diversion Program. A copy of the report shall be
electronically distributed to the President Pro Tempore of the
Senate and, the Speaker of the House of Representatives, and the
chairs of the House and Senate Appropriations Committees utilizing
the centralized filing system provided for in Section 378 of this
act. Each district attorney shall submit information requested by
the District Attorneys Council regarding the Restitution and
Diversion Program. This report shall include the number of cases
processed, the total dollar amount for which restitution was made,
the total amount of the restitution collected, the total amount of
fees collected, the total cost of the program, and such other
information as required by the District Attorneys Council.

I. For the purposes of the Restitution and Diversion Program,
the following definitions shall apply:

1. “Property Crime” shall include, but not be limited to the
following:

a. embezzlement offenses,

ENR. S. B. NO. 1877 Page 130

b. larceny offenses,

c. theft offenses,

d. malicious injury to property, and

e. any offense which results in economic loss, but does
not result in physical injury to another human being,
and which is not enumerated in Section 571 of Title 57
of the Oklahoma Statutes;

2. “Victim” is defined by Section 991f of this title;

3. “Restitution” is defined by Section 991f of this title; and

4. “Economic loss” is defined by Section 991f of this title.

J. The victim shall promptly provide to the Restitution and
Diversion Program all documentation and evidence of compensation or
reimbursement from insurance companies or agencies of this state,
any other state, or the federal government received as a direct
result of the crime for injury, loss of earnings or out-of-pocket
loss.

SECTION 59. AMENDATORY 22 O.S. 2021, Section 1355.4, is
amended to read as follows:

Section 1355.4. A. The chief executive officer of the Oklahoma
Indigent Defense System shall be the Executive Director, who shall
be appointed by the Board and serve at the pleasure of the Board.
The Executive Director shall be an attorney who has practiced law
for at least four (4) years preceding the appointment and who is
licensed to practice law in this state or is eligible to become so
licensed within one (1) year of the appointment. The Executive
Director shall have experience in the representation of persons
accused or convicted of crimes.

B. The Executive Director shall perform administrative
functions which serve the Board.

ENR. S. B. NO. 1877 Page 131
C. The Executive Director shall have the following powers and
duties:

1. To prepare and administer an annual budget approved by the
Board and to process claims for the System;

2. To enter into contracts to provide counsel in cases in which
the defendant is indigent and unable to employ counsel, to enter
into contracts with individuals, educational institutions, or state
or federal agencies for other purposes, and to approve or disapprove
the provisions of any such contract;

3. To review and approve or disapprove claims for expenditures
of monies;

4. To take such actions as shall strengthen the criminal
justice system in this state;

5. To promote the education and training of all attorneys
representing indigent criminal defendants including, subject to
available funding, nationally recognized defense seminars and
evidence-based practices regarding behavioral health and treatment
of defendants with substance abuse or mental health needs;

6. To maintain and improve effective representation for the
indigent criminal defendant;

7. To employ personnel as necessary to carry out the duties
imposed upon the System by law and to set the salaries of such
personnel, subject to the salary schedules adopted by the Board;

8. To solicit and maintain a current list of attorneys licensed
to practice law in this state who are willing to accept case
assignments from the System and who meet any other qualifications as
set by the Board;

9. To solicit and maintain a separate list of persons eligible
for appointment to capital cases, who meet the qualifications set by
the System;

ENR. S. B. NO. 1877 Page 132
10. To establish reasonable hourly rates of compensation for
attorneys appointed in accordance with the Indigent Defense Act,
subject to approval by the Board;

11. To establish maximum caseloads for attorneys employed by
the System, subject to approval by the Board;

12. To reduce caseloads through reassignment of cases to
private attorneys, as necessary;

13. To approve the sharing of office space, equipment, or
personnel among the separate indigent defense programs within the
System;

14. To prepare and submit to the Board an annual report for the
preceding fiscal year regarding the efforts of the System to
implement the purposes of the Indigent Defense Act, and, utilizing
the centralized filing system provided for in Section 378 of this
act, to electronically file that report with the Governor, the
President Pro Tempore of the Senate, the Speaker of the House of
Representatives, the Chief Justice of the Oklahoma Supreme Court,
and the Presiding Judge of the Oklahoma Court of Criminal Appeals;

15. To conduct regional or statewide conferences and training
seminars for the purpose of implementing the provisions of the
Indigent Defense Act;

16. To provide System personnel who serve in an advisory
capacity to the indigent defenders and defense attorneys who
represent indigents pursuant to contract or who agree to accept
cases assigned by the System to represent indigents of this state;

17. To gather and disseminate information to indigent
defenders, including, but not limited to, changes in the law;

18. To recommend additional legislation necessary to upgrade
the Oklahoma Indigent Defense System or to improve the justice
system; and

19. To operate a cost-effective system by:

ENR. S. B. NO. 1877 Page 133
a. implementing procedures to track System expenditures
to show costs by case and client and to track time and
expenses by attorney if the attorney is employed by
the System,

b. adopting written policies regarding when employees are
to be in travel status and making efforts to reduce
travel costs, and

c. reviewing assignment of indigency status to identify
clients who have available resources, and collecting
costs of representation when feasible.

D. 1. The Executive Director is hereby authorized to develop,
establish, and maintain lists of approved contractors who have
agreed to provide expert services to the System. The lists shall
include any expert who desires to furnish services to the System and
who has filed a schedule of fees for services with, and on a form
approved by, the Executive Director. Any deviation in excess of the
published schedule of fees shall require the prior written approval
of the Executive Director. Any attorney appointed or assigned cases
in accordance with the Indigent Defense Act may request expert
services from the list of experts maintained by the Executive
Director. The Executive Director or designee may, in said such
person’s sole discretion, approve requests for expert services;
provided, however, that nothing contained in the Indigent Defense
Act shall be construed to render the Executive Director a member of
the defense team in any System client’s case for strategic purposes.

2. Attorneys appointed or assigned cases in accordance with the
Indigent Defense Act may request investigative or other nonexpert
witness services from the Executive Director on a form provided by
the Executive Director. The Executive Director or designee may, in
said such person’s sole discretion, approve requests for such
services at a reasonable hourly rate of compensation; provided,
however, that nothing contained in the Indigent Defense Act shall be
construed to render the Executive Director a member of the defense
team in any System client’s case for strategic purposes.

3. Services obtained under this section may be obtained as sole
source contracts and are specifically exempt from the requirements

ENR. S. B. NO. 1877 Page 134
of soliciting no less than three quotations found in paragraph 7 of
subsection A of Section 85.45j of Title 74 of the Oklahoma Statutes.

E. Each individual performing the services provided for in
subsection D of this section may, with the approval of the Executive
Director, be reimbursed for necessary travel expenses up to the
amount permitted by the State Travel Reimbursement Act.

F. Requests for expenses not included in subsections D and E of
this section shall require preapproval by the Executive Director.

SECTION 60. AMENDATORY 22 O.S. 2021, Section 1601, as
amended by Section 1, Chapter 51, O.S.L. 2024 (22 O.S. Supp. 2025,
Section 1601), is amended to read as follows:

Section 1601. A. There is hereby created the Domestic Violence
Fatality Review Board within the Office of the Attorney General.
The Board shall have the power and duty to:

1. Coordinate and integrate state and local efforts to address
fatal domestic violence and create a body of information to prevent
domestic violence deaths;

2. Collect, analyze, and interpret state and local data on
domestic violence deaths;

3. Develop a state and local database on domestic violence
deaths;

4. Improve the ability to provide protective services to
victims of domestic violence who may be living in a dangerous
environment;

5. Improve policies, procedures and practices within the
agencies that serve victims of domestic violence; and

6. Enter into agreements with other state, local or private
entities as necessary to carry out the duties of the Domestic
Violence Fatality Review Board including, but not limited to,
conducting joint reviews with the Child Death Review Board on
domestic violence cases involving child death or child near-death
incidents.

ENR. S. B. NO. 1877 Page 135

B. In carrying out its duties and responsibilities, the Board
shall:

1. Promulgate rules establishing criteria for identifying cases
involving a domestic violence death subject to specific, in-depth
review by the Board;

2. Conduct a specific case review of those cases where the
cause of death is or may be related to domestic violence;

3. Establish and maintain statistical information related to
domestic violence deaths, including, but not limited to, demographic
and medical diagnostic information;

4. Establish procedures for obtaining initial information
regarding domestic violence deaths from law enforcement agencies;

5. Review the policies, practices, and procedures of the
domestic violence protection and prevention system and make specific
recommendations to the entities comprising the domestic violence
prevention and protection system for actions necessary for the
improvement of the system;

6. Review the extent to which the state domestic violence
prevention and protection system is coordinated with law enforcement
and the court system and evaluate whether the state is efficiently
discharging its domestic violence prevention and protection
responsibilities;

7. Request and obtain a copy of all records and reports
pertaining to a domestic violence death case of the victim,
perpetrator, or any other person cohabitating in the domicile at the
time of the fatality that is under review, including, but not
limited to:

a. the report of the medical examiner,

b. hospital records,

c. school records,

ENR. S. B. NO. 1877 Page 136
d. court records,

e. prosecutorial records,

f. local, state, and federal law enforcement records,
including, but not limited to, the Oklahoma State
Bureau of Investigation (OSBI),

g. fire department records,

h. State Department of Health records, including birth
certificate records,

i. medical and dental records,

j. Department of Mental Health and Substance Abuse
Services and other mental health records,

k. emergency medical service records,

l. files of the Department of Human Services,

m. records of the Oklahoma Department of Corrections, and

n. records in the possession of the Child Death Review
Board when conducting a joint review pursuant to
paragraph 6 of subsection A of this section.

Confidential information provided to the Board shall be maintained
by the Board in a confidential manner as otherwise required by state
and federal law. Any person damaged by disclosure of such
confidential information by the Board or its members which is not
authorized by law may maintain an action for damages, costs, and
attorney fees pursuant to The Oklahoma Governmental Tort Claims Act;

8. Maintain all confidential information, documents and records
in possession of the Board as confidential and not subject to
subpoena or discovery in any civil or criminal proceedings;
provided, however, information, documents and records otherwise
available from other sources shall not be exempt from subpoena or
discovery through those sources solely because such information,
documents and records were presented to or reviewed by the Board;

ENR. S. B. NO. 1877 Page 137

9. Conduct reviews of specific cases of domestic violence
deaths and request the preparation of additional information and
reports as determined to be necessary by the Board including, but
not limited to, clinical summaries from treating physicians,
chronologies of contact, and second opinion autopsies;

10. Report, if recommended by a majority vote of the Board, to
the President Pro Tempore of the Senate and the Speaker of the House
of Representatives any gross neglect of duty by any state officer or
state employee, or any problem within the domestic violence
prevention and protection system discovered by the Board while
performing its duties. Such report shall be made electronically
utilizing the centralized filing system provided for in Section 378
of this act; and

11. Exercise all incidental powers necessary and proper for the
implementation and administration of the Domestic Violence Fatality
Review Board.

C. The review and discussion of individual cases of a domestic
violence death shall be conducted in executive session. All other
business shall be conducted in accordance with the provisions of the
Oklahoma Open Meeting Act. All discussions of individual cases and
any writings produced by or created for the Board in the course of
determining a remedial measure to be recommended by the Board, as
the result of a review of an individual case of a domestic violence
death, shall be privileged and shall not be admissible in evidence
in any proceeding. The Board shall periodically conduct meetings to
discuss organization and business matters and any actions or
recommendations aimed at improvement of the domestic violence
prevention and protection system which shall be subject to the
Oklahoma Open Meeting Act. Part of any meeting of the Board may be
specifically designated as a business meeting of the Board subject
to the Oklahoma Open Meeting Act.

D. The Board shall submit an annual statistical report on the
incidence and causes of domestic violence deaths in this state for
which the Board has completed its review during the past calendar
year including its recommendations, if any, to the domestic violence
prevention and protection system. The Board shall also prepare and
make available to the public, on an annual basis, a report

ENR. S. B. NO. 1877 Page 138
containing a summary of the activities of the Board relating to the
review of domestic violence deaths, the extent to which the state
domestic violence prevention and protection system is coordinated
and an evaluation of whether the state is efficiently discharging
its domestic violence prevention and protection responsibilities.
The report shall be completed no later than February 1 of the
subsequent year.

SECTION 61. AMENDATORY 22 O.S. 2021, Section 2002, as
amended by Section 2, Chapter 327, O.S.L. 2025 (22 O.S. Supp. 2025,
Section 2002), is amended to read as follows:

Section 2002. A. Disclosure of Evidence by the State.

1. Upon request of the defense, the state shall disclose the
following:

a. the names and addresses of witnesses which the state
intends to call at trial, together with their
relevant, written, or recorded statement, if any, or
if none, significant summaries of any oral statement,

b. law enforcement reports made in connection with the
particular case,

c. any written or recorded statements and the substance
of any oral statements made by the accused or made by
a codefendant,

d. any reports or statements made by experts in
connection with the particular case, including results
of physical or mental examinations and of scientific
tests, experiments, or comparisons,

e. any books, papers, documents, photographs, tangible
objects, buildings, or places which the prosecuting
attorney intends to use in the hearing or trial or
which were obtained from or belong to the accused,

f. any record of prior criminal convictions of the
defendant, or of any codefendant, and

ENR. S. B. NO. 1877 Page 139
g. Oklahoma State Bureau of Investigation (OSBI) rap
sheet/records check on any witness listed by the state
or the defense as a witness who will testify at trial,
as well as any convictions of any witness revealed
through additional record checks if the defense has
furnished Social Security numbers or date of birth for
their witnesses, except OSBI rap sheet/record checks
shall not provide date of birth, Social Security
number, home phone number, or address.

2. The state shall provide the defendant any evidence favorable
to the defendant if such evidence is material to either guilt or
punishment.

3. The prosecuting attorney’s obligations under this standard
extend to:

a. material and information in the possession or control
of members of the prosecutor’s staff,

b. any information in the possession of law enforcement
agencies that regularly report to the prosecutor of
which the prosecutor should reasonably know, and

c. any information in the possession of law enforcement
agencies who have reported to the prosecutor with
reference to the particular case of which the
prosecutor should reasonably know.

4. a. If the state intends to introduce testimony of a
jailhouse informant, the state shall disclose at least
ten (10) days prior to trial:

(1) the complete criminal history of such informant,
including any dismissed charges,

(2) any deal, promise, inducement, or benefit that
the state or law enforcement agency has made or
may make in the future to the jailhouse informant
in connection with the testimony of such
informant,

ENR. S. B. NO. 1877 Page 140
(3) the specific statements or recordings made by the
suspect or defendant and the time, place, and
manner of the disclosure to the jailhouse
informant,

(4) all other filed cases in which the state intended
to introduce the testimony of the jailhouse
informant in connection with a deal, promise,
inducement or benefit, the nature of the deal,
promise, inducement or benefit, and whether the
testimony was admitted in the case,

(5) whether at any time the jailhouse informant
recanted the testimony or statement, and if so, a
transcript or copy of such recantation, if any,
and

(6) any other information relevant to the credibility
of the informant.

b. Each district attorney’s office shall maintain a
central record that tracks each case in which the
state intended to introduce the testimony of the
jailhouse informant against a suspect or defendant in
connection with a deal, promise, inducement or
benefit, the nature of the deal, promise, inducement,
or benefit and whether such testimony or statements
were admitted in the case. Such record shall be sent
to the District Attorneys Council which shall maintain
a statewide record of such information. Records
maintained pursuant to this paragraph shall only be
accessible to prosecutors and shall not be subject to
the Oklahoma Open Records Act. By September 15 of
each year, the District Attorneys Council shall
publish an annual report of aggregate, de-identified
data regarding the total number of cases tracked
pursuant to this section, and the number of cases
added during the previous fiscal year pursuant to this
section by each district attorney’s office. A copy of
the report shall be electronically distributed to the
Governor, the President Pro Tempore of the Senate, the
Speaker of the House of Representatives, and the

ENR. S. B. NO. 1877 Page 141
chairs of the Senate and House Judiciary Committees
utilizing the centralized filing system provided for
in Section 378 of this act.

c. For purposes of this paragraph, “jailhouse informant”
means a person who provides, or who the prosecutor
intends to provide, testimony about admissions or
other relevant information made to him or her by the
suspect or defendant while both persons were detained
or incarcerated in a penal institution.

B. Disclosure of Evidence by the Defendant.

1. Upon request of the state, the defense shall be required to
disclose the following:

a. the names and addresses of witnesses which the defense
intends to call at trial, together with their
relevant, written, or recorded statement, if any, or
if none, significant summaries of any oral statement,

b. the name and address of any witness, other than the
defendant, who will be called to show that the
defendant was not present at the time and place
specified in the information or indictment, together
with the witness’ statement to that fact, and

c. the names and addresses of any witness the defendant
will call, other than himself, for testimony relating
to any mental disease, mental defect, or other
condition bearing upon his mental state at the time
the offense was allegedly committed, together with the
witness’ statement of that fact, if the statement is
redacted by the court to preclude disclosure of
privileged communication.

2. A statement filed under subparagraph a, b, or c of paragraph
1 of subsection A or B of this section is not admissible in evidence
at trial. Information obtained as a result of a statement filed
under subsection A or B of this section is not admissible in
evidence at trial except to refute the testimony of a witness whose
identity subsection A of this section requires to be disclosed.

ENR. S. B. NO. 1877 Page 142

3. Upon the prosecuting attorney’s request after the time set
by the court, the defendant shall allow him access at any reasonable
times and in any reasonable manner to inspect, photograph, copy, or
have reasonable tests made upon any book, paper, document,
photograph, or tangible object which is within the defendant’s
possession or control and which:

a. the defendant intends to offer in evidence, except to
the extent that it contains any communication of the
defendant, or

b. is a report or statement as to a physical or mental
examination or scientific test or experiment made in
connection with the particular case prepared by and
relating to the anticipated testimony of a person whom
the defendant intends to call as a witness, provided
the report or statement is redacted by the court to
preclude disclosure of privileged communication.

C. Continuing Duty to Disclose.

If, prior to or during trial, a party discovers additional
evidence or material previously requested or ordered, which is
subject to discovery or inspection under the Oklahoma Criminal
Discovery Code, such party shall promptly notify the other party,
the attorney of the other party, or the court of the existence of
the additional evidence or material.

D. Time of Discovery.

1. Motions for discovery may be made at the time of the
district court arraignment or thereafter; provided that requests for
police reports may be made subject to the provisions of Section 258
of this title. However, a request pursuant to Section 258 of this
title shall be subject to the discretion of the district attorney.
All issues relating to discovery, except as otherwise provided, will
be completed at least ten (10) days prior to trial. The court may
specify the time, place, and manner of making the discovery and may
prescribe such terms and conditions as are just.

ENR. S. B. NO. 1877 Page 143
2. Within thirty (30) days of the filing of an endorsed
complaint, indictment, or information in a court of record, law
enforcement shall provide to the prosecuting agency the following
records, if such records exist:

a. body camera videos at the time of arrest,

b. vehicle-mounted camera videos at the time of arrest,
and

c. a recording of the administration of a sobriety test.

3. Within ninety (90) days of the filing of an endorsed
complaint, indictment, or information, the prosecuting agency shall
make available the records described in paragraph 2 of this
subsection to the defendant or his or her representative.

4. Failure of a law enforcement agency to comply with the
provisions of paragraph 2 of this subsection may be punished by
contempt.

5. The following information may be redacted by the prosecuting
agency from the records provided to a defendant or his or her
representative as required by the provisions of paragraph 3 of this
subsection; provided that, notice of such redactions are given to
the defendant or to his or her representative:

a. information that would violate any requirement to keep
certain juvenile records confidential as provided for
in Title 10A of the Oklahoma Statutes,

b. information that would materially compromise an
ongoing criminal investigation or ongoing criminal
prosecution other than the case involving the
defendant,

c. information that would undermine the assertion of a
privilege to keep the identity of an informant
confidential as provided for in Section 2510 of Title
12 of the Oklahoma Statutes,

ENR. S. B. NO. 1877 Page 144
d. information that would identify any person who
provides information to law enforcement or the
information provided by that person when that person
requests anonymity or where disclosure of the identity
of the person or the information provided could
reasonably be expected to threaten or endanger the
physical safety or property of the person or the
physical safety or property of others, or

e. require production of records or videos that fall
outside the scope permitted under the provisions of
paragraph 2 of this subsection.

E. Regulation of Discovery.

1. Protective and Modifying Orders. Upon motion of the state
or defendant, the court may at any time order that specified
disclosures be restricted, or make any other protective order. If
the court enters an order restricting specified disclosures, the
entire text of the material restricted shall be sealed and preserved
in the records of the court to be made available to the appellate
court in the event of an appeal.

2. Failure to Comply with a Request. If at any time during the
course of the proceedings it is brought to the attention of the
court that a party has failed to comply with this rule, the court
may order such party to permit the discovery or inspection, grant
continuance, or prohibit the party from introducing evidence not
disclosed, or it may enter such other order as it deems just under
the circumstances.

3. The discovery order shall not include discovery of legal
work product of either attorney which is deemed to include legal
research or those portions of records, correspondence, reports, or
memoranda which are only the opinions, theories, or conclusions of
the attorney or the attorney’s legal staff.

F. Reasonable cost of copying, duplicating, videotaping,
developing or any other cost associated with this Code for items
requested shall be paid by the party so requesting; however, any
item which was obtained from the defendant by the state of which
copies are requested by the defendant shall be paid by the state.

ENR. S. B. NO. 1877 Page 145
Provided, if the court determines the defendant is indigent and
without funds to pay the cost of reproduction of the required items,
the cost shall be paid by the Indigent Defender System, unless
otherwise provided by law.

SECTION 62. AMENDATORY 27A O.S. 2021, Section 1-1-202,
as last amended by Section 1, Chapter 164, O.S.L. 2023 (27A O.S.
Supp. 2025, Section 1-1-202), is amended to read as follows:

Section 1-1-202. A. Each state environmental agency shall:

1. Be responsible for fully implementing and enforcing the laws
and rules within its jurisdictional areas of environmental
responsibility;

2. Utilize and enforce the Oklahoma Water Quality Standards
established by the Department of Environmental Quality;

3. Seek to strengthen relationships between state, regional,
local, and federal environmental planning, development, and
management programs;

4. Specifically facilitate cooperation across jurisdictional
lines of authority with other state environmental agencies regarding
programs to resolve environmental concerns;

5. Cooperate with all state environmental agencies, other state
agencies and local or federal governmental entities to protect,
foster, and promote the general welfare, and the environment and
natural resources of this state;

6. Have the authority to engage in environmental and natural
resource information dissemination and education activities within
their respective areas of environmental jurisdiction; and

7. Participate in every hearing conducted by the Department of
Environmental Quality for the consideration, adoption, or amendment
of the classification of waters of the state and standards of purity
and quality thereof, and shall have the opportunity to present
written comment to the members of the Environmental Quality Board at
the same time staff recommendations are submitted to those members
for Board review and consideration.

ENR. S. B. NO. 1877 Page 146

B. 1. In addition to the requirements of subsection A of this
section, each state environmental agency shall have promulgated by
July 1, 2001, a Water Quality Standards Implementation Plan for its
jurisdictional areas of environmental responsibility in compliance
with the Administrative Procedures Act and pursuant to the
provisions of this section. Each agency shall review its plan at
least every three (3) years thereafter to determine whether
revisions to the plan are necessary.

2. Upon the request of any state environmental agency, the
Department of Environmental Quality shall provide consulting
assistance to such agency in developing a Water Quality Standards
Implementation Plan as required by this subsection.

3. Each Water Quality Standards Implementation Plan shall:

a. describe, generally, the processes, procedures, and
methodologies the state environmental agency will
utilize to ensure that programs within its
jurisdictional areas of environmental responsibility
will comply with anti-degradation standards and lead
to:

(1) maintenance of water quality where beneficial
uses are supported,

(2) removal of threats to water quality where
beneficial uses are in danger of not being
supported, and

(3) restoration of water quality where beneficial
uses are not being supported,

b. include the procedures to be utilized in the
application of use support assessment protocols to
make impairment determinations,

c. list and describe programs affecting water quality,

ENR. S. B. NO. 1877 Page 147
d. include technical information and procedures to be
utilized in implementing the Water Quality Standards
Implementation Plan,

e. describe the method by which the Water Quality
Standards Implementation Plan will be integrated into
the water quality management activities within the
jurisdictional areas of environmental responsibility
of the state environmental agency,

f. detail the manner in which the agency will comply with
mandated statewide requirements affecting water
quality developed by other state environmental
agencies including, but not limited to, total maximum
daily load development, water discharge permit
activities, and nonpoint source pollution prevention
programs,

g. include a brief summary of the written comments and
testimony received pursuant to all public meetings
held or sponsored by the state environmental agency
for the purpose of providing the public and other
state environmental agencies an opportunity to comment
on the plan, and

h. describe objective methods and means to evaluate the
effectiveness of activities conducted pursuant to the
Water Quality Standards Implementation Plan to achieve
Oklahoma Water Quality Standards.

C. 1. Each state environmental agency with groundwater
protection authority pursuant to Article III of the Oklahoma
Environmental Quality Act shall be the groundwater protection agency
for activities within its jurisdictional areas of environmental
responsibility.

2. The Department of Environmental Quality shall cooperate with
other state environmental agencies, as appropriate and necessary, in
the protection of such unassigned activities.

3. Groundwater regulatory agencies shall develop groundwater
protection practices to prevent groundwater contamination from

ENR. S. B. NO. 1877 Page 148
activities within their respective jurisdictional areas of
environmental responsibility.

4. Each groundwater protection agency shall promulgate such
rules, and issue such permits, policies, directives, or any other
appropriate requirements, as necessary, to implement the
requirements of this subsection.

5. Groundwater protection agencies shall take such action as
may be necessary to assure that activities within their respective
jurisdictional areas of environmental responsibility protect
groundwater quality to support the uses of the state’s water
quality.

6. In addition, each groundwater protection agency with
enforcement authority is hereby authorized to:

a. engage the voluntary cooperation of all persons in the
maintenance and protection of groundwater, and to
advise, consult and cooperate with all persons, all
agencies of the state, universities and colleges, the
federal government or other states, and with
interstate agencies in the furtherance of the purposes
of this subsection, and to this end and for the
purposes of studies, scientific or other
investigations, research, experiments and
demonstrations pertaining thereto, receive and spend
funds as appropriated by the Legislature, and from
such agencies and other officers and persons on behalf
of the state,

b. encourage the formulation and execution of plans to
maintain and protect groundwater by cooperative groups
or associations of municipal corporations, industries,
industrial users, and other users of groundwaters of
the state, who, jointly or severally, are or may be
impacting on the maintenance and protection of
groundwater,

c. encourage, participate in or conduct or cause to be
conducted studies, scientific or other investigations,
research, experiments and demonstrations relating to

ENR. S. B. NO. 1877 Page 149
the maintenance and protection of groundwater, and to
collect data with respect thereto, all as may be
deemed advisable and necessary to carry out the
purposes of this subsection, and to make reports and
recommendations with respect thereto,

d. conduct groundwater sampling, data collection,
analyses, and evaluations with sufficient frequency to
ascertain the characteristics and quality of
groundwater and the sufficiency of the groundwater
protection programs established pursuant to this
subsection, and

e. develop a public education and promotion program to
aid and assist in publicizing the need of, and
securing support for, the maintenance and protection
of groundwater.

D. Each state environmental agency and each state agency with
limited environmental responsibilities shall participate in the
information management system developed by the Department of
Environmental Quality, pursuant to Section 1-4-107 of this title,
with such information as the Department shall reasonably request.

E. In each even-numbered year, in cooperation with other state
environmental agencies participating in the monitoring of water
resources, the Department of Environmental Quality shall, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically provide a report on the status of water quality
monitoring to the Legislature for review.

SECTION 63. AMENDATORY 27A O.S. 2021, Section 1-2-101,
is amended to read as follows:

Section 1-2-101. A. The Secretary of Environment or successor
cabinet position having authority over the Department of
Environmental Quality shall have the following jurisdictional areas
of environmental responsibility:

1. Powers and duties for environmental areas designated to such
position by the Governor;

ENR. S. B. NO. 1877 Page 150
2. The recipient of federal funds disbursed pursuant to the
Federal Water Pollution Control Act, provided the Oklahoma Water
Resources Board is authorized to be the recipient of federal funds
to administer the State Revolving Fund Program. The federal funds
received by the Secretary of Environment shall be disbursed to each
state environmental agency and state agency with limited
environmental responsibilities based upon its statutory duties and
responsibilities relating to environmental areas as determined by
the Secretary of Environment in consultation with the Secretary of
Agriculture. Such funds shall be distributed to the appropriate
state environmental agency or state agency with limited
environmental responsibilities within thirty (30) days of its
receipt by the Secretary or as otherwise provided by grant or
contract terms without any assessment of administrative fees or
costs. Disbursement of other federal environmental funds shall not
be subject to this section. The Secretary of Environment shall make
electronically submit, utilizing the centralized filing system
provided for in Section 378 of this act, an annual written report no
later than November 1 to the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, and the Chair of each
environmental committee of both the House of Representatives and
Senate detailing the disbursement of federal funds;

3. Coordinate pollution control and complaint management
activities of the state carried on by all state agencies to avoid
duplication of effort including but not limited to the development
of a common data base for water quality information with a uniform
format for use by all state agencies and the public; and

4. Act on behalf of the public as trustee for natural resources
under the federal Oil Pollution Act of 1990, the federal
Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended, the federal Water Pollution Control Act and any
other federal laws providing that a trustee for the natural
resources is to be designated. The Secretary is authorized to make
claims against federal funds, receive federal payments, establish
and manage a revolving fund in relation to duties as the natural
resources trustee consistent with the federal enabling acts and to
coordinate, monitor and gather information from and enter into
agreements with the appropriate state environmental agencies or
state agencies with limited environmental responsibilities in

ENR. S. B. NO. 1877 Page 151
carrying out the duties and functions of the trustee for the natural
resources of this state.

B. 1. The Secretary of the Environment or successor cabinet
position having authority over the Department of Environmental
Quality shall develop and implement, by January 1, 2000, public
participation procedures for the development and/or or modification
of:

a. the federally required list of impaired waters (303(d)
report),

b. the federally required water quality assessment
(305(b) report),

c. the federally required nonpoint source state
assessment (319 report), and

d. the continuing planning process document.

2. The procedures shall provide for the documents to be
submitted for formal public review with a published notice
consistent with the Administrative Procedures Act, providing for a
thirty-day comment period and the preparation of a responsiveness
summary by the applicable state environmental agency.

3. Information from current research shall be considered when
made available to the agency.

SECTION 64. AMENDATORY 27A O.S. 2021, Section 2-3-101,
is amended to read as follows:

Section 2-3-101. A. There is hereby created the Department of
Environmental Quality.

B. Within its jurisdictional areas of environmental
responsibility, the Department of Environmental Quality, through its
duly designated employees or representatives, shall have the power
and duty to:

1. Perform such duties as required by law; and

ENR. S. B. NO. 1877 Page 152
2. Be the official agency of the State of Oklahoma, as
designated by law, to cooperate with federal agencies for point
source pollution, solid waste, hazardous materials, pollution,
Superfund, water quality, hazardous waste, radioactive waste, air
quality, drinking water supplies, wastewater treatment, and any
other program authorized by law or executive order.

C. Any employee of the Department in a technical, supervisory
or administrative position relating to the review, issuance or
enforcement of permits pursuant to this Code who is an owner,
stockholder, employee or officer of, or who receives compensation
from, any corporation, partnership, or other business or entity
which is subject to regulation by the Department of Environmental
Quality shall disclose such interest to the Executive Director.
Such disclosure shall be submitted for Board review and shall be
made a part of the Board minutes available to the public. This
subsection shall not apply to financial interests occurring by
reason of an employee’s participation in the Oklahoma State
Employees Deferred Compensation Plan or publicly traded mutual
funds.

D. The Executive Director, Deputy Director, and all other
positions and employees of the Department at the Division Director
level or higher shall be in the unclassified service.

E. The following programs are hereby established within the
Department of Environmental Quality:

1. An air quality program which shall be responsible for air
quality;

2. Water programs which shall be responsible for water quality,
including, but not limited to point source and nonpoint source
pollution within the jurisdiction of the Department, public and
private water supplies, public and private wastewater treatment,
water protection, and discharges to waters of the state;

3. Land protection programs which shall be responsible for
hazardous waste, solid waste, radiation, and municipal, industrial,
commercial, and other waste within its jurisdictional areas of
environmental responsibility pursuant to Section 1-3-101 of this
title; and

ENR. S. B. NO. 1877 Page 153

4. Special projects and services programs which shall be
responsible for duties related to planning, interagency
coordination, technical assistance programs, laboratory services and
laboratory certification, recycling, education, and dissemination of
information.

F. Within the Department there are hereby created:

1. The complaints program which shall be responsible for intake
processing, investigation, mediation and conciliation of inquiries
and complaints received by the Department and which shall provide
for the expedient resolution of complaints within the jurisdiction
of the Department; and

2. The customer assistance program which shall be responsible
for advising and providing to licensees, permittees and those
persons representing businesses or those persons associated with and
representing local political subdivisions desiring a license or
permit, the necessary forms, and the information necessary to comply
with the Oklahoma Environmental Quality Code. The customer
assistance program shall coordinate with other programs of the
Department to assist businesses and municipalities in complying with
state statutes and rules governing environmental areas.

The customer assistance program shall also be responsible for
advising and providing assistance to persons desiring information
concerning the Department’s rules, laws, procedures, licenses or
permits, and forms used to comply with the Oklahoma Environmental
Quality Code.

G. The Department shall be responsible for holding
administrative hearings as defined in Section 2-1-102 of this title
and shall provide support services related to them, including, but
not limited to, giving required notices, maintaining the docket,
scheduling hearings, and maintaining legal records.

H. 1. The Department shall prepare and submit an annual report
assessing the status of the Department’s programs to the Board, the
Governor, the President Pro Tempore of the State Senate, and the
Speaker of the Oklahoma House of Representatives by January 1 of
each year. The annual status report shall include: the number of

ENR. S. B. NO. 1877 Page 154
environmental inspections made within the various regulatory areas
under the Department’s jurisdiction; the number of permit
applications submitted within the various regulatory areas under the
Department’s jurisdiction; the number of permits issued within the
various regulatory areas under the Department’s jurisdiction; the
number and type of complaints filed with the Department; the number
of resolved and unresolved Department complaints; a list of any
permits and complaints which failed to be either completed or
resolved within the Department’s established time frames and an
explanation of why the Department was unable to meet said time
frames; the number and kinds of services provided corporations,
businesses, cities, towns, schools, citizen groups, and individuals
by the customer assistance programs; a summary of the Department’s
environmental education efforts; the number and type of
administrative hearings held and their outcomes; a detailed
description of any promulgated and pending emergency or permanent
rules requested by the Department and the current status of pending
rules within the rulemaking process; the number of notices of
violations issued by the Department within the various regulatory
areas under its jurisdiction; the amount of penalties collected by
the Department within the various regulatory areas under its
jurisdiction; and any other information which the Department
believes is pertinent.

2. Beginning January 1, 1995, and on or before January 1 of
every year thereafter, the Department shall prepare an Oklahoma
Environmental Quality Report which outlines the Department’s annual
needs for providing environmental services within its jurisdictional
areas. The report shall reflect any new federal mandates and any
state statutory or constitutional changes recommended by the
Department within its jurisdictional areas. The Oklahoma
Environmental Quality Report shall be reviewed, amended, and
approved by the Board. The Department shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically transmit an approved copy of the Oklahoma
Environmental Quality Report to the Governor, President Pro Tempore
of the State Senate, and Speaker of the House of Representatives.

3. The Executive Director shall establish such divisions and
such other programs and offices as the Executive Director may
determine necessary to implement and administer programs and

ENR. S. B. NO. 1877 Page 155
functions within the jurisdiction of the Department pursuant to the
Oklahoma Environmental Quality Code.

I. 1. The Department may contract with other governmental
entities to provide environmental services. Such contracts may
include duties related to providing information to the public
regarding state environmental services, resources, permitting
requirements and procedures based upon the ability, education, and
training of state environmental agency employees.

2. The Department, in conjunction with the state environmental
agencies, may develop a program for the purpose of training
government employees to provide any needed environmental services;
provided, that the investigation of complaints regarding, or
inspections of, permitted sites or facilities shall not be performed
by employees of other agencies, unless otherwise authorized by law.

SECTION 65. AMENDATORY 27A O.S. 2021, Section 2-3-109,
is amended to read as follows:

Section 2-3-109. A. There is hereby created the “Oklahoma
Energy Efficiency and Emission Reduction Program”, to be
administered by the Department of Environmental Quality. The
purpose of the Oklahoma Energy Efficiency and Emission Reduction
Program is to fund activities and projects designed to reduce
regional air pollution.

B. The Oklahoma Legislature finds that any activity or project
that reduces regional air pollution is desirable and advantageous
and serves a compelling public interest. Further, improved air
quality enhances the health and quality of life for the citizens of
Oklahoma, helps maintain the abundant natural beauty and resources
of the state, and fosters the economic well-being of the state by
reducing the potential that the federal government will designate
some or all of the state as in air-quality “nonattainment” status,
resulting in extremely burdensome additional regulatory
requirements.

C. 1. Any funds made available for the Oklahoma Energy
Efficiency and Emission Reduction Program shall be used by the
Department for matching grants to governmental and nongovernmental
entities in Oklahoma to encourage the implementation of recognized

ENR. S. B. NO. 1877 Page 156
air pollution reduction measures, including, but not limited to, the
retrofitting of truck and bus fleets or locomotives to use cleaner
fuels and the installation and implementation of energy efficiency
measures.

2. Grants awarded under the Program shall be limited to ninety-
five percent (95%) of the direct project costs in the case of
governmental entities and seventy-five percent (75%) of the direct
project costs in the case of nongovernmental entities.

3. In making grant awards, the Department shall enter into a
contract or memorandum of agreement with the grantee that includes
conditions and safeguards to ensure that the matching funds are
expended for the purposes specified and that the state receives a
clear benefit from the expenditure. In addition to any other
conditions and safeguards deemed necessary and appropriate:

a. the Department shall require grant recipients to
submit a report within a reasonable time after
construction, installation, or implementation of the
project that summarizes the results, including
emissions reductions achieved and “lessons learned”.
Information from the reports may be used by the
Department in evaluation of future grant applications
or proposals for the Oklahoma Energy Efficiency and
Emission Reduction Program or any similar grant
program and to determine the viability of other
projects or programs that may be proposed to control
or reduce air pollution in the state, and

b. to secure the maximum possible benefit by increasing
awareness of the Oklahoma Energy Efficiency and
Emission Reduction Program, the Department may require
any grant recipient to post notice in a conspicuous
place of participation in the Program and the nature
of the funded project.

4. Before making any grants, the Department shall determine to
its satisfaction that the proposed project will significantly reduce
air pollution within the state. The Department is authorized to set
a deadline for grant applications, and if the total grant funding
sought exceeds the amount available under the Program, the

ENR. S. B. NO. 1877 Page 157
Department shall give priority to those projects that appear to
achieve the maximum public health benefit for citizens of the state.

5. Not more than twenty-five percent (25%) of the total sum
available for grants under the Program shall be awarded to any
single entity. Application of this limit shall not preclude
participation by the recipient in any similar grant program in the
future.

D. If funds are appropriated by the Legislature for the
Oklahoma Energy Efficiency and Emission Reduction Program, not more
than One Hundred Thousand Dollars ($100,000.00) annually of the
funds shall be used by the Department for personnel and other costs
associated with administration and management of the Program, and
for providing technical assistance to entities applying for and
participating in the Program.

E. On or before September 1, 2009, and by September 1 each year
thereafter, the Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit to the Governor, the Speaker of the House of Representatives,
and the President Pro Tempore of the Senate a report on the Oklahoma
Energy Efficiency and Emission Reduction Program. The report shall
outline program expenditures, estimate emission reductions achieved,
and health or environmental benefits associated with those
reductions for the previous fiscal year, and any other information
the Department determines is necessary to aid the Governor and
Legislature in evaluating the Program.

SECTION 66. AMENDATORY 27A O.S. 2021, Section 2-6-501.4,
is amended to read as follows:

Section 2-6-501.4. A. 1. The Department shall not approve any
sludge management plan or issue any permit for the land application
of sludge which contains heavy metal concentrations significantly
above concentration ranges normal to sludges with demonstrated
effectiveness on Oklahoma soils as determined by the Department.
Rules promulgated by the Board for applications for sludge
management plans and permits shall require a study of the effects of
the sludge on the various types of soils and crops found at the
location of the proposed sludge application site. Such study shall

ENR. S. B. NO. 1877 Page 158
encompass the effects of the sludge on the soils and crops during
four (4) growing seasons.

2. B. Any municipality having a sludge management plan approved
prior to May 25, 1992, for the land application of sludge containing
heavy metal concentrations significantly above acceptable
concentration ranges may discontinue such land application of the
sludge or shall develop a corrective action plan containing a
schedule of compliance for reducing the heavy metal concentration to
an acceptable range. The municipality shall submit the corrective
action plan to the Department for approval. If the Department
disapproves of the plan or the municipality fails to comply with the
plan so approved, the Department may require that any such land
applications of sludge by the municipality be discontinued pursuant
to Article II of the Administrative Procedures Act.

B. For developing statewide criteria for application of sludge
which contains heavy metal concentrations significantly above
concentration ranges normal to sludge, the Department shall utilize
a comprehensive study of the potential adverse effects of such
sludge on the soils of this state completed by a qualified research
institute familiar with the crops and soils of this state. Such
study shall be completed by September 1, 1996, and a report of the
findings shall be delivered to the Governor, the President Pro
Tempore of the Senate, the Speaker of the House of Representatives
and the Executive Director no later than September 1, 1996.

SECTION 67. AMENDATORY 27A O.S. 2021, Section 2-7-307,
is amended to read as follows:

Section 2-7-307. The Department shall annually, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit a written report on the use and disposition of
the fund to the Oklahoma State Legislature.

SECTION 68. AMENDATORY 27A O.S. 2021, Section 2-10-802,
is amended to read as follows:

Section 2-10-802. A. 1. Owners or operators of landfill
disposal sites which are not generator-owned and -operated
nonhazardous industrial waste monofills and owners or operators of
commercial incinerators shall install scales. Such scales shall be

ENR. S. B. NO. 1877 Page 159
installed on or within five (5) miles of the landfill disposal site
or incinerator and shall be tested and certified as required by
Section 14-35 of Title 2 of the Oklahoma Statutes relating to the
authority of the State Board of Agriculture to test the standards of
weights and measures within the state and to approve if found to be
correct. For purposes of this section, any reference to
“incinerator” or “incineration” shall encompass waste-to-energy
facilities that produce recoverable energy by high-temperature
combustion.

2. The owner or operator shall upon receipt weigh all waste
received and record the weight in writing. If scales at a disposal
site or incinerator are not operative, tonnage shall be estimated on
a volume basis whereby the volume reported shall be no less than the
volume capacity of the containers or, if none, of the vehicles
delivering the waste, and one cubic yard of solid waste shall be
calculated to weigh one-third (1/3) ton. The owner or operator
shall place notice in the operating record of the disposal site or
incinerator of the time and date at which the scales became
inoperable, describe the steps taken to repair them, and note the
date use was resumed. If daily use has not resumed within thirty
(30) days after the scales became inoperable, the owner or operator
shall give written notice to the Department of Environmental
Quality.

3. The owner or operator shall also maintain a written record
of the weight or volume of any solid waste received which is
productively reused or recovered in materially the same form as when
received and sold in accordance with the permit for the landfill
disposal site or incinerator.

4. The scale location restriction of this subsection shall not
apply to federal or state military installations so long as:

a. the scales are located within the physical boundary of
that installation, and

b. the disposal site or incinerator receives waste only
from that military installation.

B. 1. Except as otherwise provided by this subsection:

ENR. S. B. NO. 1877 Page 160
a. owners and operators of landfill disposal sites or
commercial incinerators which receive an average of
less than one hundred (100) tons of solid waste per
operating day shall assess a fee of One Dollar and
fifty cents ($1.50) per ton of solid waste received
for disposal or incineration. A total of fifty cents
($.50) per ton of such fee shall be retained by the
owner or operator and used exclusively for capital
improvement to their facilities and for the projects
required pursuant to the Oklahoma Solid Waste
Management Act or the permit for the disposal site or
incinerator for such period of time necessary to
recoup a capital investment, plus the interest costs
expended in purchasing the scales, of a total of Forty
Thousand Dollars ($40,000.00),

b. when the owner or operators have recouped a capital
investment of the total specified in subparagraph a of
this paragraph, the fee to be assessed shall be One
Dollar and twenty-five cents ($1.25) per ton of solid
waste received for disposal or incineration. At such
time, for a return with remittance filed on or before
the due date, the owner or operator may deduct and
retain ten percent (10%) of the fees collected, and

c. records documenting the projects and use of the funds
shall be included with each return.

2. a. Owners and operators of landfill disposal sites or
commercial incinerators which receive an average of
more than one hundred (100) tons of solid waste per
operating day shall assess a fee of One Dollar and
fifty cents ($1.50) per ton of solid waste received
for disposal or incineration, retaining twenty-five
cents ($0.25) per ton for a period of time necessary
to recoup a capital investment, plus the interest
costs expended in purchasing the scales, of Forty
Thousand Dollars ($40,000.00). At the end of such
period the fee shall revert to One Dollar and twenty-
five cents ($1.25) per ton. For a return with
remittance filed on or before the due date, the owner

ENR. S. B. NO. 1877 Page 161
or operator may deduct and retain ten percent (10%) of
the fees collected.

b. Records documenting the capital investment and the use
of the funds shall be included with each return.

3. Owners and operators of commercial composting facilities
shall assess a fee of One Dollar and twenty-five cents ($1.25) per
ton of all composting material received.

4. a. Owners and operators of landfill disposal sites or
commercial incinerators may be reimbursed for capital
investment costs that have been or will be expended
for the purchase and installation of a wheel wash
system for use at the landfill disposal site or
commercial incinerator facility. To be eligible to
claim this reimbursement, the owner or operator must
shall notify the Department no later than January 1,
2011, of the intent to claim the reimbursement, and
the wheel wash system must shall be in place and
operational no later than January 1, 2012.
Reimbursement shall be paid only after the wheel wash
system is installed and operational and each landfill
disposal site or commercial incinerator shall be
eligible for reimbursement for only one wheel wash
system.

b. The owner or operator shall provide records
documenting the capital investment costs of the wheel
wash system to the Department.

c. At such time as the wheel wash system is in place and
operational and the capital investment costs have been
approved by the Department, the Department shall
reimburse the owner or operator the approved costs,
subject to the limitations in subparagraph d of this
paragraph. The Department shall reimburse eligible
applicants in the order of approval until that
limitation has been reached. If there are multiple
eligible applicants awaiting reimbursement, the
Department shall apportion the reimbursement amount

ENR. S. B. NO. 1877 Page 162
among the eligible applicants according to the capital
investment costs approved by the Department.

d. If the total amount reimbursed to all eligible owners
and operators reaches Fifty Thousand Dollars
($50,000.00) within any state fiscal year, the
Department shall notify the owners and operators, and
thereafter the owners and operators shall not receive
any reimbursement until the next state fiscal year.

e. The Environmental Quality Board is authorized to
promulgate rules as necessary to implement the
provisions of the Solid Waste Management Act,
including rules specifying minimum standards or other
criteria for wheel wash systems necessary to qualify
for the reimbursement.

5. The fee assessed by paragraph 1 or 2 of this subsection
shall not be imposed on:

a. the solid waste received which is productively reused
or recovered in materially the same form as when
received in accordance with the permit for the
landfill disposal site or incinerator. The owner or
operator shall include records pertaining to this fee
exemption in the quarterly return of fees to the
Department,

b. generator-owned and -operated nonhazardous waste land
disposal monofills and waste subject to a fee pursuant
to Section 2-10-803 of this title. For emergencies
and other special events, the Department and the owner
or operator of a site subject to this section may
enter into a formal agreement to waive the fee, and

c. ash produced as a result of the combustion in a
commercial incinerator of waste on which the fee
imposed by this section has been paid.

6. Large industrial waste generators who generate over ten
thousand (10,000) tons of nonhazardous industrial solid waste in the
state in a calendar year may annually apply to the Department for a

ENR. S. B. NO. 1877 Page 163
certificate exempting the disposal or incineration of such generated
waste in excess of ten thousand (10,000) tons from the disposal and
incineration fee authorized by this section. An applicant must
shall have implemented a pollution prevention plan for such waste
and filed it with the Department, provided operational documentation
regarding such plan and paid the disposal and incineration fee on
ten thousand (10,000) tons of the waste during the calendar year of
application. The Department-issued exemption certificates shall be
valid for the remainder of the calendar year of application, may
contain conditions, and, upon presentation by authorized persons,
shall be recognized by owners or operators of landfill disposal
sites and incinerators subject to this section. If a generator
operates a landfill or incinerator solely for waste from that
generator, and if that generator chooses to seek the exemption
authorized by this paragraph, the generator shall not be required to
install scales or keep records relative to quantity of waste
received for the landfill or incinerator.

7. The fee assessed by paragraph 1 or 2 of this subsection
shall be imposed for all nonhazardous solid wastes accepted for
disposal at a site or facility to which a solid waste or hazardous
waste permit has been issued by the Department of Environmental
Quality, and is to be a charge to waste producers in addition to any
charges specified in any contract or elsewhere. The fee shall be
imposed upon and passed through to disposers of waste using the
facility.

8. The owner or operator of a solid waste disposal site or
incinerator and the owner or operator of a commercial composting
facility shall collect the fee levied pursuant to this subsection as
trustee for the state and shall prepare and file with the Department
quarterly returns indicating:

a. the total tonnage of solid wastes or material for
composting received for disposal, incineration or
composting at the gate of the site, and

b. the total amount of the fees collected pursuant to
this section.

9. Not later than thirty (30) days after the end of the quarter
to which such a return applies, the owner or operator shall mail to

ENR. S. B. NO. 1877 Page 164
the Department the return for that quarter together with the fees
collected during that quarter as indicated on the return.

10. The owner or operator may receive an extension of not more
than thirty (30) days for filing the return and remitting the fees,
provided that:

a. the owner or operator has submitted a request for an
extension in writing to the Department together with a
detailed description of why the extension is
requested,

b. the Department has received the request not later than
the day on which the return is required to be filed,
and

c. the Department has approved the request.

11. For any quarterly return filed more than thirty (30) days
after the last day of the quarter or extension date, the owner or
operator shall remit an additional five percent (5%) of the fees
collected during the month to which the return applies. If the fees
are not remitted within sixty (60) days of the last day of the
quarter during which they were collected, the owner or operator
shall pay an additional fifteen percent (15%) of the amount of the
fees for each month that they are late.

12. If the owner or operator misrepresents, or fails to
properly measure or record, the amount of waste received or fails to
remit fees within sixty (60) days after the last day of the quarter
during which they were collected, the permit for the landfill
disposal site, incinerator or commercial composting facility shall
be summarily suspended by order and the Department shall initiate
the process of revoking the permit and may require closure of the
landfill, incinerator or commercial composting facility.

C. 1. The Department shall expend funds collected pursuant to
the provisions of this section solely for the administration and
enforcement of the provisions of the Oklahoma Solid Waste Management
Act and for the development of solid waste technical assistance
programs, solid waste public environmental education programs and
educational curricula, solid waste studies, development of a

ENR. S. B. NO. 1877 Page 165
statewide solid waste plan, solid waste recycling and litter
prevention programs, and other environmental improvements.

2. In order to assist the Department of Environmental Quality
regarding its responsibilities relating to the promotion of
recycling of solid waste, each fiscal year the Department shall
contract with units of local government, political subdivisions of
this state, components of The Oklahoma State System of Higher
Education, local and statewide organizations representing
municipalities or counties, or substate planning districts
recognized by the Oklahoma Department of Commerce, for up to a total
of One Hundred Thousand Dollars ($100,000.00) and to the extent such
monies are available for projects promoting the recycling of solid
waste. Local governments, political subdivisions of this state,
components of The Oklahoma State System of Higher Education, local
and statewide organizations representing municipalities and counties
and substate planning districts recognized by the Oklahoma
Department of Commerce desiring to contract with the Department for
such projects shall meet the application requirements of rules
promulgated by the Environmental Quality Board and the criteria
established by a recycling priorities plan prepared annually by the
Department after review and comment by the Solid Waste Management
Advisory Council. Except as otherwise provided by this section,
contracts for such projects shall not be granted to state agencies.

3. Any litter prevention program shall be developed by the
Department in conjunction with the Department of Transportation.

4. a. To the extent that funds are available, the Department
may also reimburse any governmental entity for
equipment other than motor vehicles or buildings to
separate, process, modify, convert or treat solid
waste or recovered materials so that the resulting
product is being used in a productive manner.

b. The reimbursements shall be from solid waste fee funds
and shall not exceed twenty-five percent (25%) of the
person’s total project costs. No reimbursement may be
larger than Twenty Thousand Dollars ($20,000.00).

c. Reimbursements must shall be expended in accordance
with rules promulgated by the Environmental Quality

ENR. S. B. NO. 1877 Page 166
Board and criteria established through the
Department’s annual recycling priorities plan. The
Department shall not expend more than Two Hundred
Thousand Dollars ($200,000.00) in each fiscal year for
such reimbursements, nor shall the Department
reimburse used tire recycling facilities that may be
eligible for compensation from the Used Tire Recycling
Indemnity Fund.

5. a. The Department, in conjunction with the Corporation
Commission, the Oklahoma Energy Resources Board and
the Oklahoma Conservation Commission, may develop a
plan to use suitable portions of the solid waste
stream to reclaim Oklahoma lands damaged by oil and
gas exploration and production or by mining
activities.

b. To the extent that funds are available, the Department
may use up to ten percent (10%) of the annual income
from the fees received pursuant to the provisions of
this section to implement the plan. The Department
may use its discretion in administering the funds for
the purpose of this paragraph, but shall keep records
subject to audit by the State Auditor and Inspector
for good business practices.

6. a. To the extent that funds are available, after having
reasonably met other specified uses of the solid waste
fund, the Department is authorized to expend up to
five percent (5%) of the total annual solid waste fee
income for the purpose of making incentive payments to
any person, firm or corporation located in this state
generating energy by utilizing solid waste landfill
methane or steam produced by a commercial incinerator.

b. The Environmental Quality Board shall promulgate rules
to administer the provisions of this paragraph.

c. No person, firm or corporation shall be eligible to
receive incentive payments as provided in subparagraph
a of this paragraph for more than three (3) years.
The amount of such payments shall be determined by the

ENR. S. B. NO. 1877 Page 167
Department based on the amount of energy generated and
the cost of production.

D. The provisions of this section shall not apply to landfill
disposal sites that receive only ash generated by the burning of
coal.

E. On or before September 1 of each year, the Department of
Environmental Quality shall prepare a report of income and
expenditures for the period of each fiscal year in which solid waste
fee monies authorized by this section were received and such report
shall be distributed to members of the Solid Waste Management
Advisory Council for review. By November 1 of each year, the
Council shall, utilizing the centralized filing system provided for
in Section 378 of this act, electronically submit to the Executive
Director, Governor, Speaker of the House of Representatives, and
President Pro Tempore of the Senate its written comments on the
comparison of income with program expenditures.

SECTION 69. AMENDATORY 27A O.S. 2021, Section 2-11-
401.6, as amended by Section 22, Chapter 282, O.S.L. 2022 (27A O.S.
Supp. 2025, Section 2-11-401.6), is amended to read as follows:

Section 2-11-401.6. A. 1. The Oklahoma Tax Commission shall
promulgate rules to carry out the provisions of the Oklahoma Used
Tire Recycling Act which pertain to the remittance of fees and to
the payment of monies accruing to the Used Tire Recycling Indemnity
Fund.

2. Upon receipt of any referral from the Department of
Environmental Quality, as set out in paragraph 7 of subsection B of
this section, it shall be the duty of the Tax Commission to promptly
undertake proceedings in accordance with the recommendations of the
Department. The Tax Commission shall timely report the results of
the proceedings to the Department.

3. On a monthly basis, the Tax Commission shall provide to the
Department a report of the fees remitted by each tire dealer and
licensed operator pursuant to Section 2-11-401.2 of this title.

B. 1. The Department of Environmental Quality shall prescribe
forms, containing documentation as required by the Oklahoma Used

ENR. S. B. NO. 1877 Page 168
Tire Recycling Act, to be used by a used tire recycling facility,
TDF facility, or person, corporation or other legal entity
authorized to receive reimbursement.

2. On at least a monthly basis, the Department shall evaluate
and process applications and shall report to the Tax Commission
compliance and allocation information necessary for the Tax
Commission to issue payment of monies from the fund.

3. The Department shall make periodic inspections of applicants
for compensation to ensure compliance with the provisions of Section
2-11-401.4 of this title. The Department shall submit a summary of
the results of those inspections in an annual report to the office
of the State Auditor and Inspector.

4. The Environmental Quality Board shall promulgate rules for
the permitting of used tire recycling facilities under the Oklahoma
Solid Waste Management Act and for the certification of any entity
to receive compensation under the provisions of the Oklahoma Used
Tire Recycling Act.

5. The Department shall file a report with the Legislature and
the Governor detailing the administration of the Oklahoma Used Tire
Recycling Act and its effectiveness in bringing about the cleanup of
existing used tire dumps and in preventing the development of new
dumps. The first report shall be filed by no later than December
31, 1992. Subsequent reports shall be filed every three (3) years
thereafter.

6. In developing the priority cleanup list, the Department
shall prioritize those dumps where the landowner was a victim of
illegal dumping. Any other tire dump may be placed on the priority
cleanup list in cases where the administrative enforcement process
has been exhausted, and in such case, the Department may provide for
the cleanup of the dump pursuant to Section 2-11-401.7 of this
title.

7. The Department shall make periodic inspections of tire
dealers and licensed operators throughout this state to ensure
compliance with the provisions of Section 2-11-401.2 of this title.
Upon a finding of any failure to properly remit the appropriate fee
to the Tax Commission, the Department shall give written notice to

ENR. S. B. NO. 1877 Page 169
the alleged violator and may commence administrative enforcement
proceedings or civil proceedings in conformance with the provisions
of Sections 2-3-502 and 2-3-504 of this title. If the Department
determines that the fee has not been paid and there is no reasonable
cause for the nonpayment, the Department may assess a penalty of
double the amount that should have been remitted, to be added to the
delinquent fee. If the Department determines any tire dealer or
licensed operator has demonstrated a flagrant or repeated disregard
of the provisions of Section 2-11-401.2 of this title, it shall
refer such determination to the Tax Commission.

C. 1. By August 1, 1994, and every even year thereafter, the
State Auditor and Inspector shall perform or shall contract with an
auditor or auditing company to perform an independent audit, as
defined in paragraph 4 of subsection B of Section 212 of Title 74 of
the Oklahoma Statutes, of the books, records, files and other such
documents of the Tax Commission and the Department pertaining to the
administration of the Fund. The audit shall include, but shall not
be limited to, a review of agency and claimant compliance with state
statutes regarding the Fund, internal control procedures, adequacy
of claim process expenditures from and debits of the Fund regarding
reimbursements, administration, personnel, operating and other
expenses charged by the Tax Commission and Department, and the
duties performed in detail by agency personnel and Fund personnel
for which payment is made from the Fund. In addition the audit
shall include recommendations for improving claim processing,
equipment needed for claim processing, internal control, or
structure for administering the Fund, and such other areas deemed
necessary by the State Auditor and Inspector.

2. The cost of the audit shall be borne by the Fund, pursuant
to the limits and provisions of Section 2-11-401.4 of this title.

3. Copies of the audit shall be electronically submitted to the
Governor, the Speaker of the House of Representatives, the President
Pro Tempore of the Senate, and the Chairs of the Appropriations
Committee of both the Oklahoma House of Representatives and the
Oklahoma State Senate utilizing the centralized filing system
provided for in Section 378 of this act.

SECTION 70. AMENDATORY 27A O.S. 2021, Section 2-11-607,
is amended to read as follows:

ENR. S. B. NO. 1877 Page 170

Section 2-11-607. A. The Department of Environmental Quality
shall assist in educating consumers about collection and recovery of
covered devices. This shall include hosting, or designating another
person to host, a web site for consumers about the collection and
recovery of covered devices. The web site shall provide information
about and links to manufacturers’ collection and recovery
information, including their recovery plans, and information about
and links to information for covered devices, including information
about collection events, collection sites, and community recycling
programs. Inclusion on such web site is not a determination by the
state that the manufacturer’s recovery plan or practices are in
compliance with this act or other laws.

B. The Department shall maintain and make available:

1. A list of registered manufacturers who have adopted and
implemented a recovery plan, as required by this act; and

2. A separate list of manufacturers whose registered recovery
plan permits consumers to return for collection and recovery other
manufacturers’ brands of covered devices, including orphan devices.
Manufacturers shall be included on this list of beyond-brand
collection plans if such plan:

a. provides recycling grants or collection events for
covered devices other than that manufacturer’s covered
devices,

b. requires a consumer who purchases a new covered
electronic device from the manufacturer to return
another manufacturer’s branded covered device, in
which case the manufacturer may require the consumer
to pay for transportation or shipping, or

c. provides for use of other collection or recovery
methods that are approved by the Department.

C. The Department shall file each recovery plan and annual
report submitted by a manufacturer. The Department shall make
recovery plans and annual reports available to the public pursuant
to the Oklahoma Open Records Act.

ENR. S. B. NO. 1877 Page 171

D. The Department shall produce a schedule of collection
events, based on the manufacturers’ submitted recovery plans.

E. The Department shall by July 1 of each year produce and,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit to the Governor, the President
Pro Tempore of the Senate, and Speaker of the House of
Representatives a summary of the recovery program annual reports
filed by the manufacturers.

F. The Department may conduct audits and inspections to
determine compliance with the provisions of this act and take
enforcement action against any manufacturer, retailer, or recoverer
for failure to comply with any provisions of this act.

G. In addition to any other remedies provided by law, the
Department may assess a penalty of up to One Thousand Dollars
($1,000.00) for the first violation, and up to Five Thousand Dollars
($5,000.00) for the second and each subsequent violation, against
any manufacturer who fails to label its covered devices or to adopt
and implement a recovery plan as required by this act.

H. The Environmental Quality Board may promulgate rules
necessary to implement the provisions of this act, including the
adoption of fees pursuant to the provisions of Section 2-3-402 of
Title 27A of the Oklahoma Statutes as necessary to cover the costs
of administering the program. The Board may adopt by reference
standards developed by the Institute of Scrap Recycling Industries,
Inc., or other recognized practices, procedures, or standards.

SECTION 71. AMENDATORY 27A O.S. 2021, Section 3-2-106,
as amended by Section 1, Chapter 326, O.S.L. 2025 (27A O.S. Supp.
2025, Section 3-2-106), is amended to read as follows:

Section 3-2-106. A. In addition to other powers and duties
specified by law and except as otherwise provided by law, the
Oklahoma Conservation Commission shall have the power and duty to:

1. Offer the assistance as may be appropriate to the directors
of conservation districts in the carrying out of any of their powers
and programs and to:

ENR. S. B. NO. 1877 Page 172

a. assist and guide districts in the preparation and
carrying out of programs for resource conservation
authorized under the Conservation District Act,

b. review district programs,

c. coordinate the programs of the several districts and
resolve any conflicts in such programs, and

d. facilitate, promote, assist, harmonize, coordinate,
and guide the resource conservation programs and
activities of districts as they relate to other
special purpose districts, counties, and other public
agencies;

2. Keep the directors of each of the several districts informed
of the activities and experience of all other districts, and
facilitate an interchange of advice and experience between the
districts and cooperation between them;

3. Enter into contracts and agreements and execute such
instruments in the judgment of the Commission as are necessary,
beneficial, or convenient toward the exercise of any of the
Commission’s powers conferred upon it by law. This includes, but is
not limited to, creating shared positions, administering statewide
programs with districts, and exploring funding sources for
conservation programs, practices, and pilot projects;

4. Review agreements, or forms of agreements, proposed to be
entered into by districts with other districts or with any state,
federal, tribal, interstate, or other public or private agency,
organization, or individual, and advise the districts concerning the
agreements or forms of agreements;

5. Secure the cooperation and assistance of the United States
and any of its agencies, any tribe, agencies of this state, other
entities, or individuals in the work of the Commission or districts;

6. Accept donations, grants, gifts and contributions in money,
services, or otherwise from the United States or any of its
agencies, tribes, the state or any of its agencies, other entities,

ENR. S. B. NO. 1877 Page 173
or individuals in order to carry out the purposes of the
Conservation District Act;

7. Disseminate information throughout the state concerning the
activities and programs of the conservation districts and make
available information concerning the needs and the work of the
conservation districts and Commission to the Governor, the
Legislature, executive agencies of the government of this state,
political subdivisions of this state, cooperating federal agencies,
and the general public;

8. Serve along with conservation districts as the official
state agencies for cooperating with the Natural Resources
Conservation Service of the United States Department of Agriculture
and carrying on conservation operations within the boundaries of
conservation districts;

9. Cooperate with and give such assistance as it deems
necessary and proper to conservancy districts, watershed
associations, and other special purpose districts in the State of
Oklahoma for the purpose of cooperating with the United States
through the Secretary of Agriculture in the furtherance of
conservation pursuant to the provisions of the Federal Watershed
Protection and Flood Prevention Act, as amended;

10. Recommend the inclusion in annual and longer-term budgets
and appropriation legislation of the State of Oklahoma of funds
necessary for appropriation by the Legislature to finance the
activities of the Commission and the conservation districts and to:

a. administer the provisions of the Conservation District
Act hereafter enacted by the Legislature appropriating
funds for expenditure in connection with the
activities of conservation districts,

b. distribute to conservation districts funds, equipment,
supplies, and services received by the Commission for
that purpose from any source, subject to such
conditions as shall be made applicable thereto in any
state or federal statute or local ordinance making
available such funds, property, or services,

ENR. S. B. NO. 1877 Page 174
c. issue guidelines and suitable controls to govern the
use by conservation districts of funds, property, and
services, and

d. review all budgets, administrative procedures, and
operations of such districts and advise the districts
concerning their conformance with applicable laws and
regulations;

11. Enlist the cooperation and collaboration of state, federal,
tribal, regional, interstate, local, public, and private agencies
with the conservation districts and facilitate arrangements under
which the conservation districts may serve county governing bodies
and other agencies as their local operating agencies in the
administration of any activity concerned with the conservation of
renewable natural resources;

12. Pursuant to procedures developed mutually by the Commission
and federal, tribal, state, and local agencies that are authorized
to plan or administer activities significantly affecting the
conservation of renewable natural resources, receive from these
agencies for review and comment suitable descriptions of their
plans, programs, and activities for purposes of coordination with
district conservation programs and to arrange for and participate in
conferences necessary to avoid conflict among plans and programs, to
call attention to omissions, and to avoid duplication of effort;

13. Compile information and make studies, summaries, and
analyses of district programs in relation to each other and to other
resource conservation programs on a statewide basis;

14. Except as otherwise assigned by law, carry out the policies
of this state in programs at the state level for the conservation of
the renewable natural resources of this state and represent the
state in matters affecting such resources;

15. Assist conservation districts in obtaining legal services
from state and local legal officers;

16. Require annual reports from conservation districts, the
form and content of which shall be developed by the Commission in
consultation with the district directors;

ENR. S. B. NO. 1877 Page 175

17. Establish by rules, with the assistance and advice of the
State Auditor and Inspector, adequate and reasonably uniform
accounting and auditing procedures that shall be used by
conservation districts;

18. Conduct workshops for district directors to instruct them
on the subjects of district finances, the Conservation District Law
and related laws, and their duties and responsibilities as
directors;

19. Assist and supervise districts in carrying out their
responsibilities in accordance with Oklahoma laws;

20. Have power, by administrative order, upon the written
request of the board of directors of the conservation district or
districts involved, with a showing that such request has been
approved by a majority vote of the members of each of the boards
involved, to:

a. transfer lands and assign easements from one district
established under the provisions of the Conservation
District Act to another,

b. divide a single district into two or more districts,
each of which shall thereafter operate as a separate
district under the provisions of the Conservation
District Act, and

c. consolidate two or more districts established under
the provisions of the Conservation District Act, which
consolidated area shall operate thereafter as a single
district under the provisions of the Conservation
District Act;

21. Except as otherwise provided by law, act as the management
agency having jurisdiction over and responsibility for directing
nonpoint source pollution prevention programs outside the
jurisdiction or control of cities or towns in Oklahoma. The
Commission, otherwise, shall be responsible for all identified
nonpoint source categories except silviculture, urban stormwater
runoff and industrial runoff;

ENR. S. B. NO. 1877 Page 176

22. Establish and maintain an Equipment Revolving Fund for the
purpose of loaning conservation districts funds to purchase
equipment to be used for the installation of conservation practices.
The fund shall consist of all monies appropriated to, deposited in
or credited to the fund;

23. Administer cost-share programs to carry out conservation or
best management practices on the land to benefit the public through
the prevention or reduction of soil erosion and nonpoint source
pollution and general resource management. The Commission is not
authorized to implement mandatory compliance with management
practices, except as otherwise provided by law, to abate
agricultural nonpoint source pollution;

24. Plan watershed-based nonpoint source pollution control
activities, including the development and implementation of
conservation plans for the improvement and protection of the
resources of the state;

25. Assist the Oklahoma Water Resources Board on lake projects
through stream and river monitoring, assessing watershed activities
impacting lake water quality, and assisting in the development of a
watershed management plan;

26. Maintain the activities of the state’s nonpoint source
working group;

27. Prepare, revise, and review Oklahoma’s nonpoint source
management program and nonpoint source assessment report in
coordination with other state environmental agencies and compile a
comprehensive assessment for the state every five (5) years. The
management program and assessment report shall be electronically
distributed to the Governor, Secretary of Energy and Environment,
the President Pro Tempore of the Oklahoma State Senate, and the
Speaker of the Oklahoma House of Representatives utilizing the
centralized filing system provided for in Section 378 of this act;

28. Under the direction of the Office of the Secretary of
Energy and Environment, develop and implement the state’s nonpoint
source water quality monitoring strategy in coordination with other
environmental agencies;

ENR. S. B. NO. 1877 Page 177

29. Monitor, evaluate, and assess the waters of the state to
determine the condition of streams and rivers impacted by nonpoint
source pollution. In carrying out this area of responsibility, the
Conservation Commission shall serve as the technical lead agency for
nonpoint source pollution categories as defined in Section 319 of
the Federal Clean Water Act or other subsequent federal or state
nonpoint source programs;

30. Administer the Blue Thumb Program;

31. Enter into agreements or contracts for services with any of
the substate planning districts recognized by the Oklahoma
Department of Commerce;

32. Cooperate with the federal government, or any agency
thereof, to participate in and coordinate with federal programs that
will yield additional federal funds to the state for programs within
the jurisdiction of the Conservation Commission. This participation
shall be subject to the availability of state funds;

33. Implement pilot projects and programs, subject to the
availability of funds, that will demonstrate the latest technologies
and applications in conservation programs that may provide direct or
residual benefits to conservation practices in the state; and

34. Promulgate rules necessary, expedient, or appropriate to
carry out the purposes, objectives, or provisions or appropriate to
the performance of the Conservation District Act and the Oklahoma
Carbon Sequestration Enhancement Act and:

a. may establish and collect fees for services provided
pursuant to the Conservation District Act and the
Oklahoma Carbon Sequestration Enhancement Act,
including any services for the certification or
verification of sustainable agricultural production
practices, including but not limited to, the Natural
Resources Conservation Service Soil Condition Index,
and

b. shall promulgate all rules establishing fees in
accordance with the Administrative Procedures Act,

ENR. S. B. NO. 1877 Page 178
which fees shall be fair and equitable to all parties
concerned.

B. Nothing in this act shall take away any of the present
duties or responsibilities delegated by law or constitution to other
environmental agencies.

SECTION 72. AMENDATORY 27A O.S. 2021, Section 3-2-107,
is amended to read as follows:

Section 3-2-107. A. The Conservation Commission may establish
and maintain an environmental and natural resources geographic data
base system. Such system shall include but not be limited to
pollution complaints filed with the state environmental agencies and
state agencies with limited environmental responsibilities,
resolutions of complaints and such other data as funds become
available and as may be desirable and necessary to provide public
access to specific site information.

B. Not more than once each month, each state environmental
agency and state agency with limited environmental responsibilities
shall submit to the Conservation Commission a report listing the
environmental pollution complaints received during the previous
month. The report shall include the name of the complainant, if
known, the address of the complainant, the location involved in the
complaint, the name of the person or company and address thereof
alleged to be responsible for the pollution and how the complaint
was resolved. The report shall be in such form and made in such
manner as is required by the Commission. The report shall be in
writing or may be submitted in electronic data or machine-readable
form at the discretion of the Commission.

C. The Commission shall annually, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a report to the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, and the
Governor containing the total number of pollution complaints filed,
the total number of complaints and type of complaints addressed by
each state environmental agency, the total number of such complaints
resolved, the total number of complaints remaining to be resolved,
the average time frame for resolving such complaints, and the
historical comparison of complaint resolution in previous years, and

ENR. S. B. NO. 1877 Page 179
any other information which the Commission believes is pertinent in
regard to pollution complaints.

D. The Conservation Commission may recover costs incurred in
duplicating any reports made pursuant to the provisions of this
section.

E. The Department of Environmental Quality shall routinely
provide the Conservation Commission with a list of permit approvals
for inclusion in the Commission’s data base.

SECTION 73. AMENDATORY 27A O.S. 2021, Section 3-2-108,
is amended to read as follows:

Section 3-2-108. A. The Commission is hereby given exclusive
jurisdiction to prepare a Wetlands Management Strategy for the State
of Oklahoma. The Strategy shall:

1. Define wetlands;

2. Enumerate their beneficial uses;

3. Identify and inventory wetlands within this state;

4. Recommend measures to mitigate losses of wetlands;

5. Provide measures to protect wetlands; and

6. Define standards for critical wetlands and measures to
ensure protection of property rights of landowners.

B. Upon completion, the Conservation Commission is to forward
the Wetlands Management Strategy for the State of Oklahoma and to,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit said such Strategy to the
President Pro Tempore of the Oklahoma Senate, the Speaker of the
Oklahoma House of Representatives, and to the Secretary of the
Environment or successor secretary position.

SECTION 74. AMENDATORY 29 O.S. 2021, Section 3-103, as
amended by Section 1, Chapter 6, O.S.L. 2024 (29 O.S. Supp. 2025,
Section 3-103), is amended to read as follows:

ENR. S. B. NO. 1877 Page 180

Section 3-103. A. The Oklahoma Wildlife Conservation
Commission shall constitute an advisory, administrative, and
policymaking board for the protection, restoration, perpetuation,
conservation, supervision, maintenance, enhancement, and management
of wildlife in this state as provided in the Oklahoma Wildlife
Conservation Code.

B. The Director shall consult with the Commission regarding the
administration of the affairs of the Department of Wildlife
Conservation. The Commission is authorized and empowered to require
from the Director complete reports and information relative to the
affairs of the Department at the time and in the manner the
Commission may deem advisable.

C. The Commission shall meet in regular session at least nine
times per year not to exceed one meeting per month with not more
than two consecutive calendar months between meetings and in special
sessions as may be called by the Chair or a majority of the
Commission. The Commission may hold any regular or special session
at any location within this state. Should a location be chosen
other than Commission headquarters in Oklahoma City for a regular or
special meeting, notice shall be posted at Commission headquarters
in Oklahoma City and advertised in the local newspaper of the city
in which the meeting is to be held, at least one time during each of
the two (2) weeks prior to the meeting. The advertisements shall
include time, date, and address of location of the meeting.

D. In addition to the other powers and duties prescribed by
law, the Commission shall:

1. Institute an affirmative action plan for hiring women and
minorities throughout the agency;

2. Elect a chair, vice chair, and secretary, who shall perform
the duties required of them by statutes, rules of the Commission,
and the Constitution of the State of Oklahoma. The chair, vice
chair, and secretary shall receive no extra compensation;

3. Appoint a Director, and determine the qualifications of the
Director and all assistants and employees. A Commissioner shall not
be eligible for employment in any position within the Department;

ENR. S. B. NO. 1877 Page 181

4. Prescribe rules and policies for the transaction of its
business and the control of the Department;

5. Develop and implement a plan to provide step raises for
Commission employees so that discrepancies of pay levels within a
pay grade are eliminated;

6. Acquire by purchase, lease, gift, or devise, waters, real
property, and personal property incident to the exercise of its
functions and to maintain, operate, and dispose of the same;

7. Acquire real property by condemnation only when the Attorney
General or other counsel deems it an appropriate means of clearing
title from willing or unavailable sellers;

8. Supervise the establishment, extension, improvement, and
operation of the wildlife refuges, propagation areas or stations,
public hunting areas, public fishing areas, game management areas,
and fish hatcheries;

9. Prescribe the manner of cooperation with the Oklahoma
Tourism and Recreation Department, colleges and universities within
the state, other state agencies, any agency of the federal
government, and any city, town, school district, or any other agency
or organization in study of conservation and propagation of wildlife
and in the establishment, maintenance, and operation of visual
educational facilities, recreational facilities, and hunting and
fishing facilities, in the study and propagation of wildlife;

10. Supervise the letting of all contracts and purchases for
the Department, with all purchases of personal property to be made
through the Office of Management and Enterprise Services;

11. Authorize all claims or expenditures prior to incurring
payment except as otherwise provided in this Code;

12. Prescribe rules on the use of Department-owned vehicles by
the Director, department heads and other essential employees as the
Commission deems necessary in order to perform their duties;

ENR. S. B. NO. 1877 Page 182
13. Prescribe rules for the sale of all regular or special
licenses;

14. Publicize and encourage the conservation and appreciation
of wildlife and all other natural resources;

15. Regulate the seasons and harvest of wildlife;

16. Promulgate rules to sell fishing and hunting licenses via
the Internet;

17. Annually report, by electronic submission utilizing the
centralized filing system provided for in Section 378 of this act,
to the Governor and the Legislature on the complete operation,
activities, and plans of the Department, together with such
recommendations for future activities as the Commission may deem to
be in the best interest of the state; and

18. Provide the Governor and the Legislature with an annual
inventory of all property and equipment.

E. Five (5) years after the effective date of this act, and
every five (5) years thereafter, the Commission shall prepare a
report for the Legislature with proposed licensing fees based on the
latest Consumer Price Index year-to-date percent change release as
of the date of the annual average county wage data release from the
Bureau of Economic Analysis of the U.S. Department of Commerce for
Legislature approval or rejection.

SECTION 75. AMENDATORY 29 O.S. 2021, Section 3-306, is
amended to read as follows:

Section 3-306. A. There is hereby created an Oklahoma Wildlife
Conservation Department Retirement Fund for the purpose of providing
revenues for any retirement plan adopted by the Commission for the
employees of the Department.

B. The method of calculation of benefits shall be the same for
all employees covered under any plan adopted pursuant to this
section.

ENR. S. B. NO. 1877 Page 183
C. No retirement plan adopted pursuant to this section shall
pay any benefits or vest any benefits based on years of service
credit related to years a plan member did not work or provide other
public service.

D. The Oklahoma Department of Wildlife Conservation shall
compile a quarterly financial report of all the funds of the
Oklahoma Wildlife Conservation Department Retirement Fund on a
fiscal year basis. The report shall be compiled pursuant to uniform
reporting standards prescribed by the Oklahoma State Pension
Commission for all state retirement systems. The report shall
include several relevant measures of investment value, including
acquisition cost and current fair market value with appropriate
summaries of total holdings and returns. The report shall contain
combined and individual rate of returns of the investment managers
by category of investment, over periods of time. The Department
shall include in the quarterly reports all commissions, fees or
payments for investment services performed on behalf of the
Department. The report shall be electronically distributed to the
Governor, the Oklahoma State Pension Commission, the Legislative
Service Bureau, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate utilizing the centralized filing
system provided for in Section 378 of this act.

E. Except as otherwise provided by this section, the right of a
person to an annuity or a retirement allowance, to the return of
contributions, annuity, or retirement allowance itself, any optional
benefit, or any other right accrued or accruing to any person under
the provisions of this section, the monies in the Oklahoma Wildlife
Conservation Department Retirement Fund, are hereby exempt from levy
and sale, garnishment, attachment or any other process whatsoever,
and shall be unassignable except as in this section specifically
provided.

F. 1. The provisions of subsection E of this section shall not
apply to a qualified domestic order as provided pursuant to this
subsection.

2. The term “qualified domestic order” means an order issued by
a district court of this state, pursuant to the domestic relations
laws of the State of Oklahoma, which relates to the provision of
marital property rights to a spouse or former spouse of a member of

ENR. S. B. NO. 1877 Page 184
any retirement fund created pursuant to subsection A of this
section, or to the provision of support for a minor child or
children, and which creates or recognizes the existence of the right
of an alternate payee, or assigns to an alternate payee the right,
to receive a portion of the benefits payable with respect to a
member and amounts payable to a plan participant of any retirement
plan created pursuant to subsection A of this section.

3. For purposes of the payment of marital property, to qualify
as an alternate payee, a spouse or former spouse must shall have
been married to the related member for a period of not less than
thirty (30) continuous months immediately preceding the commencement
of the proceedings from which the qualified domestic order issues.

4. A qualified domestic order is valid and binding on the
Commission or the entity responsible for the Retirement Fund and the
related member only if it meets the requirements of this subsection.

5. A qualified domestic order shall clearly specify:

a. the name and last-known mailing address, if any, of
the member and the name and mailing address of the
alternate payee covered by the order,

b. the amount or percentage of the member’s benefits to
be paid by the Commission or the entity responsible
for the Retirement Fund to the alternate payee,

c. the number of payments or period to which such order
applies,

d. the characterization of the benefit as to marital
property rights or child support, and

e. each plan to which such order applies.

6. A qualified domestic order meets the requirements of this
subsection only if such order:

a. does not require the Commission or the entity
responsible for the Retirement Fund to provide any
type or form of benefit, or any option not otherwise

ENR. S. B. NO. 1877 Page 185
provided under state law as relates to the retirement
plan,

b. does not require the Commission or the entity
responsible for the Retirement Fund to provide
increased benefits, and

c. does not require the payment of benefits to an
alternate payee which are required to be paid to
another alternate payee pursuant to another order
previously determined to be a qualified domestic order
or an order recognized by the retirement plan as a
valid order prior to the effective date of this
section.

7. A qualified domestic order shall not require payment of
benefits to an alternate payee prior to the actual retirement date
or withdrawal of the related member.

8. The obligation of the Commission or the entity responsible
for the Retirement Fund to pay an alternate payee pursuant to a
qualified domestic order shall cease upon the death of the related
member.

9. This subsection shall not be subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA), 29
U.S.C.A., Section 1001 et seq., as amended from time to time, or
rules promulgated thereunder, and court cases interpreting said act.

10. The Oklahoma Wildlife Conservation Commission shall
promulgate such rules as are necessary to implement the provisions
of this subsection.

11. An alternate payee who has acquired beneficiary rights
pursuant to a valid qualified domestic order shall fully comply with
all provisions of the rules promulgated by the Commission pursuant
to this section in order to continue receiving benefits.

SECTION 76. AMENDATORY 36 O.S. 2021, Section 312.1, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 186
Section 312.1. A. For the fiscal year ending June 30, 2004,
the Insurance Commissioner shall report and disburse one hundred
percent (100%) of the fees and taxes collected under Section 624 of
this title to the State Treasurer to be deposited to the credit of
the Education Reform Revolving Fund of the State Department of
Education. The Insurance Commissioner shall keep an accurate record
of all such funds and make an itemized statement and furnish same to
the State Auditor and Inspector, as to all other departments of this
state. The report shall be accompanied by an affidavit of the
Insurance Commissioner or the Chief Clerk of such office certifying
to the correctness thereof.

B. The Insurance Commissioner shall apportion an amount of the
taxes and fees received from Section 624 of this title, which shall
be at least One Million Two Hundred Fifty Thousand Dollars
($1,250,000.00) each year, but which shall also be computed on an
annual basis by the Commissioner as the amount of insurance premium
tax revenue loss attributable to the provisions of subsection H of
Section 625.1 of this title and increased if necessary to reflect
the annual computation, and which shall be apportioned before any
other amounts, as follows:

1. The following amounts shall be paid to the Oklahoma
Firefighters Pension and Retirement Fund in the manner provided for
in Sections 49-119, 49-120 and 49-123 of Title 11 of the Oklahoma
Statutes:

Fiscal Year Amount

FY 2006 through FY 2020 65.0%

FY 2021 as follows:

a. for the month beginning July 1,
2020, through the month ending
August 31, 2020 65.0%

b. for the month beginning September
1, 2020, through the month ending
June 30, 2021 45.5%

FY 2022 and each fiscal year thereafter 65.0%;

ENR. S. B. NO. 1877 Page 187

2. The following amounts shall be paid to the Oklahoma Police
Pension and Retirement System pursuant to the provisions of Sections
50-101 through 50-136 of Title 11 of the Oklahoma Statutes:

Fiscal Year Amount

FY 2006 through FY 2020 26.0%

FY 2021 as follows:

a. for the month beginning July 1,
2020, through the month ending
August 31, 2020 26.0%

b. for the month beginning September
1, 2020, through the month ending
June 30, 2021 18.2%

FY 2022 and each fiscal year thereafter 26.0%;

3. The following amounts shall be paid to the Law Enforcement
Retirement Fund:

Fiscal Year Amount

FY 2006 through FY 2020 9.0%

FY 2021 as follows:

a. for the month beginning July 1,
2020, through the month ending
August 31, 2020 9.0%

b. for the month beginning September
1, 2020, through the month ending
June 30, 2021 6.3%

FY 2022 and each fiscal year thereafter 9.0%; and

4. The following amounts shall be paid to the Education Reform
Revolving Fund of the State Department of Education:

ENR. S. B. NO. 1877 Page 188

Fiscal Year Amount

FY 2021 as follows:

for the month beginning September 1,
2020, through the month ending June 30,
2021 30.0%.

C. After the apportionment required by subsection B of this
section, for the fiscal years beginning July 1, 2004, and ending
June 30, 2009, the Insurance Commissioner shall report and disburse
all of the fees and taxes collected under Section 624 of this title
and Section 2204 of this title, and the same are hereby apportioned
as follows:

1. Thirty-four percent (34%) of the taxes collected on premiums
shall be allocated and disbursed for the Oklahoma Firefighters
Pension and Retirement Fund, in the manner provided for in Sections
49-119, 49-120 and 49-123 of Title 11 of the Oklahoma Statutes;

2. Seventeen percent (17%) of the taxes collected on premiums
shall be allocated and disbursed to the Oklahoma Police Pension and
Retirement System pursuant to the provisions of Sections 50-101
through 50-136 of Title 11 of the Oklahoma Statutes;

3. Six and one-tenth percent (6.1%) of the taxes collected on
premiums shall be allocated and disbursed to the Law Enforcement
Retirement Fund; and

4. All the balance and remainder of the taxes and fees provided
in Section 624 of this title shall be paid to the State Treasurer to
the credit of the General Revenue Fund of the state to provide
revenue for general functions of state government. The Insurance
Commissioner shall keep an accurate record of all such funds and
make an itemized statement and furnish same to the State Auditor and
Inspector, as to all other departments of this state. The report
shall be accompanied by an affidavit of the Insurance Commissioner
or the Chief Clerk of such office certifying to the correctness
thereof.

ENR. S. B. NO. 1877 Page 189
D. After the apportionment required by subsection B of this
section, the Insurance Commissioner shall report and disburse all of
the fees and taxes collected under Section 624 of this title and
Section 2204 of this title, and the same are hereby apportioned as
follows:

1. Of the taxes collected on premiums the following shall be
allocated and disbursed for the Oklahoma Firefighters Pension and
Retirement Fund, in the manner provided for in Sections 49-119, 49-
120 and 49-123 of Title 11 of the Oklahoma Statutes:

Fiscal Year Amount

FY 2006 through FY 2020 36.0%

FY 2021 as follows:

a. for the month beginning July 1,
2020, through the month ending
August 31, 2020 36.0%

b. for the month beginning September
1, 2020, through the month ending
June 30, 2021 25.2%

FY 2022 36.0%

FY 2023 through FY 2027 37.8%

FY 2028 and each fiscal year thereafter 36.0%;

2. Of the taxes collected on premiums the following shall be
allocated and disbursed to the Oklahoma Police Pension and
Retirement System pursuant to the provisions of Sections 50-101
through 50-136 of Title 11 of the Oklahoma Statutes:

Fiscal Year Amount

FY 2006 through FY 2020 14.0%

FY 2021 as follows:

ENR. S. B. NO. 1877 Page 190
a. for the month beginning July 1,
2020, through the month ending
August 31, 2020 14.0%

b. for the month beginning September
1, 2020, through the month ending
June 30, 2021 9.8%

FY 2022 14.0%

FY 2023 through FY 2027 14.7%

FY 2028 and each fiscal year thereafter 14.0%;

3. Of the taxes collected on premiums the following shall be
allocated and disbursed to the Law Enforcement Retirement Fund:

Fiscal Year Amount

FY 2006 through FY 2020 5.0%

FY 2021 as follows:

a. for the month beginning July 1,
2020, through the month ending
August 31, 2020 5.0%

b. for the month beginning September
1, 2020, through the month ending
June 30, 2021 3.5%

FY 2022 5.0%

FY 2023 through FY 2027 5.25%

FY 2028 and each fiscal year thereafter 5.0%;

4. The following amounts shall be paid to the Education Reform
Revolving Fund of the State Department of Education:

Fiscal Year Amount

ENR. S. B. NO. 1877 Page 191
FY 2021 as follows:

for the month beginning September 1,
2020, through the month ending June 30,
2021 16.5%;

5. In addition to the allocations made pursuant to paragraphs
1, 2 and 3 of this subsection, of the taxes collected on premiums
the following amounts shall be allocated and disbursed annually for
FY 2023 through FY 2027:

a. Forty Thousand Six Hundred Twenty-five Dollars
($40,625.00) to the Oklahoma Firefighters Pension and
Retirement Fund,

b. Sixteen Thousand Two Hundred Fifty Dollars
($16,250.00) to the Oklahoma Police Pension and
Retirement System, and

c. Five Thousand Six Hundred Twenty-five Dollars
($5,625.00) to the Oklahoma Law Enforcement Retirement
Fund; and

6. All the balance and remainder of the taxes and fees provided
in Section 624 of this title shall be paid to the State Treasurer to
the credit of the General Revenue Fund of the state to provide
revenue for general functions of state government. The Insurance
Commissioner shall keep an accurate record of all such funds and
make an itemized statement and furnish same to the State Auditor and
Inspector, as to all other departments of this state. The report
shall be accompanied by an affidavit of the Insurance Commissioner
or the Chief Clerk of such office certifying to the correctness
thereof.

E. The disbursements provided for in subsections A, B, C and D
of this section shall be made monthly. The Insurance Commissioner
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically report annually to the
Governor, the Speaker of the House of Representatives, the President
Pro Tempore of the Senate, and the State Auditor and Inspector, the
amounts collected and disbursed pursuant to this section.

ENR. S. B. NO. 1877 Page 192
F. Notwithstanding any other provision of law to the contrary,
no tax credit authorized by law enacted on or after July 1, 2008,
which may be used to reduce any insurance premium tax liability
shall be used to reduce the amount of insurance premium tax revenue
apportioned to the Oklahoma Firefighters Pension and Retirement
System, the Oklahoma Police Pension and Retirement System, the
Oklahoma Law Enforcement Retirement System, or the Education Reform
Revolving Fund.

SECTION 77. AMENDATORY 36 O.S. 2021, Section 924.2, is
amended to read as follows:

Section 924.2. A. Any rate, schedule of rates or rating plan
for workers’ compensation insurance submitted to or filed with the
Insurance Commissioner, or fixed by the Board of Directors of
CompSource Mutual Insurance Company, and premiums, by whatever name,
for workers’ compensation for self-insureds except for group self-
insured associations shall provide for an appropriate reduction in
premium charges, by whatever name, for those eligible insured
employers who have successfully participated in the occupational
safety and health consultation, education and training program
administered by the Commissioner of the Department of Labor pursuant
to Section 414 of Title 40 of the Oklahoma Statutes.

B. All insurance companies writing workers’ compensation
insurance in this state and all self-insureds providing workers’
compensation insurance except for group self-insured associations,
shall allow an appropriate reduction in premium charges to all
eligible employers who qualify for the reduction pursuant to the
provisions of this section.

C. Eligible employers shall be those employers:

1. Who are insured by an insurance company writing workers’
compensation insurance in this state; or

2. Who are self-insured.

D. In order to qualify for the reduction in workers’
compensation insurance premium, an employer shall successfully
participate annually in the occupational safety and health

ENR. S. B. NO. 1877 Page 193
consultation, education and training program administered by the
Department of Labor. Successful participation shall be defined as:

1. Undergoing a safety and health hazard survey of the
workplace, including an evaluation of the employer’s safety and
health program and onsite interviews with employees by the
Department’s consultant;

2. Correcting all hazards identified during the onsite visit
within a reasonable period of time as established by the Department;

3. Establishing an effective workplace safety and health
program and implementing program provisions within a reasonable
period of time as established by the Department. The program shall
include:

a. demonstration of management commitment to worker
safety and health,

b. procedures for identifying and controlling workplace
hazards,

c. development and communication of safety plans, rules
and work procedures, and

d. training for supervisors and employees in safe and
healthful work practices;

4. Reducing by one-third (1/3) or more the extent to which the
lost workday case rate, as measured by the Department of Labor, was
above the national average for the industry at the time the employer
elected to participate in the occupational safety and health
consultation, education and training program, or maintaining a rate
at or below the national average for the industry; and

5. Documenting a reduction in workers’ compensation claims for
the preceding year by showing one of the following:

a. a ten percent (10%) reduction in the dollar amount of
claims,

ENR. S. B. NO. 1877 Page 194
b. a ten percent (10%) reduction in the severity of
claims, or

c. no reported claims,

as a result of attending the occupational safety and health
consultation, education and training program administered by the
Department of Labor.

E. 1. Upon successful participation in the occupational safety
and health consultation, education and training program as defined
in subsection D of this section, an employer shall be issued a
certificate by the Commissioner of the Department of Labor which
shall be the basis of qualification for the reduction in workers’
compensation insurance premium, by whatever name. The certificate
shall qualify the employer for a premium reduction for a one-year
period.

2. Upon issuance of a certificate to an employer, the
Commissioner of the Department of Labor shall mail a copy of the
certificate to the employer’s insurer. Any insurer required by this
section to allow an appropriate reduction in premium charges to a
qualified employer which willfully fails to allow such reduction
after receiving a copy of the certificate shall be subject, after
notice and hearing, to an administrative fine, imposed by the
Insurance Commissioner, which shall be not less than Ten Thousand
Dollars ($10,000.00) or three times the amount of the premium
reduction, whichever is greater. The Insurance Commissioner shall
promulgate rules necessary to carry out the provisions of this
paragraph.

F. The Insurance Commissioner and the Administrator of the
Workers’ Compensation Court shall maintain records documenting
reductions in workers’ compensation insurance premiums granted
pursuant to this section and shall make, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit an annual report of such reductions to the
President Pro Tempore of the Senate and the Speaker of the House of
Representatives by May 1 of each year. Insurers shall report such
premium reductions in their annual statement.

ENR. S. B. NO. 1877 Page 195
SECTION 78. AMENDATORY 40 O.S. 2021, Section 6-204, as
amended by Section 6, Chapter 346, O.S.L. 2023 (40 O.S. Supp. 2025,
Section 6-204), is amended to read as follows:

Section 6-204. TECHNOLOGY REINVESTMENT APPORTIONMENT.

A. 1. For the period beginning January 1, 2023, and ending
December 31, 2027, each employer subject to the provisions of
Sections 3-109, 3-110.1, and 3-113 of this title shall be required
to pay an OESC Technology Reinvestment Apportionment equal to five
percent (5%) of the unemployment taxes that would be owed to the
Oklahoma Employment Security Commission before any rate reduction is
made pursuant to Section 3-109.3 of this title. This apportionment
shall be in addition to any contribution which that employer is
required to make pursuant to the provisions of the Employment
Security Act of 1980.

2. The apportionment provided for in this section shall not be
considered part of any unemployment taxes required of an individual
employer pursuant to the Employment Security Act of 1980, nor shall
it be considered for purposes of determining the individual
employer’s tax rate.

B. Employers assigned a tax rate pursuant to Section 3-110.1 of
this title shall pay an OESC Technology Reinvestment Apportionment
equal to the rate reduction granted them pursuant to Section 3-109.3
of this title.

C. Employers making payments in lieu of contributions pursuant
to Sections 3-702, 3-705, and 3-806 of this title shall be exempt
from the provisions of this section.

D. The apportionment shall be made and collected by the
Oklahoma Employment Security Commission for deposit, on a monthly
basis, to the credit of the OESC Technology Fund. Provided, all
monies received by the Oklahoma Employment Security Commission for
the account of the OESC Technology Fund, upon receipt, shall be
deposited in a clearance account.

E. The Oklahoma Employment Security Commission shall promulgate
such rules as may be necessary to implement the provisions of
Sections 3-109.3 and 6-201 through 6-205 of this title.

ENR. S. B. NO. 1877 Page 196

F. The Oklahoma Employment Security Commission shall create an
annual report detailing the collection of the apportionment funds
and the expenditures from the OESC Technology Fund. The report
shall be filed on or before March 31 of each year following the
effective date of this act. The report shall be electronically
filed with the Governor, the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, the State Treasurer,
the State Auditor and Inspector, and the Director of the Office of
Management and Enterprise Services utilizing the centralized filing
system provided for in Section 378 of this act.

SECTION 79. AMENDATORY Section 5, Chapter 361, O.S.L.
2023, as amended by Section 1, Chapter 408, O.S.L. 2025 (40 O.S.
Supp. 2025, Section 904), is amended to read as follows:

Section 904. The Oklahoma Workforce Commission shall have the
following powers, duties, and responsibilities:

1. To administer the provisions of the Oklahoma Workforce
Transformation Act or any duty as directed by statute;

2. To establish an office for the Commission within this state;

3. To elect whatever other officers may be necessary to direct
operations of the Commission;

4. To employ or contract for personnel and administrative
support as the Commission deems appropriate to carry out the purpose
and provisions of the Oklahoma Workforce Transformation Act,
including, but not limited to, a nonprofit corporation to carry out
the Commission’s objectives, an executive director or other chief
executive officer, and any other employees or contractors the
Commission deems appropriate, and to prescribe their duties and fix
their compensation;

5. To administer the Workforce Coordination Revolving Fund
created in Section 255.4 of Title 62 of the Oklahoma Statutes;

6. To administer the Oklahoma Workforce Commission Revolving
Fund created in Section 3 of this act;

ENR. S. B. NO. 1877 Page 197
7. To approve or disapprove the budget of the Commission;

8. To promulgate rules to carry out the provisions of the
Oklahoma Workforce Transformation Act;

9. To enter into contracts or agreements for studies,
professional services, grant administration and procurement,
research projects, supplies, or any other services the Commission
deems necessary to carry out its purpose, and to incur those
expenses necessary to carry out those purposes;

10. To cooperate with any private, local, state, or national
commission, organization, agency, or group and to make contracts and
agreements for joint programs beneficial to Oklahoma’s workforce
development efforts;

11. To accept donations, grants, contributions, and gifts from
any public or private source and deposit such in the Oklahoma
Workforce Commission Revolving Fund, created in Section 3 of this
act;

12. To oversee and direct to the extent permitted by law the
activities and administration of the Governor’s Council for
Workforce and Economic Development, including, but not limited to,
the creation and submission of state plans to the federal government
pursuant to the provisions of the Workforce Innovation and
Opportunity Act;

13. To collect data from federal, state, and local agencies,
departments, educational institutions, boards, commissions, or any
other entities including, but not limited to:

a. number of participants in workforce development
programming,

b. cost per participant,

c. wages before and after participation in programs,

d. degree or certificate conferred on each participant,

e. number of jobs open needing degrees or certificates,

ENR. S. B. NO. 1877 Page 198

f. labor force and economic information, and

g. any other information the Commission deems appropriate
to guide funding decisions, facilitate its work or the
work of workforce development entities in the state,
or to understand the impact of the state’s workforce
efforts and programming;

14. To create and maintain a public dashboard and create
reports with data concerning workforce development efforts in the
state. All state and local agencies, departments, educational
institutions, boards, commissions, and other public entities shall
cooperate with information and data requests from the Commission or
its designees. The Oklahoma Workforce Commission shall serve as the
centralized data and information repository for workforce
development activities for the state;

15. To make recommendations to the Legislature to improve
workforce development programs in the state. Such recommendations
shall be submitted electronically utilizing the centralized filing
system provided for in Section 378 of this act;

16. To implement programs designed to expand workforce
development; and

17. To work with, use and provide data the legislatively
created map developed to help make decisions on economic development
and workforce needs in the state.

SECTION 80. AMENDATORY 43 O.S. 2021, Section 107.2, is
amended to read as follows:

Section 107.2. A. Except as provided in subsection B of this
section, in all actions for divorce, separate maintenance,
guardianship, paternity, custody or visitation, including
modifications or enforcements of a prior court order, where the
interest of a child under eighteen (18) years of age is involved,
the court may require all adult parties to attend an educational
program concerning, as appropriate, the impact of separate parenting
and coparenting on children, the implications for visitation and
conflict management, development of children, separate financial

ENR. S. B. NO. 1877 Page 199
responsibility for children and such other instruction as deemed
necessary by the court. The program shall be educational in nature
and not designed for individual therapy.

B. In actions for divorce based upon incompatibility filed on
or after November 1, 2014, where the interest of a child under
eighteen (18) years of age is involved, the adult parties shall
attend, either separately or together, an educational program
concerning the impact of divorce on children. The program shall
include the following components:

1. Short-term and longitudinal effects of divorce on child
well-being;

2. Reconciliation as an optional outcome;

3. Effects of family violence;

4. Potential child behaviors and emotional states during and
after divorce including information on how to respond to the child’s
needs;

5. Communication strategies to reduce conflict and facilitate
cooperative coparenting; and

6. Area resources, including but not limited to nonprofit
organizations or religious entities available to address issues of
substance abuse or other addictions, family violence, behavioral
health, individual and couples counseling, and financial planning.

Program attendees shall be required to pay a fee of not less
than Ten Dollars ($10.00) and not more than Sixty Dollars ($60.00)
to the program provider to offset the costs of the program. The fee
may be waived by the court if an attendee uses a qualified program
that is provided free of charge. Nothing in this paragraph shall
prohibit a third party from paying the fee to the program provider
for an attendee. A certificate of completion shall be issued upon
satisfying the attendance and fee requirements of the program, and
the certificate of completion shall be filed with the court. The
program provider shall carry general liability insurance and
maintain an accurate accounting of all business transactions and
funds received in relation to the program. The program shall be

ENR. S. B. NO. 1877 Page 200
completed prior to the temporary order or within forty-five (45)
days of receiving a temporary order. However, and in all events, a
final disposition of child custody shall not be granted until the
parties complete the program required by this subsection. The court
may waive attendance of the program for good cause shown which shall
include, but not be limited to, where domestic violence, stalking or
harassment as defined by paragraph 2 of subsection I of Section 109
of this title occurred during the marriage.

C. Each judicial district may adopt its own local rules
governing the programs.

D. The Administrative Office of the Courts may enter into a
memorandum of understanding with a state entity or other
organization in order to compile data including but not limited to
the number of actions for divorce that were dismissed after
participating in the program, the number of programs that were
completed and the number of program participants for each fiscal
year. The report shall include data collected from each judicial
district. The report shall be published on the Administrative
Office of the Courts website and electronically distributed to the
Governor, Speaker of the House of Representatives, Minority Leader
of the House of Representatives, President Pro Tempore of the
Senate, and Minority Leader of the Senate utilizing the centralized
filing system provided for in Section 378 of this act.

SECTION 81. AMENDATORY 43A O.S. 2021, Section 2-205, is
amended to read as follows:

Section 2-205. The Department of Mental Health and Substance
Abuse Services is hereby directed to employ one or more internal
auditors to establish and perform an effective and comprehensive
internal audit program. Such program shall include, but not be
limited to, reviews of accounting procedures, internal control,
financial management and compliance with laws, regulations, policies
and executive and legislative directives for the Department’s
administrative offices, institutions, community mental health
centers, and contractors. Internal audit final reports shall be
made available to the Governor, the State Auditor and Inspector, the
Legislative Service Bureau, the Board of Mental Health and Substance
Abuse Services, and the Commissioner of Mental Health and Substance

ENR. S. B. NO. 1877 Page 201
Abuse Services by electronic submission utilizing the centralized
filing system provided for in Section 378 of this act.

SECTION 82. AMENDATORY Section 4, Chapter 201, O.S.L.
2023, as amended by Section 1, Chapter 230, O.S.L. 2025 (43A O.S.
Supp. 2025, Section 2-312.4), is amended to read as follows:

Section 2-312.4. A. Subject to availability of funds under
Section 2-312.1 of this title, the Department of Mental Health and
Substance Abuse Services shall annually issue a request for
proposals by which county governments or multi-county partnerships
may apply for funds for the development and implementation of
evidence-based:

1. Mental health and substance abuse treatment programs or
other health care programs provided in the community;

2. Pretrial diversion programs, mental health, and substance
use jail intake screenings, or jail reentry programs;

3. Employment programs;

4. Education programs; or

5. Housing programs.

B. The request for proposals shall include, but not be limited
to, the proposed services, number of individuals to be served by the
proposed services or programs, and the manner in which the services
or programs will partner with or be supported by local Department-
contracted or -certified entities.

C. For a proposal to be considered, the applying county
government or multi-county partnership must shall submit all
necessary documents to meet the requirements outlined in the request
for proposals.

D. The number of awards and funding amounts of each award shall
be at the discretion of the Department and shall be based on total
available funds, total county population, and the criteria in
subsection B of this section. Each county government or multi-

ENR. S. B. NO. 1877 Page 202
county partnership shall be allocated at least half of one percent
(0.5%) of the total amount appropriated for the award cycle.

E. The Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit an annual report to the President Pro Tempore of the Senate
and the Speaker of the House of Representatives that includes the
amount awarded to each county government or multi-county partnership
and a summary of services provided by each county government or
multi-county partnership.

F. The Board of Mental Health and Substance Abuse Services
shall promulgate rules to implement the provisions of this section
and Sections 2-312.1, 2-312.2, and 2-312.3 of this title including,
but not limited to, rules that set qualifications for programs
eligible to receive funds under this section.

SECTION 83. AMENDATORY Section 1, Chapter 202, O.S.L.
2024 (43A O.S. Supp. 2025, Section 3-335), is amended to read as
follows:

Section 3-335. A. As used in this section:

1. “Board” means any of the following:

a. the State Board of Examiners of Psychologists,

b. the State Board of Behavioral Health Licensure,

c. the Oklahoma State Board of Licensed Social Workers,
or

d. the Oklahoma Board of Licensed Alcohol and Drug
Counselors;

2. “Licensed mental health professional” means an individual
who holds any type of license pursuant to the:

a. Psychologists Licensing Act,

b. Psychology Interjurisdictional Compact,

ENR. S. B. NO. 1877 Page 203
c. Licensed Professional Counselors Act,

d. Janet Phillips Act of 2023,

e. Marital and Family Therapist Licensure Act,

f. Social Worker’s Licensing Act, or

g. Licensed Alcohol and Drug Counselors Act; and

3. “Certified mental health professional” means an individual
who holds any type of certification pursuant to the Unified
Community Mental Health Services Act.

B. Every applicant for a behavioral health certification or
license issued by a designated board shall provide the following
information:

1. Demographic information, including race, ethnicity, gender,
date of birth, and languages spoken;

2. Educational background, training information, internship
information, if applicable, and location of internship or program
attended; and

3. If the applicant has any other mental health certifications
or licenses.

C. Every mental health professional who is renewing a
behavioral health certification or license issued by a designated
board shall report the following information:

1. Changes to demographic information required upon initial
application for licensure or certification;

2. Workforce retention information, including, but not limited
to, anticipated changes in licensure status or retirement; and

3. Workforce practice trends, including, but not limited to:

a. practice specialization, if applicable,

ENR. S. B. NO. 1877 Page 204
b. practice location and physical address, if applicable,

c. service delivery area, by county,

d. if the licensee is currently using their license and
if its average use is between one (1) through ten
(10), eleven (11) through twenty (20), twenty-one (21)
through thirty (30), or over thirty-one (31) hours of
client-facing hours per week, and

e. the use of telehealth.

D. The boards designated in subsection A of this section shall
promulgate rules to effectuate the provisions of this section.

E. The boards designated in subsection A of this section shall
furnish de-identified annual licensure and certification data to the
Oklahoma Department of Mental Health and Substance Abuse Services.

F. The Oklahoma Department of Mental Health and Substance Abuse
Services shall compile the de-identified information collected in
this section into an annual report. The report shall not contain
any personal identifying information. The annual report shall be
posted on the agency’s website and electronically submitted to the
President Pro Tempore of the Oklahoma State Senate, the Speaker of
the Oklahoma House of Representatives, and the chairs of the
committees with responsibility over public health in both chambers
of the Legislature utilizing the centralized filing system provided
for in Section 378 of this act.

G. Nothing in this section shall be interpreted to expand the
amount of public-facing data about Oklahoma’s individual behavioral
health licensees.

SECTION 84. AMENDATORY 43A O.S. 2021, Section 10-112, is
amended to read as follows:

Section 10-112. A. The Department of Human Services, together
with the Department of Mental Health and Substance Abuse Services,
shall develop and implement a Vulnerable Adult Intervention Task
Force. The purpose of the task force shall be to study and examine
how to best provide interdisciplinary community assistance,

ENR. S. B. NO. 1877 Page 205
intervention, and referral services for persons with mental or
physical illnesses or disabilities, dementia, or other related
disease or condition.

B. The task force shall consist of at least eleven (11) members
as follows:

1. One member who shall be a member of the Oklahoma House of
Representatives, to be appointed by the Speaker of the Oklahoma
House of Representatives, and one member who shall be a member of
the Oklahoma Senate, to be appointed by the President Pro Tempore of
the Oklahoma Senate;

2. Commissioner of the Department of Mental Health and
Substance Abuse Services, or designee;

3. Commissioner of the State Department of Health, or designee;

4. Director of the State Department of Rehabilitation Services,
or designee;

5. One member who shall be a representative from law
enforcement, to be appointed by the Senate President Pro Tempore;

6. One member who shall be a current or former municipal
employee who worked as a code enforcement officer, to be appointed
by the Speaker of the House of Representatives;

7. One member who shall be a public defender, or designee, to
be appointed by the Governor;

8. One member who shall be a citizen of this state and a
current or former member of an advocacy organization that represents
vulnerable adults or persons with mental illness, to be appointed by
the House Minority Leader;

9. One member who shall be a physician licensed to practice in
this state, to be appointed by the Senate Minority Leader; and

10. The Director of the Department of Human Services, or
designee.

ENR. S. B. NO. 1877 Page 206
Members of the task force shall serve for a thirty–month term.

C. Appointments to the task force shall be made by July 1,
2010. The first meeting shall be convened on or before August 1,
2010. A majority of the members present at a meeting shall
constitute a quorum to do business. Members of the task force shall
receive no compensation for their service, but shall receive travel
reimbursement by the appointing authority pursuant to the State
Travel Reimbursement Act.

D. The task force is authorized to meet as necessary in order
to perform the duties imposed on it.

E. The task force shall recommend a curriculum, which at a
minimum should include training for individuals on the symptoms,
causes and evidence-based services and interventions for illnesses
and conditions contained herein. The training should also address
possible crisis situations arising from these illnesses and
conditions and steps to support an individual in a crisis situation.

F. On or before December 31, 2010, and annually thereafter, the
task force shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit a report to
the Legislature stating the recommendations and findings of the task
force including but not limited to suggested legislative action,
funding sources, state agency action, and numbers of potential
participants in recommended programs, either as a team member who
promotes services or a recipient of services, and any
recommendations for improvement of the program.

G. The task force shall be subject to the provisions of the
Open Records Act and the Open Meeting Act. Staff assistance for the
task force shall be provided by the staff of the Oklahoma House of
Representatives and the Oklahoma State Senate.

SECTION 85. AMENDATORY 43A O.S. 2021, Section 12-105, as
amended by Section 1, Chapter 317, O.S.L. 2025 (43A O.S. Supp. 2025,
Section 12-105), is amended to read as follows:

Section 12-105. A. The Department of Mental Health and
Substance Abuse Services shall act as the lead agency in
implementing the provisions of the Suicide Prevention Act.

ENR. S. B. NO. 1877 Page 207

B. The Department shall have primary responsibility for
evaluating the effectiveness of efforts designed to reduce the
number of attempted suicides and suicides, and shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit an evaluation report to the Speaker of the
House of Representatives, the President Pro Tempore of the Senate,
and the Governor no later than July 1 of each year.

SECTION 86. AMENDATORY 47 O.S. 2021, Section 2-107, is
amended to read as follows:

Section 2-107. In addition to the salaries or wages of
assistants or other employees in the Department of Public Safety
when deemed necessary in connection with the discharge of their
duties respectively assigned or delegated to them, such assistants
or employees shall be allowed and paid traveling expenses incurred
in the discharge of their respective duties, in accordance with the
provisions of the State Travel Reimbursement Act, Sections 500.1
through 500.19 of Title 74 of the Oklahoma Statutes, which shall be
paid from the same fund and in the same manner as the payment of all
other salaries and expenses of the Department; provided, however,
when deemed necessary by the Commissioner of Public Safety, it shall
be and he or she is hereby authorized and empowered to purchase
motor vehicles and other equipment for use by said the Department.
The Commissioner of Public Safety shall prepare and, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically deliver to the Governor, President Pro Tempore of the
Senate, and the Speaker of the House of Representatives a current
vehicle fleet management and replacement plan and a complete
inventory of all vehicles in use by the Department on the first
legislative day of each year. The provisions of this act are to
supersede all existing law; provided only that all provisions of
this section are subject to provisions of general law governing
appropriation, expenditure, and availability of funds.

SECTION 87. AMENDATORY 47 O.S. 2021, Section 2-146, as
amended by Section 1, Chapter 370, O.S.L. 2022 (47 O.S. Supp. 2025,
Section 2-146), is amended to read as follows:

Section 2-146. A. There is hereby created in the State
Treasury a revolving fund for the Department of Public Safety, to be

ENR. S. B. NO. 1877 Page 208
designated the “Department of Public Safety Patrol Academy Revolving
Fund”. The fund shall be a continuing fund, not subject to fiscal
year limitations. All monies accruing to the credit of said fund
are hereby appropriated and shall be budgeted and expended by the
Department of Public Safety for the exclusive purpose of Oklahoma
Highway Patrol Trooper Academies. Expenditures from said fund shall
be made upon warrants issued by the State Treasurer against claims
filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and payment.

B. On or before December 1 of each year, the Department of
Public Safety shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically provide a
written report on all Oklahoma Highway Patrol Trooper Academies
conducted in the then current and preceding state fiscal year to the
Speaker of the Oklahoma House of Representatives, the President Pro
Tempore of the Oklahoma State Senate, the Chair of the
Appropriations and Budget Committee of the Oklahoma House of
Representatives, and the Chair of the Appropriations Committee of
the Oklahoma State Senate. Such report shall include, but not be
limited to, the following information for the then current and
preceding state fiscal year:

1. A description of all expenditures from the Department of
Public Safety Patrol Academy Revolving Fund;

2. A description of the source of all monies accruing to the
credit of the Department of Public Safety Patrol Academy Revolving
Fund;

3. A description of all expenditures, including the source of
funds for said expenditures, used to conduct each academy;

4. The total number of applicants for each academy;

5. The total number of persons admitted for each academy;

6. The total number of persons graduating from each academy;

7. The total number of persons graduating from each academy
that do not accept a position within the Oklahoma Highway Patrol;

ENR. S. B. NO. 1877 Page 209
8. The total number of persons graduating from each academy
that, upon accepting a position within the Oklahoma Highway Patrol,
do not complete service of an initial probationary period as
determined by the Department of Public Safety;

9. The net number of troopers added to the Oklahoma Highway
Patrol in a calendar year;

10. A description of any academies planned to be conducted in
the upcoming state fiscal year; and

11. A description of any planned academy or academies to be
conducted within the remaining fiscal year that includes, but is not
limited to, the estimated cost of the academy and the proposed
source or sources of funding.

SECTION 88. AMENDATORY 47 O.S. 2021, Section 2-303.1, is
amended to read as follows:

Section 2-303.1. A. The Oklahoma Law Enforcement Retirement
Board shall discharge its duties with respect to the System solely
in the interest of the participants and beneficiaries and:

1. For the exclusive purpose of:

a. providing benefits to participants and their
beneficiaries, and

b. defraying reasonable expenses of administering the
System;

2. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of
an enterprise of a like character and with like aims;

3. By diversifying the investments of the System so as to
minimize the risk of large losses, unless under the circumstances it
is clearly prudent not to do so; and

4. In accordance with the laws, documents and instruments
governing the System.

ENR. S. B. NO. 1877 Page 210

B. The Board may procure insurance indemnifying the members of
the Board from personal loss or accountability from liability
resulting from a member’s action or inaction as a member of the
Board.

C. The Board may establish an investment committee. The
investment committee shall be composed of not more than five (5)
members of the Board appointed by the president of the Board. The
committee shall make recommendations to the full Board on all
matters related to the choice of custodians and managers of the
assets of the System, on the establishment of investment and fund
management guidelines, and in planning future investment policy.
The committee shall have no authority to act on behalf of the Board
in any circumstances whatsoever. No recommendation of the committee
shall have effect as an action of the Board nor take effect without
the approval of the Board as provided by law.

D. The Board shall retain qualified investment managers to
provide for the investment of the monies of the System. The
investment managers shall be chosen by a solicitation of proposals
on a competitive bid basis pursuant to standards set by the Board.
Subject to the overall investment guidelines set by the Board, the
investment managers shall have full discretion in the management of
those monies of the System allocated to the investment managers.
The Board shall manage those monies not specifically allocated to
the investment managers. The monies of the System allocated to the
investment managers shall be actively managed by the investment
managers, which may include selling investments and realizing losses
if such action is considered advantageous to longer term return
maximization. Because of the total return objective, no distinction
shall be made for management and performance evaluation purposes
between realized and unrealized capital gains and losses.

E. All assets of the System shall be held in trust for the
exclusive purpose of providing benefits for the members and
beneficiaries of the System, including defraying reasonable expenses
of administering the System, and shall not be encumbered for or
diverted to any other purposes. Funds and revenues for investment
by the investment managers or the Board shall be placed with a
custodian selected by the Board. The custodian shall be a bank or
trust company offering pension fund master trustee and master

ENR. S. B. NO. 1877 Page 211
custodial services, and any related custodial agreement or trust
agreement is incorporated herein by reference. The custodian shall
be chosen by a solicitation of proposals on a competitive bid basis
pursuant to standards set by the Board. In compliance with the
investment policy guidelines of the Board, the custodian bank or
trust company shall be contractually responsible for ensuring that
all monies of the System are invested in income-producing investment
vehicles at all times. If a custodian bank or trust company has not
received direction from the investment managers of the System as to
the investment of the monies of the System in specific investment
vehicles, the custodian bank or trust company shall be contractually
responsible to the Board for investing the monies in appropriately
collateralized short-term interest-bearing investment vehicles. Any
assets of the System may be invested in a collective investment fund
or in a group trust provided the investment in such collective
investment fund or group trust is in compliance with the provisions
of Rev. Rul. 81-100, as further amended by Rev. Rul. 2004-67, Rev.
Rul. 2008-40, and Rev. Rul. 2011-1, or any successor ruling,
regulation, or similar pronouncement. Each such collective
investment fund or group trust is adopted with respect to any monies
invested therein, as part of the System, its trust and custodial
agreement, and the provisions of such trust agreement or such
declaration of trust and related adoption, participation, investment
management, subtrust or other agreements, as amended from time to
time, with respect to any monies invested therein, are incorporated
by reference into the System, its trust agreement(s) or custodial
agreement(s), upon approval by the Board.

F. Prior to August 1 of each year, the Board shall develop a
written investment plan for the System.

G. The Board shall compile a quarterly financial report of all
the funds of the System on a fiscal year basis. The report shall be
compiled pursuant to uniform reporting standards prescribed by the
Oklahoma State Pension Commission for all state retirement systems.
The report shall include several relevant measures of investment
value, including acquisition cost and current fair market value with
appropriate summaries of total holdings and returns. The report
shall contain combined and individual rate of returns of the
investment managers by category of investment, over periods of time.
The Board shall include in the quarterly reports all commissions,
fees or payments for investment services performed on behalf of the

ENR. S. B. NO. 1877 Page 212
Board. The report shall be electronically distributed to the
Governor, the Oklahoma State Pension Commission, the Legislative
Service Bureau, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate utilizing the centralized filing
system provided for in Section 378 of this act.

H. After July 1 and before October 31 of each year, the Board
shall publish widely an annual report presented in simple and easily
understood language pursuant to uniform reporting standards
prescribed by the Oklahoma State Pension Commission for all state
retirement systems. The report shall be electronically submitted to
the Governor, the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, the Oklahoma State Pension
Commission, and the members of the System utilizing the centralized
filing system provided for in Section 378 of this act. The annual
report shall cover the operation of the System during the past
fiscal year, including income, disbursements, and the financial
condition of the System at the end of the fiscal year. The annual
report shall also contain the information issued in the quarterly
reports required pursuant to subsection G of this section as well as
a summary of the results of the most recent actuarial valuation to
include total assets, total liabilities, unfunded liability or over
funded status, contributions and any other information deemed
relevant by the Board. The annual report shall be written in such a
manner as to permit a readily understandable means for analyzing the
financial condition and performance of the System for the fiscal
year. The annual financial statements must shall be audited and
filed in accordance with the requirements set forth for financial
statement audits in Section 212A of Title 74 of the Oklahoma
Statutes.

I. The Board may retain an attorney licensed to practice law in
this state. The attorney shall serve at the pleasure of the Board
for such compensation as set by the Board. The Attorney General
shall furnish such legal services as may be requested by the Board.

J. All information, documents, and copies thereof contained in
a member’s retirement file shall be given confidential treatment and
shall not be made public by the System without the prior written
consent of the member to which it pertains, but shall be subject
only to court order. Provided, the System, its employees, or its

ENR. S. B. NO. 1877 Page 213
attorneys, may use such records in defense of any action brought
against the System.

K. Effective July 1, 1999, the Board is hereby authorized to do
all acts and things necessary and proper to carry out the purpose of
the System and to make the least costly amendments and changes, if
any, as may be necessary to qualify the System under the applicable
sections of the Internal Revenue Code of 1986, as amended.

L. The Executive Director and such employees of the System as
the Executive Director may designate are hereby authorized to
prepare certified copies of records of the System and every such
certified copy shall be admissible in any proceeding in any court in
like manner as the original thereof.

M. On or after July 1, 2011, the Board may permit, effective
for applicable notices, elections and consents provided or made for
a member, beneficiary, alternate payee, or individual entitled to
benefits under the System, the use of electronic media to provide
applicable notices and make such elections and consents as described
in Section 1.401(a)-21 of the Income Tax Regulations.

N. The Board shall develop such procedures and may require such
information from the distributing plan as it deems necessary to
reasonably conclude that a potential rollover contribution is a
valid rollover contribution under Section 1.401(a)(31)-1, Q&A-
14(b)(2), of the Income Tax Regulations.

SECTION 89. AMENDATORY Section 3, Chapter 282, O.S.L.
2022, as amended by Section 3, Chapter 47, 1st Extraordinary
Session, O.S.L. 2023 (47 O.S. Supp. 2025, Section 3-103), is amended
to read as follows:

Section 3-103. A. The Executive Director of Service Oklahoma
shall be appointed by the Governor with the advice and consent of
the Senate. The Executive Director shall serve at the pleasure of
the Governor and may be removed or replaced without cause.
Compensation for the Executive Director shall be determined pursuant
to Section 3601.2 of Title 74 of the Oklahoma Statutes. The
Executive Director may be removed from office by a two-thirds (2/3)
vote of the members elected to and constituting each chamber of the
Oklahoma Legislature.

ENR. S. B. NO. 1877 Page 214

B. The Executive Director of Service Oklahoma shall be the
chief executive officer of Service Oklahoma and shall act for
Service Oklahoma in all matters except as may be otherwise provided
by law. The powers and duties of the Executive Director shall
include, but not be limited to:

1. Organize Service Oklahoma in a manner to efficiently achieve
the objectives of Service Oklahoma;

2. Supervise all activities of Service Oklahoma;

3. Administer programs and policies of Service Oklahoma;

4. Employ, discharge, appoint, contract, and fix duties and
compensation of employees at the discretion of the Executive
Director;

5. Appoint assistants, deputies, officers, investigators,
attorneys, and other employees as may be necessary to carry out
functions of Service Oklahoma;

6. Prescribe rules and regulations for the operation of Service
Oklahoma;

7. Provide input and recommendations to the Service Oklahoma
Operator Board on all matters including branding and physical
standardization requirements, customer service metrics, analysis,
and improvement processes for licensed operators, and processes for
termination of licensed operators for failure to comply with the
customer service metrics;

8. Establish internal policies and procedures;

9. Prescribe and provide suitable forms deemed necessary to
carry out the functions of Service Oklahoma and any other laws the
enforcement and administration of which are vested in Service
Oklahoma;

10. Establish such divisions, sections, committees, advisory
committees, offices, and positions in Service Oklahoma as the

ENR. S. B. NO. 1877 Page 215
Executive Director deems necessary to carry out the functions of
Service Oklahoma;

11. Accept and disburse grants, allotments, gifts, devises,
bequests, funds, appropriations, and other property made or offered
to Service Oklahoma; and

12. Create the budget for Service Oklahoma to be submitted to
the Legislature each year.

C. The salary and other expenses for the Executive Director
shall be budgeted as a separate line item through Service Oklahoma.
The operating expenses of Service Oklahoma shall be set by the
Executive Director and shall be budgeted as a separate line item
through Service Oklahoma.

D. 1. The Executive Director of Service Oklahoma shall direct
all purchases, hiring, procurement, and budget for Service Oklahoma
and establish, implement, and enforce policies and procedures
related thereto, consistent with the Oklahoma Central Purchasing
Act. Service Oklahoma and the Executive Director shall be subject
to the requirements of the Public Competitive Bidding Act of 1974,
the Oklahoma Lighting Energy Conservation Act, and the Public
Facilities Act.

2. The Executive Director of Service Oklahoma, or any employee
or agent of the Executive Director of Service Oklahoma acting within
the scope of delegated authority, shall have the same power and
authority related to purchases, hiring, procurement, and budget for
Service Oklahoma as outlined in paragraph 1 of this subsection for
Service Oklahoma as the State Purchasing Director has for all
acquisitions used or consumed by state agencies as established in
the Oklahoma Central Purchasing Act. Such authority shall,
consistent with the authority granted to the State Purchasing
Director, include the power to designate financial or proprietary
information submitted by a bidder confidential and reject all
requests to disclose the information so designated, if the Executive
Director of Service Oklahoma requires the bidder to submit the
financial or proprietary information with a bid, proposal, or
quotation.

ENR. S. B. NO. 1877 Page 216
E. Service Oklahoma shall determine the compensation to be
retained by licensed operators.

1. Before the last day in September in every even-numbered
year, Service Oklahoma shall review the compensation paid to
licensed operators and, if necessary, change the compensation.
Service Oklahoma shall engage an independent third party to evaluate
the compensation paid to licensed operators who shall provide any
recommendations no later than November 1 in the even-numbered year.
Any recommended change in licensed operator compensation shall be
finalized by Service Oklahoma no later than the third Tuesday of
November in the even-numbered year. Notice of such recommendation
shall be electronically provided to the Governor, the President Pro
Tempore and the Chair of the Appropriations Committee of the Senate,
and the Speaker and the Chair of the Appropriations and Budget
Committee of the House of Representatives utilizing the centralized
filing system provided for in Section 378 of this act.

2. Any change in licensed operator compensation, unless
rejected or amended as provided by this subsection, shall become
effective on July 1 of the following calendar year. Any amendment
passed by a majority vote of each house of the Legislature shall
become effective as provided by the amendment unless vetoed by the
Governor.

SECTION 90. AMENDATORY Section 1, Chapter 265, O.S.L.
2024, as amended by Section 1, Chapter 104, O.S.L. 2025 (47 O.S.
Supp. 2025, Section 6-212.7), is amended to read as follows:

Section 6-212.7. A. There is hereby created the Impaired
Driving Prevention Advisory Committee. The Committee shall be
comprised of:

1. The Commissioner of Public Safety, or a designee, who shall
act as the chair;

2. The Chief of the Oklahoma Highway Patrol, or a designee;

3. A member appointed by the District Attorneys Council;

4. A member appointed by the Administrative Office of the
Courts;

ENR. S. B. NO. 1877 Page 217

5. The Commissioner of Mental Health and Substance Abuse
Services, or a designee;

6. The Director of the Oklahoma State Bureau of Investigation,
or a designee;

7. The State Director of Tests for Alcohol and Drug Influence,
or a designee;

8. The Director of the Oklahoma Highway Safety Office, or a
designee;

9. The President of the Oklahoma Association of Chiefs of
Police, or a designee;

10. The President of the Oklahoma Sheriff’s Association, or a
designee;

11. The Executive Director of Service Oklahoma, or a designee;

12. A member of the Board of Directors of Safety and Advocacy
For Empowerment (SAFE);

13. A representative designated by a victim advocacy group to
be selected by the Commissioner of Public Safety;

14. A member of the House of Representatives appointed by the
Speaker of the House of Representatives;

15. A member of the Senate appointed by the President Pro
Tempore of the Senate;

16. The State Commissioner of Health, or a designee;

17. The Executive Director of the Department of Transportation,
or a designee;

18. The Executive Director of the Oklahoma Medical Marijuana
Authority, or a designee;

ENR. S. B. NO. 1877 Page 218
19. The Executive Director of the State Board of Pharmacy, or a
designee;

20. The Executive Director of the Alcoholic Beverage Laws
Enforcement Commission, or a designee;

21. The Executive Director of the Oklahoma Turnpike Authority,
or a designee; and

22. The Executive Director of the Oklahoma Indigent Defense
System, or a designee.

B. The Department of Public Safety shall provide administrative
support necessary for the Committee to accomplish the goals and
objectives assigned by this section.

C. The Committee shall meet at the direction of the chair, and
shall meet not less than once a year, but not more than four times a
year. A vice chair shall be elected by the Committee from among its
members. The vice chair shall act as chair of the Committee in the
absence of the chair.

D. The Committee is authorized to collect, analyze, and
interpret relevant crash data on impaired driving and associated
traffic crashes. In addition, the Committee is authorized to
review, evaluate, and monitor the impaired driving system of this
state and provide a network of communication and cooperation among
the various stakeholders to coordinate and integrate efforts and
resources to reduce the incidence and severity of impaired driving
crashes.

E. The Committee shall annually complete a statewide strategic
plan to reduce the incidents of impaired driving and impaired
driving crashes. The plan shall be electronically submitted no
later than December 31 of each year to the Governor, the President
Pro Tempore of the Senate, and the Speaker of the House of
Representatives utilizing the centralized filing system provided for
in Section 378 of this act.

F. Members of the Committee who are otherwise employed by a
state agency or political subdivision shall serve without additional
compensation. Members of the Committee who are otherwise employed

ENR. S. B. NO. 1877 Page 219
by a state agency or political subdivision shall be entitled to
reimbursement for any actual and necessary traveling expenses in
accordance with the State Travel Reimbursement Act from the
employing agency.

SECTION 91. AMENDATORY 47 O.S. 2021, Section 7-606.1, is
amended to read as follows:

Section 7-606.1. A. There is hereby created the Uninsured
Vehicle Enforcement Program.

B. The Uninsured Vehicle Enforcement Program shall be
implemented and administered by the district attorneys of the State
of Oklahoma within their respective districts or at the District
Attorneys Council. To implement this program, the use of technology
and software to aid in detection of offenses involving uninsured
motorists is necessary and district attorneys and participating law
enforcement agencies shall have the authority to enter into
contractual agreements with automated license plate reader providers
to provide necessary technology, equipment, and maintenance thereof.

C. 1. Participating law enforcement agencies may use automatic
license plate reader systems utilizing individual automatic license
plate reader system units to access and collect data for the
investigation, detection, analysis, or enforcement of Oklahoma’s
Compulsory Insurance Law.

2. To accomplish the purposes of the program, law enforcement
agencies shall be allowed to access the online verification system
for motor vehicle liability policies to establish compliance with
the Compulsory Insurance Law as provided in Section 7-600.2 of Title
47 of the Oklahoma Statutes.

3. Access to the system shall be restricted to authorized law
enforcement agency users in the program; provided, any entity with
which a contract is executed to provide necessary technology,
equipment and maintenance for purposes of the program shall be
authorized, as necessary, to collaborate for required updates and
maintenance of their software.

ENR. S. B. NO. 1877 Page 220
4. Any data collected and stored by law enforcement pursuant to
the program shall be considered evidence if noncompliance with the
Compulsory Insurance Law is confirmed.

D. A law enforcement officer may verify by sworn affidavit that
a photograph generated by an automatic license plate reader system
unit identifies a particular vehicle operating on or having been
operated on a public road, highway, street, turnpike, other public
place or upon any private road, street, alley or lane which provides
access to one or more single-family or multifamily dwellings and
that the online verification system shows that the vehicle was
uninsured at the time such vehicle was being operated. The
affidavit shall constitute probable cause for prosecution under
applicable state law.

E. Data collected or retained through the use of an automated
license plate reader system pursuant to the program shall be
retained by a law enforcement agency when the data is being used as
evidence of a violation of the Compulsory Insurance Law; provided,
when the data is no longer needed as evidence of a violation, the
data shall be deleted or destroyed.

F. Data collected or retained through the use of an automated
license plate reader system shall not be used by any individual or
agency for purposes other than enforcement of the Compulsory
Insurance Law or as otherwise permitted by law.

1. No law enforcement agency or other entity authorized to
operate under this program shall sell captured license plate data
for any purpose or share it for any purpose not expressly authorized
by this section.

2. Any and all data collected, retained, or shared through the
use of an automated license plate reader system, except data
retained as evidence of a violation of the Compulsory Insurance Law,
shall be exempt from the Oklahoma Open Records Act.

G. The provisions of the program shall not apply to, or be
construed or interpreted in a manner to prohibit the use of, any
other automated license plate reader system by an individual or
private legal entity for purposes not otherwise prohibited by law.

ENR. S. B. NO. 1877 Page 221
H. The provisions of the program shall not be implemented until
such time that the Insurance Department verifies that the following
conditions have been met:

1. At least Ninety-Five Percent (95%) of the personal lines
auto insurance market in the state participates in the Oklahoma
Compulsory Insurance Verification System using a real-time web
portal system; and

2. The Oklahoma Compulsory Insurance Verification System is
updated in such a way to allow for the provisions of the program to
be implemented without interrupting or impeding any other lawful
uses of the system.

I. Following the implementation of the program and every year
thereafter, the District Attorneys Council shall publish an annual
report for the previous fiscal year of the Uninsured Vehicle
Enforcement Program by September 1. An electronic copy of the
report shall be distributed to the President Pro Tempore of the
Senate and the Speaker of the House of Representatives and the
chairs of the House and Senate Appropriations Committees utilizing
the centralized filing system provided for in Section 378 of this
act. The report shall comprise an evaluation of program operations,
and may include any information and recommendations for improvement
of the program deemed appropriate by the entity submitting the
report.

J. For purposes of this section:

1. “Automatic license plate reader system” means a system of
one or more mobile or law-enforcement-controlled cameras combined
with computer algorithms to convert images of registration plates
into computer-readable data;

2. “Law enforcement agency” includes the district attorney’s
office of any county, the Department of Public Safety, the sheriff’s
office of any county, and the chiefs of police of any city or town
having a population of more than one hundred thousand (100,000)
residents; and

3. “Program” means the Uninsured Vehicle Enforcement Program.

ENR. S. B. NO. 1877 Page 222
SECTION 92. AMENDATORY 47 O.S. 2021, Section 7-606.2, is
amended to read as follows:

Section 7-606.2. A. Each district attorney may create within
the district attorney’s office an Uninsured Vehicle Enforcement
Diversion Program and assign sufficient staff and resources for the
efficient operation of the program. The purpose of the Uninsured
Vehicle Enforcement Diversion Program is to authorize the district
attorney to divert complaints involving the failure to comply with
mandatory vehicle liability insurance coverage from criminal court
to the Uninsured Vehicle Enforcement Diversion Program and to
enhance public safety and security through increased compliance with
mandatory vehicle liability insurance coverage.

B. 1. Referral of a criminal complaint to the Uninsured
Vehicle Enforcement Diversion Program shall be at the discretion of
the district attorney. This act shall not limit the power of the
district attorney to prosecute Compulsory Insurance Law complaints.

2. Upon receipt of a complaint for failure to comply with the
Compulsory Insurance Law, the district attorney shall determine if
the complaint is one which is appropriate for deferred prosecution.

3. In determining whether to defer prosecution and refer a case
to the Uninsured Vehicle Enforcement Diversion Program, the district
attorney shall consider the following factors:

a. whether the criminal complaint alleges an offense
involving the failure to maintain required vehicle
liability insurance coverage,

b. whether it is in the best interest of the accused for
the accused person to be processed through deferred
prosecution in the Uninsured Vehicle Enforcement
Diversion Program,

c. the prospects for adequate protection of the public if
the accused person is processed through deferred
prosecution in the Uninsured Vehicle Enforcement
Diversion Program,

ENR. S. B. NO. 1877 Page 223
d. the number of criminal complaints against the
defendant previously received by the district
attorney,

e. whether or not there are other criminal complaints
currently pending against the defendant, and

f. the strength of the evidence of the particular
criminal complaint.

C. Upon referral of a complaint to the Uninsured Vehicle
Enforcement Diversion Program, a notice of the complaint shall be
forwarded by mail to the last known address of the record owner of
the vehicle. The notice shall contain:

1. The date the act which is the subject of the complaint
occurred;

2. A statement of the penalty for the violation of the
Compulsory Insurance Law which is the subject of the complaint;

3. A statement that the records of the State of Oklahoma
indicate that the owner of the vehicle is not in compliance with the
provisions of the Compulsory Vehicle Insurance Law and that the
complaint against the owner has been referred to the Uninsured
Vehicle Enforcement Diversion Program; and

4. The date before which the owner must shall contact the
office of the district attorney concerning the complaint.

D. If the owner fails to comply with the letter, the district
attorney may file the information and proceed with the prosecution
of the owner as provided by law.

E. The district attorney may enter into a written agreement
with the owner pursuant to the provisions of Sections 305.1 through
305.6 of Title 22 of the Oklahoma Statutes to defer prosecution on
the complaint for a period to be determined by the district
attorney, not to exceed two (2) years. The conditions of an
agreement to defer prosecution shall include:

ENR. S. B. NO. 1877 Page 224
1. The owner shall provide verification of current insurance
upon request of the district attorney;

2. The owner shall comply with the provisions of the Compulsory
Insurance Law for the full term of the agreement; and

3. The owner shall not own or operate any vehicle in violation
of the Compulsory Insurance Law during the full term of the
agreement.

F. Each diversion agreement shall include a provision requiring
the owner to pay to the district attorney’s office or District
Attorneys Council a fee equal to the amount which would have been
assessed as court costs upon the filing of the case in district
court pursuant to the provisions of Section 153 of Title 28 of the
Oklahoma Statutes. This fee shall be deposited in a special
district attorney fund with the county treasurer to be known as the
“Uninsured Vehicle Enforcement Diversion Program Fund”. Diversion
fees paid to the District Attorneys Council shall be deposited in a
special fund to be known as the “Uninsured Vehicle Enforcement
Diversion Program Fund”.

1. Each diversion agreement shall also include a provision
requiring the owner to pay an additional fee of Twenty Dollars
($20.00) to the District Attorneys Council, of which Five Dollars
($5.00) will be used in processing the payment, Ten Dollars ($10.00)
will be used in operating and maintaining the Compulsory Insurance
Verification System and Five Dollars ($5.00) will be deposited in
the Oklahoma Pension Improvement Revolving Fund created by section 2
of Enrolled Senate Bill No. 1128 of the 2nd Session of the 55th
Oklahoma Legislature.

2. The monies deposited in the Uninsured Vehicle Enforcement
Diversion Program Fund of a district attorney or the District
Attorneys Council shall be used by the district attorney and
District Attorneys Council to pay for all expenses and costs of
equipping, operating and monitoring the vehicle insurance program,
including but not limited to, contractual payments to third-party
entities providing essential services and/or or equipment for
detection of violations of Compulsory Insurance Law, and payment of
reasonable compensation to authorized and participating law
enforcement agencies as may be agreed between such entities, law

ENR. S. B. NO. 1877 Page 225
enforcement agencies and the district attorney or District Attorneys
Council.

3. Proceeds from the Uninsured Vehicle Enforcement Diversion
Program administered by the District Attorneys Council may be used
to pay for any lawful expenditures associated with the operation of
the diversion program by the District Attorneys Council. The net
proceeds shall be allocated and distributed to the district
attorneys by the District Attorneys Council. District attorneys may
use proceeds from this diversion program to pay for any lawful
expenditure associated with the operation of the district attorney’s
office.

4. The district attorney and District Attorneys Council shall
keep records of all monies deposited to and disbursed from the
Uninsured Vehicle Enforcement Diversion Program Fund. The records
of these funds shall be audited at the same time the records of the
district attorney and District Attorneys Council, respectively, are
audited.

5. If the owner furnishes proof to the satisfaction of the
district attorney’s office or District Attorneys Council that the
required vehicle liability insurance coverage was in effect at the
time of the alleged violation, no fee shall be required.

G. Members of the district attorney’s staff shall perform
duties in connection with the Uninsured Vehicle Enforcement
Diversion Program in addition to any other duties which may be
assigned by the district attorney.

H. District attorneys shall prepare and submit an annual report
to the District Attorneys Council showing total deposits and total
expenditures in the Uninsured Vehicle Enforcement Diversion Program.
Each district attorney shall submit information requested by the
District Attorneys Council regarding the Uninsured Vehicle
Enforcement Diversion Program.

By September 15 of each year following the implementation of the
Uninsured Vehicle Enforcement Program, the District Attorneys
Council shall publish an annual report for the previous fiscal year
of the Uninsured Vehicle Enforcement Diversion Program. An
electronic copy of the report shall be distributed to the Governor,

ENR. S. B. NO. 1877 Page 226
President Pro Tempore of the Senate, Speaker of the House of
Representatives, and the chairs of the House and Senate
Appropriations Committees utilizing the centralized filing system
provided for in Section 378 of this act. The report required by
this paragraph shall include the number of cases processed, the
total amount of fees collected, the total cost of the program and
such other information as required by the District Attorneys
Council.

SECTION 93. AMENDATORY 47 O.S. 2021, Section 156.1, as
last amended by Section 55, Chapter 452, O.S.L. 2024 (47 O.S. Supp.
2025, Section 156.1), is amended to read as follows:

Section 156.1. A. It shall be unlawful for any state official,
officer, or employee, except any essential employees approved by the
Governor and those officers or employees authorized in subsection B
of this section, to ride to or from the place of residence of the
employee in a state-owned or state-leased automobile, truck, or
pickup, except in the performance of the official duty of the
employee, or to use or permit the use of any such automobile, truck,
ambulance, or pickup for other personal or private purposes. Any
person convicted of violating the provisions of this section shall
be guilty of a misdemeanor and shall be punished by a fine of not
more than One Hundred Dollars ($100.00) or by imprisonment in the
county jail for a period to not exceed thirty (30) days, or by both
said fine and imprisonment, and in addition thereto, shall be
discharged from state employment.

B. 1. Any state employee, other than the individuals provided
for in paragraph 2 of this subsection and any employee of the
Department of Public Safety who is a wrecker inspector or auditor of
the Wrecker Services Division as provided for in paragraph 3 of this
subsection, who receives emergency telephone calls regularly at the
residence of the employee when the employee is not on duty and is
regularly called upon to use a vehicle after normal work hours in
response to such emergency calls, may be permitted to use a vehicle
belonging to the state to provide transportation between the
residence of the employee and the assigned place of employment,
provided such distance does not exceed seventy-five (75) miles in
any round trip or is within the county where the assigned place of
employment is located. Provided further, an employee may be
permitted to use a state-owned or state-leased vehicle to provide

ENR. S. B. NO. 1877 Page 227
temporary transportation between a specific work location other than
the assigned place of employment and the residence of the employee,
if such use shall result in a monetary saving to the agency, and
such authorization shall not be subject to the distance or area
restrictions provided for in this paragraph. Authorization for
temporary use of a state-owned or state-leased vehicle for a
specific project shall be in writing stating the justification for
this use and the saving expected to result. Such authorization
shall be valid for not to exceed sixty (60) days. Any state entity
other than law enforcement that avails itself of this provision
shall keep a monthly record of all participating employees, the
number of emergency calls received and the number of times that a
state vehicle was used in the performance of such emergency calls.

2. Any employee of the Department of Public Safety, Oklahoma
Department of Corrections, Office of the Attorney General, Oklahoma
State Bureau of Narcotics and Dangerous Drugs Control, Oklahoma
State Bureau of Investigation, Alcoholic Beverage Laws Enforcement
Commission, Oklahoma Horse Racing Commission, Oklahoma Department of
Agriculture, Food, and Forestry, Office of the Inspector General
within the Department of Human Services or Office of the State Fire
Marshal, who is a law enforcement officer or criminalist, Public
Information officer, Special Investigator or Assistant Director of
the Oklahoma State Bureau of Investigation, the Executive Director
of CLEET, CLEET-certified Investigator for a state board, or any
employee of a district attorney who is a law enforcement officer,
may be permitted to use a state-owned or state-leased vehicle to
provide transportation between the residence of the employee and the
assigned place of employment and between the residence and any
location other than the assigned place of employment to which the
employee travels in the performance of the official duty of the
employee.

3. Any employee of the Department of Public Safety who is a
wrecker inspector or auditor of the Wrecker Services Division, or a
noncommissioned pilot may be permitted, as determined by the
Commissioner, to use a state-owned or state-leased vehicle to
provide transportation between the residence of the employee and the
assigned place of employment and between the residence and any
location other than the assigned place of employment to which the
employee travels in the performance of the official duty of the
employee.

ENR. S. B. NO. 1877 Page 228

4. The Director, department heads and other essential employees
of the Department of Wildlife Conservation, as authorized by the
Wildlife Conservation Commission, may be permitted to use a state-
owned or state-leased vehicle to provide transportation between the
residence of the employee and the assigned place of employment and
between the residence and any location other than the assigned place
of employment to which the employee travels in the performance of
the official duty of the employee.

5. The Director, department heads, emergency responders, and
other essential employees of the Department of Corrections, as
authorized by the Director, may be permitted to use a state-owned or
state-leased vehicle to provide transportation between the residence
of the employee and the assigned place of employment and between the
residence and any location other than the assigned place of
employment to which the employee travels in the performance of the
official duty of the employee.

6. Designated Examiner Auditors, Designated Examiner
Supervisors, Commercial Driver License Examiners, Commercial Driver
License Auditors, Commercial Driver License Supervisors, and Driver
License Supervisors, as an employee of Service Oklahoma may be
permitted, as determined by the Director of Service Oklahoma, to use
a state-owned or state-leased vehicle to provide transportation
between the residence of the employee and the assigned place of
employment and between the residence and any location other than the
assigned place.

7. The Attorney General, division heads, emergency responders,
agents, assistant attorneys general, and other essential employees
of the Office of the Attorney General, as authorized by the Attorney
General, may be permitted to use a state-owned or state-leased
vehicle to provide transportation between the residence of the
employee and the assigned place of employment and between the
residence and any location other than the assigned place of
employment to which the employee travels in the performance of the
official duty of the employee.

C. The principal administrator of the state agency with which
the employee is employed shall so designate the status of the
employee in writing or, utilizing the centralized filing system

ENR. S. B. NO. 1877 Page 229
provided for in Section 378 of this act, electronically provide a
copy of the temporary authorization to the Governor, the President
Pro Tempore of the Senate and the Speaker of the House of
Representatives. Such employee status report shall also be provided
to the State Fleet Manager of the Division of Fleet Management if
the motor vehicle for emergency use is provided by said Division.

SECTION 94. AMENDATORY 47 O.S. 2021, Section 1104.1, as
last amended by Section 8, Chapter 171, O.S.L. 2025 (47 O.S. Supp.
2025, Section 1104.1), is amended to read as follows:

Section 1104.1. A. Twenty-three Dollars ($23.00) of the fee
authorized by Section 1135.5 of this title for university or college
supporter license plates which are received each year by Service
Oklahoma or its licensed operators shall be apportioned as follows:

1. Twenty Dollars ($20.00) of the fee for each license plate
designating a particular state university or college shall be
apportioned to the particular state university or college so
designated on the license plate. Twenty Dollars ($20.00) of the fee
for each license plate designating a particular private university
or college shall be apportioned to the particular private university
or college so designated on the license plate and may be used by the
private university or college as compensation for use of the
symbols, words, or letters authorized by the private university or
college for use on the license plate; and

2. Three Dollars ($3.00) shall be deposited to the Adaptive
Grant Program for Oklahomans with Intellectual Disabilities
Revolving Fund created by this section to be used for educational
purposes.

B. There is hereby created in the State Treasury a revolving
fund for the Department of Human Services to be designated the
“Adaptive Grant Program for Oklahomans with Intellectual
Disabilities Revolving Fund”. The fund shall be a continuing fund,
not subject to fiscal year limitations, and shall consist of all
funds deposited therein pursuant to the provisions of paragraph 2 of
subsection A of this section. All monies accruing to the credit of
the fund are hereby appropriated and may be budgeted and expended by
the Department of Human Services for the administration of the

ENR. S. B. NO. 1877 Page 230
Adaptive Grant Program for Oklahomans with Intellectual
Disabilities.

C. The Director of the Department of Human Services is hereby
directed to promulgate rules to create the Adaptive Grant Program
for Oklahomans with Intellectual Disabilities Program to provide
financial assistance in adaptation of furnishings, fixtures,
vehicles, equipment, or structures in order to meet any special
needs of Oklahomans with intellectual disabilities; provided,
recipients of grants awarded pursuant to the program shall be
limited to those programs, projects, or persons not otherwise
qualifying for state or federal funding. The Department of Human
Services is authorized to contract with a statewide private,
nonprofit foundation certified to be a 501(c)(3) organization by the
Internal Revenue Service for administration of the program.

D. The Director of Human Services shall prepare an annual
report on the Program. Such report shall be electronically
submitted to the Governor, the President Pro Tempore of the Senate,
and the Speaker of the House of Representatives utilizing the
centralized filing system provided for in Section 378 of this act.

SECTION 95. AMENDATORY 47 O.S. 2021, Section 1140.3, is
amended to read as follows:

Section 1140.3. The Oklahoma Tax Commission shall, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit a monthly report of the apportionment
reimbursed out of the License and ID Apportionment Reimbursement
Revolving Fund, created in Section 5 of this act, to the Chair of
the Senate Appropriations Committee and Chair of the House of
Representatives Appropriations and Budget Committee.

SECTION 96. AMENDATORY 52 O.S. 2021, Section 87.2, is
amended to read as follows:

Section 87.2. A. Except as provided in subsection B of this
section, only those persons, or the duly authorized agent,
representative or attorney of those persons, who are mineral owners
or owners of the right to drill a well for oil and gas on the lands
embraced within the subject area of an application or the owners of
correlative rights within the common source of supply or supplies

ENR. S. B. NO. 1877 Page 231
embraced within an application to the extent such owners are
directly affected by such application, shall be proper parties to:

1. protest Protest any application to establish, reestablish,
or reform a spacing unit,;

2. protest Protest any application requesting authority for an
additional well or wells within an established spacing unit brought
pursuant to the provisions of paragraph (a) or (d) of Section 87.1
of Title 52 of the Oklahoma Statutes,; or

3. present Present testimony or evidence at any hearing arising
thereunder or relating thereto.

B. No other person shall be entitled to notice of such
proceeding or shall be entitled to appear as a party of record
therein, except that the Corporation Commission may permit persons
other than those specified in subsection A of this section leave to
intervene in a proceeding upon a finding, based upon clear and
convincing evidence, that such person has a substantial right
intended to be protected by Section 87.1 of Title 52 of the Oklahoma
Statutes which may adversely be affected by the outcome of such
proceeding. Any finding required by this section shall be made by
the Corporation Commission, sitting en banc, within ten (10) days of
the filing of a motion to intervene by such person and such
proceeding shall be stayed during such ten-day period.

C. At the end of each calendar quarter the Corporation
Commission shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically file a written report
with the Office of the Governor, the Speaker of the Oklahoma House
of Representatives, and the President Pro Tempore of the Oklahoma
State Senate describing all such findings made by the Corporation
Commission pursuant to this section during such period.

SECTION 97. AMENDATORY 53 O.S. 2021, Section 1.9, is
amended to read as follows:

Section 1.9. The title to any locally owned historic or
recreational site or improvements thereon shall not be acquired by
or conferred to the Oklahoma Historical Society to qualify for state
funding without prior approval of both the Senate and the House of

ENR. S. B. NO. 1877 Page 232
Representatives. Before such approval is given, proposals for
acquisitions shall be made to the Board ofDirectors of Directors of
the Oklahoma Historical Society. Within sixty (60) days after
receiving a proposal, the Board of Directors shall have a study made
of the proposed acquisition. The study shall evaluate the
historical background and significance of the property, the
educational value of the property, the accessibility of the property
to the public, and any other factors the Board of Directors deems
pertinent. The study shall also include an estimate of the cost of
restoring the property if restoration is necessary, an estimate of
the cost of providing access to the property if additional access is
necessary, and an estimate of the cost of operating and maintaining
the property for at least five (5) fiscal years subsequent to the
proposed date of acquisition of the property. A written report of
the results of the study shall be submitted by the Board of
Directors to the Historic Preservation Review Committee appointed by
the Governor to comply with rules and procedures prescribed by the
Secretary of the Interior pursuant to Public Law 89-665. The
Historic Preservation Review Committee, or its successor, shall
evaluate the results of the study and shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit, within thirty (30) days of receiving the
report, a written recommendation to the Speaker of the House,
President Pro Tempore of the Senate, and Governor as to the
advisability of the acquisition.

SECTION 98. AMENDATORY 53 O.S. 2021, Section 166, is
amended to read as follows:

Section 166. The Oklahoma Arts Council shall be responsible for
the acquisition, exhibition, management, and care of the State Art
Collection and is empowered and directed to exercise these powers
and duties:

(a) Consider the whole state of the arts, cultural activities,
and cultural heritage of Oklahoma. The purview of the Council shall
not be limited but shall include music, theater, dance, opera,
graphic arts, plastic arts, architecture, poetry, plays, or any
other art, regardless of period, school, or type. Full attention
shall also be given to art, art museums, live performances, or
concerts, art exhibits, and other like endeavors.

ENR. S. B. NO. 1877 Page 233
(b) Survey the artistic and cultural activities and facilities
of the state, and the institutions, organizations, or individuals
engaged in these undertakings.

(c) Study information collected and prepare proposals for the
study, practice, and presentation of the arts.

(d) Foster conferences, institutes, and exhibits on the arts
and hold or cooperate in such ventures.

(e) Report Electronically submit a report biennially to the
Governor and Legislature on or before January 31 of each odd-
numbered year utilizing the centralized filing system provided for
in Section 378 of this act. Reports shall include recommendations
and suggestions for the expansion and improvement of the arts and
for wider opportunity of participation in these activities by our
citizens.

(f) Publish any reports, surveys, news bulletins, or other
materials pertaining to its findings, recommendations, and work.

(g) Perform or engage in all else necessary or desirable to
give full force and effect to the provisions of this act.

SECTION 99. AMENDATORY 56 O.S. 2021, Section 71, is
amended to read as follows:

Section 71. A. Except as provided in subsection C of this
section or where exempted by federal law, every agency or a
political subdivision of this state shall verify the lawful presence
in the United States of any natural person fourteen (14) years of
age or older who has applied for state or local public benefits, as
defined in 8 U.S.C., Section 1621, or for federal public benefits,
as defined in 8 U.S.C., Section 1611, that is administered by an
agency or a political subdivision of this state.

B. The provisions of this section shall be enforced without
regard to race, religion, gender, ethnicity, or national origin.

C. Verification of lawful presence under the provisions of this
section shall not be required:

ENR. S. B. NO. 1877 Page 234
1. For any purpose for which lawful presence in the United
States is not restricted by law, ordinance, or regulation;

2. For assistance for health care items and services that are
necessary for the treatment of an emergency medical condition, as
defined in 42 U.S.C., Section 1396b(v)(3), of the alien involved and
are not related to an organ transplant procedure;

3. For short-term, noncash, in-kind emergency disaster relief;

4. For public health assistance for immunizations with respect
to diseases and for testing and treatment of symptoms of
communicable diseases whether or not such symptoms are caused by a
communicable disease;

5. For application of special volunteer health care licenses
that specify the eligible volunteer shall be either retired from
practice in this state or actively licensed with a clean record in
another state and that such eligible volunteer shall not receive or
have the expectation to receive any payment or compensation, either
direct or indirect, for any services rendered in this state under
the special volunteer license; or

6. For programs, services, or assistance such as soup kitchens,
crisis counseling and intervention, and short-term shelter specified
by the United States Attorney General, in the sole and unreviewable
discretion of the United States Attorney General after consultation
with appropriate federal agencies and departments which:

a. deliver in-kind services at the community level,
including through public or private nonprofit
agencies,

b. do not condition the provision of assistance, the
amount of assistance provided, or the cost of
assistance provided on the income or resources of the
individual recipient, and

c. are necessary for the protection of life or safety.

D. Verification of lawful presence in the United States by the
agency or political subdivision required to make such verification

ENR. S. B. NO. 1877 Page 235
shall require that the applicant execute an affidavit under penalty
of perjury that:

1. He or she is a United States citizen; or

2. He or she is a qualified alien under the federal Immigration
and Nationality Act and is lawfully present in the United States.

The agency or political subdivision providing the state or local
public benefits shall provide notary public services at no cost to
the applicant.

E. For any applicant who has executed the affidavit described
in paragraph 2 of subsection D of this section, eligibility for
benefits shall be verified through the Systematic Alien Verification
for Entitlements (SAVE) Program operated by the United States
Department of Homeland Security or an equivalent program designated
by the United States Department of Homeland Security. Until such
eligibility verification is made, the affidavit may be presumed to
be proof of lawful presence for the purposes of this section.

F. Any person who knowingly and willfully makes a false,
fictitious, or fraudulent statement of representation in an
affidavit executed pursuant to subsection D of this section shall be
subject to criminal penalties applicable in this state for
fraudulently obtaining public assistance program benefits. If the
affidavit constitutes a false claim of U.S. citizenship under 18
U.S.C., Section 911, a complaint shall be filed by the agency
requiring the affidavit with the United States Attorney General for
the applicable district based upon the venue in which the affidavit
was executed.

G. Agencies or political subdivisions of this state may adopt
variations to the requirements of the provisions of this section
which demonstrably improve the efficiency or reduce delay in the
verification process, or to provide for adjudication of unique
individual circumstances where the verification procedures in this
section would impose unusual hardship on a legal resident of
Oklahoma.

H. It shall be unlawful for any agency or a political
subdivision of this state to provide any state, local, or federal

ENR. S. B. NO. 1877 Page 236
benefit, as defined in 8 U.S.C., Section 1621, or 8 U.S.C., Section
1611, in violation of the provisions of this section.

I. Each state agency or department which administers any
program of state or local public benefits shall provide
electronically submit, utilizing the centralized filing system
provided for in Section 378 of this act, an annual report to the
Governor, the President Pro Tempore of the Senate and the Speaker of
the House of Representatives with respect to its compliance with the
provisions of this section. Each agency or department shall monitor
the Systematic Alien Verification for Entitlements Program for
application verification errors and significant delays and shall
provide an annual public report on such errors and significant
delays and recommendations to ensure that the application of the
Systematic Alien Verification of Entitlements Program is not
erroneously denying benefits to legal residents of Oklahoma. Errors
shall also be reported to the United States Department of Homeland
Security by each agency or department.

SECTION 100. AMENDATORY 56 O.S. 2021, Section 162, is
amended to read as follows:

Section 162. A. The Governor shall have the power and duty to
select a Director of Human Services who shall serve as executive and
administrative officer of the Department of Human Services. The
Director shall be appointed wholly on the basis of ability, training
and experience qualifying him or her for public welfare
administration. The Director shall serve, subject to the
confirmation of the Senate, at the pleasure of the Governor. The
salary of the Director shall be fixed by the Governor.

B. The Director shall formulate the policies and adopt rules
and regulations for the effective administration of the duties of
the Department.

C. 1. The Director shall take the appropriate steps to ensure
rules and policies are promulgated to conduct appropriate background
searches of individuals both prior to and, if necessary, during
their employment with the Department. The job categories within the
Department that are subject to background searches prior to
employment shall be determined at the Director’s discretion. Such
background checks shall include, but not be limited to:

ENR. S. B. NO. 1877 Page 237

a. a search of the Oklahoma State Courts Network,
including Oklahoma District Court records,

b. a search of the Restricted Registry maintained by the
Department pursuant to Section 405.3 of Title 10 of
the Oklahoma Statutes,

c. a search of the Department of Corrections files
maintained by the Department pursuant to the Sex
Offender Registration Act,

d. a search of the Department of Corrections Violent
Offender Registry, also known as the Mary Rippy
Violent Crime Offender Registry,

e. a search of all applicable out-of-state child abuse
and neglect registries if the subject of the search
has not lived continuously in Oklahoma for the past
five (5) years,

f. a search of the community services worker registry
maintained by the Department pursuant to Section
1025.3 of this title;, and

g. a fingerprint-based national criminal history record
check. The Department may directly request a national
criminal history record check as defined by Section
150.9 of Title 74 of the Oklahoma Statutes from the
Oklahoma State Bureau of Investigation for the purpose
of investigating the criminal history of any employee
or applicant of the Department.

2. In addition, the Director shall ensure rules and policies
are promulgated to conduct a search of the Department’s records of
abuse and neglect both prior to and, if necessary, during the
employment of any person with the Department and whose scope of
employment will bring that individual into direct contact with any
vulnerable population.

D. The Director shall require and set the amount of the bond
for employees.

ENR. S. B. NO. 1877 Page 238

E. The Director shall cooperate with the federal Department of
Health and Human Services, or other similar agencies created by
Congress, in any reasonable manner as may be necessary to qualify
for federal aid to states in providing assistance to needy persons
in conformity with the provisions of this title, including the
making of reports in the form and containing information as a
federal agency may from time to time require, and comply with any
other similar federal agency requirements necessary to ensure the
correctness and verification of the reports.

F. The Director shall publish an annual report, not later than
four (4) months after the close of each fiscal year. The report
shall be presented electronically submitted to the Governor, the
Speaker of the House of Representatives, and the President Pro
Tempore of the Senate utilizing the centralized filing system
provided for in Section 378 of this act. Annual reports shall
provide information about the operations and programs administered
by the Department and shall include, but shall not be limited to:

1. Statistical information regarding services provided and the
number of persons served by Department programs;

2. Financial data including a reasonable amount of detailed
information regarding revenues and expenditures and a breakdown and
comparison of the Department budget with actual expenditures;

3. Status of the workforce and productivity of the Department;

4. Information about Department efforts to ensure program
accountability and service delivery quality and integrity;

5. Demographic data and trends and their anticipated impact on
demand for services; and

6. Information regarding public and private institution-based
services.

G. The Director shall assume the statutory duties of the
Commission for Human Services.

ENR. S. B. NO. 1877 Page 239
SECTION 101. AMENDATORY 56 O.S. 2021, Section 198.11b,
is amended to read as follows:

Section 198.11b. A. It is the public policy of the State of
Oklahoma to:

1. Recognize and support individuals with disabilities by
treating them with dignity and respect as productive members of our
society in Oklahoma;

2. Acknowledge their contributions as productive and
independent citizens in the state and the useful work they perform
in their local communities;

3. Support a service delivery system for individuals with
disabilities ensuring that the individuals, their families, or
guardians are well informed as to the types of services and
resources available to such individuals in order to encourage their
independence, self-esteem, and self-worth, regardless of the
severity of the disability; and

4. Recognize that self-choice on the part of individuals with
disabilities is critical and that the most appropriate setting for
meeting their needs should be a paramount consideration when
determining appropriate placement of such individuals in community-
based programs, residential care facilities, or any other placement
or service that benefits the needs and well-being of individuals
with disabilities.

B. There is hereby created the Strategic Planning Committee on
the Olmstead Decision to continue until July 1, 2010. The purpose
of the Committee is to monitor the implementation of the
comprehensive, strategic plan for the State of Oklahoma regarding
the Olmstead Decision.

C. The Strategic Planning Committee on the Olmstead Decision
shall be composed of fifteen (15) appointed members, eighteen (18)
ex officio members, and representatives from disability-related
organizations, all of whom shall be voting members, as follows:

1. a. The Governor shall appoint:

ENR. S. B. NO. 1877 Page 240
(1) one person who is a community placement service
provider for persons with disabilities,

(2) one person who is an advocate for persons with
disabilities,

(3) one parent or personal representative of a person
with disabilities,

(4) one member from an organization that provides
direct care services within the Advantage Waiver
Program, and

(5) one member who is a consumer of disability
services.

b. The President Pro Tempore of the Senate shall appoint:

(1) two members of the State Senate,

(2) two members who are consumers of disability
services, and

(3) one member with a disability who has moved from
an institutional setting into the community.

c. The Speaker of the House of Representatives shall
appoint:

(1) two members of the House of Representatives,

(2) one parent or personal representative of a person
with disabilities,

(3) one member who is a consumer of disability
services, and

(4) one member with a disability who has moved from
an institutional setting into the community;

2. The ex officio voting members shall be:

ENR. S. B. NO. 1877 Page 241
a. the Attorney General, or designee,

b. the Director of the Department of Human Services, or
designee,

c. the Division Director of the Developmental
Disabilities Division of the Department of Human
Services, if not the designee of the Director of Human
Services,

d. the State Commissioner of Health, or designee,

e. the Commissioner of the Department of Mental Health
and Substance Abuse Services, or designee,

f. the Administrator of the Oklahoma Health Care
Authority, or designee,

g. the Director of the Office of Management and
Enterprise Services, or designee,

h. the Director of the State Department of Rehabilitation
Services, or designee,

i. the Director of the Office of Disability Concerns, or
designee,

j. the Director of the Oklahoma Employment Security
Commission, or designee,

k. the state coordinator for the federal Ticket To Work
and Work Incentive Act, if not the designee of the
Oklahoma Employment Security Director,

l. the Executive Director of a local housing authority,
or designee,

m. the Executive Director of the Oklahoma Housing Finance
Agency, or designee,

n. the State Superintendent of Public Instruction, or
designee,

ENR. S. B. NO. 1877 Page 242

o. the Director of the Department of Transportation, or
designee,

p. the Commissioner of Labor, or designee,

q. a representative from a local transit authority, or
from a Community Action Agency, that provides
transportation services to individuals with
disabilities, and

r. the Director of the Oklahoma Commission on Children
and Youth, or designee; and

3. The membership shall also include as voting members:

a. one representative from the Developmental Disabilities
Council,

b. one representative from the Statewide Independent
Living Council,

c. two representatives from the Centers for Independent
Living,

d. one representative from the Center for Learning and
Leadership,

e. one representative from the Oklahoma Disability Law
Center,

f. one representative from ABLE-Tech,

g. one representative from the Oklahoma Mental Health
Consumer Council, and

h. a representative of a nonprofit agency, in a county of
five hundred thousand (500,000) or more population,
that collaborates on programs and services for persons
with disabilities.

ENR. S. B. NO. 1877 Page 243
D. 1. Members shall serve at the pleasure of their appointing
authorities. A vacancy on the Committee shall be filled by the
original appointing authority.

2. A majority of the members of the Committee shall constitute
a quorum. A majority of the members present at a meeting may act
for the Committee.

3. The President Pro Tempore and the Speaker shall each
designate a cochair from among the members of the Committee.

4. The cochairs of the Committee shall annually establish a
schedule of each year’s meetings. The Committee shall meet at least
four times annually.

5. Proceedings of all meetings of the Committee shall comply
with the provisions of the Oklahoma Open Meeting Act.

6. The Committee may divide into subcommittees in furtherance
of its purpose.

E. 1. The Department of Human Services and the Office of the
Attorney General shall serve as lead agencies and as such shall
provide primary staffing for the Committee. Appropriate personnel
from the Oklahoma Health Care Authority and the Department of Mental
Health and Substance Abuse Services shall also assist with the work
of the Committee.

2. The Committee may use the expertise and services of the
staffs of the State Senate and the House of Representatives and may,
as necessary, employ and contract for the advice and services of
experts in the field as well as other necessary professional and
clerical staff.

F. All departments, officers, agencies, and employees of this
state shall cooperate with the Committee in fulfilling its duties
and responsibilities including, but not limited to, providing any
information, records, or reports requested by the Committee.

G. Members of the Committee shall receive no compensation for
their service, but shall receive travel reimbursement as follows:

ENR. S. B. NO. 1877 Page 244
1. Legislative members of the Committee shall be reimbursed for
necessary travel expenses incurred in the performance of their
duties in accordance with the provisions of Section 456 of Title 74
of the Oklahoma Statutes; and

2. Nonlegislative members of the Committee shall be reimbursed
by their appointing authorities or respective agencies for necessary
travel expenses incurred in the performance of their duties in
accordance with the State Travel Reimbursement Act.

H. The duties and responsibilities of the Strategic Planning
Committee on the Olmstead Decision shall include, but need not be
limited to:

a. monitoring the implementation of the comprehensive,
strategic plan for Oklahomans with disabilities,
pursuant to the Olmstead Decision,

b. reviewing the service delivery system within the state
and the way in which persons with disabilities
currently access the services,

c. reviewing existing statutes, policies, programs,
services and funding sources that affect Oklahomans
with disabilities, including, but not limited to,
identifying unique approaches and strategies to
funding,

d. identifying and reviewing funding and resource
information available to persons with disabilities and
their families in this state,

e. identifying gaps and barriers in programs and services
to individuals with disabilities and making any
recommendations to enhance programs and the delivery
system for persons with disabilities in Oklahoma,

f. examining the feasibility of expanding the eligibility
criteria for people served by the Developmental
Disabilities Services Division of the Department of
Human Services to include people with disabilities who
are not eligible for the Advantage Waiver program

ENR. S. B. NO. 1877 Page 245
through the Aging Services Division and those with
other diagnoses who are at risk of out-of-home
placement,

g. studying the feasibility and impact of requiring that
assistive technology suppliers in this state meet
national certification requirements, and

h. taking all other actions necessary to monitor and
assist with the implementation of the comprehensive
strategic plan.

I. The Committee shall prepare and submit a report of its
findings and recommendations to the Legislature and Governor by July
15, 2007, and each July 15 thereafter, and shall submit a final
report by July 1, 2010.

SECTION 102. AMENDATORY 56 O.S. 2021, Section 198.16, is
amended to read as follows:

Section 198.16. A. In order to implement the Oklahoma Self-
Directed Care Act:

1. The Oklahoma Health Care Authority Board and the Commission
for Human Services are hereby authorized to promulgate rules
necessary to enact the provisions of this act;

2. The Oklahoma Health Care Authority shall take all actions
necessary to ensure state compliance with federal regulations;

3. The Authority shall apply for any necessary federal waivers
or waiver amendments required to implement the program;

4. The Legislature intends that, as consumers relocate from
institutional settings to community-based options, funds used to
serve consumers in institutional settings shall follow consumers to
cover the cost of community-based services; and

5. The Department of Human Services or other applicable state
entity for the population served may develop an electronic benefit
transfer feature for the provision of self-directed care services to
consumers.

ENR. S. B. NO. 1877 Page 246

B. The Oklahoma Self-Directed Care Act, at a minimum, shall
meet the following requirements:

1. The cost in the aggregate of the services offered through
the self-directed care plan shall be equal to or less than the cost
of a home- and community-based waiver or comparable waiver program;

2. The baseline level of consumer satisfaction shall be
measured by a third party prior to initiation of the Oklahoma Self-
Directed Care Act;

3. The scope of services offered within the Self-Directed Care
Program shall comply with current state statutes and rules, and
federal regulations; and

4. Program evaluation which shall include an indication of
whether consumer satisfaction for Self-Directed Care Program
consumers is higher than or equal to consumer satisfaction for home-
and community-based waiver clients or other comparable waiver
programs, as measured by a third party.

C. Upon the approval of the Centers for Medicare and Medicaid
Services and the availability of funds, the Authority and the
Department shall implement the Self-Directed Care Program statewide
if the evaluation provided for in subsection B of this section
demonstrates consumer satisfaction with and cost-effectiveness in
the delivery of the program.

D. The Authority and the Department shall conduct a feasibility
study on the future design and implementation of expanding the home-
and community-based waiver program to include additional people with
developmental disabilities, spinal cord injury or traumatic brain
injury; provided, however, before allocating any new monies to such
program, the Department and the Authority shall prepare and,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit to the Legislature the results of
the feasibility study and a fiscal impact statement.

E. The Authority and the Department of Human Services shall
each, on an ongoing basis, review and assess the implementation of
the Self-Directed Care Program. By January 15 of each year, the

ENR. S. B. NO. 1877 Page 247
Authority shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit a written
report to the Governor and Legislature that includes each agency’s
review of the program.

F. The Department of Human Services shall appoint a committee
to assist the Department in the development of waivers and rules
related to self-directed services, including the functional needs
assessment used for determination of eligibility for the Self-
Directed Services program. The committee shall be composed of two
self advocates or adults with developmental disabilities; two
parents or family members of consumers; two advocates; two
representatives of an agency providing Developmental Disabilities
Services Division waiver services; one representative from the
Oklahoma Parent Center; and one representative from the University
of Oklahoma Health Sciences Center for Learning and Leadership. The
committee shall sunset no later than four (4) years after
implementation of programs indicated in this act. The Governor,
President Pro Tempore of the Senate and the Speaker of the House of
Representatives shall each appoint an at-large representative to the
Committee.

The Authority is hereby directed to modify the state Medicaid
program Personal Care Program to allow any person to self-direct his
or her own personal care services who:

1. Is eligible to receive Personal Care Program services;

2. Chooses to receive Personal Care Program services; and

3. Is able to direct his or her own care or to designate an
eligible representative to assist in directing such care.

SECTION 103. AMENDATORY 56 O.S. 2021, Section 229, is
amended to read as follows:

Section 229. There is hereby created in the State Treasury a
revolving fund for the Department of Human Services to be designated
the “OK Benefits Revolving Fund”. The fund shall be a continuing
fund, not subject to fiscal year limitations, and shall consist of
all monies designated to the fund by law. The Director of the
Department of Human Services shall, at the end of each month,

ENR. S. B. NO. 1877 Page 248
electronically provide a current balance and statement of
encumbrances of the fund to the Chair of the Senate Appropriations
Committee and the Chair of the House of Representatives Committee on
Appropriations and Budget utilizing the centralized filing system
provided for in Section 378 of this act. All monies accruing to the
credit of the fund are hereby appropriated and may be budgeted and
expended by the Department of Human Services for the sole purpose of
the acquisition, operation, maintenance, repair, and replacement of
the OK Benefits system at the Department of Human Services.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.

SECTION 104. AMENDATORY 56 O.S. 2021, Section 230.50, is
amended to read as follows:

Section 230.50. A. Sections 230.50 through 230.73 and 241.1
through 241.3 of this title shall be known and may be cited as the
“Statewide Temporary Assistance Responsibility System (STARS)”.

B. 1. There is hereby established the Statewide Temporary
Assistance Responsibility System (STARS) which shall consist of
programs and services to be offered by the state with funds provided
by the temporary assistance for needy families block grant
authorized by Section 103 of the federal Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, P.L. 104-193, in
addition to other monies appropriated by law.

2. The STARS shall consist of integrated and coordinated
programs and services that will provide recipients with the
necessary tools to enable them to make the transition from reliance
on public assistance programs to becoming independent, self-
sufficient citizens who are capable of supporting themselves and
their families. Such programs and services include but are not
limited to: career guidance and employment preparation, job
referral, vocational and technical training, child care initiatives,
literacy development, adult basic education, and medical assistance.

3. The Oklahoma Legislature further recognizes the importance
of encouraging establishment of statewide, One-stop
Career/Employment Centers that would link existing resources and

ENR. S. B. NO. 1877 Page 249
federal and state programs for utilization by persons receiving
temporary assistance, and underemployed and unemployed persons.

C. The Department of Human Services shall be responsible for:

1. Implementing the federal Temporary Assistance for Needy
Families Act (TANF);

2. Carrying out the projects and programs specified in the
STARS. The Department shall implement the provisions of the STARS
to the fullest extent permitted by law and in accordance with the
terms and conditions specified by the federal government;

3. Expediting the acquisition of any federal waivers necessary
to implement the provisions of STARS through amendments, combined
waivers, requests, and in any other such manner authorized by
federal law and regulations;

4. Working in close and continuous coordination with
appropriate federal officials and preparing and submitting
completely and in a timely manner all forms and data required by
federal officials to implement STARS; and

5. Continuing to explore and expand opportunities for the state
to pursue agreements with additional service providers including but
not limited to community colleges, technology centers, and community
resources in order to provide direct referral and link recipients
with career and technology education and training programs.

D. In administering the STARS, the Department shall collaborate
with the Oklahoma Employment Security Commission, the Department of
Commerce, the State Department of Health and the State Department of
Education and any other state or federal agency necessary to
implement the provisions of the STARS.

E. In submitting any state plan or amendments to the state plan
to the federal government in order to obtain a temporary assistance
for needy families block grant or child care and development block
grant, the Department shall seek the maximum block grant funding and
federal contingency fund allocations that are available pursuant to
the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, P.L. 104-193.

ENR. S. B. NO. 1877 Page 250

F. The Department for Human Services shall promulgate rules for
developing any projects and programs to implement the STARS.

G. 1. The Department of Human Services is directed to file
with the Speaker of the House of Representatives and the President
Pro Tempore of the Senate a copy of any waiver application or
request for amendment or exemption filed with the federal
government, copies of correspondence to and from the federal
government explaining and elaborating upon said applications, and
final documentation of any waivers, amendments, and exemptions
granted by the federal government pursuant to the STARS.

2. On or before February 1, 1998, for the previous six-month
period, and on or before February 1 of each year, for the previous
fiscal year, the Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
provide a written report on each project and program specified in
the STARS to the Legislature and the Governor which identifies:

a. total number of new applications received by the
Department for TANF, food stamps and child care, and
the number of cases actually certified,

b. number of recipients who signed a personal
responsibility agreement pursuant to the TANF program,

c. number of cases closed by the Department and the
reasons for the case closures,

d. the number of persons who reapplied for benefits
pursuant to the TANF program after a case had been
closed,

e. number of recipients who completed an employability
assessment by level of education,

f. the total number of recipients who completed an
employability assessment, and the number who were
initially referred for:

(1) literacy assessment,

ENR. S. B. NO. 1877 Page 251

(2) adult basic education or remediation classes,

(3) job skills development or vocational training,

(4) employment, or

(5) other,

g. of the total number of recipients assessed for
literacy skills, the number who scored:

(1) at or below 6th grade level,

(2) at 7th or 8th grade level,

(3) at 9th or 10th grade level, or

(4) above 10th grade level,

h. number of sanctions imposed for violations of the
provisions of the STARS or rules promulgated pursuant
thereto or any other provision of law or rule relating
to receipt of benefits by a recipient and the reasons
for imposing the sanction,

i. percentage of recipients in allowable work activities,

j. number of recipients in each allowable work activity
and the length of time spent in that activity,

k. number of recipients employed by state agencies and
contract service providers,

l. number of recipients entering the workforce by
occupation types,

m. estimated average monthly earnings for employed aid
recipients,

n. average monthly number of hours worked by recipients,

ENR. S. B. NO. 1877 Page 252
o. number of qualified aliens applying for assistance
pursuant to the STARS and number of applications
certified by the Department, and

p. such other information deemed necessary by the
Department.

SECTION 105. AMENDATORY 56 O.S. 2021, Section 230.65, is
amended to read as follows:

Section 230.65. A. 1. The Department of Human Services shall
conduct an employability assessment of the education, training,
skills, prior work experience, and supportive service needs of
individuals applying for and receiving assistance pursuant to the
Temporary Assistance for Needy Families (TANF) program.

2. The Department shall arrange for administration of a
recognized literacy screening for individuals who have not obtained
a high school diploma or General Educational Development (GED)
credential and have exhibited a lack of literacy skills. If, in the
opinion of the Department, the applicant or recipient who has
obtained a high school diploma or GED lacks reading skills to the
extent that such insufficiency limits the applicant’s or recipient’s
ability to become self-supporting, the Department shall refer the
individual for a literacy assessment.

3. The Department shall utilize existing community resources,
including, but not limited to, volunteer literacy groups and adult
basic education programs, when arranging for literacy assessments
and remediation of clients who lack sufficient reading skills.

B. The Department of Human Services shall require services to
be provided to each applicant or recipient of benefits in any
program according to a written personal responsibility agreement.
The agreement shall reflect the education, training, skills, prior
work experience and supportive service needs of the applicant or
recipient and shall be:

1. Written in English, or translated into Spanish or other
language, according to the applicant’s or recipient’s needs;

2. Signed by the applicant or recipient;

ENR. S. B. NO. 1877 Page 253

3. Signed by the parent of the applicant or recipient if the
applicant or recipient is under eighteen (18) years of age;

4. Signed by the case manager; and

5. Reviewed by both the applicant or recipient and the case
manager at least once a year. The agreement may be revised from
time to time according to the needs of the recipient, the
recipient’s family, and the program.

C. The personal responsibility agreement shall set forth the
specific responsibilities of the recipient, at a minimum, to:

1. Develop a detailed plan for achieving self-sufficiency;

2. Participate in any educational or training program required
by the Department pursuant to the results of the employability and
literacy assessments;

3. Participate in life-skills training including, but not
limited to, financial management classes, conflict resolution
training, and social skills development;

4. Be available for and actively seek and maintain employment,
and accept any reasonable employment as soon as it becomes available
as required by the TANF program;

5. Participate in a community service, public works or private
sector job pursuant to the requirements of the Statewide Temporary
Assistance Responsibility System and the results of the
employability and literacy assessments;

6. If the recipient is a minor parent, live in a supervised
adult setting;

7. Accept responsibility for ensuring that the recipient’s
child complies with the attendance requirements of the local school
district and attends school until the child of the recipient either:

a. graduates from high school or attains a high school
equivalency certificate, or

ENR. S. B. NO. 1877 Page 254

b. becomes nineteen (19) years of age,

whichever occurs first;

8. Accept responsibility for attending any classes required by
a program at least ninety percent (90%) of the time;

9. Immunize the recipients’ minor children pursuant to the
State Department of Health’s immunization schedule; and

10. a. Undergo a literacy skills assessment utilizing a
testing instrument which measures whether such
recipient is reading at a minimum of an eighth grade
reading level, where the recipient has the capacity to
read at such level or, regardless of reading level,
which indicates that the recipient would benefit from
compulsory participation in a literacy skills
improvement program.

b. Based on the results of the assessment, the recipient
shall agree to enroll and actively participate in a
literacy skills improvement program and provide
documentation of substantial quantifiable literacy
improvement. Any recipient who is reading at less
than an eighth grade level shall be required to
continue to substantially and quantifiably improve his
or her reading skills until such recipient
demonstrates a level of reading proficiency that is at
least equal to an eighth grade reading level.

c. On or before December 31 of each year, the Department
of Human Services shall annually, utilizing the
centralized filing system provided for in Section 378
of this act, electronically provide to the Governor,
the President Pro Tempore of the Senate, and the
Speaker of the House of Representatives a written
report outlining by age the number of recipients:

(1) assessed for literacy skills,

ENR. S. B. NO. 1877 Page 255
(2) who failed to demonstrate eighth grade reading
level proficiency,

(3) who agreed to enroll and participate in a
literacy skills improvement program, and

(4) who either provided documentation of substantial
quantifiable literacy skills improvement or whose
case was closed prior to completion.

D. The Department may sanction or impose financial penalties on
a recipient for failure to comply with the provisions of the
personal responsibility agreement.

SECTION 106. AMENDATORY 56 O.S. 2021, Section 239, is
amended to read as follows:

Section 239. On or before December 31 of each year, the
Department shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically file a written report
with the Division of the Budget and Division of Central Accounting
and Reporting, the Director of the Legislative Service Bureau, the
President Pro Tempore of the Senate, and the Speaker of the House of
Representatives, containing an accounting of all monies received by
the Department from the federal programs pursuant to Title IV-D of
the Social Security Act, as amended, and all monies received
pursuant to orders for child support or administrative
determinations of the Department for the preceding federal fiscal
year. The report shall also specify any expenditures made by the
Department pursuant to orders for child support or administrative
determinations of the Department for the preceding federal fiscal
year.

SECTION 107. AMENDATORY 56 O.S. 2021, Section 241.4, is
amended to read as follows:

Section 241.4. A. No debit or electronic benefit transfer
cards that contain state or federal funds from programs including,
but not limited to, Temporary Assistance for Needy Families (TANF)
may be used in any transaction in:

1. Any liquor store;

ENR. S. B. NO. 1877 Page 256

2. Any casino, gambling casino or gaming establishment;

3. Any retail establishment which provides adult-oriented
entertainment in which performers disrobe or perform in an unclothed
state for entertainment; or

4. Any retail establishment whose principal business is that of
selling cigarettes, cigar or tobacco products.

B. For the purposes of this act:

1. “Liquor store” means any retail establishment that sells
exclusively or primarily intoxicating liquor but does not include a
grocery store that sells both intoxicating liquor and groceries;

2. “Casino”, “gambling casino” and “gaming establishment” do
not include:

a. a grocery store that sells groceries and that also
offers, or is located within the same building or
complex as an establishment that offers casino,
gambling or gaming activities, or

b. any other establishment that offers casino, gambling
or gaming activities incidental to the principal
purpose of the business; and

3. “Electronic benefit transfer transaction” means the use of a
credit or debit card service, automated teller machine, point-of-
sale terminal, or access to an online system for the withdrawal of
funds or the processing of a payment for merchandise or service.

C. An individual who violates the provisions of this section
shall be subject to a reduction in Temporary Assistance for Needy
Families (TANF) benefits as follows:

1. For the first violation, twenty-five percent (25%) of the
individual’s TANF payment standard for a period of three (3) months;

ENR. S. B. NO. 1877 Page 257
2. A second violation following the three (3) month reduction
in benefits shall result in a thirty-five percent (35%) reduction in
TANF benefits for six (6) subsequent months;

3. A third violation following the six (6) month reduction in
benefits shall result in a fifty percent (50%) reduction in TANF
benefits for twelve (12) subsequent months; and

4. Subsequent violations shall result in the individual being
deemed permanently ineligible for TANF benefits. Individuals with
children receiving TANF benefits shall only be eligible to receive
benefit payments for dependent children as provided by state and
federal law.

D. By August 1, 2013, the Oklahoma Department of Human Services
shall report on the status of an implementation plan pursuant to the
provisions of this section. The President Pro Tempore of the Senate
and the Speaker of the House of Representatives shall be provided
with updates on the status of implementation on a quarterly basis
until provisions of this section are fully implemented by the
Department.

SECTION 108. AMENDATORY 56 O.S. 2021, Section 1008, is
amended to read as follows:

Section 1008. The Attorney General shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit an annual report, due by July 1 of each year,
to the Speaker of the House of Representatives, the President Pro
Tempore of the Senate, the Governor, and the Secretary of State
detailing the number of Medicaid fraud cases investigated and
litigated and the amount of monies collected in the previous fiscal
year.

SECTION 109. AMENDATORY 56 O.S. 2021, Section 1011.5, is
amended to read as follows:

Section 1011.5. A. 1. The Oklahoma Health Care Authority
shall develop an incentive reimbursement rate plan for nursing
facilities focused on improving resident outcomes and resident
quality of life.

ENR. S. B. NO. 1877 Page 258
2. Under the current rate methodology, the Authority shall
reserve Five Dollars ($5.00) per patient day designated for the
quality assurance component that nursing facilities can earn for
improvement or performance achievement of resident-centered outcomes
metrics. To fund the quality assurance component, Two Dollars
($2.00) shall be deducted from each nursing facility’s per diem
rate, and matched with Three Dollars ($3.00) per day funded by the
Authority. Payments to nursing facilities that achieve specific
metrics shall be treated as an “add back” to their net reimbursement
per diem. Dollar values assigned to each metric shall be determined
so that an average of the five-dollar-quality incentive is made to
qualifying nursing facilities.

3. Pay-for-performance payments may be earned quarterly and
based on facility-specific performance achievement of four equally-
weighted, Long-Stay Quality Measures as defined by the Centers for
Medicare and Medicaid Services (CMS).

4. Contracted Medicaid long-term care providers may earn
payment by achieving either five percent (5%) relative improvement
each quarter from baseline or by achieving the National Average
Benchmark or better for each individual quality metric.

5. Pursuant to federal Medicaid approval, any funds that remain
as a result of providers failing to meet the quality assurance
metrics shall be pooled and redistributed to those who achieve the
quality assurance metrics each quarter. If federal approval is not
received, any remaining funds shall be deposited in the Nursing
Facility Quality of Care Fund authorized in Section 2002 of this
title.

6. The Authority shall establish an advisory group with
consumer, provider, and state agency representation to recommend
quality measures to be included in the pay-for-performance program
and to provide feedback on program performance and recommendations
for improvement. The quality measures shall be reviewed annually
and shall be subject to change every three (3) years through the
agency’s promulgation of rules. The Authority shall insure
adherence to the following criteria in determining the quality
measures:

a. provides direct benefit to resident care outcomes,

ENR. S. B. NO. 1877 Page 259

b. applies to long-stay residents, and

c. addresses a need for quality improvement using the
Centers for Medicare and Medicaid Services (CMS)
ranking for Oklahoma.

7. The Authority shall begin the pay-for-performance program
focusing on improving the following CMS nursing home quality
measures:

a. percentage of long-stay, high-risk residents with
pressure ulcers,

b. percentage of long-stay residents who lose too much
weight,

c. percentage of long-stay residents with a urinary tract
infection, and

d. percentage of long-stay residents who got an
antipsychotic medication.

B. The Oklahoma Health Care Authority shall negotiate with the
Centers for Medicare and Medicaid Services to include the authority
to base provider reimbursement rates for nursing facilities on the
criteria specified in subsection A of this section.

C. The Oklahoma Health Care Authority shall audit the program
to ensure transparency and integrity.

D. The Oklahoma Health Care Authority shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically provide an annual report of the incentive
reimbursement rate plan to the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate by
December 31 of each year. The report shall include, but not be
limited to, an analysis of the previous fiscal year including
incentive payments, ratings, and notable trends.

SECTION 110. AMENDATORY 56 O.S. 2021, Section 1017.4, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 260

Section 1017.4. A. The Oklahoma Health Care Authority is
directed to create a system of enrollment, Medicaid eligibility, and
certification for home- and community-based services provided by the
ADvantage Waiver Program that provides for presumptive Medicaid
eligibility and certification that is the same as that which exists
for nursing facilities as provided for in administrative rules
promulgated by the Oklahoma Health Care Authority Board. The system
shall facilitate the provision of home- and community-based services
to persons at risk of placement in a nursing facility but who elect
to be served in a home- and community-based setting in lieu of
nursing facility services.

B. The Department of Human Services is directed to make such
changes in its regulations, policies and procedures as are necessary
to implement the enrollment, Medicaid eligibility, and certification
requirements established pursuant to subsection A of this section.

C. The Oklahoma Health Care Authority shall develop and submit
for approval no later than November 1, 2011, applications for
waivers or amendments to waivers of applicable federal laws and
regulations as necessary to implement the provisions of the Oklahoma
Choices for Long-Term Care Act. Copies of all waivers submitted to
the United States Centers for Medicare and Medicaid Services shall
be provided to the Governor, the Speaker of the Oklahoma House of
Representatives and the President Pro Tempore of the Oklahoma State
Senate within ten (10) days of their submissions. Waivers and
amendments to waivers approved by the United States Centers for
Medicare and Medicaid Services as provided in this section shall be
provided to the Governor, the Speaker of the Oklahoma House of
Representatives and the President Pro Tempore of the Oklahoma State
Senate within ten (10) days of their approval. The Oklahoma Health
Care Authority shall implement any waivers and amendments to waivers
approved by the United States Centers for Medicare and Medicaid
Services no later than January 1, 2012, or within sixty (60) days of
their approval. The Oklahoma Health Care Authority shall report the
savings as the result of the Oklahoma Choices for Long-Term Care Act
each year in its annual report.

SECTION 111. AMENDATORY 56 O.S. 2021, Section 3002, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 261
Section 3002. A. The following agencies are directed to
jointly design and implement a coordinated system of information,
referral, and follow-up services for older Oklahomans:

1. The Aging Services Division of the Department of Human
Services;

2. The State Department of Health;

3. The Department of Mental Health and Substance Abuse
Services;

4. The Oklahoma Health Care Authority;

5. The Oklahoma Department of Veterans Affairs; and

6. The Office of Management and Enterprise Services.

B. 1. The Aging Services Division of the Department of Human
Services shall be the lead agency for the design and implementation
of the system required by the Coordination of Services for Older
Oklahomans Act and shall be responsible for convening meetings and
providing meeting space, administrative, staff and other necessary
support services. The Division shall convene the first meeting of
the agencies on or before July 1, 1996.

2. The remaining agencies listed in subsection A of this
section shall be responsible for providing information, staff, and
other assistance as necessary to design and implement the system
required by the Coordination of Services for Older Oklahomans Act.

3. The Aging Services Division shall invite representatives of
the Area Agencies on Aging, Eldercare, managed health care
organizations and other appropriate public and private entities to
participate in the design of the system required by the Coordination
of Services for Older Oklahomans Act.

4. The Office of Management and Enterprise Services shall
provide technical assistance and support necessary for the
development of the shared, computerized data base required by the
Coordination of Services for Older Oklahomans Act.

ENR. S. B. NO. 1877 Page 262
C. On or before December 1 of each year, the agencies listed in
subsection A of this section shall jointly submit a report
electronically to the Governor, the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, and the
chairs of the appropriate legislative committees utilizing the
centralized filing system provided for in Section 378 of this act.
The report shall include, but not be limited to:

1. A statement on the progress in the design and implementation
of the system required by the Coordination of Services for Older
Oklahomans Act; and

2. Identification of any statutory changes and funding
necessary to implement the system.

SECTION 112. AMENDATORY Section 17, Chapter 395, O.S.L.
2022, as amended by Section 3, Chapter 386, O.S.L. 2025 (56 O.S.
Supp. 2025, Section 4002.12b), is amended to read as follows:

Section 4002.12b. A. The Oklahoma Health Care Authority shall
ensure the sustainability of the transformed Medicaid delivery
system.

B. The Authority shall ensure that existing revenue sources
designated for the state share of Medicaid expenses are designed to
maximize federal matching funds for the benefit of providers and the
state.

C. The Authority shall develop a plan, utilizing waivers or
Medicaid state plan amendments as necessary, to preserve or increase
supplemental payments available to providers with existing revenue
sources as provided in the Oklahoma Statutes including, but not
limited to:

1. Hospitals that participate in the supplemental hospital
offset payment program as provided by Section 3241.3 of Title 63 of
the Oklahoma Statutes;

2. Hospitals in this state that have Level I trauma centers, as
defined by the American College of Surgeons, that provide inpatient
and outpatient services, along with comprehensive pediatric
services, and are owned, operated, or in partnership with the

ENR. S. B. NO. 1877 Page 263
University Hospitals Trust or the Oklahoma State University Medical
Trust, or affiliates or locations of those hospitals designated by
the University Hospitals Trust or the Oklahoma State University
Medical Trust as part of the hospital trauma system. The qualified
entities in the Oklahoma City metropolitan area shall be a hospital
owned, operated, or in partnership with the University Hospitals
Authority or University Hospitals Trust. The qualified entities in
the Tulsa metropolitan area shall be a hospital owned, operated, or
in partnership with the Oklahoma State University Medical Authority,
or Oklahoma State University Medical Trust; and

3. Providers employed by or contracted with, or otherwise a
member of the faculty practice plan of:

a. a public, accredited Oklahoma medical school, or

b. a hospital or health care entity directly or
indirectly owned or operated by the University
Hospitals Trust or the Oklahoma State University
Medical Trust.

D. Subject to approval by the Centers for Medicare and Medicaid
Services, the Authority shall preserve and, to the maximum extent
permissible under federal law, improve existing levels of funding
through directed payments or other mechanisms outside the capitated
rate to contracted entities, including, where applicable, the use of
a directed payment program with an average commercial rate
methodology under the Supplemental Hospital Payment Program Act.

E. On or before January 31, 2023, the Authority shall submit a
report to the Oklahoma Health Care Authority Board, the Chair of the
Appropriations Committee of the Oklahoma State Senate, and the Chair
of the Appropriations and Budget Committee of the Oklahoma House of
Representatives that includes the Authority’s plans to continue
supplemental payment programs and implement a managed care directed
payment program for hospital services that complies with the reforms
required by this act. If Medicaid-specific funding cannot be
maintained as currently implemented and authorized by state law, the
Authority shall propose to the Legislature any modifications
necessary to preserve supplemental payments and managed care
directed payments to prevent budgetary disruptions to providers.

ENR. S. B. NO. 1877 Page 264
F. The Authority shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit a
report to the Governor, the President Pro Tempore of the Oklahoma
State Senate and the Speaker of the Oklahoma House of
Representatives that includes at a minimum:

1. A description of the selection process of the contracted
entities;

2. Plans for enrollment of Medicaid members in health plans of
contracted entities;

3. Medicaid member network access standards;

4. Performance and quality metrics;

5. Maintenance of existing funding mechanisms described in this
section;

6. A description of the requirements and other provisions
included in capitated contracts; and

7. A full and complete copy of each executed capitated
contract.

G. F. 1. Each contracted entity shall report to the Authority
in time intervals determined by the Authority and through a process
determined by the Authority all claims data, expenditures, and such
other financial reporting information as may be required by the
Authority.

2. The Authority shall compile and analyze the information
described in paragraph 1 of this subsection and annually, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit a report summarizing such information,
devoid of any personally identifying information, to the President
Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the Oklahoma Health Care Authority Board.

SECTION 113. AMENDATORY 57 O.S. 2021, Section 95, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 265
Section 95. A. Any person convicted of an offense against the
laws of this state and sentenced to imprisonment that is not to be
served in a county jail shall be transported by the sheriff of the
county where the person is sentenced, or transported by a designated
representative of the sheriff, to the Department of Corrections at
the Lexington Assessment and Reception Center or other location
designated by the Director of the Department of Corrections.

B. Any person convicted of an offense against the laws of this
state and sentenced to imprisonment that is not to be served in a
county jail and who is not housed in a county jail shall be
transported by the detention center, or transported by a designated
representative of the detention center, to the Department of
Corrections at the Lexington Assessment and Reception Center or
other location designated by the Director of the Department of
Corrections.

C. The sheriff shall deliver the person to the Department at
such center together with:

1. A certified copy of the judgment and sentence from the court
ordering such imprisonment, unless the judgment and sentence
previously has been sent electronically by an authorized clerk of
the court;

2. A certificate setting forth the number of days served in the
county jail after the pronouncement of judgment and rendering of
sentence for the offenses committed;

3. A copy of any medical, dental, or mental health records of
the defendant for conditions reviewed or treated while in the
custody of the sheriff;

4. Any medication or medical or dental device prescribed for
the defendant while in the custody of the sheriff or for a
preexisting condition; and

5. A copy of the presentence investigation report, if a report
was prepared.

D. The Department of Corrections shall give the sheriff a
receipt for each person received into the custody of the Department.

ENR. S. B. NO. 1877 Page 266
The receipt shall be filed by the sheriff in the office of the clerk
of the court where the sentence was made.

E. The Department of Corrections shall reimburse the
transporting agency as follows:

1. Mileage from the county sheriff’s office to the appropriate
reception center and back to the county sheriff’s office; and

2. Hourly wage reimbursement for the transporting officer for
the hours of transport travel and time spent at the reception center
based on the transporting officer’s normal hourly wage.
Reimbursement shall not exceed Thirty Dollars ($30.00) an hour per
officer. Documentation of the officer’s hourly wage shall accompany
all reimbursement requests to the Department.

The Department of Corrections shall have the authority to
promulgate rules and forms for the reimbursement procedures provided
in this section.

The Department of Corrections shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a quarterly report to the Chair of the Senate
Appropriations Committee and Chair of the House of Representatives
Appropriations and Budget Committee.

SECTION 114. AMENDATORY 57 O.S. 2021, Section 115, is
amended to read as follows:

Section 115. A. A reentry program is hereby authorized to be
created within the Department of Corrections by January 1, 2005, for
offenders who need structured release prior to completion of the
sentence. The reentry program shall be designed to provide
structure and control as offenders near release to the community
without supervision. No offender otherwise eligible for any
community placement, halfway house, work release program, or minimum
security placement shall be eligible for this program. The program
shall not receive state appropriations and shall be fully funded by
federal or private funds.

B. The reentry program shall begin in a county or counties
selected by the Department and may expand or change to other

ENR. S. B. NO. 1877 Page 267
locations within the state at the discretion of the Department. The
program shall provide a continuum of services to meet the needs of
offenders assigned or required to complete the program. The program
duration shall be eighteen (18) months composed of twelve (12)
months at minimum security level and six (6) months at community
placement prior to release. The inmate is required to complete
twelve (12) months at minimum security level prior to completing the
six (6) months at community placement. The Department is authorized
to use monitoring and supervision in all levels of security as
necessary to ensure structure, control, and compliance.

C. The Department shall designate at least one medium, minimum
and community security level facility capable of serving male and
female offenders assigned or required to complete the program. Male
and female offenders shall not be housed in the same facility. Each
of the designated facilities shall be solely devoted to the program.
Nothing in this act shall require all offenders to be assigned to a
reentry program prior to release without supervision.

D. Any offender assigned or required to complete a reentry
program who subsequently fails, refuses or is noncompliant in the
reentry program shall be removed from the program, after notice of a
program failure, and placed in a higher security level facility
according to the rules established for the program. Earned credits
may be withheld for those inmates who fail to satisfactorily
complete the program as provided by rule.

E. All services available in the reentry program shall be
selected after open bid and the Department shall actively solicit
faith-based and secular providers in all service provider
categories. Offenders assigned to the reentry program shall choose
a provider of services for each service category.

F. All service providers contracting for the reentry program
shall be required to meet outcome-based standards and evaluations
and are required to measure recidivism for all offenders placed for
services with that provider according to the rules of the
Department.

G. The Department shall consider offenders with long-term
incarceration, violent offenses, repeat offenders with multiple
incarcerations, offenders ineligible for parole who will be released

ENR. S. B. NO. 1877 Page 268
without supervision, offenders with parole stipulations, and
offenders having consecutive sentences longer than the calculation
of a life sentence for purposes of determing determining parole
eligibility.

H. The Governor and the Pardon and Parole Board shall work
together with the Department of Corrections within the capabilities
of the reentry program and shall have the authority to stipulate
that an offender shall be paroled, conditioned upon completion of
the program, without further hearing recommendation or approval.

I. No offender shall be placed in the reentry program until the
offender is within eighteen (18) months of release from the custody
of the Department or is granted, by stipulation or otherwise, a
parole release upon completion of the reentry program. Nothing in
this act shall operate to reduce the length of a sentence to
incarceration, except completion of the reentry program.

J. The Department shall establish rules and procedures to
implement the provisions of this act. An annual report shall be
generated at the completion of each calendar year. This report
shall reflect the evaluation of the program based on the outcomes
designated by the Department. Copies of said such report shall be
forwarded by electronic submission, utilizing the centralized filing
system provided for in Section 378 of this act, to the Governor, the
Chair of the Sentencing Commission, the President Pro Tempore of the
Senate, the Speaker of the House of Representatives, and the
majority and minority leaders of the Legislature.

SECTION 115. AMENDATORY 57 O.S. 2021, Section 521, is
amended to read as follows:

Section 521. A. Whenever a person is convicted of a felony and
is sentenced to imprisonment that is not to be served in a county
jail, the person shall be committed to the custody of the Department
of Corrections and shall be classified and assigned to a
correctional facility or program designated by the Department and
authorized by law.

B. It is the intent of the Legislature that inmates in the
custody of the Department of Corrections, prior to leaving the
custody of the Department, be reintegrated into society through the

ENR. S. B. NO. 1877 Page 269
use of work release programs, work centers, community corrections
centers, intermediate sanctions facilities, accredited halfway
houses, and transitional living centers, subject to the availability
of space and funding.

C. All persons who have nonassaultive institutional records and
who are convicted of only previous and current nonviolent offenses
and have a nonviolent juvenile record and are sentenced to the
custody of the Department of Corrections shall be processed for
assignment to a work release program, a work center, a community
corrections center, an intermediate sanctions facility, an
accredited halfway house, a transitional living facility, or any
combination of such placements not less than two hundred ten (210)
calendar days immediately prior to release from the custody of the
Department of Corrections, unless the offender is currently
participating in another approved program based upon the offender’s
needs assessment. Other persons may be processed for assignment
according to the offender’s needs and security classification not
more than one hundred eighty (180) days prior to release from the
custody of the Department. This assignment shall be for the purpose
of assisting the person in obtaining gainful employment, receiving
reintegration skills, and locating a suitable post-release
residence. For purposes of this subsection, assistance in obtaining
employment, receiving reintegration skills, and a post-release
residence shall be part of the function of the placement and shall
not be construed to require or authorize any financial assistance or
expenditure of state funds to any inmate or to any contract provider
for additional program services to an individual inmate.

D. The provisions of subsections B and C of this section shall
not be applicable to inmates, as determined on an individual basis
by the Department of Corrections, who otherwise constitute a serious
or immediate risk to public health and safety.

E. Nothing in this section shall require a county jail to
provide any services that are not currently being provided.

F. Not later than February 1st 1 of each year beginning
February 1, 2011, the Director of the Department of Corrections
shall post on the Department’s website and, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically transmit to the President Pro Tempore of the Senate,

ENR. S. B. NO. 1877 Page 270
the Speaker of the House of Representatives, and the Governor, a
report on the progress of the Department in meeting the goals and
intent of subsections B and C of this section. Such report shall,
at a minimum, include the following information:

1. A listing of all facilities owned, operated, and/or or
contracted to the Department by security level together with the
number of inmates released from each facility during the preceding
calendar year;

2. A total of the number of inmates released from physical
custody during the preceding calendar year;

3. A total of the number of inmates employed by private
employers prior to the inmate’s release from physical custody; and

4. A total of the number of inmates exiting the Department’s
system who have spent less than one hundred eighty (180) calendar
days in a halfway house.

The report shall be in such form and contain such other information
as may be required or desired by the President Pro Tempore of the
Senate, the Speaker of the House of Representatives, and the
Governor.

SECTION 116. AMENDATORY 57 O.S. 2021, Section 530.3, is
amended to read as follows:

Section 530.3. It is the intent of the Legislature that the
Department of Corrections vigorously provide assistance to the
United States Department of Justice:

1. For the identification of foreign-born nationals who are in
the custody of the Department of Corrections;

2. In conducting interviews of and processing foreign-born
nationals or suspected foreign-born nationals who are in the custody
of the Department of Corrections; and

3. In conducting and completing the deportation process of
inmates whom the United States Department of Justice determines to
be aliens deportable from the United States. The Department of

ENR. S. B. NO. 1877 Page 271
Corrections shall assist the Immigration and Naturalization Service
in obtaining court certified copies of any records requested for use
in official criminal or administrative proceedings.

The Department of Corrections shall implement rules for the
determination of the place of birth of all inmates in the custody of
the Department. This determination shall be completed by January 1,
1997. Upon completion of this determination, the Department of
Corrections shall report to the Governor, the President Pro Tempore
of the Senate, and the Speaker of the House of Representatives how
many inmates in the custody of the Department are not citizens of
the United States. The Department of Corrections shall, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit updated reports to the Governor, the
President Pro Tempore of the Senate, and the Speaker of the House of
Representatives on a quarterly basis.

The Department of Corrections shall also implement rules for the
notification of the Immigration and Naturalization Service of the
identity of all inmates in the custody of the Department of
Corrections who are foreign-born nationals or that the Department of
Corrections suspects are foreign-born nationals. The Department of
Corrections shall convene a working group and include the
Immigration and Naturalization Service in the formulation of rules
for implementation of this section.

SECTION 117. AMENDATORY 57 O.S. 2021, Section 541, is
amended to read as follows:

Section 541. A. There is hereby created in the State Treasury
an Industries Revolving Fund for the Department of Corrections.

B. The revolving fund shall consist of earnings derived from
prison industries operated by the Department of Corrections and from
that portion of the prisoner’s income apportioned and paid into the
prison system to recover the cost of incarceration of the prisoners
as provided by law. Funds derived from prisoner wages shall be
maintained and accounted for separately in this fund. The
Industries Revolving Fund shall be a continuing fund, not subject to
fiscal year limitations, and shall be under the control and
management of the State Board of Corrections.

ENR. S. B. NO. 1877 Page 272
C. Expenditures from the Industries Revolving Fund shall be
budgeted and expended pursuant to the laws of the state and the
statutes relating to public finance and to the institution. The
fund may be used to purchase, maintain, and repair machinery, to
purchase materials and supplies for the prison industries, and to
defray any other expenses necessary to operation of the industries,
with first priority being given to repairs, replacement, and
modernization of industrial or agricultural machinery or equipment.
These funds may also be used to support the overall operation of the
Department of Corrections subject to approval of the Director of the
Department of Corrections. Expenditures from the fund derived from
prisoner’s income may be used for the maintenance of prisoners in
prison institutions and all expenses related thereto under such
rules as may be established by the State Board of Corrections.
Warrants for expenditures from the Industries Revolving Fund shall
be based on claims signed by an authorized employee or employees of
the Department, and approved for payment by the Director of the
Office of Management and Enterprise Services. The Department shall
maintain a separate accounting of receipts and expenditures for each
industry for periodic review by the Legislature. The fund may not
be used to employ personnel in excess of those authorized by
legislative action.

D. All funds in the Department of Corrections’ Industries
Revolving Funds not encumbered or obligated upon the operative date
of this section shall be transferred to a single Industries
Revolving Fund of the Department of Corrections.

E. The Administrator of Industrial Production will determine
the prices of all goods produced through the state prison
industries, and the Administrator of Agri-Services will determine
the prices of all goods produced by Agri-Service units. These
prices will be filed with the Budget Office.

When industrial or agricultural items or products are furnished
to the institutions of the Department, or sold to other governmental
agencies, payment therefor shall be made within thirty (30) days for
deposit in the revolving account to be used in purchasing expendable
items, raw materials or other items needed to produce additional
such products or items, and for such other purposes as are
authorized by law. The Administrator of Industrial Production or
Administrator of Agri-Services may establish higher prices for sale

ENR. S. B. NO. 1877 Page 273
of products to governmental agencies, according to the current
market value of each product.

F. The Department of Corrections is authorized to pay inmates
for productive work in accordance with policies set by the State
Board of Corrections. The State Board of Corrections shall certify
the positions to be paid and the rate of pay in accordance with the
responsibilities and skills required for the position. The
Department of Corrections shall develop policies for payment of
inmates in the Industries Program that promote productivity as well
as compensate for responsibilities and skills. The Department
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically file such policy statements
with the Chairs of the appropriate committees of both the Senate and
the House of Representatives as designated by the President Pro
Tempore of the Senate and the Speaker of the House of
Representatives. Any change in this policy by the State Board of
Corrections may be voided by legislative action to rescind such
policy.

SECTION 118. AMENDATORY 59 O.S. 2021, Section 858-705.1,
is amended to read as follows:

Section 858-705.1. A. In addition to the seven (7) appointed
members of the Board, the Insurance Commissioner shall serve as ex-
officio Chairperson of the Board, voting only in case of a tie.

B. As Chairperson, the Insurance Commissioner, in addition to
his duties prescribed by law as Insurance Commissioner on September
1, 1991, shall be required to perform the following duties, for
which duties he or she shall be paid an additional Twelve Thousand
Dollars ($12,000.00) annually, payable monthly from appropriations
made to the Insurance Department:

1. Keep records of the proceedings of the Board;

2. Call special meetings of the Board when in the judgment of
the chairperson it is necessary or proper to do so;

3. Procure appropriate examination questions and answers which
shall meet criteria established by the Appraisal Qualifications
Board of the Appraisal Foundation and approved by the Board;

ENR. S. B. NO. 1877 Page 274

4. Prepare and, utilizing the centralized filing system
provided for in Section 378 of this act, electronically file an
annual report with the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, and the Governor detailing the
number of applicants for the examination and the pass/fail rate;

5. Establish and maintain a recordkeeping system approved by
the Board to monitor compliance with the continuing education
requirements imposed by law;

6. Make recommendations to the Board concerning the
establishment of administrative procedures for conducting
disciplinary proceedings pursuant to the provisions of the Oklahoma
Certified Real Estate Appraisers Act;

7. Develop a procedure approved by the Board whereby persons
aggrieved by the actions of a licensed or certified appraiser may
file complaints with the Board;

8. Annually compile and, utilizing the centralized filing
system provided for in Section 378 of this act, electronically file
a report with the Speaker of the House of Representatives, President
Pro Tempore of the Senate, and the Governor detailing the number of
complaints received by the Board, the resulting number of
investigations and hearings conducted and the final disposition of
these matters; and

9. Prepare and, utilizing the centralized filing system
provided for in Section 378 of this act, electronically file a
report with the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, and the Governor evaluating the
impact of the voluntary licensure/certification program on future
appraisers and recommend whether an appraiser trainee or
apprenticeship program should be instituted; and

10. Submit to the Speaker of the House of Representatives, the
President Pro Tempore of the Senate and the Governor on or before
January 1, 1994, a report evaluating the impact of the
licensure/certification requirements imposed by the Oklahoma
Certified Real Estate Appraisers Act on the appraiser and banking
industry and include in the report any recommendations for

ENR. S. B. NO. 1877 Page 275
amendments to the Oklahoma Certified Real Estate Appraisers Act.

SECTION 119. AMENDATORY 59 O.S. 2021, Section 1000.4, as
last amended by Section 1, Chapter 321, O.S.L. 2025 (59 O.S. Supp.
2025, Section 1000.4), is amended to read as follows:

Section 1000.4. A. 1. Pursuant to and in compliance with
Article I of the Administrative Procedures Act, the Construction
Industries Board shall have the power to adopt, amend, repeal, and
promulgate rules as may be necessary to regulate the plumbing,
electrical, roofing, and mechanical trades, building and
construction inspectors and home inspectors. All rules promulgated
by the Board shall be reviewed and approved as provided in
subsection F of Section 308 of Title 75 of the Oklahoma Statutes.

2. The Board shall have the power to enforce the provisions of
the Construction Industries Board Act, The Plumbing License Law of
1955, the Oklahoma Inspectors Act, the Electrical License Act, the
Mechanical Licensing Act, the Home Inspection Licensing Act, and the
Roofing Contractor Registration Act, as provided in the respective
acts.

B. The Board shall have the following powers:

1. Exercise all incidental powers and duties which are
necessary to effectuate the provisions of The Plumbing License Law
of 1955, the Oklahoma Inspectors Act, the Electrical License Act,
the Mechanical Licensing Act, the Home Inspection Licensing Act, and
the Roofing Contractor Registration Act, including but not limited
to authorizing the Board chair, vice-chair, administrator, or
designee to determine good reason for and to cancel a scheduled
meeting or reschedule meetings of a licensing or registration act
advisory examining committee of the Board pursuant to state
requirements. Such canceling or rescheduling meetings authority
provided for in this section shall supersede all other meeting
scheduling requirements for acts administered by the Board;

2. Serve as a code variance and appeals board for the trades
and industries it regulates which do not have statutory code
variance and appeals boards;

ENR. S. B. NO. 1877 Page 276
3. Order or subpoena the attendance of witnesses, the
inspection of records and premises, and the production of relevant
books and papers for the investigation of matters that may come
before the Board;

4. Initiate disciplinary proceedings, request prosecution of
and initiate injunctive proceedings against any person who violates
any of the provisions of The Plumbing License Law of 1955, the
Oklahoma Inspectors Act, the Electrical License Act, the Mechanical
Licensing Act, the Home Inspection Licensing Act, and the Roofing
Contractor Registration Act;

5. Maintain an administrative staff including, but not limited
to, a Construction Industries Administrator whose appointment shall
be made as provided in Section 1000.6 of this title;

6. Establish and levy administrative fines and penalties for
violations of law or rule in the trades and industries the Board
licenses or regulates or against any person or entity denying the
Board or its representatives access to a job site for purposes of
enforcing any of the provisions of The Plumbing License Law of 1955,
the Oklahoma Inspectors Act, the Electrical License Act, the
Mechanical Licensing Act, the Home Inspection Licensing Act, or the
Roofing Contractor Registration Act; provided, however, the Board is
not authorized to inspect or issue administrative violations or
fines for public utilities, public service corporations, intrastate
gas pipeline companies, gas gathering pipeline companies, gas
processing companies, rural electric associations, municipal
utilities or their subsidiaries, chemical plants, gas processing
plants or petroleum refineries where the entity uses their employees
or contractors to work on their own facilities or equipment;
provided further, that any fines established by the Board pursuant
to the authority granted in this subsection for any second or
subsequent violation of a law or rule shall be set at five times the
amount of the fine set by the Board for initial violations. The
Board shall amend its rules to be consistent with the fine amounts
set forth herein;

7. Direct such other expenditures as may be necessary in the
performance of its duties including, but not limited to,
expenditures for office space, equipment, furnishings and contracts

ENR. S. B. NO. 1877 Page 277
for legal services. All expenditures shall be made pursuant to the
Oklahoma Central Purchasing Act; and

8. Enforce provisions of the plumbing, electrical and
mechanical codes as adopted by the Oklahoma Uniform Building Code
Commission pursuant to the Oklahoma Uniform Building Code Commission
Act.

C. The Board shall account for all receipts and expenditures of
the monies of the Board, including annually preparing and publishing
a statement of receipts and expenditures of the Board for each
fiscal year. The Board’s annual statement of receipts and
expenditures shall be audited by the State Auditor and Inspector or
an independent accounting firm in accordance with the provisions of
subsection B of Section 212 of Title 74 of the Oklahoma Statutes,
and the audit report shall be certified to the Governor of this
state to be true and correct, under oath, by the chair and vice-
chair of the Board. A Such certified report shall be electronically
submitted to the Governor utilizing the centralized filing system
provided for in Section 378 of this act. In addition, a copy of
such certified report, if not already available online, shall be
delivered electronically submitted, utilizing the centralized filing
system provided for in Section 378 of this act, to the chairs of the
respective Senate and House of Representatives Committees having
authority over matters relating to business, labor, and construction
industry licensing or regulation not later than February 1 each
year.

D. The Board shall account for all fines, penalties and fees
assessed and collected pursuant to the Administrative Procedures Act
or any rule promulgated for regulation of any industry and trade
under the authority of the Construction Industries Board. All
fines, penalties, and fees assessed for any violation of law or rule
shall be automatically reviewed and brought before the entire Board
for consideration and vote not later than ninety (90) days from
which it was imposed. The Construction Industries Administrator
shall present to the Board a written recommendation and summary for
each case in which an assessment of a fine, penalty, or fee was
imposed after administrative proceedings. The Board shall consider
the recommendations for each case at the next meeting date and at
such meeting shall either vote to affirm the recommendations or vote
to deny the recommendations and remand the case for further

ENR. S. B. NO. 1877 Page 278
administrative hearing, with or without instructions. No
administrative case shall be delayed or continued by the Board after
being placed on an agenda for final Board review, except with the
consent of all parties. The licensee or persons affected by the
imposition of an administrative fine, penalty, or fee on final
review by the Board shall have all rights of appeal preserved
pursuant to the Administrative Procedures Act until final action by
the Board. Collection of unpaid, finalized administrative fines by
the Board, directly or through contracted services unless otherwise
provided in law, may be sought beginning ninety (90) days after
final disposition and order of the matter through the processes
established by this act and the Administrative Procedures Act.

E. The Construction Industries Board shall hear all appeals
timely made from an administrative ruling relating to an industry
and trade regulated by the Board; however, this appeal authority
shall not be in addition to the appeal process authorized by the
Administrative Procedures Act. Any ruling by the Board from an
administrative hearing may be further appealed to the district court
of Oklahoma County. The district court, upon conclusion of an
appeal from a Board ruling, shall be authorized to award reasonable
legal fees to the prevailing party.

SECTION 120. AMENDATORY 59 O.S. 2021, Section 1000.25,
as amended by Section 4, Chapter 225, O.S.L. 2025 (59 O.S. Supp.
2025, Section 1000.25), is amended to read as follows:

Section 1000.25. A. The Oklahoma Uniform Building Code
Commission shall establish a system of fees to be charged for the
issuance and renewal of any construction permits issued by any
agency, municipality, or other political subdivision of this state.

B. This provision is subject to the following limitations:

1. No schedule of fees may be established or amended by the
Commission except during such times as the Legislature is in
session; provided, the Commission may establish or amend a schedule
of fees at a time when the Legislature is not in session if the fees
or schedule of fees has been specifically authorized by the
Legislature pursuant to paragraphs 3 and 4 of this subsection. The
Commission must shall follow the procedures required by Article I of

ENR. S. B. NO. 1877 Page 279
the Administrative Procedures Act for adoption of rules in
establishing or amending any such schedule of fees;

2. The Commission shall charge fees for construction permits
and renewal of such permits issued by any state agency,
municipality, or other political subdivision of this state which
authorized work governed by codes within the purview of the
Commission only within the following ranges:

a. for issuance of permit not to exceed $5.00, and

b. for renewal of permit not to exceed $5.00;

3. Fees shall be remitted to the Oklahoma Uniform Building Code
Commission within thirty (30) days after the end of the preceding
calendar month. The Oklahoma Uniform Building Code Commission shall
report electronically, utilizing the centralized filing system
provided for in Section 378 of this act, to the Governor, President
Pro Tempore of the Senate, and the Speaker of the House semiannually
its collections for the six (6) months preceding the report;

4. Fees shall be collected by any state agency, municipality,
or other political subdivision issuing construction permits within
this state. The fees shall be deposited in an account created by
the collecting entity for that purpose;

5. The state agency, municipality, or other political
subdivision shall remit the monies in the account on a monthly basis
directly to the State Treasury for deposit in the Oklahoma Uniform
Building Code Commission Revolving Fund created pursuant to Section
1000.28 of this title. Along with the deposits required by this
paragraph, each state agency, municipality, or other political
subdivision shall also submit a report stating the total amount of
funds collected and the total number of fees imposed during the
preceding month. The report shall be made on computerized or manual
disposition reports as provided by rule of the Commission;

6. Any state agency, municipality, or other political
subdivision collecting and remitting fees pursuant to this section
may levy a fee up to fifty cents ($0.50) for every construction
permit or renewal permit issued. These monies shall be deposited
into an account for the sole use of the state agency, municipality,

ENR. S. B. NO. 1877 Page 280
or other political subdivision. The state agency, municipality, or
other political subdivision shall state the total amount of funds
collected and the total number of fees imposed to the State Treasury
in the report required by paragraph 5 of this subsection;

7. It shall be the responsibility of the state agency,
municipality, or other political subdivision to account for and
ensure the correctness and accuracy of payments made to the State
Treasury pursuant to this title;

8. Funds collected by a state agency, municipality, or other
political subdivision and remitted to the State Treasury pursuant to
the Oklahoma Uniform Building Code Commission Act shall be deposited
in the Oklahoma Uniform Building Code Commission Revolving Fund and
shall be used solely for the purposes of the Oklahoma Uniform
Building Code Commission Act; and

9. Nothing in the Oklahoma Uniform Building Code Commission Act
shall prevent the Oklahoma Uniform Building Code Commission from
offering incentives for prompt payment.

SECTION 121. AMENDATORY 59 O.S. 2021, Section 3024, is
amended to read as follows:

Section 3024. A. The Commissioner of Labor shall have the
following powers and duties:

1. The Commissioner shall:

a. adopt or determine standards of elevator safety,

b. license elevator contractors, elevator mechanics, and
elevator inspectors,

c. register elevator apprentices,

d. determine qualifications for examination, establish
application processes, and examine applicants for
licensure,

e. establish terms of licensure and renewal procedures,

ENR. S. B. NO. 1877 Page 281
f. attempt to achieve reciprocity agreements whereby
licenses issued by other jurisdictions may be accepted
in this state in lieu of examination,

g. establish grounds for revocation, suspension, and
nonrenewal of licenses and policies for reinstatement
of licenses and for imposition of lesser disciplinary
measures,

h. establish continuing education requirements,

i. provide for the inspection and certification of
elevators,

j. provide for the enforcement of the Elevator Safety
Act,

k. hear appeals pursuant to the Administrative Procedures
Act,

l. establish a procedure for the reporting and
investigation of accidents, and

m. establish a procedure to allow variances from the
literal requirement of the code;

2. The Commissioner shall publish informational brochures about
license examinations that indicate the scope of the examinations,
include suggestions about how to prepare for the examinations, and
may include sample questions of the type to be expected, but shall
never include test items that will be used in future examinations.
In no case shall information about forthcoming examinations, that is
not generally available, be given to any school, coaching service,
or individual privately; and

3. The Commissioner shall have subpoena powers and shall have
the right to seek injunctive relief to prevent the operation of
elevators lacking a certificate of operation after November 1, 2006,
or failing inspection. For any violation of the Elevator Safety
Act, the Commissioner may assess an administrative fine, which fine
may be assessed in addition to any other penalties provided pursuant
to the Elevator Safety Act. The Commissioner of Labor may

ENR. S. B. NO. 1877 Page 282
promulgate rules establishing a schedule of administrative fines for
violations of the Elevator Safety Act. Upon collection of an
assessed fine, the funds shall be deposited in the Department of
Labor Administrative Penalty Revolving Fund created in Section 11 of
this act.

B. The Commissioner of Labor may promulgate rules establishing
a schedule of administrative fees for the implementation of the
Elevator Safety Act. The following fees shall remain in effect
until such rules become effective, at which time the fees contained
in this subsection shall be superseded by rule. Fees shall be as
follows:

1. Elevator contractor examination $100.00

2. Elevator inspector examination $100.00

3. Elevator mechanic examination $100.00

4. Initial and renewal elevator
contractor license $100.00

5. Initial and renewal elevator
inspector License $ 75.00

6. Initial and renewal elevator
mechanic License $ 50.00

7. Annual elevator apprentice
registration $ 25.00

8. Late renewal - in addition to
license fee $ 10.00

9. Replacement of lost or mutilated
license $ 10.00

10. Reinstatement - in addition to
license fee $100.00

11. Existing elevator - certification
of operation $ 25.00

ENR. S. B. NO. 1877 Page 283

12. New elevator - inspection and
certification $150.00

13. Elevator temporary certification $ 25.00

14. Elevator temporary mechanic
license for 30 days $ 10.00

15. Labor for chief elevator inspector
or deputy elevator inspector to
perform inspection for issuance of
certificate of operation:

a. any escalator or moving walkway $125.00

b. elevator, two-four floors $ 75.00

c. elevator, five-ten floors $100.00

d. elevator, eleven floors and over $125.00

e. wheelchair lift $ 25.00

C. All revenues received shall be deposited to the Department
of Labor Revolving Fund. It is the intent of the Legislature that
fees charged pursuant to the Elevator Safety Act be adjusted to
provide sufficient income, but not substantially more than
sufficient income, to ensure elevator safety as provided by the
Elevator Safety Act. Accordingly, the Commissioner of Labor shall
make an annual study of the revenues to and expenditures from the
Department of Labor Revolving Fund related to elevator safety and
shall prepare a report indicating what fee adjustments, if any,
shall be recommended. The report shall be electronically submitted
by September 1 each year, utilizing the centralized filing system
provided for in Section 378 of this act, to the Director of the
Office of Management and Enterprise Services, the Chair of the
Appropriations Committee of the Senate, and the Chair of the
Appropriations and Budget Committee of the House of Representatives,
and shall be filed with the Department of Labor.

ENR. S. B. NO. 1877 Page 284
D. Licenses and certifications issued in accordance with the
provisions of the Elevator Safety Act shall be renewed according to
the following schedule:

1. Elevator contractor, elevator inspector, elevator mechanic
licenses, and elevator apprentice registration shall be renewed
annually prior to the last day of the calendar month in which the
license or registration was initially issued;

2. Any such license, registration or certificate required by
the Elevator Safety Act not renewed by the last day of the calendar
month in which renewal is required shall be subject to a late fee as
provided by this act;

3. Any elevator contractor, elevator inspector, elevator
mechanic license, or apprentice registration having been expired for
a period of not less than thirty (30) days nor more than three
hundred sixty-five (365) days shall be subject to a reinstatement
fee as provided for in the Elevator Safety Act; and

4. Any elevator contractor, elevator inspector, elevator
mechanic license, or apprentice registration being expired for a
period of one (1) year or longer from the last day of the month in
which renewal was required shall be considered void and the licensee
shall be subject to all requirements for new issuance.

SECTION 122. AMENDATORY 59 O.S. 2021, Section 4000.1, as
last amended by Section 9, Chapter 227, O.S.L. 2024 (59 O.S. Supp.
2025, Section 4000.1), is amended to read as follows:

Section 4000.1. A. As used in this section:

1. “Substantially relate” means the nature of the criminal
conduct for which the person was convicted has a direct bearing on
the fitness or ability to perform one or more of the duties or
responsibilities necessarily related to the occupation; and

2. “Pose a reasonable threat” means the nature of the criminal
conduct for which the person was convicted involved an act or threat
of harm against another and has a bearing on the fitness or ability
to serve the public or work with others in the occupation.

ENR. S. B. NO. 1877 Page 285
B. Notwithstanding any other provision of law, a conviction,
plea of guilty or nolo contendere, or pending criminal charge of a
crime may be grounds for the denial of an applicant for a state
license or state certification to practice an occupation only if the
underlying offense substantially relates to the duties and
responsibilities of the occupation and poses a reasonable threat to
public safety, health, or welfare. When making a determination
pursuant to this subsection, a licensing or certification authority
shall consider:

1. The nature and seriousness of the offense;

2. The amount of time that has passed since the offense;

3. The age of the person at the time the offense was committed;

4. Evidence relevant to the circumstances of the offense
including any aggravating or mitigating circumstances of social
conditions surrounding the commission of the offense;

5. The nature of the specific duties and responsibilities for
which the license or certification is required; and

6. Any evidence of rehabilitation submitted by the applicant
including, but not limited to, evidence related to the person’s
compliance with any conditions of community supervision, parole, or
mandatory supervision, the conduct and work activity of the person,
programming, or treatment undertaken by the person, and testimonials
or personal reference statements.

C. Notwithstanding any other provision of law, a licensing or
certification authority shall not deny a state license or state
certification to practice an occupation due to:

1. An arrest that was not followed by a valid plea of guilty or
nolo contendere unless charges are currently pending;

2. A conviction that has been sealed, or expunged;

3. A conviction or plea of guilty or nolo contendere for which
more than five (5) years have elapsed since the date of conviction,
plea, or release from incarceration, whichever is later, so long as

ENR. S. B. NO. 1877 Page 286
the person has not been convicted of a new crime. This paragraph
shall not apply to any conviction or plea of guilty or nolo
contendere for:

a. an offense enumerated in Section 571 of Title 57 of
the Oklahoma Statutes,

b. a felony involving domestic assault, domestic assault
and battery, or domestic abuse as defined in Section
644 of Title 21 of the Oklahoma Statutes,

c. an offense that would require registration as a sex
offender pursuant to the Sex Offenders Registration
Act, or

d. any equivalent law enumerated in this paragraph from
another jurisdiction; or

4. A finding that an applicant lacks good character or fails to
meet any other similarly vague standard where a criminal conviction
is the basis for the finding.

D. Before a state licensing or state certification authority
makes a final determination that a criminal conviction, plea of
guilty or nolo contendere, or pending criminal charge may disqualify
an applicant for licensure, that authority shall provide written
notice of:

1. The specific offense that is the basis for the intended
denial;

2. The reasons the offense was determined to substantially
relate to the duties and responsibilities of the occupation and
posed a reasonable threat to public safety, health, or welfare,
including findings for each of the factors in subsection B of this
section that the licensing or certification authority deemed
relevant to the determination; and

3. The right to submit additional evidence relevant to each of
the factors listed in subsection B of this section within thirty
(30) days, which the licensing or certification authority shall
consider before issuing a final determination.

ENR. S. B. NO. 1877 Page 287

E. A final determination that a criminal conviction, plea of
guilty or nolo contendere, or pending criminal charge may prevent a
person from receiving a license shall be in writing and include
notice of the right to appeal the determination pursuant to the
Administrative Procedures Act, or a more specific statutory
authority, and notice of the earliest date the applicant may reapply
for a license.

F. A person with a criminal history record may request a
determination of whether his or her criminal history record may
disqualify him or her from obtaining the desired license or
certification in the occupation from a state licensing or state
certification authority at any time, including before obtaining any
required education or training for such occupation. The request
shall be in writing and shall include either a copy of the person’s
criminal history record with explanation of each conviction
mentioned in the criminal history record or a statement describing
each criminal conviction including the date of each conviction, the
court of jurisdiction and the sentence imposed. The person may
include a statement with his or her request describing additional
information for consideration by the licensing or certification
authority including, but not limited to, information relevant to any
of the factors for consideration described in subsection B of this
section.

G. Upon receipt of a written request for consideration of a
criminal history record for an occupation as provided in subsection
F of this section, the licensing or certification authority shall
evaluate the request and make a determination based upon the
information provided in such request whether the stated conviction
is a disqualifying offense for the occupation. A notice of the
determination shall be issued to the petitioner within sixty (60)
days from the date such request was received by the licensing or
certification authority; except, however, a licensing or
certification authority regulating fifty thousand or more members in
its occupation shall be allowed ninety (90) days to make its initial
determination and issue notice to the requestor.

H. A determination made pursuant to subsection F of this
subsection that a person may not be disqualified for licensure or
certification due to criminal history shall be binding upon a

ENR. S. B. NO. 1877 Page 288
licensing or certification authority unless, at the time a full
application for a license is submitted, the applicant has
subsequently pled guilty or nolo contendere to a crime, has pending
criminal charges, or has previously undisclosed criminal
convictions.

I. The notice of a determination made pursuant to subsection F
of this section shall be in writing and mailed to the requestor at
the address provided in his or her request, and shall contain the
following statements:

1. Whether the person is eligible for licensure or
certification in the occupation at the current time based upon the
information submitted by the requestor;

2. Whether there is a disqualifying offense that would
disqualify the person from engaging in the occupation at the current
time and a statement identifying such offense in the criminal
history record or information submitted for consideration;

3. Any actions the person may take to remedy a
disqualification, if any;

4. The earliest date the person may submit another request for
consideration, if any; and

5. A statement that the determination may be rescinded if, at
the time a full application for a license is submitted, the
applicant has subsequently pled guilty or nolo contendere to a
crime, has pending criminal charges, or has previously undisclosed
criminal convictions.

J. A state entity charged with oversight of an occupational
license or certification may promulgate forms for requests for
determinations for the occupation as authorized in subsection F of
this section. Each state licensing or certification authority may
charge a fee not to exceed Ninety-five Dollars ($95.00) for each
initial determination of eligibility it makes for the occupation
based upon the information provided by the requestor.

ENR. S. B. NO. 1877 Page 289
K. Each state licensing or state certification authority shall
include in its application for a license or certification and
publish on its public website the following information:

1. Whether the criminal offenses of applicants may be used as a
basis for denial;

2. If criminal history may be used as a basis for denial as
listed in subsection B of this section, which offenses the licensing
or certification authority shall consider; and

3. Notice of the right to request a determination pursuant to
subsection F of this section.

L. Each state licensing or state certification authority
authorized to consider the criminal conviction of an applicant shall
annually, utilizing the centralized filing system provided for in
Section 378 of this act, electronically provide to the Legislature,
and publish on its public website, the following:

1. The number of license applications received;

2. The number of applications that resulted in a license being
granted;

3. The number of applications that resulted in a license being
denied;

4. The number of applications that were denied due to criminal
history;

5. A list of criminal offenses reported by individuals who were
granted a license;

6. A list of criminal offenses reported by individuals who were
denied a license due to criminal history along with the time elapsed
since the commission of the offense; and

7. The number of petitions received by the licensing or
certification authority pursuant to subsection F of this section.

ENR. S. B. NO. 1877 Page 290
M. The provisions of this section shall not be construed to
apply to the Council on Law Enforcement Education and Training, the
Bail Bonds Division of the Insurance Department, the State Board of
Education, the boards of examiners which are established in Title 20
of the Oklahoma Statutes, the State Board of Medical Licensure and
Supervision, or individuals applying to these authorities for
licensure or certification.

SECTION 123. AMENDATORY 60 O.S. 2021, Section 177.2, is
amended to read as follows:

Section 177.2. A. No public trust, school district, or county
shall issue any bonds, notes, certificates of participation,
certificates of indebtedness, or any other evidence of indebtedness,
excluding nonpayable warrants and agreements with a depository bank
to honor payment of checks when there are insufficient funds, for
the purpose of short-term cash management by any school district or
county unless such school district or county shall have been
approved for participation by the Oklahoma Commission on School and
County Funds Management.

As used in this section, “short-term cash management” means any
borrowing or any method employed by a school district or county to
obtain funds in advance of the receipt of tax revenue, and shall
include, but not be limited to, the issuance of certificates of
indebtedness, certificates of participation, tax-anticipation notes,
bonds, notes, or any other evidence of indebtedness. It shall not
include debt issued pursuant to a vote of the electors of the school
district or county pursuant to the Constitution.

B. The Oklahoma Commission on School and County Funds
Management, shall consist of the State Superintendent of Public
Instruction, the Director of the Oklahoma Department of Career and
Technology Education, and the State Bond Advisor. The Commission
shall:

1. Receive requests of school districts and counties for
authorization to participate in a short-term cash management program
where the proceeds will be used to facilitate cash-flow management.
The requests must shall be received by the Commission on or before
April 1 in order for the school district or county to be considered

ENR. S. B. NO. 1877 Page 291
for participation during the next fiscal year, unless such date is
extended by the Commission;

2. Within five (5) business days of receiving a request,
forward the request to the appropriate certifying authority. If the
request and accompanying material meet the requirements of this act,
the certifying authority must shall return the request and
accompanying information to the Commission with a written review and
comment within sixty (60) days of receipt of the request from the
Commission. The certifying authority for school districts shall be
the State Superintendent of Public Instruction and for technology
center school districts, shall be the Director of the Oklahoma
Department of Career and Technology Education and for counties,
shall be the State Board of Equalization;

3. Approve or reject each request for participation, and
forward notice of the decision of the Commission to the requesting
school district or county and to the Office of the Governor. The
Commission shall approve or reject a request within thirty (30) days
following the date it receives the request and accompanying
information with a written review and comment from a certifying
authority;

4. Certify the need for funds generated by the proposed short-
term cash management based on the financial projections of the
school district or county, including the projected cash-flow
shortfall, estimated income, and anticipated surplus balances on
June 30 of the current fiscal year in the general and building funds
of the school district or county. Accumulative cash-flow shortfall
projections must shall be determined using the method specified by
Section 148 of the Internal Revenue Code;

5. Establish reasonable limits for fees, commissions and other
compensation paid to any person or firm involved with the proposed
short-term cash management program;

6. Establish participation limitations for a school district or
a county using the method specified in Section 148 of the Internal
Revenue Code. No school district or county shall participate in a
short-term cash management program in an amount which exceeds the
determination of need pursuant to the accumulative cash-flow
projections as specified in paragraph 4 of this subsection or forty

ENR. S. B. NO. 1877 Page 292
percent (40%) of the approved annual budget of the school district
or county, whichever is less;

7. Establish limitations which prohibit school districts and
counties which are participating in a short-term cash management
program from issuing nonpayable warrants if proceeds are available
from the short-term cash management program;

8. Submit Electronically submit, utilizing the centralized
filing system provided for in Section 378 of this act, an annual
report, by December 15 of each year, to the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, the
Governor, the State Auditor and Inspector, and the Attorney General,
detailing the participation of each school district and county for
the prior fiscal year in the short-term cash management programs
authorized by this act; and

9. Prescribe methods and procedures by which school districts
or counties may request authorization to participate in short-term
cash management programs.

C. School districts and counties desiring to participate in a
short-term cash management program as provided in subsection A of
this section shall file a request with the Commission on such forms
as the Commission shall prescribe. Such request shall be
accompanied by:

1. A resolution adopted by the board of education of the school
district or by the county commissioners of a county. Such
resolution shall state that the school district or county intends to
and has need to participate in a short-term cash management program
and that the board of education or county commission has authorized
the submission of such request;

2. A letter signed by the underwriter of the short-term cash
management program that specifies the name and address of all
persons and firms receiving compensation, directly or indirectly,
involved with the proposed short-term cash management program. All
persons and firms designated shall not be paid out of school or
county funds. For purposes of this paragraph, school or county
funds shall not include the proceeds from certificates of

ENR. S. B. NO. 1877 Page 293
indebtedness or certificates of participation generated from a
short-term cash management program;

3. A verification from the Administrator of the Oklahoma
Department of Securities that all persons receiving compensation,
directly or indirectly, for providing advice to the school districts
or counties concerning participation in the program or for endorsing
participation in the program are appropriately registered with the
Oklahoma Department of Securities as investment advisers or
investment adviser representatives, as applicable, and that all
persons receiving compensation, directly or indirectly, for the
placement of the certificates of participation or like securities
with investors are registered as broker-dealers or agents, as
applicable;

4. The estimated income and expenditures of the school district
or county for the year for which the school district or county
wishes to participate in a short-term cash management program. The
appropriate certifying authority shall develop and provide an income
and expenditure disclosure form for use by a school district or
county which desires to participate in a short-term cash management
program which follows the applicable portions of the information
return required by Section 148 of the Internal Revenue Code. The
information supplied in the disclosure form must shall reflect the
ability of the school district or county to pay off an amount equal
to the district’s or county’s liability on the program from the
income from the fiscal year of participation, prior to approval for
participation by the Commission. If the Commission determines that
a question exists concerning any information submitted pursuant to
this subsection, the Commission may request any additional
information from the school district or county that it deems
necessary;

5. A copy of the most recent information return for a short-
term cash management program filed with the Internal Revenue Service
pursuant to Section 149(e) of the Internal Revenue Code;

6. An affidavit by all persons, firms, corporations, or
business enterprises of any kind which provide services for
compensation on any financing to implement a short-term cash
management program, which shall be signed under oath on a form
approved by the Commission and which shall state that such persons,

ENR. S. B. NO. 1877 Page 294
firms, corporations, or business enterprises have not given any
money or other thing of value, other than a bona fide campaign
contribution, to any public official or to any public employee of a
school district or county participating in such a cash management
program. Any such person, firm, corporation, or business enterprise
shall also file a disclosure statement on a form approved by the
Commission, which shall disclose all campaign contributions of any
kind made to any public official of a school district or county
participating in such a short-term cash management program and shall
also disclose the identity of any officer, director, agent, or
employee of such person, firm, corporation, or business enterprise
who is an officer or employee of a school or county participating in
a short-term cash management program, or who is related to such
officers or employees within the third degree of affinity or
consanguinity;

7. A notarized sworn affidavit executed by each member of a
board of education of a school district, the superintendent of
schools, and the treasurer of the school district or by each county
commissioner of a county and the county treasurer, which states that
the person or any member of the immediate family of the person has
no direct or indirect financial interest in the short-term cash
management program being requested. The affidavit shall be on a
form prescribed by the Commission;

8. A summary report detailing all expenses incurred by a school
district or county in participating in a short-term cash management
program. The report shall be on a form prescribed by the
Commission; and

9. Any application and other materials including any other
necessary financial information, as may be required by the
Commission.

D. If the information required to be submitted pursuant to this
section meets all requirements established by the Commission and the
Commission has approved such information and participation, and the
participation is otherwise in accordance with law, the Oklahoma
Commission on School and County Funds Management shall authorize the
participation of the school district or county in the short-term
cash management program. The Commission shall notify the school

ENR. S. B. NO. 1877 Page 295
district or county in writing, whether the requirements of this
section have been satisfied and approved.

E. School districts and counties participating in a short-term
cash management program authorized by this section shall report to
the Commission the probable income and expenses of anticipated
investment income. The report shall not include probable income or
expenses related to participation in a short-term cash management
program.

F. The ability of a school district or county to issue general
obligation bonds shall not be modified by this act.

G. The Office of the Attorney General shall provide legal
assistance to the Oklahoma Commission on School and County Funds
Management.

SECTION 124. AMENDATORY 60 O.S. 2021, Section 178, is
amended to read as follows:

Section 178. A. The instrument or will creating such trust may
provide for the appointment, succession, powers, duties, term,
manner of removal, and compensation of the trustee or trustees
subject to the provisions of subsections C and E of this section,
and in all such respects the terms of said instrument or will shall
be controlling. Trustees, who are public officers, shall serve
without compensation, but may be reimbursed for actual expenses
incurred in the performance of their duties as trustees. If the
said instrument or will makes no provisions in regard to any of the
foregoing, then the general laws of the state shall control as to
such omission or omissions. Every person hereafter becoming a
trustee of a public trust first shall take the oath of office
required of an elected public officer and every officer and employee
who handles funds of a public trust shall furnish a good and
sufficient fidelity bond in an amount and with surety as may be
specified and approved by the persons constituting a majority of
each of the governing bodies of the beneficiaries of the trust, such
bond to be in a surety company authorized to transact surety
business in the State of Oklahoma but in no event shall any bond be
required of a trustee. The cost of said bond shall be paid from
funds of the trust authority. The oaths of office shall be
administered by any person authorized to administer oaths in the

ENR. S. B. NO. 1877 Page 296
State of Oklahoma, and shall be filed with the Secretary of State in
trusts wherein the State of Oklahoma is the beneficiary; in the
office of the county clerk in a trust wherein any county is
beneficiary; and in the office of the clerk of the municipality in a
trust wherein any municipality is the beneficiary.

B. Unless otherwise specified in another state law authorizing
the creation of a state-beneficiary public trust, any public trust
that hereafter names the State of Oklahoma as the beneficiary shall
have five (5) trustees appointed by the Governor of the State of
Oklahoma with the advice and consent of the Senate. The terms of
the trustees shall be as follows: of the trustees first appointed,
one member shall be appointed for a term of one (1) year; one member
shall be appointed for a term of two (2) years; one member shall be
appointed for a term of three (3) years; one member shall be
appointed for a term of four (4) years; and one member shall be
appointed for a term of five (5) years. At the expiration of the
term of each member and of each succeeding member, the Governor
shall appoint a successor who shall serve for a term of five (5)
years. Whenever a vacancy on such trust shall occur by death,
resignation or otherwise, the Governor shall fill the same by
appointment and the appointee shall hold office during the unexpired
term. Each member shall hold office until his successor has been
appointed and qualified.

C. Any instrument or will creating a trust which is not within
the scope of subsection B of this section shall provide for the
appointment of a minimum of three trustees, their succession,
powers, duties, term, manner of removal and compensation subject to
the provisions of subsection E of this section, and in all such
respects the terms of said instrument or will shall be controlling.
If the instrument or will makes no provision in regard to any of the
foregoing, then the general laws of the state shall control as to
the omissions.

D. Meetings of trustees of all public trusts shall be open to
the public to the same extent as is required by law for other public
boards and commissions. Such meetings shall also be open to the
press and any such equipment deemed necessary by the press to record
or report the activities of the meetings. In such trusts wherein
the State of Oklahoma is the beneficiary, a written notice of
trustees’ meetings shall be filed with the office of the Secretary

ENR. S. B. NO. 1877 Page 297
of State at least three (3) days prior to the meeting date. Records
of the trust and minutes of the trust meetings of any public trust
shall be written and kept in a place, the location of which shall be
recorded in the office of the county clerk of each county, wherein
the trust instrument shall be recorded. Such records and minutes
shall be available for inspection by any person during regular
business hours. Every trust created under Sections 176 et seq. of
this title shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically file a monthly report
of all expenditures of bond proceeds with the governing body of each
beneficiary and with the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate in the
case of a public trust having the State of Oklahoma as beneficiary.

E. Trustees of any public trust may be removed from office for
cause, including incompetency, neglect of duty, or malfeasance in
office, by a district court having jurisdiction. In the case of
persons appointed by the Governor, such persons shall be appointed
for terms not in excess of five (5) years, and shall be subject to
removal for cause. In the event of removal of a trustee under this
subsection, a successor trustee shall be appointed as provided in
the trust instrument. Provided, however, in the event a trustee is
so removed who is also a member of the governing board of a
municipal beneficiary, the successor trustee shall be appointed by
the judge of the court wherein the removal occurred; said successor
trustee shall serve only until the removed trustee ceases to serve
as a member of the governing board of the municipal beneficiary and
his successor on said board has qualified.

F. The provisions of this section shall be inapplicable to any
public trust created and existing prior to July 1, 1988, if the
instrument or will creating such public trust shall have been held
to be a valid and binding agreement in an opinion of the Supreme
Court of the State of Oklahoma; and nothing in this section shall
impair or be deemed to impair the trust indenture or existing or
future obligations of such public trust.

SECTION 125. AMENDATORY Section 1, Chapter 220, O.S.L.
2024 (60 O.S. Supp. 2025, Section 1403), is amended to read as
follows:

ENR. S. B. NO. 1877 Page 298
Section 1403. A. There is hereby created the Task Force on
Trust Administration Review and Reform. The Task Force shall be
composed of the following seven (7) members:

1. The Governor shall appoint three members, one of whom shall
be a member of the Oklahoma State Chamber, and one of whom shall be
a member of the Oklahoma Bankers Association;

2. The President Pro Tempore of the Oklahoma State Senate shall
appoint two members; and

3. The Speaker of the Oklahoma House of Representatives shall
appoint two members.

B. The Task Force shall review and make recommendations for
changing Oklahoma’s trust administration statutes in order to
provide an efficient framework for the administration of trusts.

C. The Task Force shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
provide a report to the Governor, the President Pro Tempore of the
Oklahoma State Senate, and the Speaker of the Oklahoma House of
Representatives with its recommendations for legislation by November
1 of each year in which changes are recommended.

D. A majority of the members shall constitute a quorum for the
purpose of conducting the business of the Task Force. The Task
Force shall meet quarterly and at such other times as may be called
by the chair.

E. Members of the Task Force shall serve without compensation
but shall be reimbursed for expenses incurred in the performance of
their duties in accordance with the provisions of the State Travel
Reimbursement Act.

F. Administrative support for the Task Force including, but not
limited to, personnel necessary to ensure the proper performance of
the duties and responsibilities of the Task Force shall be provided
by the Oklahoma Legislative Office of Fiscal Transparency.

ENR. S. B. NO. 1877 Page 299
SECTION 126. AMENDATORY 61 O.S. 2021, Section 65, as
amended by Section 11, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2025,
Section 65), is amended to read as follows:

Section 65. A. In addition to the conditions prescribed
pursuant to subsection C of this section, the provisions of Section
62 of this title shall not apply whenever the Office of Management
and Enterprise Services with concurrence of the chief administrative
officer of the public agency affected declares that an emergency
exists. The construction manager or consultant shall be selected by
the Director of the Office of Management and Enterprise Services.
The resulting construction manager or consultant contract shall not
exceed Fifty Thousand Dollars ($50,000.00). The reasons for the
emergency shall be recorded in the official records of the Office.

B. Emergency as used in this section shall be limited to
conditions resulting from any of the following:

1. A sudden unexpected happening or unforeseen occurrence if it
is impossible for the provisions of Section 62 of this title to be
observed because of the time factor and if the public health or
safety is endangered; and

2. A condition or situation which, if allowed to continue,
would lead to economic loss to the state or to further damage of
state property.

C. The provisions of Section 62 of this title shall not apply
to the process for construction of a correctional facility whenever
the State Board of Corrections informs the Office that an emergency
condition threatens the security of the state correctional system,
including inmate population growth, and the condition requires
expeditious treatment for the review, approval, and bid process as
it relates to construction or expansion of correctional facilities.
The Office and the Department of Corrections are authorized to
implement an expedited competitive bid process for the contracting
of construction managers or consultants and construction of new or
expanded correctional facilities that adequately respond to the
emergency. The State Board of Corrections shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically provide written notification to the Governor, the

ENR. S. B. NO. 1877 Page 300
Speaker of the House of Representatives, and to the President Pro
Tempore of the Senate of the emergency conditions.

SECTION 127. AMENDATORY 61 O.S. 2021, Section 130, as
amended by Section 27, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2025,
Section 130), is amended to read as follows:

Section 130. A. The provisions of the Public Competitive
Bidding Act of 1974 with reference to notice and bids shall not
apply to an emergency if:

1. The governing body of a public agency declares by a two-
thirds (2/3) majority vote of all of the members of the governing
body that an emergency exists;

2. The Transportation Commission and the Oklahoma Tourism and
Recreation Commission, by majority vote of all the members of each
Commission, declare that an emergency exists; or

3. The chief administrative officer of a public agency without
a governing body declares that an emergency exists.

B. The governing body of a public agency may, upon approval of
two-thirds (2/3) majority of all of the members of the governing
body, delegate to the chief administrative officer of a public
agency the authority to declare an emergency whereby the provisions
of the Public Competitive Bidding Act of 1974 with reference to
notice and bids shall not apply to contracts less than One Hundred
Fifty Thousand Dollars ($150,000.00) in amount; provided, such
authority of the Department of Transportation and the Oklahoma
Turnpike Authority shall not extend to any contract exceeding Seven
Hundred Fifty Thousand Dollars ($750,000.00) in amount and such
authority of the Department of Corrections shall not extend to any
contract exceeding Two Hundred Fifty Thousand Dollars ($250,000.00)
in amount for situations in which the emergency impacts the
conditions of confinement, health and safety of correctional
officers and inmates in the custody of the Department of
Corrections.

C. Upon approval of a two-thirds (2/3) majority vote, the
Oklahoma Conservation Commission may delegate to the Executive
Director the authority to declare an emergency and set a monetary

ENR. S. B. NO. 1877 Page 301
limit for the declaration. The provisions of this subsection may
only be used for the purpose of responding to an emergency involving
the reclamation of abandoned coal mines or the repair of damaged
upstream floodwater retarding structures.

D. An emergency declared by the Board of Corrections pursuant
to subsection C of Section 65 of this title shall exempt the
Department of Corrections from the limits which would otherwise be
imposed pursuant to subsection B of this section for the contracting
and construction of new or expanded correctional facilities.

E. The chief administrative officer of a public agency with a
governing body shall notify the governing body within ten (10) days
of the declaration of an emergency if the governing body did not
approve the emergency. The notification shall contain a statement
of the reasons for the action, and shall be recorded in the official
minutes of the governing body.

F. Emergency as used in this section shall be limited to
conditions resulting from a sudden unexpected happening or
unforeseen occurrence or condition whereby the public health or
safety is endangered or further damage to state property is likely
if the situation is not addressed promptly.

G. The chief administrative officer of a public agency shall
report an emergency within ten (10) days of the emergency
declaration and include the official minutes of the governing body
of the public agency, if applicable, to the Office of Management and
Enterprise Services which shall compile an annual report detailing
all emergencies declared pursuant to this section during the
previous calendar year. The report shall be electronically
submitted to the Governor, the President Pro Tempore of the Senate,
and the Speaker of the House of Representatives, utilizing the
centralized filing system provided for in Section 378 of this act,
upon request.

H. The Risk Management Administrator of the Office of
Management and Enterprise Services may declare an emergency on
behalf of a public agency when an insurable loss has occurred which
would lead to further economic loss or additional property damage if
not addressed promptly. Such declaration shall not relieve the

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public agency of fiscal responsibility for its deductible, uninsured
losses, and other related expenses.

SECTION 128. AMENDATORY 61 O.S. 2021, Section 328, is
amended to read as follows:

Section 328. The Office of Management and Enterprise Services
may:

1. Research and identify available facilities management
software applications and existing facilities management software
systems in other state agencies;

2. Procure facilities management software in accordance with
the requirements of The Oklahoma Central Purchasing Act; and

3. Implement a comprehensive statewide facilities management
software program in order to effectively identify state-owned real
property and to efficiently and fiscally manage the long-range
deferred maintenance funding requirements of such real property.

State agencies that have existing facilities management software
systems shall cooperate with the Office in the integration of
existing and future maintenance data into the statewide system
database. It shall not be a requirement that the software directly
interface with any other computer system. After full operational
status of the management program is achieved, the Office of
Management and Enterprise Services shall make an annual facilities
condition assessment report to the Speaker of the Oklahoma House of
Representatives, the President Pro Tempore of the State Senate, and
the Governor by electronic submission utilizing the centralized
filing system provided for in Section 378 of this act. Provisions
of this section shall not apply to the physical assets, buildings,
and equipment of the Oklahoma State Regents for Higher Education.

SECTION 129. AMENDATORY 62 O.S. 2021, Section 34.2, as
amended by Section 1, Chapter 86, O.S.L. 2025 (62 O.S. Supp. 2025,
Section 34.2), is amended to read as follows:

Section 34.2. A. Agencies responsible for the collection of
monies deposited to the credit of the General Revenue Fund and each
of the Special Revenue Funds shall be subject to the provisions of

ENR. S. B. NO. 1877 Page 303
this act. Upon request of the Director of the Office of Management
and Enterprise Services, these agencies shall provide the Director
of the Office of Management and Enterprise Services an itemized
estimate of funds expected to accrue to the General Revenue Fund and
each of the Special Revenue Funds for the ensuing fiscal year in the
manner and form established by the Director, in accordance with the
duties assigned to the State Board of Equalization in Section 23 of
Article X of the Oklahoma Constitution. Each of these agencies
shall also provide to the Director, as requested, a written
explanation of the methodology and relevant assumptions used in
developing the current and future revenue estimates submitted, a
statement of:

1. The prior year’s actual revenue collections;

2. A projection of the current year’s revenue collections; and

3. Estimated revenue collections for the ensuing fiscal year.
No expenditure shall be made from any General Revenue Fund or
Special Revenue Fund until such fund has been assigned to an agency
by law or by the Director of the Office of Management and Enterprise
Services.

B. In addition to providing the information listed above, the
Oklahoma Tax Commission shall also provide to the Director of the
Office of Management and Enterprise Services a comprehensive
economic report no later than two (2) weeks prior to each of the
meetings of the State Board of Equalization pursuant to paragraphs 1
and 3 of Section 23 of Article X of the Constitution of the State of
Oklahoma. Each report shall include a summary of recent national
and state economic performance and a forecast of national and state
economic performance for the current fiscal year and the ensuing
fiscal year. These reports shall be considered a basis upon which
the itemized revenue estimates of the Commission are developed. The
report shall include an analysis of the relative accuracy of the
economic forecasts on which the previous and current fiscal years’
revenue estimates were based.

C. The Tax Commission shall also, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically provide all estimates, explanations, statements,
projections, reports, and other documents required by this section

ENR. S. B. NO. 1877 Page 304
to the President Pro Tempore of the Senate, members of the Senate
Appropriations and Finance Committees, the Speaker of the House of
Representatives, and members of the House Appropriations and Budget
Committee at the same time that such documents are provided to the
Director of the Office of Management and Enterprise Services.

SECTION 130. 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.

ENR. S. B. NO. 1877 Page 305

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 of this act.

E. The Director of the Office of Management and Enterprise
Services shall, utilizing the centralized filing system provided for
in Section 378 of this act, electronically 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. 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 131. AMENDATORY 62 O.S. 2021, Section 34.11.1,
as amended by Section 1, Chapter 193, O.S.L. 2024 (62 O.S. Supp.
2025, Section 34.11.1), is amended to read as follows:

Section 34.11.1. A. There is hereby created the position of
Chief Information Officer who shall be appointed by the Governor.
The Chief Information Officer, in addition to having authority over
the Information Services Division of the Office of Management and
Enterprise Services, shall also serve as Secretary of Information
Technology and Telecommunications or successor cabinet position and
shall have jurisdictional areas of responsibility related to
information technology and telecommunications systems of all state
agencies as provided for in state law. The salary of the Chief
Information Officer shall not be less than One Hundred Thirty

ENR. S. B. NO. 1877 Page 306
Thousand Dollars ($130,000.00) or more than One Hundred Sixty
Thousand Dollars ($160,000.00).

B. Any person appointed to the position of Chief Information
Officer shall meet the following eligibility requirements:

1. A baccalaureate degree in Computer Information Systems,
Information Systems or Technology Management, Business
Administration, Finance, or other similar degree;

2. A minimum of ten (10) years of professional experience with
responsibilities for management and support of information systems
and information technology, including seven (7) years of direct
management of a major information technology operation;

3. Familiarity with local and wide-area network design,
implementation, and operation;

4. Experience with data and voice convergence service
offerings;

5. Experience in developing technology budgets;

6. Experience in developing requests for proposal and
administering the bid process;

7. Experience managing professional staff, teams, and
consultants;

8. Knowledge of telecommunications operations;

9. Ability to develop and set strategic direction for
information technology and telecommunications and to manage daily
development and operations functions;

10. An effective communicator who is able to build consensus;

11. Ability to analyze and resolve complex issues, both logical
and interpersonal;

ENR. S. B. NO. 1877 Page 307
12. Effective verbal and written communications skills and
effective presentation skills, geared toward coordination and
education;

13. Ability to negotiate and defuse conflict; and

14. A self-motivator, independent, cooperative, flexible and
creative.

C. The salary and any other expenses for the Chief Information
Officer shall be budgeted as a separate line item through the Office
of Management and Enterprise Services. The operating expenses of
the Information Services Division shall be set by the Chief
Information Officer and shall be budgeted as a separate line item
through the Office of Management and Enterprise Services. The
Office of Management and Enterprise Services shall provide adequate
office space, equipment, and support necessary to enable the Chief
Information Officer to carry out the information technology and
telecommunications duties and responsibilities of the Chief
Information Officer and the Information Services Division.

D. 1. Within twelve (12) months of appointment, the first
Chief Information Officer shall complete an assessment, which shall
be modified annually pursuant to Section 35.5 of this title, of the
implementation of the transfer, coordination, and modernization of
all information technology and telecommunication systems of all
state agencies in the state as provided for in the Oklahoma
Information Services Act. The assessment shall include the
information technology and telecommunications systems of all
institutions within The Oklahoma State System of Higher Education,
the Oklahoma State Regents for Higher Education and the
telecommunications network known as OneNet as assembled and
submitted by the Oklahoma Higher Education Chief Information
Officer, as designated by the Oklahoma State Regents for Higher
Education.

2. Within twelve (12) months of appointment, the first Chief
Information Officer shall issue a report setting out a plan of
action which will include the following:

ENR. S. B. NO. 1877 Page 308
a. define the shared service model organization structure
and the reporting relationship of the recommended
organization,

b. the implementation of an information technology and
telecommunications shared services model that defines
the statewide infrastructure environment needed by
most state agencies that is not specific to individual
agencies and the shared applications that are utilized
across multiple agencies,

c. define the services that shall be in the shared
services model under the control of the Information
Services Division of the Office of Management and
Enterprise Services,

d. define the roadmap to implement the proposed shared
services model. The roadmap shall include
recommendations on the transfer, coordination, and
modernization of all information technology and
telecommunication systems of all the state agencies in
the state,

e. recommendations on the reallocation of information
technology and telecommunication resources and
personnel,

f. a cost benefit analysis to support the recommendations
on the reallocation of information technology and
telecommunication resources and personnel,

g. a calculation of the net savings realized through the
reallocation and consolidation of information
technology and telecommunication resources and
personnel after compensating for the cost of
contracting with a private consultant as authorized in
paragraph 4 of this subsection, implementing the plan
of action, and ongoing costs of the Information
Services Division of the Office of Management and
Enterprise Services, and

ENR. S. B. NO. 1877 Page 309
h. the information required in subsection B of Section
35.5 of this title.

3. The plan of action report shall be presented to the
Governor, Speaker of the Oklahoma House of Representatives, and the
President Pro Tempore of the Oklahoma State Senate.

4. The Chief Information Officer may contract with a private
consultant or consultants to assist in the assessment and
development of the plan of action report as required in this
subsection.

E. The Chief Information Officer shall be authorized to employ
personnel, fix the duties and compensation of the personnel, not
otherwise prescribed by law, and otherwise direct the work of the
personnel in performing the function and accomplishing the purposes
of the Information Services Division of the Office of Management and
Enterprise Services.

F. The Information Services Division of the Office of
Management and Enterprise Services shall be responsible for the
following duties:

1. Formulate and implement the information technology strategy
for all state agencies;

2. Define, design, and implement a shared services statewide
infrastructure and application environment for information
technology and telecommunications for all state agencies;

3. Direct the development and operation of a scalable
telecommunications infrastructure that supports data and voice
communications reliability, integrity, and security;

4. Supervise the applications development process for those
applications that are utilized across multiple agencies;

5. Provide direction for the professional development of
information technology staff of state agencies and oversee the
professional development of the staff of the Information Services
Division of the Office of Management and Enterprise Services;

ENR. S. B. NO. 1877 Page 310
6. Evaluate all technology and telecommunication investment
choices for all state agencies;

7. Create a plan to ensure alignment of current systems, tools,
and processes with the strategic information technology plan for all
state agencies;

8. Set direction and provide oversight for the support and
continuous upgrading of the current information technology and
telecommunication infrastructure in the state in support of enhanced
reliability, user service levels, and security;

9. Direct the development, implementation, and management of
appropriate standards, policies and procedures to ensure the success
of state information technology and telecommunication initiatives;

10. Recruit, hire and transfer the required technical staff in
the Information Services Division of the Office of Management and
Enterprise Services to support the services provided by the Division
and the execution of the strategic information technology plan;

11. Establish, maintain, and enforce information technology and
telecommunication standards;

12. Delegate, coordinate, and review all work to ensure quality
and efficient operation of the Information Services Division of the
Office of Management and Enterprise Services;

13. Create and implement a communication plan that disseminates
pertinent information to state agencies on standards, policies,
procedures, service levels, project status, and other important
information to customers of the Information Services Division of the
Office of Management and Enterprise Services and provide for agency
feedback and performance evaluation by customers of the Division;

14. Develop and implement training programs for state agencies
using the shared services of the Information Services Division of
the Office of Management and Enterprise Services and recommend
training programs to state agencies on information technology and
telecommunication systems, products and procedures;

ENR. S. B. NO. 1877 Page 311
15. Provide counseling, performance evaluation, training,
motivation, discipline, and assign duties for employees of the
Information Services Division of the Office of Management and
Enterprise Services;

16. For all state agencies, approve the purchasing of all
information technology and telecommunication services and approve
the purchase of any information technology and telecommunication
product except the following:

a. a purchase less than or equal to Five Thousand Dollars
($5,000.00) if such product is purchased using a state
purchase card and the product is listed on either the
Approved Hardware or Approved Software list located on
the Office of Management and Enterprise Services
website, or

b. a purchase over Five Thousand Dollars ($5,000.00) and
less than or equal to Twenty-five Thousand Dollars
($25,000.00) if such product is purchased using a
state purchase card, the product is listed on an
information technology or telecommunications statewide
contract, and the product is listed on either the
Approved Hardware or Approved Software list located on
the Office of Management and Enterprise Services
website;

17. Develop and enforce an overall infrastructure architecture
strategy and associated roadmaps for desktop, network, server,
storage, and statewide management systems for state agencies;

18. Effectively manage the design, implementation and support
of complex, highly available infrastructure to ensure optimal
performance, on-time delivery of features, and new products, and
scalable growth;

19. Define and implement a governance model for requesting
services and monitoring service level metrics for all shared
services; and

ENR. S. B. NO. 1877 Page 312
20. Create the budget for the Information Services Division of
the Office of Management and Enterprise Services to be submitted to
the Legislature each year.

G. The State Governmental Technology Applications Review Board
shall provide ongoing oversight of the implementation of the plan of
action required in subsection D of this section. Any proposed
amendments to the plan of action shall be approved by the Board
prior to adoption.

H. 1. The Chief Information Officer shall act as the
Information Technology and Telecommunications Purchasing Director
for all state agencies and shall be responsible for the procurement
of all information technology and telecommunication software,
hardware, equipment, peripheral devices, maintenance, consulting
services, high technology systems, and other related information
technology, data processing, telecommunication, and related
peripherals and services for all state agencies. The Chief
Information Officer shall establish, implement, and enforce policies
and procedures for the procurement of information technology and
telecommunication software, hardware, equipment, peripheral devices,
maintenance, consulting services, high technology systems, and other
related information technology, data processing, telecommunication,
and related peripherals and services by purchase, lease-purchase,
lease with option to purchase, lease, and rental for all state
agencies. The procurement policies and procedures established by
the Chief Information Officer shall be consistent with The Oklahoma
Central Purchasing Act.

2. The Chief Information Officer, or any employee or agent of
the Chief Information Officer acting within the scope of delegated
authority, shall have the same power and authority regarding the
procurement of all information technology and telecommunication
products and services as outlined in paragraph 1 of this subsection
for all state agencies as the State Purchasing Director has for all
acquisitions used or consumed by state agencies as established in
The Oklahoma Central Purchasing Act. Such authority shall,
consistent with the authority granted to the State Purchasing
Director pursuant to Section 85.10 of Title 74 of the Oklahoma
Statutes, include the power to designate financial or proprietary
information submitted by a bidder confidential and reject all
requests to disclose the information so designated, if the Chief

ENR. S. B. NO. 1877 Page 313
Information Officer requires the bidder to submit the financial or
proprietary information with a bid, proposal, or quotation.

I. The Information Services Division of the Office of
Management and Enterprise Services and the Chief Information Officer
shall be subject to the Oklahoma Central Purchasing Act for the
approval and purchase of all equipment, products, and services and
shall also be subject to the requirements of the Public Competitive
Bidding Act of 1974, the Oklahoma Lighting Energy Conservation Act
and the Public Building Construction and Planning Act. The Chief
Information Officer shall be authorized to delegate all or some of
the procurement of information technology and telecommunication
products and services and construction of facilities and
telecommunication networks to another state entity if the Chief
Information Officer determines it to be cost-effective and in the
best interest of the state. The Chief Information Officer shall
have authority to designate information technology and
telecommunication contracts as statewide contracts and mandatory
statewide contracts pursuant to Section 85.5 of Title 74 of the
Oklahoma Statutes and to negotiate consolidation contracts,
enterprise agreements, and high technology systems contracts. Any
contract entered into by a state agency for which the Chief
Information Officer has not acted as the Information Technology and
Telecommunications Purchasing Director as required in this
subsection or subsection H of this section, shall be deemed to be
unenforceable and the Office of Management and Enterprise Services
shall not process any claim associated with the provisions thereof.

J. The Chief Information Officer shall establish, implement,
and enforce policies and procedure for the development and
procurement of an interoperable radio communications system for
state agencies. The Chief Information Officer shall work with local
governmental entities in developing the interoperable radio
communications system.

K. The Chief Information Officer shall develop and implement a
plan to utilize open source technology and products for the
information technology and telecommunication systems of all state
agencies.

L. All state agencies and authorities of this state and all
officers and employees of those entities shall work and cooperate

ENR. S. B. NO. 1877 Page 314
with and lend assistance to the Chief Information Officer and the
Information Services Division of the Office of Management and
Enterprise Services and provide any and all information requested by
the Chief Information Officer.

M. The Chief Information Officer shall prepare an annual report
detailing the ongoing net saving attributable to the reallocation
and consolidation of information technology and telecommunication
resources and personnel and shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit the report to the Governor, the Speaker of the Oklahoma House
of Representatives, and the President Pro Tempore of the Oklahoma
State Senate.

N. For purposes of the Oklahoma Information Services Act,
unless otherwise provided for, “state agencies” shall include any
office, officer, bureau, board, commission, counsel, unit, division,
body, authority, or institution of the executive branch of state
government, whether elected or appointed; provided, except with
respect to the provisions of subsection D of this section, the term
“state agencies” shall not include institutions within The Oklahoma
State System of Higher Education, the Oklahoma State Regents for
Higher Education and the telecommunications network known as OneNet.

O. As used in this section:

1. “High technology system” means advanced technological
equipment, software, communication lines, and services for the
processing, storing, and retrieval of information by a state agency;

2. “Consolidation contract” means a contract for several state
or public agencies for the purpose of purchasing information
technology and telecommunication goods and services; and

3. “Enterprise agreement” means an agreement for information
technology or telecommunication goods and services with a supplier
who manufactures, develops, and designs products and provides
services that are used by one or more state agencies.

SECTION 132. AMENDATORY 62 O.S. 2021, Section 34.32, as
amended by Section 25, Chapter 228, O.S.L. 2022 (62 O.S. Supp. 2025,
Section 34.32), is amended to read as follows:

ENR. S. B. NO. 1877 Page 315

Section 34.32. A. The Information Services Division of the
Office of Management and Enterprise Services shall create a standard
security risk assessment for state agency information technology
systems that complies with the International Organization for
Standardization (ISO) and the International Electrotechnical
Commission (IEC) Information Technology - Code of Practice for
Security Management (ISO/IEC 27002).

B. Each state agency that has an information technology system
shall obtain an information security risk assessment to identify
vulnerabilities associated with the information system. The
Information Services Division of the Office of Management and
Enterprise Services shall approve not less than two firms which
state agencies may choose from to conduct the information security
risk assessment.

C. A state agency with an information technology system that is
not consolidated under the Information Technology Consolidation and
Coordination Act or that is otherwise retained by the agency shall
additionally be required to have an information security audit
conducted by a firm approved by the Information Services Division
that is based upon the most current version of the NIST Cyber-
Security Framework, and shall submit a final report of the
information security risk assessment and information security audit
findings to the Information Services Division each year on a
schedule set by the Information Services Division. Agencies shall
also submit a list of remedies and a timeline for the repair of any
deficiencies to the Information Services Division within ten (10)
days of the completion of the audit. The final information security
risk assessment report shall identify, prioritize, and document
information security vulnerabilities for each of the state agencies
assessed. The Information Services Division may assist agencies in
repairing any vulnerabilities to ensure compliance in a timely
manner.

D. Subject to the provisions of subsection C of Section 34.12
of this title, the Information Services Division shall, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically report the results of the state agency
assessments and information security audit findings required
pursuant to this section to the Governor, the Speaker of the House

ENR. S. B. NO. 1877 Page 316
of Representatives, and the President Pro Tempore of the Senate by
the first day of January of each year. Any state agency with an
information technology system that is not consolidated under the
Information Technology Consolidation and Coordination Act that
cannot comply with the provisions of this section shall consolidate
under the Information Technology Consolidation and Coordination Act.

E. This section shall not apply to state agencies subject to
mandatory North American Electric Reliability Corporation (NERC)
cybersecurity standards and institutions within The Oklahoma State
System of Higher Education, the Social Security Disability
Determination Services Division of the Department of Rehabilitation
Services, and the Oklahoma State Regents for Higher Education and
the telecommunications network known as OneNet that follow the
International Organization for Standardization (ISO), the Oklahoma
Military Department (OMD) and the International Electrotechnical
Commission (IEC)-Security techniques-Code of Practice for
Information Security Controls or National Institute of Standards and
Technology.

SECTION 133. 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 preceding each
regular session of the Legislature, each state agency, including
those created or established pursuant to constitutional provisions,
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically 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 shall 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 designate the
information to be given.

ENR. S. B. NO. 1877 Page 317
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 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. 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

ENR. S. B. NO. 1877 Page 318
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
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 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 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 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

ENR. S. B. NO. 1877 Page 319
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
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 134. AMENDATORY 62 O.S. 2021, Section 34.37, is
amended to read as follows:

Section 34.37. Immediately after the beginning of each regular
session of the Legislature, the Governor shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit to the presiding officer of each house, copies
of the budget based upon the investigations and conclusions of the
Office of Management and Enterprise Services. Such budget document
shall contain a complete and itemized plan of all proposed
expenditures for each agency or undertaking classified according to
the various cabinet areas designated by the Governor or otherwise
created by law. Such expenditures shall be further classified by
function, character, and object, and in the event such proposed
expenditures exceed the estimate made by the State Board of
Equalization, the Governor shall accompany the budget document with
a proposal of new revenue raising measures sufficient to effect a
balanced budget for the ensuing fiscal year.

ENR. S. B. NO. 1877 Page 320
SECTION 135. 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 utilizing the centralized
filing system provided for in Section 378 of this act.

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
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 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.

ENR. S. B. NO. 1877 Page 321

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 136. AMENDATORY 62 O.S. 2021, Section 34.52, is
amended to read as follows:

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 electronically filed,
utilizing the centralized filing system provided for in Section 378
of this act, with the Joint Legislative Committee on Budget and
Program Oversight as created by Section 34.96 of this title.

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 electronically transmitted, utilizing the centralized filing
system provided for in Section 378 of this act, 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 by

ENR. S. B. NO. 1877 Page 322
electronic transmission, utilizing the centralized filing system
provided for in Section 378 of this act, to the agency, the
Governor, and the Chair and Vice Chair of the Joint Legislative
Committee on Budget and Program Oversight 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

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. 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.

SECTION 137. AMENDATORY 62 O.S. 2021, Section 34.88, is
amended to read as follows:

Section 34.88. A. The Office of Accountability shall
separately account for and report monthly revenues which it
determines accrued to the Education Reform Revolving Fund which were
attributable to the tax increases contained in Enrolled House Bill
No. 1017 of the 1st Extraordinary Session of the 42nd Oklahoma
Legislature.

B. Funds separately accounted for herein shall be used only to
fund the reforms provided for in Enrolled House Bill No. 1017 of the
1st Extraordinary Session of the 42nd Oklahoma Legislature and for
no other purpose. Any appropriation or expenditure of any of such
funds for any other purpose shall be null and void and of no effect.

C. The Office of Accountability shall track apportionment of
revenues which are deposited to the credit of the Education Reform

ENR. S. B. NO. 1877 Page 323
Revolving Fund of the State Treasury which are attributable to the
changes contained in Enrolled House Bill No. 1017 of the 1st
Extraordinary Session of the 42nd Oklahoma Legislature on a fiscal
year basis and shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically provide an
accounting to the Governor, Speaker of the House of Representatives,
and President Pro Tempore of the Senate, within thirty (30) days
after the end of the fiscal year.

SECTION 138. AMENDATORY 62 O.S. 2021, Section 34.94, is
amended to read as follows:

Section 34.94. The Office of Management and Enterprise Services
shall separately account for and report monthly revenues which it
determines are attributable to fees collected by the Oklahoma Board
of Private Vocational Schools pursuant to Section 21-106 of Title 70
of the Oklahoma Statutes. The Office of Management and Enterprise
Services shall track the fee revenue deposited by the Board on a
fiscal year basis and shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically provide an
accounting to the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate within
thirty (30) days after the end of the fiscal year.

SECTION 139. 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 to 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

ENR. S. B. NO. 1877 Page 324
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 measurable 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, utilizing the centralized filing system
provided for in Section 378 of this act, electronically 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.

ENR. S. B. NO. 1877 Page 325
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 140. AMENDATORY 62 O.S. 2021, Section 34.200-1,
is amended to read as follows:

Section 34.200-1. A. The State Treasurer in cooperation with
the Office of Management and Enterprise Services shall produce a
written debt affordability study (study) to be presented to the
Legislature and the Governor.

B. The study shall be used to determine Oklahoma’s debt
position relative to its benchmark debt ratio of debt service as a
percentage of revenues. The study shall incorporate information
available in other sources, such as the Annual Bonded Indebtedness
Report produced by the State Treasurer, into an analysis of
Oklahoma’s debt position.

C. The study shall include the net tax-supported and net
revenue-supported debt of this state for the most recently concluded
fiscal year. It shall also include the debt for the most recently
concluded fiscal year of state agencies and state-beneficiary public
trusts which are authorized to issue debt.

D. The study shall include the following:

1. Projections of debt service, future debt issuance, and debt
to capacity, such as debt service as a percentage of revenues. Each
projection shall extend at least five (5) years from the study’s
fiscal year of publication;

2. A discussion of Oklahoma’s unfunded pension liabilities and
the impact of these liabilities on the state’s ability to borrow and
cost of debt;

3. An identification and calculation of relevant metrics
including, but not limited to, debt service as a percentage of
revenues, total debt as a percentage of state personal income, and
total debt per capita;

ENR. S. B. NO. 1877 Page 326
4. A comparison of debt metrics to a select group of at least
ten other states so that Oklahoma may be able to measure and
contextualize its debt relative to other states;

5. A sensitivity analysis to understand the effects of
uncertain conditions. This sensitivity analysis may include
analysis on the impact of debt ratios of revenues being above or
below expectations or interest rates increasing or decreasing from
positions at time of publication; and

6. An estimate of available debt capacity the state may issue
over the next five (5) years without causing the benchmark debt
ratio of debt service as a percentage of revenues to exceed five
percent (5%). This estimate is based on the state’s net tax-
supported debt and the debt of the relevant state units and
agencies.

E. In preparing any authorization of new debt, the debt-issuing
entity, the Legislature, and the Governor shall take the study’s
recommendations and estimates into consideration. In addition, the
study’s recommendations and estimates shall be taken into
consideration by the Legislature and the Governor during capital
planning and budgeting processes.

F. The State Treasurer and the Office of Management and
Enterprise Services shall report the results of the study to the
Legislature by electronically transmitting, utilizing the
centralized filing system provided for in Section 378 of this act, a
copy of such study to the Speaker of the House of Representatives,
the President Pro Tempore of the State Senate, and to the Governor
on or before January 15 of each year.

G. The study’s recommendations and estimates shall be advisory
and not binding.

SECTION 141. AMENDATORY 62 O.S. 2021, Section 34.301, as
last amended by Section 1, Chapter 319, O.S.L. 2025 (62 O.S. Supp.
2025, Section 34.301), is amended to read as follows:

Section 34.301. A. This act shall be known and may be cited as
the “Civil Service and Human Capital Modernization Act”.

ENR. S. B. NO. 1877 Page 327
B. The Human Capital Management Division and the Civil Service
Division of the Office of Management and Enterprise Services shall:

1. Establish and maintain a State Employee Dispute Resolution
Program, which may include mediation, to provide dispute resolution
services for state agencies and state employees. Actions agreed to
through the State Employee Dispute Resolution Program shall be
consistent with applicable laws and rules and shall not alter,
reduce, or modify any existing right or authority as provided by
statute or rule;

2. Establish rules pursuant to the Administrative Procedures
Act as may be necessary to perform the duties and functions of this
act, including creating an Office of Veterans Placement to offer
counseling, assessment, and assistance to veterans seeking state
employment;

3. Receive and only act on complaints by state employees
arising from disciplinary action;

4. Use administrative law judges as independent contractors or
administrative law judges provided by the Office of the Attorney
General to exercise the provisions of this act;

5. Submit Electronically submit, utilizing the centralized
filing system provided for in Section 378 of this act, quarterly
reports on workload statistics to the Governor, the Speaker of the
Oklahoma House of Representatives, and the President Pro Tempore of
the Oklahoma State Senate containing the following information:

a. the number of cases, complaints and requests for
hearings filed, disposed of, and pending with the
Divisions for each month of the quarter, and

b. a numerical breakdown of the methods of disposition of
such cases, complaints, and requests for hearing.

Quarterly reports shall be submitted within thirty (30) days
following the last day of the month of the appropriate quarter;

6. Create a confidential whistleblower program and serve as the
chief administrator of such program whereby a state employee may

ENR. S. B. NO. 1877 Page 328
confidentially report claims of agency or employee mismanagement as
well as criminal misuse of state funds or property. Mismanagement
includes fraudulent activity or abuse or violation of a well-
established, articulated, clear, and compelling public policy. The
Office of the Attorney General shall have the authority to
investigate and determine whether to prosecute such whistleblower
claims. The Attorney General shall also have the power to refer
such claims to the appropriate district attorney; and

7. Receive and act upon complaints from disciplinary action and
grievances filed by state employees employed to perform duties as
outlined in paragraph 6 of subsection E of Section 3311 of Title 70
and Section 2-105 of Title 47 of the Oklahoma Statutes and to
establish rules pursuant to the Administrative Procedures Act as may
be necessary to carry out this objective and the right to be heard.

C. Complaints shall be filed with the Civil Service Division
within ten (10) business days of the date of when such action
occurred and hearings shall take place within thirty (30) business
days from the filing of the complaint, with the exception of actions
filed pursuant to paragraph 7 of subsection B of this section.

D. Employees filing a complaint with the Civil Service Division
shall prove that there was no reasonable basis for the disciplinary
action by the state agency. The review of the merits of the
complaint may be limited to the employee disciplinary file directly
at issue. In the event documents needed are not maintained in the
disciplinary file, or additional witnesses are requested by the
parties, the administrative law judge shall have the discretion to
allow additional documentation or witnesses regarding the
disciplinary action taken. Complaints relating to punitive
transfers shall be administrated through mediation first and shall
only proceed to a hearing if mediation is unsuccessful. Employees
who were offered a relocation incentive as set forth in
administrative rule shall not be deemed as being subject to a
punitive transfer. Complaints relating to written reprimands shall
be administered through mediation exclusively, and state employees
employed to perform duties as outlined in paragraph 6 of subsection
E of Section 3311 of Title 70 and Section 2-105 of Title 47 of the
Oklahoma Statutes shall be permitted to proceed to a hearing if
mediation is unsuccessful. Mediation may also be available for
other disciplinary actions.

ENR. S. B. NO. 1877 Page 329

E. Claimants shall be permitted to secure and utilize
representation during the adverse action process.

F. The presiding officer of any proceeding before the Civil
Service Division may require payment of reasonable attorney fees and
costs to the prevailing party if the position of the nonprevailing
party was without reasonable basis or was frivolous.

G. For purposes of this section, “disciplinary actions” means
termination, suspension without pay, involuntary demotion, punitive
transfers, or written reprimand.

H. Nothing in this section shall apply to:

1. Persons employed by the Governor, Lieutenant Governor,
Oklahoma House of Representatives, Oklahoma State Senate,
Legislative Service Bureau, or the Legislative Office of Fiscal
Transparency;

2. Elected officials;

3. Political appointees;

4. District attorneys, assistant district attorneys or other
employees of the district attorney’s office, and the District
Attorneys Council;

5. The state judiciary or persons employed by the state
judiciary;

6. Not more than five percent (5%) of an agency’s employees
designated as executive management as determined by the agency
director and the agency shall designate the status of the employee
as state employee or executive management in the State of Oklahoma’s
Human Resources Information System, maintained by the Human Capital
Management Division;

7. Temporary employees employed to work less than one thousand
(1,000) hours in any twelve-month period;

ENR. S. B. NO. 1877 Page 330
8. Seasonal employees employed to work less than one thousand
six hundred (1,600) hours in any twelve-month period;

9. Employees in a trial period; or

10. State employees whose employment status is otherwise
provided by law.

I. Except as provided by subsection H of this section,
effective January 1, 2022, all state employee positions shall be
administered by the Human Capital Management Division of the Office
of Management and Enterprise Services, without reference to prior
classified or unclassified status.

J. In collaboration with executive branch agencies, and their
human resources personnel, the Human Capital Management
Administrator shall establish and define statewide minimum standards
for human resource business processes, based on industry standards
and statewide best practices, to be followed by all executive branch
agencies. The Human Capital Management Administrator has the
authority to grant exceptions to the statewide minimum standards.
Additionally, the Human Capital Management Administrator shall
establish and maintain a statewide job catalog and pay structure for
executive branch jobs and establish policies and procedures for a
market-based pay system, pay-for-performance system, and dispute
resolution process for issues that do not rise to a disciplinary
action as provided by the Civil Service and Human Capital
Modernization Act. The Human Capital Management Administrator shall
promulgate rules necessary to carry out the authority set forth in
this section.

K. The Civil Service Division is authorized to employ attorneys
or contract with private attorneys to serve as legal counsel to the
Civil Service Division. The attorneys shall be authorized to appear
for and represent the Civil Service Division in all litigation that
may arise from the discharge of its duties, including the
representation of the Civil Service Division when its decisions are
appealed to higher courts. Attorneys employed by the Office of
Management and Enterprise Services to represent the Civil Service
Division shall represent the Civil Service Division notwithstanding
its representation of the Office of Management and Enterprise
Services in the same or related matters pending before the Civil

ENR. S. B. NO. 1877 Page 331
Service Division or before any court. The Office of Management and
Enterprise Services shall establish internal administrative
procedures to ensure that all departments within the Office of
Management and Enterprise Services are provided independent legal
representation, and such simultaneous representation shall not, of
itself, be deemed to constitute a conflict of interest.

L. The Civil Service Division shall be exempt from the
requirements set forth in Section 20i of Title 74 of the Oklahoma
Statutes when carrying out the duties and functions of this act.

SECTION 142. AMENDATORY 62 O.S. 2021, Section 35.9, is
amended to read as follows:

Section 35.9. In addition to any other reporting requirements
required by law, the Chief Information Officer shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit quarterly progress reports to the Director of
the Office of Management and Enterprise Services, the Speaker of the
House of Representatives, and the President Pro Tempore of the
Senate. The reports shall be submitted not later than January 31,
April 30, July 31, and October 31 of each year and shall include,
but not be limited to, the following information:

1. The status of the implementation of the plan of action
required in paragraph 2 of subsection D of Section 34.11.1 of this
title;

2. A list of information technology assets and positions
transferred to the Information Services Division of the Office of
Management and Enterprise Services pursuant to the provisions of
subsection C of Section 35.5 of this title;

3. After July 1, 2012, and until the information technology
consolidation is completed, an annual reduction of three percent
(3%) in operational information technology and telecommunications
expenditures realized in the aggregate by all consolidated state
agencies;

4. A list of all state agencies which are not using the shared
services as required in Section 35.6 of this title;

ENR. S. B. NO. 1877 Page 332
5. A list of all exemptions or extensions granted pursuant to
the provisions of Section 35.7 of this title; and

6. Any other information as deemed appropriate by the Chief
Information Officer.

SECTION 143. AMENDATORY 62 O.S. 2021, Section 36, is
amended to read as follows:

Section 36. A. There is hereby created in the State Treasury a
fund for the Office of Management and Enterprise Services to be
designated the “Digital Transformation Program Revolving Fund”. The
fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of monies designated to the fund by
law. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Office of
Management and Enterprise Services for the purpose of implementing
digital transformation initiatives, and upon request of the Oklahoma
Department of Commerce, to pay for administrative support expenses
for the Rural Broadband Expansion Council as provided by Section 3
of this act. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.

B. Monthly the Director of the Office of Management and
Enterprise Services shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit
reports to the Speaker of the Oklahoma House of Representatives, the
President Pro Tempore of the Oklahoma State Senate, the Chair of the
Appropriations and Budget Committee of the Oklahoma House of
Representatives, and the Chair of the Appropriations Committee of
the Oklahoma State Senate detailing:

1. Expenditures from the Digital Transformation Program
Revolving Fund; and

2. Projects under consideration for future expenditures from
the fund.

SECTION 144. AMENDATORY 62 O.S. 2021, Section 45.3, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 333

Section 45.3. A. Each state agency shall make a strategic plan
for its operations. The first strategic plans will be due October
1, 2001, and in each subsequent even-numbered year. Each state
agency plan shall cover five (5) fiscal years beginning with the
next odd-numbered fiscal year.

B. The Office of Management and Enterprise Services shall
determine the elements required to be included in each agency’s
strategic plan. Unless modified by the Office of Management and
Enterprise Services, and except as provided by subsection C of this
section, a plan must shall include, but is not limited to, the
following items:

1. A statement of the mission and goals of the state agency;

2. A description of the indicators developed under this act and
used to measure the output and outcome of the agency and its
programs;

3. Identification of the groups of people served by the agency,
including those having service priorities, or other service measures
established by law, and estimates of changes in those groups
expected during the term of the plan;

4. An analysis of the use of the agency’s resources to meet the
agency’s mission, including future needs, and an estimate of
additional resources that may be necessary to achieve said mission;

5. An analysis of expected changes in the services provided by
the agency because of changes in state or federal law;

6. A description of the means and strategies, including cost-
containment strategies and efficiency proposals, for meeting the
agency’s needs, including future needs, and achieving the goals for
each area of state government for which the agency provides
services;

7. A summary of the capital improvement needs of the agency
which were provided to the Long-Range Capital Planning Commission as
required by Section 901 of this title; and

ENR. S. B. NO. 1877 Page 334
8. Other information that may be required.

C. A state agency’s plan that does not include an item
described by subsection B of this section must shall include the
reason the item does not apply to the agency.

D. Each state agency’s plan shall be submitted at the same time
as the estimate of funds needed developed pursuant to Section 34.36
of this title.

E. A state agency shall send one, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a copy of the plan each to:

1. The Governor;

2. The President Pro Tempore of the State Senate;

3. The Speaker of the House of Representatives;

4. The Legislative Oversight Committee on State Budget
Performance;

5. The Chair and Vice Chair of the Joint Committee on
Accountability in Government;

6. The Director of the Office of Management and Enterprise
Services; and

7. The State Auditor and Inspector.

F. In this section, “capital improvement” means any building or
infrastructure project that will be owned by the state and built
with direct appropriations or with the proceeds of state-issued
bonds or paid from revenue sources other than general revenue at a
cost of at least Twenty-five Thousand Dollars ($25,000.00) and has a
useful life of at least five (5) years.

SECTION 145. AMENDATORY 62 O.S. 2021, Section 45.11, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 335
Section 45.11. A. No later than October 1 of each year, each
state agency shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit a program
management and performance report to the Chair and Vice Chair of the
House Appropriations and Budget Committee, the Chair and Vice Chair
of the Senate Appropriations Committee, the Chair and Vice Chair of
the Senate Finance Committee, and the Director of the Office of
Management and Enterprise Services. The report shall contain, at a
minimum, detailed data for each agency program relating to each of
the evaluation factors set out in Section 45.9 of Title 62 of the
Oklahoma Statutes. It shall also list:

1. Specific cost avoidance and cost containment measures
implemented during the previous fiscal year;

2. The agency’s methodology for:

a. determining its fee structure,

b. calculating fees, and

c. measuring customer satisfaction;

3. Programs or operations not required for the agency’s core
function; and

4. Details showing the actual cost of any programs or
operations listed under paragraph 3 of this subsection.

B. For purposes of this section:

1. “State agency” means a governmental agency as defined in
Section 34.29 of Title 62 of the Oklahoma Statutes that receives an
appropriation and is authorized to adopt a fee; and

2. “Program” means a service, contract, operation or procedure
of an agency.

SECTION 146. AMENDATORY 62 O.S. 2021, Section 48.2, as
amended by Section 1, Chapter 313, O.S.L. 2019, is amended to read
as follows:

ENR. S. B. NO. 1877 Page 336
Section 48.2. A. There is hereby created in the State Treasury
a revolving fund for the Oklahoma Department of Commerce to be
designated the Oklahoma Quick Action Closing Fund. The fund shall
be a continuing fund, not subject to fiscal year limitations and
shall consist of:

1. All monies apportioned or allocated to the fund pursuant to
law;

2. Any amounts appropriated by the Legislature to the fund;

3. Interest earned on the investment of money in the fund;

4. Gifts, grants, and other donations received for the fund;
and

5. Five percent (5%) of all funds paid by the Tax Commission to
establishments that execute contracts for payment of incentives
pursuant to the Oklahoma Quality Jobs Program Act and the 21st
Century Quality Jobs Incentive Act if the contract is executed on or
after the August 2, 2018.

B. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Governor for
the purposes of economic development and related infrastructure
development in instances in which expenditure of such funds would
likely be a determining factor in locating a high-impact business
project or facility in Oklahoma, in retaining such project or
facility within the state or for payment of rebates to a high impact
production pursuant to the Oklahoma Film Enhancement Rebate Program.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.

C. In order to qualify for any funds from the Oklahoma Quick
Action Closing Fund, the establishment making application shall be
engaged in a business activity described by a North American
Industry Classification System (NAICS) Code used to define
eligibility for incentive payments from the Oklahoma Quality Jobs
Program Act as defined in Section 3603 of Title 68 of the Oklahoma
Statutes or a business activity described by Section 3603 of Title

ENR. S. B. NO. 1877 Page 337
68 of the Oklahoma Statutes or be engaged in a “basic industry” used
to define eligibility for incentive payments from the 21st Century
Quality Jobs Incentive Act as prescribed by Section 3913 of Title 68
of the Oklahoma Statutes or a high impact production company which
has been approved for a rebate pursuant to the provisions of Section
3624 of Title 68 of the Oklahoma Statutes.

D. Except in the case of a high impact production company
which has been approved for a rebate pursuant to the provisions of
Section 3624 of Title 68 of the Oklahoma Statutes, the Governor
shall not approve payments from the Oklahoma Quick Action Closing
Fund unless the Department of Commerce has conducted a complete
analysis of the potential impact of the applicant’s business
activity which shall include, but not be limited to:

1. The number of jobs to be created by a new business
establishment;

2. The number of jobs to be retained by an existing business
establishment;

3. The average salary of jobs to be created by a new
establishment;

4. The average salary of jobs to be retained by an existing
business establishment;

5. The total capital investment to be made by the business
establishment;

6. The likelihood of other business establishments locating
within the same vicinity or within the state as a result of the
business activity to be conducted by the entity to receive payments
from the Oklahoma Quick Action Closing Fund;

7. The impact on the economy of the area or community in which
the business activity of the applicant is or will be conducted; and

8. Such other factors as the Governor and the Department of
Commerce determine to be relevant.

ENR. S. B. NO. 1877 Page 338
E. The Oklahoma Department of Commerce shall administer the
Oklahoma Quick Action Closing Fund, and expenditures from the fund
shall be recommended by the Director of the Oklahoma Department of
Commerce to the Governor after a thorough evaluation of selected
projects or facilities or after a rebate is approved for payment to
a high impact production company pursuant to the provisions of
Section 3624 of Title 68 of the Oklahoma Statutes. Except for
rebates approved pursuant to the provisions of Section 3624 of Title
68 of the Oklahoma Statutes, the Director of the Oklahoma Department
of Commerce shall only recommend expenditures that the Director
determines are expected to result in a net economic benefit to the
state through the following:

1. The creation of new jobs which offer a basic health benefit
plan, as defined in the Oklahoma Quality Jobs Program Act;

2. The maintenance of existing jobs which are at a risk for
termination;

3. Investment in new real property, plant or equipment or in
the improvement or retooling of existing plant or equipment; or

4. Additional revenues in either ad valorem, income or sales
and use taxes.

F. The Oklahoma Department of Commerce shall develop rules for
the process of reviewing proposed expenditures from the Oklahoma
Quick Action Closing Fund and for the determination of whether or
not proposed expenditures meet the criteria identified in subsection
E of this section. Criteria shall include, but not be limited to,
requirements for economic impact, local participation in the
project, capital investment, and average wage thresholds.

G. Upon receipt of an evaluation that recommends an expenditure
from the Oklahoma Quick Action Closing Fund from the Director of the
Oklahoma Department of Commerce, the Governor shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically provide the evaluation and recommendation to the
President Pro Tempore of the State Senate and the Speaker of the
Oklahoma House of Representatives before giving final approval for
the expenditure on the project. The Executive Office of the
Governor shall recommend final approval of an expenditure on a

ENR. S. B. NO. 1877 Page 339
project pursuant to consultation with the President Pro Tempore of
the State Senate and the Speaker of the Oklahoma House of
Representatives.

H. Upon approval by the Governor, the Oklahoma Department of
Commerce shall enter into an agreement that sets forth the
conditions for payment of monies from the Oklahoma Quick Action
Closing Fund. The agreement must shall include:

1. The total amount of funds awarded;

2. Except in the case of a rebate approved for payment to a
high impact production company pursuant to the provisions of Section
3624 of Title 68 of the Oklahoma Statutes, the performance
conditions that must shall be met to obtain the award including, but
not limited to, net new employment in the state, average salary, and
total capital investment;

3. If appropriate, a baseline of current service and measure of
enhanced capability;

4. The methodology of validating performance;

5. The schedule of payments from the fund, and claw-back
provisions for failure to meet performance conditions; and

6. A requirement that no monies paid from the Oklahoma Quick
Action Closing Fund shall be used by a recipient or any other person
or entity for purposes of any political contribution to or on behalf
of any candidate or for the support of or opposition to any measure
including but not limited to an initiative petition or referendum.

I. The Department of Commerce shall make available on its
website or other website dedicated for this purpose a complete
disclosure of all payments made from the Oklahoma Quick Action
Closing Fund. The disclosure shall include a description of the
expenditures made by the business establishment with the payments
made from the fund. No proprietary information of the business
establishment shall be subject to the requirements of this
subsection.

ENR. S. B. NO. 1877 Page 340
J. If any or all of the amount to be awarded is used to build a
capital improvement, except in the case of an amount approved for
payment to a high impact production company pursuant to the
provisions of Section 3624 of Title 68 of the Oklahoma Statutes:

1. The funds used for the capital improvement shall be deemed
to be held in trust for the benefit of the state and shall be
considered as a priority claim for purposes of federal bankruptcy
law; and

2. If the capital improvement is sold, the recipient of the
award shall:

a. repay the state the money awarded to pay for the
capital improvement, with interest at the rate and
according to the other terms provided by the
agreement, and

b. share with the state a proportionate amount of any
profit realized from the sale.

K. If, as of the date certain provided in the agreement, the
award recipient has not used monies awarded for the intended
purposes, the recipient shall repay that amount and any related
interest to the state at the agreed rate and on the agreed terms and
any such amounts shall be deemed to be held in trust for the benefit
of the state and shall be considered as a priority claim for
purposes of federal bankruptcy law.

SECTION 147. AMENDATORY 62 O.S. 2021, Section 49, is
amended to read as follows:

Section 49. On or before November 1 of each year, the Office of
Management and Enterprise Services shall develop and publish a
multi-year trend analysis of the state’s budget outlook which
includes the current fiscal year, the ensuing fiscal year and the
following two (2) fiscal years. The trend analysis shall include
projections of revenues and expenditures reflecting the best
available information concerning economic activity, population
change, policy developments, and other factors affecting the state
budget. The analysis shall be electronically provided to the
President Pro Tempore of the Senate, members of the Senate

ENR. S. B. NO. 1877 Page 341
Appropriations and Finance Committees, the Speaker of the House of
Representatives and members of the House Appropriations and Budget
Committee utilizing the centralized filing system provided for in
Section 378 of this act.

SECTION 148. AMENDATORY 62 O.S. 2021, Section 71.1, as
amended by Section 4, Chapter 308, O.S.L. 2025 (62 O.S. Supp. 2025,
Section 71.1), is amended to read as follows:

Section 71.1. A. There is hereby created the Invest in
Oklahoma Board. The Board shall consist of five (5) members as
follows:

1. The Governor, or designee;

2. The Lieutenant Governor, or designee;

3. The State Treasurer, or designee;

4. An appointee of the Speaker of the House of Representatives
who shall serve at the Speaker’s pleasure; and

5. An appointee of the President Pro Tempore of the Oklahoma
State Senate who shall serve at the President Pro Tempore’s
pleasure.

B. The appointed and designated members shall have no direct or
indirect business relationship with the State Treasurer or the State
Treasurer’s Office.

C. The Governor or Governor’s designee shall serve as
chairperson.

D. The Board shall hold regular meetings not less than one per
quarter, and at such other times as it deems necessary for the
performance of its duties. The date, time, and place of the
meetings shall be set by the chairperson. The State Treasurer shall
provide the administrative support required by the Board. The Board
shall be staffed by efforts under the control of the State Treasurer
who shall prepare all materials and information needed by the Board
to perform its duties and responsibilities. Meetings of the Board

ENR. S. B. NO. 1877 Page 342
shall be subject to the Oklahoma Open Meeting Act, and their records
shall be public records pursuant to the Oklahoma Open Records Act.

E. The Board shall develop a standardized and uniform reporting
system which the State Treasurer shall use to make the reports
required by Section 89.7 of this title. The Board shall prescribe
such forms in order to obtain an objective and accurate analysis of
the investment of state funds by the State Treasurer and to obtain
an accurate analysis of investment performance according to an
objective standard established by the Board. The Board shall not be
subject to the provisions of the Administrative Procedures Act for
purposes of developing the reporting system required by this
subsection. The Board shall review the reports prepared by the
State Treasurer pursuant to Section 89.7 of this title. The Board
shall review with the State Treasurer investment strategies and
practices and the development of internal auditing procedures and
practices. The Board shall review the reports submitted by the
State Treasurer and shall identify any event, transaction, or trend
which the Board determines to represent a violation or potential
violation of law or public policy regarding the investment of state
funds. The Board shall specifically identify its concerns or
objections and shall communicate such concerns or objections in
writing to the State Treasurer.

F. The State Treasurer shall maintain a report available to
each member of the Board which specifically identifies entities with
whom or with which the State Treasurer has transacted business
related to investment of any state funds. Any person or entity to
whom or to which any form of compensation has been or will be paid
for services rendered to the State Treasurer’s Office related to the
investment of state funds shall be identified in such report. Such
report shall also be available electronically to the Director of the
Office of Management and Enterprise Services, the State Auditor and
Inspector, the Speaker of the House of Representatives, the
President Pro Tempore of the Senate and the Governor utilizing the
centralized filing system provided for in Section 378 of this act.

G. Members of the Board shall serve without compensation,
except for travel, pursuant to the State Travel Reimbursement Act,
to be paid by the appointing authority.

ENR. S. B. NO. 1877 Page 343
H. The Board shall establish and adopt investment parameters
related to investments in Oklahoma-based private equity funds,
venture capital funds, growth funds, and direct investments in
Oklahoma companies authorized under the Invest in Oklahoma program;
provided that by a unanimous vote of the Board such parameters may
be exceeded with regard to investments to the extent allowable under
the Oklahoma Constitution.

I. The Board shall exercise confirmation and approval authority
over the appointment and contractual relationships of qualified
investment advisors and fiduciary managers engaged by the State
Treasurer to assist in the selection of the investments authorized
under the Invest in Oklahoma program.

SECTION 149. AMENDATORY 62 O.S. 2021, Section 88.4, is
amended to read as follows:

Section 88.4. A. The State Treasurer is hereby authorized to
administer the Oklahoma Small Business Linked Deposit Program. The
State Treasurer is further authorized to issue guidelines in a
manner similar to the Administrative Procedures Act, Section 250 et
seq. of Title 75 of the Oklahoma Statutes.

B. The State Treasurer shall take any and all steps necessary
to implement the Oklahoma Small Business Linked Deposit Program and
monitor compliance of eligible lending institutions and eligible
participants, including the development of guidelines as necessary.

C. The State Treasurer shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit an annual report outlining the status of the Oklahoma Small
Business Linked Deposit Program to the Governor, the Lieutenant
Governor, the President Pro Tempore of the Senate, and the Speaker
of the House of Representatives.

SECTION 150. AMENDATORY 62 O.S. 2021, Section 89.2, as
amended by Section 5, Chapter 308, O.S.L. 2025 (62 O.S. Supp. 2025,
Section 89.2), is amended to read as follows:

Section 89.2. A. The State Treasurer is directed to invest the
maximum amount of funds under control of the State Treasurer
consistent with good business practices. Except as otherwise

ENR. S. B. NO. 1877 Page 344
provided for by law, the investments shall earn not less than the
rate for comparable maturities on United States Treasury
obligations. Except as otherwise provided for by law, the State
Treasurer may purchase and invest only in:

1. Obligations of the United States Government, its agencies
and instrumentalities, or other obligations fully insured or
unconditionally guaranteed as to the payment of principal and
interest by the United States government or any of its agencies and
instrumentalities;

2. Collateralized or insured certificates of deposit and other
evidences of deposit at banks, savings banks, savings and loan
associations, and credit unions located in this state;

3. Negotiable certificates of deposit issued by a nationally or
state-chartered bank, a savings bank, a savings and loan
association, or a state-licensed branch of a foreign bank.
Purchases of negotiable certificates of deposit shall not exceed ten
percent (10%) of the cash available for investment which may be
invested pursuant to this section. Not more than one-half (1/2) of
the ten percent (10%) limit shall be invested in any one financial
institution specified in this paragraph;

4. Prime banker’s acceptances which are eligible for purchase
by the Federal Reserve System and which do not exceed two hundred
seventy (270) days’ maturity. Purchases of prime banker’s
acceptances shall not exceed ten percent (10%) of the cash available
for investment which may be invested pursuant to this section. Not
more than three-fourths (3/4) of the ten percent (10%) limit shall
be invested in any one commercial bank pursuant to this paragraph;

5. Prime commercial paper which shall not have a maturity that
exceeds one hundred eighty (180) days nor represent more than ten
percent (10%) of the outstanding paper of an issuing corporation.
Purchases of prime commercial paper shall not exceed seven and one-
half percent (7 1/2%) of the cash available for investment which may
be invested pursuant to this section;

6. Investment grade obligations of state and local governments,
including obligations of Oklahoma state public trusts which possess
the highest rating from at least one nationally recognized rating

ENR. S. B. NO. 1877 Page 345
agency acceptable to the State Treasurer. Purchases of investment
grade obligations of state and local governments shall not exceed
ten percent (10%) of the cash available for investment which may be
invested pursuant to this section;

7. Repurchase agreements, provided that such agreements are
included within the written investment policy required by subsection
D of this section that have underlying collateral consisting of
those items and those restrictions specified in paragraphs 1 through
6 of this subsection;

8. Money market funds and short term bond funds regulated by
the Securities and Exchange Commission and which investments consist
of those items and those restrictions specified in paragraphs 1
through 7 of this subsection; and

9. Bonds, notes, debentures, or other similar obligations of a
foreign government which the International Monetary Fund lists as an
industrialized country and for which the full faith and credit of
such nation has been pledged for the payment of principal and
interest; provided, that any such security shall be rated at least
A- or better by Standard & Poor’s Corporation or A3 or better by
Moody’s Investors Service, or an equivalent investment grade by a
securities ratings organization accepted by the National Association
of Insurance Commissioners; and provided further, that the total
investment in such foreign securities at any one time shall not
exceed five percent (5%) of the cash available for investment which
may be invested pursuant to this section. In no circumstance shall
investments be made in bonds, notes, debentures or any similar
obligations of a foreign government that:

a. is identified as a state sponsor of terrorism by the
United States Department of State, or

b. any authoritarian or totalitarian government the
sovereign powers of which are exercised through a
single person or group of persons who are not elected
by any form of legitimate popular voting.

B. Investments shall be made with judgment and care, under
circumstances then prevailing, which persons of prudence,
discretion, and intelligence exercise in the management of their own

ENR. S. B. NO. 1877 Page 346
affairs, not for speculation, but for investment, considering the
probable safety of their capital as well as the probable income to
be derived.

C. The State Treasurer shall appoint an investment officer who
shall perform duties related to the investment of state funds in the
Office of the State Treasurer. The investment officer shall not
perform or supervise any accounting functions, data processing
functions or duties related to the documentation or settlement of
investment transactions.

D. Investments of public funds by the State Treasurer shall be
made in accordance with written policies developed by the State
Treasurer. The written investment policies shall address:

1. Liquidity;

2. Diversification;

3. Safety of principal;

4. Yield;

5. Maturity and quality; and

6. Capability of investment management.

The State Treasurer shall place primary emphasis on safety and
liquidity in the investment of public funds. To the extent
practicable taking into account the need to use sound investment
judgment, the written investment policies shall include provision
for utilization of a system of competitive bidding in the investment
of state funds. The written investment policies shall be designed
to maximize yield within each class of investment instrument,
consistent with the safety of the funds invested.

E. Except as provided in subsection H of this section, the
State Treasurer shall select one custodial bank to settle
transactions involving the investment of state funds under the
control of the State Treasurer. The State Treasurer shall review
the performance of the custodial bank at least once every year. The
State Treasurer shall require a written competitive bid every five

ENR. S. B. NO. 1877 Page 347
(5) years. The custodial bank shall have a minimum of Five Hundred
Million Dollars ($500,000,000.00) in assets to be eligible for
selection. Any out-of-state custodial bank shall have a service
agent in the State of Oklahoma so that service of summons or legal
notice may be had on such designated agent as is now or may
hereafter be provided by law. In order to be eligible for
selection, the custodial bank shall allow electronic access to all
transaction and portfolio reports maintained by the custodial bank
involving the investment of state funds under control of the State
Treasurer. The access shall be given to the State Treasurer. The
requirement for electronic access shall be incorporated into any
contract between the State Treasurer and the custodial bank.
Neither the State Treasurer nor the custodial bank shall permit any
of the funds under the control of the State Treasurer or any of the
documents, instruments, securities, or other evidence of a right to
be paid money to be located in any place other than within a
jurisdiction or territory under the control or regulatory power of
the United States Government.

F. The investment policy shall specify the general philosophy,
policies, and procedures to be followed in the investment of state
monies by the State Treasurer. The investment policy shall include,
but not be limited to, the following:

1. Policy objectives;

2. Performance measure objectives;

3. Authority for investment program;

4. Possible use of an investment advisory committee;

5. Reporting and documentation of investments;

6. Authorized investment instruments;

7. Diversification of investment risk;

8. Maturity limitations;

9. Selections of financial institutions;

ENR. S. B. NO. 1877 Page 348
10. Interest controls;

11. Safekeeping of investments;

12. Investment ethics; and

13. Formal adoption of policy.

G. The State Treasurer may invest cash balance amounts as
defined and limited by Section 2402 of this title in the Invest in
Oklahoma program.

H. The State Treasurer is hereby authorized to establish
internal custodial accounts within the State Treasury, and enter
contractual relationships for custodial account services with
private institutions as needed, for the implementation and
administration of the Invest in Oklahoma program.

I. Not later than July 1 of each year, the State Treasurer
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically forward a copy of the
written investment policy to the Governor, the Speaker of the House
of Representatives, the President Pro Tempore of the Senate, the
Attorney General, the Bank Commissioner, and the Director of the
Office of Management and Enterprise Services. In addition, the
State Treasurer shall maintain one copy of the investment policy in
the office of the State Treasurer for public inspection during
regular business hours. Copies of any modifications to the
investment policy shall be forwarded electronically to the Governor,
Speaker of the House of Representatives, President Pro Tempore of
the Senate, and each member of the Cash Management and Investment
Oversight Commission utilizing the centralized filing system
provided for in Section 378 of this act.

SECTION 151. AMENDATORY 62 O.S. 2021, Section 89.7, is
amended to read as follows:

Section 89.7. A. The State Treasurer shall prepare monthly and
annual investment performance reports of the State Treasurer’s
Office in the form and manner required by the Cash Management and
Investment Oversight Commission after consultation with the State
Treasurer which summarize recent market conditions, economic

ENR. S. B. NO. 1877 Page 349
developments, and anticipated investment conditions and the
investment plan performance, including portfolio diversification and
rates of return measured against the investment plan of the State
Treasury. The annual investment performance report shall be
submitted to the Commission and shall be made within ninety (90)
calendar days after the end of the fiscal year. The monthly
investment performance reports shall be submitted to the Executive
Review Committee and shall be made within thirty (30) days after the
end of the applicable month. The investment performance reports
shall specify the investment strategies employed in the most recent
reporting period and describe the investment portfolio of the state
in terms of:

1. Securities;

2. Maturities;

3. Fund type;

4. Financial institutions from which securities were purchased,
including the amounts and the city and state of location;

5. Investment return compared to budgetary expectations;

6. Average yield; and

7. Average life of the portfolio.

The investment performance reports shall also indicate any areas of
concern which the State Treasurer has concerning the basic
investment strategies being employed. The investment performance
reports shall contain:

a. combined and individual rates of return and a list of
all losses by category of investment, over periods of
time;,

b. the rate of return on deposits and all fees and
expenses charged as to all depository financial
institutions of the State Treasury and a specific
review of the adequacy of the collateralization;,

ENR. S. B. NO. 1877 Page 350
c. any other information that the State Treasurer may
include;, and

d. such other information that the Cash Management and
Investment Oversight Commission created by Section
71.1 of this title may request and that the State
Treasurer agrees to include in the investment
performance reports.

B. To the extent that the State Treasurer should have reason to
know, the State Treasurer shall also include in the investment
performance reports a listing of all payments, fees, commissions, or
other compensation received by any person, including but not limited
to individuals, financial institutions, or investment companies or
corporations, which have an investment agreement, contract, or other
arrangement with the State Treasurer, or who receive any
compensation as a result of a transaction involving the investment
of state monies or funds or the purchase, sale, or trade of
securities or bonds involving the Office of the State Treasurer.
Said listings shall also include the social security or federal
identification number of any person, including but not limited to
individuals, financial institutions, or investment companies or
corporations, receiving payments, fees, commissions, or other
compensation.

C. The annual investment performance report shall be written in
simple and easily understood language containing:

a. an

1. An analysis of the written investment plans developed by the
Treasurer as required by law;

b. a

2. A quantitative analysis of the performance of all depository
financial institutions approved by the State Treasurer, with regard
to monies deposited;

c. the

ENR. S. B. NO. 1877 Page 351
3. The result of the analyses prepared pursuant to
subparagraphs a and b paragraphs 1 and 2 of this paragraph
subsection compared with similar data for other states;

d. recommendations

4. Recommendations on administrative and legislative changes
which are necessary to improve the performance of the State Treasury
in accordance with current standards for large public fund portfolio
management; and

e. a

5. A listing by object code of the expenses of the State
Treasury as audited by the independent auditor provided by Section
89.10 of this title.

D. The State Treasurer shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
distribute the investment performance reports to the Governor, the
President Pro Tempore of the Senate, the Speaker of the House of
Representatives, the State Auditor and Inspector, the Attorney
General, and members of the Cash Management and Investment Oversight
Commission. Upon request, the State Treasurer shall make the annual
investment performance report available to the members of the
Legislature and the general public. The annual investment
performance report shall also include an investment plan for the
ensuing fiscal year.

E. The State Treasurer shall require all employees in the State
Treasury to sign an anti-collusion affidavit. Execution of a false
affidavit shall make such employees subject to disciplinary action,
including but not limited to termination, criminal prosecution or
both.

F. The State Treasurer shall require an anti-collusion
affidavit from brokers or other persons offering investment services
to the State Treasury. The State Treasurer shall be prohibited from
employing or doing business with any brokers or persons offering
investment services to the State Treasury who have not executed such
an affidavit.

ENR. S. B. NO. 1877 Page 352
G. The Cash Management and Investment Oversight Commission
shall certify that the State Treasurer has delivered to the
Commission the monthly and annual investment performance reports and
the annual financial report required by this section. If the
Commission determines that these reports have not been delivered by
the State Treasurer as required by law, the Commission shall notify
in writing the Governor, the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, the
Attorney General, and the State Auditor and Inspector.

SECTION 152. AMENDATORY 62 O.S. 2021, Section 91.5, is
amended to read as follows:

Section 91.5. A. The State Treasurer is hereby authorized to
administer the Oklahoma Rural and Affordable Housing Linked Deposit
Program. The State Treasurer and the certifying agency shall be
exempt from Articles I and II of the Administrative Procedures Act
when taking actions pursuant to this act. The State Treasurer and
the certifying agency are authorized to issue guidelines in a manner
similar to the Administrative Procedures Act, Section 250.1 et seq.
of Title 75 of the Oklahoma Statutes.

B. The certifying agency will develop guidelines which, after
review and approval by the State Treasurer, will address maximum
possible participation amounts per each unit of single-family or
multifamily housing for land acquisition, site development, and
construction, as well as eligibility requirements as to sale or
rental price limitations and type of housing.

C. The State Treasurer shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit an annual report outlining the status of the Oklahoma Rural
and Affordable Housing Linked Deposit Program to the Governor, the
Lieutenant Governor, the President Pro Tempore of the Senate, and
the Speaker of the House of Representatives.

SECTION 153. AMENDATORY 62 O.S. 2021, Section 166d, is
amended to read as follows:

Section 166d. All royalty monies received upon behalf of this
state, any and all bonus monies received upon behalf of this state,
and any and all delay rentals received upon behalf of this state, in

ENR. S. B. NO. 1877 Page 353
connection with or pursuant to the provisions of any oil and gas
lease covering any of the lands occupied by, or assigned to the use
of, the Southern Oklahoma Resource Center of Pauls Valley, entered
into by the Office of Management and Enterprise Services, shall be
deposited in the revolving fund of the Southern Oklahoma Resource
Center of Pauls Valley and shall be expended by said institution in
the same manner that other treasury funds of said institution are
expended as long as the Southern Oklahoma Resource Center of Pauls
Valley remains in operation and for three (3) months thereafter.
Upon expiration of the three (3) months after closure, the revenue
shall be placed in a special agency clearing account to be used for
establishing and maintaining community households for people with
intellectual disabilities served by Developmental Disabilities
Services at the Department of Human Services. The Department of
Human Services shall promulgate rules for the administration of the
fund and specific items allowed. The Department of Human Services
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit an itemized report of
all income and expenditures to the account to the Governor,
President Pro Tempore of the Senate, and Speaker of the House of
Representatives annually.

SECTION 154. AMENDATORY Section 1, Chapter 14, 2nd
Extraordinary Session, O.S.L. 2022 (62 O.S. Supp. 2025, Section
255.1), is amended to read as follows:

Section 255.1. A. Pursuant to the American Rescue Plan Act of
2021 (ARPA), Public Law 117-2, the State of Oklahoma is the
recipient of the federal ARPA funds drawn down by the Office of
Management and Enterprise Services (OMES). The Oklahoma Legislature
shall not be considered a subrecipient of the ARPA funds. The
Office of Management and Enterprise Services shall be the
responsible entity for any claw back penalties, legal, or other
recoupment costs for the state.

B. 1. The Legislature authorizes the Office of Management and
Enterprise Services to manage federal APRA funds by requiring all
receiving entities known as subrecipients to sign a grant agreement.
Any entity, without exception, including state agencies receiving an
appropriation from the Statewide Recovery Fund or a similar fund
with federal requirement attached to its use shall have a fully
executed grant agreement in place within sixty (60) days after

ENR. S. B. NO. 1877 Page 354
enactment of any legislation that appropriates funding from the
Statewide Recovery Fund of the State Treasury created in Section 1,
Chapter 319, O.S.L. 2022, and be in compliance with such agreement
before a disbursement can be made. The mutually agreed upon grant
agreement, as reviewed and approved by the subrecipient’s legal
counsel or advisor, shall be between the Office of Management and
Enterprise Services and the subrecipient. The grant agreement shall
be standard for all receiving entities and shall be executed by an
executive officer of the Office of Management and Enterprise
Services and the subrecipient. The grant agreement shall outline
the disbursement schedule, the subrecipient’s efforts for compliance
with the federal requirements for the use of the funds, including
auditing, reporting, further disbursement, and cash management
procedures as well as compliance with the Oklahoma laws governing
the administration of the subrecipient. The requirements of this
subsection shall also apply when a receiving entity has been
designated as both a pass-through entity and a subrecipient.

2. The Office of Management and Enterprise Services shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically publish a weekly report, to the Chairs
of the Joint Committee on Pandemic Relief Funding and make available
to the public on the state’s website, of the status of all grant
agreements, until such agreements are fully executed.

C. The Office of Management and Enterprise Services shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically provide to 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 ARPA
funds. The quarterly report shall include, but not be limited to,
any impediments to distribution and corrective action necessary.

SECTION 155. AMENDATORY 62 O.S. 2021, Section 690.19, is
amended to read as follows:

Section 690.19. The Oklahoma Department of Commerce shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically produce an annual report by October 15
of each year for the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate
regarding the performance of the zones. Information in the report

ENR. S. B. NO. 1877 Page 355
shall include but not be limited to the amount of tax credits
granted, jobs added, if known, and the impact on unemployment rates
within the zones. The information concerning the tax credits shall
be provided to the Department of Commerce by the Oklahoma Tax
Commission. The report shall include those zones in existence prior
to the passage of this act.

The county commissioners, municipal governing body, or
enterprise district management authority of any enterprise zone, or
enterprise district shall submit to the Department of Commerce the
name and address of the individual in charge of supervising such
enterprise zones by July 1 of each year.

SECTION 156. AMENDATORY 62 O.S. 2021, Section 695.7, is
amended to read as follows:

Section 695.7. A. The State Treasurer shall engage the
services of a person knowledgeable in the current state of the art
of national and international standards for the issuance of
obligations by governmental entities and experienced in the
negotiation of fees for various goods and services requisite to or
deemed desirable in the issuance of such obligations as well as the
negotiation of other matters essential to provide the best current
price and terms of the issuance of such obligations for the benefit
of the State of Oklahoma, who shall have the title “Deputy Treasurer
for Debt Management”.

When hiring a person to the position of Deputy Treasurer for
Debt Management, the State Treasurer shall conduct a national search
in seeking requests for proposals for the position.

B. The State Treasurer may employ the necessary staff to carry
out the duties related to debt management and the Council of Bond
Oversight.

C. 1. Except as provided in Section 695.8 of this title, prior
to engaging the services of underwriters, bond or other legal
counsel, financial advisors, consultants, a financial institution to
serve as trustee, paying agent, or in any fiduciary capacity in
connection with any program, indenture, or general resolution of the
State Governmental Entity, or any other experts, except as provided
in Section 5062.8 of Title 74 of the Oklahoma Statutes, the State

ENR. S. B. NO. 1877 Page 356
Governmental Entity shall, in conjunction with a State Governmental
Entity Financing, request proposals for such services from a
plurality of persons engaged in the particular activity for such
services and the selection of such persons shall be made on the
basis of the response to the request which is the most economical
and will provide competent service which furthers the best interest
of the State Governmental Entity and the state. In negotiating
requests for proposals to engage such services, the State
Governmental Entity shall seek the advice and assistance of the
Deputy Treasurer for Debt Management. Under no circumstances shall
proprietary inducements be granted. The Deputy Treasurer for Debt
Management shall provide assistance and advice to State Governmental
Entities with respect to the issuance of obligations by the State
Governmental Entities, review, negotiate, and approve or disapprove
the fees and expenses for goods and services requisite to or deemed
desirable in the issuance of State Governmental Entity obligations
and State Governmental Entity Financing and shall represent the
interests of the state before rating agencies and credit enhancement
providers.

2. Any State Governmental Entity or Local Governmental Entity
proposing to make a significant modification to the terms of any
State Governmental Entity Financing, including modification of
collateral by substitution, swap, or other derivative product shall
first obtain the written approval of the Deputy Treasurer for Debt
Management. If the Deputy Treasurer for Debt Management denies
approval, the State Governmental Entity or Local Governmental Entity
may request the Council of Bond Oversight to review and approve
proposed modifications.

D. The Deputy Treasurer for Debt Management shall serve as an
advisor to the Governor and to the Legislature with respect to
issuance of indebtedness reviewed by the Council and shall prepare
an annual report to be electronically submitted to the Governor, the
President Pro Tempore of the Senate and the Speaker of the House of
Representatives as of January 15 each year utilizing the centralized
filing system provided for in Section 378 of this act. The report
shall contain a summary of the issuance of indebtedness by State
Governmental Entities during the preceding year.

E. The Deputy Treasurer for Debt Management or any member of
the immediate family of the Deputy Treasurer for Debt Management

ENR. S. B. NO. 1877 Page 357
shall not have any direct or indirect financial or contractual
relationship with any firm or corporation or any officer, partner or
principal stockholder of any firm or corporation directly involved
in public finance.

SECTION 157. AMENDATORY 62 O.S. 2021, Section 847, is
amended to read as follows:

Section 847. A. The Oklahoma Tax Commission shall maintain a
record of state local enterprise matching payments and state local
government matching payments made pursuant to Section 844 of this
title. Local sales taxes apportioned under the applicable project
plan shall be reported, collected, remitted, and disbursed in the
same manner as other local sales taxes under Title 68 of the
Oklahoma Statutes.

B. The Tax Commission shall prepare a report separately
identifying the amounts described in subsection A of this section
and data collection and analysis prepared by the Oklahoma Department
of Commerce pursuant to subsection J of Section 842 of this title.
The Commission shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit the
report prior to April 1 each year to the Governor, the Speaker of
the House of Representatives, and the President Pro Tempore of the
Senate.

SECTION 158. AMENDATORY 62 O.S. 2021, Section 901, as
amended by Section 1, Chapter 439, O.S.L. 2025 (62 O.S. Supp. 2025,
Section 901), is amended to read as follows:

Section 901. A. There is hereby created a Long-Range Capital
Planning Commission to advise and assist the Legislature in
providing for real property capital facility needs for this state.
The Commission shall consist of nine (9) members as follows:

1. Three members appointed by the President Pro Tempore of the
Senate;

2. Three members appointed by the Speaker of the House of
Representatives; and

3. Three members appointed by the Governor.

ENR. S. B. NO. 1877 Page 358

All appointees shall be from the public at large. Within thirty
(30) days of July 1, 2013, the appointing authorities shall appoint
new members to the Commission; provided, a member serving on July 1,
2013, may be reappointed if he or she is otherwise qualified. Of
the members initially appointed by each appointing authority after
July 1, 2013, one shall be appointed for a one-year term, one shall
be appointed for a two-year term and one shall be appointed for a
three-year term. Thereafter, their successors shall be appointed
for four-year terms. Any vacancy shall be filled for the remainder
of the unexpired term in the same manner as the original
appointment. The appointing authorities shall appoint members who
possess knowledge, skills, and abilities to perform the duties of
the Commission. No member of the Commission shall be interested,
directly or indirectly, in any contract entered into for a project
approved by the Commission during the period of service of the
member, nor shall any person be appointed as a member of the
Commission if such person is interested, directly or indirectly, in
a contract entered into for a project approved prior to the
appointment. An indirect interest shall include, but not be limited
to, an interest of an immediate family member of the member of the
Commission or a business with which the member of the Commission is
associated.

B. A chair of the Commission shall be elected from its
membership. Five members of the Commission shall constitute a
quorum. Members of the Commission shall serve without compensation,
but shall be entitled to reimbursement, pursuant to the State Travel
Reimbursement Act, for expenses incurred in the performance of their
duties.

C. Initial appointments to the Commission shall be made within
thirty (30) days of May 28, 1992.

D. The Commission shall have the authority to promulgate rules
and regulations necessary to implement the provisions of the State
Capital Improvement Planning Act.

E. The Office of Management and Enterprise Services, with the
advice and assistance of the Deputy Treasurer for Debt Management,
shall provide staffing for the Commission and other such assistance
as the Commission may require.

ENR. S. B. NO. 1877 Page 359

F. 1. The Commission shall prepare each year an annual capital
plan budget and a state capital plan for addressing state capital
facility needs for the next ensuing eight (8) years. The Oklahoma
State Regents for Higher Education and each state governmental
entity as defined in Section 695.3 of this title shall cooperate
with the Commission in the preparation of the state plan. Each
year, on or about December 1, the plan shall be electronically
submitted to the Governor, Speaker of the House of Representatives
and President Pro Tempore of the Senate utilizing the centralized
filing system provided for in Section 378 of this act. The Long-
Range Capital Planning Commission shall annually update the eight-
year plan. The Office of Management and Enterprise Services shall
perform routine services to support the eight-year plan, including,
but not limited to, agency-level planning, real estate services,
construction services, and facility operations as provided by law.

2. In addition to the requirements set forth in Section 901.1
of this title, the capital plan should:

a. supplement and integrate, not replace, existing
capital planning processes,

b. assess long-term needs for capital facilities to
support state government needs as determined by the
Commission,

c. review and assess the inventory of capital facilities
held by the state, and make recommendations on
reallocation, reuse or liquidation of properties for
incorporation into the annual capital plan,

d. include a projection of economic and demographic
trends likely to influence the needs of state
government during the eight-year period,

e. address agency strategic facility plans for new,
improved, renovated, or expanded capital facilities or
facilities that should be reallocated or liquidated,

f. include estimates of life cycle costs for new and
substantially expanded or renovated facilities,

ENR. S. B. NO. 1877 Page 360

g. evaluate the effectiveness of planning processes at
the agency level to account for all capital facility
costs for incorporation into the annual capital
budget,

h. account for projections of debt service and revenues
available from general obligation bonds and other
sources, including, but not limited to, the
Maintenance of State Buildings Revolving Fund,

i. analyze the capacity of the state to incur debt or
finance public capital facilities,

j. include a comprehensive listing of all capital
expenditures of the state which the Commission
recommends be undertaken or continued for any state
agency in the next two (2) fiscal years, together with
information as to the effect of such capital projects
on future operating expenses of the state, and with
recommendations as to the priority of such capital
projects and the means of funding them,

k. forecast the requirements for capital projects of
state agencies for the eight-year period and for such
additional periods, if any, as may be necessary or
desirable for adequate presentation of particular
capital projects, and include a schedule for the
planning and implementation or construction of such
capital projects,

l. set forth a proposed itemized budget for the next
fiscal year of recommended capital expenditures
inclusive of all funding sources, for each agency,
including facility rent and lease payments, energy and
utility expenditures, operations and maintenance,
capital improvements and capital development projects
as necessary to optimize and preserve the state’s
capital assets,

m. include the findings of the Oklahoma State Government
Asset Reduction and Cost Savings Program and the

ENR. S. B. NO. 1877 Page 361
indexing of the most necessary capital improvements to
the expenditure of funds from the Maintenance of State
Buildings Revolving Fund,

n. include such other information as the Commission deems
relevant to its duties, and

o. include findings of the Oklahoma State Government
Asset Reduction and Cost Savings Program and the
indexing of the most necessary capital improvements to
the expenditure of funds from the Maintenance of State
Buildings Revolving Fund.

G. The capital plan budget shall include, for each expenditure
and class of expenditures, the capital facility costs to be incurred
during the next ensuing fiscal year, inclusive of the annual
operating and maintenance costs of such facilities and a schedule of
depreciation calculated in accordance with the principles and
standards of capital budgeting authorized by subsection H of this
section.

H. The Commission, with the assistance of the Office of
Management and Enterprise Services, shall prepare and publish rules
and regulations that set forth principles and standards for capital
planning and budgeting to be used by state agencies. The rules and
regulations shall set forth definitions of relevant terms to be used
in the capital planning and budgeting processes, establish
accounting standards, and standards for costs and benefits of public
facility investments.

I. 1. The Commission, the Office of Management and Enterprise
Services, and the Deputy Treasurer for Debt Management may request
the assistance of such personnel of any state agency in order to
perform their duties pursuant to the State Capital Improvement
Planning Act and such agencies shall respond and provide any such
assistance as may be required. The Commission may use existing
studies, surveys, plans, data, and other materials in the possession
of any state agency. Each such agency shall make the same available
to the Commission so that the Commission may have available to it
current information with respect to the capital plans and programs
of each such agency.

ENR. S. B. NO. 1877 Page 362
2. The officers and personnel of any state agency may serve at
the request of the Commission upon such advisory committees as the
Commission may create and such officers and personnel may serve upon
such committees without forfeiture of office or employment and with
no loss or diminution of the compensation, status, rights, and
privileges which they otherwise enjoy.

J. This section shall not be applicable to the following or
their lands, properties, buildings, funds, or revenue:

1. The Oklahoma Ordnance Works Authority; and

2. The Commissioners of the Land Office.

K. The Commission shall develop plans, adopt authorizations,
and fulfill the duties required pursuant to Section 188A of Title 73
of the Oklahoma Statutes.

SECTION 159. AMENDATORY 62 O.S. 2021, Section 901.1, is
amended to read as follows:

Section 901.1. A. The Long-Range Capital Planning Commission
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit an itemized list of
the proposed projects set forth in its annual capital plan to the
Governor, the President Pro Tempore of the Senate, and the Speaker
of the House of Representatives within the first seven (7)
legislative days of a regular legislative session. The list shall
be in the order of the priority of the projects as determined by the
Commission. The submission to such elected officials shall occur
upon the same date for purposes of computing the time within which
action must shall be taken as further prescribed by this subsection.
The Legislature shall have a period of forty-five (45) calendar days
from the date on which the list is submitted to pass a concurrent
resolution disapproving any or all of the proposed projects. If the
Legislature does not disapprove any proposed project by concurrent
resolution by the end of the forty-fifth day following the date upon
which the proposed issuance is submitted, the proposed projects
shall be deemed to have been approved by the Legislature.

B. Upon approval of all or any part of the list of proposed
projects, the Office of Management and Enterprise Services may

ENR. S. B. NO. 1877 Page 363
expend funds in the Maintenance of State Buildings Revolving Fund
for approved projects in the order of priority set forth in its
annual capital plan.

C. In the event an emergency has been declared as provided for
in Section 130 of Title 61 of the Oklahoma Statutes, and as a result
thereof, repair or maintenance of a capital facility held by the
state is required, a state agency may submit a request to the
Director of the Office of Management and Enterprise Services to
substitute the emergency project for any other project or projects
of the state agency on the approved current fiscal year’s Capital
Improvement Plan list, or to add the emergency project if the state
agency does not have any projects on the approved current fiscal
year’s Capital Improvement Plan list; provided:

1. The Director determines that there are funds available in
the Maintenance of State Buildings Revolving Fund to cover all or
part of the cost of the emergency project; and

2. The Director, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submits
information on the emergency project and the cost thereof to the
President Pro Tempore of the Senate and the Speaker of the House of
Representatives and they approve the substitution within five (5)
calendar days of such submission.

D. The Director has authority to redirect funds within the
Maintenance of State Buildings Revolving Fund for emergency projects
approved by the President Pro Tempore of the Senate and the Speaker
of the House of Representatives.

SECTION 160. AMENDATORY 62 O.S. 2021, Section 2309, is
amended to read as follows:

Section 2309. A. The Board of Directors of the Tobacco
Settlement Endowment Trust Fund shall be empowered to:

1. Appoint an executive director and other staff necessary to
perform the duties of the Board of Directors;

ENR. S. B. NO. 1877 Page 364
2. Make and execute contracts and other instruments necessary
or convenient to the exercise of its powers on such terms and for
such period of time as the Board of Directors shall determine; and

3. Promulgate rules in accordance with the Administrative
Procedures Act and not inconsistent with the Tobacco Settlement
Endowment Trust Fund Act to implement its duties and
responsibilities as provided by law.

B. Funding for capital expenditures and operating expenses
incurred by the University of Oklahoma Health Sciences Center and
the Oklahoma State University College of Osteopathic Medicine, for
educational programs and residency training to maintain or improve
the health of Oklahomans or to enhance the provision of health care
services to Oklahomans, is hereby deemed to be an allowable purpose
for which earnings from the trust fund may be expended pursuant to
the provisions of paragraph 3 of subsection E of Section 40 of
Article X of the Oklahoma Constitution. Pursuant to its authority
as set forth in subsection G of Section 40 of Article X of the
Oklahoma Constitution, the Legislature hereby authorizes the Board
to expend earnings from the trust fund for such purposes, in
addition to other purposes provided by law.

C. The Board shall develop a multiyear strategy by January 1,
2002, and annually update it in order to guide the Board’s funding
for those programs set forth in Section 40 of Article X of the
Oklahoma Constitution. The strategy shall be used to maximize the
outcomes of the grants awarded by the Board of Directors.

D. The Board of Directors shall develop grant programs for
private, nonprofit, and public entities for the purposes set forth
in Section 40 of Article X of the Oklahoma Constitution.

1. The selection and awarding of grants, whether in the form of
professional service contracts or any other funding mechanism
developed by the Board of Directors, awarded pursuant to grant
programs developed under this subsection, shall be exempt from the
requirements of The Oklahoma Central Purchasing Act.

2. The Board of Directors shall develop competitive processes
for awarding grants under programs developed under this subsection.
Such competitive processes for selection shall not be required for

ENR. S. B. NO. 1877 Page 365
contracts awarded for program support services, including, but not
limited to, professional service contracts to evaluate, audit or
provide budgeting, accounting, auditing, or legal services for
specific programs or program grantees, contractors, or participants.

3. The Board of Directors may promulgate rules to assist in the
implementation and administration of grant programs developed under
this subsection.

4. The terms of any request for proposals, request for
applications, invitation for bid, bid notice, or grant proposal or
any other solicitation issued by the Board of Directors to solicit
or invite applications, proposals, bids, or responses to obtain
funding under grant programs developed under this subsection shall
be confidential until the date and time at which the solicitation is
to be made equally and uniformly known to all prospective applicants
and the public, at which point all such documents and information
shall be uniformly known to all prospective applicants and the
public, at which point all such documents and information shall be
subject to the Oklahoma Open Records Act and Oklahoma Open Meeting
Act. Any application, proposal, bid, or any other document to
obtain funding responsive to any solicitation of the Board of
Directors under grant programs developed under this subsection shall
be confidential until the date and time of award of the grant or
contract, at which point all such documents and information shall be
subject to the Oklahoma Open Records Act and Oklahoma Open Meeting
Act. Any unsolicited application, proposal, bid, or any other
document to obtain funding shall not be considered to be
confidential and shall be subject to the Oklahoma Open Records Act
and Oklahoma Open Meeting Act at all times.

E. The Board of Directors shall encourage grantees to match
grant monies awarded with monetary commitments and in-kind matches.

F. The Board of Directors shall be required to develop a
performance evaluation component for the Board of Directors’
activities and those of its grantees so that the performance of
grantees can be measured by their attainment of outcomes.

G. The Board of Directors shall contract periodically for
performance evaluations. Copies of the evaluations shall be filed

ENR. S. B. NO. 1877 Page 366
with the Governor, the Speaker of the House of Representatives, and
the President Pro Tempore of the Senate.

H. The Board of Directors shall prepare an annual report
detailing the Board of Directors’ activities and reporting its
expenditures and the outcomes achieved by the expenditures. A copy
of the report shall be electronically submitted to the Governor, the
Speaker of the House of Representatives, and the President Pro
Tempore of the Senate utilizing the centralized filing system
provided for in Section 378 of this act.

I. All records associated with the expenditure of monies
received by the Board of Directors or its grantees pursuant to the
Tobacco Settlement Endowment Trust Fund Act shall be subject to the
Oklahoma Open Records Act.

SECTION 161. AMENDATORY 62 O.S. 2021, Section 7004, as
amended by Section 2, Chapter 125, O.S.L. 2023 (62 O.S. Supp. 2025,
Section 7004), is amended to read as follows:

Section 7004. A. For calendar years 2024 through 2027 and
every four (4) years thereafter, the Incentive Evaluation Commission
shall ensure that each incentive is evaluated within the four-year
evaluation period unless the Commission determines that the
incentive is exempt from evaluation. The Commission may exempt from
evaluation any incentive that it concludes has a minimal fiscal
impact. The Commission shall determine a specific threshold amount
which shall be considered as a minimal fiscal impact for the current
evaluation cycle. The Commission may also conduct an expedited
evaluation for any incentive that has been evaluated at least two
times from calendar years 2016 through 2023 and has not had a
material change to the program since its prior evaluation. The
expedited evaluation will update the prior evaluation’s financial
and economic impact and findings and recommendations.

B. For calendar years 2016 through 2023, the Incentive
Evaluation Commission shall develop a four-year schedule for
evaluating incentives. The development of the schedule for
evaluating the incentives shall take into consideration fiscal
impacts to revenues of this state, including but not limited to the
General Revenue Fund, the opportunity to group incentives with
similar goals and objectives for evaluation, and the ability to

ENR. S. B. NO. 1877 Page 367
obtain sufficient data related to the incentives for evaluation.
Each schedule shall include a list of all incentives in the state,
including any it exempts from evaluation. In determining whether a
program is an incentive, the Incentive Evaluation Commission may
consider legislative intent and may also consider whether the
program is promoted as an incentive by any state agency. For each
incentive listed in the schedule, the Commission shall attempt to
identify the goal or goals of the incentive.

C. Upon approval of the schedule, the Commission shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically provide the schedule to the Governor,
President Pro Tempore of the Senate, and Speaker of the House of
Representatives.

SECTION 162. AMENDATORY 62 O.S. 2021, Section 7005, as
amended by Section 3, Chapter 125, O.S.L. 2023 (62 O.S. Supp. 2025,
Section 7005), is amended to read as follows:

Section 7005. A. The Commission may contract with a private
company, nonprofit, or academic institution to assist with
evaluation of each incentive. The Commission shall develop a scope
of services for a request for proposals issued pursuant to the
Oklahoma Central Purchasing Act, Section 85.1 et seq. of Title 74 of
the Oklahoma Statutes, for professional services necessary to
complete incentive evaluations pursuant to the Incentive Evaluation
Act. The scope of services shall include a provision requiring the
contractor to provide at least one draft report for each incentive
prior to the issuance of the final report; provided, the contractor
may determine the timing and frequency of draft reports based on the
availability of information and the potential for draft reports to
assist the Commission in making a final recommendation. The cost of
such contract shall be paid by the Office of Management and
Enterprise Services. No recipient or potential recipient of an
incentive or representative of a recipient or potential recipient
shall contact the entity or individual with whom the Commission
contracts pursuant to this subsection unless the entity or
individual specifically requests information or documentation for
purposes of the incentive evaluation process; provided, this shall
not be construed to prevent participation in a public hearing
conducted pursuant to subsection B of this section.

ENR. S. B. NO. 1877 Page 368
B. By October 1 of each year beginning in calendar year 2023,
the Commission or the Commission’s chosen contractor shall evaluate
each incentive scheduled for review that year. The Commission or
the Commission’s chosen contractor shall conduct each incentive
evaluation in consultation with the Oklahoma Department of Commerce
division of Research and Economic Analysis Services using criteria
developed pursuant to subsection D of this section. Between October
1 and November 30 of each year beginning in 2017, the Commission
shall hold at least one public meeting to review, allow for public
comment, and vote to approve, disapprove, or modify each incentive
evaluation conducted that year. By December 15 of each year
beginning in 2016, the Commission shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically provide the results of each incentive evaluation, a
review of prior Commission recommendations, and changes to statute
or incentive administration related to incentive evaluation
recommendations in a written report to the Governor, President Pro
Tempore of the Senate, and Speaker of the House of Representatives.
If the Commission votes to modify an incentive evaluation as
provided in this subsection, such modification and the original
evaluation shall be documented in the annual written report. The
report shall be made publicly available on the Oklahoma Department
of Commerce website, the Commission website, and documents.ok.gov.

C. Each evaluation shall include the following:

1. An estimate of the economic and fiscal impact of the
incentive. This estimate shall take into account the following
considerations in addition to other relevant factors:

a. the extent to which the incentive changes business
behavior,

b. the results of the incentive for the economy of
Oklahoma as a whole. This consideration includes both
positive direct and indirect impacts and any negative
effects on other Oklahoma businesses, and

c. a comparison to the results of other incentives or
other economic development strategies with similar
goals;

ENR. S. B. NO. 1877 Page 369
2. An assessment of whether adequate protections are in place
to ensure the fiscal impact of the incentive does not increase
substantially beyond the state’s expectations in future years;

3. An assessment of whether the incentive is being administered
effectively;

4. An assessment of whether the incentive is achieving its
goals;

5. Recommendations for how the state can most effectively
achieve the incentive’s goals, including recommendations on whether
the incentive should be retained, reconfigured, or repealed; and

6. Recommendations for any changes to state policy, rules, or
statutes that would allow the incentive to be more easily or
conclusively evaluated in the future. These recommendations may
include changes to collection, reporting, and sharing of data, and
revisions or clarifications to the goal of the incentive.

D. Evaluation criteria shall be developed for each incentive
evaluated by the Commission. Each incentive shall be evaluated
using criteria specific to the individual incentive. The criteria
shall be developed by the Commission through the administrative
rulemaking process pursuant to the Administrative Procedures Act,
Section 250 et seq. of Title 75 of the Oklahoma Statutes, and
codified in the administrative code of the Oklahoma Department of
Commerce.

E. At the request of the Incentive Evaluation Commission,
unless prohibited by the Oklahoma Constitution, Oklahoma Statutes,
or federal law, state agencies shall provide any records,
information, data, or data analysis necessary for the Commission or
contractors to effectively evaluate incentives. The Commission and
contractors shall not disclose or release any data received from
other state agencies, except as permitted under law.

SECTION 163. AMENDATORY 62 O.S. 2021, Section 9010.4, is
amended to read as follows:

Section 9010.4. A. An agency or agencies may enter into a pay-
for-success contract with a private entity or entities to receive

ENR. S. B. NO. 1877 Page 370
up-front capital to fund a service or program. The agency or
agencies may not enter into a pay-for-success contract until each
state agency head entering into the contract determines with
reasonable certainty that the contract will result in a public
benefit to the state.

B. Each pay-for-success contract shall:

1. Require a private entity to underwrite or secure up-front
capital from private funding sources, including foundations,
financial institutions, businesses, or individuals;

2. Identify the specific service or program to be funded under
the contract;

3. Identify performance targets and outcome measures against
which the service or program’s success can be measured to determine
whether the service or program has achieved quantifiable public
benefits or monetary savings;

4. Require and specify an independent third-party evaluator to
review and issue reports annually at specific times during the
contract term specifying the degree to which the service or program
has met the identified performance targets and outcome measures
specified in the contract;

5. Identify the calculation or algorithm to be used by the
agency or agencies in determining the amount and timing of
reimbursable success payments to the private entity;

6. Contain a statement that the independent third-party
evaluator will annually provide a report to the agency or agencies
that includes data deemed relevant by the agency or agencies; and

7. State that the amount of funds to be reimbursed to the
private entity is contingent upon the degree to which the service or
program has met the performance targets and outcome measures as
evaluated by the independent third-party evaluator.

C. No later than April 1 annually, the agency or agencies
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically provide a report to the

ENR. S. B. NO. 1877 Page 371
chairs of the legislative appropriations committees that contains
the evaluation from the independent third-party evaluator.

D. Payments to private entities for the delivery of performance
targets and outcome measures as authorized in this section shall be
made only in accordance with the terms of the pay-for-success
contract. Payments may be made utilizing the Pay for Success
Innovation Fund created in Section 5 of this act or utilizing other
appropriated agency funds in accordance with Oklahoma law.

SECTION 164. AMENDATORY 63 O.S. 2021, Section 1-110.1,
is amended to read as follows:

Section 1-110.1. A. There is hereby created in the State
Treasury a revolving fund for the State Department of Health to be
designated the “Children First Fund”. The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies deposited to the credit of the fund by law.
All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the State
Department of Health for operation of Children First family resource
programs. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.

B. The State Department of Health shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit to the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, and the
Governor by January 15 of each year, an annual report, including a
full accounting of administrative expenditures from the fund for the
prior fiscal year, and a summary detailing the demographic
characteristics of families served including, but not limited to,
the following:

1. Age and marital status of parent(s);

2. Household composition of families served;

3. Number of families accepted into the program, by location,
and average length of time enrolled;

ENR. S. B. NO. 1877 Page 372

4. Referrals made on behalf of families not accepted into the
program; and

5. Average actual expenditures per child during the most recent
state fiscal year.

C. Projects shall comply with the uniform components of the
State Plan for the Prevention of Child Abuse.

D. The Department shall forward to the Oklahoma Health Care
Authority a report of the total number of hours of nursing services
provided to families under Children First family resource programs.
The Oklahoma Health Care Authority shall submit such information to
the Centers for Medicaid and Medicare Services for purposes of
applying for federal matching funds and shall submit any necessary
applications for waivers to accomplish the provisions of this
subsection.

E. The State Department of Health shall contract with a
university-related program for a performance-based evaluation of
programs. Program sites shall fully cooperate and comply with the
evaluation process, and sites shall provide weekly caseload and
referral information to the State Department of Health.

SECTION 165. AMENDATORY Section 2, Chapter 439, O.S.L.
2024 (63 O.S. Supp. 2025, Section 1-114.22), is amended to read as
follows:

Section 1-114.22. A. The State Department of Health may award
grants to public schools from the Public School Vision Screening
Modernization Revolving Fund created in Section 1 of this act for
the purpose of assisting public schools in obtaining vision
screening equipment, collecting vision screening data, and obtaining
related services to fulfill the requirements of Section 1210.284 of
Title 70 of the Oklahoma Statutes.

B. The State Department of Health shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit an annual report on all grants awarded under
this section to the President Pro Tempore of the Senate, the Speaker

ENR. S. B. NO. 1877 Page 373
of the House of Representatives, and the Governor by January 15 of
each year.

SECTION 166. AMENDATORY 63 O.S. 2021, Section 1-227.2,
is amended to read as follows:

Section 1-227.2. A. The Office of Child Abuse Prevention,
giving consideration to the recommendations of the Infant and
Children’s Health Advisory Council created in Section 1-103a.1 of
this title, is hereby authorized and directed to:

1. Prepare and implement a comprehensive state plan for the
planning and coordination of child abuse prevention programs and
services and for the establishment, development and funding of such
programs and services, and to revise and update the plan pursuant to
the provisions of Section 1-227.3 of this title;

2. Monitor, evaluate, and review the development and quality of
services and programs for the prevention of child abuse and neglect,
publish and, utilizing the centralized filing system provided for in
Section 378 of this act, electronically distribute an annual report
of its findings on or before January 1 of each year to the Governor,
the Speaker of the House of Representatives, the President Pro
Tempore of the Senate, and to the chief administrative officer of
each agency affected by the report. The report shall include:

a. activities of the Office,

b. a summary detailing the demographic characteristics of
families served including, but not limited to, the
following:

(1) age and marital status of parent(s),

(2) number and age of children living in the
household,

(3) household composition of families served,

(4) number of families accepted into the program by
grantee site and average length of time enrolled,

ENR. S. B. NO. 1877 Page 374
(5) number of families not accepted into the program
and the reason therefor,

(6) average actual expenditures per family during the
most recent state fiscal year, and

(7) number of individuals whose parental rights have
ever been terminated and number of children born
to an individual whose parental rights have ever
been terminated,

c. recommendations for the further development and
improvement of services and programs for the
prevention of child abuse and neglect,

d. budget and program needs, and

e. statistics developed based on the reports received
pursuant to Section 3 of this act; and

3. Conduct or otherwise provide for or make available
continuing professional education and training in the area of child
abuse prevention.

B. For the purpose of implementing the provisions of the Child
Abuse Prevention Act, the State Department of Health is authorized
to:

1. Accept appropriations, gifts, loans and grants from the
state and federal government and from other sources, public or
private;

2. Enter into agreements or contracts for the establishment and
development of:

a. programs and services for the prevention of child
abuse and neglect,

b. training programs for the prevention of child abuse
and neglect, and

ENR. S. B. NO. 1877 Page 375
c. multidisciplinary and discipline specific training
programs for professionals with responsibilities
affecting children, youth and families; and

3. Secure necessary statistical, technical, administrative and
operational services by interagency agreement or contract.

C. For the purpose of implementing the provisions of the Child
Abuse Prevention Act, the State Commissioner of Health, giving
consideration to the recommendations of the Infant and Children’s
Health Advisory Council created in Section 1-103a.1 of this title,
is authorized to promulgate rules and regulations as necessary to
implement the duties and responsibilities assigned to the Office of
Child Abuse Prevention.

D. 1. The Department of Human Services shall, as soon as
reasonably possible, provide the State Department of Health access
to the identifying information of all individuals who, as to any
child, have had their parental rights terminated and the conditions
which led to the making of the finding which resulted in the
termination of parental rights.

2. The Division of Vital Records shall provide birth record
information to the Office of Child Abuse Prevention for a child born
to an individual whose identifying information has been provided
pursuant to paragraph 1 of this subsection.

3. The Office of Child Abuse Prevention or other appropriate
division of the State Department of Health shall review the
information provided by the Department of Human Services and the
Division of Vital Records and, when appropriate and if the resources
are available, provide an assessment of the family and offer
services if needed.

SECTION 167. AMENDATORY 63 O.S. 2021, Section 1-227.3,
is amended to read as follows:

Section 1-227.3. A. The Oklahoma Commission on Children and
Youth shall review and approve the comprehensive state plan and any
subsequent revisions of said such plan, prior to the submission of
the plan as provided in this section.

ENR. S. B. NO. 1877 Page 376
B. On or before July 1, 2007, the Oklahoma Commission on
Children and Youth shall deliver the comprehensive state plan for
the prevention of child abuse and neglect to the Governor, the
President Pro Tempore of the Senate, and the Speaker of the House of
Representatives. The plan shall include but not be limited to:

1. Specific proposals for the implementation of the
comprehensive state plan which would promote the efficient use of
staff, funds and other resources on the state level and improve the
coordination and integration of state goals, activities, and funds
for the prevention of child abuse and neglect, particularly with
regard to primary and secondary prevention of child abuse and
neglect; and

2. Specific proposals detailing the interagency provision of
services to all populations at risk of committing child abuse.
Services, especially those directed at high-risk populations
including, but not limited to, those populations in which parental
drug and/or or alcohol abuse, mental illness, and domestic abuse are
an issue, shall be specifically addressed.

C. The Office of Child Abuse Prevention and the Oklahoma
Commission on Children and Youth shall at least annually review the
state plan and make any necessary revisions based on changing needs
and program evaluation results not less than every five (5) years.
Any such revisions shall be electronically delivered to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate no later than July 1 of each
year utilizing the centralized filing system provided for in Section
378 of this act.

D. The Office of Child Abuse Prevention shall provide adequate
opportunity for appropriate private and public agencies and
organizations and private citizens and consumers to participate at
the local level in the development of the state plan.

SECTION 168. AMENDATORY 63 O.S. 2021, Section 1-229.8,
is amended to read as follows:

Section 1-229.8. A. As a condition to the receipt of funds
under this act, a contractor shall agree to file a report with the

ENR. S. B. NO. 1877 Page 377
State Department of Health on or before ninety (90) days after the
end of the agreement period as to the following:

1. Amount received as a contract and the expenditures made with
the proceeds of the contract;

2. A description of the program offered and the number of
individuals who initially participated in and completed the program;
and

3. Specific elements of the program meeting the criteria set
forth in the State Plan.

B. Any contractor failing to timely file the report required
pursuant to this section shall be subject to the jurisdiction of the
Attorney General for repayment of the full amount of the contract
expended.

C. The State Department of Health shall review and evaluate the
reports of contractors required pursuant to this section and shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically file a written report with the Speaker
of the House of Representatives, the President Pro Tempore of the
Senate, and the Governor on or before February 1 of each year on the
status of the Tobacco Use Reduction Fund and the activities of the
Fund for the fiscal year most recently ended. The report shall
include the beginning and ending balance of the Fund for each fiscal
year, payments or gifts received by the Fund, income earned and
expenditures made, the name of each contractor and the amount of
each contract made, the criteria used to award each contract, and
whether the program implemented by each contractor met the criteria.
The report shall be publicly available immediately upon its filing.

SECTION 169. AMENDATORY 63 O.S. 2021, Section 1-237, is
amended to read as follows:

Section 1-237. 1. The Governor shall appoint an Interagency
Coordinating Council for Coordination of Efforts for Prevention of
Adolescent Pregnancy and Sexually Transmitted Diseases which shall
be composed of thirty-one (31) members as follows:

ENR. S. B. NO. 1877 Page 378
a. the chief executive officers or their designees of
the:

(1) Commission on Children and Youth,

(2) State Department of Education,

(3) Oklahoma Department of Career and Technology
Education,

(4) Department of Human Services,

(5) Department of Mental Health and Substance Abuse
Services,

(6) Office of Volunteerism,

(7) State Department of Health, and

(8) College of Public Health,

b. the Executive Director of the Office of Juvenile
Affairs or designee,

c. two representatives from the Maternal and Infant
Health Division, two representatives from the HIV/STD
Division, two representatives from the Child Health
and Guidance Division of the State Department of
Health,

d. a superintendent of an independent school district,

e. a representative of a statewide association of medical
doctors,

f. a representative of a statewide association of
osteopathic physicians,

g. a representative of a statewide association of parents
and teachers,

ENR. S. B. NO. 1877 Page 379
h. a representative of a statewide association of
classroom teachers,

i. a representative of a statewide association of school
counselors,

j. a principal of an alternative education program,

k. a representative of business or industry,

l. a representative of a statewide association formed for
the purpose of developing leadership skills,

m. a representative of an ecumenical association,

n. two parents of ten- to twenty-year-old children,

o. a teenage girl,

p. a representative of a nonprofit statewide child
advocacy organization, and

q. the Governor or the Governor’s designee, who shall
chair the Coordinating Council.

Legal assistance shall be provided by the Office of the Attorney
General. Staff support and assistance shall be provided by the
State Department of Health as the legal agency.

2. The Coordinating Council shall:

a. on or before December 1, 1994, complete the State Plan
pursuant to the provisions of Section 1-238 of this
title and present it to the Committee for approval,
and

b. after approval of the State Plan, monitor
implementation of the plan, evaluate the plan, meet
with the Committee concerning revisions whenever
requested to do so, and on or before November 1, 1995,
and November 1 of each subsequent year, electronically
submit a report on the implementation and evaluation

ENR. S. B. NO. 1877 Page 380
of the State Plan to the Governor, the President Pro
Tempore of the Senate and the Speaker of the House of
Representatives utilizing the centralized filing
system provided for in Section 378 of this act.

SECTION 170. AMENDATORY 63 O.S. 2021, Section 1-238, is
amended to read as follows:

Section 1-238. A. The State Plan for Coordination of Efforts
for Prevention of Adolescent Pregnancy and Sexually Transmitted
Diseases shall include but not necessarily be limited to:

1. A statewide public awareness campaign which extols the
virtue of abstaining from premarital sexual activity. Said public
awareness campaign shall not directly or indirectly condone
premarital or promiscuous sexual activity;

2. Identification of effective prevention strategies;

3. Identification of resources, both within the agencies
subject to the provisions of this act and within the communities;

4. Identification of sources of revenue for programs and
efforts from private as well as federal and state sources;

5. Development and replication of effective model programs;

6. Empowerment of communities in developing local prevention
strategies;

7. Development of recommendations for local prevention efforts
and technical assistance to communities;

8. Delineation of service responsibilities and coordination of
delivery of services by the agencies subject to the provisions of
this act;

9. Coordination and collaboration among related efforts and
programs;

10. Evaluation of prevention strategies and programs;

ENR. S. B. NO. 1877 Page 381
11. Distribution of information on prevention programs and
strategies; and

12. A funding and implementation plan which shall provide for
utilization of identifiable financial resources from federal, state,
local, and private resources and coordination of those resources to
fund related services.

B. On or before July 1, 1995, the agencies subject to the
provisions of this act shall enter into interagency agreements for
the purpose of implementing the State Plan.

C. On or before September 1, 1995, and each September 1
thereafter, a joint funding plan shall be electronically submitted
to the Governor, the President Pro Tempore of the Senate, and the
Speaker of the House of Representatives by the agencies subject to
the provisions of this act utilizing the centralized filing system
provided for in Section 378 of this act. The individual components
of the plan as they relate to individual agencies shall be
incorporated annually into each affected agency’s budget request in
accordance with the provisions of Section 41.29 of Title 62 of the
Oklahoma Statutes.

SECTION 171. AMENDATORY 63 O.S. 2021, Section 1-270.2,
as amended by Section 1, Chapter 111, O.S.L. 2024 (63 O.S. Supp.
2025, Section 1-270.2), is amended to read as follows:

Section 1-270.2. A. For the purposes of the Advancement in
Stem Cell Cures and Therapies Act, “human embryo” means a living
organism of the species Homo sapiens at the earliest stage of
development, including the single-cell stage, that is not located in
the body of a woman.

B. Research on human tissue regeneration and human diseases
using adult stem cells and stem cells obtained from umbilical cord
blood and amniotic fluid may be conducted in this state, provided
that the research is performed:

1. Safely and ethically;

ENR. S. B. NO. 1877 Page 382
2. Only on embryonic stem cell lines created prior to August 1,
2001, and in accordance with federal law as it existed on November
1, 2007; and

3. Without the use of a human embryo, including a human embryo
produced using cloning technology.

C. When research is performed in accordance with the
Advancement in Stem Cell Cures and Therapies Act, a person or
governmental body shall not:

1. Restrict public funds designated for the stem cell research;
or

2. Obstruct or provide disincentives for the stem cell
research.

D. The State Department of Health shall establish a reporting
system that collects information regarding all activities carried
out in accordance with this section.

E. The Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit a report with all information collected pursuant to
subsection D of this section to the Governor, the Speaker of the
Oklahoma House of Representatives, and the President Pro Tempore of
the Oklahoma State Senate no later than December 31 of each year.

F. Provided that there is no stem cell research to report that
year, the Department does not need to file a report.

SECTION 172. AMENDATORY 63 O.S. 2021, Section 1-534.1,
is amended to read as follows:

Section 1-534.1. A. The State Department of Health shall be
the lead agency for the coordination of programs and services
related to the Human Immunodeficiency Virus (HIV).

B. On or before January 1, 1994, the State Department of Health
shall submit a State Plan for the Prevention and Treatment of
Acquired Immune Deficiency Syndrome (AIDS) to the Governor, the
President Pro Tempore of the Oklahoma State Senate, the Speaker of

ENR. S. B. NO. 1877 Page 383
the Oklahoma House of Representatives, the chairmen of the
appropriate committees of the Senate and the House of
Representatives, and the chief executive officer and members of the
governing bodies of each agency affected by the State Plan. Copies
of the State Plan for the Prevention and Treatment of AIDS shall be
available to members of the Oklahoma Legislature and the general
public upon request.

C. The State Plan for the Prevention and Treatment of AIDS
shall be prepared jointly by the State Department of Health, the
Department of Human Services, the State Department of Education, and
the Department of Mental Health and Substance Abuse Services in
collaboration with other appropriate public and private agencies and
organizations.

SECTION 173. AMENDATORY 63 O.S. 2021, Section 1-550.3,
is amended to read as follows:

Section 1-550.3. A. The Department of Human Services shall
establish and maintain an up-to-date Record of Infants Born Exposed
to Alcohol and Other Harmful Substances. Such record shall include
data necessary for surveys and scientific research, and other data
which is necessary and proper to further the recognition, prevention
and treatment of infants born addicted to or prenatally exposed to
harmful substances and shall be based upon information collected by
the Department as a result of investigations made pursuant to
Section 7103 of Title 10 of the Oklahoma Statutes. For purposes of
this section, “harmful substances” means an intoxicating liquor or a
controlled dangerous substance.

B. The Record of Infants Born Exposed to Alcohol and Other
Harmful Substances shall include, but not be limited to, the
following information:

1. The classification of the birth hospital, whether it is
public or private;

2. Results of the toxicology report on an infant and its mother
and, if positive, the type of drug or drugs involved;

3. The date of birth, birth weight, gestational age and race of
the infant;

ENR. S. B. NO. 1877 Page 384

4. The county of residence;

5. The date and county of report;

6. Demographic information on the mother including, but not
limited to, age, race, education level, marital status, income
level, whether prenatal care was received and the type of prenatal
care received, whether it was private, public health clinic, or
hospital clinic;

7. Type of treatment, whether the mother was referred for
inpatient or outpatient; and

8. Whether the child was recommended for removal from custody
of the parent.

C. Nothing in this section shall be construed to compel any
infant or mother reported pursuant to the provisions of this act to
submit to any medical examination, treatment, or supervision of any
kind.

D. The Commission for Human Services shall promulgate rules to
carry out the provisions of this section and the Department of Human
Services shall adopt agency policy directing employees of the Child
Welfare Division within the Department of Human Services to collect
and compile any and all data and information gathered from
investigations made pursuant to Section 7103 of Title 10 of the
Oklahoma Statutes necessary for the purposes of this section.

E. The Department of Human Services shall compile and evaluate
information received from the reports required pursuant to this
section into a report to be electronically distributed on or before
January 1 of each year to the Governor, the President Pro Tempore of
the Senate, the Speaker of the House of Representatives, and such
other persons as the Department deems advisable or necessary
utilizing the centralized filing system provided for in Section 378
of this act.

SECTION 174. AMENDATORY 63 O.S. 2021, Section 1-552, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 385
Section 1-552. A. The State Department of Health shall make
such investigations concerning birth defects and cancer, the
prevention and treatment of said diseases or impairments and the
mortality resulting from them, and take such action to assist in
reducing said mortality as it deems necessary and appropriate.

B. The State Department of Health shall compile and evaluate
information received from the reports required pursuant to Sections
1 and 2 of this act and subsection A of this section in a report to
be electronically distributed on or before January 1 of each year to
the Governor, the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, and to such other person as the
Commissioner deems advisable or necessary utilizing the centralized
filing system provided for in Section 378 of this act. Copies of
such report shall also be made available to the federal government,
and to members of the public upon written request.

SECTION 175. AMENDATORY 63 O.S. 2021, Section 1-556, is
amended to read as follows:

Section 1-556. A. The State Department of Health, giving
consideration to the recommendations of the Advancement of Wellness
Advisory Council created in Section 1-103a.1 of this title, shall be
responsible for evaluating and reporting to the Governor and the
State Commissioner of Health regarding contracting for statewide
services or issues related to breast cancer including, but not
limited to:

1. Mammography and pap smear screening of women for breast and
cervical cancer as an early detection health care measure provided
by facilities which are accredited by national organizations that
have formed coalitions to issue national cancer screening
guidelines;

2. Medical referral of screened persons with abnormal breast
findings and, to the extent practical, for additional services or
assistance for such persons;

3. Education and training programs for health care
professionals to improve methods for the detection and control of
breast and cervical cancer, and to improve communication with breast
and cervical cancer patients after diagnosis;

ENR. S. B. NO. 1877 Page 386

4. Annual public education and awareness campaigns to improve
the knowledge and health care practices of all Oklahomans with
respect to breast and cervical cancer;

5. Epidemiological trend studies utilizing the data from the
Oklahoma Central Cancer Registry for incidence, prevalence and
survival of breast and cervical cancer victims; and

6. Outreach to groups with high proportions of uninsured and
underinsured women.

B. The evaluative efforts of the Advisory Committee with
respect to contracts for services specified in subsection A of this
section shall provide appropriate oversight and requirements that
result in:

1. Enhanced quality control standards within facilities which
perform diagnostic cancer screening for breast and cervical cancer;
and

2. Establishment of a fee schedule for breast and cervical
cancer screening and diagnosis that complies with accepted
Medicare/Medicaid rates and that incorporates a sliding fee payment
system to encourage self-responsibility.

C. The State Department of Health, giving consideration to the
recommendations of the Advancement of Wellness Advisory Council
created in Section 1-103a.1 of this title, shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically report to the Governor, the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, and the
State Commissioner of Health by October 1 of every fifth year,
beginning on October 1, 2021, activities completed pursuant to the
Oklahoma Breast and Cervical Cancer Act during the prior five (5)
fiscal years including a report of the revolving funds expended on
related activities. The report may identify populations at highest
risk for breast or cervical cancer, priority strategies, and
emerging technologies including newly introduced therapies and
preventive vaccines that are effective in preventing and controlling
the risk of breast and cervical cancer, and any recommendations for
additional funding, if necessary, to provide screenings and

ENR. S. B. NO. 1877 Page 387
treatment for breast and cervical cancer for uninsured and
underinsured women. The report may further recommend strategies or
actions to reduce the costs of breast and cervical cancer in this
state.

D. The Advancement of Wellness Advisory Council shall evaluate
the prospective termination or continuation of its ongoing duties on
October 1, 2008. Such evaluation shall be made based on the
successful implementation of breast and cervical cancer reduction
plans and/or or achievement of significant reductions in breast and
cervical cancer morbidity and mortality in this state.

SECTION 176. AMENDATORY 63 O.S. 2021, Section 1-740.11,
is amended to read as follows:

Section 1-740.11. A. Before July 1, 2007, the State Department
of Health shall establish and implement a program to facilitate
funding to nongovernmental entities that provide alternatives-to-
abortion services. The services must shall be outcome-based with
positive outcome-based results.

B. During the On or before December 1, 2006 interim, and
annually thereafter, the State Department of Health shall make
annual reports, utilizing the centralized filing system provided for
in Section 378 of this act, electronically report to the Speaker of
the House of Representatives and the President Pro Tempore of the
Senate regarding the status of the alternatives-to-abortion services
funding, the first of which must be made by December 1, 2006.

C. The Department may contract with nongovernmental health care
and special service organizations to provide services offered under
the program. The services must shall be outcome-based with positive
outcome-based results. The Department may not contract with a
provider of adoption services not licensed by the state.

D. The State Department of Health shall promulgate rules
necessary to implement the provisions of this act.

E. As used in this section, “alternatives-to-abortion services”
means those services that promote childbirth instead of abortion by
providing information, counseling, and support services that assist
pregnant women or women who believe they may be pregnant to choose

ENR. S. B. NO. 1877 Page 388
childbirth and to make informed decisions regarding the choice of
adoption or parenting with respect to their children.

The information, counseling and services provided under this
program may include, but are not limited to:

1. Medical care;

2. Nutritional services;

3. Housing assistance;

4. Adoption services;

5. Educational and employment assistance, including services
that support the continuation and completion of high school;

6. Child care assistance; and

7. Parenting education and support services.

SECTION 177. AMENDATORY 63 O.S. 2021, Section 1-753, is
amended to read as follows:

Section 1-753. Contingent on the availability of funds being
appropriated by the Legislature specifically for this purpose, the
State Department of Health shall:

1. Develop and make available materials designed to provide
accurate, scientifically verifiable information concerning the
probable anatomical and physiological characteristics of the unborn
child at two-week gestational intervals. The Department may utilize
as a resource the material dealing with characteristics of the
unborn child created pursuant to Section 1-738.3 of Title 63 of the
Oklahoma Statutes and as located on the website www.awomansright.org
under the link “Characteristics of the Unborn Child”;

2. Develop and distribute educational and informational
materials to provide public information through public service
announcements, media, and otherwise for the purpose of achieving an
abortion-free society. Such materials shall be developed from the
most readily available, accurate, and up-to-date information and

ENR. S. B. NO. 1877 Page 389
shall clearly and consistently teach that abortion kills a living
human being. All efforts by the Department in this regard shall be
electronically reported annually to the Chair and Vice Chair of the
Senate Health and Human Services Committee and the House Public
Health Committee utilizing the centralized filing system provided
for in Section 378 of this act;

3. Provide technical assistance to help community-based
organizations in the planning and implementation of abortion
prevention, alternatives to abortion referral, and education
programs regarding the humanity of the unborn child;

4. Provide outreach, consultation, training, and alternatives
to abortion referral services to schools, organizations, and members
of the community;

5. Distribute educational and informational material concerning
maternal behavior during pregnancy which is helpful to a human child
in utero, including avoidance of tobacco, alcohol, and other drugs;
proper nutrition and prenatal vitamins; and utilization of and
resources available for prenatal medical and wellness care; and

6. Recommend to the State Department of Education
scientifically verifiable information concerning the unborn child in
the educational standards of science, family and consumer sciences
and health classes.

SECTION 178. AMENDATORY 63 O.S. 2021, Section 1-756.8,
is amended to read as follows:

Section 1-756.8. A. For the purpose of promoting maternal
health and adding to the sum of medical and public health knowledge
through the compilation of relevant data, a report of each drug-
induced abortion performed shall be made to the State Department of
Health on forms prescribed by it. The reports shall be completed by
the hospital or other licensed facility in which the abortion-
inducing drug was given, sold, dispensed, administered, or otherwise
provided or prescribed; signed by the qualified physician who gave,
sold, dispensed, administered, or otherwise provided or prescribed
the abortion-inducing drug; and transmitted to the Department within
fifteen (15) days after each reporting month.

ENR. S. B. NO. 1877 Page 390
B. Each report shall include, at minimum, the following
information:

1. Identification of the qualified physician who provided the
abortion-inducing drug;

2. Whether the chemical abortion was completed at the hospital
or licensed facility in which the abortion-inducing drug was
provided or at an alternative location;

3. The referring physician, agency, or service, if any;

4. The pregnant woman’s age and race;

5. The number of previous pregnancies, number of live births
and number of previous abortions of the pregnant woman;

6. The probable gestational age of the unborn child as
determined by both patient history and by ultrasound results used to
confirm the gestational age. The report shall include the date of
the ultrasound and gestational age determined on that date;

7. The abortion-inducing drug or drugs used, the date each was
provided to the pregnant woman and the reason for the abortion, if
known;

8. Preexisting medical conditions of the pregnant woman which
would complicate her pregnancy, if any;

9. Whether the woman returned for a follow-up examination to
determine completion of the abortion procedure and to assess
bleeding and the date and results of any such follow-up examination,
and what reasonable efforts were made by the qualified physician to
encourage that she return for a follow-up examination if she did
not;

10. Whether the woman suffered any complications, and what
specific complications arose and any follow-up treatment needed; and

11. The amount billed to cover the treatment for specific
complications including whether the treatment was billed to
Medicaid, private insurance, private pay, or other method. This

ENR. S. B. NO. 1877 Page 391
shall include charges for any physician, hospital, emergency room,
prescription, or other drugs, laboratory tests, and any other costs
for treatment rendered.

C. Reports required under this subsection shall not contain:

1. The name of the pregnant woman;

2. Common identifiers such as her social security number or
driver license number; or

3. Other information or identifiers that would make it possible
to identify, in any manner or under any circumstances, a woman who
has obtained or seeks to obtain a chemical abortion.

D. If a qualified physician provides an abortion-inducing drug
to a pregnant woman for the purpose of inducing an abortion as
authorized in Sections 2 and 3 of this act, and if the qualified
physician knows that the woman who uses the abortion-inducing drug
for the purpose of inducing an abortion experiences, during or after
the use of the abortion-inducing drug, an adverse event, the
qualified physician shall provide a written report of the adverse
event within three (3) days of the event to the Food and Drug
Administration via the Medwatch Reporting System, and to the
Department and to the State Board of Medical Licensure and
Supervision.

E. Any physician, qualified physician, associated physician, or
other healthcare provider who treats a woman, either
contemporaneously to or at any time after the procedure, for an
adverse event or complication related to a chemical abortion shall
make a report of the adverse event to the Department on forms
prescribed by it. The reports shall be completed by the hospital or
other facility in which the adverse event treatment was provided;
signed by the physician, qualified physician, or other healthcare
provider who treated the adverse event; and transmitted to the
Department within (15) days after each reporting month.

F. The Department shall prepare and, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a comprehensive annual statistical report for
to the Legislature based upon the data gathered from reports under

ENR. S. B. NO. 1877 Page 392
this section. The aggregated data shall also be made available to
the public by the Department in a downloadable format.

G. The Department shall summarize aggregate data from the
reports required under this act and submit the data to the Centers
for Disease Control and Prevention.

H. Reports filed pursuant to this section shall be public
records and shall be available to the public in accordance with the
confidentiality and public records reporting laws of this state.
Copies of all reports filed under this subsection shall be available
to the State Board of Medical Licensure and Supervision, State Board
of Pharmacy, state law enforcement offices, and child protective
services for use in the performance of their official duties.

I. Absent a valid court order or judicial subpoena, neither the
Department, any other state department, agency, or office nor any
employees thereof shall compare data concerning abortions or
abortion complications maintained in an electronic or other
information system file with data in any other electronic or other
information system with the intention of identifying, in any manner
or under any circumstances, a woman obtaining or seeking to obtain a
drug-induced abortion.

J. Statistical information that may reveal the identity of a
woman obtaining or seeking to obtain a drug-induced abortion shall
not be publicly disclosed by the Department, any other state
department, agency, office, or any employee or contractor thereof.

K. Copies of all reports filed under this section shall be
available to the Department and the State Board of Medical Licensure
and Supervision for use in the performance of its official duties.

L. The Department shall communicate the reporting requirements
in this section to all medical professional organizations, licensed
physicians, hospitals, emergency rooms, abortion facilities,
clinics, ambulatory surgical facilities, and other healthcare
facilities operating in this state.

M. Any physician including emergency medical personnel, who
treats a woman for complications or adverse event arising from an

ENR. S. B. NO. 1877 Page 393
abortion, shall file a written report as required by this section of
this act with the Department.

N. A physician filing a written report with the Department
after treating a woman for complications or otherwise in an
emergency capacity shall make reasonable efforts to include all of
the required information that may be obtained without violating the
privacy of the woman.

SECTION 179. AMENDATORY 63 O.S. 2021, Section 1-2530.9,
is amended to read as follows:

Section 1-2530.9. A. There is hereby created in the State
Treasury a revolving fund for the State Department of Health to be
designated the “Trauma Care Assistance Revolving Fund”. The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all monies received by the State Department of
Health from monies apportioned thereto for purposes of this section.
All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Department as
follows:

1. Ninety percent (90%) of such monies shall be used to
reimburse recognized trauma facilities, licensed ambulance service
providers, and physicians for uncompensated trauma care expenditures
as documented in the statewide emergency medical services and trauma
analysis system developed pursuant to the provisions of Section 1-
2511 of this title. In lieu of or in combination with reimbursement
for uncompensated care, monies from the fund may also be used to
support readiness costs incurred by recognized trauma facilities
associated with ensuring a stable trauma care system with
availability of twenty-four-hour physician services for the
provision of trauma care. Any monies used for the treatment of
Medicaid-eligible patients that are subsequently used to establish
federal matching fund requirements shall also be reimbursed to
eligible trauma facilities, licensed ambulance service providers,
and physicians; and

2. Ten percent (10%) of such monies shall be used by the
Department in the furtherance of its powers and duties set forth in
the Oklahoma Emergency Response Systems Development Act.

ENR. S. B. NO. 1877 Page 394
B. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.

C. The State Board of Health shall establish by rule a formula
and procedure for the distribution of funds for uncompensated trauma
care and/or or readiness costs that shall provide for the allocation
of funds to hospitals, ambulance service providers, and physicians.

D. Annually, monies accumulated in the fund may be transferred
to the Oklahoma Health Care Authority, by order of the State
Commissioner of Health, to maximize Medicaid reimbursement of trauma
care. The Oklahoma Health Care Authority shall use these funds with
federal matching funds to reimburse hospitals, ambulance service
providers and physicians for trauma care provided to severely
injured patients who are participants in Medicaid.

E. An annual report detailing the disbursements from the fund
shall be electronically provided on January 1 of each year to the
Speaker of the House of Representatives, the President Pro Tempore
of the Senate, and the Chair of each health-related committee of
both the House of Representatives and the Senate utilizing the
centralized filing system provided for in Section 378 of this act.

SECTION 180. AMENDATORY 63 O.S. 2021, Section 1-2712, is
amended to read as follows:

Section 1-2712. A. 1. The State Department of Health shall
administer the Oklahoma Dental Loan Repayment Program.

2. The Program, depending upon available funding, shall provide
educational loan repayment assistance for up to a total of twenty-
five full-time equivalent Oklahoma licensed dentists per year
including new and continuing contract renewable participants.

3. Each award shall be for a contracted period and shall be
distributed to the participant by drafts made payable to the
participant for deposit to an appropriate loan agency in equal
monthly disbursements, not to exceed Fifty Thousand Dollars
($50,000.00) per year for a maximum five-year period. Prior to any
disbursement, the Department shall certify and properly review

ENR. S. B. NO. 1877 Page 395
monthly reports submitted by the participating dentist detailing
performance of activities in accordance with the Oklahoma Dental
Loan Repayment Act.

4. At the conclusion of the minimum service obligation, the
Department shall review the performance in the Program of the
participating dentist and determine whether an award may be granted
for an additional period not to exceed a total participation in the
Program of five (5) years pursuant to rules promulgated by the
Department.

B. Any dentist entering the Program each year as a nonfaculty
participant shall agree to provide dental care and services to
Medicaid recipients as authorized by the Oklahoma Health Care
Authority. The Department shall be responsible for ensuring that at
least thirty percent (30%) of the patients treated by the dentist
will be Medicaid recipients.

1. Any general practice dentist entering the Program each year
as a nonfaculty participant shall agree to provide dental care and
services in a designated Dental Health Professional Shortage Area
(DHPSA) of this state.

2. Any dentist licensed to practice as a Pediatric Dentistry
Specialist as defined by the State Dental Act or any dentist
practicing in a Federally Qualified Health Center (FQHC), FQHC look-
alike, county health department or city-county health department may
be exempt from the requirement to practice in a Dental Health
Professional Shortage Area (DHPSA).

C. A dentist entering the Program as a faculty participant
shall agree to teach at the University of Oklahoma College of
Dentistry. In the event there are no appropriate faculty
applicants, the Program may award additional nonfaculty dentists.

D. A dentist shall be eligible to participate in the Program if
the dentist:

1. Is a new dental school graduate. Preference will be given
to graduates of the University of Oklahoma College of Dentistry;

2. Is licensed to practice dentistry in Oklahoma; and

ENR. S. B. NO. 1877 Page 396

3. Has demonstrated financial need.

E. The dentist shall execute a contract with the Department to
provide dental services pursuant to the terms of the contract and in
accordance with rules promulgated by the Department.

F. If the dentist does not fulfill the service obligation, the
Department may collect from the participant the entire amount of
loan payments made under the Program plus interest.

G. The Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
present a report on the operation of the Program to the Governor,
the Speaker of the House of Representatives, and the President Pro
Tempore of the Senate within one (1) month of the beginning of each
regular session of the Legislature including but not limited to the
progress made in accomplishing the goal of the Program.

SECTION 181. AMENDATORY 63 O.S. 2021, Section 1-2721, as
last amended by Section 1, Chapter 184, O.S.L. 2024 (63 O.S. Supp.
2025, Section 1-2721), is amended to read as follows:

Section 1-2721. A. 1. The Health Care Workforce Training
Commission shall administer the Oklahoma Medical Loan Repayment
Program.

2. For the purposes of this section, “primary care physicians”
shall mean physicians practicing in family medicine, geriatrics,
general internal medicine, general pediatrics,
obstetrics/gynecology, emergency medicine, or general surgery.

3. For the purposes of this section, “health center” shall mean
a Federally Qualified Health Center as defined by 42 U.S.C., Section
1905(1)(2)(B).

4. For the purposes of this section, “teaching health center”
shall mean a health center that supports the residencies of primary
care physicians within the operations of the health center.

5. The program, depending upon and limited to available
funding, shall provide educational loan repayment assistance to

ENR. S. B. NO. 1877 Page 397
Oklahoma-licensed primary care physicians, physician assistants, and
certified nurse practitioners who agree to establish a practice in a
community located in Oklahoma approved by the Commission.

6. Each award of educational loan repayment assistance shall be
for a contracted period and shall be distributed to the participant
by drafts made payable to the participant at the end of each
contract year with disbursements not to exceed an amount to be
established annually by the Commission. Prior to any disbursement,
the Commission shall certify and properly review reports submitted
by the participating physician, physician assistant, or certified
nurse practitioner detailing performance of activities in accordance
with the program.

7. The Commission shall review the performance in the program
of the participating physician, physician assistant, or certified
nurse practitioner and determine whether an award may be granted for
additional years pursuant to rules promulgated by the Commission.

B. The physicians, physician assistants, and certified nurse
practitioners entering the program each year shall agree to provide
medical care and services in areas designated by the Commission to
provide medical care and services to Medicaid recipients as
authorized by the Oklahoma Health Care Authority.

C. A physician, physician assistant, or certified nurse
practitioner shall be eligible to participate in the loan repayment
program if the individual:

1. Is a physician, physician assistant, or certified nurse
practitioner who holds a current Oklahoma medical license;

2. Is a new primary care graduate physician, physician
assistant, or certified nurse practitioner. Preference will be
given to graduates of the primary care residency programs affiliated
with the Oklahoma State University College of Osteopathic Medicine,
the University of Oklahoma College of Medicine, and the teaching
hospitals affiliated with both schools of medicine and teaching
health centers located in this state; or

ENR. S. B. NO. 1877 Page 398
3. Is a current practicing physician, physician assistant, or
certified nurse practitioner and has met criteria established by the
Commission.

D. The Commission may accept donations of public or private
funds to assist in funding the Oklahoma Medical Loan Repayment
Program. The Commission may, at its discretion, contract with other
public entities and nonprofit corporations for the endowment,
management, and administration of such funds.

E. The Commission shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
present a report on the operation of the program to the Governor,
the Speaker of the Oklahoma House of Representatives, and the
President Pro Tempore of the Oklahoma State Senate within one (1)
month of the beginning of each regular session of the Legislature,
including but not limited to the progress made in accomplishing the
goal of the program.

SECTION 182. AMENDATORY 63 O.S. 2021, Section 1-2731, is
amended to read as follows:

Section 1-2731. A. 1. The Department of Mental Health and
Substance Abuse Services shall administer the Oklahoma Mental Health
Loan Repayment Program.

2. The Program, depending upon available funding, shall provide
educational loan repayment assistance for mental health or substance
abuse treatment providers who provide services in Health
Professional Shortage Areas (HPSAs) for mental health.

3. Each award shall be for a contracted period and shall be
distributed to the participant by drafts made payable to the
participant and the appropriate loan agency following a completed
year of service. Prior to any disbursement, the Department shall
certify and properly review reports submitted by the participating
provider detailing performance of activities in accordance with this
act.

4. At the conclusion of the minimum service obligation, the
Department shall review the performance in the Program of the
participating mental health or substance abuse provider and

ENR. S. B. NO. 1877 Page 399
determine whether an award may be granted for an additional period
not to exceed a total participation in the Program of five (5) years
pursuant to rules promulgated by the Board of Mental Health and
Substance Abuse Services.

B. Any participating mental health or substance abuse treatment
provider shall agree to provide mental health or substance abuse
treatment services to Medicaid recipients as authorized by the
Oklahoma Health Care Authority and individuals lacking health
insurance coverage. The Department of Mental Health and Substance
Abuse Services shall be responsible for ensuring that at least
twenty-five percent (25%) of the patients treated by the provider
are Medicaid beneficiaries, uninsured, or a combination of Medicaid
and uninsured recipients.

C. The mental health or substance abuse treatment provider
shall execute a contract with the Department to provide mental
health or substance abuse treatment services pursuant to the terms
of the contract and in accordance with rules promulgated by the
Board.

D. The Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
present a report on the operation of the Program to the Governor,
the President Pro Tempore of the Senate, and the Speaker of the
House of Representatives within one (1) month of the beginning of
each regular session of the Legislature, including but not limited
to the progress made in accomplishing the goal of the Program.

SECTION 183. AMENDATORY 63 O.S. 2021, Section 2-805, is
amended to read as follows:

Section 2-805. A. The State Commissioner of Health shall have
the authority to approve physicians conducting clinical trials
performed pursuant to the provisions of this act. In the event of a
substantial violation of this act, the Commissioner shall provide
written notice to the Oklahoma State Bureau of Narcotics and
Dangerous Drugs Control and the Governor. The Governor, upon
receipt of a notice from the Commissioner, shall have the authority
to terminate the operations of a clinical trial found to be in
violation of any provision of this act.

ENR. S. B. NO. 1877 Page 400
B. The clinical trials and related research authorized by this
act shall adhere to the highest standards of academic research
including, but not limited to, peer review of research conducted
pursuant to this act.

C. Clinical trials and related research authorized by this act
shall conclude no later than December 31, 2017. Nothing in this act
shall be construed as to permit the continuation of clinical trials
after December 31, 2017, without approval by a concurrent resolution
approved by the Legislature expressing approval of such
continuation.

D. The State Commissioner of Health shall submit a report to
the Chair and Vice Chair of the Senate Health and Human Services
Committee, the Chair and Vice Chair of the House Alcohol, Tobacco
and Dangerous Drugs Committee, and the Chair and Vice Chair of the
House Public Health Committee on or before December 31, 2017. Such
report shall include a summary of findings from clinical trials
authorized by this act. The Commissioner shall, upon request by the
Chair and Vice Chair of the Committees specified in this subsection,
make available any data, excluding individual health records,
relating to clinical trials authorized by this act.

E. The Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, the State Board of Health, and the Oklahoma State Regents
for Higher Education shall promulgate rules to implement the
provisions of this act.

SECTION 184. AMENDATORY 63 O.S. 2021, Section 2-904, is
amended to read as follows:

Section 2-904. A. District attorneys shall prepare and submit
an annual report to the District Attorneys Council showing total
deposits and total expenditures in the Drug Possession Diversion
Program.

B. By September 15 of each year, the District Attorneys Council
shall publish an annual report for the previous fiscal year of the
Drug Possession Diversion Program. An electronic copy of the report
shall be distributed to the President Pro Tempore of the Senate, the
Speaker of the House of Representatives and the chairs of the House
and Senate Appropriation and Budget Committees utilizing the

ENR. S. B. NO. 1877 Page 401
centralized filing system provided for in Section 378 of this act.
Each district attorney shall submit information requested by the
District Attorneys Council regarding the Drug Possession Diversion
Program. The report shall include the number of charges referred to
and accepted into the Drug Possession Diversion Program, the total
amount of fees collected and such other information as required by
the District Attorneys Council.

SECTION 185. AMENDATORY 63 O.S. 2021, Section 2-1001, as
last amended by Section 1, Chapter 198, O.S.L. 2025 (63 O.S. Supp.
2025, Section 2-1001), is amended to read as follows:

Section 2-1001. A. The Attorney General shall have the power
and duty to:

1. Coordinate and integrate state and local efforts to address
overdose deaths and create a body of information to prevent overdose
deaths;

2. Conduct case reviews of deaths of persons eighteen (18)
years of age or older due to licit or illicit opioid use in this
state;

3. Collect, analyze, and interpret state and local data on
opioid overdose deaths;

4. Develop a state and local database on opioid overdose
deaths;

5. Improve policies, procedures, and practices within the
agencies in order to prevent fatal opioid overdoses and to serve
victims of unintentional overdose; and

6. Enter into agreements with other state, local, or private
entities as necessary to carry out the duties under this section,
including, but not limited to, conducting joint reviews with the
Child Death Review Board on unintentional overdose cases involving
child death and child near-death incidents.

B. In carrying out his or her duties and responsibilities, the
Attorney General shall:

ENR. S. B. NO. 1877 Page 402
1. Promulgate rules, if necessary, establishing criteria for
identifying cases involving an opioid overdose death subject to
specific, in-depth review by the Attorney General;

2. Conduct a specific case review of those cases where the
cause of death is or may be related to overdose of opioid drugs;

3. Establish and maintain statistical information related to
opioid overdose deaths including, but not limited to, demographic
and medical diagnostic information;

4. Establish procedures for obtaining initial information
regarding opioid overdose deaths from law enforcement agencies;

5. Review the policies, practices, and procedures of medical
systems and law enforcement systems and other overdose protection
and prevention systems, and make specific recommendations to those
entities for actions necessary for the improvement of the system;

6. Request and obtain a copy of all records and reports
pertaining to an adult whose case is under review including, but not
limited to:

a. the report of the medical examiner,

b. hospital records,

c. school records,

d. court records,

e. prosecutorial records,

f. local, state, and federal law enforcement records
including, but not limited to, the Oklahoma State
Bureau of Investigation (OSBI) and Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control (OBN),

g. fire department records,

h. State Department of Health records, including birth
certificate records,

ENR. S. B. NO. 1877 Page 403

i. medical and dental records,

j. Department of Mental Health and Substance Abuse
Services and other mental health records,

k. emergency medical service records,

l. files of the Department of Human Services, and

m. records in the possession of the Child Death Review
Board when conducting a joint review in accordance
with paragraph 6 of subsection A of this section.

Confidential information or records provided to the Attorney General
shall be maintained by the Attorney General in a confidential manner
as otherwise required by state and federal law. Any person damaged
by disclosure of such confidential information by the Attorney
General or any employees or contractors of the Office of the
Attorney General which is not authorized by law may maintain an
action for damages, costs, and attorney fees pursuant to The
Governmental Tort Claims Act;

7. Maintain all confidential information, documents and records
in possession of the Attorney General as confidential and not
subject to subpoena or discovery in any civil or criminal
proceedings; provided however, information, documents, and records
otherwise available from other sources shall not be exempt from
subpoena or discovery through those sources solely because such
information, documents, and records were presented to or reviewed by
the Attorney General;

8. Conduct reviews of specific cases of opioid overdose deaths
and request the preparation of additional information and reports as
determined to be necessary by the Attorney General including, but
not limited to, clinical summaries from treating physicians,
chronologies of contact, and second-opinion autopsies;

9. Report Utilizing the centralized filing system provided for
in Section 378 of this act, electronically report to the Governor,
the President Pro Tempore of the Senate, and the Speaker of the
House of Representatives any information and guidance regarding the

ENR. S. B. NO. 1877 Page 404
prevention and protection system to advise on changing trends in
overdose rates, substances, methods, or any other factor impacting
overdose deaths, including any systemic issue within the medical,
law enforcement, or other relevant systems discovered by the
Attorney General while performing his or her duties; and

10. Exercise all incidental powers necessary and proper for the
implementation and administration of this section.

C. All discussions of individual cases and any writings
produced by or created for the Attorney General in the course of
determining a remedial measure to be recommended by the Attorney
General, as the result of a review of an individual case of an
opioid overdose death, shall be privileged and shall not be
admissible in evidence in any proceeding.

D. The Attorney General shall submit an annual statistical
report on the incidence and causes of opioid overdose deaths in this
state for which the Attorney General has completed his or her review
during the past calendar year including his or her recommendations,
if any, to the medical and law enforcement system. The Attorney
General shall also prepare and make available to the public, on an
annual basis, a report containing a summary of the activities
relating to the review of opioid overdose deaths, the extent to
which the state medical and law enforcement system is coordinated,
and an evaluation of whether the state is efficiently discharging
its responsibilities to prevent opioid overdose deaths. The report
shall be completed no later than February 1 of the subsequent year.

E. Any entity from which the Attorney General requests records
in accordance with paragraph 6 of subsection B of this section shall
provide the records to the Attorney General.

F. The Attorney General may assign any of the powers and duties
in this section or in Section 2-1003 of this title to any of the
Attorney General’s assistants or employees.

SECTION 186. AMENDATORY Section 10, Chapter 322, O.S.L.
2023 (63 O.S. Supp. 2025, Section 427.17a), is amended to read as
follows:

ENR. S. B. NO. 1877 Page 405
Section 427.17a. A. The Oklahoma Medical Marijuana Authority
may operate a quality assurance laboratory for the purpose of
conducting compliance testing of medical marijuana businesses
licensed in this state.

B. The Authority shall utilize the quality assurance laboratory
to:

1. Provide recommendations for all equipment and standards to
be utilized by licensed medical marijuana testing laboratories when
testing samples of medical marijuana, medical marijuana concentrate,
and medical marijuana products;

2. Provide standardized operating procedures when procuring,
collecting, extracting, and testing medical marijuana, medical
marijuana concentrate, and medical marijuana products;

3. Procure, handle, transfer, transport, and test samples taken
from medical marijuana licensed businesses;

4. Implement the secret shopper program pursuant to Section
427.25 of Title 63 of the Oklahoma Statutes; and

5. Detect and analyze any compounds that are not among the
targeted analytes and are unknown, unidentified, tentatively
identified, or known and injurious to human health if consumed.

C. In order to fulfill the provisions of subsection A of this
section, the Authority may:

1. Enter into interlocal agreements with any other government
agency pursuant to Section 1001 et seq. of Title 74 of the Oklahoma
Statutes;

2. Select a laboratory information system through a competitive
bidding process pursuant to Section 85.7 of Title 74 of the Oklahoma
Statutes; or

3. Collect samples from harvest batches that failed testing.

D. The quality assurance laboratory may transport and transfer
medical marijuana, medical marijuana concentrate, and medical

ENR. S. B. NO. 1877 Page 406
marijuana product for testing between the originating medical
marijuana business, the quality assurance laboratory, and other
licensed medical marijuana testing laboratories pursuant to this
section.

E. The quality assurance laboratory shall comply with the
provisions of the Oklahoma Medical Marijuana and Patient Protection
Act when transporting samples of medical marijuana, medical
marijuana concentrate, and medical marijuana product for testing
between the originating medical marijuana business, the quality
assurance laboratory, and other licensed medical marijuana testing
laboratories pursuant to this section. Nothing in this section
shall require the quality assurance laboratory to apply for and
receive a license.

F. The Authority shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit an
annual report to the Legislature on quality assurance activities and
results.

G. The Authority may promulgate rules necessary for the
implementation of a quality assurance laboratory pursuant to this
section.

SECTION 187. AMENDATORY Section 1, Chapter 321, O.S.L.
2024 (63 O.S. Supp. 2025, Section 427.29), is amended to read as
follows:

Section 427.29. A. There is hereby created the Oklahoma
Medical Marijuana Authority Executive Advisory Council.

B. The Oklahoma Medical Marijuana Authority Executive Advisory
Council shall consist of the following members, and all appointees
shall serve their terms at the pleasure of the appointing authority
and may be removed or replaced without cause:

1. One member appointed by the Governor to represent all
citizens of this state;

2. One member appointed by the Speaker of the Oklahoma House of
Representatives, who shall be a citizen from a county with a

ENR. S. B. NO. 1877 Page 407
population under twenty-five thousand (25,000) persons, as
determined by the latest Federal Decennial Census;

3. One member appointed by the President Pro Tempore of the
Oklahoma State Senate, who shall be a citizen from a municipality
with a population in excess of seventy-five thousand (75,000)
persons, as determined by the latest Federal Decennial Census;

4. One member appointed by the Speaker of the Oklahoma House of
Representatives, who is a current medical marijuana business license
holder;

5. One member appointed by the President Pro Tempore of the
Oklahoma State Senate, who is a current medical marijuana business
license holder; and

6. One member appointed by the Governor, who holds a medical
marijuana patient license.

C. The Executive Director of the Oklahoma Medical Marijuana
Authority shall chair the Advisory Council and provide staff and
administrative support to the Advisory Council.

D. The Advisory Council shall select a co-chair from the
membership of the Advisory Council.

E. Each member of the Advisory Council shall serve a term of
four (4) years from the date of appointment. Members of the
Advisory Council shall not serve more than two consecutive terms.

F. A majority of the members of the Advisory Council shall
constitute a quorum for the transaction of business and for taking
any official actions. Official actions by the Advisory Council
shall have a favorable vote by a majority of the members present.

G. Appointed members who serve on the Advisory Council shall be
exempt from dual-office-holding prohibitions pursuant to Section 6
of Title 51 of the Oklahoma Statutes.

H. The Advisory Council may advise the Authority of recommended
changes to state policy, rules, or statutes.

ENR. S. B. NO. 1877 Page 408
I. The Advisory Council shall prepare and issue a report of its
findings and recommendations electronically to the Governor,
President Pro Tempore of the Senate, and Speaker of the House by
November 1, 2025, and no later than November 1 of each year
thereafter utilizing the centralized filing system provided for in
Section 378 of this act.

J. Members appointed pursuant to subsection B 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.

K. The Oklahoma Medical Marijuana Authority Executive Advisory
Council shall meet as often as necessary to conduct business but
shall meet not less than four times a year, with an organizational
meeting to be held prior to January 1, 2025.

L. Any vacancy occurring on the Oklahoma Medical Marijuana
Authority Executive Advisory Council shall be filled for the
unexpired term of office in the same manner as provided for in
subsection B of this section.

M. The Advisory Council shall act in accordance with the
provisions of the Oklahoma Open Meeting Act, the Oklahoma Open
Records Act, and the Administrative Procedures Act.

SECTION 188. AMENDATORY 63 O.S. 2021, Section 683.4, is
amended to read as follows:

Section 683.4. A. There is hereby created the Oklahoma
Department of Emergency Management (OEM). The Governor shall
appoint a Director of the Department, with the advice and consent of
the Senate, who shall be the head of the Department. The Governor
shall fix the salary of the Director, in cooperation with standards
promulgated by the Office of Management and Enterprise Services.

B. The Director may employ personnel and fix their compensation
in cooperation with standards promulgated by the Office of
Management and Enterprise Services, and may make such expenditures
within the appropriation therefor, or from such other available
funds as may be necessary to carry out the purposes of the Oklahoma

ENR. S. B. NO. 1877 Page 409
Emergency Management Act of 2003 and other programs specified by
law.

C. The Director and other personnel of the Department shall be
provided with appropriate office space, furniture, equipment,
supplies, stationery, and printing in the same manner as provided
for personnel of other state agencies.

D. The Director, subject to the direction and control of the
Governor, shall be the executive head of the Department and shall
serve as the chief advisor to the Governor on emergency management
and shall:

1. Be responsible to the Governor for carrying out the programs
as required by law;

2. Coordinate the activities of all organizations for emergency
management within the state;

3. Maintain liaison with and cooperate with the emergency
management agencies and organizations of other states and of the
federal government;

4. Develop and maintain a comprehensive all-hazards mitigation
plan for this state;

5. Implement the Oklahoma Hazard Mitigation Program;

6. Have such additional authority, duties, and responsibilities
authorized by the Oklahoma Emergency Management Act of 2003 and as
may be prescribed by the Governor;

7. Supervise the Office of Volunteerism in accordance with
Section 683.26 of this title; and

8. Report Utilizing the centralized filing system provided for
in Section 378 of this act, electronically submit a report quarterly
to the Governor, the Speaker of the House of Representatives, and
the President Pro Tempore of the Senate the balance and outstanding
obligations of the State Emergency Fund.

ENR. S. B. NO. 1877 Page 410
E. The Director shall supervise the formulation, execution,
review, and revisions of the state Emergency Operations Plan as
provided for by Section 683.2 of this title. The plan shall be
reviewed annually and revised as necessary.

SECTION 189. AMENDATORY 63 O.S. 2021, Section 2565, is
amended to read as follows:

Section 2565. A. Any agency making decisions on utilization
management measures, coverage, reimbursement, or incentive programs
shall be required to consult with:

1. Organizations representing patients and people with
disabilities, including both self-advocacy organizations and
organizations representing patients, prior to proceeding on any
measure likely to impact the relevant patient or disability
community; and

2. Organizations representing patients and people that advocate
for the rights of patients to obtain treatment without regard to the
patients’ quality of life and representatives of organizations that
advocate for the rights of older persons to receive health care.

B. Any agency making decisions on utilization management
measures, coverage, reimbursement, or incentive programs shall
ensure that a process is in place to ensure robust stakeholder
engagement and full transparency surrounding the provision of any
research and analysis relied upon for decision-making that would
impact access to health care treatments and services by patient
groups provided for in subsection A of this section, including:

1. Providing stakeholders with meaningful notice and
opportunity to comment on the retention of any vendor providing
research and analysis to the agency;

2. Subjecting research and analysis relied upon by an agency to
meaningful notice and comment process;

3. Ensuring deliberation around the coverage or reimbursement
for health care treatments and services occurs in open meetings;

ENR. S. B. NO. 1877 Page 411
4. Presenting and releasing any research and analysis relied
upon for decision-making in public meetings or publicly released
prior to deliberation;

5. Requiring full disclosure into funding sources and conflicts
of interest of any third party providing research and analysis to
the state;

6. Prohibiting sole-source contracts for research and analysis
to ensure reliance on a range of evidence; and

7. Preparing an annual report assessing beneficiary access to
health care treatments and services. The report shall assess the
impact of any form of utilization management on access to care with
a specific analysis of the impact on persons with disabilities,
chronic illness, and advanced age. The report shall be
electronically submitted to the State Legislature utilizing the
centralized filing system provided for in Section 378 of this act,
be posted on the state Medicaid website, and the agency shall
provide an opportunity for public comment.

C. Any research and analysis relied upon for decision-making
that would impact coverage and access to health care treatments and
services shall measure outcomes prioritized by patients and persons
with disabilities as required by this section, as well as consider
meaningful differences in the characteristics, needs and preferences
of patients and persons with disabilities.

SECTION 190. AMENDATORY 63 O.S. 2021, Section 3208, is
amended to read as follows:

Section 3208. A. The Authority shall have the power to:

1. Adopt bylaws and promulgate rules for the regulation of its
affairs and the conduct of its business;

2. Adopt an official seal;

3. Maintain an office at the University Hospitals;

4. Sue and be sued, subject to the provisions of The
Governmental Tort Claims Act;

ENR. S. B. NO. 1877 Page 412

5. Establish rates of payment for hospital and clinical
services, which shall provide for exceptions and adjustments in
cases where the recipients of services are unable to pay and for
whom no third party source of payment is available, and to establish
different rates of payment for indigent and nonindigent care;

6. Enter into cooperative agreements with the Board of Regents
of the University of Oklahoma for educational programs, professional
staffing, research, and other medical activities and to pass through
funds appropriated by the Legislature consistent with past practice;

7. Make and enter into all contracts necessary or incidental to
the performance of its duties and the execution of its powers
pursuant to the University Hospitals Authority Act;

8. Purchase or lease equipment, furniture, materials, and
supplies, and incur such other expenses as may be necessary to
maintain and operate the hospitals or clinics, or to discharge its
duties and responsibilities or to make any of its powers effective;

9. Acquire by purchase, lease, gift, or by any other manner,
and to maintain, use, and operate or to contract for the
maintenance, use, and operation of or lease of any and all property
of any kind, real, personal, or mixed or any interest therein unless
otherwise provided by the University Hospitals Authority Act;

10. Appoint such officers, agents, and employees, including but
not limited to attorneys, architects, and construction managers, as
it deems necessary to operate and maintain the University Hospitals
and to prescribe their duties and to fix their compensation;

11. Accept grants from the United States of America, or from
any corporation or agency created or designated by the United States
of America, and, in connection with any such grant, to enter into
such agreements as the United States of America or such corporation
or agency may require;

12. Make and issue bonds and to pledge revenues of the
Authority subject to the Oklahoma Bond Oversight and Reform Act.
Nothing in the University Hospitals Authority Act shall authorize
the issuance of any bonds of the Authority payable other than from

ENR. S. B. NO. 1877 Page 413
revenues of the University Hospitals. Funds appropriated to the
University Hospitals shall not be used for issuance of bonds.
Authority revenue bonds issued under the provisions of the
University Hospitals Authority Act shall not at any time be deemed
to constitute a debt of the state or of any political subdivision
thereof or a pledge of the faith and credit of the state or of any
political subdivision, but such bonds shall be payable solely from
the funds herein provided. Such revenue bonds shall contain on the
face thereof a statement to the effect that neither the state nor
the Authority shall be obligated to pay the same or the interest
thereon except from the revenues of the project or projects for
which they are issued and that neither the faith and credit nor the
taxing power of the state or any political subdivision thereof is
pledged, or may hereafter be pledged, to the payment of the
principal of or the interest on such bonds. The maximum amount of
outstanding bonds at any time shall not exceed Fifty Million Dollars
($50,000,000.00) unless a greater amount is expressly approved by
the Legislature by a concurrent resolution adopted prior to
commencing any action in anticipation of issuance of revenue bonds
of the University Hospitals Authority for the greater amount;

13. Provide for complete financial audits on all accounts of
the University Hospitals Authority and to authorize periodic audits
by an independent external auditing agency. Such audits to be
performed annually in a format approved by the State Auditor and
Inspector and all such audits shall be submitted to the State
Auditor and Inspector for review. Such audits shall be made in
accordance with generally accepted auditing standards and government
auditing standards. Financial statements shall be prepared in
accordance with generally accepted accounting principles. In
addition to said audits, the State Auditor and Inspector, whenever
he or she deems it appropriate, and at least once each five (5)
years, or upon receipt of a request to do so from the Governor, the
Attorney General, the President Pro Tempore of the Senate, the
Speaker of the House of Representatives or the Authority shall
conduct a special audit of the Authority and the University
Hospitals;

14. Engage in long-term planning for the operation and
management of the University Hospitals;

ENR. S. B. NO. 1877 Page 414
15. Establish petty cash funds and provide for appropriate
accounting procedures and controls;

16. Contract with national manufacturers, wholesalers and
distributors of equipment, drugs, and medical supplies when
appropriate to carry out the purposes of the University Hospitals
Authority Act;

17. Do all other things necessary and proper to implement the
provisions of the University Hospitals Authority Act;

18. Waive, by such means as the Authority deems appropriate,
the exemption from federal income taxation of interest on the
Authority’s bonds provided by the Internal Revenue Code of 1986, as
amended, or any other federal statute providing a similar exemption;

19. Arrange for guaranties or insurance of its bonds by the
federal government or by any private insurer, and to pay any
premiums therefor; and

20. Adopt policies for the disposal of surplus property.

B. The University Hospitals Authority shall be subject to the
Oklahoma State Finance Act, Section 34 et seq. of Title 62 of the
Oklahoma Statutes.

C. The Authority shall prepare monthly a “budget vs. actual”
report which shows by budget activity the monthly and year-to-date
revenues and expenditures compared to budgeted revenues and
expenditures. Such report shall be electronically submitted upon
request to the Office of Management and Enterprise Services and to
the Directors of the House of Representatives Fiscal Division and
the Senate Fiscal Division utilizing the centralized filing system
provided for in Section 378 of this act.

D. The Authority shall be subject to the professional risk
management program provided for in Section 85.58A of Title 74 of the
Oklahoma Statutes.

E. The Authority may enter into contracts for construction and
remodeling projects in accordance with applicable statutes and its
own administrative rules. The Authority shall have the power to

ENR. S. B. NO. 1877 Page 415
authorize the demolition of any building owned by the Authority upon
a finding that the building is no longer suitable for the purposes
for which it was intended and that a renovation of the building is
not economically justifiable.

F. The Authority may provide space, utilities and janitorial
services to the Department of Human Services Institutional
Maintenance and Construction Architecture and Engineering Planning
Unit.

SECTION 191. AMENDATORY 63 O.S. 2021, Section 3220, is
amended to read as follows:

Section 3220. The University Hospitals Authority shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit an annual report to the Governor,
the President Pro Tempore of the Senate, and the Speaker of the
House of Representatives. Such report shall be submitted in
accordance with the requirements for financial statement audits in
Section 212A of Title 74 of the Oklahoma Statutes, and shall include
an account of the operations and actions of the Authority and an
accounting of all revenue received and disbursed by the Authority
for the previous fiscal year. The report shall include an
accounting of expenses related to each of the following:

1. Education and training of students of the University of
Oklahoma, resident physicians and others;

2. Care and treatment of indigents for whom the Authority
receives any form of state or federal reimbursement; and

3. Research.

SECTION 192. AMENDATORY 63 O.S. 2021, Section 3224, is
amended to read as follows:

Section 3224. A. The State of Oklahoma expressly approves the
creation of a public trust to be denominated the “University
Hospitals Trust”, of which the State of Oklahoma shall be the
beneficiary, provided such approval shall be contingent upon the
following conditions being satisfied:

ENR. S. B. NO. 1877 Page 416
1. Finalizing of the Declaration of Trust;

2. Adoption of the Declaration of Trust by an official action
of the trustees of the Trust;

3. Submission of the Trust for acceptance of the beneficial
interest and approval as required by Section 177 of Title 60 of the
Oklahoma Statutes; and

4. The approved Declaration of Trust shall:

a. clearly state that the principal purpose of the
University Hospitals Trust is to effectuate the
purposes of the University Hospitals Authority as
established in the University Hospitals Authority Act,

b. except as otherwise provided by law, provide that the
fee simple title to real property held by the
University Hospitals Authority shall not be
transferred, conveyed, or assigned to the University
Hospitals Trust without the express consent of the
Legislature as the governing entity of the beneficiary
pursuant to Section 176 of Title 60 of the Oklahoma
Statutes,

c. provide that any indebtedness incurred by the
University Hospitals Trust or the trustees of the
Trust shall not be secured with or create a lien upon
real property to which title is held by the University
Hospitals Authority and shall not involve the bonding
capacity of the University Hospitals Authority,

d. provide that the trust estate of the University
Hospitals Trust shall not include fee simple title to
real property owned by the University Hospitals
Authority,

e. clearly state that the creation of the University
Hospitals Trust shall not in any way reduce, limit or
interfere with the power granted to the University
Hospitals Authority in the University Hospitals
Authority Act,

ENR. S. B. NO. 1877 Page 417

f. provide that any lease or contractual agreement
involving use of the real property to which title is
held by the University Hospitals Authority and any
improvements thereto shall contain a provision and
covenants requiring the proper maintenance and upkeep
of the real property and improvements,

g. provide that the trustees of the University Hospitals
Trust shall be the acting members of the University
Hospitals Authority as provided in the University
Hospitals Authority Act, and

h. provide that the trustees of the University Hospitals
Trust shall have the duty to, utilizing the
centralized filing system provided for in Section 378
of this act, electronically submit an annual report to
the Governor, the President Pro Tempore of the Senate,
and the Speaker of the House of Representatives. The
report shall be submitted by January 1 of each year
and shall include an account of all operations,
actions of the Trust, account of all revenue received
and disbursed by the Trust for the previous fiscal
year. The report shall also provide a complete
accounting of how the Trust meets its primary function
of effectuating the purposes of the University
Hospitals Authority, as established in the University
Hospitals Authority Act.

B. The University Hospitals Trust shall require any agreements
which it enters into with any entity pursuant to Section 3226 of
this title for the operations of facilities leased by the University
Hospitals Authority to the Trust to include, but not be limited to:

1. The inclusion of four of the five members of the Trust as
four of the five members representing the State of Oklahoma as state
appointees to the governing committee created pursuant to a proposed
agreement;

2. Binding arbitration shall not be involved in such agreements
for resolving issues under consideration by the governing committee;
and

ENR. S. B. NO. 1877 Page 418

3. Major decisions shall be resolved by the governing
committee, and approval of any major decision by the governing
committee must shall include the approval of a majority of the state
appointees and the approval of a majority of the members of the
private entity appointees to the governing committee. Major
decisions shall include:

a. approval of the annual operating and capital budgets,

b. sale or disposition of assets that individually have a
fair market value over Two Hundred Fifty Thousand
Dollars ($250,000.00),

c. the termination or transfer or material addition or
material diminution of medical services at the
Oklahoma Medical Center related to and part of a
teaching program of the University of Oklahoma Health
Sciences Center, and

d. other major decisions as may be agreed upon by the
Trust and the private entity.

C. To the extent it is determined by legislative enactment that
the Trust has expended funds in contravention of its mission as set
forth in this section, the Trust shall remit, upon thirty (30) days’
written notice from the University Hospitals Authority, such sum or
sums to the University Hospitals Authority.

D. In the event the Trust enters into a joint venture or
acquires an interest in a not-for-profit entity to effectuate the
administration of the mission of the Trust, that entity shall not be
subject to the Oklahoma Open Meeting Act and the Oklahoma Open
Records Act. Any information submitted to or compiled by the Trust
with respect to marketing plans, financial statements, trade
secrets, research concepts, methods, or products or any other
proprietary information submitted to or compiled by the Trust,
persons, firms, associations, partnerships, agencies, corporations,
institutions of higher education, nonprofit research institutions,
or other entities shall be confidential, except to the extent that
the person or entity which provided such information or which is the
subject of such information consents to disclosure. Executive

ENR. S. B. NO. 1877 Page 419
sessions may be held to discuss such materials if deemed necessary
by the Trust. The provisions of this subsection shall not apply to
budgetary information related to appropriations or the
appropriations process.

E. In addition to the powers and exemptions granted to state
beneficiary public trusts organized under Section 176 et seq. of
Title 60 of the Oklahoma Statutes, the Trust shall possess all the
statutory powers and exemptions provided to the University Hospitals
Authority.

F. The Trust shall have the authority or may contract with a
joint operator or with a foundation supporting the programs of
Oklahoma Children’s Hospital to sell naming rights to property owned
or leased by the Trust, provided proceeds from the sale of naming
rights are used to effectuate the purposes of the University
Hospitals Authority as established in the University Hospitals
Authority Act and are specifically approved by the Trust, which
shall have absolute discretion in granting or denying naming rights.
Naming rights shall not include any interest in the property by the
purchaser other than the naming rights.

SECTION 193. AMENDATORY 63 O.S. 2021, Section 3229, is
amended to read as follows:

Section 3229. With respect to the provisions of paragraph 30 of
Section 1356 of Title 68 of the Oklahoma Statutes as amended by
Enrolled Senate Bill No. 79 of the 1st Session of the 58th Oklahoma
Legislature, the University Hospitals Authority shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically report the total value of the sales tax exemption
from the prior fiscal year to the Governor, the Speaker of the House
of Representatives, the President Pro Tempore of the Senate, the
Chair of the House Appropriations and Budget Committee or successor
committee, and the Chair of the Senate Appropriations Committee or
successor committee as part of its annual budget and performance
review materials submitted for the fiscal year beginning July 1,
2024, and for fiscal years thereafter. The Authority shall further
report the total number of filled resident positions and the number
of nursing graduates of the University of Oklahoma Health Sciences
Center compared to the baseline numbers for fiscal year 2021 as part
of the same report each year. The University Hospitals Trust shall

ENR. S. B. NO. 1877 Page 420
confirm for each fiscal year beginning in fiscal year 2023 that any
nonprofit entity which has entered into a joint operating agreement
with the Trust and is subject to the provisions of paragraph 30 of
Section 1356 of Title 68 of the Oklahoma Statutes has budgeted an
amount equal to or greater than the baseline amount for fiscal year
2021 for physician and nursing workforce development, and the Trust
shall verify that:

1. The nonprofit entity subject to these provisions has
increased funding to the University of Oklahoma Health Sciences
Center College of Medicine in a sufficient amount to support seventy
additional medical residency positions by fiscal year 2025 than the
baseline amount supported in fiscal year 2021;

2. The nonprofit entity subject to these provisions has
increased funding to the University of Oklahoma Health Sciences
Center College of Nursing in a sufficient amount to support fifty
additional Nurse Practitioner graduates by fiscal year 2026 than the
baseline amount supported in fiscal year 2021; and

3. The nonprofit entity subject to these provisions has
increased funding to the University of Oklahoma Health Sciences
Center College of Nursing in a sufficient amount to support one
hundred ten additional Registered Nurse graduates by fiscal year
2024 than the baseline amount supported in fiscal year 2021.

SECTION 194. AMENDATORY 63 O.S. 2021, Section 3240.6, is
amended to read as follows:

Section 3240.6. A. The Community Hospitals Authority shall
have the power and duty to:

1. Adopt bylaws and promulgate rules for the regulation of its
affairs and the conduct of its business;

2. Adopt an official seal;

3. Maintain an office in one of the participating hospitals for
the Community Hospitals Authority at no cost to the Authority;

4. Sue and be sued;

ENR. S. B. NO. 1877 Page 421
5. Make and enter into all contracts necessary or incidental to
the performance of its duties and the execution of its powers
pursuant to the Community Hospitals Authority Act;

6. Purchase or lease equipment, furniture, materials, and
supplies, and incur such other expenses as may be necessary to
discharge its duties and responsibilities or to make any of its
powers effective;

7. Accept any and all grants from persons and from the United
States of America, or from any corporation or agency created or
designed by the United States of America, and, in connection with
any such grant, to enter into such agreements as the United States
of America or such corporation or agency may require;

8. Accept grants and gifts from private individuals and
organizations;

9. Provide for complete financial audits on all accounts of the
Community Hospitals Authority and to authorize periodic audits by an
independent external auditing agency. Such audits shall be
performed annually in a format approved by the State Auditor and
Inspector, and all such audits shall be submitted to the State
Auditor and Inspector for review. Such audits shall be made in
accordance with generally accepted auditing standards and government
auditing standards. Financial statements shall be prepared in
accordance with generally accepted accounting principles. In
addition to the audits, the State Auditor and Inspector, whenever
the State Auditor deems it appropriate, and at least once each five
(5) years, or upon receipt of a request to do so from the Governor,
the Attorney General, the President Pro Tempore of the Senate, the
Speaker of the House of Representatives or the Authority shall
conduct a special audit of the Authority;

10. Engage in long-term planning for the operation and
management of the Community Hospitals Authority;

11. Establish petty cash funds and provide for appropriate
accounting procedures and controls; and

12. Do all other things necessary and proper to implement the
provisions of the Community Hospitals Authority Act.

ENR. S. B. NO. 1877 Page 422

B. The Community Hospitals Authority shall be subject to the
Oklahoma Budget Law of 1947.

C. The Authority shall prepare monthly a “budget vs. actual”
report which shows by budget activity the monthly and year-to-date
revenues and expenditures compared to budgeted revenues and
expenditures. Such report shall be electronically submitted to the
Office of Management and Enterprise Services and to the directors of
the Fiscal Divisions of the State Senate and the Oklahoma House of
Representatives utilizing the centralized filing system provided for
in Section 378 of this act.

D. The Authority shall be subject to the professional risk
management program provided for in Section 85.58A of Title 74 of the
Oklahoma Statutes.

E. The Authority shall be and is prohibited from issuing bonds
or other evidences of indebtedness.

F. The Authority shall be and is prohibited from acquiring any
real property.

SECTION 195. AMENDATORY 63 O.S. 2021, Section 3240.7, is
amended to read as follows:

Section 3240.7. The Community Hospitals Authority shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit an annual report to the Governor,
the President Pro Tempore of the Senate and the Speaker of the House
of Representatives. Such report shall be submitted in accordance
with the requirements for financial statement audits in Section 212A
of Title 74 of the Oklahoma Statutes, and shall include an account
of the operations and actions of the Authority and an accounting of
all revenue received and disbursed by the Authority for the previous
fiscal year. The report shall include an accounting of expenses
related to the care and treatment of indigent persons for whom the
Authority receives any form of state or federal reimbursement.

SECTION 196. AMENDATORY 63 O.S. 2021, Section 3250.6, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 423
Section 3250.6. A. 1. Each community hospital public trust
authority shall be a governmental entity and a body politic and
corporate with powers of government and with authority to establish
and operate a hospital district and to exercise the rights,
privileges and functions specified by the Oklahoma Community
Hospitals Public Trust Authorities Act and Sections 176 through
180.3 of Title 60 of the Oklahoma Statutes.

2. Nothing in this subsection shall be construed as authorizing
any hospital district to levy or collect taxes or to pledge the
credit of the state or any subdivision of this state.

B. Each community hospital public trust authority shall have
the power to:

1. Adopt bylaws and promulgate rules for the regulation of its
affairs and the conduct of its business;

2. Adopt an official seal;

3. Act as a vehicle for securing funds for education, indigent
medical care, trauma, emergency, and other health care services;

4. Coordinate the delivery and efficiency of health care
services within the hospital district established pursuant to the
Oklahoma Community Hospitals Public Trust Authorities Act;

5. Sue and be sued;

6. Make and enter into all contracts necessary or incidental to
the performance of its duties and the execution of its powers
pursuant to the Oklahoma Community Hospitals Public Trust
Authorities Act;

7. Purchase or lease equipment, furniture, materials, and
supplies, and incur such other expenses as may be necessary to
discharge its duties and responsibilities or to implement the
provisions of the Oklahoma Community Hospitals Public Trust
Authorities Act;

8. Accept grants and other funds from agencies of this state
and the United States of America, from other government entities, or

ENR. S. B. NO. 1877 Page 424
from any corporation or agency created or designed by the United
States or other government entity, and to enter into such agreements
as the United States or such corporation or agency may require;

9. Accept grants and gifts from private individuals and
organizations;

10. Accept and make intergovernmental transfers authorized by
state law. A hospital district may make intergovernmental transfers
to the Oklahoma Health Care Authority to the extent permitted by
state or federal law;

11. Issue bonds and other evidences of indebtedness, and to
secure the payment thereof by mortgage, pledge, or deed of trust of,
or any other encumbrance upon, any or all of its then-owned or
after-acquired real or personal property, assets, franchises, or
revenues;

12. Become a member of other cooperatives, joint ventures,
partnerships, corporations, or other legal entities or to own stock
therein;

13. Conduct its business and exercise its powers within or
without this state;

14. Assess fees, levies, assessments, or charges upon and
enforce the payment of such fees, levies, assessments, or charges
against any hospital located within the geographical boundaries of
its hospital district and to remit such monies to the Oklahoma
Health Care Authority for purposes of meeting the state’s share for
the supplemental Medicaid programs to the extent and manner
authorized by federal law. Fees, levies, assessments, or charges
may be enforced by a community hospital public trust authority
through civil action brought in the district court in the county in
which the community hospital public trust authority is located;

15. Appoint officers, agents, and employees, prescribe their
duties and fix their compensation;

16. Engage in long-term planning for the operation and
management of a community hospital public trust authority;

ENR. S. B. NO. 1877 Page 425
17. Establish petty cash funds as needed and provide for
appropriate accounting procedures and controls; and

18. Do all other things necessary and proper to implement the
provisions of the Oklahoma Community Hospitals Public Trust
Authorities Act.

C. No director or officer of a community hospital public trust
authority shall vote on any issue before the authority in which such
director or officer has a direct interest in any contract or for any
work by or for the community hospital public trust authority.

D. The trustees of each community hospital public trust
authority created pursuant to the Oklahoma Community Hospitals
Public Trust Authorities Act shall make and adopt bylaws for the due
and orderly administration and regulation of the affairs of the
community hospital public trust authority. All bylaws and
amendments thereto of a community hospital public trust authority
shall be electronically submitted in writing to each beneficiary of
the community hospital public trust authority, the Governor of this
state and to, the Speaker of the Oklahoma House of Representatives,
and the President Pro Tempore of the State Senate utilizing the
centralized filing system provided for in Section 378 of this act.

E. No appropriation of state funds shall be made to any
community hospital public trust authority. Each authority may
receive the funds it may be entitled to receive pursuant to the
Medicaid program as administered by the Oklahoma Health Care
Authority.

F. Each community hospital public trust authority shall comply
with:

1. The annual budget provisions of the state requiring a
balanced budget. A copy of the budget shall be submitted annually
to the Governor and to each beneficiary of the community hospital
public trust authority;

2. The Public Competitive Bidding Act of 1974;

3. The Oklahoma Open Records Act;

ENR. S. B. NO. 1877 Page 426
4. The Oklahoma Open Meeting Act; and

5. The provisions of Sections 176 through 180.3 of Title 60 of
the Oklahoma Statutes and the Community Hospitals Public Trust
Authorities Act.

G. 1. Each community hospital public trust authority shall
provide for complete financial audits on all accounts of the
community hospital public trust authority and authorize periodic
audits by an independent external auditing agency. Such audits
shall be performed annually in a format approved by the State
Auditor and Inspector. The audits shall be made in accordance with
generally accepted auditing standards and government auditing
standards. Financial statements shall be prepared in accordance
with generally accepted accounting principles. Such audits shall be
submitted to the State Auditor and Inspector and to the beneficiary
of the community hospital public trust authority for review.

2. In addition to the audits specified by this subsection, the
State Auditor and Inspector, whenever the State Auditor and
Inspector deems it appropriate, and at least once each five (5)
years, or upon receipt of a request to do so from the beneficiary of
a community hospital public trust authority, the Governor, the
Attorney General, the President Pro Tempore of the Senate, the
Speaker of the House of Representatives or the community hospital
public trust authority shall conduct a special audit of the
authority. Such audit shall be paid from the funds of the community
hospital public trust authority.

H. 1. Except for acts of dishonesty, no trustee of a community
hospital public trust authority shall be charged personally with any
liability whatsoever by reason of any act or omission committed or
suffered in the performance of such trust or in the operation of the
trust property.

2. A community hospital public trust authority established
pursuant to the provisions of the Oklahoma Community Hospitals
Public Trust Authorities Act shall be covered by The Governmental
Tort Claims Act.

3. Officers, employees, agents, independent contractors, and
employees of independent contractors of hospitals participating in

ENR. S. B. NO. 1877 Page 427
the hospital district shall not be covered by The Governmental Tort
Claims Act. The provisions of this paragraph shall not affect the
immunity provided to hospitals or to officers and employees of
hospitals covered by Section 152 of Title 51 of the Oklahoma
Statutes.

4. In no event shall the state, county, or municipality be
construed to be or become liable for any act, omission, or
obligation of a trustee or of the community hospital public trust
authority.

I. A community hospital public trust authority may be
terminated by agreement of the trustees of this state; provided,
that such community hospital public trust authority shall not be
terminated while there exists any outstanding contractual
obligations chargeable against the trust property.

J. 1. Compliance with the provisions of Sections 176 through
180.3 of Title 60 of the Oklahoma Statutes and the Oklahoma
Community Hospitals Public Trust Authorities Act by a community
hospital public trust authority shall be and constitute a binding
contract with the county or counties and municipality beneficiaries
for the acceptance of the beneficial interest in the trust property
by the designated beneficiary and the application of the proceeds of
the trust property and its operation for the purposes, and in
accordance with the stipulations, of the public trust instrument.

2. Each community hospital public trust authority shall be the
regularly constituted authority of the beneficiary for the
performance of the functions for which the community hospital public
trust authority shall have been created.

K. 1. A community hospital public trust authority shall have
the power and duty to make and issue bonds and to pledge revenues of
the community hospital public trust authority subject to the
Oklahoma Bond Oversight and Reform Act. Nothing in the Oklahoma
Community Hospitals Public Trust Authorities Act shall authorize the
issuance of any bonds by a community hospital public trust authority
payable other than from revenues of the community hospital public
trust authority.

ENR. S. B. NO. 1877 Page 428
2. Community hospital public trust authority revenue bonds
issued under the provisions of this subsection shall not at any time
be deemed to constitute a debt of the state or of any political
subdivision thereof or a pledge of the faith and credit of the state
or of any political subdivision, but such bonds shall be payable
solely from the funds herein provided.

3. Such revenue bonds shall contain on the face thereof a
statement to the effect that neither the state nor the community
hospital public trust authority shall be obligated to pay the same
or the interest thereon except from the revenues of the project or
projects for which they are issued and that neither the faith and
credit nor the taxing power of the state or any political
subdivision thereof is pledged, or may hereafter be pledged, to the
payment of the principal of or the interest on such bonds.

4. The interest income derived from any obligation issued by a
community hospital public trust authority shall be exempt from the
tax imposed pursuant to Section 2355 of Title 68 of the Oklahoma
Statutes.

SECTION 197. AMENDATORY 63 O.S. 2021, Section 3250.7, is
amended to read as follows:

Section 3250.7. Each community hospital public trust authority
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit an annual report to
each beneficiary of the authority, the Governor, the President Pro
Tempore of the State Senate, and the Speaker of the Oklahoma House
of Representatives. Such report shall be submitted in accordance
with the requirements for financial statement audits in Section 212A
of Title 74 of the Oklahoma Statutes, and shall include an account
of the operations and actions of the authority and an accounting of
all revenue received and disbursed by the authority for the previous
fiscal year.

SECTION 198. AMENDATORY 63 O.S. 2021, Section 3276, as
amended by Section 2, Chapter 334, O.S.L. 2023 (63 O.S. Supp. 2025,
Section 3276), is amended to read as follows:

Section 3276. A. The Oklahoma State University Medical
Authority shall have the power and duty to:

ENR. S. B. NO. 1877 Page 429

1. Adopt bylaws and promulgate rules for the regulation of its
affairs and the conduct of its business;

2. Adopt an official seal;

3. Maintain an office at a location to be determined by the
Authority;

4. Sue and be sued, subject to the provisions of The
Governmental Tort Claims Act;

5. Enter into cooperative agreements with the Board of Regents
for the Oklahoma Agricultural and Mechanical Colleges for
educational programs, professional staffing, research, and other
medical activities;

6. Make and enter into all contracts necessary or incidental to
the performance of its duties and the execution of its powers
pursuant to the Oklahoma State University Medical Authority Act;

7. Purchase or lease equipment, furniture, materials, and
supplies, and incur such other expenses as may be necessary to
maintain and operate hospitals or clinics, or to discharge its
duties and responsibilities or to make any of its powers effective;

8. Acquire by purchase, lease, gift, or by any other manner,
and to maintain, use, and operate or to contract for the
maintenance, use and operation of or lease of any and all property
of any kind, real, personal, or mixed or any interest therein unless
otherwise provided by the Oklahoma State University Medical
Authority Act;

9. Appoint such officers, agents, and employees, including but
not limited to attorneys, as it deems necessary and to prescribe
their duties and to fix their compensation;

10. Accept grants from the United States of America, or from
any corporation or agency created or designed by the United States
of America, and, in connection with any grant, to enter into such
agreements as the United States of America or such corporation or
agency may require;

ENR. S. B. NO. 1877 Page 430

11. Make and issue bonds and to pledge revenues of the
Authority subject to the Oklahoma Bond Oversight and Reform Act.
Nothing in the Oklahoma State University Medical Authority Act shall
authorize the issuance of any bonds of the Authority payable other
than from revenues of the Authority. Funds appropriated to the
Authority shall not be used for issuance of bonds. Authority
revenue bonds issued under the provisions of this act shall not at
any time be deemed to constitute a debt of the state or of any
political subdivision thereof or a pledge of the faith and credit of
the state or of any political subdivision, but such bonds shall be
payable solely from the funds herein provided. Such revenue bonds
shall contain on the face thereof a statement to the effect that
neither the state nor the Authority shall be obligated to pay the
same or the interest thereon except from the revenues of the project
or projects for which they are issued and that neither the faith and
credit nor the taxing power of the state or any political
subdivision thereof is pledged, or may hereafter be pledged, to the
payment of the principal of or the interest on such bonds. The
maximum amount of outstanding bonds at any time shall not exceed
Fifty Million Dollars ($50,000,000.00) unless a greater amount is
expressly approved by the Legislature by a concurrent resolution
adopted prior to commencing any action in anticipation of issuance
of revenue bonds of the Oklahoma State University Medical Authority
for the greater amount;

12. Provide for complete financial audits on all accounts of
the Oklahoma State University Medical Authority and to authorize
periodic audits by an independent external auditing agency. Such
audits shall be performed annually in a format approved by the State
Auditor and Inspector, and all such audits shall be submitted to the
State Auditor and Inspector for review. Such audits shall be made
in accordance with generally accepted auditing standards and
government auditing standards. Financial statements shall be
prepared in accordance with generally accepted accounting
principles. In addition to said audits, whenever the State Auditor
and Inspector deems it appropriate, and at least once each five (5)
years, or upon receipt of a request to do so from the Governor, the
Attorney General, the President Pro Tempore of the Oklahoma State
Senate, the Speaker of the Oklahoma House of Representatives or the
Authority, the State Auditor and Inspector shall conduct a special
audit of the Authority;

ENR. S. B. NO. 1877 Page 431

13. Engage in long-term planning for the operation and
management of the Authority;

14. Establish petty cash funds and provide for appropriate
accounting procedures and controls;

15. Contract with national manufacturers and distributors of
drugs and medical supplies when appropriate to carry out the
purposes of this act;

16. Provide funding to other entities for purposes related to
public health, teaching, research, and the purposes of the Oklahoma
State University Medical Authority Act when provided funding for
such purposes by the Legislature;

17. Do all other things necessary and proper to implement the
provisions of the Oklahoma State University Medical Authority Act;

18. Waive, by such means as the Authority deems appropriate,
the exemption from federal income taxation of interest on the
Authority’s bonds provided by the Internal Revenue Code of 1986, as
amended, or any other federal statute providing a similar exemption;

19. Arrange for guaranties or insurance of its bonds by the
federal government or by any private insurer, and to pay any
premiums therefor; and

20. Make a declaration of necessity as provided in Section 3273
of this title. The Authority may, in its exclusive judgment, make a
declaration of necessity when such a declaration is deemed necessary
to effectuate the purposes of the Oklahoma State University Medical
Authority Act.

B. The Oklahoma State University Medical Authority shall be
subject to the Oklahoma Budget Law of 1947.

C. The Authority shall prepare monthly a “budget vs. actual”
report which shows by budget activity the monthly and year-to-date
revenues and expenditures compared to budgeted revenues and
expenditures. Such report shall be electronically submitted to the
Office of Management and Enterprise Services and to the Directors of

ENR. S. B. NO. 1877 Page 432
the House of Representatives Fiscal Division and the Senate Fiscal
Division utilizing the centralized filing system provided for in
Section 378 of this act.

D. The Authority shall be subject to the professional risk
management program provided for in Section 85.58A of Title 74 of the
Oklahoma Statutes.

SECTION 199. AMENDATORY Section 1, Chapter 112, O.S.L.
2023, as amended by Section 1, Chapter 295, O.S.L. 2024 (63 O.S.
Supp. 2025, Section 3278.1), is amended to read as follows:

Section 3278.1. A. There is hereby created in the State
Treasury a revolving fund for the Oklahoma State University Medical
Authority to be designated the “Oklahoma State University Medical
Authority Behavioral Health Workforce Development Fund”. The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of appropriated revenues and private endowments.
All monies accruing to the credit of said fund are hereby
appropriated and may be budgeted and expended by the Oklahoma State
University Medical Authority for the purpose of designing and
implementing a pilot program at behavioral health facilities, the
purpose of which is to provide for behavioral health workforce
development and access to behavioral health professionals as
provided by law. The purpose of the pilot program includes, but is
not limited to, bed conversion and new beds; renovations at
behavioral health facilities to accommodate new licensed acute or
residential treatment beds; reallocation of beds from adult acute to
child/adolescent acute beds; relocation assistance for licensed
behavioral health staff currently living out of state; upskilling
existing behavioral health workforce; adding new psychiatric and
psychological residencies, internships and post-doctoral training
programs; providing social work scholarships; providing mental
health nursing scholarships; creating one-time private-sector
workforce innovation grants; providing licensure preparation
assistance; and creating a behavioral health trauma fund for
intensive home and community-based services. Expenditures from the
fund shall be made upon warrants issued by the State Treasurer
against claims filed as prescribed by law with the Director of the
Office of Management and Enterprise Services for approval and
payment.

ENR. S. B. NO. 1877 Page 433
B. There is hereby created in the State Treasury a revolving
fund for the University Hospitals Authority to be designated the
“University Hospitals Authority Behavioral Health Workforce
Development Fund”. The fund shall be a continuing fund, not subject
to fiscal year limitations, and shall consist of appropriated
revenues and private endowments. All monies accruing to the credit
of said fund are hereby appropriated and may be budgeted and
expended by the University Hospitals Authority for the purpose of
designing and implementing a pilot program at behavioral health
facilities, the purpose of which is to provide for behavioral health
workforce development and access to behavioral health professionals
as provided by law. The purpose of the pilot program includes, but
is not limited to, bed conversion and new beds; renovations at
behavioral health facilities to accommodate new licensed acute or
residential treatment beds; reallocation of beds from adult acute to
child/adolescent acute beds; relocation assistance for licensed
behavioral health staff currently living out of state; upskilling
existing behavioral health workforce; adding new psychiatric and
psychological residencies, internships and post-doctoral training
programs; providing social work scholarships; providing mental
health nursing scholarships; creating one-time private-sector
workforce innovation grants; providing licensure preparation
assistance; and creating a behavioral health trauma fund for
intensive home and community-based services. Expenditures from the
fund shall be made upon warrants issued by the State Treasurer
against claims filed as prescribed by law with the Director of the
Office of Management and Enterprise Services for approval and
payment.

C. The Oklahoma State University Medical Authority and the
University Hospitals Authority shall prepare and, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit a report for to the Legislature on the results
of the first year of funding, including the number of professionals
retained and recruited, and the expected benefits of the program.
The report shall be electronically delivered to the relevant health
care committee and appropriations subcommittee chairs following the
first full year of implementation utilizing the centralized filing
system provided for in Section 378 of this act.

SECTION 200. AMENDATORY 63 O.S. 2021, Section 3285, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 434

Section 3285. The Oklahoma State University Medical Authority
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit an annual report to
the Governor, the President Pro Tempore of the Senate and the
Speaker of the House of Representatives. Such report shall be
submitted in accordance with the requirements for financial
statement audits in Section 212A of Title 74 of the Oklahoma
Statutes, and shall include an account of the operations and actions
of the Authority and an accounting of all revenue received and
disbursed by the Authority for the previous fiscal year. The report
shall include an accounting of expenses related to each of the
following:

1. Education and training of students of the Oklahoma State
University, resident physicians and others;

2. Care and treatment of patients for whom the Authority
receives any form of state or federal reimbursement; and

3. Research.

SECTION 201. AMENDATORY 63 O.S. 2021, Section 3290, as
amended by Section 3, Chapter 334, O.S.L. 2023 (63 O.S. Supp. 2025,
Section 3290), is amended to read as follows:

Section 3290. A. The State of Oklahoma expressly approves the
creation of a public trust to be named the “Oklahoma State
University Medical Trust”, of which the State of Oklahoma shall be
the beneficiary, provided such approval shall be contingent upon
satisfaction of the following conditions:

1. Finalizing of the declaration of trust;

2. Adoption of the declaration of trust by an official action
of the trustees of the Trust;

3. Submission of the Trust for acceptance of the beneficial
interest and approval as required by Section 177 of Title 60 of the
Oklahoma Statutes; and

4. The approved declaration of trust shall:

ENR. S. B. NO. 1877 Page 435

a. clearly state that the principal purpose of the
Oklahoma State University Medical Trust is to
effectuate the purposes of the Oklahoma State
University Medical Authority as established in the
Oklahoma State University Medical Authority Act,

b. except as otherwise provided by law, provide that the
title to real property held by the Oklahoma State
University Medical Authority shall not be transferred,
conveyed, or assigned to the Oklahoma State University
Medical Trust without the express consent of the
Legislature as the governing entity of the beneficiary
pursuant to Section 176 of Title 60 of the Oklahoma
Statutes,

c. provide that any indebtedness incurred by the Oklahoma
State University Medical Trust or the trustees of the
Trust shall not be secured with or create a lien upon
real property to which title is held by the Oklahoma
State University Medical Authority and shall not
involve the bonding capacity of the Oklahoma State
University Medical Authority,

d. provide that the trust estate of the Oklahoma State
University Medical Trust shall not include fee simple
title to real property owned by the Oklahoma State
University Medical Authority,

e. clearly state that the creation of the Oklahoma State
University Medical Trust shall not in any way reduce,
limit, or interfere with the power granted to the
Oklahoma State University Medical Authority in the
Oklahoma State University Medical Authority Act,

f. provide that any lease or contractual agreement
involving use of the real property to which title is
held by the Oklahoma State University Medical
Authority and any improvements thereto shall contain a
provision and covenants requiring the proper
maintenance and upkeep of the real property and
improvements,

ENR. S. B. NO. 1877 Page 436

g. provide that the trustees of the Oklahoma State
University Medical Trust shall be the acting members
of the Oklahoma State University Medical Authority as
provided in the Oklahoma State University Medical
Authority Act, and

h. provide that the trustees of the Oklahoma State
University Medical Trust shall have the duty to
electronically submit an annual report to the
Governor, the President Pro Tempore of the Oklahoma
State Senate, and the Speaker of the Oklahoma House of
Representatives utilizing the centralized filing
system provided for in Section 378 of this act. The
report shall be submitted by January 1 of each year
and shall include an account of all operations,
actions of the Trust, account of all revenue received
and disbursed by the Trust for the previous fiscal
year. The report shall also provide a complete
accounting of how the Trust meets its primary function
of effectuating the purposes of the Oklahoma State
University Medical Authority, as established in the
Oklahoma State University Medical Authority Act.

B. The Oklahoma State University Medical Trust shall require
any agreements which it enters into with any entity pursuant to
Section 3292 of this title for the operations of facilities leased
by the Oklahoma State University Medical Authority to the Trust to
include, but not be limited to:

1. The inclusion of all the members of the Trust, except the
Chief Executive Officer of the Oklahoma Health Care Authority, as
five of the six members representing the State of Oklahoma in a
governing committee, and the sixth member of the governing committee
representing the State of Oklahoma to be designated by the President
of Oklahoma State University;

2. Binding arbitration shall not be required by such agreements
for resolving issues under consideration by the governing committee;
and

ENR. S. B. NO. 1877 Page 437
3. Major decisions shall be resolved by the governing
committee, and approval of any major decision by the governing
committee must shall include the approval of a majority of the state
appointees and the approval of a majority of the private entity
appointees to the governing committee. Major decisions shall
include:

a. approval of the operating and capital budgets,

b. sale or disposition of assets over Five Hundred
Thousand Dollars ($500,000.00),

c. the termination or transfer or material addition or
material diminution of medical services at the
Oklahoma State University Medical Center related to
and part of a teaching program of the Oklahoma State
University Center for Health Sciences, and

d. other major decisions as may be agreed upon by the
Trust and the private entity.

C. To the extent it is determined by legislative enactment that
the Trust has expended funds in contravention of its mission as set
forth in this section, the Trust shall remit, upon thirty (30) days’
written notice from the Oklahoma State University Medical Authority,
such sum or sums to the Oklahoma State University Medical Authority.

D. In the event the Trust enters into a joint venture or
acquires an interest in a not-for-profit entity to effectuate the
administration of the mission of the Trust, that entity shall not be
subject to the Oklahoma Open Meeting Act and the Oklahoma Open
Records Act. Any information submitted to or compiled by the Trust
with respect to marketing plans, financial statements, trade
secrets, research concepts, methods, or products or any other
proprietary information submitted to or compiled by the Trust,
persons, firms, associations, partnerships, agencies, corporations,
institutions of higher education, nonprofit research institutions,
or other entities shall be confidential, except to the extent that
the person or entity which provided such information or which is the
subject of such information consents to disclosure. Executive
sessions may be held to discuss such materials if deemed necessary
by the Trust. The provisions of this subsection shall not apply to

ENR. S. B. NO. 1877 Page 438
budgetary information related to appropriations or the
appropriations process.

SECTION 202. 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.

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. 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. Adopt, publish, and, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit 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

ENR. S. B. NO. 1877 Page 439
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
action. Official action of the Board must shall 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 203. AMENDATORY 63 O.S. 2021, Section 5010, is
amended to read as follows:

Section 5010. A. The Oklahoma Health Care Authority shall
analyze the state-purchased and state-subsidized health care
programs and explore options for cost containment and delivery
alternatives for those programs that are consistent with the
purposes of those programs, including, but not limited to:

1. Creation of economic incentives for the persons for whom the
state purchases or subsidizes health care to appropriately utilize
and purchase health care services, including the development of
flexible benefit plans to offset increases in individual financial
responsibility;

2. Utilization of provider arrangements that encourage cost
containment and ensure access to quality care, including, but not
limited to, prepaid delivery systems, utilization review, and
prospective payment methods;

3. Coordination of state agency efforts to purchase drugs
effectively;

ENR. S. B. NO. 1877 Page 440
4. Development of recommendations and methods for purchasing
medical equipment and supporting services on a volume discount
basis; and

5. Development of data systems to obtain utilization data from
state-purchased and state-subsidized health care programs in order
to identify cost centers, utilization patterns, provider and
hospital practice patterns, and procedure costs.

B. 1. The Authority shall prepare for and, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit to the Governor, the Legislature, and the
Joint Legislative Oversight Committee for the Oklahoma Health Care
Authority an annual report on the savings realized and all costs
incurred in the implementation of any drug cost containment programs
including, but not limited to:

a. development and implementation of a drug prior
authorization list, and

b. other uses of prior authorizations.

2. Costs shall include direct costs such as staffing, contracts
and other resources used.

SECTION 204. AMENDATORY 63 O.S. 2021, Section 5013, is
amended to read as follows:

Section 5013. A. The Authority shall serve as a resource for
information on state-purchased and state-subsidized health care
access, cost containment, and related health issues, and shall:

1. Provide data and information required by the Governor, the
Legislature, or its committees, and to state agencies, institutions
of higher education and cities, towns, counties, and school
districts and to private citizens and groups, within the limitations
of the resources available to the Authority;

2. Participate with any state agency or institution of higher
education in developing specific goals, programs, and performance
monitoring systems to assist in the development of health care
delivery in this state;

ENR. S. B. NO. 1877 Page 441

3. Conduct or contract for studies which are related to health
care delivery, involving product or process innovation; and

4. Prepare, publish, and distribute such studies, reports,
bulletins and other materials as it considers appropriate regarding
health care studies and other relevant health care topics.
Provided, that a copy of any material which evaluates health plans
or health care providers shall be electronically provided to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate at least sixty (60) days prior
to public dissemination utilizing the centralized filing system
provided for in Section 378 of this act.

SECTION 205. AMENDATORY Section 1, Chapter 162, O.S.L.
2022 (63 O.S. Supp. 2025, Section 5026.1), is amended to read as
follows:

Section 5026.1. A. The Oklahoma Health Care Authority shall
conduct an annual review of all medications and forms of treatment
for sickle cell disease and services for enrollees with a diagnosis
of sickle cell disease. The purpose of the annual review is to
determine if the available covered medications, treatments, and
services are adequate to meet the needs of enrollees with a
diagnosis of sickle cell disease, and whether the Authority should
seek to add or recommend additional medications, treatments, or
services.

B. The review shall include, but not be limited to:

1. The extent to which healthcare transitional programs covered
under the state Medicaid program prepare, transfer, and integrate
emerging adults into the adult care setting from a pediatric
setting;

2. The extent to which emergency department providers are
adequately trained and otherwise prepared to treat and manage sickle
cell patients presenting with vaso-occlusive crises including but
not limited to the extent to which providers follow clinically
validated algorithms and protocols regarding such treatment and
management;

ENR. S. B. NO. 1877 Page 442
3. The extent to which sickle cell patients covered under the
state Medicaid program are entitled to receive the same standard of
care when referred or transferred to an out-of-state facility, and
the extent to which the state reimburses such patients for
reasonable interstate travel costs; and

4. Any additional areas identified by the Authority that impact
the care and treatment of individuals in this state living with
sickle cell disease or sickle cell trait.

C. When conducting the annual review required by this section,
the Authority shall solicit and consider input from the general
public, with specific emphasis on seeking input from persons or
groups with knowledge and experience in the area of sickle cell
disease treatment.

D. To the extent practicable, the Authority shall utilize the
Oklahoma State Health Information Network and Exchange created under
Section 1-133 of Title 63 of the Oklahoma Statutes to collect
information for the purpose of implementing this section.

E. On or before January 15, 2023, and on or before January 15
each year thereafter, the Authority shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a report to the President Pro Tempore of the
Senate and the Speaker of the House of Representatives for
distribution to the appropriate subject matter committees that
details the Authority’s findings from the annual review required by
this section and any recommendations to the Legislature based upon
those findings. The Authority shall publish the annual report
required by this subsection to its website in a manner accessible by
the general public.

SECTION 206. AMENDATORY 63 O.S. 2021, Section 5061.2, is
amended to read as follows:

Section 5061.2. A. There is hereby created in the State
Treasury a revolving fund for the Oklahoma Health Care Authority to
be designated the “I/T/U Shared Savings Revolving Fund”. The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all monies received by the Authority pursuant
to this act and otherwise specified or authorized by law.

ENR. S. B. NO. 1877 Page 443

All monies accruing to the credit of the fund are hereby
appropriated and shall be budgeted and expended by the Authority to
increase Medicaid provider rates, unless otherwise provided by law.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.

B. An annual report shall be prepared by the Authority’s Chief
Financial Officer and shall be electronically submitted to the
Governor, the President Pro Tempore of the Senate and the Speaker of
the House of Representatives no later than thirty (30) days
following the end of each State Fiscal Year utilizing the
centralized filing system provided for in Section 378 of this act.
The annual report shall account for:

1. The savings realized by the Authority as a result of the
I/T/U Shared Savings Program;

2. The administrative costs incurred by the Authority as a
result of the I/T/U Shared Savings Program;

3. The monies distributed to participating I/T/U facilities as
a result of I/T/U Shared Savings Program including, but not limited
to, a summary of all specific distributions;

4. The balance of savings realized by the Authority as a result
of the I/T/U Shared Savings Program and accruing to the credit of
the fund after payment of administrative costs and distributions to
participating I/T/U facilities; and

5. The monies expended on increasing Medicaid provider rates
including, but not limited to, identification of the types of
providers affected and the percentage by which the providers’ rates
were increased.

SECTION 207. AMENDATORY 63 O.S. 2021, Section 7301, as
amended by Section 1, Chapter 328, O.S.L. 2023 (63 O.S. Supp. 2025,
Section 7301), is amended to read as follows:

ENR. S. B. NO. 1877 Page 444
Section 7301. A. The Oklahoma Health Care Authority and the
State Department of Health shall collaborate to identify benchmarks
and develop goals to reduce the incidence rates of, improve health
care services for, and control complications resulting from
diabetes.

B. The Authority and the Department shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit a report to the President Pro Tempore of the
Senate, the Speaker of the House of Representatives, and the
Governor by January 10 of every fifth year. Such report shall
contain the following information:

1. The fiscal impact of all types of diabetes on the Authority,
the Department, and county health departments including the number
of persons with diabetes receiving services through the Authority,
the Department, and county health departments;

2. The fiscal impact of diabetes on the Authority, the
Department, and county health departments in comparison to other
chronic diseases;

3. An assessment of the benefits of diabetes prevention
programs including a summary of funding directed to the Authority
and the Department from the Legislature;

4. A description of coordination between the Authority and the
Department including, but not limited to, programs relating to the
treatment and prevention of all forms of diabetes;

5. Detailed action plans for battling diabetes with actionable
items for consideration by the Legislature including, but not
limited to, steps to reduce the impact of diabetes, pre-diabetes,
and related diabetes complications;

6. Identification of expected outcomes of the action steps and
benchmarks for controlling and preventing all forms of diabetes; and

7. The development of a detailed budget blueprint identifying
needs, costs, and resources required to implement the plan provided
for in this section. Such blueprint shall include a budget range

ENR. S. B. NO. 1877 Page 445
for all options presented in the plan for consideration by the
Legislature.

C. In addition to the complete report required by subsection B
of this section, the Authority or the Department shall, to the
extent practicable, provide components of the upcoming report as
listed in subsection B of this section upon request to the President
Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the Governor.

D. The provisions of this section shall be limited to diabetes
information, data, initiatives, and programs within the Authority
and the Department prior to November 1, 2015, unless there is
available funding for diabetes in each agency that may be used for
new research, data collection reporting, or other requirements of
this section.

SECTION 208. AMENDATORY 64 O.S. 2021, Section 1013, as
amended by Section 40, Chapter 228, O.S.L. 2022 (64 O.S. Supp. 2025,
Section 1013), is amended to read as follows:

Section 1013. A. The Commissioners of the Land Office shall be
responsible for the investment of the permanent school funds, other
educational funds, and public building funds solely in the best
interests of the current and future beneficiaries. The
Commissioners of the Land Office shall make investments:

1. For the exclusive purpose of:

a. providing maximum benefits to current and future
beneficiaries, and

b. defraying reasonable expenses of administering the
trust funds;

2. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
enterprise of a like character and with like aims would use; and

3. By diversifying the investments of the trust funds so as to
minimize the risk of large losses.

ENR. S. B. NO. 1877 Page 446
B. The permanent school fund and other educational funds may
only be invested in bonds issued in the United States, United States
dollar denominated or other investments settled in United States
dollars or traded on the United States exchange markets and real
property to be owned or acquired by the Commissioners of the Land
Office. The Commissioners of the Land Office shall not invest more
than sixty percent (60%) of the trust fund investments in equity
securities. The Commissioners of the Land Office are further
authorized to acquire, purchase, exchange and grant any real
property under its jurisdiction as is necessary to carry out the
investment in the real property. The Commissioners of the Land
Office shall not invest more than five percent (5%) of the total
value of the assets of the permanent school funds in connection with
investments in real property. The calculation of investments in
real property within the five percent (5%) cap shall not include the
value of real property under long-term lease to the State of
Oklahoma, agencies of the state or subdivisions thereof. In no case
shall the Commissioners of the Land Office bid against private-
sector bidders above the appraised value of any property to be
acquired.

C. The Commissioners shall establish an investment committee.
The investment committee shall be composed of not more than three
members of the Commissioners of the Land Office or their designees.
The committee shall make recommendations to the Commissioners of the
Land Office on all matters related to the choice of managers of the
assets of the funds, on the establishment of investment and fund
management guidelines, and in planning future investment policy.
The committee shall have no authority to act on behalf of the
Commissioners of the Land Office in any circumstances whatsoever.
No recommendations of the committee shall have effect as an action
of the Commissioners of the Land Office or take effect without the
approval of the Commissioners as provided by law. The Commissioners
shall promulgate and adopt on an annual basis an investment plan.
The investment plan shall state the criteria for selecting
investment managers, the allocation of assets among investment
managers, and established standards of investment and fund
management.

D. The Commissioners shall retain qualified investment managers
to provide for investment of the fund monies and for the management
of investment real property pursuant to the investment plan.

ENR. S. B. NO. 1877 Page 447
Investment managers shall be chosen by a solicitation of proposals
on a competitive bid basis pursuant to standards set by the
Commissioners. Subject to the investment plan, each investment
manager shall have full discretion in the management of the funds or
investment real property allocated to the investment managers. The
funds allocated to investment managers shall be actively managed by
them, which may include selling investments and realizing losses if
the action is considered advantageous to longer term return
maximization. Because of the total return objective, no distinction
shall be made for management and performance evaluation purposes
between realized and unrealized capital gains and losses.

E. The Commissioners shall take any measures they deem
appropriate to safeguard custody of securities and other assets of
the trusts.

F. By September 1 of each year, the Commissioners shall develop
a written investment plan for the trust funds.

G. The Commissioners shall compile a quarterly financial report
showing the performance of all the combined funds under their
control on a fiscal year basis. The report shall contain a list of
all investments made by the Commissioners and a list of any
commissions, fees or payments made for services regarding the
investments for that reporting period. The report shall be based on
market values and shall be compiled pursuant to uniform reporting
standards prescribed by the Oklahoma State Pension Commission for
all state retirement systems. The report shall be electronically
distributed to the Oklahoma State Pension Commission, the Cash
Management and Investment Oversight Commission, and the Legislative
Service Bureau utilizing the centralized filing system provided for
in Section 378 of this act.

H. Before January 1 of each year, the Commissioners shall
publish an annual report of all Trust operations, presented in a
simple and easily understood manner to the extent possible. The
report shall be electronically submitted to the Governor, the
Speaker of the House of Representatives, the President Pro Tempore
of the Senate, the State Department of Education, and each higher
education beneficiary utilizing the centralized filing system as
provided for in Section 378 of this act. The annual report shall
cover the operation of the Trusts during the past fiscal year

ENR. S. B. NO. 1877 Page 448
including income, disbursements, and the financial condition of the
Trusts at the end of each fiscal year on a cash basis. The annual
report shall also contain a summary of the assets of each trust and
current market value as of the report date.

I. The Cash Management and Investment Oversight Commission
shall review reports prepared by the Commissioners of the Land
Office pursuant to this subsection and shall make recommendations
regarding the investment strategies and practices, the development
of internal auditing procedures and practices and any other matters
as determined necessary and applicable.

J. The Commissioners of the Land Office shall select one or
more custodial banks to settle transactions involving the investment
of the funds under the control of the Commissioners of the Land
Office. The Commissioners of the Land Office shall review the
performance of each custodial bank at least once every year. The
Commissioners of the Land Office shall require a written competitive
bid every ten (10) years. The custodial bank shall have a minimum
of Five Hundred Million Dollars ($500,000,000.00) in assets to be
eligible for selection. Any out-of-state custodial bank shall have
a service agent in the State of Oklahoma so that service of summons
or legal notice may be had on the designated agent, and the bank
shall submit to the jurisdiction of Oklahoma state courts for
resolution of any and all disputes. In order to be eligible for
selection, the custodial bank shall allow electronic access to all
transaction and portfolio reports maintained by the custodial bank
involving the investment of state funds under control of the
Commissioners of the Land Office and to the Cash Management and
Investment Oversight Commission. The requirement for electronic
access shall be incorporated into any contract between the
Commissioners of the Land Office and the custodial bank. Neither
the Commissioners of the Land Office nor the custodial bank shall
permit any of the funds under the control of the Commissioners of
the Land Office or any of the documents, instruments, securities or
other evidence of a right to be paid money to be located in any
place other than within a jurisdiction or territory under the
control or regulatory power of the United States government.

SECTION 209. AMENDATORY 65 O.S. 2021, Section 3-114, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 449
Section 3-114. A. Every agency except institutions of higher
education, but specifically including any board of regents for
higher education, which issues a state publication shall immediately
file the publication electronically, in compliance with the
provision of any applicable section of Title 62 of the Oklahoma
Statutes that is related to submission of state publications. If a
state publication cannot be filed electronically, a maximum of
twenty-five copies shall be deposited with the Publications
Clearinghouse in lieu of the electronic filing and the agency shall
include an explanation of the reason the document cannot be filed
electronically.

B. Upon failure of an agency to comply with the provisions of
this section, the Director of the Department of Libraries shall
forward a written notice of the failure to the chief administrative
officer of the agency. The notice shall state a reasonable time,
not to exceed thirty (30) days, in which the agency shall fully
comply. Further failure to comply shall be electronically reported
in writing to the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, and the Attorney General
utilizing the centralized filing system provided for in Section 378
of this act. The Attorney General shall immediately institute
mandamus proceedings to secure compliance by the agency.

SECTION 210. AMENDATORY 66 O.S. 2021, Section 190, is
amended to read as follows:

Section 190. A. As it is immediately necessary for the safety
and welfare of the people, no railcar shall be brought to rest in a
position which blocks vehicular traffic at a railroad intersection
with a public highway or street for longer than ten (10) minutes.

B. Municipalities, county sheriffs, and the Oklahoma Highway
Patrol shall have the authority to issue a citation to any person or
corporation that violates a provision of this section. Such person
or corporation shall be subject to a fine of up to One Thousand
Dollars ($1,000.00) for each violation. Seventy-five percent (75%)
of the collected fine shall be deposited to the credit of the
general fund of the entity that issued the citation and the
remaining twenty-five percent (25%) shall be credited to the
Corporation Commission Revolving Fund established in Section 180.7
of Title 17 of the Oklahoma Statutes. A copy of the citation, along

ENR. S. B. NO. 1877 Page 450
with any information regarding train identification, shall be sent
to the Corporation Commission for enforcement of the penalty at a
hearing before an administrative law judge of the Commission. The
violating entity or individual may appeal the administrative law
judge’s decision to the Commission en banc. The Commission shall
annually deliver an electronic report detailing the number of
violations, number of rulings, number of appeals, and amount of
fines assessed under this section. Commission reports shall be
delivered to the Speaker of the Oklahoma House of Representatives,
the President Pro Tempore of the Oklahoma State Senate, and the
Governor utilizing the centralized filing system provided for in
Section 378 of this act. The Commission shall promulgate rules and
procedures to effectuate the provisions of this section.

C. 1. Railroads or other persons, firms or corporations
operating over tracks within the State of Oklahoma shall not block
vehicle traffic at any railroad grade crossing for a period of time
in excess of ten (10) minutes except if the train is moving in a
continuous forward or backward direction, or if the train is stopped
for an emergency condition, including an accident, derailment,
critical mechanical failure, track or bridge washout, storm, flood
or other emergency situation.

2. A one-time exception of up to, but not exceeding, ten (10)
additional minutes shall be authorized under the following
conditions:

a. when a train and its crew, operating under the rules
of the Federal Railroad Administration (FRA), are
unable to complete a switching maneuver while setting
out or picking up railcars within the ten (10) minutes
as set forth in paragraph 1 of this subsection,

b. when a train is stopped to allow the passage of a
second train and the stopped train has exhausted the
ten (10) minutes as set forth in paragraph 1 of this
subsection, or if the arrival of the second train is
imminent and separation and coupling of the stopped
train would result in further unnecessary blocking of
motor vehicle or pedestrian traffic, and

c. when a train is stopped for a red train signal.

ENR. S. B. NO. 1877 Page 451

3. When a train is cut or separated to prevent blocking of
motor vehicle traffic at a public crossing, and a working charging
station exists, the time required for recoupling a train and
performing air tests as required by the FRA shall not be considered
a violation of this section.

4. Every railroad shall be operated in such a manner as to
minimize obstruction of emergency vehicles at public highway grade
crossings.

SECTION 211. AMENDATORY 66 O.S. 2021, Section 304, as
amended by Section 556, Chapter 486, O.S.L. 2025 (66 O.S. Supp.
2025, Section 304), is amended to read as follows:

Section 304. A. The Department of Transportation is hereby
authorized and empowered:

1. To acquire, construct, reconstruct, repair, replace,
operate, and maintain railroad rights-of-way and trackage projects
at such locations and on such routes as it shall determine to be
feasible and economically sound;

2. To enter into agreements with the owners of operating
railroads for the acquisition and/or or use of railroad rights-of-
way and trackage on such terms, conditions, rates, or rentals as the
Department may consider to be in the best interests of the state;

3. To enter directly into agreements with owners of operating
railroads or persons intending to operate as common carriers by rail
to sell, lease, or sell by lease-purchase agreement any state-owned
railroad property on such terms, conditions or amounts as the
Department may consider to be in the best interests of the state and
to promote the purposes of the Railroad Revitalization Act;

4. Prior to the sale of any railroad asset owned by the State
of Oklahoma or the Department of Transportation, a process of
request for proposal shall be initiated by the Department of
Transportation with consultation by the Office of Management and
Enterprise Services. Upon the issue date of a request for proposal
regarding the sale of any railroad asset owned by the State of
Oklahoma or the Department of Transportation, interested parties

ENR. S. B. NO. 1877 Page 452
will have no less than ninety (90) days to provide a response.
Following the close of the ninety-day response period, the
Department of Transportation will conduct an evaluation of all
submitted proposals, utilizing all available resources, and the
Department of Commerce shall conduct an economic impact and/or or
activity study of all proposals. The Secretary of Transportation,
Secretary of Finance, Secretary of Commerce, Secretary of
Agriculture, and Secretary of Energy shall be responsible for
preparing a recommendation to the Transportation Commission, based
on its evaluation of all submitted proposals including the results
of the economic impact and/or or activity study, provided the
recommendation meets all other statutory requirements needed for
action by the Commission. The Secretary of Transportation,
Secretary of Finance, Secretary of Commerce, Secretary of
Agriculture, and Secretary of Energy will have up to ninety (90)
days, upon the closing date of the request for proposal, to present
its recommendation to the Transportation Commission. The
Transportation Commission will be responsible for determining if the
sale of railroad assets within its jurisdiction is in the best
interests of the State of Oklahoma and for authorizing the sale of
such assets. If a determination is rendered by the Transportation
Commission that the sale of any railroad asset within its
jurisdiction is appropriate, notification must shall be made
electronically to the Speaker of the House of Representatives and
the President Pro Tempore of the Senate in writing, utilizing the
centralized filing system provided for in Section 378 of this act,
prior to the Commission meeting where final action will take place.
All proceeds from the sale shall be deposited into the Railroad
Maintenance Revolving Fund;

5. To acquire and hold real or personal property in the
exercise of its powers for the performance of its duties as
authorized by this act. Surplus property may be disposed of by the
Department;

6. To acquire in the name of the Department, by purchase or
otherwise on such terms and conditions and in such manner as it may
deem proper, or by exercise of the right of condemnation, such
public or private lands and personalty, including public parks,
playgrounds, or reservations, or parts thereof or rights therein,
rights-of-way, trackage, property, rights, easements, and interests,

ENR. S. B. NO. 1877 Page 453
as it may deem necessary for carrying out the provisions of the
Railroad Revitalization Act;

7. To make and enter into all contracts and agreements
necessary or incidental to the performance of its duties and the
execution of its powers under the Railroad Revitalization Act, and
to employ rail planning and management consultants, consulting
engineers, attorneys, accountants, construction and financial
consultants, superintendents, managers, and such other employees and
agents as may be necessary in its judgment, and to fix their
compensation; provided, that all such expenses shall be payable
solely from funds made available under and pursuant to the
provisions of the Railroad Revitalization Act or from revenues;
provided, further, no attorney employed by the Department, nor any
member of any law firm of which the member may be connected, shall
ever be paid any fee or compensation for any special or
extraordinary services;

8. To receive, accept and expend funds from the state, any
federal agency, or from private sources, for rail planning and for
administration of railroad assistance projects, and for or in aid of
the acquisition, construction, reconstruction, replacement, repair,
maintenance, and operation of railroad rights-of-way and trackage
and for rail service continuation payments to railroad companies for
operating losses sustained by reasons of continuing service on a
line which may otherwise be abandoned or which may experience a
reduced level of service not in the public interest, where such
continuation of service is carried out under a written agreement
with the Department establishing the terms and conditions for such
payments, and to receive and accept funds, aid, or contributions
from any source of either money, property, labor, or other things of
value, to be held, used and applied only for the purposes for which
such funds, aid or contributions may be made;

9. To adopt such rules and to do any and all things necessary
to comply with rules, regulations or requirements of the United
States Department of Transportation, any successor thereof, the
Surface Transportation Board or any federal agency administering any
law enacted by the Congress of the United States or having funds
available for the purpose of the Department that are not
inconsistent with or contrary to the prohibitions and restrictions
of Oklahoma law or public interest;

ENR. S. B. NO. 1877 Page 454

10. To expend, not to exceed twenty percent (20%) of the funds
available in the Railroad Maintenance Revolving Fund during any one
(1) year, at locations approved by the Oklahoma Corporation
Commission, such Railroad Maintenance Revolving Fund monies as may
be budgeted by the Department of Transportation for the purposes of
installing signal lights, gate arms, or other active warning devices
where any public road, street, or highway crosses a railroad right-
of-way; provided, however, nothing in this act shall negate, change,
or otherwise modify any existing statutory or common law duty of a
railroad company;

11. To expend income and funds from the Railroad Maintenance
Revolving Fund in the exercise of any or all of the foregoing
powers; and

12. To do all things necessary or convenient to carry out the
powers expressly granted in this act.

B. It shall be unlawful for any member, officer, or employee of
the Department to transact with the Department, either directly or
indirectly, any business for profit of such member, officer, or
employee; and any person, firm or corporation knowingly
participating therein shall be equally liable for violation of this
provision.

The term “business for profit” shall include, but not be limited
to, the acceptance or payment of any fee, commission, gift, or
consideration to such member, officer, or employee.

Violation of this provision shall constitute a Class D1 felony
offense and upon conviction shall be punishable by incarceration as
provided for in subsections B through F of Section 20N of Title 21
of the Oklahoma Statutes, or by a fine of not less than Five Hundred
Dollars ($500.00) and not more than Five Thousand Dollars
($5,000.00), or by both such imprisonment and fine.

C. All meetings of the Department shall be open public
meetings, and all records shall be public records, except when
considering personnel.

ENR. S. B. NO. 1877 Page 455
SECTION 212. AMENDATORY 67 O.S. 2021, Section 315, is
amended to read as follows:

Section 315. Within thirty (30) days after the head of each
such agency, authority, board, commission, department, institution,
instrumentality, office, officer, official, or society is furnished
with such a listing by the Secretary of such documents, records,
papers, and archives are to be delivered to the Secretary of the
Archives and Records Commission for disposition as provided.

In the event delivery is refused of such documents, records,
papers, and archives the Secretary of the Archives and Records
Commission is directed not later than ten (10) days after the
expiration of thirty-day period of compliance to, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically report such noncompliance to the President Pro
Tempore of the Senate, to the Speaker of the House of the Oklahoma
Legislature, and to the Governor of the State of Oklahoma, setting
forth in detail the extent of noncompliance and the reasons assigned
therefor. In addition the Secretary is directed to file a copy of
such report or reports of noncompliance with the Secretary of State
of Oklahoma, and the same is to be a public record open for the
inspection and information of the public.

SECTION 213. AMENDATORY 68 O.S. 2021, Section 102.3, is
amended to read as follows:

Section 102.3. In addition to their other duties, the members
of the Oklahoma Tax Commission shall make a continuous study of the
critical national energy crisis to determine its impact on the tax
revenues of Oklahoma, particularly the revenues derived from the
gross production taxes and gasoline and other motor fuel taxes and
also to determine and project the degree of the consequent erosion
of the present tax structure of the state which will be caused by
the gradual change from the use of oil and natural gas as a basic
fuel for energy. The Commission shall make periodic appraisals
concerning the several taxes directly related to the fuels presently
used by motor vehicles and other modes of travel and for heating and
cooling, as well as the tax paid by those engaged in the business of
producing oil and gas, as the use of substitute types of fuels
evolve which undoubtedly will result in substantial changes in the

ENR. S. B. NO. 1877 Page 456
types and size of vehicles used in the business activities of many
taxpayers.

The Commission shall also develop such econometric models as are
deemed necessary, compile data and other information as to the
possible rate of decline in tax revenue and, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically report to the Governor, Speaker of the House of
Representatives, and President Pro Tempore of the Senate by the
second Tuesday of every year, to insure the availability of revenue
to properly operate and carry on the functions of state and local
government.

For the performance of such additional duties, the members of
said Commission not receiving the maximum salary provided in Section
102.1 of Title 68 of the Oklahoma Statutes shall be compensated as
follows:

The Chairman of said Commission shall receive Eleven Thousand
Five Hundred Dollars ($11,500.00) per annum and the Vice Chairman
and Secretary-Member of said such Commission shall each receive
Fifteen Thousand Five Hundred Dollars ($15,500.00) per annum,
payable monthly. Provided, it is the intent hereof that no member
of said Commission shall receive total compensation greater than
that provided in Section 102.1 of Title 68 of the Oklahoma Statutes
as amended.

SECTION 214. AMENDATORY 68 O.S. 2021, Section 120, is
amended to read as follows:

Section 120. A. This act shall be known and may be cited as
the “Out-of-State Tax Collections Enforcement Act of 2017”.

B. For the purpose of collecting taxes owed to this state, the
Oklahoma Tax Commission may establish and maintain a division to be
known as the “Out-of-State Tax Collections Enforcement Division”.
Pursuant to Section 262 of Title 68 of the Oklahoma Statutes, the
Tax Commission may contract with out-of-state private auditors or
audit firms and may require any person performing an audit to be
first approved by the Tax Commission.

ENR. S. B. NO. 1877 Page 457
C. The Tax Commission may employ full-time, unclassified, out-
of-state tax auditors or full-time-equivalent contracted auditors to
staff the Division who shall perform audit functions related to
enhancing:

1. Sales and use tax collections related to sales or
transactions involving residents of Oklahoma and out-of-state
vendors with a nexus to the State of Oklahoma; and

2. Collections of any other unpaid taxes owed the State of
Oklahoma by out-of-state individuals, firms and corporations.

D. For purposes of this section, the term “audit function”
includes but is not limited to the auditing of the books of
individuals, firms, and corporations which the Tax Commission
believes may owe the State of Oklahoma additional tax monies.

E. The Tax Commission shall annually, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a report to the Governor, President Pro
Tempore of the Senate, and Speaker of the House of Representatives
listing the number of individuals, firms, and corporations audited,
the types of taxes audited, the amount of taxes assessed and the
amount of taxes collected as the result of such audits.

SECTION 215. AMENDATORY 68 O.S. 2021, Section 205, as
last amended by Section 2, Chapter 204, O.S.L. 2025 (68 O.S. Supp.
2025, Section 205), is amended to read as follows:

Section 205. A. The records and files of the Oklahoma Tax
Commission concerning the administration of the Uniform Tax
Procedure Code or of any state tax law shall be considered
confidential and privileged, except as otherwise provided for by
law, and neither the Tax Commission nor any employee engaged in the
administration of the Tax Commission or charged with the custody of
any such records or files nor any person who may have secured
information from the Tax Commission shall disclose any information
obtained from the records or files or from any examination or
inspection of the premises or property of any person.

B. Except as provided in paragraph 26 of subsection C of this
section, neither the Tax Commission nor any employee engaged in the

ENR. S. B. NO. 1877 Page 458
administration of the Tax Commission or charged with the custody of
any such records or files shall be required by any court of this
state to produce any of the records or files for the inspection of
any person or for use in any action or proceeding, except when the
records or files or the facts shown thereby are directly involved in
an action or proceeding pursuant to the provisions of the Uniform
Tax Procedure Code or of the state tax law, or when the
determination of the action or proceeding will affect the validity
or the amount of the claim of the state pursuant to any state tax
law, or when the information contained in the records or files
constitutes evidence of violation of the provisions of the Uniform
Tax Procedure Code or of any state tax law.

C. The provisions of this section shall not prevent the Tax
Commission, or with respect to the Oklahoma Department of Commerce
in administration of the Oklahoma Rural Jobs Act as provided by
paragraph 22 of this subsection, from disclosing the following
information and no liability whatsoever, civil or criminal, shall
attach to any member of the Tax Commission, or the Oklahoma
Department of Commerce as applicable, or any employee thereof for
any error or omission in the disclosure of such information:

1. The delivery to a taxpayer or a duly authorized
representative of the taxpayer of a copy of any report or any other
paper filed by the taxpayer pursuant to the provisions of the
Uniform Tax Procedure Code or of any state tax law;

2. The exchange of information that is not protected by the
federal Privacy Protection Act, 42 U.S.C., Section 2000aa et seq.,
pursuant to reciprocal agreements entered into by the Tax Commission
and other state agencies or agencies of the federal government;

3. The publication of statistics so classified as to prevent
the identification of a particular report and the items thereof;

4. The examination of records and files by the State Auditor
and Inspector or the duly authorized agents of the State Auditor and
Inspector;

5. The disclosing of information or evidence to the Oklahoma
State Bureau of Investigation, Attorney General, Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, any district

ENR. S. B. NO. 1877 Page 459
attorney or agent of any federal law enforcement agency when the
information or evidence is to be used by such officials to
investigate or prosecute violations of the criminal provisions of
the Uniform Tax Procedure Code or of any state tax law or of any
federal crime committed against this state. Any information
disclosed to the Oklahoma State Bureau of Investigation, Attorney
General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, any district attorney or agent of any federal law
enforcement agency shall be kept confidential by such person and not
be disclosed except when presented to a court in a prosecution for
violation of the tax laws of this state or except as specifically
authorized by law, and a violation by the Oklahoma State Bureau of
Investigation, Attorney General, Oklahoma State Bureau of Narcotics
and Dangerous Drugs Control, district attorney, or agent of any
federal law enforcement agency by otherwise releasing the
information shall be a felony;

6. The use by any division of the Tax Commission of any
information or evidence in the possession of or contained in any
report or return filed with any other division of the Tax
Commission;

7. The furnishing, at the discretion of the Tax Commission, of
any information disclosed by its records or files to any official
person or body of this state, any other state, the United States or
foreign country who is concerned with the administration or
assessment of any similar tax in this state, any other state or the
United States. The provisions of this paragraph shall include the
furnishing of information by the Tax Commission to a county assessor
to determine the amount of gross household income pursuant to the
provisions of Section 8C of Article X of the Oklahoma Constitution
or Section 2890 of this title. The Tax Commission shall promulgate
rules to give guidance to the county assessors regarding the type of
information which may be used by the county assessors in determining
the amount of gross household income pursuant to Section 8C of
Article X of the Oklahoma Constitution or Section 2890 of this
title. The provisions of this paragraph shall also include the
furnishing of information to the State Treasurer for the purpose of
administration of the Uniform Unclaimed Property Act;

ENR. S. B. NO. 1877 Page 460
8. The furnishing of information to other state agencies for
the limited purpose of aiding in the collection of debts owed by
individuals to such requesting agencies;

9. The furnishing of information requested by any member of the
general public and stated in the sworn lists or schedules of taxable
property of public service corporations organized, existing, or
doing business in this state which are submitted to and certified by
the State Board of Equalization pursuant to the provisions of
Section 2858 of this title and Section 21 of Article X of the
Oklahoma Constitution, provided such information would be a public
record if filed pursuant to Sections 2838 and 2839 of this title on
behalf of a corporation other than a public service corporation;

10. The furnishing of information requested by any member of
the general public and stated in the findings of the Tax Commission
as to the adjustment and equalization of the valuation of real and
personal property of the counties of the state, which are submitted
to and certified by the State Board of Equalization pursuant to the
provisions of Section 2865 of this title and Section 21 of Article X
of the Oklahoma Constitution;

11. The furnishing of information as to the issuance or
revocation of any tax permit, license or exemption by the Tax
Commission as provided for by law. Such information shall be
limited to the name of the person issued the permit, license or
exemption, the name of the business entity authorized to engage in
business pursuant to the permit, license or exemption, the address
of the business entity and the grounds for revocation;

12. The posting of notice of revocation of any tax permit or
license upon the premises of the place of business of any business
entity which has had any tax permit or license revoked by the Tax
Commission as provided for by law. Such notice shall be limited to
the name of the person issued the permit or license, the name of the
business entity authorized to engage in business pursuant to the
permit or license, the address of the business entity and the
grounds for revocation;

13. The furnishing of information upon written request by any
member of the general public as to the outstanding and unpaid amount
due and owing by any taxpayer of this state for any delinquent tax,

ENR. S. B. NO. 1877 Page 461
together with penalty and interest, for which a tax warrant or a
certificate of indebtedness has been filed pursuant to law;

14. After the filing of a tax warrant pursuant to law, the
furnishing of information upon written request by any member of the
general public as to any agreement entered into by the Tax
Commission concerning a compromise of tax liability for an amount
less than the amount of tax liability stated on such warrant;

15. The disclosure of information necessary to complete the
performance of any contract authorized by this title to any person
with whom the Tax Commission has contracted;

16. The disclosure of information to any person for a purpose
as authorized by the taxpayer pursuant to a waiver of
confidentiality. The waiver shall be in writing and shall be made
upon such form as the Tax Commission may prescribe;

17. The disclosure of information required in order to comply
with the provisions of Section 2369 of this title;

18. The disclosure to an employer, as defined in Sections
2385.1 and 2385.3 of this title, of information required in order to
collect the tax imposed by Section 2385.2 of this title;

19. The disclosure to a plaintiff of a corporation’s last-known
address shown on the records of the Franchise Tax Division of the
Tax Commission in order for such plaintiff to comply with the
requirements of Section 2004 of Title 12 of the Oklahoma Statutes;

20. The disclosure of information directly involved in the
resolution of the protest by a taxpayer to an assessment of tax or
additional tax or the resolution of a claim for refund filed by a
taxpayer, including the disclosure of the pendency of an
administrative proceeding involving such protest or claim, to a
person called by the Tax Commission as an expert witness or as a
witness whose area of knowledge or expertise specifically addresses
the issue addressed in the protest or claim for refund. Such
disclosure to a witness shall be limited to information pertaining
to the specific knowledge of that witness as to the transaction or
relationship between taxpayer and witness;

ENR. S. B. NO. 1877 Page 462
21. The disclosure of information necessary to implement an
agreement authorized by Section 2702 of this title when such
information is directly involved in the resolution of issues arising
out of the enforcement of a municipal sales tax ordinance. Such
disclosure shall be to the governing body or to the municipal
attorney, if so designated by the governing body;

22. The furnishing of information regarding incentive payments
made pursuant to the provisions of Sections 3601 through 3609 of
this title, incentive payments made pursuant to the provisions of
Sections 3501 through 3508 of this title, or tax credits claimed
pursuant to the provisions of Sections 3930 through 3937 of this
title;

23. The furnishing to a prospective purchaser of any business,
or his or her authorized representative, of information relating to
any liabilities, delinquencies, assessments or warrants of the
prospective seller of the business which have not been filed of
record, established or become final and which relate solely to the
seller’s business. Any disclosure under this paragraph shall only
be allowed upon the presentment by the prospective buyer, or the
buyer’s authorized representative, of the purchase contract and a
written authorization between the parties;

24. The furnishing of information as to the amount of state
revenue affected by the issuance or granting of any tax permit,
license, exemption, deduction, credit, or other tax preference by
the Tax Commission as provided for by law. Such information shall
be limited to the type of permit, license, exemption, deduction,
credit or other tax preference issued or granted, the date and
duration of such permit, license, exemption, deduction, credit, or
other tax preference and the amount of such revenue. The provisions
of this paragraph shall not authorize the disclosure of the name of
the person issued such permit, license, exemption, deduction, credit
or other tax preference, or the name of the business entity
authorized to engage in business pursuant to the permit, license,
exemption, deduction, credit, or other tax preference;

25. The examination of records and files of a person or entity
by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, district attorney, or the Attorney General pursuant to a
court order by a magistrate in whose territorial jurisdiction the

ENR. S. B. NO. 1877 Page 463
person or entity resides, or where the Tax Commission records and
files are physically located. Such an order may only be issued upon
a sworn application by an agent of the Oklahoma State Bureau of
Narcotics and Dangerous Drugs Control or the Attorney General,
certifying that the person or entity whose records and files are to
be examined is the target of an ongoing investigation of a felony
violation of the Uniform Controlled Dangerous Substances Act and
that information resulting from such an examination would likely be
relevant to that investigation. Any records or information obtained
pursuant to such an order may only be used by the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, district attorney
or the Attorney General in the investigation and prosecution of a
felony violation of the Uniform Controlled Dangerous Substances Act
or money laundering pursuant to Section 2001 of Title 21 of the
Oklahoma Statutes. Any such order issued pursuant to this
paragraph, along with the underlying application, shall be sealed
and not disclosed to the person or entity whose records were
examined, for a period of ninety (90) days. The issuing magistrate
may grant extensions of such period upon a showing of good cause in
furtherance of the investigation. Upon the expiration of ninety
(90) days and any extensions granted by the magistrate, a copy of
the application and order shall be served upon the person or entity
whose records were examined, along with a copy of the records or
information actually provided by the Tax Commission;

26. The disclosure of information, as prescribed by this
paragraph, which is related to the proposed or actual usage of tax
credits pursuant to Section 2357.7 of this title, the Small Business
Capital Formation Incentive Act or the Rural Venture Capital
Formation Incentive Act. Unless the context clearly requires
otherwise, the terms used in this paragraph shall have the same
meaning as defined by Section 2357.7, 2357.61 or 2357.72 of this
title. The disclosure of information authorized by this paragraph
shall include:

a. the legal name of any qualified venture capital
company, qualified small business capital company, or
qualified rural small business capital company,

b. the identity or legal name of any person or entity
that is a shareholder or partner of a qualified
venture capital company, qualified small business

ENR. S. B. NO. 1877 Page 464
capital company, or qualified rural small business
capital company,

c. the identity or legal name of any Oklahoma business
venture, Oklahoma small business venture, or Oklahoma
rural small business venture in which a qualified
investment has been made by a capital company, or

d. the amount of funds invested in a qualified venture
capital company, the amount of qualified investments
in a qualified small business capital company or
qualified rural small business capital company and the
amount of investments made by a qualified venture
capital company, qualified small business capital
company, or qualified rural small business capital
company;

27. The disclosure of specific information as required by
Section 46 of Title 62 of the Oklahoma Statutes;

28. The disclosure of specific information as required by
Section 205.5 of this title;

29. The disclosure of specific information as required by
Section 205.6 of this title;

30. The disclosure of information to the State Treasurer
necessary to implement Section 2368.27 of this title;

31. The disclosure of specific information to the Oklahoma
Health Care Authority for purposes of determining eligibility for
current or potential recipients of assistance from the Oklahoma
Medicaid Program;

32. The disclosure of information to the Oklahoma Department of
Veterans Affairs including but not limited to the name and basis for
eligibility of each individual who qualifies for the sales tax
exemption authorized in paragraph 34 of Section 1357 of this title;

33. The disclosure of information to the Oklahoma Medical
Marijuana Authority for the purposes of compliance with the Oklahoma

ENR. S. B. NO. 1877 Page 465
Medical Marijuana and Patient Protection Act or Section 420 et seq.
of Title 63 of the Oklahoma Statutes; or

34. The disclosure of information required in order to comply
with the provisions of subsection H of Section 2902 of this title.

D. The Tax Commission shall cause to be prepared and made
available for public inspection in the office of the Tax Commission
in such manner as it may determine an annual list containing the
name and post office address of each person, whether individual,
corporate, or otherwise, making and filing an income tax return with
the Tax Commission.

It is specifically provided that no liability whatsoever, civil
or criminal, shall attach to any member of the Tax Commission or any
employee thereof for any error or omission of any name or address in
the preparation and publication of the list.

E. The Tax Commission shall prepare or cause to be prepared a
report on all provisions of state tax law that reduce state revenue
through exclusions, deductions, credits, exemptions, deferrals, or
other preferential tax treatments. The report shall be prepared not
later than October 1 of each even-numbered year and shall be
electronically submitted to the Governor, the President Pro Tempore
of the Senate, and the Speaker of the House of Representatives
utilizing the centralized filing system provided for in Section 378
of this act. The Tax Commission may prepare and submit supplements
to the report at other times of the year if additional or updated
information relevant to the report becomes available. The report
shall include, for the previous fiscal year, the Tax Commission’s
best estimate of the amount of state revenue that would have been
collected but for the existence of each such exclusion, deduction,
credit, exemption, deferral, or other preferential tax treatment
allowed by law. The Tax Commission may request the assistance of
other state agencies as may be needed to prepare the report. The
Tax Commission is authorized to require any recipient of a tax
incentive or tax expenditure to report to the Tax Commission such
information as requested so that the Tax Commission may fulfill its
obligations as required by this subsection. The Tax Commission may
require this information to be submitted in an electronic format.
The Tax Commission may disallow any claim of a person for a tax

ENR. S. B. NO. 1877 Page 466
incentive due to its failure to file a report as required under the
authority of this subsection.

F. It is further provided that the provisions of this section
shall be strictly interpreted and shall not be construed as
permitting the disclosure of any other information contained in the
records and files of the Tax Commission relating to income tax or to
any other taxes.

G. Unless otherwise provided for in this section, any violation
of the provisions of this section shall constitute a misdemeanor and
shall be punishable by the imposition of a fine not exceeding One
Thousand Dollars ($1,000.00) or by imprisonment in the county jail
for a term not exceeding one (1) year, or by both such fine and
imprisonment, and the offender shall be removed or dismissed from
office.

H. Offenses described in Section 2376 of this title shall be
reported to the appropriate district attorney of this state by the
Tax Commission as soon as the offenses are discovered by the Tax
Commission or its agents or employees. The Tax Commission shall
make available to the appropriate district attorney or to the
authorized agent of the district attorney its records and files
pertinent to prosecutions, and such records and files shall be fully
admissible as evidence for the purpose of such prosecutions.

SECTION 216. AMENDATORY 68 O.S. 2021, Section 270, is
amended to read as follows:

Section 270. A. Notwithstanding any other provisions of this
section, the Oklahoma Tax Commission shall, upon request of any
taxpayer or the taxpayer’s authorized agent, representative, or
attorney, provide certification in writing of qualification for the
credits in the following sections of law:

1. Section 2357.7 of this title;

2. Section 2357.11 of this title;

3. Section 2357.32A of this title;

4. Section 2357.41 of this title; and

ENR. S. B. NO. 1877 Page 467

5. Section 2357.42 of this title.

B. On or before November 1 of each year subsequent to the
effective date of this section, the Oklahoma Tax Commission shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically file a report with the Speaker of the
Oklahoma House of Representatives, the President Pro Tempore of the
State Senate, and the Director of the Office of Management and
Enterprise Services, stating the amount of credits claimed and
allowed.

SECTION 217. AMENDATORY 68 O.S. 2021, Section 291, is
amended to read as follows:

Section 291. A. At the request of the Chair of the Finance
Subcommittee of the House Appropriations and Budget Committee or the
Senate Finance Committee, the Oklahoma Tax Commission shall prepare
an incidence impact analysis of a bill or a proposal to change the
tax system which increases, decreases, or redistributes taxes by
more than Twenty Million Dollars ($20,000,000.00). To the extent
data is available on the changes in the distribution of the tax
burden that are affected by the bill or proposal, the analysis shall
report on the incidence effects that would result if the bill were
enacted. The report may present information using systemwide
measures, such as the Suits or other similar indexes, by income
classes, taxpayer characteristics, or other relevant categories.
The report may include analyses of the effect of the bill or
proposal on representative taxpayers. The analysis must shall
include a statement of the incidence assumptions that were used in
computing the burdens. The report shall be electronically submitted
to the requestor utilizing the centralized filing system provided
for in Section 378 of this act.

B. The incidence analyses shall use the broadest measure of
economic income for which reliable data is available.

SECTION 218. AMENDATORY 68 O.S. 2021, Section 400.1, as
amended by Section 3, Chapter 285, O.S.L. 2023 (68 O.S. Supp. 2025,
Section 400.1), is amended to read as follows:

ENR. S. B. NO. 1877 Page 468
Section 400.1. A. For the purpose of enforcing the tobacco tax
laws of this state, the Oklahoma Tax Commission is authorized,
contingent upon the availability of funds, to establish and maintain
a unit to be known as the “Tobacco Products Tax Enforcement Unit”.
The unit shall enforce the tobacco tax laws of this state and ensure
that all taxes are paid on tobacco products by:

1. Confirming that all entities selling tobacco products in
this state are properly licensed as provided in Section 400 et seq.
of Title 68 of the Oklahoma Statutes;

2. Verifying that all retailers are only purchasing tobacco
products from wholesalers licensed by the Tax Commission;

3. Providing a dedicated telephone line and email address for
licensed wholesalers, licensed retailers, and the general public to
report suspected violations of tobacco tax laws; provided, no
entity, individual, or those who report violations on behalf of a
licensed wholesaler or retailer shall be required to disclose their
identity;

4. Auditing licensed wholesalers and retailers to ensure all
tobacco product taxes are paid;

5. Issuing fines for violations as provided in Section 400 et
seq. of Title 68 of the Oklahoma Statutes;

6. Conducting wholesale and retail tobacco inspections to find
and confiscate untaxed tobacco products;

7. Establishing data-sharing programs with tax departments in
surrounding states related to tobacco product taxes;

8. Creating an industry advisory committee including licensed
wholesalers and retailers who may represent the entity related to
tobacco products tax enforcement concerns and suggestions. The
industry advisory committee shall be composed of five (5) members as
follows:

a. two members who are licensed wholesalers to be
appointed by the Governor,

ENR. S. B. NO. 1877 Page 469
b. one member who is a licensed retailer to be appointed
by the President Pro Tempore of the Oklahoma Senate,

c. one member who is a licensed retailer to be appointed
by the Speaker of the Oklahoma House of
Representatives, and

d. one member who is a licensed wholesaler to be
appointed by the four members provided for in
subparagraphs a through c of this paragraph.

The committee shall meet quarterly. The Oklahoma Tax Commission
shall promulgate rules establishing minimum requirements as may be
deemed necessary to carry out the purposes of the committee; and

9. Working with law enforcement and conducting investigations
to stop illegal acquisition and shipment of tobacco products by
persons not licensed to sell tobacco products in this state.

B. The Tax Commission shall annually, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a report to the Governor, President Pro
Tempore of the Senate, and Speaker of the House of Representatives
listing the number of wholesale and retail tobacco inspections
conducted, the amount of untaxed tobacco products confiscated, the
number of tobacco products tax audits conducted, the amount of taxes
assessed and the amount of taxes collected as the result of audits
and confiscations, the number of suspected violations reported and
the actions taken in response, and the number of fines issued and
the amount of fines collected.

SECTION 219. AMENDATORY 68 O.S. 2021, Section 1357.21,
as last amended by Section 1, Chapter 353, O.S.L. 2025 (68 O.S.
Supp. 2025, Section 1357.21), is amended to read as follows:

Section 1357.21. A. The exemption authorized by the provisions
of paragraph 43 of Section 1357 of this title shall be administered
as a rebate. The rebate program shall be administered by the
Oklahoma Broadband Office and the Oklahoma Tax Commission.

B. No claim for a rebate shall be approved unless the equipment
was purchased in order to establish or expand broadband services in

ENR. S. B. NO. 1877 Page 470
underserved or unserved areas. As used in this subsection and for
purposes of the exemption authorized by paragraph 43 of Section 1357
of this title, “broadband”, “underserved”, and “unserved” shall mean
those services and areas as defined in Section 139.102 of Title 17
of the Oklahoma Statutes.

C. No claim for rebate shall be approved unless the claimant
establishes that as a result of the equipment purchase there has
been net growth in the number of potential customers served in
underserved or unserved areas.

D. In order to qualify for rebate payments for equipment or
other items qualifying for the exemption authorized by paragraph 43
of Section 1357 of this title, the items shall be purchased and
placed in service between January 1, 2022, and December 31, 2023.
Claims for rebates of sales tax or use tax paid for such equipment
purchased in calendar year 2022 shall be filed with the Oklahoma Tax
Commission not later than September 1, 2023, and in subsequent
calendar years shall be filed with the Oklahoma Tax Commission not
later than September 1 of the following year. Beginning in calendar
year 2025, claims for rebates for sales or use tax paid for such
equipment purchased in calendar year 2025 and subsequent calendar
years shall be filed with the Oklahoma Broadband Office not later
than September 1 of the following year.

E. The Oklahoma Broadband Office shall approve or disapprove
all claims for a rebate payment beginning with claims for rebates
for sales or use tax paid for such equipment purchased in calendar
year 2025 and subsequent calendar years and shall notify the
Oklahoma Tax Commission. Upon notification of approval from the
Oklahoma Broadband Office, the Tax Commission shall issue a rebate
payment for all approved claims from funds in the Oklahoma Broadband
Rebate Revolving Fund, created pursuant to Section 2 of this act.

F. Qualifying purchases do not include supporting or ancillary
functions, such as office operations, field operations, marketing,
transportation, warehousing, data storage, or similar operations
that do not directly result in the distribution of broadband
Internet service. Property directly used or consumed in or during
the provision, creation, or production of a data processing service
or information service, or property the provider grants, sells, or

ENR. S. B. NO. 1877 Page 471
leases to the customer for use within the home or establishment
receiving broadband is not eligible for a rebate under this section.

G. The total amount of rebates that may be paid shall not
exceed Fourteen Million Seventy-one Thousand Six Hundred Ninety-one
Dollars ($14,071,691.00).

H. The amount of rebates paid to each claimant shall be
computed by dividing the applicable total rebate pool amount by the
dollar amount of claims timely received by the Tax Commission with
respect to each fiscal year, and paying in full the amount of the
claims submitted if the amount of claims are equal to, or less than,
the total rebate pool, or a pro rata share if the total amount of
claims submitted exceed the rebate pool.

I. The total amount of rebates that may be paid shall not
exceed Fourteen Million Seventy-one Thousand Six Hundred Ninety-one
Dollars ($14,071,691.00).

J. Claims for rebate shall be on such forms as the Oklahoma Tax
Commission may prescribe for such purpose and shall contain any
required information or supporting documentation the Commission
requires to verify eligibility for the rebate payment. Claims for
rebate for sales or use tax paid for equipment purchased in calendar
year 2025 and subsequent calendar years shall be on such forms as
the Oklahoma Broadband Office may prescribe for such purpose.

K. The Oklahoma Department of Commerce shall use information
provided by the Oklahoma Tax Commission and the Oklahoma Broadband
Office to prepare a report to identify the qualifying rural
broadband projects completed with the equipment purchased together
with the location of the equipment and the geographic areas served
as a result of the equipment purchases, including the total number
of potential new customers receiving qualifying broadband services
resulting from the project. The report shall not identify any
entity by name that purchased equipment.

L. The report shall be filed not later than April 1, 2025, with
respect to rebates paid for equipment purchases made during calendar
years 2022 and 2023 and April 1 of the second succeeding year for
equipment purchases made in subsequent calendar years. The Oklahoma
Tax Commission and the Oklahoma Broadband Office shall make

ENR. S. B. NO. 1877 Page 472
information available as required by subsection K of this section as
claims are completed to assist with the timely preparation of the
report.

M. The report shall be electronically filed with the Governor,
the Speaker of the House of Representatives, and the President Pro
Tempore of the Senate utilizing the centralized filing system
provided for in Section 378 of this act and posted on the Oklahoma
Broadband Office website.

SECTION 220. AMENDATORY 68 O.S. 2021, Section 2357.1A-2,
is amended to read as follows:

Section 2357.1A-2. A. Notwithstanding any other provision of
law, the transfer or allocation of any tax credit authorized
pursuant to the provisions of this title, except as provided in this
section, shall be reported to the Oklahoma Tax Commission and any
tax credit authorized pursuant to the provisions of Title 36 of the
Oklahoma Statutes shall be reported to the Oklahoma Insurance
Department as provided in subsection B of this section.

B. The transfer or allocation of any tax credit shall be
reported to the Tax Commission or Insurance Department by the entity
transferring or allocating the credit on or before the twentieth day
of the second month after the tax year in which an act occurs which
allows the tax credit to eventually be claimed. If the credit is
transferable, the report shall state whether the credit will or may
be transferred to another taxpayer and the names of the taxpayers to
whom the credit is transferred. The report shall also provide
whether the credit will or may be allocated by a pass-through entity
to one or more of the shareholders, partners or members of the pass-
through entity and the identity of the shareholders, partners, or
members of the pass-through entity to whom the credit was allocated.
Further, the report shall include the tax type, the amount of the
credit, the statutory or other legal authority which forms the basis
for the credit, and other information that may be required by the
Tax Commission or the Insurance Department. The report to the Tax
Commission or to the Insurance Department shall be on such form as
the Commission or Department may prescribe. The Tax Commission and
the Insurance Department shall be authorized to require the report
to be filed electronically.

ENR. S. B. NO. 1877 Page 473
C. Notwithstanding the provisions of Section 205 of Title 68 of
the Oklahoma Statutes the Tax Commission and the Insurance
Department shall compile a list of all tax credits reported as
required by this section and shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
provide the list to the Governor, the Speaker of the Oklahoma House
of Representatives, the President Pro Tempore of the State Senate,
and the Director of the Office of Management and Enterprise Services
not later than June 1 of each year. Not later than five (5) working
days after the report has been provided to the Governor, the Speaker
of the Oklahoma House of Representatives and the President Pro
Tempore of the State Senate, the Oklahoma Tax Commission shall
publish the report on its website.

D. The compiled list shall identify the tax credits reported
pursuant to subsection A of this section and shall separately
identify the amount of tax credits that may be claimed against each
separate state tax under the jurisdiction of the administering
agency and the name of the entity that will be claiming the credit.

E. To the extent possible, the Tax Commission and the Insurance
Department shall make an estimate of the revenue impact to the State
of Oklahoma resulting from the credits reported on a separate fiscal
year by fiscal year basis. Each agency shall make its estimate only
for tax credits under the jurisdiction of each administering agency.

F. If a taxpayer claims a credit on any state tax return that
was not previously reported to the Tax Commission or Insurance
Department pursuant to this section, the Tax Commission or Insurance
Department shall disallow the credit and recompute the applicable
tax liability including any penalty or interest; provided, upon the
filing of the report required by this section, the credit shall be
allowed.

G. This section shall not be applicable to the following tax
credits:

1. The sales tax relief credit authorized by Section 5011 of
this title;

2. The low income property tax relief credit authorized by
Section 2907 of this title;

ENR. S. B. NO. 1877 Page 474

3. The earned income tax credit authorized by Section 2357.43
of this title;

4. The child care/child tax credit authorized by Section 2357
of this title;

5. The credit for taxes paid to another state authorized by
Section 2357 of this title; and

6. The credit for property taxes paid on tornado damaged
residential property authorized by Section 2357.29 of this title.

SECTION 221. AMENDATORY 68 O.S. 2021, Section 2357.7A,
is amended to read as follows:

Section 2357.7A. On or before November 1 of each year
subsequent to the effective date of this act, the Oklahoma Tax
Commission shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically file a report with
the Speaker of the House of Representatives and the President Pro
Tempore of the Senate. The report shall state the amount of credits
actually claimed and allowed pursuant to the provisions of Section
2357.7 of Title 68 of the Oklahoma Statutes during the previous
calendar year, statistical information on the qualified investments
made by qualified venture capital companies during the previous
year, an estimate of the number of jobs created in this state during
the previous year pursuant to qualified investments made by
qualified venture capital companies, and such other information as
the Tax Commission may deem relevant.

SECTION 222. AMENDATORY 68 O.S. 2021, Section 2357.22,
as last amended by Section 153, Chapter 452, O.S.L. 2024 (68 O.S.
Supp. 2025, Section 2357.22), is amended to read as follows:

Section 2357.22. A. For tax years 2028 and before, there shall
be allowed a one-time credit against the income tax imposed by
Section 2355 of this title for investments in qualified clean-
burning motor vehicle fuel property placed in service on or after
January 1, 1991, or with respect to a hydrogen fuel cell, on or
after the effective date of this act.

ENR. S. B. NO. 1877 Page 475
B. As used in this section, “qualified clean-burning motor
vehicle fuel property” means:

1. Equipment installed to modify a motor vehicle which is
propelled by gasoline or diesel fuel so that the vehicle may be
propelled by compressed natural gas, a hydrogen fuel cell, liquefied
natural gas, or liquefied petroleum gas. The equipment covered by
this paragraph must shall:

a. be new, not previously used to modify or retrofit any
vehicle propelled by gasoline or diesel fuel and be
installed by an alternative fuels equipment technician
who is certified in accordance with the Alternative
Fuels Technician Certification Act,

b. meet all Federal Motor Vehicle Safety Standards set
forth in 49 CFR 571, or

c. for any commercial motor vehicle (CMV), follow the
Federal Motor Carrier Safety Regulations or Oklahoma
Intrastate Motor Carrier Regulations;

2. A motor vehicle originally equipped so that the vehicle may
be propelled by compressed natural gas, a hydrogen fuel cell, or
liquefied natural gas or liquefied petroleum gas but only to the
extent of the portion of the basis of such motor vehicle which is
attributable to the storage of such fuel, the delivery to the engine
of such motor vehicle of such fuel, and the exhaust of gases from
combustion of such fuel;

3. Property, not including a building and its structural
components, which is:

a. directly related to the delivery of compressed natural
gas, liquefied natural gas or liquefied petroleum gas,
or hydrogen for commercial purposes or for a fee or
charge, into the fuel tank of a motor vehicle
propelled by such fuel including compression equipment
and storage tanks for such fuel at the point where
such fuel is so delivered but only if such property is
not used to deliver such fuel into any other type of
storage tank or receptacle and such fuel is not used

ENR. S. B. NO. 1877 Page 476
for any purpose other than to propel a motor vehicle,
or

b. a metered-for-fee, public access recharging system for
motor vehicles propelled in whole or in part by
electricity. The property covered by this paragraph
must shall be new, and must shall not have been
previously installed or used to refuel vehicles
powered by compressed natural gas, liquefied natural
gas or liquefied petroleum gas, hydrogen, or
electricity;

4. Property which is directly related to the compression and
delivery of natural gas from a private home or residence, for
noncommercial purposes, into the fuel tank of a motor vehicle
propelled by compressed natural gas. The property covered by this
paragraph must shall be new and must shall not have been previously
installed or used to refuel vehicles powered by natural gas; or

5. For tax years 2010 and 2023 through 2028, a motor vehicle
originally equipped so that the vehicle may be propelled by a
hydrogen fuel cell electric fueling system.

C. As used in this section, “motor vehicle” means a motor
vehicle originally designed by the manufacturer to operate lawfully
and principally on streets and highways.

D. The credit provided for in subsection A of this section
shall be as follows:

1. For the qualified clean-burning motor vehicle fuel property
defined in paragraphs 1, 2, or 5 of subsection B of this section,
the amount of the credit shall be as follows based upon gross
vehicle weight of the qualified vehicle:

a. for vehicles up to or below six thousand (6,000)
pounds, the credit shall be a maximum of Five Thousand
Five Hundred Dollars ($5,500.00),

b. for vehicles between six thousand one (6,001) pounds
to ten thousand (10,000) pounds, the credit shall be a
maximum amount of Nine Thousand Dollars ($9,000.00),

ENR. S. B. NO. 1877 Page 477

c. for vehicles of ten thousand one (10,001) pounds, but
not in excess of twenty-six thousand five hundred
(26,500) pounds, the credit shall be a maximum amount
of Twenty-six Thousand Dollars ($26,000.00), and

d. for vehicles in excess of twenty-six thousand five
hundred one (26,501) pounds, the credit shall be a
maximum amount of One Hundred Thousand Dollars
($100,000.00);

2. For qualified clean-burning motor vehicle fuel property
defined in paragraph 3 of subsection B of this section, a per-
location credit of forty-five percent (45%) of the cost of the
qualified clean-burning motor vehicle fuel property; and

3. For qualified clean-burning motor vehicle fuel property
defined in paragraph 4 of subsection B of this section, a per-
location credit of the lesser of fifty percent (50%) of the cost of
the qualified clean-burning motor vehicle fuel property or Two
Thousand Five Hundred Dollars ($2,500.00).

E. In cases where no credit has been claimed pursuant to
paragraph 1 of subsection D of this section by any prior owner and
in which a motor vehicle is purchased by a taxpayer with qualified
clean-burning motor vehicle fuel property installed by the
manufacturer of such motor vehicle and the taxpayer is unable or
elects not to determine the exact basis which is attributable to
such property, the taxpayer may claim a credit in an amount not
exceeding the lesser of ten percent (10%) of the cost of the motor
vehicle or One Thousand Five Hundred Dollars ($1,500.00).

F. If the tax credit allowed pursuant to subsection A of this
section exceeds the amount of income taxes due or if there are no
state income taxes due on the income of the taxpayer, the amount of
the credit not used as an offset against the income taxes of a
taxable year may be carried forward, in order, as a credit against
subsequent income tax liability for a period not to exceed five (5)
years. The tax credit authorized pursuant to the provisions of this
section shall not be used to reduce the tax liability of the
taxpayer to less than zero (0).

ENR. S. B. NO. 1877 Page 478
G. A husband and wife who file separate returns for a taxable
year in which they could have filed a joint return may each claim
only one-half (1/2) of the tax credit that would have been allowed
for a joint return.

H. The Oklahoma Tax Commission is herein empowered to
promulgate rules by which the purpose of this section shall be
administered including the power to establish and enforce penalties
for violations thereof.

I. Notwithstanding the provisions of Section 2352 of this
title, for the fiscal year beginning on July 1, 2014, through fiscal
year 2023, the Tax Commission shall calculate an amount that equals
five percent (5%) of the cost of qualified clean-burning motor
vehicle fuel property as provided for in paragraph 1 of subsection D
of this section for tax year 2012. For each subsequent fiscal year
thereafter, the Tax Commission shall perform the same computation
with respect to the second tax year preceding the beginning of each
subsequent fiscal year. For fiscal year 2024, the Tax Commission
shall calculate an amount that equals twelve percent (12%) of the
credit for qualified clean-burning motor vehicle fuel property as
provided in paragraph 1 of subsection D of this section for tax year
2021. For each subsequent fiscal year, the Tax Commission shall
perform the same calculation for credits claimed in the second
preceding tax year. The Tax Commission shall then transfer an
amount equal to the amount calculated in this subsection from the
revenue derived pursuant to the provisions of subsections A, B and E
of Section 2355 of this title to the Compressed Natural Gas
Conversion Safety and Regulation Fund created in Section 130.25 of
Title 74 of the Oklahoma Statutes.

J. For the tax years 2020 through 2022, the total amount of
credits authorized by this section used to offset tax shall be
adjusted annually to limit the annual amount of credits to Twenty
Million Dollars ($20,000,000.00). The Tax Commission shall annually
calculate and publish by the first day of the affected taxable year
a percentage by which the credits authorized by this section shall
be reduced so the total amount of credits used to offset tax does
not exceed Twenty Million Dollars ($20,000,000.00) per year. The
formula to be used for the percentage adjustment shall be Twenty
Million Dollars ($20,000,000.00) divided by the credits claimed in

ENR. S. B. NO. 1877 Page 479
the second preceding year, with respect to any changes to the future
of the credit.

K. Pursuant to subsection J of this section, in the event the
total tax credits authorized by this section exceed Twenty Million
Dollars ($20,000,000.00) in any calendar year, the Tax Commission
shall permit any excess over Twenty Million Dollars ($20,000,000.00)
but shall factor such excess into the percentage adjustment formula
for subsequent years with respect to any changes to the future of
the credit.

L. For the tax years 2023 through 2028, the total amount of
credits authorized by this section used to offset tax shall be
adjusted annually to limit the annual amount of credits to:

1. Ten Million Dollars ($10,000,000.00) for qualified clean
burning fuel property propelled by compressed natural gas, liquefied
natural gas, or liquefied petroleum gas, property related to the
delivery of compressed natural gas, liquefied natural gas or
liquefied petroleum gas, and property directly related to the
compression and delivery of natural gas;

2. Ten Million Dollars ($10,000,000.00) for property originally
equipped so that the vehicle may be propelled by a hydrogen fuel
cell electric fueling system and property directly related to the
delivery of hydrogen; and

3. Ten Million Dollars ($10,000,000.00) for property which is a
metered-for-fee, public access recharging system for motor vehicles
propelled in whole or in part by electricity.

The Tax Commission shall annually calculate and publish by the
first day of the affected taxable year a percentage by which the
credits authorized by this section shall be reduced so the total
amount of credits used to offset tax does not exceed each of the
limits provided in paragraphs 1 through 3 of this subsection. The
formula to be used for the percentage adjustment shall be Ten
Million Dollars ($10,000,000.00) divided by the credits claimed in
the second preceding year, with respect to any changes to the future
of the credit.

ENR. S. B. NO. 1877 Page 480
M. Pursuant to subsection L of this section, in the event the
tax credits authorized by this section exceed any of the limits
provided in paragraphs 1 through 3 of subsection L of this section
in any year, the Tax Commission shall permit any excess over Ten
Million Dollars ($10,000,000.00) but shall factor such excess into
the percentage adjustment formula for subsequent years with respect
to any changes to the future of the credit.

N. The Tax Commission shall notify the Office of the State
Secretary of Energy and Environment at any time when the amount of
claims for credits allowed pursuant to this section reaches eighty
percent (80%) of the total annual limit provided in subsection J of
this section. Upon such notification, the Secretary shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically provide notice to the Governor,
President Pro Tempore of the Senate, and Speaker of the House of
Representatives.

SECTION 223. AMENDATORY 68 O.S. 2021, Section 2357.32A,
is amended to read as follows:

Section 2357.32A. A. Except as otherwise provided in
subsection H of this section, for tax years beginning on or after
January 1, 2003, but with respect to tax credits for eligible
renewable resources described by subparagraphs b, c and d of
paragraph 2 of this subsection, for tax years ending not later than
December 31, 2021, there shall be allowed a credit against the tax
imposed by Section 2355 of this title to a taxpayer for the
taxpayer’s production and sale to an unrelated person of electricity
generated by zero-emission facilities located in this state. As
used in this section:

1. “Electricity generated by zero-emission facilities” means
electricity that is exclusively produced by any facility located in
this state with a rated production capacity of one megawatt (1 mw)
or greater, constructed for the generation of electricity and placed
in operation after June 4, 2001, and with respect to electricity
generated by wind for any facility placed in operation not later
than July 1, 2017, which utilizes eligible renewable resources as
its fuel source. The construction and operation of such facilities
shall result in no pollution or emissions that are or may be harmful

ENR. S. B. NO. 1877 Page 481
to the environment, pursuant to a determination by the Department of
Environmental Quality; and

2. “Eligible renewable resources” means resources derived from:

a. wind,

b. moving water,

c. sun, or

d. geothermal energy.

B. For facilities placed in operation on or after January 1,
2003, and before January 1, 2007, the amount of the credit for the
electricity generated on or after January 1, 2003, but prior to
January 1, 2004, shall be seventy-five one-hundredths of one cent
($0.0075) for each kilowatt-hour of electricity generated by zero-
emission facilities. For electricity generated on or after January
1, 2004, but prior to January 1, 2007, the amount of the credit
shall be fifty one-hundredths of one cent ($0.0050) per kilowatt-
hour for electricity generated by zero-emission facilities. For
electricity generated on or after January 1, 2007, but prior to
January 1, 2012, the amount of the credit shall be twenty-five one-
hundredths of one cent ($0.0025) per kilowatt-hour of electricity
generated by zero-emission facilities. For facilities placed in
operation on or after January 1, 2007, and before January 1, 2021,
or with respect to electricity generated by wind for any facility
placed in operation not later than July 1, 2017, the amount of the
credit for the electricity generated on or after January 1, 2007,
shall be fifty one-hundredths of one cent ($0.0050) for each
kilowatt-hour of electricity generated by zero-emission facilities.

C. Credits may be claimed with respect to electricity generated
on or after January 1, 2003, during a ten-year period following the
date that the facility is placed in operation on or after June 4,
2001.

D. 1. For credits generated prior to January 1, 2014, if the
credit allowed pursuant to this section exceeds the amount of income
taxes due or if there are no state income taxes due on the income of
the taxpayer, the amount of the credit allowed but not used in any

ENR. S. B. NO. 1877 Page 482
tax year may be carried forward as a credit against subsequent
income tax liability for a period not exceeding ten (10) years.

2. Except as provided by paragraph 3 of this subsection, for
credits generated, but not used, on or after January 1, 2014, the
Oklahoma Tax Commission shall refund, at the taxpayer’s election,
directly to the taxpayer eighty-five percent (85%) of the face
amount of such credits. The direct refund of the credits pursuant
to this paragraph shall be available to all taxpayers, including,
without limitation, pass-through entities, and taxpayers subject to
Section 2355 of this title, but shall not be available to any
entities falling within the provisions of subsection E of this
section. The amount of any direct refund of credits actually
received at the eighty-five percent (85%) level by the taxpayer
pursuant to this paragraph shall not be subject to the tax imposed
by Section 2355 of this title. If the pass-through entity does not
file a claim for a direct refund, the pass-through entity shall
allocate the credit to one or more of the shareholders, partners or
members of the pass-through entity; provided, the total of all
credits refunded or allocated shall not exceed the amount of the
credit or refund to which the pass-through entity is entitled. For
the purposes of this paragraph, “pass-through entity” means a
corporation that for the applicable tax year is treated as an S
corporation under the Internal Revenue Code of 1986, as amended,
general partnership, limited partnership, limited liability
partnership, trust or limited liability company that for the
applicable tax year is not taxed as a corporation for federal income
tax purposes.

3. With respect to credits claimed for the first time on or
after July 1, 2019, or the effective date of this act, whichever
date last occurs, a taxpayer may irrevocably elect to not receive a
direct refund for a given tax year. Any credits not directly
refunded may be carried forward as a credit against subsequent
income tax liability for a period not exceeding ten (10) years. If
a taxpayer makes the irrevocable election to carry over credits for
a given tax year pursuant to this paragraph, any credits remaining
in the tenth year of carry forward shall be refunded at eighty-five
percent (85%).

E. Any nontaxable entities, including agencies of the State of
Oklahoma or political subdivisions thereof, shall be eligible to

ENR. S. B. NO. 1877 Page 483
establish a transferable tax credit in the amount provided in
subsection B of this section. Such tax credit shall be a property
right available to a state agency or political subdivision of this
state to transfer or sell to a taxable entity, whether individual or
corporate, who shall have an actual or anticipated income tax
liability under Section 2355 of this title. These tax credit
provisions are authorized as an incentive to the State of Oklahoma,
its agencies, and its political subdivisions to encourage the
expenditure of funds in the development, construction, and
utilization of electricity from zero-emission facilities as defined
in subsection A of this section.

F. For credits generated prior to January 1, 2014, the amount
of the credit allowed, but not used, shall be freely transferable at
any time during the ten (10) years following the year of
qualification. Any person to whom or to which a tax credit is
transferred shall have only such rights to claim and use the credit
under the terms that would have applied to the entity by whom or by
which the tax credit was transferred. The provisions of this
subsection shall not limit the ability of a tax credit transferee to
reduce the tax liability of the transferee, regardless of the actual
tax liability of the tax credit transferor, for the relevant taxable
period. The transferor initially allowed the credit and any
subsequent transferees shall jointly file a copy of any written
transfer agreement with the Oklahoma Tax Commission within thirty
(30) days of the transfer. The written agreement shall contain the
name, address and taxpayer identification number or Social Security
number of the parties to the transfer, the amount of the credit
being transferred, the year the credit was originally allowed to the
transferor, and the tax year or years for which the credit may be
claimed. The Tax Commission may promulgate rules to permit
verification of the validity and timeliness of the tax credit
claimed upon a tax return pursuant to this subsection but shall not
promulgate any rules that unduly restrict or hinder the transfers of
such tax credit. The tax credit allowed by this section, upon the
election of the taxpayer, may be claimed as a payment of tax, a
prepayment of tax or a payment of estimated tax for purposes of
Section 1803 or Section 2355 of this title.

G. For electricity generation produced and sold in a calendar
year, the tax credit allowed by the provisions of this section, upon
election of the taxpayer, shall be treated and may be claimed as a

ENR. S. B. NO. 1877 Page 484
payment of tax, a prepayment of tax or a payment of estimated tax
for purposes of Section 2355 of this title on or after July 1 of the
following calendar year.

H. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure, or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable until the provisions
of this subsection shall cease to be operative on July 1, 2011.
Beginning July 1, 2011, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure, or
other act occurring on or after July 1, 2010, according to the
provisions of this section. Any tax credits which accrue during the
period of July 1, 2010, through June 30, 2011, may not be claimed
for any period prior to the taxable year beginning January 1, 2012.
No credits which accrue during the period of July 1, 2010, through
June 30, 2011, may be used to file an amended tax return for any
taxable year prior to the taxable year beginning January 1, 2012.

I. For tax years beginning on or after January 1, 2019, the
total amount of credits authorized by this section with respect to
eligible renewable resources described by subparagraphs b, c and d
of paragraph 2 of subsection A of this section used to offset tax or
paid as a refund shall be adjusted annually to limit the annual
amount of credits to Five Hundred Thousand Dollars ($500,000.00).
The Tax Commission shall annually calculate and publish a percentage
by which the credits authorized by subparagraphs b, c and d of
paragraph 2 of subsection A of this section shall be reduced so the
total amount of credits used to offset tax or paid as a refund does
not exceed Five Hundred Thousand Dollars ($500,000.00) per year.
The formula to be used for the percentage adjustment shall be Five
Hundred Thousand Dollars ($500,000.00) divided by the credits
claimed in the second preceding year.

J. Pursuant to subsection I of this section, in the event the
total tax credits authorized by this section with respect to
eligible renewable resources described by subparagraphs b, c and d
of paragraph 2 of subsection A of this section exceed Five Hundred
Thousand Dollars ($500,000.00) in any calendar year, the Tax
Commission shall permit any excess over Five Hundred Thousand
Dollars ($500,000.00) but shall factor such excess into the
percentage adjustment formula for subsequent years.

ENR. S. B. NO. 1877 Page 485

K. Any credits authorized by this section with respect to
eligible renewable resources described by subparagraphs b, c and d
of paragraph 2 of subsection A of this section not used or unable to
be used because of the provisions of subsection I or J of this
section may be carried over until such credits are fully used.

L. The Tax Commission shall prepare an annual report and,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit it to the Office of the State
Secretary of Energy and Environment, the Governor, the Speaker of
the Oklahoma House of Representatives, and the President Pro Tempore
of the Oklahoma State Senate summarizing the amount of credits
allowed pursuant to subparagraphs b, c, and d of paragraph 2 of
subsection A of this section. The Secretary of Energy and
Environment shall, utilizing such centralized filing system,
electronically submit recommendations for changes to the tax credit
to the Governor, the Speaker of the Oklahoma House of
Representatives, and the President Pro Tempore of the Oklahoma State
Senate within sixty (60) days after receipt of the report from the
Oklahoma Tax Commission.

SECTION 224. AMENDATORY 68 O.S. 2021, Section 2357.65,
is amended to read as follows:

Section 2357.65. On or before November 1 of each year
subsequent to the effective date of this act, the Oklahoma Tax
Commission shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically file a report with
the Speaker of the House of Representatives and the President Pro
Tempore of the Senate. The report shall state the amount of credits
actually claimed and allowed pursuant to the provisions of this act
during the previous calendar year, statistical information on the
qualified investments made by qualified small business capital
companies during the previous year, an estimate of the number of
jobs created in this state during the previous year, and such other
information as the Tax Commission may deem relevant.

SECTION 225. AMENDATORY 68 O.S. 2021, Section 2357.76,
is amended to read as follows:

ENR. S. B. NO. 1877 Page 486
Section 2357.76. On or before November 1 of each year
subsequent to the effective date of the Rural Venture Capital
Formation Incentive Act, the Oklahoma Tax Commission shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically file a report with the Speaker of the
House of Representatives and the President Pro Tempore of the
Senate. The report shall state the amount of credits actually
claimed and allowed pursuant to the provisions of this act during
the previous calendar year, statistical information on the qualified
investments made by qualified rural small business capital companies
during the previous year, an estimate of the number of jobs created
in this state during the previous year, and such other information
as the Tax Commission may deem relevant to the effective
administration of the Rural Venture Capital Formation Incentive Act.

SECTION 226. AMENDATORY 68 O.S. 2021, Section 2370.1, as
amended by Section 1, Chapter 223, O.S.L. 2024 (68 O.S. Supp. 2025,
Section 2370.1), is amended to read as follows:

Section 2370.1. A. There shall be allowed a credit against the
tax imposed by Section 2370 of this title for any state banking
association, national banking association and credit union organized
under the laws of this state and whose main office is located in the
state, for the amount of the guaranty fee paid by the banking
association or credit union to the United States Small Business
Administration pursuant to the “7(a)” loan guaranty program.

B. The credit authorized by this section may be claimed for
guaranty fees paid to the Small Business Administration on behalf of
the borrower.

C. No credit may be claimed pursuant to this section if,
pursuant to the agreement between the banking association or credit
union and the entity to which proceeds are made available, the
banking association or credit union adds the amount of the SBA 7(a)
loan guaranty fee to the amount financed by the borrower or in any
other way recovers the guaranty fee amount from the borrower.

D. The credit authorized by this section may be claimed and if
not fully used in the initial year for which the credit is claimed
may be carried over, in order, to each of the five (5) succeeding
taxable years. The credit authorized by this section may not be

ENR. S. B. NO. 1877 Page 487
used to reduce the tax liability of the credit claimant below zero
(0).

E. The Oklahoma Tax Commission shall prepare a report regarding
the amount of tax credits claimed as authorized by this section.
The report shall be electronically submitted to the Speaker of the
House of Representatives and to the President Pro Tempore of the
Senate not later than March 31 of each year utilizing the
centralized filing system provided for in Section 378 of this act.

F. Pursuant to Section 46A of Title 62 of the Oklahoma
Statutes, there shall be a measurable goal of retaining and/or or
creating two thousand jobs per year in Oklahoma for the credit
against the tax imposed by Section 2370 of this title.

SECTION 227. AMENDATORY 68 O.S. 2021, Section 3507, is
amended to read as follows:

Section 3507. A. A political subdivision receiving an
incentive payment pursuant to the provisions of this act shall
deposit such payment in a separate fund and shall not be permitted
to use such monies for any purpose other than payment of expenses
associated with a qualified federal facility.

A political subdivision shall be permitted to invest the monies
accruing to such fund in such manner as is authorized by law for
investment of other monies of the political subdivision; provided,
the interest earned from such investments shall be deposited to the
fund and shall be used solely for payment of expenses associated
with a qualified federal facility.

B. A political subdivision receiving an incentive payment
pursuant to the provisions of this act shall annually cause an
independent financial audit of such fund to be made and shall submit
such audit to the Department of Commerce, the Oklahoma Tax
Commission, and the State Auditor and Inspector. The State Auditor
and Inspector shall review such audit and, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically report his or her findings to the Governor, the
President Pro Tempore of the Senate, and the Speaker of the House of
Representatives.

ENR. S. B. NO. 1877 Page 488
C. At the end of the project term or at the end of the period
of time for which the qualified federal facility is leased or
conveyed to the government of the United States, whichever is later,
any assets of the qualified federal facility owned by the political
subdivision, including, but not limited to any property or any
monies remaining in the fund created pursuant to the provisions of
subsection A of this section, shall be disposed of between the
political subdivision and the state according to the proportions of
funding provided by the state through incentive payments authorized
by this act and funding provided by the political subdivision.

SECTION 228. AMENDATORY 68 O.S. 2021, Section 3610, is
amended to read as follows:

Section 3610. The Oklahoma Department of Commerce shall prepare
triennially a report which shall include, but not be limited to,
documentation of the new direct jobs created under the Oklahoma
Quality Jobs Program Act and a fiscal analysis of the costs and
benefits of the Program to the state. The report shall be
electronically submitted to the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, and the Governor of
this state no later than March 1, 1996, and every three (3) years
thereafter utilizing the centralized filing system provided for in
Section 378 of this act. The report may be used for the purpose of
determining whether to continue or sunset the Oklahoma Quality Jobs
Program Act.

SECTION 229. AMENDATORY 68 O.S. 2021, Section 3633, as
amended by Section 2, Chapter 341, O.S.L. 2025 (68 O.S. Supp. 2025,
Section 3633), is amended to read as follows:

Section 3633. A. There is hereby created an incentive rebate
program for certain film projects and eligible television series
projects filmed or produced in Oklahoma who meet the requirements of
this act.

B. The rebate program shall be administered by the Oklahoma
Department of Commerce and the Oklahoma Tax Commission.

C. By October 1 of each year, the Oklahoma Department of
Commerce shall, utilizing the centralized filing system provided for
in Section 378 of this act, electronically submit an annual report

ENR. S. B. NO. 1877 Page 489
to the Speaker of the House of Representatives, the President Pro
Tempore of the Senate, the Chair of the Appropriations and Budget
Committee of the House of Representatives, the Chair of the
Appropriations Committee of the Senate, and the Director of the
Legislative Office of Fiscal Transparency detailing the program and
incentive rebate payments.

D. The Oklahoma Department of Commerce and the Oklahoma Tax
Commission may promulgate rules to implement the provisions of this
act.

E. To be eligible for a rebate payment a production company
shall:

1. Submit an application and documentation to the Oklahoma
Department of Commerce as required by the Department;

2. Have filed any Oklahoma tax returns and tax documents
required by law;

3. Provide evidence that all Oklahoma crew and local vendors
have been paid and that there are no pending liens against the
production company in this state;

4. Provide evidence of financing for production prior to the
commencement of principal photography;

5. Provide evidence of a certificate of general liability
insurance with a minimum coverage of One Million Dollars
($1,000,000.00) and a workers’ compensation policy in compliance
with law, which shall include coverage of employer’s liability;

6. Provide evidence, as required by the Department, that the
projects pursuant to this act are completed; and

7. The production company, or its payroll service provider,
shall withhold Oklahoma income tax at the highest percentage rate
found in the withholding statutes, on all payments to loan-out
companies for services performed in Oklahoma. The amounts so
withheld shall be allocated to the loan-out company’s employees
based on the payments made to the loan-out company’s employees for
services performed in Oklahoma. The loan-out company employees

ENR. S. B. NO. 1877 Page 490
performing services in Oklahoma shall be considered taxable and the
loan-out company shall be subject to income taxation in the taxable
year in which the loan-out company’s employees perform services in
Oklahoma.

F. A production company shall not be eligible to receive both a
rebate payment pursuant to the provisions of this act and an
exemption from sales tax pursuant to the provisions of paragraph 23
of Section 1357 of Title 68 of the Oklahoma Statutes. If a
production company has received the exemption from sales taxes and
submits a claim for rebate pursuant to the provisions of this act,
the company shall be required to fully repay the amount of the
exemption to the Tax Commission. A claim for a rebate shall include
documentation from the Tax Commission that repayment has been made
as required in this subsection or shall include an affidavit from
the production company that the company has not received an
exemption from sales tax pursuant to the provisions of paragraph 23
of Section 1357 of Title 68 of the Oklahoma Statutes.

G. The Department of Commerce shall approve or disapprove all
claims for rebate and shall notify the Tax Commission subject to the
limitations set forth in Section 4 of this act. Upon notification
of approval from the Department, the Commission shall issue payment
for all approved claims from funds held in the Filmed in Oklahoma
Program Revolving Fund created pursuant to Section 9 of this act and
subject to the limitations set forth in Section 4 of this act. If
the amount of approved claims exceeds the balance of the revolving
fund, payments shall be made in the order the claims are approved by
the Department. If an approved claim is not paid in whole, the
unpaid claim or unpaid portion of the claim shall be paid upon the
availability of funds.

SECTION 230. AMENDATORY Section 4, Chapter 66, O.S.L.
2022, as amended by Section 1, Chapter 1, O.S.L. 2023 (68 O.S. Supp.
2025, Section 3645.4), is amended to read as follows:

Section 3645.4. A. 1. There is hereby created until July 1,
2032, an investment rebate program for the cost of qualified capital
expenditures by establishments which create not less than a
threshold number of new direct jobs as provided in this section.

ENR. S. B. NO. 1877 Page 491
2. a. The threshold number of new direct jobs required for
establishments to qualify and remain qualified for
investment rebate payments created in paragraph 1 of
this subsection shall be as follows:

(1) five hundred (500) new direct jobs in year one of
the rebate payment period,

(2) one thousand (1,000) cumulative new direct jobs
in year two of the rebate payment period,

(3) two thousand five hundred (2,500) cumulative new
direct jobs in year three of the rebate payment
period,

(4) three thousand five hundred (3,500) cumulative
new direct jobs in year four of the rebate
payment period, and

(5) three thousand five hundred (3,500) cumulative
new direct jobs in year five of the rebate
payment period.

b. For establishments qualifying for investment rebate
payments pursuant to division (2) of subparagraph a of
paragraph 1 of subsection E of this section, the
threshold numbers provided in this paragraph shall be
reduced proportionally to reflect the lesser capital
expenditure of such establishment. Such reduction
shall be achieved by multiplying the thresholds in
paragraph 2 of this subsection by a fractional
equivalent equal to the following: the capital
expenditure plan amount of the establishment
qualifying pursuant to division (2) of subparagraph a
of paragraph 1 of subsection E of this section,
divided by the capital expenditure plan amount of the
establishment qualifying pursuant to division (1) of
subparagraph a of paragraph 1 of subsection E of this
section.

3. New direct jobs in this state of a subsidiary of a primary
establishment, if such subsidiary is defined or classified in the

ENR. S. B. NO. 1877 Page 492
NAICS Manual under Industry Group No. 5132, 5222, or 5413, shall be
aggregated with the number of new direct jobs in the state of the
primary establishment for the purpose of determining if the
thresholds provided in paragraph 2 of this subsection are met.

B. The investment rebate program shall be administered by the
Oklahoma Department of Commerce and the Oklahoma Tax Commission.

C. By October 1 of each year, the Oklahoma Department of
Commerce shall, utilizing the centralized filing system provided for
in Section 378 of this act, submit electronically an annual report
to the Speaker of the House of Representatives, the President Pro
Tempore of the Senate, the Chair of the Appropriations and Budget
Committee of the House of Representatives, the Chair of the
Appropriations Committee of the Senate, and the Executive Director
of the Legislative Office of Fiscal Transparency detailing the
program and investment rebate payments.

D. The Oklahoma Department of Commerce and the Oklahoma Tax
Commission may promulgate rules to implement the provisions of the
Large-scale Economic Activity and Development Act of 2022 (LEAD
Act).

E. To be eligible for consideration for an investment rebate
payment awarded under the provisions of the LEAD Act, a primary
establishment shall:

1. a. (1) Submit an application and documentation to the
Oklahoma Department of Commerce, as required by
the Department, outlining a capital expenditure
plan in this state associated with qualified
capital expenditures totaling no less than Three
Billion Six Hundred Six Million Dollars
($3,606,000,000.00), or

(2) Submit an application and documentation to the
Oklahoma Department of Commerce, as required by
the Department, outlining a capital expenditure
plan in this state associated with qualified
capital expenditures totaling no less than Five
Hundred Million Dollars ($500,000,000.00),
provided a separate establishment has been

ENR. S. B. NO. 1877 Page 493
approved by the Oklahoma Department of Commerce
to participate in the investment rebate program
pursuant to division (1) of this subparagraph,
and such establishment participating pursuant to
division (1) of this subparagraph remains in
compliance with such approved application, and

b. Have made qualified capital expenditures of no less
than twenty percent (20%) of the capital expenditure
plan outlined in the application submitted by the
primary establishment and approved by the Oklahoma
Department of Commerce, pursuant to the provisions of
the LEAD Act.

New investment in this state of a subsidiary of a primary
establishment, if such subsidiary is defined or classified in the
NAICS Manual under Industry Group No. 5132, 5222, or 5413, shall be
aggregated with the investment in this state of the primary
establishment for the purpose of determining if the thresholds
provided in this paragraph are met;

2. Be qualified to receive payments pursuant to the provisions
of the Oklahoma Quality Jobs Program Act created pursuant to Section
3601 of Title 68 of the Oklahoma Statutes; and

3. Have filed all Oklahoma tax returns and tax documents
required by law.

F. 1. Notwithstanding any other provision of law, if a primary
establishment receives an investment rebate payment pursuant to the
provisions of the LEAD Act, neither the qualified establishment nor
its subsidiaries shall be eligible to receive the credits provided
for in Section 2357.4 of Title 68 of the Oklahoma Statutes, in
connection with the project or development for which the investment
rebate payment was based; provided, however, the limitation provided
in this paragraph, on claiming credits, shall not apply to the
amount of qualifying capital expenditure in excess of Four Billion
Five Hundred Million Dollars ($4,500,000,000.00) made by an
establishment on a project or development in this state.

2. Notwithstanding any other provision of law, no investment
expenditure shall be utilized for calculation purposes in a way that

ENR. S. B. NO. 1877 Page 494
results in the qualification of more than one establishment under
the provisions of the LEAD Act, for investment rebate payments based
on the same expenditure.

3. Notwithstanding any other provision of law, no investment
rebate payment amount pre-qualified or pre-encumbered by the
Oklahoma Department of Commerce for an establishment qualifying for
payment under the provisions of division (1) of subparagraph a of
paragraph 1 of subsection E of this section, shall be reallocated to
an establishment that at such time is participating under an
approved application pursuant to division (2) of subparagraph a of
paragraph 1 of subsection E of this section.

G. 1. Except as limited by paragraph 2 of this subsection, the
Oklahoma Department of Commerce shall approve or disapprove claims
for rebates and shall notify the Tax Commission subject to the
limitations set forth in Section 3645.5 of this title. Upon
notification of approval from the Department, the Commission shall
issue payment for all approved claims from funds held in the Large-
scale Economic Activity and Development Fund created pursuant to
Section 3645.6 of this title and subject to the limitations set
forth in Section 3645.5 of this title.

2. The Department shall disapprove all applications and claims,
as well as portions of applications and claims, for rebates that
would exceed the balance of available funds in the Large-scale
Economic Activity and Development Fund.

H. The total amount of applications approved and investment
rebate payments awarded under the provisions of the LEAD Act shall
not exceed the total amount of monies designated by law for deposit
to the Large-scale Economic Activity and Development Fund.

SECTION 231. AMENDATORY 68 O.S. 2021, Section 3808, is
amended to read as follows:

Section 3808. The Oklahoma Department of Commerce shall prepare
triennially a report which shall include, but not be limited to,
documentation of the new direct jobs created under the Former
Military Facility Development Act and a fiscal analysis of the costs
and benefits of the act to the state. The report shall be
electronically submitted to the President Pro Tempore of the Senate,

ENR. S. B. NO. 1877 Page 495
the Speaker of the House of Representatives, and the Governor of
this state no later than March 1, 1996, and every three (3) years
thereafter utilizing the centralized filing system provided for in
Section 378 of this act. The report may be used for the purpose of
determining whether to continue or sunset the Former Military
Facility Development Act.

SECTION 232. AMENDATORY 68 O.S. 2021, Section 3910, is
amended to read as follows:

Section 3910. The Oklahoma Department of Commerce shall prepare
triennially a report which shall include, but not be limited to,
documentation of the new direct jobs created under the Small
Employer Quality Jobs Incentive Act and a fiscal analysis of the
costs and benefits of the act to the state. The report shall be
electronically submitted to the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, and the Governor no
later than March 1, 2001, and every three (3) years thereafter
utilizing the centralized filing system provided for in Section 378
of this act. The report may be used for the purpose of determining
whether to continue or sunset the Small Employer Quality Jobs
Incentive Act.

SECTION 233. AMENDATORY 68 O.S. 2021, Section 3920, is
amended to read as follows:

Section 3920. The Oklahoma Department of Commerce shall prepare
a report which shall include, but not be limited to, documentation
of the new direct jobs created under this act and a fiscal analysis
of the costs and benefits of the act to the state. The report shall
be electronically submitted to the President Pro Tempore of the
Senate, the Speaker of the House of Representatives, and the
Governor no later than March 1, 2011, and every three (3) years
thereafter utilizing the centralized filing system provided for in
Section 378 of this act. The report may be used for the purpose of
determining whether to continue or sunset the 21st Century Quality
Jobs Incentive Act.

SECTION 234. AMENDATORY 68 O.S. 2021, Section 4206, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 496
Section 4206. A. The Quality Investment Committee shall meet
not less than once per quarter and consider applications for Quality
Investment Contracts from at-risk establishments. The Committee
shall review each application received since its last meeting and
consider for each application economic impacts, historical
contributions trends, and tax revenue projections analyses conducted
by or on behalf of the Oklahoma Department of Commerce; whether the
establishment is located in an economically distressed area of the
state; whether loss of the establishment would cause the local
community to become an economically distressed area; the number of
jobs of Oklahoma citizens which are at risk; and the average salary
of the jobs which are at risk.

B. Based on its review of applications, the Committee shall
make, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit its recommendations
to the Governor, the Speaker of the House of Representatives, and
the President Pro Tempore of the Senate as to which applications for
investment contracts should be approved and the percentage of
investment the state should make as an incentive payment to the at-
risk establishment for those contracts which are approved. In
making such recommendations, the Committee shall not make
recommendations for Quality Investment Contracts which could require
payments in any year in excess of the amount allowed by the Oklahoma
Quality Investment Act or the provisions of Section 23 of Article X
of the Oklahoma Constitution.

C. The Governor, the Speaker of the House of Representatives,
and the President Pro Tempore of the Senate shall meet as often as
is necessary to consider recommendations of the Quality Investment
Committee. The Governor shall schedule and chair such meetings.
Quality Investment Contracts shall only be entered into upon the
unanimous approval by the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate of the
terms of the contract. A decision on recommendations of the Quality
Investment Committee shall be made within thirty (30) days of
receipt of such recommendations.

D. For any fiscal year, the incentives shall not exceed ten
percent (10%) of the amount invested by an establishment in capital
assets to be utilized in this state. The contract shall make
payment of any incentives in any fiscal year contingent on the

ENR. S. B. NO. 1877 Page 497
balance at the beginning of such fiscal year in the Constitutional
Reserve Fund being equal to or greater than Eighty Million Dollars
($80,000,000.00) and on the certification by the State Board of
Equalization for such fiscal year General Revenue Fund being greater
than that of the preceding fiscal year certification. Investment
contracts authorized by this act shall provide that if any incentive
payment is payable during a fiscal year in which either the balance
at the beginning of the fiscal year in the Constitutional Reserve
Fund is not equal to or greater than Eighty Million Dollars
($80,000,000.00) or when the certification by the State Board of
Equalization for such fiscal year General Revenue Fund is less than
that of the immediately prior fiscal year certification, then any
incentive payments which would have been payable during such fiscal
year shall be payable in the first fiscal year when funds are
available pursuant to the provisions of division 1 of subparagraph
(b) of paragraph 6 of Section 23 of Article X of the Oklahoma
Constitution. In the event that the amount of incentives due in any
year under investment contracts authorized by this subsection is
less than the amounts available for payment under this subsection in
such year, then incentives payments for such year shall be reduced
pro rata.

SECTION 235. AMENDATORY 68 O.S. 2021, Section 4210, is
amended to read as follows:

Section 4210. A. The Oklahoma Department of Commerce shall,
using its own resources or through a contract with a service
provider, conduct a five-year performance review of the Oklahoma
Quality Investment Act. The performance review may include measures
of economic productivity in areas or regions affected by the
business activity of any recipient of a payment authorized pursuant
to this act. Such measures of economic productivity may include,
but shall not be limited to, total payroll statistics, business
activity supported by the business activity of the payment
recipients, growth in property tax values attributable to capital
expansion, growth in state or local tax sources attributable to
capital expansion, increased investment activity by other business
entities, business site location inquiries related to the business
activity of a recipient or such other indicators of the net benefits
to the State of Oklahoma or an economic region as the Department of
Commerce or its service provider may select.

ENR. S. B. NO. 1877 Page 498
B. The results of the five-year performance review shall be
provided in a written report to be submitted not later than January
31, 2012, and not later than January 31 each successive five-year
period covering the results of performance measurement of the
Oklahoma Quality Investment Act as conducted pursuant to subsection
A of this section. The first such report shall only be required to
address the performance measures for the period of July 1, 2006,
through December 31, 2011. The report shall be electronically
provided to the Governor, the Speaker of the Oklahoma House of
Representatives, the President Pro Tempore of the State Senate, and
to each member of the Quality Investment Committee utilizing the
centralized filing system provided for in Section 378 of this act.

C. The Quality Investment Committee shall use the results of
the five-year performance report in making determinations required
of it pursuant to the Oklahoma Quality Investment Act.

SECTION 236. AMENDATORY 68 O.S. 2021, Section 4310, is
amended to read as follows:

Section 4310. The Executive Director of the Oklahoma Department
of Commerce shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically make a report to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate not later than December 1, 2013,
and each December 1 thereafter if this act is in force and effect,
regarding the effect and impact of the Oklahoma Quality Events
Incentive Act.

SECTION 237. AMENDATORY 68 O.S. 2021, Section 4510, is
amended to read as follows:

Section 4510. The Oklahoma Department of Commerce shall prepare
triennially a report which shall include, but not be limited to,
documentation of the new direct jobs created under the Oklahoma
Remote Quality Jobs Incentive Act and a fiscal analysis of the costs
and benefits of this act to the state. The report shall be
electronically submitted to the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, and the Governor of
this state no later than March 1, 2023, and every three (3) years
thereafter utilizing the centralized filing system provided for in
Section 378 of this act. The report may be used for the purpose of

ENR. S. B. NO. 1877 Page 499
determining whether to continue or sunset the Oklahoma Remote
Quality Jobs Incentive Act.

SECTION 238. AMENDATORY 68 O.S. 2021, Section 50016, is
amended to read as follows:

Section 50016. The Department of Tourism and Recreation shall
develop, periodically revise, and maintain a comprehensive state
master capital improvement plan for state park and recreation
facilities under its jurisdiction, and shall prioritize projects
within the plan. Prior to the expenditure of funds in the Oklahoma
Tourism Capital Improvement Revolving Fund, the Department shall
identify and list the specific projects for which such funds will be
used, which shall be taken from the state master plan in the order
of priority. If the Department determines that an emergency exists
which could adversely affect the public peace, health, and safety,
it may identify and list a project not taken from the state master
plan in the order of priority. In such instance, the Department
shall include a determination of the existence of such emergency and
a justification therefor.

The list of such projects shall be electronically submitted to
the President Pro Tempore of the Oklahoma State Senate and the
Speaker of the Oklahoma House of Representatives utilizing the
centralized filing system provided for in Section 378 of this act.
The Legislature may, within thirty (30) legislative days after
submission of the list, in a bill or joint resolution approved by a
vote of not fewer than two-thirds (2/3) of the members in each house
thereof, disapprove one or more projects on the list and direct the
Department to revise and resubmit the list as provided herein.

SECTION 239. AMENDATORY 69 O.S. 2021, Section 322, is
amended to read as follows:

Section 322. A. There is hereby created the Office of Mobility
and Public Transit within the Department of Transportation. All
current Transit Division responsibilities, including oversight and
management of Federal Transit Administration (FTA) grants and
resources and the State Management Plan, are moved to the Office of
Mobility and Public Transit. Notwithstanding this subsection, the
Office of Mobility and Public Transit will not be responsible for
oversight and management of FTA grants and resources received by

ENR. S. B. NO. 1877 Page 500
transit agencies as a direct recipient of the FTA as that is not a
current responsibility of the Transit Division. All Federal Transit
Administration program implementations not currently managed by the
Department of Transportation shall be moved to the Office of
Mobility and Public Transit from other state agencies and other
state programs. The Office of Mobility and Public Transit is
charged with overseeing a network of public transit systems that
receive adequate funding to ensure the mobility needs of all
Oklahomans are met in a safe, affordable, reliable, consistent, and
coordinated fashion.

B. The Office of Mobility and Public Transit shall promulgate
rules and procedures to:

1. Implement innovative pilot programs including, but not
limited to, microtransit and autonomous vehicles in the following
systems:

a. EMBARK,

b. Tulsa Transit,

c. Little Dixie Transit, and

d. other transit systems as determined by the Department
of Transportation; and

2. Implement expansion of the current Veterans’ Ride Connect
call center at Pelivan Transit to create a “one call/one click”
statewide system for all citizens; and

3. Develop the Oklahoma Public Transit Policy Plan. The plan
will be developed jointly by the Department of Transportation and
the Oklahoma Transit Association.

a. A copy of the plan shall be submitted to the Governor,
the Speaker of the House of Representatives and the
President Pro Tempore of the Senate by July 1, 2020.

b. The plan shall:

ENR. S. B. NO. 1877 Page 501
(1) be all-inclusive of the public transit systems in
the state,

(2) reflect the results of the 2018 Oklahoma Transit
Needs Assessment conducted by the Small Urban and
Rural Transit Center,

(3) include all stakeholder input,

(4) provide for future collaboration and coordination
of an effective network of public transit systems
across the state,

(5) provide for future collaboration and coordination
among all public transit agencies and systems and
all stakeholders with an interest in public
transit, and

(6) provide for future collaboration and coordination
among all state agencies with an interest in
public transit including, but not limited to,
the:

(a) Oklahoma Department of Commerce,

(b) Oklahoma Department of Rehabilitation
Services,

(c) Oklahoma Department of Human Services,

(d) Oklahoma Department of Mental Health and
Substance Abuse Services,

(e) Oklahoma Department of Veterans Affairs,

(f) Oklahoma Association of Centers for
Independent Living,

(g) Oklahoma Health Care Authority,

(h) Oklahoma Employment Security Commission,

ENR. S. B. NO. 1877 Page 502
(i) Oklahoma State Department of Education,

(j) Oklahoma Department of Environmental
Quality, and

(k) Oklahoma Department of Labor.

SECTION 240. AMENDATORY 69 O.S. 2021, Section 1705.6, is
amended to read as follows:

Section 1705.6. The Oklahoma Turnpike Authority shall be
authorized to construct and it is the intent of the Legislature that
they do construct, by December 31, 1994, an interchange with a
tollgate and full entry and exit ramps in the vicinity of Luther on
the turnpike in Oklahoma County, provided that all right-of-way,
grading, base preparation, drainage and structures other than
tollgates and paving, are constructed without cost to the Authority
and ownership thereof transferred to the Authority upon completion
thereof. Such construction shall be in accordance with the most
recent edition of the geometric design standards of the American
Association of State Highway and Transportation Officials (AASHTO).
The Authority shall issue a progress report on the Luther
interchange by December 31, 1992, to the Speaker of the House of
Representatives and the President Pro Tempore of the Senate.

SECTION 241. AMENDATORY 69 O.S. 2021, Section 1728, is
amended to read as follows:

Section 1728. It is hereby declared to be the intent of the
Legislature, and the Authority is therefor directed, to hold
payments for engineering and legal services to the barest minimum,
and it is further the intent of the Legislature that in regard to
bonds hereafter issued, so far as possible, the service of the chief
engineer of the Authority to be utilized as the consulting engineer
and the service of the Attorney General be utilized as legal counsel
for the Authority. The Authority is hereby directed to, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit to the Governor and the Legislature a
complete detailed and itemized annual report of all sums, expended
for engineering and legal services, showing the amounts of and to
whom paid. Such report shall be submitted within thirty (30) days
after the convening of the Legislature for general sessions.

ENR. S. B. NO. 1877 Page 503

SECTION 242. AMENDATORY 69 O.S. 2021, Section 1912, is
amended to read as follows:

Section 1912. With monies made available, the Department of
Transportation shall create and maintain an on-line, updateable,
real-time, and interactive mapping system for the road and highway
systems for this state. The Department shall promulgate rules that
will provide for accessing the mapping system information. The
Department shall submit an annual report to the Speaker of the House
of Representatives and the President Pro Tempore of the Senate on
the progress for the design and implementation of the mapping system
until the system is operational.

SECTION 243. AMENDATORY 70 O.S. 2021, Section 3-104, as
last amended by Section 1, Chapter 445, O.S.L. 2025 (70 O.S. Supp.
2025, Section 3-104), is amended to read as follows:

Section 3-104. A. The supervision of the public school system
of Oklahoma shall be vested in the State Board of Education and,
subject to limitations otherwise provided by law, the State Board of
Education shall:

1. Adopt policies and make rules for the operation of the
public school system of the state;

2. Appoint, prescribe the duties, and fix the compensation of a
secretary, an attorney, and all other personnel necessary for the
proper performance of the functions of the State Board of Education.
The secretary shall not be a member of the Board;

3. Submit to the Governor a departmental budget based upon
major functions of the State Department of Education as prepared by
the Superintendent of Public Instruction and supported by detailed
data on needs and proposed operations as partially determined by the
budgetary needs of local school districts filed with the State Board
of Education for the ensuing fiscal year. Appropriations therefor
shall be made in lump-sum form for each major item in the budget as
follows:

a. State Aid to schools,

ENR. S. B. NO. 1877 Page 504
b. the supervision of all other functions of general and
special education including general control, free
textbooks, school lunch, Indian education, and all
other functions of the Board and an amount sufficient
to adequately staff and administer these services, and

c. the Board shall determine the details by which the
budget and the appropriations are administered.
Annually, the Board shall make preparations to
consolidate all of the functions of the Department in
such a way that the budget can be based on two items,
administration and aid to schools. A maximum amount
for administration shall be designated as a part of
the total appropriation;

4. On the first day of December preceding each regular session
of the Legislature, prepare and deliver electronically to the
Governor and the Legislature a report for the year ending June 30
immediately preceding the regular session of the Legislature. The
report shall contain:

a. detailed statistics and other information concerning
enrollment, attendance, expenditures including State
Aid, and other pertinent data for all public schools
in this state,

b. reports from each and every division within the State
Department of Education as submitted by the
Superintendent of Public Instruction and any other
division, department, institution, or other agency
under the supervision of the Board,

c. recommendations for the improvement of the public
school system of the state,

d. a statement of the receipts and expenditures of the
State Board of Education for the past year, and

e. a statement of plans and recommendations for the
management and improvement of public schools and such
other information relating to the educational

ENR. S. B. NO. 1877 Page 505
interests of the state as may be deemed necessary and
desirable;

5. Provide for the formulation and adoption of curricula,
courses of study, and other instructional aids necessary for the
adequate instruction of pupils in the public schools;

6. Have authority in matters pertaining to the licensure and
certification of persons for instructional, supervisory, and
administrative positions and services in the public schools of the
state subject to the provisions of Section 6-184 of this title, and
shall formulate rules governing the issuance and revocation of
certificates for superintendents of schools, principals,
supervisors, librarians, clerical employees, school nurses, school
bus drivers, visiting teachers, classroom teachers, and for other
personnel performing instructional, administrative, and supervisory
services, but not including members of boards of education and other
employees who do not work directly with pupils, and may charge and
collect reasonable fees for the issuance of such certificates:

a. the State Department of Education shall not issue a
certificate to and shall revoke the certificate of any
person who has been convicted, whether upon a verdict
or plea of guilty or upon a plea of nolo contendere,
or received a suspended sentence or any probationary
term for a crime or an attempt to commit a crime
provided for in Section 843.5 of Title 21 of the
Oklahoma Statutes if the offense involved sexual abuse
or sexual exploitation as those terms are defined in
Section 1-1-105 of Title 10A of the Oklahoma Statutes,
Section 741, 843.1, if the offense included sexual
abuse or sexual exploitation, 865 et seq., 885, 888,
891, 1021, 1021.2, 1021.3, 1040.13a, 1087, 1088,
1111.1, 1114, or 1123 of Title 21 of the Oklahoma
Statutes or who enters this state and who has been
convicted, received a suspended sentence, or received
a deferred judgment for a crime or attempted crime
which, if committed or attempted in this state, would
be a crime or an attempt to commit a crime provided
for in any of the laws,

ENR. S. B. NO. 1877 Page 506
b. except as provided for in subparagraph a of this
paragraph, the State Board of Education shall have the
authority to revoke or suspend a license or
certificate only for the following reasons:

(1) a willful violation of any federal or state law,

(2) the abuse or neglect of a child,

(3) moral turpitude, or

(4) a conviction for any of the offenses or basis for
revocation set forth in this section and Section
3-104.1 of this title,

c. the State Board of Education shall not have the
authority to summarily revoke or suspend a license or
certificate pending an individual proceeding for
revocation or other action unless for a valid
emergency as defined in the Administrative Procedures
Act. Upon initiating a formal investigation, the
State Department of Education shall notify via
certified mail and electronic mail the superintendent
of the school district where the license or
certificate holder is employed. In no event shall the
State Board of Education move to revoke or suspend a
license or certificate, for an emergency or otherwise,
unless the license or certificate holder and any
employing school district received notice via
certified mail and electronic mail within three (3)
days of the date the application was filed with the
State Board of Education, and

d. all funds collected by the State Department of
Education for the issuance of certificates to
instructional, supervisory, and administrative
personnel in the public schools of the state shall be
deposited in the “Teachers’ Certification Fund” in the
State Treasury and may be expended by the State Board
of Education to finance the activities of the State
Department of Education necessary to administer the
program, for consultative services, publication costs,

ENR. S. B. NO. 1877 Page 507
actual and necessary travel expenses as provided in
the State Travel Reimbursement Act incurred by persons
performing research work, and other expenses found
necessary by the State Board of Education for the
improvement of the preparation and certification of
teachers in this state. Provided, any unobligated
balance in the Teachers’ Certification Fund in excess
of Ten Thousand Dollars ($10,000.00) on June 30 of any
fiscal year shall be transferred to the General
Revenue Fund of this state. Until July 1, 1997, the
State Board of Education shall have authority for
approval of teacher education programs. The State
Board of Education shall also have authority for the
administration of teacher residency and professional
development, subject to the provisions of the Oklahoma
Teacher Preparation Act;

7. Promulgate rules governing the classification, inspection,
supervision, and accrediting of all public nursery, kindergarten,
elementary and secondary schools, and on-site educational services
provided by public school districts or state-accredited private
schools in partial hospitalization programs, day treatment programs,
and day hospital programs as defined in Section 3-104.7 of this
title and Section 175.20 of Title 10 of the Oklahoma Statutes for
persons between the ages of three (3) and twenty-one (21) years of
age in the state. However, no school shall be denied accreditation
solely on the basis of average daily attendance.

Any school district which maintains an elementary school and
faces the necessity of relocating its school facilities because of
construction of a lake, either by state or federal authority, which
will inundate the school facilities, shall be entitled to receive
probationary accreditation from the State Board of Education for a
period of five (5) years after June 12, 1975, and any school
district, otherwise qualified, shall be entitled to receive
probationary accreditation from the State Board of Education for a
period of two (2) consecutive years to attain the minimum average
daily attendance. The Head Start and public nurseries or
kindergartens operated from community action agency funds shall not
be subjected to the accrediting rules of the State Board of
Education. Neither will the State Board of Education make rules
affecting the operation of the public nurseries and kindergartens

ENR. S. B. NO. 1877 Page 508
operated from federal funds secured through community action
agencies even though they may be operating in the public schools of
the state. However, any of the Head Start or public nurseries or
kindergartens operated under federal regulations may make
application for accrediting from the State Board of Education but
will be accredited only if application for the approval of the
programs is made. The status of no school district shall be changed
which will reduce it to a lower classification until due notice has
been given to the proper authorities thereof and an opportunity
given to correct the conditions which otherwise would be the cause
of such reduction.

Private and parochial schools may be accredited and classified
in like manner as public schools or, if an accrediting association
is approved by the State Board of Education, by procedures
established by the State Board of Education to accept accreditation
by such accrediting association, if application is made to the State
Board of Education for such accrediting;

8. Be the legal agent of this state to accept, in its
discretion, the provisions of any Act of Congress appropriating or
apportioning funds which are now, or may hereafter be, provided for
use in connection with any phase of the system of public education
in Oklahoma. It shall prescribe such rules as it finds necessary to
provide for the proper distribution of such funds in accordance with
the state and federal laws;

9. Be and is specifically hereby designated as the agency of
this state to cooperate and deal with any officer, board, or
authority of the United States Government under any law of the
United States which may require or recommend cooperation with any
state board having charge of the administration of public schools
unless otherwise provided by law;

10. Be and is hereby designated as the state educational agency
referred to in Public Law 396 of the 79th Congress of the United
States, as amended, which may be known as the Richard B. Russell
National School Lunch Act, and the State Board of Education is
hereby authorized and directed to accept the terms and provisions of
the act and to enter into such agreements, not in conflict with the
Constitution of Oklahoma or the Constitution and Statutes of the
United States, as may be necessary or appropriate to secure for this

ENR. S. B. NO. 1877 Page 509
state the benefits of the school lunch program established and
referred to in the act;

11. Have authority to secure and administer the benefits of the
Richard B. Russell National School Lunch Act, Public Law 396 of the
79th Congress of the United States, as amended, in this state and is
hereby authorized to employ or appoint and fix the compensation of
such additional officers or employees and to incur such expenses as
may be necessary for the accomplishment of the above purpose, and
administer the distribution of any state funds appropriated by the
Legislature required as federal matching to reimburse on children’s
meals;

12. Accept and provide for the administration of any land,
money, buildings, gifts, donations, or other things of value which
may be offered or bequeathed to the schools under the supervision or
control of the Board;

13. Have authority to require persons having administrative
control of all school districts in Oklahoma to make such regular and
special reports regarding the activities of the schools in the
districts as the Board may deem needful for the proper exercise of
its duties and functions. Such authority shall include the right of
the State Board of Education to withhold all state funds under its
control, to withhold official recognition including accrediting,
until such required reports have been filed and accepted in the
office of the Board and to revoke the certificates of persons
failing or refusing to make such reports;

14. Have general supervision of the school lunch program. The
State Board of Education may sponsor workshops for personnel and
participants in the school lunch program and may develop, print, and
distribute free of charge or sell any materials, books, and
bulletins to be used in the school lunch programs. There is hereby
created in the State Treasury a revolving fund for the Board, to be
designated the “School Lunch Workshop Revolving Fund”. The fund
shall consist of all fees derived from or on behalf of any
participant in any such workshop sponsored by the State Board of
Education, or from the sale of any materials, books, and bulletins,
and funds shall be disbursed for expenses of such workshops and for
developing, printing, and distributing of the materials, books, and
bulletins relating to the school lunch program. The fund shall be

ENR. S. B. NO. 1877 Page 510
administered in accordance with Section 155 of Title 62 of the
Oklahoma Statutes;

15. Prescribe all forms for school district and county officers
to report to the State Board of Education where required. The State
Board of Education shall also prescribe a list of appropriation
accounts by which the funds of school districts shall be budgeted,
accounted for, and expended; and it shall be the duty of the State
Auditor and Inspector in prescribing all budgeting, accounting, and
reporting forms for school funds to conform to such lists;

16. Provide for the establishment of a uniform system of pupil
and personnel accounting, records, and reports;

17. Have authority to provide for the health and safety of
school children and school personnel while under the jurisdiction of
school authorities;

18. Provide for the supervision of the transportation of
pupils;

19. Have authority, upon request of the local school board, to
act in behalf of the public schools of the state in the purchase of
transportation equipment;

20. Have authority and is hereby required to perform all duties
necessary to the administration of the public school system in
Oklahoma as specified in the Oklahoma School Code; and, in addition
thereto, those duties not specifically mentioned herein if not
delegated by law to any other agency or official;

21. Administer the State Public Common School Building
Equalization Fund established by Section 32 of Article X of the
Oklahoma Constitution. Any monies as may be appropriated or
designated by the Legislature, other than ad valorem taxes, any
other funds identified by the State Department of Education, which
may include, but not be limited to, grants-in-aid from the federal
government for building purposes, the proceeds of all property that
shall fall to the state by escheat, penalties for unlawful holding
of real estate by corporations, and capital gains on assets of the
permanent school funds, shall be deposited in the State Public
Common School Building Equalization Fund. The fund shall be used to

ENR. S. B. NO. 1877 Page 511
aid school districts and charter schools in acquiring buildings,
subject to the limitations fixed by Section 32 of Article X of the
Oklahoma Constitution. It is hereby declared that redbud school
grants disbursed from the State Public Common School Building
Equalization Fund shall be used for the same purposes as a building
fund, as provided for in Section 1-118 of this title. It is hereby
declared that the term “school districts” as used in Section 32 of
Article X of the Oklahoma Constitution shall mean school districts
and eligible charter schools as defined in subsection B of this
section. The State Board of Education shall disburse redbud school
grants annually from the State Public Common School Building
Equalization Fund to public schools and eligible charter schools
pursuant to subsection B of this section. The Board shall
promulgate rules for the implementation of disbursing redbud school
grants pursuant to this section. The State Board of Education shall
prescribe rules for making grants of aid from, and for otherwise
administering, the fund pursuant to the provisions of this
paragraph, and may employ and fix the duties and compensation of
technicians, aides, clerks, stenographers, attorneys, and other
personnel deemed necessary to carry out the provisions of this
paragraph. The cost of administering the fund shall be paid from
monies appropriated to the State Board of Education for the
operation of the State Department of Education. From monies
apportioned to the fund, the State Department of Education may
reserve not more than one-half of one percent (1/2 of 1%) for
purposes of administering the fund;

22. Recognize that the Director of the Department of
Corrections shall be the administrative authority for the schools
which are maintained in the state reformatories and shall appoint
the principals and teachers in such schools. Provided, that rules
of the State Board of Education for the classification, inspection,
and accreditation of public schools shall be applicable to such
schools; and such schools shall comply with standards set by the
State Board of Education; and

23. Have authority to administer a revolving fund which is
hereby created in the State Treasury, to be designated the
“Statistical Services Revolving Fund”. The fund shall consist of
all monies received from the various school districts of the state,
the United States Government, and other sources for the purpose of
furnishing or financing statistical services and for any other

ENR. S. B. NO. 1877 Page 512
purpose as designated by the Legislature. The State Board of
Education is hereby authorized to enter into agreements with school
districts, municipalities, the United States Government,
foundations, and other agencies or individuals for services,
programs, or research projects. The Statistical Services Revolving
Fund shall be administered in accordance with Section 155 of Title
62 of the Oklahoma Statutes.

B. 1. The redbud school grants shall be determined by the
State Department of Education as follows:

a. divide the county four-mill levy revenue by four to
determine the nonchargeable county four-mill revenue
for each school district,

b. determine the amount of new revenue generated by the
five-mill building fund levy as authorized by Section
10 of Article X of the Oklahoma Constitution for each
school district as reported in the Oklahoma Cost
Accounting System for the preceding fiscal year,

c. add the amounts calculated in subparagraphs a and b of
this paragraph to determine the nonchargeable millage
for each school district,

d. add the nonchargeable millage in each district
statewide as calculated in subparagraph c of this
paragraph and divide the total by the average daily
membership in public schools statewide based on the
preceding school year’s average daily membership,
according to the provisions of Section 18-107 of this
title. This amount is the statewide nonchargeable
millage per student, known as the baseline local
funding per student,

e. all eligible charter schools shall be included in
these calculations as unique school districts,
separate from the school district that may sponsor the
eligible charter school, and the total number of
districts shall be used to determine the statewide
average baseline local funding per student,

ENR. S. B. NO. 1877 Page 513
f. for each school district or eligible charter school
which is below the baseline local funding per student,
the Department shall subtract the baseline local
funding per student from the average nonchargeable
millage per student of the school district or eligible
charter school to determine the nonchargeable millage
per student shortfall for each district, and

g. the nonchargeable millage per student shortfall for a
school district or eligible charter school shall be
multiplied by the average daily membership of the
preceding school year of the eligible school district
or eligible charter school. This amount shall be the
redbud school grant amount for the school district or
eligible charter school.

2. For fiscal year 2022, monies for the redbud school grants
shall be expended from the funds apportioned pursuant to Section 426
of Title 63 of the Oklahoma Statutes. For fiscal year 2023 and each
subsequent fiscal year, monies for the redbud school grants shall be
appropriated pursuant to Section 426 of Title 63 of the Oklahoma
Statutes, not to exceed three-fourths (3/4) of the tax collected in
the preceding fiscal year pursuant to Section 426 of Title 63 of the
Oklahoma Statutes as determined by the Oklahoma Tax Commission. For
fiscal year 2023 and each subsequent fiscal year, if such
appropriated funds are insufficient to fund the redbud school
grants, then an additional apportionment of funds shall be made from
sales tax collections as provided by subsection D of Section 1353 of
Title 68 of the Oklahoma Statutes. If both funds are insufficient,
the Department shall promulgate rules to permit a decrease to the
baseline local funding per student to the highest amount allowed
with the funding available.

3. As used in this section, “eligible charter school” shall
mean a charter school which is sponsored pursuant to the provisions
of the Oklahoma Charter Schools Act. Provided, however, eligible
charter school shall not include a statewide virtual charter school
sponsored by the Statewide Charter School Board but shall only
include those which provide in-person or blended instruction, as
provided by Section 1-111 of this title, to not less than two-thirds
(2/3) of students as the primary means of instructional service
delivery.

ENR. S. B. NO. 1877 Page 514

4. The Department shall develop a program to acknowledge the
redbud school grant recipients and shall include elected members of
the House of Representatives and Senate who represent the school
districts and eligible charter schools.

5. The Department shall create a dedicated page on its website
listing annual redbud school grant recipients, amount awarded to
each recipient, and other pertinent information about the Redbud
School Funding Act.

6. The Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
provide the chair of the House Appropriations and Budget Committee
and the chair of the Senate Appropriations Committee no later than
February 1 of each year with an estimate of the upcoming year’s
redbud school grant allocation as prescribed by this section.

SECTION 244. AMENDATORY 70 O.S. 2021, Section 3-104.10,
is amended to read as follows:

Section 3-104.10. A. The Imagination Library Revolving Fund
created pursuant to Section 2 of this act shall be used to promote
and foster the development of the Oklahoma Imagination Library
Program, which shall be a statewide program for encouraging pre-
school children to read by providing age-appropriate books to
children at their homes from birth to age five (5) on a monthly
basis.

B. Contingent upon funds appropriated to the Imagination
Library Revolving Fund created pursuant to Section 2 of this act,
the State Department of Education shall:

1. Manage the daily operations of the Oklahoma Imagination
Library Program and provide oversight of the Imagination Library
Revolving Fund including but not limited to establishing county-
based programs in all seventy-seven counties and advancing and
strengthening the programs to ensure enrollment growth;

2. Develop, promote, and coordinate a public awareness program
to make donors aware of the opportunity to donate to the Imagination
Library Revolving Fund; and

ENR. S. B. NO. 1877 Page 515

3. Develop, promote, and coordinate a public awareness program
to make the public aware of the opportunity to register children to
receive age-appropriate books on a monthly basis. To receive books
on a monthly basis, a child shall be under the age of five (5) and
shall have an Oklahoma residence.

C. The State Department of Education may establish a volunteer
advisory committee to assist with implementing the provisions of
paragraphs 2 and 3 of subsection B of this section.

D. The State Department of Education is authorized to retain up
to ten percent (10%) of the funds appropriated, gifted, granted,
donated, or bequested to the Imagination Library Revolving Fund for
administrative and operating expenses related to implementation of
the Oklahoma Imagination Library Program.

E. The Oklahoma Imagination Library Program shall be funded by
fifty percent (50%) private funds and fifty percent (50%)
appropriated funds. The State Department of Education shall include
in its annual budget request the estimated need to fund the Oklahoma
Imagination Library Program for the following fiscal year.

F. The State Department of Education shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit a report by July 1, 2021, and each July 1
thereafter to the chair of the Senate Education Committee and the
chair of the House of Representatives Common Education Committee
detailing the status of implementing the Oklahoma Imagination
Library Program.

SECTION 245. AMENDATORY 70 O.S. 2021, Section 3-117.3,
is amended to read as follows:

Section 3-117.3. A. The School Finance Review Commission shall
conduct a review of all matters related to school finance, including
but not limited to teacher compensation, benefits, and
administration costs.

B. The Commission shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit a report of its findings to the Governor, the President Pro

ENR. S. B. NO. 1877 Page 516
Tempore of the Senate, and the Speaker of the House of
Representatives no later than December 31, 2023, and every
subsequent four (4) years by December 31.

SECTION 246. AMENDATORY 70 O.S. 2021, Section 3-118, is
amended to read as follows:

Section 3-118. The Secretary of Education shall:

1. Oversee the Office of Educational Quality and
Accountability;

2. Employ necessary personnel according to procedures
established for the employment of personnel by the Office of
Management and Enterprise Services;

3. Monitor the efforts of the public school districts to comply
with the provisions of this act and of Enrolled Senate Bill No. 183
of the 1st Session of the 42nd Oklahoma Legislature which relate to
common education;

4. Identify districts not making satisfactory progress toward
compliance with the provisions and recommend appropriate corrective
actions to the State Board of Education concerning each district so
identified;

5. Have executive responsibility for the Oklahoma Educational
Indicators Program and the annual report required pursuant to
Section 1210.531 of this title;

6. Review and make periodic public comment on the progress and
effectiveness of the State Board and State Department of Education,
the Office of the State Superintendent of Public Instruction, other
bodies created by this act, and the public schools of this state
concerning the implementation of the provisions of this act and of
Enrolled Senate Bill No. 183 of the 1st Session of the 42nd Oklahoma
Legislature which relate to common education;

7. Analyze the revenues for all systems of education and the
expenditure of common education revenue, giving close attention to
expenditures for administrative expenses relating to the common
schools;

ENR. S. B. NO. 1877 Page 517

8. Make reports to the public concerning these matters whenever
appropriate; and

9. Submit Utilizing the centralized filing system provided for
in Section 378 of this act, electronically submit recommendations
regarding funding for education or statutory changes to the Speaker
of the House of Representatives, the President Pro Tempore of the
Senate, and the Governor whenever appropriate.

SECTION 247. AMENDATORY 70 O.S. 2021, Section 3-127, is
amended to read as follows:

Section 3-127. A. Prior to the adoption of a resolution by the
local board of education as required in subsection A of Section 3-
126 of this title, the local board of education shall provide for a
period of public review and comment on the proposed educational
improvement plan and shall notify and allow comment from the
district bargaining agent of the plan. If no bargaining agent
exists for that district, the teachers directly effected shall be
notified and allowed to make comments. All comments,
recommendations, and objections made by the bargaining agent and
others to the local board of education shall be forwarded to the
State Board of Education for consideration prior to review of the
plan.

B. Each educational improvement plan shall be approved by the
State Board of Education before implementation.

C. Approval of a plan shall be for no longer than three (3)
years. If a plan is approved, the school district shall be required
to submit an annual report and the Board shall provide for an annual
assessment of the plan.

D. The Board shall notify the Speaker of the House of
Representatives and the President Pro Tempore of the Senate of the
approval of plans on a quarterly basis and shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically provide the Speaker and the President Pro Tempore
with copies of the annual reports and assessments.

ENR. S. B. NO. 1877 Page 518
E. If the Board determines through the annual assessment
process that the school district is not complying with the
requirements of the Educational Deregulation Act or is not meeting
the goals of the plan, it shall first provide notice to the district
of its findings. If the school district does not come into
compliance or take action to meet the goals of the plan, the Board
shall withdraw approval and terminate the plan.

SECTION 248. AMENDATORY 70 O.S. 2021, Section 3-129.10,
is amended to read as follows:

Section 3-129.10. A. By March 1, 2011, and each year
thereafter, the State Board of Education shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit to the Governor, the President Pro Tempore of
the State Senate, the Speaker of the House of Representatives, and
to the members of the education committees of the Senate and the
House of Representatives, or any successor committees, a report
concerning the empowered districts. At a minimum, the report shall
include:

1. The number of school districts designated as empowered
districts in the preceding academic year and the total number of
empowered districts in the state;

2. The number of empowered schools and the number of empowered
school zones, including the number of schools in the zone, in each
empowered district and the number of students served in the
empowered schools and empowered school zones, expressed as a total
number and as a percentage of the students enrolled in the empowered
district;

3. An overview of the innovations implemented in each empowered
school, zone, and district;

4. An overview of the academic performance of the students
served in empowered schools, zones, and districts, including a
comparison between the academic performance of the students before
and since implementation of the innovations;

ENR. S. B. NO. 1877 Page 519
5. Any recommendations for legislative changes based on the
innovations implemented or to further enhance the ability of school
district boards of education to implement innovations; and

6. Any additional information requested by the Governor or a
member of the Legislature.

B. The State Superintendent of Public Instruction shall ensure
that the annual report submitted pursuant to this section is
promptly posted on the State Department of Education website.

SECTION 249. AMENDATORY 70 O.S. 2021, Section 5-141, is
amended to read as follows:

Section 5-141. A. Each school district of this state shall
adopt a minimum salary schedule and shall transmit a copy of it to
the State Board of Education within thirty (30) days after adoption.
A school district shall not calculate salaries of teachers solely as
a proportion of the salaries of the administrators of the district.

B. Districts shall be encouraged to provide compensation
schedules to reflect district policies and circumstances, including
differential pay for different subject areas and special incentives
for teachers in districts with specific geographical attributes.
Districts may also adopt a salary schedule that provides additional
compensation for achieving certain ratings under the Oklahoma
Teacher and Leader Effectiveness Evaluation System (TLE) as set
forth in Section 6 of this act. Any salary schedule adopted by a
district pursuant to this section shall not set salaries at amounts
less than those set pursuant to Section 18-114.12 of this title.

C. The State Department of Education shall compile a report of
the minimum salary schedules for every school district in the state
and shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit the report to the
Governor, Speaker of the House of Representatives, and President Pro
Tempore of the Senate no later than December 15 of each year.

D. Each school district shall file within fifteen (15) days of
signing the contract, the employment contract of the superintendent
of the school district with the State Department of Education. The
Department shall keep all contracts available for inspection by the

ENR. S. B. NO. 1877 Page 520
public. The school district shall not be authorized to pay any
salary, benefits or other compensation to a superintendent which are
not specified in the contract on file and shall not pay
administrators any amounts for accumulated sick leave that are not
calculated on the same formula used for determining payment for
accumulated sick leave benefits for other full-time employees of
that school district and shall not pay administrators any amounts
for accumulated vacation leave benefits that are not calculated on
the same formula used for determining payment for accumulated
vacation leave benefits for other twelve-month full-time employees
of that school district.

E. By October 1 of each year each district board of education
shall prepare a schedule of salaries and fringe benefits paid
administrators employed by the district, including a description of
the fringe benefits. The schedule shall be a public record and
shall be disclosed as required by the Oklahoma Open Records Act.
The board shall file a copy of the schedule with the State
Department of Education within one week of completion.

F. For purposes of this section the term “administrator” shall
include employees who are employed and certified as superintendents,
assistant superintendents, principals, and assistant principals and
who have responsibilities for supervising classroom teachers.

SECTION 250. AMENDATORY 70 O.S. 2021, Section 5-146, is
amended to read as follows:

Section 5-146. A. Any school employee, as defined by
subsection A of Section 650.7 of Title 21 of the Oklahoma Statutes,
upon whom an assault, battery, assault and battery, or aggravated
battery or aggravated assault and battery is committed while in the
performance of any duties as a school employee shall notify either
the superintendent, building administrator, or one member of a Safe
School Committee of the school district employing the school
employee. The building administrator or member of the Safe School
Committee shall notify the superintendent of the assault, battery,
assault and battery, aggravated battery or aggravated assault and
battery.

B. The superintendent shall notify the State Department of
Education of all incidents described in subsection A of this section

ENR. S. B. NO. 1877 Page 521
for the previous year on July 1 of each year. The report shall
include a description of the battery or assault and battery, and the
final disposition of each incident.

C. The State Department of Education shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit a report to the President Pro Tempore of the
Senate, the Speaker of the House of Representatives, and the
Governor on December 1 of each year.

D. For purposes of this section, “assault” shall be defined by
Section 641 of Title 21 of the Oklahoma Statutes, “battery” shall be
defined by Section 642 of Title 21 of the Oklahoma Statutes, and
“aggravated assault and battery” shall be defined by Section 646 of
Title 21 of the Oklahoma Statutes.

E. No school employee shall be subject to any civil liability
for any statement, report, or action taken in reporting or assisting
in reporting a battery or assault and battery which is committed
upon the school employee while in the performance of any duties
unless such report or assistance was made in bad faith or with
malicious purpose.

F. Every school district shall have and deliver to each school
employee a written policy that such employee shall follow if an
assault, battery, or assault and battery is committed upon the
school employee while in the performance of any school duties.

SECTION 251. AMENDATORY 70 O.S. 2021, Section 6-186, is
amended to read as follows:

Section 6-186. A. Criteria for the approval and accreditation
of teacher education programs in Oklahoma institutions of higher
education shall include, but not be limited to, substantial evidence
that persons who enter teacher education programs demonstrate:

1. Competency in the oral and written use of the English
language;

2. A minimum grade point average as established by the
Commission for Educational Quality and Accountability; and

ENR. S. B. NO. 1877 Page 522
3. The ability to meet criteria established pursuant to the
Oklahoma Teacher Preparation Act at the completion of the teacher
education program and provide evidence of having worked with
children or youth in a variety of situations.

Criteria shall also include a greater emphasis upon field work
in accredited schools by prospective teachers under the supervision
of higher education faculty.

B. The Commission for Educational Quality and Accountability
shall work with the Oklahoma State Regents for Higher Education and
the various institutions of higher education in developing
guidelines for a paid teacher internship program which may be
offered at each institution for prospective teachers. The purpose
of each program shall be to provide mentorship and support for
prospective teachers. Students enrolled in a teacher education
program shall be eligible to participate in the program.

C. It is hereby declared to be the intent of the Legislature
that the Commission for Educational Quality and Accountability work
with the Oklahoma State Regents for Higher Education and the various
institutions of higher education in establishing a procedure whereby
full-time teacher education faculty continue their professional
development during their tenure at an institution of higher
education to ensure that the future teachers of this state are
taught by professional educators fully trained in their area of
expertise. Each approved or accredited program of teacher education
shall have a system for documenting and reporting the annual
professional development activities of all teacher education faculty
members. Faculty professional development reports shall be reviewed
by the Commission along with professional development activities as
a normal part of the accreditation process.

It is further declared to be the intent of the Legislature that
such professional development plans provide alternative means of
education including, but not limited to:

1. Professional development programs;

2. Higher education courses;

ENR. S. B. NO. 1877 Page 523
3. Exchange programs with public school classroom teachers,
administrators, and other school personnel; and

4. Programs whereby all full-time teacher education faculty
members directly involved in the teacher education process including
all administrators of the teacher education program, are required to
serve in a state accredited public school for at least ten (10)
clock hours per school year in responsibilities related to their
respective teacher education teaching fields.

All public school systems shall participate in the programs
provided for in this subsection when needed.

D. The Commission for Educational Quality and Accountability
shall adopt rules requiring specific improvements to strengthen the
screening of student applicants and field activity and placement as
set out in subsection A of this section. Such rules shall be
reviewed and amended or readopted by the Commission at least once
every five (5) years.

E. To assist the Commission in setting specific requirements as
set out in subsections A and D of this section, the Commission shall
annually prepare a statistical report showing the percentage of
students from each of the Oklahoma institutions of higher education
who have successfully completed or who have failed the competency
examination for certification. The annual report shall show the
percentages for each institution of higher education and each
assessment area separately by student degree status and shall be
electronically distributed annually to each member of the Commission
for Educational Quality and Accountability, the Oklahoma State
Regents for Higher Education, the governing board of each
institution which has an approved or state accredited teacher
education program, the State Board of Education, the State Board of
Career and Technology Education, and the Legislature utilizing the
centralized filing system provided for in Section 378 of this act.

F. By November 1, 2017, the Commission shall adopt rules
requiring coursework or training in the use of digital and other
instructional technologies as a requisite for program accreditation.

SECTION 252. AMENDATORY 70 O.S. 2021, Section 6-211, is
amended to read as follows:

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Section 6-211. The State Board of Education in cooperation with
the Commission for Educational Quality and Accountability, the
Oklahoma State Regents for Higher Education and institutions of
higher education shall conduct an educator supply-and-demand study
every three (3) years. The study shall identify areas of teacher
shortage and make recommendations for addressing the areas of most
critical need. The Board shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit a report outlining the findings to the Governor, the Speaker
of the House of Representatives, and the President Pro Tempore of
the Senate.

SECTION 253. AMENDATORY 70 O.S. 2021, Section 11-103.6,
as last amended by Section 1, Chapter 384, O.S.L. 2024 (70 O.S.
Supp. 2025, Section 11-103.6), is amended to read as follows:

Section 11-103.6. A. 1. The State Board of Education shall
adopt subject matter standards for instruction of students in the
public schools of this state that are necessary to ensure there is
attainment of desired levels of competencies in a variety of areas
to include language, mathematics, science, social studies,
communication, and health and physical education.

2. School districts shall develop and implement curriculum,
courses and instruction in order to ensure that students meet the
skills and competencies as set forth in this section and in the
subject matter standards adopted by the State Board of Education.

3. All students shall gain literacy at the elementary and
secondary levels. Students shall develop skills in reading,
writing, speaking, computing, and critical thinking. For purposes
of this section, critical thinking means a manner of analytical
thinking which is logical and uses linear factual analysis to reach
a conclusion. They shall learn about cultures and environments -
their own and those of others with whom they share the earth. All
students shall receive the instruction needed to lead healthy and
physically active lifestyles. Students, therefore, shall study
social studies, literature, languages, the arts, health,
mathematics, and science. Such curricula shall provide for the
teaching of a hands-on career exploration program in cooperation
with technology center schools.

ENR. S. B. NO. 1877 Page 525

4. The subject matter standards shall be designed to teach the
competencies for which students shall be tested as provided in
Section 1210.508 of this title and shall be designed to prepare all
students for active citizenship, employment, and/or or successful
completion of postsecondary education without the need for remedial
coursework at the postsecondary level.

5. The subject matter standards shall be designed with rigor as
defined in paragraph 6 of subsection F of this section.

6. The subject matter standards for English Language Arts shall
give Classic Literature and nonfiction literature equal
consideration to other literature. In addition, emphasis shall be
given to the study of complete works of literature.

7. At a minimum, the subject matter standards for mathematics
shall require mastery of the standard algorithms in mathematics,
which is the most logical, efficient way of solving a problem that
consistently works, and for students to attain fluency in Euclidian
geometry.

8. The subject matter standards for history, social studies,
and United States Government shall include the content of the United
States naturalization test, with an emphasis on the specific content
of the test and the ideas and concepts it references. The United
States naturalization test shall be made available in physical and
electronic online formats as an optional assessment tool for
teachers.

9. The subject matter standards for United States Government
shall include an emphasis on civics. For the purposes of this
section, “civics” means the study of the rights and duties of
Oklahoma and United States citizens and of how those governments
work.

10. The subject matter standards for health and physical
education shall include but not be limited to the domains of
physical, emotional, social, and intellectual health. Health
literacy shall include the ability to obtain, process, and
understand basic health information and services needed to make
appropriate health decisions. Health shall also include the

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importance of proper nutrition and exercise, mental health and
wellness, substance abuse, coping skills for understanding and
managing trauma, establishing and maintaining positive
relationships, and responsible decision making. Physical literacy
shall include the ability to move with competence and confidence in
a wide variety of physical activities in multiple environments that
benefit the healthy development of the whole person.

B. Subject to the provisions of subsection C or subsection D of
this section, in order to graduate from a public high school
accredited by the State Board of Education with a standard diploma,
students enrolled in grades eight through twelve in the 2024-2025
school year shall complete the following college preparatory/work
ready curriculum units or sets of competencies at the secondary
level:

1. Four units or sets of competencies of English to include
Grammar, Composition, Literature, or any English course approved for
college admission requirements;

2. Three units or sets of competencies of mathematics, limited
to Algebra I, Algebra II, Geometry, Trigonometry, Math Analysis,
Calculus, Advanced Placement Statistics, or any mathematics course
with content and/or or rigor above Algebra I and approved for
college admission requirements;

3. Three units or sets of competencies of laboratory science
approved for college admission requirements including one unit or
set of competencies of life science meeting the standards for
Biology I; one unit or set of competencies of physical science
meeting the standards for Physical Science, Chemistry, or Physics;
and one unit or set of competencies from the domains of physical
science, life science, or earth and space science such that the
content and rigor is above Biology I or Physical Science;

4. Three units or sets of competencies of history and
citizenship skills including one unit of American History, 1/2 unit
of Oklahoma History, 1/2 unit of United States Government, and one
unit from the subjects of History, Government, Geography, Economics,
Civics, or non-Western culture and approved for college admission
requirements;

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5. Two units or sets of competencies of the same world or non-
English language or two units of computer technology approved for
college admission requirements, whether taught at a high school or a
technology center school including computer programming, hardware,
and business computer applications, such as word processing,
databases, spreadsheets, and graphics, excluding keyboarding or
typing courses;

6. One additional unit or set of competencies selected from
paragraphs 1 through 5 of this subsection or career and technology
education courses, concurrently enrolled courses, advanced placement
courses, or International Baccalaureate courses approved for college
admission requirements; and

7. One unit or set of competencies of fine arts, such as music,
art, or drama, or one unit or set of competencies of speech.

C. In lieu of the requirements of subsection B or subsection D
of this section which requires a college preparatory/work ready
curriculum, a student enrolled in grades eight through twelve in the
2024-2025 school year may enroll in the core curriculum as provided
in this subsection upon written approval of the parent or legal
guardian of the student. For students under the age of eighteen
(18) school districts shall require a parent or legal guardian of
the student to meet with a designee of the school prior to
enrollment in the core curriculum. The State Department of
Education shall develop and distribute to school districts a form
suitable for this purpose, which shall include information on the
benefits to students of completing the college preparatory/work
ready curriculum as provided for in subsection B of this section.

In order to graduate from a public high school accredited by the
State Board of Education with a standard diploma, students enrolled
in grades eight through twelve in the 2024-2025 school year shall
complete the following core curriculum units or sets of competencies
at the secondary level:

1. Language Arts – 4 units or sets of competencies to consist
of 1 unit or set of competencies of grammar and composition, and 3
units or sets of competencies which may include, but are not limited
to, the following courses:

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a. American Literature,

b. English Literature,

c. World Literature,

d. Advanced English Courses, or

e. other English courses with content and/or or rigor
equal to or above grammar and composition;

2. Mathematics – 3 units or sets of competencies to consist of
1 unit or set of competencies of Algebra I or Algebra I taught in a
contextual methodology, and 2 units or sets of competencies which
may include, but are not limited to, the following courses:

a. Algebra II,

b. Geometry or Geometry taught in a contextual
methodology,

c. Trigonometry,

d. Math Analysis or Precalculus,

e. Calculus,

f. Statistics and/or or Probability,

g. Computer Science or acceptance and successful
completion of one (1) year of a full-time, three-hour
career and technology program leading to an industry
credential/certificate or college credit. The State
Board of Career and Technology Education shall
promulgate rules to define the provisions of this
section related to the accepted industry-valued
credentials which are industry-endorsed or industry-
aligned. The list of accepted industry-valued
credentials shall be reviewed annually and updated at
least every three (3) years by the Board,

ENR. S. B. NO. 1877 Page 529
h. (1) contextual mathematics courses which enhance
technology preparation, or

(2) a science, technology, engineering, and math
(STEM) block course meeting the requirements for
course competencies listed in paragraph 2 of
subsection B of this section, whether taught at
a:

(a) comprehensive high school, or

(b) technology center school when taken in the
tenth, eleventh, or twelfth grade, taught by
a certified teacher, and approved by the
State Board of Education and the independent
district board of education,

i. mathematics courses taught at a technology center
school by a teacher certified in the secondary subject
area when taken in the tenth, eleventh, or twelfth
grade upon approval of the State Board of Education
and the independent district board of education, or

j. any other mathematics course with content and/or or
rigor equal to or above Algebra I;

3. Science – 3 units or sets of competencies to consist of 1
unit or set of competencies of Biology I or Biology I taught in a
contextual methodology, and 2 units or sets of competencies in the
areas of life, physical, or earth science or technology which may
include, but are not limited to, the following courses:

a. Chemistry I,

b. Physics,

c. Biology II,

d. Chemistry II,

e. Physical Science,

ENR. S. B. NO. 1877 Page 530
f. Earth Science,

g. Botany,

h. Zoology,

i. Physiology,

j. Astronomy,

k. Applied Biology/Chemistry,

l. Applied Physics,

m. Principles of Technology,

n. qualified agricultural education courses,

o. (1) contextual science courses which enhance
technology preparation, or

(2) a science, technology, engineering, and math
(STEM) block course meeting the requirements for
course competencies listed in paragraph 3 of
subsection B of this section, whether taught at
a:

(a) comprehensive high school, or

(b) technology center school when taken in the
tenth, eleventh, or twelfth grade, taught by
a certified teacher, and approved by the
State Board of Education and the independent
district board of education,

p. science courses taught at a technology center school
by a teacher certified in the secondary subject area
when taken in the tenth, eleventh, or twelfth grade
upon approval of the State Board of Education and the
independent district board of education, or

ENR. S. B. NO. 1877 Page 531
q. other science courses with content and/or or rigor
equal to or above Biology I;

4. Social Studies – 3 units or sets of competencies to consist
of 1 unit or set of competencies of United States History, 1/2 to 1
unit or set of competencies of United States Government, 1/2 unit or
set of competencies of Oklahoma History, and 1/2 to 1 unit or set of
competencies which may include, but are not limited to, the
following courses:

a. World History,

b. Geography,

c. Economics,

d. Anthropology, or

e. other social studies courses with content and/or or
rigor equal to or above United States History, United
States Government, and Oklahoma History;

5. Arts – 1 unit or set of competencies which may include, but
is not limited to, courses in Visual Arts and General Music; and

6. Computer Education or World Language - 1 unit or set of
competencies of computer technology, whether taught at a high school
or a technology center school including computer programming,
hardware, and business computer applications, such as word
processing, databases, spreadsheets, and graphics, excluding
keyboarding or typing courses, or 1 unit or set of competencies of
world or non-English language.

D. Beginning with the 2024-2025 school year, students whose
parent or legal guardian approve modification of the existing
graduation track as outlined in subsections B and C of this section,
subject to school approval, may complete a minimum of twenty-three
(23) curriculum units or sets of competencies at the secondary level
as listed below; and students entering the eighth grade in the 2025-
2026 school year, in order to graduate from a public high school
accredited by the State Board of Education with a standard diploma,

ENR. S. B. NO. 1877 Page 532
students shall complete a minimum of the following twenty-three (23)
curriculum units or sets of competencies at the secondary level:

1. Four units or sets of competencies of English to include
Grammar, Composition, Literature, or any English course;

2. Four units or sets of competencies of mathematics, two of
which shall be Algebra I and either Algebra II or Geometry. The
other two units may include Algebra II, Geometry, Trigonometry, Math
Analysis, Calculus, Statistics, Math of Finance, Computer Science,
college courses approved for dual credit, an approved full-time
postsecondary career and technology program, or locally approved
math based application course, or any mathematics course with
content and/or or rigor above Algebra I;

3. Three units or sets of competencies of laboratory science
approved for college admission requirements including one unit or
set of competencies of life science meeting the standards for
Biology I; one unit or set of competencies of physical science
meeting the standards for Physical Science, Chemistry, or Physics;
and one unit or set of competencies from the domains of physical
science, life science, or earth and space science, or approved full-
time postsecondary career and technology program or locally approved
science based application course, or any science course with content
and/or or rigor above Biology I or Physical Science;

4. Three units or sets of competencies of history and
citizenship skills including one unit of American History, 1/2 unit
of Oklahoma History, 1/2 unit of United States Government, and one
unit from the subjects of History, Government, Geography, Economics,
Civics, or non-Western culture;

5. Six pathway units or sets of competencies approved at the
discretion of the school district board of education which align
with each student’s Individual Career and Academic Plan (ICAP) and
may include, but are not limited to, any additional units or sets of
competencies as provided in paragraphs 1 through 4 of this
subsection, world or non-English language, computer technology,
Junior Reserve Officers’ Training Corps (JROTC), internship or
apprenticeship programs, career and technology education courses,
concurrently enrolled courses, advanced placement courses,
International Baccalaureate courses approved for college admission

ENR. S. B. NO. 1877 Page 533
requirements, music, art, drama, speech, dance, media arts, or other
approved courses; and

6. Three units or sets of competencies of elective courses
approved by the school district board of education.

E. A school district shall determine the specific description
of the locally approved math and science based application courses
allowed pursuant to paragraphs 2 and 3 of subsection D of this
section. Formal notification with the specific course description
shall be provided to the State Department of Education prior to July
1 of each school year. The notification shall include what courses
will be coded as locally approved math and science based application
courses for the ensuing school year.

F. 1. In addition to the curriculum requirements of subsection
B, C, or D of this section, in order to graduate from a public high
school accredited by the State Board of Education students shall
complete the requirements for a personal financial literacy passport
as set forth in the Passport to Financial Literacy Act and any
additional course requirements or recommended elective courses as
may be established by the State Board of Education and the district
school board. School districts shall strongly encourage students to
complete two units or sets of competencies of world languages and
two units or sets of competencies of physical and health education.

2. No student shall receive credit for high school graduation
more than once for completion of the same unit or set of
competencies to satisfy the curriculum requirements of this section.

3. A school district shall not be required to offer every
course listed in subsections B, C, and D of this section but shall
offer sufficient courses to allow a student to meet the graduation
requirements during the secondary grade years of the student.

G. For purposes of this section:

1. “Contextual methodology” means academic content and skills
taught by utilizing real-world problems and projects in a way that
helps students understand the application of that knowledge;

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2. “Locally approved” means approved by the local school
district board of education;

3. “Math based application course” means a course that teaches
math content within a real-world application;

4. “Pathway unit” means a course taken by a high school student
that is aligned with the student’s current Individualized Career and
Academic Plan (ICAP);

5. “Qualified agricultural education courses” means courses
that have been determined by the State Board of Education to offer
the sets of competencies for one or more science content areas and
which correspond to academic science courses. Qualified
agricultural education courses shall include, but are not limited
to, horticulture, plant and soil science, natural resources and
environmental science, and animal science. The courses shall be
taught by teachers certified in agricultural education and comply
with all rules of the Oklahoma Department of Career and Technology
Education;

6. “Rigor” means a level of difficulty that is thorough,
exhaustive and accurate and is appropriate for the grade level;

7. “Science based application course” means a course that
teaches science content within a real-world application;

8. “Sets of competencies” means instruction in those skills and
competencies that are specified in the subject matter standards
adopted by the State Board of Education and other skills and
competencies adopted by the Board, without regard to specified
instructional time; and

9. “Unit” means a Carnegie Unit as defined by the North Central
Association’s Commission on Schools.

H. 1. The State Board of Education, State Board of Career and
Technology Education, and State Regents for Higher Education shall
adopt a joint plan and electronically submit it to the Speaker of
the Oklahoma House of Representatives and the President Pro Tempore
of the Oklahoma State Senate by January 1, 2025, to ensure that
rigor is maintained in the content, teaching methodology, level of

ENR. S. B. NO. 1877 Page 535
expectations for student achievement, and application of learning in
all the courses taught to meet the graduation requirements specified
in subsection D of this section.

2. The State Board of Education shall allow as much flexibility
at the district level as is possible without diminishing the rigor
or undermining the intent of providing these courses. To accomplish
this purpose, the State Department of Education shall work with
school districts in reviewing and approving courses taught by
districts that are not specifically listed in subsections B, C, and
D of this section. Options may include, but shall not be limited
to, courses taken by concurrent enrollment, advanced placement, or
correspondence, or courses bearing different titles.

3. 2. Technology center school districts may offer programs
designed in cooperation with institutions of higher education.
Students in the tenth grade may be allowed to attend these programs
for up to one-half (1/2) of a school day and credit for the units or
sets of competencies required in paragraphs 2, 3, and 6 of
subsection B or C and paragraphs 2 and 3 of subsection D of this
section shall be given if the courses are taught by a teacher
certified in the secondary subject area; provided, credit for units
or sets of competencies pursuant to subsection B of this section
shall be approved for college admission requirements.

4. 3. If a student enrolls in a concurrent course, the school
district shall not be responsible for any costs incurred for that
course, unless the school district does not offer enough course
selection during the student’s secondary grade years to allow the
student to receive the courses needed to meet the graduation
requirements of this section. If the school district does not offer
the necessary course selection during the student’s secondary grade
years, it shall be responsible for the cost of resident tuition at
an institution in The Oklahoma State System of Higher Education,
fees, and books for the concurrent enrollment course, and providing
for transportation to and from the institution to the school site.

It is the intent of the Legislature that for students enrolled
in a concurrent enrollment course which is paid for by the school
district pursuant to this paragraph, the institution charge only the
supplementary and special service fees that are directly related to
the concurrent enrollment course and enrollment procedures for that

ENR. S. B. NO. 1877 Page 536
student. It is further the intent of the Legislature that fees for
student activities and student service facilities including the
student health care and cultural and recreational service fees not
be charged to such students.

5. 4. Credit for the units or sets of competencies required in
subsection B, C, or D of this section shall be given when such units
or sets of competencies are taken prior to ninth grade if the
teachers are certified or authorized to teach the subjects for high
school credit and the required rigor is maintained.

6. 5. The units or sets of competencies in mathematics required
in subsection B, C, or D of this section may be completed at any
time during the eighth through twelfth grades. If a student
completes any required courses or sets of competencies in
mathematics prior to eighth grade, the student may take any other
mathematics courses or sets of competencies to fulfill the
requirement to complete the units or sets of competencies in grades
eight through twelve after the student has satisfied the
requirements of subsection B, C, or D of this section.

7. 6. All units or sets of competencies required for graduation
may be taken in any sequence recommended by the school district.

I. As a condition of receiving accreditation from the State
Board of Education, all students in grades nine through twelve shall
enroll in a minimum of six periods, or the equivalent in block
scheduling or other scheduling structure that allows for instruction
in sets of competencies, of rigorous academic and/or or rigorous
vocational courses each day, which may include arts, vocal and
instrumental music, speech classes, and physical education classes.

J. 1. Academic and vocational-technical courses designed to
offer sets of competencies integrated or embedded within the course
that provide for the teaching and learning of the appropriate skills
and knowledge in the subject matter standards, as adopted by the
State Board of Education, may upon approval of the Board, in
consultation with the Oklahoma Department of Career and Technology
Education if the courses are offered at a technology center school
district, be counted for academic credit and toward meeting the
graduation requirements of this section.

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2. Internet-based courses offered by a technology center school
that are taught by a certified teacher and provide for the teaching
and learning of the appropriate skills and knowledge in the subject
matter standards may, upon approval of the State Board of Education
and the independent district board of education, be counted for
academic credit and toward meeting the graduation requirements of
this section.

3. Internet-based courses or vocational-technical courses
utilizing integrated or embedded skills for which no subject matter
standards have been adopted by the State Board of Education may be
approved by the Board, in consultation with the Oklahoma Department
of Career and Technology Education if the courses are offered by a
technology center school district, if such courses incorporate
standards of nationally recognized professional organizations and
are taught by certified teachers.

4. Courses offered by a supplemental education organization
that is accredited by a national accrediting body and that are
taught by a certified teacher and provide for the teaching and
learning of the appropriate skills and knowledge in the subject
matter standards may, upon approval of the State Board of Education
and the school district board of education, be counted for academic
credit and toward meeting the graduation requirements of this
section.

K. The State Board of Education shall provide an option for
high school graduation based upon attainment of the desired levels
of competencies as required in tests pursuant to the provisions of
Section 1210.508 of this title. Such option shall be in lieu of the
amount of course credits earned.

L. The State Board of Education shall prescribe, adopt, and
approve a promotion system based on the attainment by students of
specified levels of competencies in each area of the core
curriculum.

M. Children who have individualized education programs pursuant
to the Individuals with Disabilities Education Act (IDEA), and who
satisfy the graduation requirements through the individualized
education program for that student shall be awarded a standard
diploma.

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N. Any student who completes the curriculum requirements of the
International Baccalaureate Diploma Program shall be awarded a
standard diploma.

O. Any student who successfully completes an advanced
mathematics or science course offered pursuant to Section 1210.404
of this title shall be granted academic credit toward meeting the
graduation requirements pursuant to paragraph 2 or 3, as
appropriate, of subsection B, C, or D of this section.

P. For purposes of this section, the courses approved for
college admission requirements shall be courses which are approved
by the Oklahoma State Regents for Higher Education for admission to
an institution within The Oklahoma State System of Higher Education.

Q. Students who have been denied a standard diploma by the
school district in which the student is or was enrolled for failing
to meet the requirements of this section may re-enroll in the school
district that denied the student a standard diploma following the
denial of a standard diploma. The student shall be provided
remediation or intervention and the opportunity to complete the
curriculum units or sets of competencies required by this section to
obtain a standard diploma. Students who re-enroll in the school
district to meet the graduation requirements of this section shall
be exempt from the hourly instructional requirements of Section 1-
111 of this title and the six-period enrollment requirements of this
section.

SECTION 254. AMENDATORY 70 O.S. 2021, Section 11-103.6a,
is amended to read as follows:

Section 11-103.6a. A. Beginning with the 2014-15 school year,
each area of subject matter standards, except for standards for
career and technology education adopted pursuant to Section 14-103
of this title, shall be adopted by the State Board of Education and
shall be subject to legislative review and approval as provided for
in Section 4 of this act. The subject matter standards shall be
implemented statewide by every public school district in this state.
The subject matter standards shall be thoroughly reviewed by the
State Board every six (6) years according to and in coordination
with the existing subject area textbook adoption cycle. After

ENR. S. B. NO. 1877 Page 539
review, the State Board shall adopt any revisions in such subject
matter standards deemed necessary to achieve further improvements in
the quality of education for the students of this state. Any
revisions adopted by the State Board of Education shall be subject
to review and approval as provided for in Section 4 of this act.
The adoption of subject matter standards or revisions to the
standards by the State Board of Education pursuant to this section
shall not be promulgated as rules and shall not be subject to
Article I of the Administrative Procedures Act.

B. 1. In addition to the requirements set forth in subsection
A of this section, on or before August 1, 2016, the State Board of
Education, in consultation with the State Regents for Higher
Education, the State Board of Career and Technology Education and
the Oklahoma Department of Commerce, shall adopt subject matter
standards for English Language Arts and Mathematics which are
college- and career-ready and will replace current standards. To be
considered college- and career-ready, the standards shall be
evaluated by the State Department of Education, the State Regents
for Higher Education, the State Board of Career and Technology
Education and the Oklahoma Department of Commerce and be determined
to be such that the standards will address the goals of reducing the
need for remedial coursework at the postsecondary level and
increasing successful completion of postsecondary education. The
subject matter standards and corresponding student assessments for
English Language Arts and Mathematics shall be solely approved and
controlled by the state through the State Board of Education.

2. Upon the effective date of this act, the State Board of
Education shall begin the process of adopting the English Language
Arts and Mathematics standards and shall provide reasonable
opportunity, consistent with best practices, for public comment on
the revision of the standards, including but not limited to comments
from students, parents, educators, organizations representing
students with disabilities and English language learners, higher
education representatives, career technology education
representatives, subject matter experts, community-based
organizations, Native American tribal representatives, and business
community representatives.

3. Until the statewide student assessments for English Language
Arts and Mathematics are implemented as provided for in paragraph 1

ENR. S. B. NO. 1877 Page 540
of subsection C of this section, the State Board of Education shall
implement the subject matter standards for English Language Arts and
Mathematics which were in place prior to the revisions adopted by
the Board in June 2010.

4. Upon the effective date of this act, the State Board of
Education shall seek certification from the State Regents for Higher
Education that the subject matter standards for English Language
Arts and Mathematics which were in place prior to the revisions
adopted by the Board in June 2010 are college- and career-ready as
defined in the Federal Elementary and Secondary Education Act (ESEA)
Flexibility document issued by the United States Department of
Education and referenced in Option B of Principle 1: College and
Career-Ready Expectations for All Students. The State Regents shall
provide the Board a detailed description of the certification
process and results, including a list of deficiencies if the State
Regents conclude that the standards are not college- and career-
ready. The Board shall post all documents, materials, reports,
descriptions, and correspondence produced by the State Regents or
used by the State Regents in the certification process on the
website for the State Department of Education.

C. 1. On or before the 2017-18 school year, the State Board of
Education, in consultation with the State Regents for Higher
Education, the State Board of Career and Technology Education and
the Oklahoma Department of Commerce, shall direct the process of the
development of annual high-quality statewide student assessments for
English Language Arts and Mathematics as provided for in Section
1210.508 of this title that align with the college- and career-ready
subject matter standards developed pursuant to subsection B of this
section.

2. The statewide student assessments for English Language Arts
and Mathematics shall continue to assess standards and objectives
found in the subject matter standards for English Language Arts and
Mathematics which were in place prior to the revisions adopted by
the Board in June 2010 and the test blueprints shall continue to
align to the standards and objectives found in such subject matter
standards for English Language Arts and Mathematics until the new
assessments are implemented as provided for in paragraph 1 of this
subsection.

ENR. S. B. NO. 1877 Page 541
D. 1. The State Board of Education shall not enter into any
agreement, memorandum of understanding, or contract with any federal
agency or private entity which in any way cedes or limits state
discretion or control over the process of development, adoption, or
revision of subject matter standards and corresponding student
assessments in the public school system, including, but not limited
to, agreements, memoranda of understanding, and contracts in
exchange for funding for public schools and programs. If the State
Board of Education is a party to such an agreement, memorandum of
understanding, or contract on the effective date of this act, the
State Board of Education shall initiate necessary efforts to amend
the agreement, memorandum of understanding, or contract to comply
with the requirements of this subsection.

2. Nothing in this section shall be construed to prohibit the
State Board of Education from seeking and being granted a waiver
from federal law, provided that the conditions for the waiver do not
require the state to cede or limit its discretion or control over
the process of development, adoption, or revision of subject matter
standards and corresponding statewide student assessments.

3. The State Department of Education may participate in a
multistate or multigovernmental cooperative pursuant to the
requirements of the Oklahoma Central Purchasing Act, but shall not
bind the state, contractually or otherwise, to the authority of any
other state, organization, or entity which may supersede the
authority of the State Board of Education.

E. The content of all subject matter standards and
corresponding student assessments shall be solely approved and
controlled by the state through the State Board of Education. The
State Board of Education shall maintain independence of all subject
matter standards referenced in Section 11-103.6 of this title and
corresponding statewide student assessments and shall not relinquish
authority over Oklahoma subject matter standards and corresponding
statewide student assessments. Nothing in this section shall
prohibit benchmarking the state subject matter standards and
corresponding student assessments with those of other states or
nations to allow comparison of Oklahoma subject matter standards and
corresponding student assessments with those of other states and
nations.

ENR. S. B. NO. 1877 Page 542
F. School districts shall exclusively determine the
instruction, curriculum, reading lists, and instructional materials
and textbooks, subject to any applicable provisions or requirements
as set forth in law, to be used in meeting the subject matter
standards. School districts may, at their discretion, adopt
supplementary student assessments which are in addition to the
statewide student assessments.

G. 1. Upon completion of the adoption of English Language Arts
and Mathematics subject matter standards pursuant to subsection B of
this section, the State Board of Education shall compare such
English Language Arts and Mathematics standards with the English
Language Arts and Mathematics standards that were adopted by the
State Board of Education prior to implementation of this act. The
State Board of Education shall consider public comments, the use of
best practices, evidence, and research in the evaluation of both
sets of standards. The State Board of Education shall compare the
standards in the areas of:

a. effective

1. Effective preparation for active citizenship and
postsecondary education or the workforce,;

b. subject

2. Subject matter content,;

c. sequencing

3. Sequencing of subject matter content and relationship to
measurement of student performance and the application of subject
matter standards,;

d. developmental

4. Developmental appropriateness of grade-level expectations,
academic content, and instructional rigor,;

e. clarity

5. Clarity for educators and parents,;

ENR. S. B. NO. 1877 Page 543

f. exemplars

6. Exemplars tied to the standards,;

g. measurability

7. Measurability of student proficiency in the subject matter,;

h. pedagogy,

8. Pedagogy;

i. development

9. Development of critical thinking skills,; and

j. demonstration

10. Demonstration of application of acquired knowledge and
skills.

2. Upon completion of the comparison of the English Language
Arts and Mathematics subject matter standards, the State Board of
Education shall submit to the Governor, the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, the
Minority Leader of the House of Representatives and the Minority
Leader of the Senate a report outlining the results of the
comparison of the standards.

H. All subject matter standards and corresponding statewide
student assessments adopted by the State Board of Education shall be
carefully circumscribed to reflect direct application to subject
matter proficiency and shall not include standards or assessment
questions that are designed to collect or measure noncognitive,
emotional or psychological characteristics, attributes, or skills of
students.

I. Any rule, including but not limited to Rules 210:15-4-1
through 210:15-4-3 of the Oklahoma Administrative Code, which
conflicts with the requirements of this section, shall be amended or

ENR. S. B. NO. 1877 Page 544
repealed by the State Board of Education as necessary to comply with
the requirements of this section.

SECTION 255. AMENDATORY Section 1, Chapter 280, O.S.L.
2022, as last amended by Section 45, Chapter 59, O.S.L. 2024 (70
O.S. Supp. 2025, Section 11-202), is amended to read as follows:

Section 11-202. A. A school district, charter school, virtual
charter school, state agency, public library, or institution of
higher education within The Oklahoma State System of Higher
Education may offer digital or online library database resources to
students in kindergarten through twelfth grade only if the vendor,
person, or entity providing the resources verifies that all the
resources comply with the provisions of subsection B of this
section.

B. Digital or online library database resources offered by
school districts, charter schools, virtual charter schools, state
agencies, public libraries, or universities to students in
kindergarten through twelfth grade shall have safety policies and
technology protection measures that:

1. Prohibit and prevent a user of the resource from sending,
receiving, viewing, or downloading materials that are child sexual
abuse material or obscene materials, as defined in Section 1024.1 of
Title 21 of the Oklahoma Statutes, or materials that depict child
sexual exploitation, as defined in Section 843.5 of Title 21 of the
Oklahoma Statutes; and

2. Filter or block access to child sexual abuse material or
obscene materials, as defined in Section 1024.1 of Title 21 of the
Oklahoma Statutes, or materials that depict child sexual
exploitation, as defined in Section 843.5 of Title 21 of the
Oklahoma Statutes.

C. Notwithstanding any contract provision to the contrary, if a
provider of digital or online library resources fails to comply with
the requirements of subsection B of this section, the school
district, public charter school, state agency, public library, or
institution of higher education shall withhold further payments, if
any, to the provider pending verification of compliance.

ENR. S. B. NO. 1877 Page 545
D. If a provider of digital or online library database
resources fails to timely verify that the provider is in compliance
with the safety policies and requirements of subsection B of this
section, the school district, public charter school, state agency,
public library, or institution of higher education shall consider
the provider’s act of noncompliance a breach of contract.

E. No later than December 1 of each year, libraries shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit to the Speaker of the Oklahoma
House of Representatives and President Pro Tempore of the Oklahoma
State Senate an aggregate written report on any issues related to
provider compliance with technology protection measures required by
subsection B of this section.

F. Employees of school districts, charter schools, virtual
charter schools, state agencies, public libraries, and universities
shall not be exempt from prosecution for willful violations of state
law prohibiting indecent exposure to obscene material or child
sexual abuse material as provided in Section 1021 of Title 21 of the
Oklahoma Statutes.

G. Nothing in this act shall be construed in a manner that
applies to digital or online library database resources offered by
institutions of higher education when the primary purpose of the
resources is for education or research.

SECTION 256. AMENDATORY Section 1, Chapter 336, O.S.L.
2022 (70 O.S. Supp. 2025, Section 14-201), is amended to read as
follows:

Section 14-201. A. There is hereby created until November 1,
2027, the Oklahoma Education Commission.

B. The Commission shall consist of seventeen (17) members to be
appointed as follows:

1. A member of the Oklahoma House of Representatives shall be
appointed by the Speaker of the Oklahoma House of Representatives;

2. A member of the Oklahoma State Senate shall be appointed by
the President Pro Tempore of the Oklahoma State Senate;

ENR. S. B. NO. 1877 Page 546

3. The Director of the Department of Corrections, or his or her
designee;

4. The Director of the Oklahoma Department of Libraries, or his
or her designee;

5. The Executive Director of the Oklahoma Educational
Television Authority, or his or her designee;

6. Four members with expertise in online and educational
innovation shall be appointed by the Chancellor of Higher Education,
one of whom shall be a representative of the Oklahoma State Regents
for Higher Education, one of whom shall be a representative of a
research institution within The Oklahoma State System of Higher
Education, one of whom shall be a representative of a regional
institution within The Oklahoma State System of Higher Education,
and one of whom shall be a representative of a community college
within The Oklahoma State System of Higher Education;

7. Four members with expertise in effective approaches to
classroom instruction and learning or educational innovation shall
be appointed by the State Superintendent of Public Instruction, one
of whom shall represent the State Department of Education, one of
whom shall be a school district administrator, one of whom shall be
a certified classroom teacher, and one of whom shall be a high
school student; and

8. Four members with expertise in effective approaches to
career and technology education instruction and learning or
educational innovation shall be appointed by the Director of the
Oklahoma Department of Career and Technology Education, one of whom
shall represent the Oklahoma Department of Career and Technology
Education, one of whom shall be an administrator of a state
technology center school or college, one of whom shall be a
certified teacher at a state technology center school or college,
and one of whom shall be a student enrolled at a state technology
center school or college.

C. The Commission shall hold an organizational meeting not
later than ninety (90) days after the effective date of this act.
The member of the Oklahoma House of Representatives shall serve as

ENR. S. B. NO. 1877 Page 547
chair of the Commission and the member of the Oklahoma State Senate
shall serve as vice-chair. A quorum of the membership of the
Commission shall be required to approve any final action of the
Commission. For purposes of this section, nine members shall
constitute a quorum.

D. The Commission may meet as often as required to perform the
duties imposed upon it, but shall meet at least quarterly.

E. The Commission shall engage multiple stakeholders in
research, evaluation, and information sharing to conduct a study on
how to improve the quality of instruction and learning through
distance and remote modalities. Topic areas of the study shall
include, but not be limited to:

1. Support infrastructure;

2. Open education resources;

3. Compliance with the federal Americans with Disabilities Act;

4. Professional development; and

5. Modality research.

F. The Commission shall be subject to the Oklahoma Open Meeting
Act and the Oklahoma Open Records Act.

G. Members of the Commission shall not receive compensation or
travel reimbursement.

H. The Oklahoma House of Representatives shall provide staff
and administrative support for the Commission.

I. The Commission shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit a report of its findings and recommendations no later than
November 1, 2027, to the Governor, the President Pro Tempore of the
Oklahoma State Senate, and the Speaker of the Oklahoma House of
Representatives.

ENR. S. B. NO. 1877 Page 548
SECTION 257. AMENDATORY 70 O.S. 2021, Section 17-106.1,
is amended to read as follows:

Section 17-106.1. A. The Board of Trustees of the Teachers’
Retirement System of Oklahoma shall discharge their duties with
respect to the System solely in the interest of the participants and
beneficiaries and:

1. For the exclusive purpose of:

a. providing benefits to participants and their
beneficiaries, and

b. defraying reasonable expenses of administering the
System;

2. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of
an enterprise of a like character and with like aims;

3. By diversifying the investments of the System so as to
minimize the risk of large losses, unless under the circumstances it
is clearly prudent not to do so; and

4. In accordance with the laws, documents and instruments
governing the System.

B. The Board of Trustees of the Teachers’ Retirement System of
Oklahoma may invest the assets of the System in real property owned
or to be acquired by the State of Oklahoma. It is further
authorized to acquire, exchange, and grant any real property under
its jurisdiction as is necessary to carry out the investment in the
real property. The Board of Trustees of the Teachers’ Retirement
System of Oklahoma is authorized to invest not more than ten percent
(10%) of the total value of assets of the System in connection with
such investments. Limitations on investment of the assets of the
System provided herein shall be determined as of the date of its
making or acquisition.

C. The Board of Trustees may procure insurance indemnifying the
members of the Board of Trustees from personal loss or

ENR. S. B. NO. 1877 Page 549
accountability from liability resulting from a member’s action or
inaction as a member of the Board.

D. The Board of Trustees may establish an investment committee.
The investment committee shall be composed of not more than five (5)
members of the Board of Trustees appointed by the chairman of the
Board of Trustees. The committee shall make recommendations to the
full Board of Trustees on all matters related to the choice of
custodians and managers of the assets of the System, on the
establishment of investment and fund management guidelines, and in
planning future investment policy. The committee shall have no
authority to act on behalf of the Board of Trustees in any
circumstances whatsoever. No recommendation of the committee shall
have effect as an action of the Board of Trustees nor take effect
without the approval of the Board of Trustees as provided by law.

E. The Board of Trustees may retain qualified investment
managers to provide for the investment of the monies of the System.
The investment managers shall be chosen by a solicitation of
proposals on a competitive bid basis pursuant to standards set by
the Board of Trustees. Subject to the overall investment guidelines
set by the Board of Trustees, the investment managers shall have
full discretion in the management of those monies of the System
allocated to the investment managers. The Board of Trustees shall
manage those monies not specifically allocated to the investment
managers. The monies of the System allocated to the investment
managers shall be actively managed by the investment managers, which
may include selling investments and realizing losses if such action
is considered advantageous to longer term return maximization.
Because of the total return objective, no distinction shall be made
for management and performance evaluation purposes between realized
and unrealized capital gains and losses.

F. Funds and revenues for investment by the investment managers
or the Board of Trustees shall be placed with a custodian selected
by the Board of Trustees. The custodian shall be a bank or trust
company offering pension fund master trustee and master custodial
services. The custodian shall be chosen by a solicitation of
proposals on a competitive bid basis pursuant to standards set by
the Board of Trustees. In compliance with the investment policy
guidelines of the Board of Trustees, the custodian bank or trust
company shall be contractually responsible for ensuring that all

ENR. S. B. NO. 1877 Page 550
monies of the System are invested in income-producing investment
vehicles at all times. If a custodian bank or trust company has not
received direction from the investment managers of the System as to
the investment of the monies of the System in specific investment
vehicles, the custodian bank or trust company shall be contractually
responsible to the Board of Trustees for investing the monies in
appropriately collateralized short-term interest-bearing investment
vehicles.

G. By November 1, 1988, and prior to August 1 of each year
thereafter, the Board of Trustees shall develop a written investment
plan for the System.

H. The Board of Trustees shall compile a quarterly financial
report of all the funds of the System on a fiscal year basis. The
report shall be compiled pursuant to uniform reporting standards
prescribed by the Oklahoma State Pension Commission for all state
retirement systems. The report shall include several relevant
measures of investment value, including acquisition cost and current
fair market value with appropriate summaries of total holdings and
returns. The report shall contain combined and individual rate of
returns of the investment managers by category of investment, over
periods of time. The Board of Trustees shall include in the
quarterly reports all commissions, fees or payments for investment
services performed on behalf of the Board. The report shall be
electronically distributed to the Governor, the Oklahoma State
Pension Commission, the Legislative Service Bureau, the Speaker of
the House of Representatives, and the President Pro Tempore of the
Senate utilizing the centralized filing system provided for in
Section 378 of this act. In lieu of compiling and distributing the
quarterly report, the Board may provide the Oklahoma State Pension
Commission with direct access to the same data from the custodian
bank for the System.

I. After July 1 and before December 1 of each year, the Board
of Trustees shall publish widely an annual report presented in
simple and easily understood language pursuant to uniform reporting
standards prescribed by the Oklahoma State Pension Commission for
all state retirement systems. The report shall be submitted to the
Governor, the Speaker of the House of Representatives, the President
Pro Tempore of the Senate, the Oklahoma State Pension Commission,
and the members of the System. The annual report shall cover the

ENR. S. B. NO. 1877 Page 551
operation of the System during the past fiscal year, including
income, disbursements, and the financial condition of the System at
the end of the fiscal year. The annual report shall also contain
the information issued in the quarterly reports required pursuant to
subsection H of this section as well as a summary of the results of
the most recent actuarial valuation to include total assets, total
liabilities, unfunded liability or over funded status,
contributions, and any other information deemed relevant by the
Board of Trustees. The annual report shall be written in such a
manner as to permit a readily understandable means for analyzing the
financial condition and performance of the System for the fiscal
year.

SECTION 258. AMENDATORY 70 O.S. 2021, Section 17-116.7,
is amended to read as follows:

Section 17-116.7. A. After the effective date of this act,
before entering into any type of contract that creates an unfunded
liability and is for the purpose of enhancing pension benefits for
employees beyond the provisions of the Teachers’ Retirement System
of Oklahoma, a state institution of higher education, technology
center school district, or public school district, unless otherwise
provided by law, shall forward to the Office of the Attorney General
a copy of the contract and a copy of an actuarial report indicating
the amount of unfunded liability that would be created pursuant to
the contract. The Attorney General shall review the contract to
ensure that the contract conforms to state law. No such contract
shall be signed by the education entity until the Attorney General
approves the contract. Any such contract entered into without
complying with the requirements of this section shall be void.

B. In order to make the Legislature and Governor more aware of
the effect of unfunded pension benefits and other post-employment
benefits on state finances, annual audits conducted pursuant to law
on state institutions of higher education, technology center school
districts, and school districts shall be prepared in accordance with
appropriate accounting standards pertaining to unfunded pension
benefits and other post-employment benefits. The State Regents for
Higher Education, the State Board of Career and Technology Education
and the State Board of Education, jointly, shall have the
information pertaining to benefits compiled into an annual report
that shall be electronically distributed to the Governor, the

ENR. S. B. NO. 1877 Page 552
Speaker of the House of Representatives, and the President Pro
Tempore of the Senate utilizing the centralized filing system
provided for in Section 378 of this act.

SECTION 259. AMENDATORY 70 O.S. 2021, Section 18-162, is
amended to read as follows:

Section 18-162. No later than the first day of October of each
year, the State Board of Education shall submit with the itemized
budget request and estimates for the ensuing fiscal year, a Schools
Capital Improvements Budget. Such Schools Capital Improvements
Budget shall be electronically submitted to the Director of the
Office of Management and Enterprise Services, the Director of the
Legislative Service Bureau, and the Oklahoma Development Finance
Authority utilizing the centralized filing system provided for in
Section 378 of this act.

SECTION 260. AMENDATORY 70 O.S. 2021, Section 24-158, as
amended by Section 2, Chapter 281, O.S.L. 2022 (70 O.S. Supp. 2025,
Section 24-158), is amended to read as follows:

Section 24-158. A. The “Oklahoma Prevention Needs Assessment
Survey” means the biennial mental health prevention survey of public
school students in grades six, eight, ten, and twelve managed by the
Department of Mental Health and Substance Abuse Services.

B. Beginning in the 2022-2023 school year, and biennially
thereafter, public schools shall administer the Oklahoma Prevention
Needs Assessment Survey, or an alternative survey as provided in
subsection D of this section, for the purpose of providing direction
to schools, school districts, and communities to effectively improve
the lives of students regarding a variety of issues with a focus on
alcohol, tobacco, other drug use, mental health, academic failure,
and violence.

C. The Department of Mental Health and Substance Abuse Services
shall maintain the Oklahoma Prevention Needs Assessment Survey and
shall provide technical assistance for schools in survey
administration, reporting, planning, and development of school
mental health prevention and intervention strategies informed by the
survey results.

ENR. S. B. NO. 1877 Page 553
D. If a school or school district chooses to administer an
alternative survey or assessment tool to fulfill the purpose
described in subsection B of this section, it may apply for a waiver
through the Department of Mental Health and Substance Abuse
Services.

E. The school district superintendent or his or her designee
shall provide prior written notification to the parents or legal
guardians of students to be administered the Oklahoma Prevention
Needs Assessment Survey or an alternative survey or assessment tool
adopted pursuant to subsection D of this section. The notification
shall include information to parents and legal guardians that they
may opt their student out of the survey or assessment tool by
providing written notice to the school district.

F. Prior to the biennial administration of the Oklahoma
Prevention Needs Assessment Survey, the Department of Mental Health
and Substance Abuse Services shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit the survey to the President Pro Tempore of the Oklahoma State
Senate, the Speaker of the Oklahoma House of Representatives, the
chairs of the committees with responsibility over common education
in both houses of the Legislature, and the chairs of the committees
with responsibility over public health in both houses of the
Legislature.

G. The provisions of this section shall be subject to the
availability of federal funding. If federal funding is insufficient
to provide the Oklahoma Prevention Needs Assessment Survey to public
schools on a biennial basis, administration of the survey shall not
be required.

H. The Board of Mental Health and Substance Abuse Services and
the State Board of Education may promulgate rules as necessary to
carry out the provisions of this section.

SECTION 261. AMENDATORY 70 O.S. 2021, Section 625.14, as
amended by Section 15, Chapter 407, O.S.L. 2022 (70 O.S. Supp. 2025,
Section 625.14), is amended to read as follows:

Section 625.14. The Health Care Workforce Training Commission
shall establish and administer cost-sharing programs for internship

ENR. S. B. NO. 1877 Page 554
and residency physician training. The Commission shall provide for
state assistance by sharing the cost on a percentage basis, as may
be prescribed by law or as determined by the Commission, of the
salary, fringe benefits, training, and program administration of the
interns and residents as may be arranged by contract for
reimbursement with an accredited and approved hospital and
accredited clinical programs throughout the state in cooperation
with the University of Oklahoma College of Medicine and the
University of Oklahoma College of Medicine at Tulsa. Such physician
training institutions in the state shall serve as the administrative
agent for internship and residency programs which are located in
hospitals and clinical training programs throughout the state. Such
programs are affiliated with the institutions and are approved for
funding by the Commission. The Commission shall conduct the
planning, coordination, and selection of the training programs to
assure the effective and efficient operation of these programs. Not
less than seventy-five percent (75%) of the subsidy for these
programs shall be used in the training of primary health care and
family practice physicians for the rural and medically underserved
areas of the state. Provided that such subsidy may be used for the
primary purpose of increasing the total number of residencies funded
by this state, wherever located within the state, during that period
in which residency programs are being established in rural areas;
provided further, that as the residency programs are established and
accredited in rural hospitals, residency positions in such programs
shall be first provided for by the Commission. The Commission
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically present a report to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate within one (1) month of the
beginning of each regular legislative session on the operation of
the programs including the progress made in accomplishing the goals
of physician training as to type of specialties and workforce
placement of the kind necessary to provide adequate health care to
the people throughout this state. The subsidy to the participating
hospital, clinical situation or training institution per resident or
intern shall not exceed any maximum or minimum amount as may be
prescribed by law or as determined by the Commission. The actual
amount of subsidy for physician training program situations shall be
based upon a determination by the Commission of:

ENR. S. B. NO. 1877 Page 555
1. The type of primary care residency and internship programs
involved and being conducted;

2. The extent of reimbursement available through third-party
payers and all other sources; and

3. The program and salary costs incurred in the given training
situation.

SECTION 262. AMENDATORY 70 O.S. 2021, Section 695.20, is
amended to read as follows:

Section 695.20. The State Auditor and Inspector shall perform a
special audit on the Oklahoma Student Loan Authority during the
fiscal year beginning July 1, 1992, and at least once each five (5)
years thereafter. The State Auditor and Inspector shall have the
power to take custody of any records necessary to the performance of
the audit but shall minimize actual physical removal of or denial of
access to such records. At the conclusion of the audit, the State
Auditor and Inspector shall meet with the chief executive officer
and the audit committee of the board of trustees of the Authority to
review the audit report to be issued. The report, when issued,
shall include any responses to the audit which the chief executive
officer or the audit committee wishes to have included. The State
Auditor and Inspector shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically file the
report with the Governor, the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, the chairs of the
Education Committees of the Senate and the House of Representatives,
and the Oklahoma State Regents for Higher Education. The costs of
the audit shall be borne by the Authority.

SECTION 263. AMENDATORY 70 O.S. 2021, Section 697.2, as
amended by Section 17, Chapter 407, O.S.L. 2022 (70 O.S. Supp. 2025,
Section 697.2), is amended to read as follows:

Section 697.2. The Health Care Workforce Training Commission is
authorized to establish and administer cost-sharing programs for
internship and residency physician training. The Commission shall
provide for state assistance by sharing the cost on a percentage
basis, as may be prescribed by law or as determined by the
Commission, of the salary, fringe benefits, training, and program

ENR. S. B. NO. 1877 Page 556
administration of the interns and residents as may be arranged by
contract for reimbursement with an accredited and approved hospital
and accredited clinical programs throughout the state in cooperation
with the Oklahoma State University College of Osteopathic Medicine.
Such physician training institutions in the state shall serve as the
administrative agent for internship and residency programs which are
located in hospitals and clinical training programs throughout the
state. Such programs are affiliated with the institutions and
approved for funding by the Commission. The Commission shall
conduct the planning, coordination, and selection of the training
programs to assure the effective and efficient operation of these
programs. Not less than seventy-five percent (75%) of the subsidy
for these programs shall be used in the training of primary health
care and family/general practice physicians for the rural and
medically underserved areas of the state. Provided that such
subsidy may be used for the primary purpose of increasing the total
number of residencies funded by this state, wherever located within
the state, during that period in which residency programs are being
established in rural areas; provided further, that as the residency
programs are established and accredited in rural hospitals,
residency positions in such programs shall be first provided for by
the Commission. The Commission shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically present a report to the Governor, the Speaker of the
House of Representatives, and the President Pro Tempore of the
Senate within one (1) month of the beginning of each regular
legislative session on the operation of the programs including the
progress made in accomplishing the goals of physician training as to
type of specialties and workforce placement of the kind necessary to
provide adequate health care to the people throughout this state.
The subsidy to the participating hospital, clinical situation or
training institution per resident or intern shall not exceed any
maximum or minimum amount as may be prescribed by law or as
determined by the Commission. The actual amount of subsidy for
physician training program situations shall be based upon a
determination by the Commission of:

1. The type of primary care residency and internship programs
involved and being conducted;

2. The extent of reimbursement available through third-party
payers and all other sources; and

ENR. S. B. NO. 1877 Page 557

3. The program and salary costs incurred in the given training
situation.

SECTION 264. AMENDATORY 70 O.S. 2021, Section 697.25, is
amended to read as follows:

Section 697.25. A. The Oklahoma Health Care Authority shall,
in consultation with the Oklahoma State University College of
Osteopathic Medicine and the University of Oklahoma College of
Medicine, designate eligible hospitals for the creation of new
residency training programs to serve medically underserved areas.

B. The Oklahoma Health Care Authority is authorized to contract
with the Oklahoma State University of Osteopathic Medicine and the
University of Oklahoma College of Medicine to provide funding for
the establishment of new residency training programs created under
the Oklahoma Hospital Residency Training Program Act.

C. The Oklahoma Health Care Authority shall, with the
assistance of the Oklahoma State University College of Osteopathic
Medicine and the University of Oklahoma College of Medicine, provide
technical assistance and funding for the colleges’ costs incurred in
supporting the programs to ensure that residency training programs
established pursuant to the Oklahoma Hospital Residency Training
Program Act become funded by the Centers for Medicaid and Medicare
Services. Any student who is a resident of this state or who is in
good academic standing with an accredited medical college in this
state shall receive priority consideration in the process of
assigning clinical rotations at a health care facility that accepts
state funding. For purposes of this section, “resident” means an
individual who resided in this state at the time of graduation from
an Oklahoma high school.

D. The Oklahoma Health Care Authority shall establish reporting
mechanisms for eligible hospitals for the monitoring of progress of
the new residency training programs.

E. The Oklahoma Health Care Authority shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically present a report on the operation of the Oklahoma
Hospital Residency Training Program to the Governor, the President

ENR. S. B. NO. 1877 Page 558
Pro Tempore of the Senate, and the Speaker of the House of
Representatives within one (1) month of the beginning of each
regular session of the Legislature which shall include, but shall
not be limited to, information on the progress made in implementing
the Oklahoma Hospital Residency Training Program Act.

SECTION 265. AMENDATORY 70 O.S. 2021, Section 698.1, as
last amended by Section 1, Chapter 249, O.S.L. 2023 (70 O.S. Supp.
2025, Section 698.1), is amended to read as follows:

Section 698.1. A. The Oklahoma State Regents for Higher
Education shall establish and maintain an incentive scholarship
program and teacher employment incentive program, as funding is
available, to encourage the preparation of public school teachers
for prekindergarten through twelfth grade, including minority
teachers, at all state public higher education institutions or
private higher education institutions accredited pursuant to Section
4103 of this title and incentivize employment as public teachers for
prekindergarten through twelfth grade in the state for at least five
(5) years, to be known as the Inspired to Teach Program.
Prospective teachers planning to pursue an undergraduate teacher
education program at an accredited Oklahoma teacher preparation
program shall be considered if they graduated from high school,
completed high-school level instruction at home, or completed
General Educational Development (GED) test requirements; meet the
higher education admission standards; and declare a pre-education
major or major in an approved Oklahoma teacher preparation degree
program leading to a standard teaching certificate.

B. To the extent that funds are available, scholarships,
renewable for up to three (3) additional years for qualified
students meeting satisfactory academic progress standards in
completing a teacher preparation degree program leading to a
standard teaching certificate, shall be awarded to cover costs of
tuition, general enrollment fees, other fees, books, materials, and
services provided by the institution, including room and board, in
the following manner:

1. One Thousand Dollars ($1,000.00) per academic year for up to
three (3) academic years for full-time students who have earned less
than ninety (90) credit hours; and

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2. Two Thousand Five Hundred Dollars ($2,500.00) for the final
academic year for full-time students who have earned ninety (90) or
more credit hours.

The maximum amount of scholarship funds awarded as provided in this
subsection to any qualified student shall not exceed Five Thousand
Five Hundred Dollars ($5,500.00).

C. As used in this section, “full-time student” means:

1. An undergraduate student enrolled in twelve (12) or more
semester credits toward teacher education degree requirements;

2. An undergraduate student who is a teacher education major
who is enrolled in or has completed an internship or student
teaching credit hours in order to complete the degree program prior
to certification and who has been approved to take less than twelve
(12) credit hours; or

3. An undergraduate student who is a teacher education major
with an approved reasonable accommodation from Student Accessibility
Services at the institution due to a documented disability and who
has been approved to take less than twelve (12) credit hours.

D. It is the intent of the Oklahoma Legislature that the
Oklahoma State Regents for Higher Education create a committee
composed of educators, teacher educators from the participating
institutions, and representatives of the public schools and the
State Department of Education to provide recommendations to the
State Regents to improve effectiveness of the Inspired to Teach
Program. The committee shall prepare and, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically deliver a report on the program to the Legislature on
or before July 1 of each year.

E. Each scholarship participant, prior to entry into the
Inspired to Teach Program, shall have agreed to teach in an Oklahoma
public prekindergarten through twelfth grade school for a minimum of
five (5) consecutive years upon graduation and licensure as a
teacher. Any scholarship participant failing to maintain a 2.5
grade point average throughout matriculation, changing to an
ineligible area of study, failing to meet satisfactory academic

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progress standards, withdrawing, or otherwise leaving school, or
failing to meet requirements for licensure and certification to
teach as established by law shall be subject to disqualification
from the program.

F. The Oklahoma State Regents for Higher Education are
authorized to make employment incentive payments pursuant to the
provisions of this section to Inspired to Teach Program participants
who are employed as traditionally certified teachers in Oklahoma
public prekindergarten through twelfth grade schools following
graduation. Incentive payments may be awarded following each
consecutive year of satisfactory service as documented by the
employing school district, up to five (5) years of service for
scholarship recipients as provided in subsection A of this section,
upon graduation from an accredited Oklahoma teacher preparation
degree program. The maximum amount of employment incentive payments
for any qualified participant shall be Four Thousand Dollars
($4,000.00) per year for up to five (5) years, not to exceed a total
of Twenty Thousand Dollars ($20,000.00) per participant.

G. The Oklahoma State Regents for Higher Education shall
require the execution of appropriate contracts with eligible
Inspired to Teach Program participants. Participants failing to
comply with the requirements of this section or failing to provide
current contact information shall not be eligible for the employment
incentive payments provided for in this section. The Chancellor of
the Oklahoma State Regents for Higher Education, with the approval
of the State Regents, may contract with any other appropriate
organization or unit of government for the administration of the
provisions of this section.

H. If sufficient funds are not available for employment
incentive payments to qualified participants during any fiscal year,
the Chancellor may make reductions in the payments made to qualified
participants.

I. The Oklahoma State Regents for Higher Education may, at the
time an award is made on behalf of the Inspired to Teach Program,
set aside funds for the full commitment made to an eligible student.

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J. The Oklahoma State Regents for Higher Education may utilize
Inspired to Teach Program designated funds for administration of the
program.

SECTION 266. AMENDATORY Section 1, Chapter 155, O.S.L.
2023 (70 O.S. Supp. 2025, Section 1210.210), is amended to read as
follows:

Section 1210.210. A. The State Department of Education Office
of Federal Programs shall, in conjunction with the Office of
Planning and Coordination for Services to Children and Youth
Steering Committee established in Section 601.6c of Title 10 of the
Oklahoma Statutes, adopt a standard form to be used by all school
districts to identify students who are homeless children and youth
as defined in Section 600 of Title 10 of the Oklahoma Statutes.
Beginning with the 2024-2025 school year, the form shall be
completed annually at enrollment by the parent or guardian of a
student or by the student if he or she is not in the physical
custody of a parent or guardian. Districts shall report the results
to the Department, in a manner prescribed by the Department, no
later than June 1 of each year.

B. Beginning July 1, 2025, the Department shall compile a
report of the number of students identified as being homeless, by
district and grade level. The report shall be electronically
distributed annually to the Governor, Speaker of the Oklahoma House
of Representatives, Chair of the House Common Education Committee,
President Pro Tempore of the Oklahoma State Senate, Chair of the
Senate Education Committee, and the Oklahoma Commission on Children
and Youth utilizing the centralized filing system provided for in
Section 378 of this act.

SECTION 267. AMENDATORY 70 O.S. 2021, Section 1210.228,
is amended to read as follows:

Section 1210.228. The State Department of Education shall, at
least thirty (30) days prior to the 1973 regular session of the
Legislature and each regular session thereafter, transmit utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit to the members of the State Board of
Education, the President Pro Tempore of the Senate, the Speaker of
the House of Representatives, and the Chairmen Chairs of the Senate

ENR. S. B. NO. 1877 Page 562
and House Education Committees, a report as to the status of the
drug abuse education program together with any recommendations for
further improvement, modification, or additional legislation. Such
submission shall be made annually at least thirty (30) days prior to
the regular session of the Legislature.

SECTION 268. AMENDATORY 70 O.S. 2021, Section 1210.258,
is amended to read as follows:

Section 1210.258. The State Department of Education shall, at
least thirty (30) days prior to the 1975 regular session of the
Legislature and each regular session thereafter, transmit utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit to the members of the State Board of
Education, the President Pro Tempore of the Senate, the Speaker of
the House of Representatives, and the Chairmen Chairs of the Senate
and House Education Committees, a report as to the status of the
economic education program together with any recommendations for
further improvement, modification or additional legislation. Such
submission shall be made annually at least thirty (30) days prior to
the regular session of the Legislature.

SECTION 269. AMENDATORY 70 O.S. 2021, Section 1210.307,
is amended to read as follows:

Section 1210.307. A. It shall be the duty of each school
district to provide gifted child educational programs and to serve
those children, as defined in Section 1210.301 of this title, who
reside in that school district. This duty may be satisfied by:

1. The district directly providing gifted child educational
programs for such children;

2. The district joining in a cooperative program with another
district or districts to provide gifted child educational programs
for such children;

3. The district joining in a cooperative program with a private
or public institution within such district; or

4. The district transferring identified gifted and talented
children to other school districts which provide the appropriate

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gifted child educational programs, provided, no transfer shall be
made without the consent of the board of education of the receiving
school district. The district in which the child resides shall
provide transportation for the transferred student and pay an amount
of tuition equal to the proportion of the operating costs of the
program to the receiving district. Transfers authorized by this
section shall be made under such rules and regulations as the State
Board of Education may prescribe.

B. Each district shall, regardless of the method used for
accomplishing the duty set forth in subsection A of this section,
notify in writing the parents of each child identified as gifted of
the fact that the child has been so identified. The district shall
also provide each such parent a summary of the program to be offered
such child.

C. Beginning with the 1994-95 school year, and each year
thereafter, each board of education shall submit a plan for gifted
child educational programs as defined in Section 1210.301 of this
title to the State Department of Education which shall include:

1. A written policy statement which specifies a process for
selection and assessment of children for placement in gifted and
talented programs that is consistent for grades one through twelve;

2. A description of curriculum for the gifted child educational
program. Such description shall demonstrate that the curriculum is
differentiated from the normal curriculum in pace and/or or depth
and that it has scope and sequence;

3. Criteria for evaluation of the gifted child educational
program;

4. Evidence of participation by the local advisory committee on
education for gifted and talented children in planning, child
identification process, and program evaluation;

5. Required competencies and duties of gifted child educational
program staff;

ENR. S. B. NO. 1877 Page 564
6. Number and percentage of students identified by the district
as gifted children pursuant to subparagraph g of paragraph 2 of
subsection B of Section 18-201 of this title; and

7. A budget for the district gifted child educational programs.

D. The board of education of each school district shall prepare
a report which outlines the expenditures made by the district during
that year for gifted child educational programs pursuant to the
Oklahoma Cost Accounting System, as adopted by the State Board of
Education pursuant to Section 5-135 of this title.

E. The State Department of Education shall, after each school
year and utilizing the centralized filing system provided for in
Section 378 of this act, electronically report to the President Pro
Tempore of the Senate and the Speaker of the House of
Representatives concerning the number of children identified for the
programs, number of children served by the programs, type of
programs provided, type of screening procedures utilized, cost
analysis of the programs, and the estimated number of gifted and
talented children unserved by the programs.

SECTION 270. AMENDATORY 70 O.S. 2021, Section 1210.405,
is amended to read as follows:

Section 1210.405. A. The Board of Trustees of the Oklahoma
School of Science and Mathematics, upon a finding of unused capacity
within the Oklahoma School of Science and Mathematics (OSSM), shall
have the authority to:

1. Establish a policy providing for the acceptance of students
residing outside of Oklahoma and outside the United States for
enrollment in courses offered by OSSM in an amount not to exceed ten
percent (10%) of the total enrollment of OSSM. The policy shall
include but not be limited to:

a. a method of calculating rates for nonresident tuition
and room and board which must shall meet or exceed the
cost of attendance, subject to limits prescribed by
the Legislature, and

ENR. S. B. NO. 1877 Page 565
b. a provision that residents of Oklahoma seeking
acceptance to OSSM be given priority for enrollment
over students who are not residents of the state, if
all other qualifications are equal;

2. Offer for rent dormitories, classrooms, laboratories or
other OSSM facilities located in Oklahoma City; and

3. Establish educational programs and professional development
workshops to be offered during summer periods for which tuition and
fee rates may be established.

B. By January 1 of each year, the Board shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit a report to the Governor, the President Pro
Tempore and the Minority Leader of the Senate, the Speaker and the
Minority Leader of the House of Representatives, the chair of the
Senate Education Committee, and the chair of the House Common
Education Committee that includes the nonresident tuition and room
and board rates approved by the Board for the current academic year.
The annual report shall include data on the impact of any tuition
increases on the ability of students to meet the costs of
attendance, enrollment patterns, and any other data considered
relevant by the Board.

C. The Board shall promulgate rules to implement the provisions
of this section.

SECTION 271. AMENDATORY 70 O.S. 2021, Section 1210.407,
is amended to read as follows:

Section 1210.407. A. 1. There is hereby created a mechanism
for establishing criteria and a process for designation as a STEM
Community or STEM Region. The STEM Community or STEM Region is one
of several recommendations on improving Oklahoma Science,
Technology, Engineering and Mathematics (STEM) education in the
Governor’s Science and Technology Council’s “OneOklahoma” report.

2. The criteria for designation as a STEM Community or STEM
Region shall include a requirement that educators, administrators,
business leaders, students, parents, government officials, and
business and industry groups within a community or region create

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awareness, promote partnerships with education and industry, develop
and execute action plans for improving STEM education and training,
identify and acquire the needed resources to improve STEM education
and training, and identify and accumulate STEM data within the
community or region, including but not limited to kindergarten
through twelfth grade test results, the number of STEM-related
degree holders in the local workforce, the number of STEM-related
degrees conferred, and the number of STEM-related certifications or
credentials obtained. The region or community shall also develop a
plan to recognize and promote successes in both student and teacher
accomplishments in the STEM area within the community or region.
The concept of creating a STEM Community or STEM Region is
incorporated in the Department of Education’s STEM strategy and will
include and support STEM programs in many of the Department of
Career and Technology Education’s technology centers.

3. The process for designation as a STEM Community or STEM
Region shall require that state legislators initiate designation of
a STEM Community or STEM Region through an application process. The
final approval and designation of an Oklahoma STEM Community or STEM
Region shall reside with the Governor.

4. The application process shall be outlined by a subcommittee
of an existing STEM education or workforce committee or board, to be
identified by the Governor. The creation, sustainment, and
execution of the subcommittee shall be the responsibility of the
Department of Career and Technology Education. The application
process shall be based on criteria established by the subcommittee.

B. The subcommittee shall also study issues related to the
promotion and growth of STEM education and training in the state and
create specific recommendations to address the current and pending
shortage of highly skilled employees in the energy, agriculture and
biosciences, aerospace and defense, transportation and distribution,
and information technology and financial services sectors in
Oklahoma.

C. The subcommittee shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit a report of its findings and recommendations to the Governor,
the President Pro Tempore of the Senate and the Speaker of the House
of Representatives on an annual basis.

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SECTION 272. AMENDATORY 70 O.S. 2021, Section 1210.508C,
as last amended by Section 2, Chapter 297, O.S.L. 2025 (70 O.S.
Supp. 2025, Section 1210.508C), is amended to read as follows:

Section 1210.508C. A. To identify students who have
characteristics of dyslexia that lead to or cause reading
difficulty, each student enrolled in kindergarten and first, second,
and third grade in a public school in this state shall be screened
at the beginning, middle, and end of each school year for reading
skills including, but not limited to, phonological awareness,
decoding, fluency, vocabulary, and comprehension. A screening
instrument approved by the State Board of Education, in consultation
with the Commission for Educational Quality and Accountability and
the Secretary of Education, shall be utilized for the purposes of
this section. In determining which screening instrument to approve,
the State Board of Education, the Commission for Educational Quality
and Accountability, and the Secretary of Education shall take into
consideration at a minimum the following factors:

1. The time required to conduct the screening instrument with
the intention of minimizing the impact on instructional time;

2. The timeliness in reporting screening instrument results to
teachers, administrators, and parents and legal guardians of
students; and

3. The integration of the screening instrument into reading
curriculum.

B. Beginning in the 2025-2026 school year, the State Board of
Education shall approve no fewer than three screening instruments
for use at the beginning, middle, and end of the school year for
monitoring of progress and for measurement of reading skills as
required in subsection A of this section. The screening instruments
shall meet the following criteria:

1. Assess for phonological awareness, decoding, fluency,
vocabulary, and comprehension;

2. Document the validity and reliability of each assessment;

ENR. S. B. NO. 1877 Page 568
3. Can be used for identifying students who are at risk for
reading deficiency and progress monitoring throughout the school
year;

4. Can be used to assess students with disabilities and English
language learners; and

5. Accompanied by a data management system that provides
profiles of each student, class, grade level, and school building.
The profiles shall identify each student’s instructional point of
need and reading achievement level. The State Board shall also
determine other comparable reading assessments for diagnostic
purposes to be used for students at risk of reading failure.

C. 1. Exemptions to the screening requirements of this section
may be provided to students who have documented evidence that they
meet at least one of the following criteria as related to the
provision of classroom instruction:

a. the student participates in the Oklahoma Alternate
Assessment Program (OAAP) and is taught using
alternate methods,

b. the student’s primary expressive or receptive
communication is sign language,

c. the student’s primary form of written or read text is
Braille, or

d. the student’s primary expressive or receptive language
is not English, the student is identified as an
English learner using a state-approved identification
assessment, and the student has had less than one (1)
school year of instruction in an English-learner
program.

2. A public school that grants an exemption pursuant to
paragraph 1 of this subsection shall provide ongoing evidence of
student progression toward English language acquisition with the
same frequency as administration of screening assessments. Evidence
may include, but not be limited to, student progression toward OAAP

ENR. S. B. NO. 1877 Page 569
reading essential elements, proficiency in sign language and reading
comprehension, and proficiency in Braille and reading comprehension.

D. 1. Students who are administered a screening instrument
pursuant to subsection A of this section and are found not to be
meeting grade-level targets shall be provided a program of reading
instruction designed to enable students to acquire the appropriate
grade-level reading skills. The program of reading instruction
shall be based on scientific reading research and align with the
subject matter standards adopted by the State Board of Education. A
program of reading instruction shall include:

a. sufficient additional in-school instructional time for
the acquisition of phonological awareness, decoding,
fluency, vocabulary, and comprehension,

b. if necessary and if funding is available, tutorial
instruction after regular school hours, on Saturdays,
and during summer; however, such instruction may not
be counted toward the one-hundred-eighty-day or one-
thousand-eighty-hour school year required in Section
1-109 of this title,

c. assessments identified for diagnostic purposes and
periodic monitoring to measure the acquisition of
reading skills including, but not limited to,
phonological awareness, decoding, fluency, vocabulary,
and comprehension, as identified in the student’s
program of reading instruction,

d. high-quality instructional materials grounded in
scientifically based reading research, and

e. a means of providing every family of a student in
prekindergarten, kindergarten, and first, second, and
third grade access to free online evidence-based
literacy instruction resources to support the
student’s literacy development at home.

2. A student enrolled in kindergarten or first, second, or
third grade who exhibits a deficiency in reading at any time based
on the screening instrument administered pursuant to subsection A of

ENR. S. B. NO. 1877 Page 570
this section shall receive an individual reading intervention plan
no later than thirty (30) days after the identification of the
deficiency in reading. The reading intervention plan shall be
provided in addition to core reading instruction that is provided to
all students. The reading intervention plan shall:

a. describe the research-based reading intervention
services the student will receive to remedy the
deficiency in reading,

b. provide explicit and systematic instruction in
phonological awareness, decoding, fluency, vocabulary,
and comprehension, as applicable,

c. monitor the reading progress of each student’s reading
skills throughout the school year and adjust
instruction according to the student’s needs, and

d. continue until the student is determined to be meeting
grade-level targets in reading based on screening
instruments administered pursuant to subsection A of
this section or assessments identified for diagnostic
purposes and periodic monitoring pursuant to
subparagraph c of paragraph 1 of this subsection.

3. The reading intervention plan for each student identified
with a deficiency in reading shall be developed by a Student Reading
Proficiency Team and shall include supplemental instructional
services and supports. Each team shall be composed of:

a. the parent or legal guardian of the student,

b. the teacher assigned to the student who had
responsibility for reading instruction in that
academic year,

c. a teacher who is responsible for reading instruction
and is assigned to teach in the next grade level of
the student, and

ENR. S. B. NO. 1877 Page 571
d. a certified reading specialist or an individual with
advanced training or specialization in literacy
instruction, if one is available.

4. A school district shall notify the parent or legal guardian
of any student in kindergarten or first, second, or third grade who
exhibits a deficiency in reading at any time based on the screening
instrument administered pursuant to subsection A of this section.
The notification shall occur no later than thirty (30) days after
the identification of the deficiency in reading.

E. 1. Every school district shall adopt and implement a
district strong readers plan which has had input from school
administrators, teachers, and parents and legal guardians and if
possible a reading specialist, and which shall be submitted
electronically to and approved by the State Board of Education. The
plan shall be updated annually. School districts shall not be
required to electronically submit the annual updates to the Board if
the last plan submitted to the Board was approved and expenditures
for the program include only expenses relating to individual and
small group tutoring, purchase of and training in the use of
screening and assessment measures, summer school programs, and
Saturday school programs. If any expenditure for the program is
deleted or changed or any other type of expenditure for the program
is implemented, the school district shall be required to submit the
latest annual update to the Board for approval. The district strong
readers plan shall include a plan for each site which includes an
analysis of the data provided by the Oklahoma School Testing Program
and other reading assessments utilized as required in this section,
and which outlines how each school site will comply with the
provisions of the Strong Readers Act.

2. The State Board of Education shall adopt rules for the
implementation and evaluation of the provisions of the Strong
Readers Act. The evaluation shall include, but not be limited to,
an analysis of the data required in subsection L of this section.

F. 1. Any first-grade, second-grade, or third-grade student
who demonstrates proficiency in reading through a grade-level
appropriate screening instrument approved pursuant to subsection B
of this section shall not require a program of reading instruction
or an individual reading intervention plan. After a student has

ENR. S. B. NO. 1877 Page 572
demonstrated proficiency through a screening instrument, the
district shall provide notification to the parent or legal guardian
of the student that he or she has satisfied the requirements of the
Strong Readers Act. The district shall continue to monitor the
student in the next successive grade level to ensure he or she
maintains proficiency.

2. Beginning with the 2025-2026 school year, if a third-grade
student is identified at any point of the academic year as having a
significant reading deficiency, which shall be defined as not
meeting grade-level targets on a screening instrument administered
pursuant to subsection A of this section, the district shall provide
the student with intensive intervention services for the appropriate
amount of the instructional day consistent with the individual
reading intervention plan developed pursuant to paragraph 2 of
subsection D of this section and as determined by the Student
Reading Proficiency Team. Intensive intervention services shall
continue until the student demonstrates proficiency at his or her
grade level based on a screening instrument administered pursuant to
subsection A of this section.

G. Each school district shall annually report in an electronic
format to the State Department of Education, the Office of
Educational Quality and Accountability, and the Secretary of
Education the number of students in kindergarten through third grade
per grade level who exhibit grade-level reading proficiency, the
number of students per grade level who received intensive
intervention services pursuant to paragraph 2 of subsection F of
this section, the number of students per grade level who attended a
summer academy as provided for in Section 1210.508E of this title,
the number of students per grade level who exhibited improved
reading proficiency after completion of intensive intervention
services, and the number of students per grade level who are still
in need of intensive intervention services. The State Department of
Education shall publicly report the aggregate and district-specific
numbers submitted pursuant to this subsection on its website and
shall, utilizing the centralized filing system provided for in
Section 378 of this act, provide electronic copies of the report to
the Governor, Secretary of Education, President Pro Tempore of the
Senate, Speaker of the House of Representatives, and to the
respective chairs of the committees with responsibility for common
education policy in each legislative chamber.

ENR. S. B. NO. 1877 Page 573

H. The parent of any student who is found to have a reading
deficiency and is not meeting grade-level reading targets and has
been provided a program of reading instruction as provided for in
paragraph 1 of subsection D of this section shall be notified in
writing of the following:

1. That the student has been identified as having a substantial
deficiency in reading;

2. A description of the current services that are provided to
the student pursuant to subsection D of this section;

3. A description of the proposed intensive intervention
services and supports that will be provided to the student that are
designed to remediate the identified area of reading deficiency as
provided for in paragraph 2 of subsection F of this section;

4. That a student who is promoted to the fourth grade shall
receive supplemental intensive intervention services;

5. Strategies for parents to use in helping their child succeed
in reading proficiency; and

6. The grade-level performance scores of the student.

I. No student may be assigned to a grade level based solely on
age or other factors that constitute social promotion.

J. 1. Each school district board of education shall annually
publish on the school website and report electronically to the State
Department of Education, the Office of Educational Quality and
Accountability, and the Secretary of Education by September 1 of
each year the following information on the prior school year:

a. the policies and procedures adopted by the school
district board of education to implement the
provisions of this section. The information submitted
shall include expenditures related to implementing the
provisions of this section, the number of staff
implementing the provisions of this section, and

ENR. S. B. NO. 1877 Page 574
average daily classroom time devoted to implementing
the provisions of this section,

b. by grade, the number and percentage of all students in
kindergarten through third grade who did not meet
grade-level targets based on a screening instrument
administered pursuant to subsection A of this section,

c. by grade, the number and percentage of all students in
kindergarten through third grade who have been
enrolled in the district for fewer than two (2) years,

d. by grade, the number and percentage of students in
kindergarten through third grade who demonstrated
grade-level proficiency based on a screening
instrument administered pursuant to subsection A of
this section, and

e. by grade, the number and percentage of students in
kindergarten through third grade who are on an
individualized education program (IEP) in accordance
with the Individuals with Disabilities Education Act
(IDEA) and who demonstrated grade-level proficiency
based on a screening instrument administered pursuant
to subsection A of this section or an alternative
assessment prescribed by the student’s IEP.

2. The State Department of Education shall establish a uniform
format for school districts to report the information required in
this subsection. The format shall be developed with input from
school districts and shall be provided not later than ninety (90)
days prior to the annual due date. The Department shall annually
compile the information required, along with state-level summary
information, and, utilizing the centralized filing system provided
for in Section 378 of this act, electronically report the
information to the public, the Governor, the Secretary of Education,
the President Pro Tempore of the Senate, and the Speaker of the
House of Representatives.

K. The State Department of Education shall provide technical
assistance as needed to aid school districts in administering the
provisions of the Strong Readers Act.

ENR. S. B. NO. 1877 Page 575

L. On or before January 31 of each year, the State Department
of Education shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit to the
Governor, the President Pro Tempore of the Senate, the Speaker of
the House of Representatives, and members of the committees with
responsibility over common education in both houses of the
Legislature a Strong Readers Report which shall include, but is not
limited to, trend data detailing three (3) years of data,
disaggregated by student subgroups to include economically
disadvantaged, major racial or ethnic groups, students with
disabilities, and English language learners, as appropriate for the
following:

1. The statewide aggregate number and percentage of students in
kindergarten through third grade determined to be at risk for
reading difficulties compared to the total number of students
enrolled in each grade;

2. The statewide aggregate number and percentage of students in
kindergarten who continue to be at risk for reading difficulties as
determined by the year-end administration of the screening
instrument required in subsection A of this section;

3. The statewide aggregate number and percentage of students in
kindergarten through third grade who have successfully completed
their program of reading instruction and are reading on grade level
as determined by the results of screening instruments administered
pursuant to subsection A of this section;

4. The statewide aggregate and district-specific number and
percentage of students that meet or do not meet grade-level targets
for reading based on screening instruments administered pursuant to
subsection A of this section;

5. The amount of funds received by each district for
implementation of the Strong Readers Act;

6. An evaluation and narrative interpretation of the report
data analyzing the impact of the Strong Readers Act on students’
ability to read at grade level;

ENR. S. B. NO. 1877 Page 576
7. The type of reading instruction practices and methods
currently being used by school districts in the state;

8. Socioeconomic information, access to reading resources
outside of school, and screening for and identification of learning
disabilities for students not reading at the appropriate grade level
in kindergarten and first through third grade;

9. By grade level, the types of intensive intervention efforts
being conducted by school districts for students who are not on an
IEP and who are not reading at the appropriate grade level and for
students who are on an IEP and who are not reading at the
appropriate grade level; and

10. Any recommendations for improvements or amendments to the
Strong Readers Act.

The State Department of Education may contract with an
independent entity for the reporting and analysis requirements of
this subsection.

M. Copies of the results of the screening instruments
administered pursuant to subsection A of this section shall be made
a part of the permanent record of each student.

SECTION 273. AMENDATORY Section 2, Chapter 288, O.S.L.
2023, as amended by Section 9, Chapter 411, O.S.L. 2024 (70 O.S.
Supp. 2025, Section 1210.508H), is amended to read as follows:

Section 1210.508H. A. Beginning with the 2023-2024 school
year, the State Department of Education shall establish a three-year
pilot program to employ a literacy instructional team to support
school districts in implementation of the requirements of Section
1210.508C of this title. The Department shall provide technical
assistance for literacy instruction, dyslexia, and related
disorders, and serve as a primary source of information and support
for schools in addressing the needs of students struggling with
literacy, dyslexia, and related disorders.

B. The Department shall employ a literacy instructional team
with team members who are placed regionally across the state. The
literacy instructional teams shall assist general education and

ENR. S. B. NO. 1877 Page 577
special education teachers in recognizing educational needs to
improve literacy outcomes for all students including those with
dyslexia or identified with the risk characteristics associated with
dyslexia. The role of the literacy instructional team shall also
include increasing professional awareness and instructional
competencies to meet the educational needs of all students including
those with dyslexia or identified with risk characteristics
associated with dyslexia. The Department shall prioritize supports
and interventions including enrollment in reading trainings and
professional development for schools which have the highest
percentage of students who do not demonstrate sufficient reading
skills as established by the State Board of Education.

C. Literacy instructional team members employed by the
Department shall have training in:

1. The science of how students learn to read including
phonological awareness, phonics, fluency, vocabulary, comprehension,
writing, and language;

2. Foundation of multisensory, explicit, systematic, and
structured reading instruction;

3. Identification of and the appropriate interventions,
accommodations, and teaching techniques for struggling students;

4. The requirements of the Strong Readers Act;

5. Special education laws and procedures; and

6. Appropriate interventions, accommodations, and assistive
technology supports for students with dyslexia or a related
disorder.

D. The literacy instructional team members employed by the
Department shall report to the Program Director for Literacy at the
Department and have:

1. A minimum of five regional literacy leads, at least one who
shall be designated by the Department as a dyslexia specialist to
provide school districts with support and resources that are
necessary to assist students with dyslexia. The Department shall

ENR. S. B. NO. 1877 Page 578
give preference to educators applying for regional literacy lead
who:

a. have an endorsement or certification as a certified
structured literacy dyslexia specialist or certified
academic language therapist,

b. are knowledgeable of multitiered systems of support,
and

c. have been trained in the identification of and
intervention for dyslexia and related disorders
including best practice interventions and treatment
models for dyslexia; and

2. A minimum of ten literacy specialists. The Department shall
give preference to educators applying for literacy specialist who:

a. have training in the science of reading,

b. are knowledgeable of multitiered systems of support,
and

c. have been trained in the identification of and
intervention for dyslexia and related disorders
including best practice interventions and treatment
models for dyslexia.

E. The State Department of Education shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit a report to the Governor, the President Pro
Tempore of the Senate, and the Speaker of the House of
Representatives by December 31, 2026, that includes an evaluation of
the pilot program by school districts, data on whether the program
had an impact on increasing the number of students who demonstrate
proficiency in reading, and recommendations for changes to the
Strong Readers Act.

SECTION 274. AMENDATORY 70 O.S. 2021, Section 1210.509,
is amended to read as follows:

ENR. S. B. NO. 1877 Page 579
Section 1210.509. A. The Department shall provide in-service
training for local school personnel who administer tests required by
the Oklahoma School Testing Program Act, Section 1210.505 et seq. of
this title.

B. The Board shall require the company or companies providing
tests required bythe by the Oklahoma School Testing Program Act,
Section 1210.505 et seq. of this title, to submit summary reports of
the results by school district to the Department and the respective
local school district. Individualized results of the test shall be
made available by the local school district to the classroom
teachers who instruct the students in the academic areas tested. In
every year, prior to the convening of the Legislature, the Board
shall give, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit a summary report on
the testing results to the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate.

SECTION 275. AMENDATORY 70 O.S. 2021, Section 1210.516,
is amended to read as follows:

Section 1210.516. A. The State Board of Education shall
establish the Oklahoma Bridge to Literacy Program. The purpose of
the Program is to improve reading skills of children up through the
fourth grade, as measured by mastery of the skills identified in the
subject matter standards adopted by the State Board of Education, by
training and assisting private entities, as defined in subsection C
of this section, to offer reading instruction to children before
school, after school, on Saturdays, and during summer periods.

B. The State Department of Education shall issue a request for
proposals on or before October 1, 2012, and each October 1
thereafter for which the Oklahoma Bridge to Literacy Program is
funded, seeking applications for the Oklahoma Bridge to Literacy
Program. The Department shall review the applications for
compliance with the established requirements.

C. Private entities eligible to submit applications for the
Oklahoma Bridge to Literacy Program shall include the following:

ENR. S. B. NO. 1877 Page 580
1. Nonprofit organizations or programs which are exempt from
taxation pursuant to the provisions of Section 501(c)(3) of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3);

2. Community-based programs, centers, organizations, or
services which maintain community participation or supervision in
their planning, operation, and evaluation; and

3. Churches or religious organizations, associations, or
societies or nonprofit organizations or programs operated,
supervised, or controlled by or in conjunction with a religious
organization, association, or society.

D. The State Board of Education may approve applications that
meet the requirements set forth in this subsection and as
established by the Board. Approved applications shall establish
reading programs for children up through the fourth grade. The
reading programs may be offered before school, after school, on
Saturdays or during summer periods. The reading programs shall
offer reading instruction designed to enable the children to acquire
the appropriate level reading skills and shall provide diagnostic
assessments and measurement of reading skills to determine reading
success. The reading program shall focus on the acquisition of
reading skills including, but not limited to, phonological
awareness, phonics, spelling, reading fluency, vocabulary, and
comprehension.

E. On or before December 1, 2012, and each December 1
thereafter for which the Oklahoma Bridge to Literacy Program is
funded, the Department shall forward applications that the
Department has determined meet the requirements of this section to
the Board. On or before February 1, 2013, and each February 1
thereafter for which the Oklahoma Bridge to Literacy Program is
funded, the Board shall award, through a competitive bid process,
one or more grants to private entities to provide reading
instruction programs through the Oklahoma Bridge to Literacy
Program. To the extent possible, grants shall be awarded on a
statewide basis. The grant funding shall be used to provide the
reading instruction program, provide employees and volunteers for
the program and to purchase materials for the program.

ENR. S. B. NO. 1877 Page 581
F. In addition to the grant funding, the Department shall
provide to the private entities awarded grants pursuant to this
section the following:

1. Reading instruction training, academies, or courses designed
to train the private entity employees or volunteers in reading
instruction and remediation strategies;

2. Resources and materials on reading instruction and
remediation; and

3. Any other appropriate assistance.

G. The Board shall provide for independent evaluations of
programs funded pursuant to this section.

H. Beginning June 30, 2013, and each year thereafter for which
the Oklahoma Bridge to Literacy Program is funded, the Board shall
prepare and, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit a report to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate containing:

1. Descriptions of the reading programs approved and funded
through the Oklahoma Bridge to Literacy Program;

2. Number and amount of grants awarded;

3. Number of children served through approved programs; and

4. Achievement data for children served through approved
programs.

SECTION 276. AMENDATORY 70 O.S. 2021, Section 1210.544,
is amended to read as follows:

Section 1210.544. A. Notwithstanding any other provision of
law, the State Board of Education shall establish a process to
identify schools in the state that are listed as in need of
improvement in accordance with 20 U.S.C., Section 6301 et seq. A
school district board of education with a school identified as being
among the schools in the state that are in need of improvement shall

ENR. S. B. NO. 1877 Page 582
implement a locally developed, evidence-based intervention model for
the school site determined by the Board to be low performing

B. 1. Consistent with 20 U.S.C., Section 6301 et seq., for
schools that are identified for school improvement by the Board for
four (4) consecutive years, the district board of education shall
seek support from the State Department of Education. Such support
may include academic intervention, professional development,
restructuring of the governance arrangement of the school or any
other plan that is reasonably calculated to improve student academic
achievement in the school. State support plans shall be designed to
provide a substantial assurance of enabling the school to
appropriately serve all students. If after two (2) years of
implementing the state support plan, improvements to student
achievement remain insufficient and, in accordance with 20 U.S.C.,
Section 6301 et seq., the school continues to be identified by the
Board as low performing, the Board may exercise the option of
assuming control of the school as provided for in this subsection.

2. If the Board assumes control of a school, the Board shall
retain all funds that otherwise would have been allocated to the
school district based on the average daily membership of the school
which shall be used to operate the school.

C. 1. A district board of education for a district with an
average daily membership of more than 30,000 which implements an
alternative governance arrangement as provided for in this section
may utilize the following procedures, upon approval of the district
board and concurrence of the executive committee of the appropriate
local bargaining unit:

a. any teacher not retained at the school site shall be
given status as a full-time substitute teacher within
the school district for a period of not to exceed two
(2) years,

b. if the teacher is not offered a contract teaching
position at a school in the district within the two-
year period specified in subparagraph a of this
paragraph, the district board shall be authorized to
not reemploy the teacher, and

ENR. S. B. NO. 1877 Page 583
c. the district board shall designate trained, certified,
instructional staff to provide teacher support,
development, and evaluation, which may include
certified personnel other than administrators.

2. Any actions taken pursuant to this subsection shall not be
subject to the Teacher Due Process Act of 1990. The decision by the
district board for renewal or nonrenewal shall be final.

3. For purposes of this subsection, a full-time substitute
teacher shall perform the duties assigned by the district
superintendent and shall continue to receive the same salary,
benefits, and step increases that the teacher would otherwise be
entitled to for the time period the teacher serves as a full-time
substitute.

D. 1. Each school district subject to the provisions of
subsection B of this section shall submit a plan for compliance with
this section to the State Department of Education, in a manner
prescribed by the Department.

2. The State Department of Education shall annually, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically submit a report of the district plans received
as provided in paragraph 1 of this subsection to the members of the
Senate and House Education Committees.

SECTION 277. AMENDATORY 70 O.S. 2021, Section 1210.591,
is amended to read as follows:

Section 1210.591. The State Board of Education shall establish
a project review and evaluation process and shall make an annual
report to the Legislature analyzing and evaluating all pilot
projects in operation. Said Such report shall be electronically
furnished to the President Pro Tempore of the Senate and the Speaker
of the House of Representatives not later than the tenth legislative
day of each legislative session utilizing the centralized filing
system provided for in Section 378 of this act.

SECTION 278. AMENDATORY 70 O.S. 2021, Section 2120, as
amended by Section 3, Chapter 18, O.S.L. 2022 (70 O.S. Supp. 2025,
Section 2120), is amended to read as follows:

ENR. S. B. NO. 1877 Page 584

Section 2120. A. As used in this act:

1. “Campus community” means students, administrators, faculty,
and staff at the public institution of higher education and their
invited guests;

2. “Harassment” means only that expression that is unwelcome,
so severe, pervasive, and subjectively and objectively offensive
that a student is effectively denied equal access to educational
opportunities or benefits provided by the public institution of
higher education;

3. “Materially and substantially disrupts” means when a person,
with the intent to or with knowledge of doing so, significantly
hinders another person’s or group’s expressive activity, prevents
the communication of the message, or prevents the transaction of the
business of a lawful meeting, gathering or procession by:

a. engaging in fighting, violent or other unlawful
behavior, or

b. physically blocking or using threats of violence to
prevent any person from attending, listening to,
viewing, or otherwise participating in an expressive
activity. Conduct that “materially disrupts” shall
not include conduct that is protected under the First
Amendment to the United States Constitution or Section
22 of Article 2 of the Oklahoma Constitution. Such
protected conduct includes but is not limited to
lawful protests in the outdoor areas of campus
generally accessible to the members of the public,
except during times when those areas have been
reserved in advance for other events, or minor, brief
or fleeting nonviolent disruptions of events that are
isolated and short in duration;

4. “Outdoor areas of campus” means the generally accessible
outside areas of campus where members of the campus community are
commonly allowed, such as grassy areas, walkways or other similar
common areas and does not include outdoor areas where access is
restricted from a majority of the campus community;

ENR. S. B. NO. 1877 Page 585

5. “Public institution of higher education” means any
institution within The Oklahoma State System of Higher Education or
technology center schools overseen by the State Board of Career and
Technology Education; and

6. “Student organization” means an officially recognized group
at a public institution of higher education, or a group seeking
official recognition, comprised of admitted students that receive or
are seeking to receive benefits through the public institution of
higher education.

B. Expressive activities protected under the provisions of this
section include but are not limited to any lawful verbal, written,
audio-visual or electronic means by which individuals may
communicate ideas to one another, including all forms of peaceful
assembly, protests, speeches and guest speakers, distribution of
literature, carrying signs, and circulating petitions.

C. 1. The outdoor areas of campuses of public institutions of
higher education in this state shall be deemed public forums for the
campus community, and public institutions of higher education shall
not create “free speech zones” or other designated areas of campus
outside of which expressive activities are prohibited. Public
institutions of higher education may maintain and enforce reasonable
time, place, and manner restrictions narrowly tailored in service of
a significant institutional interest only when such restrictions
employ clear, published, content- and viewpoint-neutral criteria and
provide for ample alternative means of expression. Any such
restrictions shall allow for members of the campus community to
spontaneously and contemporaneously assemble and distribute
literature.

2. Nothing in this subsection shall be interpreted as limiting
the right of student expression elsewhere on campus.

D. 1. Any person who wishes to engage in noncommercial
expressive activity on campus shall be permitted to do so freely, as
long as the person’s conduct is not unlawful and does not materially
and substantially disrupt the functioning of the public institutions
of higher education, subject only to the requirements of subsection
C of this section.

ENR. S. B. NO. 1877 Page 586

2. Nothing in this subsection shall prohibit public
institutions of higher education from maintaining and enforcing
reasonable time, place, and manner restrictions that are narrowly
tailored to serve a significant institutional interest only when
such restrictions employ clear, published, content- and viewpoint-
neutral criteria. Any such restrictions shall allow for members of
the campus community to spontaneously and contemporaneously
assemble, speak, and distribute literature.

3. Nothing in this subsection shall be interpreted as
preventing public institutions of higher education from prohibiting,
limiting or restricting expression that the First Amendment does not
protect or prohibiting harassment as defined by this section.

4. Nothing in this section shall enable individuals to engage
in conduct that intentionally, materially, and substantially
disrupts another person’s expressive activity if that activity is
occurring in a campus space reserved for that activity under the
exclusive use or control of a particular group.

E. Public institutions of higher education shall make public in
their handbooks, on their websites and through their orientation
programs for students the policies, regulations, and expectations of
students regarding free expression on campus consistent with this
section.

F. Public institutions of higher education shall develop
materials, programs, and procedures to ensure that those persons who
have responsibility for discipline or education of students,
including but not limited to administrators, campus police officers,
residence life officials and professors, understand the policies,
regulations, and duties of public institutions of higher education
regarding free expression on campus consistent with this section.

G. 1. Each public institution of higher education shall
publicly post on its website, as well as electronically submit to
the Governor, the Legislature, and the Chancellor of The Oklahoma
State System of Higher Education annually by December 31 utilizing
the centralized filing system provided for in Section 378 of this
act, a report that details the course of action implemented to be in
compliance with the requirements of this section. A report shall

ENR. S. B. NO. 1877 Page 587
also be given in the instance of any changes or updates to the
chosen course of action. The information required in the report
shall be:

a. accessible from the institution’s website home page by
use of not more than three links,

b. searchable by key words and phrases, and

c. accessible to the public without requiring
registration or use of a user name, password or
another user identification.

2. The report shall include:

a. a description of any barriers to or incidents of
disruption of free expression occurring on campus,
including but not limited to attempts to block or
prohibit speakers and investigations into students or
student organizations for their speech. The
description shall include the nature of each barrier
or incident, as well as what disciplinary action, if
any, was taken against members of the campus community
determined to be responsible for those specific
barriers or incidents involving students without
revealing those students’ personally identifiable
information, and

b. any other information each public institution of
higher education deems valuable for the public to
evaluate whether free expression rights for all
members of the campus community have been equally
protected and enforced consistent with this act.

3. If a public institution of higher education is sued for an
alleged violation of First Amendment rights, a supplementary report
with a copy of the complaint, or any amended complaint, shall be
electronically submitted to the Governor and the Legislature within
thirty (30) days utilizing the centralized filing system provided
for in Section 378 of this act.

ENR. S. B. NO. 1877 Page 588
H. Any person or student organization aggrieved by a violation
of this section may bring an action against the public institution
of higher education and its employees acting in their official
capacities responsible for the violation and seek appropriate
relief, including but not limited to injunctive relief, monetary
damages, reasonable attorneys’ fees, and court costs. Any person or
student organization aggrieved by a violation of this section may
assert such violation as a defense or counter claim in any
disciplinary action or in any civil or administrative proceedings
brought against such student or student organization. Nothing in
this subsection shall be interpreted to limit any other remedies
available to any person or student organization.

I. A person shall be required to bring suit for violation of
this section no later than one year after the day the cause of
action occurs. For purposes of calculating the one-year limitation
period, each day that the violation persists and each day that a
policy in violation of this section remains in effect shall
constitute a new day that the cause of action has occurred.

J. If any provision of this section or any application of such
provision to any person or circumstance is held to be
unconstitutional, the remainder of the section and the application
of the provision to any other person or circumstance shall not be
affected.

SECTION 279. AMENDATORY 70 O.S. 2021, Section 2607, is
amended to read as follows:

Section 2607. A. Beginning December 31, 2022, and each
December 31 thereafter, the Oklahoma State Regents for Higher
Education shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit to the
President Pro Tempore of the Senate and the Speaker of the House of
Representatives an annual report on the impact of the Oklahoma
Higher Learning Access Program, also known as Oklahoma’s Promise,
created pursuant to Sections 2601 et seq. of Title 70 of the
Oklahoma Statutes. The report shall include:

A. 1. Year-to-year cohort retention and five-year graduation
rates of all students enrolled in institutions within The Oklahoma
State System of Higher Education compared to the year-to-year cohort

ENR. S. B. NO. 1877 Page 589
retention and five-year graduation rates of students who receive
Oklahoma Higher Learning Access Program awards who are enrolled in
institutions within The Oklahoma State System of Higher Education.
The data shall include the degree programs in which the students are
enrolled.;

2. Year-to-year cohort retention and five-year graduation rates
of students who receive Oklahoma Higher Learning Access Program
awards who are enrolled in private institutions of higher learning
located within this state and accredited pursuant to Section 4103 of
Title 70 of the Oklahoma Statutes. The data shall include the
degree programs in which the students are enrolled.; and

3. Certificate attainment rates of all students enrolled in
technology center schools compared to the certificate attainment
rates of students who receive Oklahoma Higher Learning Access
Program awards who are enrolled in technology center schools. The
data shall include the career areas in which the students are
enrolled.

B. The financial impact and enrollment impact of the Oklahoma
Higher Learning Access Program on two-year and four-year
institutions within The Oklahoma State System of Higher Education,
private institutions of higher learning located within this state
and accredited pursuant to Section 4103 of Title 70 of the Oklahoma
Statutes and technology center schools.

C. Data on Oklahoma Higher Learning Access Program participants
who graduate from an institution of higher education within The
Oklahoma State System of Higher Education or a private institution
of higher learning located within this state and accredited pursuant
to Section 4103 of Title 70 of the Oklahoma Statutes or who attain a
certificate from a technology center school, including:

1. The number of participants who are residents of the state
one year after graduation or certificate attainment; and

2. The industry or career area in which the participant is
employed.

D. Data from surveys completed pursuant to the provisions of
subsection B of Section 2606 of Title 70 of the Oklahoma Statutes.

ENR. S. B. NO. 1877 Page 590

SECTION 280. AMENDATORY 70 O.S. 2021, Section 2632, as
amended by Section 1, Chapter 129, O.S.L. 2025 (70 O.S. Supp. 2025,
Section 2632), is amended to read as follows:

Section 2632. A. To be eligible for an Oklahoma Tuition
Equalization Grant, a student shall:

1. Be an Oklahoma resident as defined by the Oklahoma State
Regents for Higher Education;

2. Have enrolled as a full-time undergraduate student in an
eligible institution of higher education as prescribed in subsection
D of this section;

3. Meet the income eligibility level, which is the student’s
parents’ income from taxable sources which shall not be more than
Fifty Thousand Dollars ($50,000.00) per year or the student’s income
if the student is independent and self-supporting as determined by
the State Regents consistent with federal financial aid regulations;

4. Pay more tuition than is required at a comparable public
institution of higher education and pay no less than the regular
tuition required of all students enrolled at the institution where
the student is enrolled; and

5. Maintain at least minimum standards of academic performance
as required by the enrolling institution.

B. The enrolling institution shall forward a completed student
application, documentation of full-time enrollment status, and
certification of resident status to the State Regents no later than
October 15 for the fall semester and March 15 for the spring
semester of each academic year.

C. Subject to the availability of funds in the Oklahoma Tuition
Equalization Grant Trust Fund, an Oklahoma Tuition Equalization
Grant in the amount of Two Thousand Dollars ($2,000.00) per academic
year, or One Thousand Dollars ($1,000.00) per academic semester
shall be awarded by the State Regents by allocation from the
Oklahoma Tuition Equalization Grant Trust Fund, beginning with
eligible students enrolled in the 2003-2004 school year. No grants

ENR. S. B. NO. 1877 Page 591
pursuant to this act shall be provided to students for attending
summer terms or intersessions.

D. The State Regents shall implement policies and procedures
for the administration of this act. The State Regents shall approve
as eligible institutions of higher education only those private or
independent, not-for-profit colleges or universities that are
domiciled within this state, meet approved program and accreditation
standards as determined by the State Regents, and are fully
accredited by the Higher Learning Commission of the North Central
Association on Colleges and Schools or a national accrediting body
recognized by the United States Department of Education. To be
eligible, institutions must shall have been granted not-for-profit
status by the Internal Revenue Service and the U.S. Department of
Education prior to July 1, 2012. Additionally, eligible
institutions shall adhere to the complaint process policies and
procedures administered by the State Regents. The State Regents
shall review and take action, as authorized, on complaints
concerning eligible institutions. The eligible institutions shall
include Family of Faith College, Mid-America Christian University,
Oklahoma Baptist University, Oklahoma Christian University, Oklahoma
City University, Oklahoma Wesleyan University, Oral Roberts
University, Southern Nazarene University, Southwestern Christian
University, the University of Tulsa, and Randall University.

E. If funds are not sufficient in the Oklahoma Tuition
Equalization Grant Trust Fund to provide grants for all eligible
applicants, the State Regents shall award grants on the basis of
need and take into consideration other grants and scholarships
received by an eligible applicant when awarding grants. Students
who have previously received a tuition equalization grant and who
continue to meet the requirements for eligibility shall have
absolute priority for continued financial support superior to any
student who is applying for a grant for the first time.

F. Students enrolling as first-time freshmen for the 2003-2004
school year shall be the first class of students eligible to apply
for Oklahoma Tuition Equalization Grants. In subsequent years, all
previously eligible students and the first-time enrolling freshmen
students shall be entitled to apply for a grant pursuant to this
section. Beginning in the 2007-2008 school year, all eligible

ENR. S. B. NO. 1877 Page 592
students shall be entitled to apply for a grant pursuant to this
section.

G. A grant provided by this section shall not be allowed for
courses or other postsecondary units taken in excess of the
requirements for completion of a baccalaureate program or taken more
than five (5) years after the student’s first grant is received.
The State Regents may award an Oklahoma Tuition Equalization Grant
for courses of postsecondary units taken more than five (5) years
after the student’s first grant is received only in hardship
circumstances. No Oklahoma Tuition Equalization Grant recipient may
receive benefits beyond a cumulative time period of five (5) years.

H. On or before February 1 after the first semester in which
grants are awarded pursuant to this act and every year thereafter,
the State Regents shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically provide a
report to the Governor, President Pro Tempore of the Senate, and the
Speaker of the House of Representatives to include, but not be
limited to the number of students awarded grants, grade point
average, persistence rates, degree completion rates, demographic
data, and any other indicators the State Regents deem appropriate.

SECTION 281. AMENDATORY 70 O.S. 2021, Section 3206, is
amended to read as follows:

Section 3206. As provided in Article XIII-A of the Constitution
of Oklahoma, the State Regents shall constitute a coordinating board
of control for all state educational institutions, with the
following specific powers:

(a) It shall prescribe standards of higher education applicable
to each institution.

(b) It shall determine the functions and courses of study in
each of the institutions to conform to the standards prescribed.

(c) It shall grant degrees and other forms of academic
recognition for completion of the prescribed courses in all of such
institutions.

ENR. S. B. NO. 1877 Page 593
(d) It shall recommend to the State Legislature the budget
allocations to each institution.

(e) It shall have the power to recommend to the Legislature
proposed fees for all of such institutions, and any such fees shall
be effective only within the limits prescribed by the Legislature,
after taking due cognizance of expressed legislative intent.

(f) It shall allocate funds to each institution according to
its needs and functions from appropriations made by the Legislature.

(g) It may coordinate private, denominational, and other
institutions of higher learning with the State System under
regulations set forth by the State Regents.

Among other powers and duties, the State Regents shall:

(h) Prescribe standards for admission to, retention in, and
graduation from state educational institutions.

(i) Accept federal funds and grants and use the same in
accordance with federal requirements; and accept and disburse
grants, gifts, devises, bequests, and other monies and property from
foundations, corporations, and individuals; and establish, award,
and disburse scholarships and scholarship funds and rewards for
merit from any funds available for such purpose.

(j) Allocate revolving and other non-state-appropriated
educational and general funds.

(k) Transfer from one institution to another any property
belonging to such institution when no longer needed by it and when
needed by another institution to accomplish its functions.

(l) Prepare and, utilizing the centralized filing system
provided for in Section 378 of this act, electronically publish
annually a report to the Governor, the Legislature, and
institutions, setting forth the progress, needs, and recommendations
of state educational institutions and of the State Regents; conduct
studies, surveys, and research projects to gather information about
the needs of state educational institutions and make such additional
reports and recommendations as it deems necessary or as the Governor

ENR. S. B. NO. 1877 Page 594
or the Legislature may direct, and publish such information obtained
as may be considered worthy of dissemination.

(m) Any monies which it is authorized to invest shall be
invested with the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of
an enterprise of a like character and with like aims.

(n) Issue, on behalf of institutions within The Oklahoma State
System of Higher Education, other than the University of Oklahoma
and Oklahoma State University, and with the powers enumerated by
this act, its obligations for purposes of such capital projects as
the Regents may deem to be proper for the benefit of such
institutions. The obligations issued pursuant to the authority of
this paragraph shall be part of a comprehensive program for capital
maintenance of such institutions and the obligations shall be
special and limited obligations of the Oklahoma State Regents for
Higher Education and shall not constitute general obligations of the
State of Oklahoma.

(o) Exercise all powers necessary or convenient to accomplish
the purposes and objectives of Article XIII-A of the Constitution of
Oklahoma.

SECTION 282. AMENDATORY 70 O.S. 2021, Section 3206.6a,
as amended by Section 2, Chapter 84, O.S.L. 2025 (70 O.S. Supp.
2025, Section 3206.6a), is amended to read as follows:

Section 3206.6a. A. The Oklahoma State Regents for Higher
Education may finance acquisition of or improvements to, or
refinance or restructure outstanding obligations for real property
pursuant to the master lease program. The funds used by the Regents
for the purposes authorized by this section shall be available for
lease transactions having a term that is no more than the useful
life of any real property or improvements acquired by institutions
pursuant to the provisions of this section, and in no event, more
than thirty (30) years.

B. After May 24, 2005, any bonds issued pursuant to this
section shall be subject to the approval of the Legislature as
provided by this subsection. The Oklahoma State Regents for Higher

ENR. S. B. NO. 1877 Page 595
Education shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit an itemized
list of the proposed projects and the terms of the financing to the
Governor, the Speaker of the House of Representatives, the President
Pro Tempore of the Senate, and all members of the Legislature within
the first seven (7) legislative days of an annual legislative
session and prior to the time any such obligations are sold. The
submission to such elected officials shall occur upon the same date
for purposes of computing the time within which action must shall be
taken as further prescribed by this subsection. The Legislature
shall have a period of forty-five (45) calendar days from the date
on which the information is submitted to pass a concurrent
resolution disapproving all or part of the proposed issuance. If
the Legislature does not disapprove the proposed issuance by
concurrent resolution by the end of the forty-fifth day following
the date upon which the proposed issuance is submitted, the proposed
issuance shall be deemed to have been approved by the Legislature.

C. The amount of transactions financed in a calendar year
through the real property master lease program authorized by this
section shall not exceed the combined total of:

1. The submission described in subsection B of this section, or
portion thereof, approved by the Legislature;

2. Any issuance for additional proposed individual projects
submitted by institutions under the coordination of the Oklahoma
State Regents for Higher Education and approved by the Legislature;

3. Any projects approved by the Legislature in a prior calendar
year for which no financing action was taken in the prior calendar
year; and

4. Any projects refunded from a previous issuance.

SECTION 283. AMENDATORY 70 O.S. 2021, Section 3218.2, is
amended to read as follows:

Section 3218.2. A. Resident tuition, nonresident tuition, and
other fees to be required of students receiving instruction or other
academic services provided by institutions of The Oklahoma State
System of Higher Education shall be established by the Oklahoma

ENR. S. B. NO. 1877 Page 596
State Regents for Higher Education with due regard for the
provisions of Section 3218.14 of this title within limits prescribed
by the Legislature. Nothing in this act shall be construed as
limiting or prohibiting the requirement of payment for goods or
services provided by auxiliary enterprises operated by or in
conjunction with institutions of The Oklahoma State System of Higher
Education and authorized by the Oklahoma State Regents for Higher
Education.

B. By January 1 of each year, the Oklahoma State Regents for
Higher Education shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit a
report to the Governor, the President Pro Tempore of the Senate, the
Speaker of the House of Representatives, and the minority floor
leaders and education committee chairs of both houses of the
Oklahoma Legislature. The annual report shall include the following
information:

1. Actions taken in regard to and the schedule of tuition and
fees approved for The Oklahoma State System of Higher Education for
the current academic year;

2. Data on the impact of any tuition or fee increases on the
ability of students to meet the costs of attendance, enrollment
patterns, availability of financial aid;

3. The budget prepared by the State Regents setting out in
detail the necessary expenses of the State Regents for the next
fiscal year;

4. The budget requests or proposals submitted by each
institution to the State Regents for the next fiscal year;

5. The funding formula or allotment system used by the State
Regents to allocate money to each institution, including a
description of the functional goals of the formula or system for
distributing funds to each institution;

6. A calculation of any differences in the budget requests
amounts for each institution and the actual amounts allocated to
each institution, including an explanation for any differences; and

ENR. S. B. NO. 1877 Page 597
7. Any other data considered relevant by the State Regents.

C. By January 1 of each year, each institution of The Oklahoma
State System of Higher Education shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit a report to the Governor, the President Pro
Tempore of the Senate, the Speaker of the House of Representatives,
and the minority floor leaders and education committee chairs of
both houses of the Oklahoma Legislature. The annual report shall
include the following information:

1. A copy of reports submitted to the State Regents which
itemizes the tuition and fees for each institution by campus or
location; and

2. The total budget of each institution for the previous fiscal
year including the amount of revenue received from tuition and fees
and other sources and expenses for each campus or location.

SECTION 284. AMENDATORY 70 O.S. 2021, Section 3219.1, is
amended to read as follows:

Section 3219.1. A. The Oklahoma State Regents for Higher
Education may establish any special fee not specified by law if the
Regents determine that such fee is necessary for academic services
or other activities, facilities or services provided by any
institution of The Oklahoma State System of Higher Education.

Within thirty (30) days of the establishment by the Regents of
such fee, the Regents shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically file a
report with the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, the Chairperson of the Higher
Education Committee of the House of Representatives, and the
Chairperson of the Education Committee of the Senate. The report
shall specify the reasons the Regents determined such fee was
necessary and any other information concerning the fee.

B. Each educational institution within The Oklahoma State
System of Higher Education shall annually publish all tuition and
fees charged at that institution. The institution shall provide

ENR. S. B. NO. 1877 Page 598
that publication free of charge to any person requesting any
information relating to tuition or fees at that institution.

SECTION 285. AMENDATORY 70 O.S. 2021, Section 3224, is
amended to read as follows:

Section 3224. A. It is the intent of the Oklahoma Legislature
that all instructors, including all graduate teaching assistants,
now employed or being considered for employment at institutions
within The Oklahoma State System of Higher Education shall be
proficient in speaking the English language so that they may
adequately instruct students.

B. Exceptions to this statement of intent shall include the
instruction of courses that are:

1. Designed to be taught predominantly in a foreign language;
and

2. Elective, special arrangement courses such as individualized
instruction and independent study courses.

C. It is further the intent of the Legislature that each
institution within The Oklahoma State System of Higher Education
evaluate its instructional faculty for oral, aural, and written
fluency in the English language in the classroom. By September 1 of
each year, each state institution shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically file with the Oklahoma State Regents for Higher
Education a certification stating that the instructional faculty
members, whose native language is other than English, hired either
after July 1, 1995, or hired subsequent to the last annual
certification, are proficient in the English language.

D. Each college and university of the State System shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically provide an annual report to the
President Pro Tempore of the Senate and the Speaker of the House of
the Oklahoma Legislature by January 1 of each year setting forth the
following information:

ENR. S. B. NO. 1877 Page 599
1. Procedures established to guarantee faculty members have
proficiency in both written and spoken English; and

2. Procedures established to inform students of grievance
procedures regarding instructors who are not able to speak the
English language.

SECTION 286. AMENDATORY 70 O.S. 2021, Section 3903, is
amended to read as follows:

Section 3903. (a) The Oklahoma State System of Higher
Education shall operate an allotment system similar to the procedure
set out in the Oklahoma State Finance Act, Section 34 et seq. of
Title 62 of the Oklahoma Statutes, for other agencies of the state
except that the State Regents shall be substituted for the Director
of the Office of Management and Enterprise Services in connection
with approving allotment requests of the constituent institutions
and agencies comprising the State System. The account
classification for the State System shall conform as nearly as
possible with the classification of accounts recommended by the
publications of the National Association of College and University
Business Officers. The State Regents shall allocate to each
institution and agency in the State System, from the consolidated or
lump-sum appropriation made by the Legislature, an amount sufficient
to meet the needs and functions of the institution or agency for the
entire year. Upon such allocation, monies appropriated for
educational and general purposes shall be transferred to the
Educational and General Operations Revolving Fund of the institution
or agency and monies appropriated for capital improvement purposes
shall be transferred to the Capital Improvement Revolving Fund of
the institution or agency. The amount allocated to an institution
or agency for each fiscal year shall be made in a lump sum without
regard to uniform budget or accounting classifications, but shall
not be available for expenditure until subsequently allotted by the
State Regents.

(b) The State Regents, with the approval of the Director of the
Office of Management and Enterprise Services, may allot money to any
such institution or agency to establish and operate a petty cash
fund at the institution or agency; said fund shall only be
reimbursed upon the filing of claims showing the purposes for which
the money was expended. No single expenditure from any petty cash

ENR. S. B. NO. 1877 Page 600
fund so established and operated shall exceed Five Hundred Dollars
($500.00). Splitting of invoices for the purpose of avoiding this
limitation is prohibited. Except for payments to sports officials,
research participants, refunds to students, competition judges, and
temporary farm crews employed at Oklahoma Agricultural Experiment
Stations, expenditures from such fund for personal services, travel
reimbursement, or professional services are prohibited. Further,
the exemption for payments to sports officials and refunds to
students is limited to only those institutions which have previously
been authorized to participate in both the “Alternate Claims
Processing”, by the Director of the Office of Management and
Enterprise Services, and “Remote Warrant Printing”, by the State
Treasurer. The Oklahoma State Regents for Higher Education shall
publish uniform guidelines applicable to all institutions of higher
education for expenditures from petty cash funds, which shall be
strictly adhered to.

(c) Governing boards of control are integral parts of
institutions under their respective jurisdiction; therefore, the
expenses of boards in carrying out their respective duties shall be
paid from the operating budgets of the institutions and other budget
agencies under their jurisdiction. In cases where a board is the
governing board for two or more institutions and/or or other budget
agencies, the board shall prorate its operating expenses among the
institutions and/or or other budget agencies so governed. Prior to
the beginning of the fiscal year, each board shall prepare a budget,
setting out in detail its necessary expenses for the entire fiscal
year and shall, not later than July 1 and utilizing the centralized
filing system provided for in Section 378 of this act,
electronically file a copy of its budget with the President Pro
Tempore of the Senate, the Speaker of the House of Representatives,
the Director of the Office of Management and Enterprise Services,
and the Legislative Service Bureau. Said budget shall include all
full-time-equivalent positions in each activity or division and an
itemization of all sources of income used for operations and
programs. Each board shall revise its budget, if necessary, and
provide said revisions to the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, the Director of the
Office of Management and Enterprise Services, and the Legislative
Service Bureau not later than January 1 of each year. In cases
where a board has jurisdiction over two or more institutions or
budget agencies, it shall, not later than July 1, notify the

ENR. S. B. NO. 1877 Page 601
President of each institution as to the amount of its pro rata share
of the board’s expense budget that will be assessed against the
institution and/or or other budget agency during the fiscal year.

(d) Prior to the beginning of the fiscal year, the coordinating
board of the Oklahoma State Regents for Higher Education shall
prepare a budget setting out in detail its necessary expenses for
the entire fiscal year, and, not later than July 1 and utilizing the
centralized filing system provided for in Section 378 of this act,
shall electronically file a copy of its budget with the Director of
the Office of Management and Enterprise Services and the Legislative
Service Bureau. The State Regents shall allocate the money required
to fund its budget prior to making distribution of appropriated
monies to the various institutions of The Oklahoma State System of
Higher Education.

(e) The Division of Central Accounting and Reporting shall make
cash allocations of revenue in accordance with Section 23 of Article
X of the Oklahoma Constitution, to each institution and agency,
considering the total allocation made by the State Regents from the
lump-sum legislative appropriation as the total appropriation for
the institution or agency, in lieu of legislative appropriations.
All income available to an institution or agency for educational and
general purposes, as defined in the uniform budget and accounting
classifications recommended by the publications of the National
Association of College and University Business Officers, and
including income defined by law as revolving fund income, shall
operate as a continuing nonfiscal appropriation which may be
expended for any educational and general purpose for which
appropriated funds may be expended, if allocated and allotted in
accordance with the Oklahoma State Finance Act, as provided in this
section; provided that no obligation shall be incurred in excess of
the unencumbered balance of cash on hand.

(f) At least thirty (30) days prior to the beginning of each
fiscal year, each of the constituent institutions and agencies shall
file with the State Regents its request for appropriation allotments
for each of the purposes for which expenditures are to be made.
Such requests shall be in conformity with the uniform budget or
accounting classifications recommended by the publications of the
National Association of College and University Business Officers.
Each request for appropriation allotments shall show the amount

ENR. S. B. NO. 1877 Page 602
required to finance each item of the request for the entire year and
for each quarter or each six-month period within the fiscal year, as
required by the Director of the Office of Management and Enterprise
Services. The State Regents, or their designated official or
employee who has been authorized to approve itemized allotment
requests, shall consider the allotment requests for the purpose of
making a determination that: (1) the current financial requirements
of the institution or agency concerned justify the allotment to be
made; (2) the accounting classification is sufficient to reflect the
purpose for which expenditures are to be made and that such
classification is in accordance with the budget classifications
adopted by the Director of the Office of Management and Enterprise
Services and the State Regents, which shall conform as nearly as
possible to the account classification recommended by the
publications of the National Association of College and University
Business Officers; and (3) the realization of estimated revenues
determined by the Director of the Office of Management and
Enterprise Services is sufficient to allow the commitments to be
made. In allotting appropriations and other funds, and approving
subsequent allotments, which may be required by each institution and
agency the State Regents shall follow the same general procedure as
other agencies of the state not under the control of the State
Regents, except as otherwise provided in this section. All forms
and account classifications shall be mutually agreed upon by the
Director of the Office of Management and Enterprise Services and the
State Regents. The State Regents shall file approved requests of
constituent institutions and agencies with the Division of Central
Accounting and Reporting. The State Regents and the Director of the
Office of Management and Enterprise Services shall approve any
request from the administrative head of a constituent institution or
agency for amendment of the approved schedule of positions and
salaries or transfers between items, so long as the currently
approved allotment for such purposes is not exceeded and each such
amendment shall be filed with the Director of the Office of
Management and Enterprise Services, in such detail as he or she may
require, prior to the date on which the first payroll or other
disbursement affected by such amendments is submitted for payment.
In the event that the realization of estimated revenues at any time
during the fiscal year indicates that the total revenue from that
fiscal year to any state fund will be insufficient at the end of the
fiscal year to meet the total appropriations from that fund, the
Director of the Office of Management and Enterprise Services shall

ENR. S. B. NO. 1877 Page 603
notify the State Regents as to the amount of reduction necessary
against the consolidated, or lump-sum appropriation, made to the
State Regents.

(g) The State Regents in making itemized allotments during the
fiscal year, may reserve an amount sufficient to meet a reasonable
failure of revenue until receipt of notice from the Director of the
Office of Management and Enterprise Services that the realization of
estimated revenues indicates that the total appropriations may be
allotted for expenditure. Upon receipt of notice from the Director
of the Office of Management and Enterprise Services of a necessary
reduction in the consolidated, or lump-sum appropriation, to meet a
failure in revenue, the State Regents shall immediately take action
to control the approval of subsequent allotment requests sufficient
to make the aggregate reduction in allotments of all constituent
institutions under their control equal the amount of reduction
ordered against the lump-sum appropriation made by the Legislature.
Such reductions against the lump-sum appropriation shall not exceed
the percentage reduction ordered against other agencies of the
state, in accordance with Section 23 of Article X of the Oklahoma
Constitution.

SECTION 287. AMENDATORY 70 O.S. 2021, Section 3909, as
amended by Section 575, Chapter 486, O.S.L. 2025 (70 O.S. Supp.
2025, Section 3909), is amended to read as follows:

Section 3909. A. In addition to such other audits as may be
required of or desired by the various boards of regents responsible
for the institutions of The Oklahoma State System of Higher
Education, each board shall annually obtain the services of an
independent accounting firm or individual holding a permit to
practice public accounting in this state to perform a complete
financial audit for the preceding fiscal year of each institution
for which the board is responsible. The Oklahoma State Regents for
Higher Education shall likewise annually obtain the services of an
independent accounting firm or individual holding a permit to
practice public accounting in this state to perform a complete
financial audit of all the offices, operations, and accounts of the
State Regents which are not subject to the control of other boards
of regents. The audits shall be filed in accordance with the
requirements set forth for financial statement audits in Section
212A of Title 74 of the Oklahoma Statutes.

ENR. S. B. NO. 1877 Page 604

B. Each board of regents shall appoint a standing Audit
Committee of the board consisting of not fewer than three (3) board
members. The Audit Committee shall be responsible for establishing
the qualifications of any accounting firm or individual seeking to
be hired to perform an audit for the board and shall recommend to
the board the firms or individuals whom the board shall invite to
submit competitive bids. The full board shall select the auditor
from among the competitive bidders. Audit committees shall not
recommend any firm or individual unwilling to meet the following
specifications. The specifications shall be among the terms and
conditions of any contract awarded:

1. All revolving fund accounts, special accounts, special
agency accounts, auxiliary enterprise accounts, and technical area
school district accounts, if any, shall be included within the scope
of the audit;

2. Where operations of constituent agencies or technical area
school districts are relevant to the complete financial audit of the
institution, records of those enterprises shall be included within
the scope of the audit;

3. To the extent required by subsection (d) of Section 4306 of
this title, records of college- or university-related foundations
shall be included within the scope of the audit;

4. At the conclusion of the audit, the auditor shall meet with
the president of the institution and the Audit Committee to review
the audit report to be issued, the management letter or other
comments or suggestions to be issued, and any other findings; and

5. Findings of material weaknesses, qualifications of the
auditor’s report other than those deriving from inadequate plant
records, and of defalcations, or a report of lack of such findings,
shall be electronically communicated in writing to the board, the
State Auditor and Inspector, the Legislative Service Bureau, and the
Oklahoma State Regents for Higher Education with or in advance of
the filing of the audit report required by Section 452.10 of Title
74 of the Oklahoma Statutes utilizing the centralized filing system
provided for in Section 378 of this act; and such written

ENR. S. B. NO. 1877 Page 605
communications shall include any responses or other comments which
the president or the Audit Committee wishes to have included.

C. The State Auditor and Inspector whenever he or she deems it
appropriate, or upon receiving a written request to do so by the
Governor, Attorney General, President Pro Tempore of the Senate, the
Speaker of the House of Representatives, the governing board of an
institution of higher education, the Oklahoma State Regents for
Higher Education or the president of an institution of higher
education, shall conduct a special audit of any institution of
higher education within The Oklahoma State System of Higher
Education. The special audit shall include, but not necessarily be
limited to, a compliance audit as defined in subsection C of Section
213 of Title 74 of the Oklahoma Statutes. The State Auditor and
Inspector shall have the power to take custody of any records
necessary to the performance of the audit but shall minimize actual
physical removal of or denial of access to such records. At the
conclusion of the audit, the State Auditor and Inspector shall meet
with the president of the institution and the Audit Committee of the
board which governs the component audited to review the audit report
to be issued. The report, when issued, shall include any responses
to the audit which the president or the Audit Committee wishes to
have included and shall be electronically presented to the full
board, the Legislative Service Bureau, and the Oklahoma State
Regents for Higher Education with or in advance of the filing
required by Section 452.10 of Title 74 of the Oklahoma Statutes
utilizing the centralized filing system provided for in Section 378
of this act. The cost of such audit shall be borne by the audited
entity and may be defrayed in whole or in part by any federal funds
available for that purpose.

D. Each board of regents shall require the employment of a
sufficient number of internal auditors to meet the board’s fiduciary
responsibilities. Internal audits shall be conducted in accordance
with the provisions of Sections 228 and 229 of Title 74 of the
Oklahoma Statutes. The internal auditors shall submit a report
directly and simultaneously to the audit committee of the board and
the president of the institution; all members of the board of
regents governing the institution, however, shall receive all
internal audit reports and the board of regents shall, at least
annually, review and prescribe the plan of work to be performed by
the internal auditors.

ENR. S. B. NO. 1877 Page 606

E. Any person who alters or destroys records needed for the
performance of an audit or causes or directs a subordinate to do
such acts shall be guilty of a Class D1 felony offense punishable by
imprisonment as provided for in subsections B through F of Section
20N of Title 21 of the Oklahoma Statutes, or by a fine of not more
than Twenty Thousand Dollars ($20,000.00), or by both such fine and
imprisonment. Such person shall also be subject to immediate
removal from office or employment.

SECTION 288. AMENDATORY 70 O.S. 2021, Section 3954, is
amended to read as follows:

Section 3954. A. The Oklahoma State Regents for Higher
Education shall discharge their duties as trustees of the Oklahoma
State Regents’ Endowment Trust Fund, as trustees of the Oklahoma
State Regents’ Academic Scholars Trust Fund, as trustees of the
Oklahoma Higher Learning Access Trust Fund, as trustees of the
Oklahoma GEAR UP Scholarship Trust Fund, and as trustees of the
Oklahoma Tuition Equalization Grant Trust Fund, hereafter “Trust
Funds”:

1. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of
an enterprise of a like character and with like aims;

2. By diversifying the investments of the Trust Funds so as to
minimize the risk of large losses, unless under the circumstances it
is clearly prudent not to do so; and

3. In accordance with the laws, documents and instruments
governing the Trust Funds.

B. The State Regents may procure insurance indemnifying the
members of the State Regents from personal loss or accountability
from liability resulting from a member’s action or inaction as a
trustee.

C. The State Regents may establish an investment committee for
any of the Trust Funds or any combination of such Trust Funds. Such
investment committee shall be composed of members of the State

ENR. S. B. NO. 1877 Page 607
Regents appointed by the chair of the State Regents. The committee
shall make recommendations to the entire membership of the State
Regents on all matters related to the choice of custodians and
managers of the assets of the Trust Funds, on the establishment of
investment and fund management guidelines, and in planning future
investment policy. The committee shall have no authority to act on
behalf of the State Regents in any circumstances whatsoever. No
recommendation of the committee shall have effect as an action of
the State Regents nor take effect without the approval of the State
Regents.

D. The State Regents may retain qualified investment managers
to provide for the investment of the monies of the Trust Funds and
may pay the fees for the services of such investment managers from
the investment proceeds attributable to each of the Trust Funds.
The investment managers shall be chosen by a solicitation of
proposals on a competitive bid basis pursuant to standards set by
the State Regents. Subject to the overall investment guidelines set
by the State Regents, the investment managers shall have full
discretion in the management of those monies of the Trust Funds
allocated to the investment managers. The State Regents shall
manage those monies not specifically allocated to the investment
managers. The monies of the Trust Funds allocated to the investment
managers shall be actively managed by the investment managers, which
may include selling investments and realizing losses if such action
is considered advantageous to longer term return maximization.
Because of the total return objective, no distinction shall be made
for management and performance evaluation purposes between realized
and unrealized capital gains and losses.

E. Funds and revenues for investment by the investment managers
or the State Regents shall be placed with a custodian selected by
the State Regents. Payment of the fees for the custodians’ services
may be paid from the applicable Trust Fund. The custodian shall be
a bank or trust company offering pension fund master trustee and
master custodial services. The custodian shall be chosen by a
solicitation of proposals on a competitive bid basis pursuant to
standards set by the State Regents. In compliance with the
investment policy guidelines of the State Regents, the custodian
bank or trust company shall be contractually responsible for
ensuring that all monies of the Trust Funds are invested in income-
producing investment vehicles at all times. If a custodian bank or

ENR. S. B. NO. 1877 Page 608
trust company has not received direction from the investment
managers of the Trust Funds as to the investment of the monies of
the Trust Funds in specific investment vehicles, the custodian bank
or trust company shall be contractually responsible to the State
Regents for investing the monies in appropriately collateralized
short-term interest-bearing investment vehicles.

F. By November 1, 1989, and prior to August 1 of each year
thereafter, the State Regents shall develop written investment plans
for the Trust Funds.

G. The State Regents shall compile quarterly financial reports
of all the funds and accounts of the Oklahoma State Regents’
Endowment Trust Fund, the Oklahoma State Regents’ Academic Scholars
Trust Fund, the Oklahoma Higher Learning Access Trust Fund, the
Oklahoma GEAR UP Scholarship Trust Fund, and the Oklahoma Tuition
Equalization Grant Trust Fund on a fiscal year basis. The reports
shall include several relevant measures of investment value,
including acquisition cost and current fair market value with
appropriate summaries of total holdings and returns. The reports
shall contain combined and individual rates of returns of the
investment managers by category of investment, over periods of time.
The reports shall be electronically distributed to the Director of
the Legislative Service Bureau and the Chair of the Joint Committee
on Fiscal Operations utilizing the centralized filing system
provided for in Section 378 of this act.

H. After July 1 and before October 1 of each year, the State
Regents shall publish four annual reports presented in simple and
easily understood language. The reports shall be electronically
submitted to the Governor, the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, the
Director of the Legislative Service Bureau, and the Chair of the
Joint Committee on Fiscal Operations utilizing the centralized
filing system provided for in Section 378 of this act. The annual
reports shall cover the operation of the Oklahoma State Regents’
Endowment Trust Fund, the Oklahoma State Regents’ Academic Scholars
Trust Fund, the Oklahoma Higher Learning Access Trust Fund, the
Oklahoma GEAR UP Scholarship Trust Fund, and the Oklahoma Tuition
Equalization Grant Trust Fund during the past fiscal year, including
income, disbursements, and the financial condition of the Trust
Funds at the end of the fiscal year. The annual reports shall also

ENR. S. B. NO. 1877 Page 609
contain the information issued in the quarterly reports required
pursuant to subsection G of this section as well as a summary of the
results of the most recent actuarial valuation to include total
assets, total liabilities, unfunded liability or over-funded status,
contributions and any other information deemed relevant by the State
Regents.

SECTION 289. AMENDATORY 70 O.S. 2021, Section 3970.11,
is amended to read as follows:

Section 3970.11. The Board of Trustees of the Oklahoma College
Savings Plan shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit a report
summarizing any findings and recommendations concerning the program
to the Speaker of the House of Representatives, the President Pro
Tempore of the Senate, and the Governor by February 1 of each year.

SECTION 290. AMENDATORY 70 O.S. 2021, Section 3980.4, as
amended by Section 4, Chapter 186, O.S.L. 2023 (70 O.S. Supp. 2025,
Section 3980.4), is amended to read as follows:

Section 3980.4. A. The Oklahoma State Regents for Higher
Education shall be authorized to issue indebtedness for capital
projects to benefit each and every institution within The Oklahoma
State System of Higher Education except the University of Oklahoma
and Oklahoma State University.

B. The Board of Regents of the University of Oklahoma shall be
authorized to issue indebtedness for capital projects to benefit the
University of Oklahoma as provided by paragraph (n) of Section 3305
of this title. The Board of Regents of the University of Oklahoma,
acting for the benefit of the University of Oklahoma, shall be
authorized to pledge any lawfully available source of revenue other
than revenues appropriated by the Legislature from tax receipts, but
inclusive of revenues derived from the Oklahoma Education Lottery
Act accruing to the credit of the University of Oklahoma to the
repayment of obligations issued pursuant to this subsection and,
with respect to obligations issued for the purpose specified in
Section 160.1 of Title 62 of the Oklahoma Statutes, inclusive of
monies accruing to the credit of the Comprehensive Cancer Center
Debt Service Revolving Fund.

ENR. S. B. NO. 1877 Page 610
C. The Board of Regents for the Oklahoma Agricultural and
Mechanical Colleges shall be authorized to issue indebtedness for
capital projects to benefit Oklahoma State University pursuant to
paragraph 16 of Section 3412 of this title. The Board of Regents
for the Oklahoma Agricultural and Mechanical Colleges, acting for
the benefit of Oklahoma State University, shall be authorized to
pledge any lawfully available source of revenue, other than revenues
appropriated by the Legislature from tax receipts, but inclusive of
revenues derived from the Oklahoma Education Lottery Act, accruing
to the credit of Oklahoma State University to the repayment of
obligations issued pursuant to this subsection.

D. The Board of Regents of Oklahoma Colleges, also known as the
Regional University System of Oklahoma (RUSO) pursuant to Section
3507.1 of this title, shall be authorized to issue indebtedness for
capital projects to benefit the institutions supervised and managed
by RUSO. RUSO shall be authorized to pledge any lawfully available
source of revenue, other than revenue appropriated by the
Legislature from tax receipts, but inclusive of revenues derived
from the Oklahoma Education Lottery Act, accruing to the credit of
institutions supervised and managed by RUSO to the repayment of
obligations issued pursuant to this subsection.

E. The Oklahoma State Regents for Higher Education shall be
required to affirmatively approve the issuance of obligations
pursuant to the provisions of the Oklahoma Higher Education Promise
of Excellence Act of 2005 by either the Board of Regents of the
University of Oklahoma, acting for the benefit of the University of
Oklahoma, the Board of Regents for the Oklahoma Agricultural and
Mechanical Colleges, acting for the benefit of Oklahoma State
University, or RUSO, acting for the benefit of institutions
supervised and managed by RUSO. For each of the proposed bond
issues authorized pursuant to the Oklahoma Higher Education Promise
of Excellence Act of 2005, a Statement of Essential Facts shall be
prepared by the issuing Board of Regents for the use and information
of prospective bond purchasers. It shall be the duty of the
Oklahoma State Regents for Higher Education to examine such
Statement of Essential Facts and determine that, based upon such
facts and projections, the projected revenue will satisfy the
financial obligation to be incurred under the proposed bond issue.
If the facts are found by the State Regents to be substantially
accurate and if the State Regents find that, based upon such facts

ENR. S. B. NO. 1877 Page 611
and projections, the projected revenue will satisfy the financial
obligation to be incurred under the proposed bond issue, then the
Oklahoma State Regents for Higher Education shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically certify such to the Governor, the Speaker of the
House of Representatives, and the President Pro Tempore of the
Senate. The certificate shall be made in substantially the
following form:

The Oklahoma State Regents for Higher Education do hereby
certify that the provisions of this section have been complied with
in proper order, for the bond issue mentioned above.

F. All obligations except refunding or defeasance obligations
proposed to be issued by an authorized issuer pursuant to the
Oklahoma Higher Education Promise of Excellence Act of 2005 shall be
subject to final approval by the Legislature as provided by this
subsection. The authorized issuer shall communicate the proposed
projects and the terms of the financing to the Governor, the Speaker
of the House of Representatives, and the President Pro Tempore of
the Senate prior to the time any such obligations are sold. The
communication required by this subsection shall be made not later
than April 1 each year. The communication to such elected officials
shall occur upon the same date for purposes of computing the time
within which action must shall be taken as further prescribed by
this subsection. The Legislature shall have a period of forty-five
calendar days from the date as of which the information is
communicated to the presiding officers of both chambers in order to
pass a Concurrent Resolution disapproving the proposed issuance. If
the Concurrent Resolution has not received a majority of votes of
those elected to and constituting both the House of Representatives
and the Senate by the end of the forty-fifth day following the date
upon which the proposed issuance is communicated to the presiding
officers of both chambers, the proposed issuance shall be deemed to
have been approved by the Legislature.

G. With the approval of the Oklahoma State Regents for Higher
Education, the total revenues described by subsection B and
subsection C of this section may be pledged to the repayment of
obligations issued by either the Board of Regents of the University
of Oklahoma or obligations issued by the Board of Regents for the
Oklahoma Agricultural and Mechanical Colleges in order to obtain the

ENR. S. B. NO. 1877 Page 612
highest possible credit rating. If the Board of Regents of the
University of Oklahoma and the Board of Regents for the Oklahoma
Agricultural and Mechanical Colleges agree to the use of the total
revenues available to each such Board of Regents pursuant to this
subsection for a project that benefits either the University of
Oklahoma or Oklahoma State University or both such comprehensive
universities, there shall be an agreement executed by both such
Boards of Regents describing the project, the principal amount of
the indebtedness, the terms of the financing, and such other matters
as the two Boards of Regents may mutually agree. Such agreement
shall be executed prior to the sale of any obligations by either
Board of Regents with respect to the proposed project or projects.
The agreement shall provide for one or the other Board of Regents to
be the authorized issuer with respect to the project or projects.
The agreement shall also provide for the ownership or control of any
real or personal property to be improved or acquired with the
proceeds from the sale of any such obligations including any
requirements for the transfer of real or personal property from one
comprehensive university to the other comprehensive university if
such transfer is required in order to promote or ensure the
marketability of any obligations sold by either Board of Regents.

H. The Oklahoma State Regents for Higher Education may pledge
all lawfully available revenues, other than revenues appropriated by
the Legislature from tax receipts, but inclusive of revenues derived
from the Oklahoma Education Lottery Act, and other than the revenues
described by subsection B, C, or D of this section, to the repayment
of obligations issued by the State Regents.

I. The authorized issuers shall be subject to the following
restrictions governing the issuance of the obligations authorized by
the Oklahoma Higher Education Promise of Excellence Act of 2005:

1. Obligations used to pay for the following assets shall be
repaid in a period not to exceed five (5) years:

a. computers,

b. portable telecommunications equipment costing less
than Fifty Thousand Dollars ($50,000.00),

c. motor vehicles, and

ENR. S. B. NO. 1877 Page 613

d. any other item of tangible personal property with an
original useful life of six (6) years or less;

2. Obligations used to pay for the following assets shall be
repaid in a period not to exceed ten (10) years:

a. equipment with an original cost of less than One
Hundred Thousand Dollars ($100,000.00) per item, and

b. renovation of existing structures, unless the cost of
the renovation exceeds the fair market value of the
existing structure or unless the improvement extends
the useful life of the existing structure, but in no
case shall the maturity period exceed the period by
which the life of the existing structure is extended;
and

3. Obligations used to pay for all other assets shall be repaid
in a period not to exceed thirty (30) years and in no case shall the
latest maturity date of an obligation exceed the expected useful
life of the asset.

SECTION 291. AMENDATORY 70 O.S. 2021, Section 4705, is
amended to read as follows:

Section 4705. The State Regents for Higher Education are hereby
authorized to study developing a program to create at least one
trust fund whereby Oklahoma residents will be able to pre-pay all or
part of enrollment fees or tuition to any Oklahoma institution of
higher education recognized by the Oklahoma State Regents for Higher
Education. This program shall require that monies paid in shall be
held in trust and used to pay all or part of the enrollment fees for
the beneficiaries designated by the contributor to the trust. The
program shall allow payments to be made either in a lump sum or in
installments, with the amounts of money due being determined based
on the age of the beneficiary. The program shall require the
Oklahoma State Regents for Higher Education to, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically file a report with the Speaker of the House of
Representatives and the President Pro Tempore of the Senate prior to
January 31 of each year, detailing the activity of the trust in the

ENR. S. B. NO. 1877 Page 614
previous year. The Oklahoma State Regents for Higher Education are
authorized to model the planon plan on the Michigan education trust
act. The Regents shall, prior to January 31, 1988, file a report
with the Speaker of the House of Representatives and the President
Pro Tempore of the Senate, outlining the program.

SECTION 292. AMENDATORY 71 O.S. 2021, Section 1-601, as
last amended by Section 1, Chapter 225, O.S.L. 2023 (71 O.S. Supp.
2025, Section 1-601), is amended to read as follows:

Section 1-601. A. The Administrator shall administer the
Oklahoma Uniform Securities Act of 2004.

B. There are hereby created the Oklahoma Securities Commission
and the Department of Securities. The Commission shall be the
policy making and governing authority of the Department, shall
appoint the Administrator and shall be responsible for the
enforcement of the Oklahoma Uniform Securities Act of 2004.

C. 1. The Commission shall consist of five (5) members,
including the State Banking Commissioner who shall serve as an ex
officio voting member. Four (4) members shall be appointed by the
Governor by and with the advice and consent of the Senate. One
member will be a member of the Oklahoma Bar Association appointed
from a list of five nominees submitted by the Oklahoma Bar
Association; one member shall be an active officer of a bank or
trust company operating in the State of Oklahoma appointed from a
list of five nominees submitted by the Oklahoma Bankers Association;
and one member shall be a certified public accountant appointed from
a list of five nominees submitted by the Oklahoma Society of
Certified Public Accountants; and one member shall be a resident of
this state actively engaged in the securities industry with the
qualifications set forth in paragraph 3 of this subsection.

2. Except for appointment of the member engaged in the
securities industry as provided for in subsection C of this section,
no person may be appointed to or by the Commission while such person
is registered as a broker-dealer, agent, investment adviser, or
investment adviser representative under the Oklahoma Uniform
Securities Act of 2004, or while he or she is an officer, director,
or partner of any person so registered, or while he or she is an
officer, director, or partner of an issuer which has a registration

ENR. S. B. NO. 1877 Page 615
statement effective under the Oklahoma Uniform Securities Act of
2004, or while he or she is occupying a similar status or performing
similar functions.

3. The member appointed as a representative of the securities
industry shall:

a. be currently registered as an agent, investment
adviser, or investment adviser representative under
the requirements of this title,

b. have at least ten (10) years of experience in the
industry immediately preceding appointment, and

c. have not been subject to a regulatory action requiring
disclosure on the uniform applications for
registration for agents, investment advisers, or
investment adviser representatives.

The member may be removed from office by the Governor when the
member has ceased to be qualified based on subparagraph a or c of
this paragraph.

4. It is unlawful for any member of the Commission, the
Administrator, or any other officer or employee of the Department to
use for personal benefit any information which is filed with or
obtained by the Administrator and which is not made public. No
provision of the Oklahoma Uniform Securities Act of 2004 authorizes
any member of the Commission, the Administrator or any other officer
or employee of the Department to disclose any such information
except among themselves or when necessary or appropriate in a
proceeding or investigation under the Oklahoma Uniform Securities
Act of 2004 or in connection with a proceeding or investigation
conducted by any state, federal or foreign law enforcement agency,
securities agency, or self-regulatory organization. No provision of
the Oklahoma Uniform Securities Act of 2004 either creates or
derogates from any privilege which exists at common law or otherwise
when documentary or other evidence is sought under a subpoena
directed to any member of the Commission, the Administrator, or any
other officer or employee of the Department.

ENR. S. B. NO. 1877 Page 616
5. Except on proof of corruption, no Commissioner shall for his
or her acts or failure to act be civilly liable to any investor,
applicant for registration, or any other person.

D. The Governor shall biennially appoint Commission members to
serve for a staggered term of six (6) years. Upon the expiration of
initial terms, the term of each member shall be six (6) years from
the date of his or her appointment and qualification, and until his
or her successor shall qualify. Vacancies shall be filled by the
Governor for the unexpired term. Members shall be eligible for
reappointment.

E. The Commission shall select a chair and is hereby authorized
to adopt rules for conducting its proceedings. Any three members
shall constitute a quorum for transacting Commission business. The
Commission shall meet bimonthly on such date as it may designate and
may meet at such other times as it may deem necessary, or when
called by the chair or by any two members. Complete minutes of each
meeting shall be kept and filed in the Department and shall be
available for public inspection during reasonable office hours. The
Commission shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically report annually to
the Governor, to the Speaker of the House of Representatives, and to
the President Pro Tempore of the Senate. The report shall contain
the minutes of each meeting held during the year, legislative
recommendations, a summary of violations of the Oklahoma Uniform
Securities Act of 2004 and action taken thereon, a list of
securities registered under the Oklahoma Uniform Securities Act of
2004 and such other data and information as may be deemed necessary
or appropriate. The Commission is hereby authorized to publish such
report, and the Administrator may sell copies of such report at such
price as is reasonably sufficient to defray the expenses of the
Department in preparing, publishing, and disseminating the same.
Each member of the Commission shall have unrestricted access to all
offices and records under the jurisdiction of the Department. The
Commission, or a majority thereof, may exercise any power or perform
any act authorized for the Administrator under the provisions of the
Oklahoma Uniform Securities Act of 2004.

F. The Commission shall appoint a full-time Administrator, who
shall serve at the pleasure of the Commission. The Administrator
shall administer the Oklahoma Uniform Securities Act of 2004 under

ENR. S. B. NO. 1877 Page 617
the supervision of the Commission and in accordance with its
policies.

G. The Administrator shall be a person of good moral character,
at least thirty (30) years of age, a resident taxpayer of Oklahoma,
and thoroughly familiar with corporate organization, investment
banking, investment trusts, the sale of securities, and the
statistical details of the manufacturing industries and commerce of
this state. In addition, the Administrator shall:

1. Be a graduate of an accredited law school and a member of
the Oklahoma Bar Association, or shall have had ten (10) years’
experience as a certified public accountant; and

2. Have at least three (3) years’ work experience involving
some aspect of the securities industry. The Commission may also
require additional qualifications. The salary of the Administrator
shall be fixed by the Commission.

H. The Administrator, with the approval of the Commission, may
designate a Deputy Securities Administrator, who shall possess the
same qualifications, including bond, required for the Administrator
and who shall perform all the duties required to be performed by the
Administrator when the Administrator is absent or unable to act for
any reason.

I. Before assuming office, the Administrator shall give a bond
in the sum of Fifty Thousand Dollars ($50,000.00) payable to the
State of Oklahoma, to be approved by the Attorney General of the
State of Oklahoma, conditioned that he or she will faithfully
execute the duties of the office. The Administrator may by rule or
order require any employee of the Department to be bonded on the
same condition and in the same or such lesser amount as he or she
determines. The expense of all such bonds shall be paid from funds
available to the Department.

J. 1. The internal administrative organization of the
Department shall be determined by the Commission in such manner as
to promote the efficient and effective enforcement of the Oklahoma
Uniform Securities Act of 2004. The Department shall include, but
not be limited to, divisions relating to:

ENR. S. B. NO. 1877 Page 618
a. registration of broker-dealers, agents, investment
advisers, and investment adviser representatives,

b. registration of securities,

c. investigation and enforcement, and

d. investor education.

2. Within the division of investor education, the Department
may provide the following services at the discretion of the
Administrator:

a. informing investors of all rights and remedies
available under this act,

b. informing investors of the availability of private
dispute resolution, including arbitration and
mediation, as an alternative to other courses of
action,

c. acting as a liaison between investors and the other
divisions of the Department, and

d. acting as a liaison between investors and issuers of
securities, broker-dealers or investment advisers
subject to the jurisdiction of the Department under
this act.

Nothing in this subsection shall authorize any employee of the
Department to represent the interests of, or to serve as counsel
for, investors in any proceeding or action to include an
administrative or civil proceeding brought by the Department or the
Securities and Exchange Commission, a proceeding brought by the
Financial Industry Regulatory Authority, Inc., or an arbitration or
mediation proceeding. Further, no employee of the Department may
advise any person about the value of securities or as to the
advisability of investing in, purchasing or selling securities, or
as to the value or merits of pursuing a particular course of action.

3. Records of the division of investor education shall not be
exempt from the provisions of the Open Records Act and Section 1-607

ENR. S. B. NO. 1877 Page 619
of this title except as provided for in subparagraph 8 of paragraph
B of Section 1-607 of this title.

K. The Administrator shall prepare in writing a manual of
necessary employee positions for the Department, including job
classifications, personnel qualifications, duties, maximum and
minimum salary schedules, and other personnel information, which
shall be approved by the Commission. The Administrator may select,
appoint, and employ such attorneys, accountants, auditors,
examiners, investigators, clerks, and other personnel as he or she
deems necessary for the proper administration of the Oklahoma
Uniform Securities Act of 2004, and may fix their compensation and
the salary of the Deputy Administrator. The Deputy Administrator
and other employees of the Department shall serve at the pleasure of
the Administrator.

L. The Commission and the Securities Department shall be
assigned offices in Oklahoma City, Oklahoma, by the Office of
Management and Enterprise Services, and all records of the
Commission and Department shall be kept in those offices, unless and
until transferred to the Records Management Division of the Oklahoma
Department of Libraries.

M. 1. Neither the Administrator nor any employee of the
Department, during their respective terms of employment, shall serve
as a director, officer, shareholder, member, partner, agent, or
employee of any person who, during the period of such
Administrator’s or employee’s employment with the Department:

a. was licensed or applied for registration as a broker-
dealer, agent, investment adviser, or investment
adviser representative under this act, or

b. applied for or secured the registration of securities
under the Oklahoma Uniform Securities Act of 2004.

2. Nothing in paragraph 1 of this subsection shall prohibit the
holding, purchasing, or selling of any securities by the
Administrator or any employee of the Department in accordance with
regulations adopted by the Commission for the purpose of protecting
the public interest and avoiding conflicts of interest.

ENR. S. B. NO. 1877 Page 620
3. Nothing contained in paragraph 1 of this subsection shall
prohibit the holding, purchasing, or selling of any securities of
any issuer described in subparagraph b of paragraph 1 of this
subsection of this section by the Administrator if either:

a. the Administrator together with his or her spouse, or
minor children, owns less than one percent (1%) of any
class of outstanding securities of any such issuer so
long as such securities are not purchased in an
initial public offering, or

b. such securities are held or purchased through a
management account or trust administered by a bank or
trust company authorized to do business in this state
that has sole investment discretion regarding the
holding, purchasing or selling of such securities and
the Administrator or employee did not, directly or
indirectly, advise, counsel, or command the holding,
purchasing or selling of any securities or furnish any
information relating to any such securities to such
bank or trust company and further, such account or
trust does not at any time have more than ten percent
(10%) of its total assets invested in the securities
of any one issuer or hold more than five percent (5%)
of the outstanding securities of any class of
securities of any one issuer.

N. The Oklahoma Uniform Securities Act of 2004 does not create
or diminish a privilege or exemption that exists at common law, by
statute or rule, or otherwise.

O. The Administrator may develop and implement investor
education initiatives to inform the public about investing in
securities, with particular emphasis on the prevention and detection
of securities fraud. In developing and implementing these
initiatives, the Administrator may collaborate with public and
nonprofit organizations with an interest in investor education. The
Administrator may accept a grant or donation from a person that is
not affiliated with the securities industry or from a nonprofit
organization, regardless of whether the organization is affiliated
with the securities industry, to develop and implement investor
education initiatives. This subsection does not authorize the

ENR. S. B. NO. 1877 Page 621
Administrator to require participation or monetary contributions of
a registrant in an investor education program.

SECTION 293. AMENDATORY 73 O.S. 2021, Section 179, is
amended to read as follows:

Section 179. A. There is hereby created in the State Treasury
a revolving fund for the Oklahoma Tourism and Recreation Department,
to be designated the “1995 Tourism Bond Revolving Fund”. The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all revenues generated pursuant to the
provisions of Section 178 of this title, which are not otherwise
committed for other lawful purposes. All monies accruing to the
credit of the fund are hereby appropriated and may be budgeted and
expended by the Oklahoma Tourism and Recreation Department for
purposes of retiring the debt created pursuant to Section 178 of
this title. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.

B. Any revenues generated pursuant to Section 178 of this
title, and not expended for purposes of meeting the requirements of
subsection A of this section, may be expended for paying the
operations and maintenance expenses for facilities created pursuant
to Section 178 of this title.

C. The Oklahoma Tourism and Recreation Department shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit an annual report to the President
Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the Governor detailing the revenues generated
and detailing the operating and maintenance expenses in the previous
fiscal year which are attributable to the repairs, refurbishments
and improvements to Oklahoma Tourism and Recreation Department
properties pursuant to Section 178 of this title. Such report shall
be submitted before August 1 of each year.

SECTION 294. AMENDATORY Section 2, Chapter 1, 1st
Extraordinary Session, O.S.L. 2023, as amended by Section 1, Chapter
393, O.S.L. 2024 (73 O.S. Supp. 2025, Section 187B), is amended to
read as follows:

ENR. S. B. NO. 1877 Page 622

Section 187B. A. There is hereby created in the State Treasury
a revolving fund for the Oklahoma Capitol Improvement Authority to
be designated the “Legacy Capital Financing Fund”. The fund shall
be a continuing fund, not subject to fiscal year limitations, and
shall consist of all monies received by the Oklahoma Capitol
Improvement Authority eligible under law and directed for deposit.
All monies accruing to the credit of said such fund are hereby
appropriated and may be budgeted and expended by the Oklahoma
Capitol Improvement Authority for capital projects specifically and
exclusively as authorized by law. Such budgeting and expenditure
shall strictly adhere to the specific terms, limitations, purposes,
and requirements described in such authorizations and in this act.
Expenditures from said fund shall be made upon warrants issued by
the State Treasurer against claims filed as prescribed by law with
the Director of the Office of Management and Enterprise Services for
approval and payment.

B. 1. The Oklahoma Capitol Improvement Authority shall be
authorized to enter into memoranda of understanding with agencies,
departments, and subdivisions of the state as provided by law and as
deemed necessary by the Authority to administer expenditures from
and deposits to the Legacy Capital Financing Fund; provided that
such memoranda of understanding do not conflict with or impede the
administration of capital projects specifically authorized by law.
Such memoranda of understanding shall not constitute a legal
obligation of the State of Oklahoma.

2. a. Unless specified otherwise in the applicable
authorizing legislation, all distributions from the
Legacy Capital Financing Fund shall be returned to the
Fund over a twenty-year period. Such distributions
shall be returned in the form of LCF Recapitalization
Payments as provided in subparagraph b of this
paragraph.

b. The annual LCF Recapitalization Payment required of
entities in receipt of Legacy Capital Financing Fund
distributions shall be equal to one-twentieth (1/20)
of the amount distributed to the entity. Such payment
shall be collected by the Oklahoma Capitol Improvement
Authority in equal monthly installments and deposited

ENR. S. B. NO. 1877 Page 623
to the Legacy Capital Financing Fund; provided, that
in the year of initial distribution no monthly payment
shall be made until the second month after such
distribution. Upon such second month, all monthly
payments for such state fiscal year up to that point
shall become payable.

c. (1) By authorizing distributions from the Legacy
Capital Financing Fund and making recipients of
such funds responsible for LCF Recapitalization
Payments, the Legislature voluntarily subjects
itself to the moral obligation that the
Legislature shall appropriate to recipient state
agencies, otherwise receiving legislative
appropriations, the first annual required LCF
Recapitalization Payment for the state fiscal
year for which the distribution was authorized,
and that such appropriated amount shall remain in
the agency’s appropriation base for the duration
of the LCF Recapitalization period for such
project.

(2) The Legislature, as it deems necessary for the
best interests of the state, may suspend or
restructure for a period of time such LCF
Recapitalization Payments through the adoption of
a concurrent resolution.

C. Limited to the extent required for projects specifically
authorized through the Legacy Capital Financing Act, the Oklahoma
Capitol Improvement Authority shall be authorized to:

1. Acquire real property together with improvements located
thereon and personal property;

2. Provide for the construction of improvements to real
property and to provide funding for repairs, refurbishments, and
improvements to real and personal property;

3. Hold title to property and improvements as necessary to
comply with legal directives and authorizations; and

ENR. S. B. NO. 1877 Page 624
4. Lease, transfer, and otherwise legally dispose of property
and improvements as necessary to comply with legal directives and
authorizations.

D. No later than January 15 annually, the Oklahoma Capitol
Improvement Authority shall, utilizing the centralized filing system
provided for in Section 378 of this act, submit electronically to
the Governor, the Speaker of the Oklahoma House of Representatives,
the President Pro Tempore of the Oklahoma State Senate, the
Appropriations and Budget Chair of the Oklahoma House of
Representatives, and the Appropriations Chair of the Oklahoma State
Senate a report detailing impacts to the balance of the Legacy
Capital Financing Fund occurring in the prior calendar year,
including, but not limited to, all distributions, expenditures,
collections, deposits and investment returns of the Legacy Capital
Financing Fund.

E. Notwithstanding any provision of law to the contrary, all
interest and income derived from deposits to the Legacy Capital
Financing Fund shall be credited to the Legacy Capital Financing
Fund.

SECTION 295. AMENDATORY Section 3, Chapter 441, O.S.L.
2024, as amended by Section 2, Chapter 439, O.S.L. 2025 (73 O.S.
Supp. 2025, Section 188A), is amended to read as follows:

Section 188A. A. The Long-Range Capital Planning Commission
shall develop plans and adopt authorizations directing the Oklahoma
Capitol Improvement Authority on the utilization of Oklahoma Capital
Assets Maintenance and Protection Fund monies.

B. 1. The Commission shall develop and adopt the following
five-year plans to provide for allocations and expenditures of the
Oklahoma Capital Assets Maintenance and Protection Fund as follows:

a. the OCAMP Higher Education Five-year Plan, for the
maintaining and repairing of state-owned properties
and buildings of public institutions of higher
learning,

b. the OCAMP Tourism and Recreation Five-year Plan, for
the maintaining and repairing of properties and

ENR. S. B. NO. 1877 Page 625
buildings of state parks operated by the Oklahoma
Tourism and Recreation Department, and

c. the OCAMP State Five-year Plan, for the maintaining
and repairing of all state-owned properties and
buildings.

2. For fiscal year 2026, the Commission shall allocate Oklahoma
Capital Assets Maintenance and Protection Fund monies to such five-
year plans in the following proportions:

a. the OCAMP Higher Education Five-year Plan shall be
allocated forty-five percent (45%) of such monies for
the following:

(1) twenty percent (20%) of those monies allocated
shall be for four-year colleges and universities
receiving a Research Colleges and Universities
designation from the Carnegie Classification of
Institutions of Higher Education to be further
allocated as follows:

(a) fifty percent (50%) for those colleges and
universities defined as a historically black
college or university pursuant to the
federal Higher Education Act of 1965, as
amended, and

(b) fifty percent (50%) of those monies
allocated shall be for other colleges and
universities,

(2) thirty-five percent (35%) of those monies
allocated shall be for two-year institutions of
higher education within The Oklahoma State System
of Higher Education, and

(3) forty-five percent (45%) of those monies
allocated shall be for all 4-year colleges and
universities except the University of Oklahoma
located in Norman, Oklahoma, and Oklahoma State
University located in Stillwater, Oklahoma,

ENR. S. B. NO. 1877 Page 626

b. the OCAMP Tourism and Recreation Five-year Plan shall
be allocated ten percent (10%) of such monies, and

c. the OCAMP State Five-year Plan shall be allocated
forty-five percent (45%) of such monies.

C. The Commission shall update each five-year plan no less
often than biennially. Upon the adoption of such plans and upon
each update to such plans, a report detailing such plans shall be
submitted by electronic means to the Governor, the President Pro
Tempore of the Senate, and the Speaker of the House of
Representatives utilizing the centralized filing system provided for
in Section 378 of this act.

D. The Office of Management and Enterprise Services, with the
advice and assistance of the Oklahoma Capitol Improvement Authority,
shall provide staffing for the Commission and other such assistance
as the Commission may require.

E. The Commission may direct the Oklahoma Capitol Improvement
Authority to allocate, budget, and expend, either directly or under
the terms of memoranda of understanding lawfully entered into with
other state entities, monies from the Oklahoma Capital Assets
Maintenance and Protection Fund on any project or item that has been
included in an applicable five-year plan authorized under the
provisions of the Oklahoma Capital Assets Maintenance and Protection
Act for no less than one (1) year.

SECTION 296. AMENDATORY Section 2, Chapter 441, O.S.L.
2024, as amended by Section 3, Chapter 439, O.S.L. 2025 (73 O.S.
Supp. 2025, Section 188B), is amended to read as follows:

Section 188B. A. There is hereby created in the State Treasury
a revolving fund for the Oklahoma Capitol Improvement Authority to
be designated the “Oklahoma Capital Assets Maintenance and
Protection Fund” (OCAMP Fund). The fund shall be a continuing fund,
not subject to fiscal year limitations, and shall consist of all
monies received by the Oklahoma Capitol Improvement Authority
eligible under law and directed for deposit to the fund. All monies
accruing to the credit of the fund are hereby appropriated and,
except for the transfer required pursuant to Enrolled Senate Bill

ENR. S. B. NO. 1877 Page 627
No. 1125 of the 2nd Session of the 59th Oklahoma Legislature, may be
allocated, budgeted, and expended by the Oklahoma Capitol
Improvement Authority as directed by the Long-Range Capital Planning
Commission. Such allocations, budgeting, and expenditures shall
strictly adhere to the specific terms, limitations, purposes, and
requirements described in the directive adopted by the Commission.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.

B. The Oklahoma Capitol Improvement Authority shall be
authorized to enter into memoranda of understanding with agencies,
departments, and subdivisions of the state as provided by law and as
deemed necessary by the Authority to administer expenditures from
and allocations and deposits to and from the Oklahoma Capital Assets
Maintenance and Protection Fund, provided that such memoranda of
understanding do not conflict with or impede the administration of
capital projects specifically authorized by law or directed by the
Commission. Such memoranda of understanding shall not constitute a
legal obligation of this state.

C. Limited to the extent required for projects specifically
authorized under the provisions of the Oklahoma Capital Assets
Maintenance and Protection Act, the Oklahoma Capitol Improvement
Authority shall be authorized to:

1. Acquire real property together with improvements located
thereon and personal property;

2. Provide for the construction of improvements to real
property and to provide funding for repairs, refurbishments,
deferred maintenance, and improvements to real and personal
property;

3. Hold title to property and improvements as necessary to
comply with legal directives and authorizations; and

4. Lease, transfer, and otherwise legally dispose of property
and improvements as necessary to comply with legal directives and
authorizations.

ENR. S. B. NO. 1877 Page 628
D. No later than January 15 annually, the Oklahoma Capitol
Improvement Authority shall, utilizing the centralized filing system
provided for in Section 378 of this act, submit electronically to
the Governor, the President Pro Tempore of the Senate, the Speaker
of the House of Representatives, the Chair of the Appropriations
Committee of the Senate, and the Chair of the Appropriations and
Budget Committee of the House of Representatives a report detailing
impacts to the balance of the Oklahoma Capital Assets Maintenance
and Protection Fund occurring in the prior calendar year, including,
but not limited to, all distributions, expenditures, collections,
and deposits of the Oklahoma Capital Assets Maintenance and
Protection Fund.

SECTION 297. AMENDATORY 74 O.S. 2021, Section 18b, as
last amended by Section 2, Chapter 335, O.S.L. 2025 (74 O.S. Supp.
2025, Section 18b), is amended to read as follows:

Section 18b. A. The duties of the Attorney General as the
chief law officer of the state shall be:

1. To appear for the state and prosecute and defend all actions
and proceedings, civil or criminal, in the Supreme Court and Court
of Criminal Appeals in which the state is interested as a party;

2. To appear for the state and prosecute and defend all actions
and proceedings in any of the federal courts in which the state is
interested as a party;

3. To initiate or appear in any action in which the interests
of the state or the people of the state are at issue, or to appear
at the request of the Governor, the Legislature, or either branch
thereof, and prosecute and defend in any court or before any
commission, board, or officers any cause or proceeding, civil or
criminal, in which the state may be a party or interested; and when
so appearing in any such cause or proceeding, the Attorney General
may, if the Attorney General deems it advisable and to the best
interest of the state, take and assume control of the prosecution or
defense of the state’s interest therein;

4. To consult with and advise district attorneys, when
requested by them, in all matters pertaining to the duties of their
offices, when the district attorneys shall furnish the Attorney

ENR. S. B. NO. 1877 Page 629
General with a written opinion supported by citation of authorities
upon the matter submitted;

5. To give an opinion in writing upon all questions of law
submitted to the Attorney General by the Legislature or either
branch thereof, or by any state officer, board, commission or
department, provided, that the Attorney General shall not furnish
opinions to any but district attorneys, the Legislature or either
branch thereof, or any other state official, board, commission, or
department, and to them only upon matters in which they are
officially interested;

6. At the request of the Governor, State Auditor and Inspector,
State Treasurer, or either branch of the Legislature, to prosecute
any official bond or any contract in which the state is interested,
upon a breach thereof, and to prosecute or defend for the state all
actions, civil or criminal, relating to any matter connected with
either of their Departments;

7. Whenever requested by any state officer, board or
commission, to prepare proper drafts for contracts, forms and other
writing which may be wanted for the use of the state;

8. To prepare drafts of bills and resolutions for individual
members of the Legislature upon their written request stating the
gist of the bill or resolution desired;

9. To enforce the proper application of monies appropriated by
the Legislature and to prosecute breaches of trust in the
administration of such funds;

10. To institute actions to recover state monies illegally
expended, to recover state property and to prevent the illegal use
of any state property, upon the request of the Governor or the
Legislature;

11. To pay into the State Treasury, immediately upon its
receipt, all monies received by the Attorney General belonging to
the state;

12. To settle, compromise and dispose of an action in which the
Attorney General represents the interests of the state, so long as

ENR. S. B. NO. 1877 Page 630
the consideration negotiated for such settlement, compromise or
disposition is payable to the state or one of its agencies which is
a named party of the action and any monies, any property or other
item of value is paid first to the State Treasury;

13. To keep and file copies of all opinions, contracts, forms,
and letters of the office, and to keep an index of all opinions,
contracts, and forms according to subject and section of the law
construed or applied;

14. To keep a register or docket of all actions, demands and
investigations prosecuted, defended, or conducted by the Attorney
General in behalf of the state. The register or docket shall give
the style of the case or investigation, where pending, court number,
office number, the gist of the matter, result, and the names of the
assistants who handled the matter;

15. To keep a complete office file of all cases and
investigations handled by the Attorney General on behalf of the
state;

16. To, utilizing the centralized filing system provided for in
Section 378 of this act, electronically report to the Legislature or
either branch thereof whenever requested upon any business relating
to the duties of the Attorney General’s office;

17. To institute civil actions against members of any state
board or commission for failure of such members to perform their
duties as prescribed by the statutes and the Constitution and to
prosecute members of any state board or commission for violation of
the criminal laws of this state where such violations have occurred
in connection with the performance of such members’ official duties;

18. To respond to any request for an opinion of the Attorney
General’s office, submitted by a member of the Legislature,
regardless of subject matter, by written opinion determinative of
the law regarding such subject matter;

19. To convene multicounty grand juries in such manner and for
such purposes as provided by law; provided, such grand juries are
composed of citizens from each of the counties on a pro rata basis
by county;

ENR. S. B. NO. 1877 Page 631

20. To investigate any report by the State Auditor and
Inspector filed with the Attorney General pursuant to Section 223 of
this title and prosecute all actions, civil or criminal, relating to
such reports or any irregularities or derelictions in the management
of public funds or property which are violations of the laws of this
state;

21. To represent and protect the collective interests of all
utility consumers of this state in rate-related proceedings before
the Corporation Commission or in any other state or federal judicial
or administrative proceeding;

22. To represent and protect the collective interests of
insurance consumers of this state in rate-related proceedings before
the Insurance Commissioner or in any other state or federal judicial
or administrative proceeding;

23. To investigate and prosecute any criminal action relating
to insurance fraud, if in the opinion of the Attorney General a
criminal prosecution is warranted, or to refer such matters to the
appropriate district attorney;

24. To monitor and evaluate any action by the federal
government including, but not limited to, executive orders by the
President of the United States, rules or regulations promulgated by
an agency of the federal government or acts of Congress to determine
if such actions are in violation of the Tenth Amendment to the
Constitution of the United States;

25. To cross-deputize police officers of the police department
of any municipality or any officer deputized by the county sheriff
or a designee subject to an interlocal governmental agreement with
the Attorney General’s Office in an effort to combine city, county,
and state law enforcement efforts and to encourage cooperation
between city, county, and state law enforcement officials.
Liability for the conduct of any municipal police officer cross-
deputized under the terms and conditions of an interlocal
governmental agreement or any officer deputized by the county
sheriff under the terms and conditions of an interlocal governmental
agreement shall remain the responsibility of the respective employer
for that officer;

ENR. S. B. NO. 1877 Page 632

26. To maintain data related to human trafficking and to assist
law enforcement, social service agencies, and victim services
programs in identifying and supporting victims of human trafficking;
and

27. To investigate and prosecute any civil or criminal action
relating to violations of the Oklahoma Open Records Act, Section
24A.1 et seq. of Title 51 of the Oklahoma Statutes, or the Oklahoma
Open Meeting Act, Section 301 et seq. of Title 25 of the Oklahoma
Statutes, if the Attorney General determines that a civil or
criminal prosecution is warranted or to defer such matters to a
district attorney.

B. Nothing in this section shall be construed as requiring the
Attorney General to appear and defend or prosecute in any court any
cause or proceeding for or on behalf of the Oklahoma Tax Commission,
the Board of Managers of the State Insurance Fund, or the
Commissioners of the Land Office.

C. In all appeals from the Corporation Commission to the
Supreme Court of Oklahoma in which the state is a party, the
Attorney General shall have the right to designate counsel of the
Corporation Commission as the Attorney General’s legally appointed
representative in such appeals, and it shall be the duty of the
Corporation Commission counsel to act when so designated and to
consult and advise with the Attorney General regarding such appeals
prior to taking action therein.

SECTION 298. AMENDATORY 74 O.S. 2021, Section 20i, as
last amended by Section 1, Chapter 212, O.S.L. 2024 (74 O.S. Supp.
2025, Section 20i), is amended to read as follows:

Section 20i. A. An agency or official of the executive branch
may obtain legal representation by one or more attorneys by means of
one of the following:

1. Employing an attorney as such if otherwise authorized by
law;

2. Contracting with the Office of the Attorney General; or

ENR. S. B. NO. 1877 Page 633
3. If the Attorney General is unable to represent the agency,
or official due to a conflict of interest, or the Office of the
Attorney General is unable or lacks the personnel or expertise to
provide the specific representation required by such agency or
official, contracting with a private attorney or attorneys pursuant
to this section.

B. When entering into a contract for legal representation by
one or more private attorneys or law firms, an agency or official of
the executive branch shall select an attorney or attorneys or a law
firm or law firms from a list of attorneys and firms maintained by
the Attorney General. An agency may contract for legal
representation with one or more attorneys who are not on the list
only when there is no attorney or firm on the list capable of
providing the specific representation and only with the approval of
the Attorney General. The list shall include any attorney or firm
who desires to furnish services to an agency or official of the
executive branch and who has filed a schedule of fees for services
with and on a form approved by the Attorney General. The list of
attorneys and firms desiring to furnish services and a schedule of
fees for each attorney and firm shall be maintained and made
available to the public.

C. An agency or official may agree to deviate from the schedule
of fees only with the approval of the Attorney General and if the
new schedule of fees would not violate the fee schedules set forth
in subsections D and E of this section.

D. An agency or official of the executive branch shall not
enter into a contingency fee contract that provides for the private
attorney or firm to receive an aggregate contingency fee that
exceeds:

1. Twenty-five percent (25%) of that portion of any amount
recovered that is Ten Million Dollars ($10,000,000.00) or less;

2. Twenty percent (20%) of that portion of any amount recovered
that is more than Ten Million Dollars ($10,000,000.00) but less than
or equal to Fifteen Million Dollars ($15,000,000.00);

ENR. S. B. NO. 1877 Page 634
3. Fifteen percent (15%) of that portion of any amount
recovered that is more than Fifteen Million Dollars ($15,000,000.00)
but less than or equal to Twenty Million Dollars ($20,000,000.00);

4. Ten percent (10%) of that portion of any amount recovered
that is more than Twenty Million Dollars ($20,000,000.00) but less
than or equal to Twenty-five Million Dollars ($25,000,000.00); and

5. Five percent (5%) of that portion of any amount recovered
that is more than Twenty-five Million Dollars ($25,000,000.00).

E. Notwithstanding subsection D of this section, the total fee
payable to all retained private attorneys in any contingency fee
contract shall not exceed Fifty Million Dollars ($50,000,000.00),
exclusive of any costs and expenses provided by the contract and
actually incurred by the retained private attorneys, regardless of
the number of actions or proceedings or the number of retained
private attorneys involved in the matter.

F. The Attorney General shall develop a standard clause for
inclusion in every contract for contingent fee attorney services
that shall be used in all cases, describing in detail what is
expected of both the contracted private attorney and the state
including, but not limited to, the requirements as provided in this
subsection. The state shall not enter into a contract for
contingency fee attorney services that does not incorporate such
requirements:

1. The government attorneys shall retain complete control over
the course and conduct of the case;

2. A government attorney with supervisory authority shall be
personally involved in oversight of the case;

3. The government attorneys shall retain veto power over any
decision made by outside counsel related to the case;

4. Any defendant in the case may contact the lead government
attorneys directly, without having to confer with outside counsel;

5. A government attorney with supervisory authority for the
case shall attend all settlement conferences; and

ENR. S. B. NO. 1877 Page 635

6. Decisions regarding settlement of the case shall be reserved
exclusively to the discretion of the government attorneys and the
state.

G. Copies of any executed contingency fee contract with the
private attorney shall be posted on the Attorney General’s website
for public inspection within five (5) business days after the date
the contract is executed and shall remain posted on the website for
the duration of the contingency fee contract including any
extensions or amendments to the contract. Any payment of
contingency fees shall be posted on the Attorney General’s website
within fifteen (15) days after the payment of the contingency fees
to the private attorney or law firm and shall remain posted on the
website for at least three hundred sixty-five (365) days after the
payment is made.

H. Any private attorney or law firm under contract to provide
services to the state on a contingency fee basis shall from the
inception of the contract until at least four (4) years after the
contract expires or is terminated, maintain detailed current records
including documentation of all expenses, disbursements, charges,
credits, underlying receipts and invoices and other financial
transactions related to the attorney services. The private attorney
or law firm shall make all such records available for inspection and
copying upon request of the Attorney General. In addition, the
private attorney or law firm shall maintain detailed contemporaneous
time records for the attorneys and paralegals working on the matter
in increments of no greater than one-tenth (1/10) of an hour and
shall promptly provide such records to the Attorney General upon
request.

I. Before entering into a contract for legal representation by
one or more private attorneys, an agency or official of the
executive branch shall furnish a copy of the proposed contract to
the Attorney General and notify the Attorney General of the
following:

1. The nature and scope of the representation including, but
not limited to, a description of any pending or anticipated
litigation or of the transaction requiring representation;

ENR. S. B. NO. 1877 Page 636
2. The reason or reasons for not obtaining the representation
from an attorney employed by the agency or official, if an attorney
is employed by the agency or official;

3. The reason or reasons for not obtaining the representation
from the Attorney General by contract;

4. The anticipated cost of the representation including the
following:

a. the basis for or method of calculation of the fee
including, when applicable, the hourly rate for each
attorney, paralegal, legal assistant, or other person
who will perform services under the contract, and

b. the basis for and method of calculation of any
expenses which will be reimbursed by the agency or
official under the contract;

5. An estimate of the anticipated duration of the contract;

6. The past or present relationship, if any, between such
attorney, law firm or any partner or other principal in such law
firm and the state agency or state agent proposing to enter into the
contract;

7. If the contract contemplates that all or part of the fee is
contingent on the outcome of the legal proceeding, the reasons the
contingent fee arrangement is believed to be in the state’s interest
and any efforts undertaken to obtain private counsel on a
noncontingent fee basis; and

8. The justification for the determination that the selection
of a contract for legal representation by one or more private
attorneys or firms was made based on the ability of the private
attorney or firm to provide the most economical and most competent
service which furthers the best interest of the state.

J. After the approval of the contract by the Attorney General
for legal representation by one or more private attorneys or law
firms, the Attorney General shall make available to the public on

ENR. S. B. NO. 1877 Page 637
the Attorney General’s website the information required pursuant to
paragraphs 1 through 8 of subsection I of this section.

K. 1. Before entering into a contract for legal representation
by one or more private attorneys or firms where the agency has
reason to believe that the case, transaction or matter will equal or
exceed Twenty Thousand Dollars ($20,000.00) or after employment when
it becomes apparent that the case, transaction or matter will equal
or exceeds Twenty Thousand Dollars ($20,000.00), an agency or
official of the executive branch shall obtain the approval of the
Attorney General when the total cost including fees and expenses, of
all contracts relating to the same case, transaction, or matter will
equal or exceed Twenty Thousand Dollars ($20,000.00).

2. Before entering into a contract for legal representation by
one or more private attorneys or firms to initiate a legal action on
behalf of the state where the agency has reason to believe that the
total cost of the case, transaction or matter including fees and
expenses will equal or exceed One Million Dollars ($1,000,000.00),
an agency or official of the executive branch shall initiate a
request for proposal from at least three qualified private attorneys
or firms, when possible, engaged in providing such services. Notice
of the request for proposal shall be published on the Attorney
General’s website. The request for proposal shall solicit a
billable hourly rate, regardless of whether a contingency fee is
ultimately agreed upon, and shall specify the importance of price,
quality, ability and experience. The selection of a contract for
legal representation by one or more private attorneys or firms shall
be made using the criteria established in the request for proposal
and shall be based on the response to the request which is the most
economical and provides the most competent service which furthers
the best interests of the state. Most economical and most competent
shall not be construed to mean the least expensive proposal.

3. Any amendment, modification or extension of a contract
which, had it been a part of the original contract would have
required approval by the Attorney General, shall also require
approval by the Attorney General.

L. After entering into a contract for legal representation by
one or more private attorneys or firms where the agency has reason
to believe that the case, transaction or matter will equal or exceed

ENR. S. B. NO. 1877 Page 638
One Million Dollars ($1,000,000.00), an agency or official of the
executive branch shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit a
copy of the contract to the Legislative Oversight Committee
overseeing the operations of the Legislative Office of Fiscal
Transparency (LOFT) along with the following:

1. A description of the litigation or of the transaction
requiring representation;

2. The reason or reasons for not obtaining the representation
from an attorney employed by the agency or official;

3. The justification for selecting an attorney or firm
contracted to represent the state; and

4. An estimate of the anticipated duration of the contract.

M. A settlement agreement shall not contemplate the ultimate
use and destination of recovered funds unless done in accordance
with paragraphs 11 and 12 of Section 18b of this title.

N. Within ten (10) days of an agency or official of the
executive branch entering into a settlement agreement where a
private attorney or firm was hired on a contingency fee contract and
the settlement was equal to or greater than One Million Dollars
($1,000,000.00), the agency or official of the executive branch
shall present the settlement agreement to the Legislative Oversight
Committee with oversight of the operations of the Legislative Office
of Fiscal Transparency (LOFT), unless otherwise postponed by LOFT.

O. When an agency or official of the executive branch enters
into a contract for professional legal services pursuant to this
section, the agency shall also comply with the applicable provisions
of Section 85.41 of this title.

P. The provisions of this section shall not apply to the
Oklahoma Indigent Defense System created pursuant to Section 1355 et
seq. of Title 22 of the Oklahoma Statutes.

Q. Upon request of an agency or official of the executive
branch, the Governor, the President Pro Tempore of the Oklahoma

ENR. S. B. NO. 1877 Page 639
State Senate and the Speaker of the Oklahoma House of
Representatives may exempt a legal matter from the requirements of
this section if an exemption is deemed to be in the best interest of
the state. Such exemption shall be issued at their discretion, in
writing and by unanimous consent, and shall be submitted to LOFT.

R. By February 1 of each year, the Attorney General shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit a report to the Governor, the
President Pro Tempore of the Senate, the Speaker of the House of
Representatives, the Chair of the Appropriations and Budget
Committee of the House of Representatives, and the Chair of the
Appropriations Committee of the Senate, that describes the use of
contracts with private attorneys or law firms in the preceding
fiscal year. At a minimum, the report shall identify all new
contracts entered into during the fiscal year being reported and all
previously executed contracts that remain current during any part of
the fiscal year. For each contract, the report shall contain:

1. The name of the private attorney with whom the agency has
contracted including the name of the attorney’s law firm;

2. The nature and status of the legal matter;

3. The name of the parties to the legal matter;

4. The amount of any recovery;

5. The amount of any hourly rate;

6. The amount of any contingency fee paid, if applicable; and

7. The amount paid under the contract for the fiscal year.

S. The provisions of subsections B through R of this section
shall not apply to any agency that invests funds on behalf of its
beneficiaries and, as part of its fiduciary duty, retains one or
more private attorneys or law firms to pursue individual, derivative
or class litigation concerning its investments or assets.

T. The provisions of this section shall not apply to any entity
exempted from Article I of the Administrative Procedures Act

ENR. S. B. NO. 1877 Page 640
pursuant to paragraphs 6 and 7 of subsection A of Section 250.4 of
Title 75 of the Oklahoma Statutes.

SECTION 299. AMENDATORY 74 O.S. 2021, Section 51.1a, as
last amended by Section 2, Chapter 257, O.S.L. 2024 (74 O.S. Supp.
2025, Section 51.1a), is amended to read as follows:

Section 51.1a. A. In addition to the powers and duties as
defined elsewhere in statute, the Office of Homeland Security has
the duty and responsibility for interoperable public safety
communications planning within this state. As part of this duty the
Office of Homeland Security shall:

1. Annually develop and, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
report to the Governor, President Pro Tempore of the Senate, and
Speaker of the House of Representatives, the Statewide
Communications Interoperability Plan;

2. Coordinate statewide planning for public safety
communication needs of state government and state emergency
responders, including a migration plan for state agency use of
public safety communications technologies and rendering of aid
between state government and its political subdivisions for
organizing and use of disparate public safety communications
systems;

3. Serve as a focal point for all state-level projects
involving public safety communications vendors where the focus of
such authority can substantially enhance the state communications
plan or savings;

4. Apply for, receive and hold, or assist state agencies in
applying for, receiving or holding such authorizations, licenses,
and allocations of channels and frequencies to carry out the
purposes of this section;

5. Establish minimum standards and protocols for acquisition,
development, or enhancement of public safety communications
technologies. These standards shall be utilized by the Information
Services Division of the Office of Management and Enterprise

ENR. S. B. NO. 1877 Page 641
Services pursuant to the provisions of Section 34.20 of Title 62 of
the Oklahoma Statutes; and

6. Accomplish such other purposes as may be necessary or
incidental to the administration of its authority or functions
pursuant to law.

B. It is the intent of the Legislature that all state public
entities comply with the provisions of the Statewide Communications
Interoperability Plan issued by the Office of Homeland Security.
All state agencies are required to review the provisions of the
Statewide Communications Interoperability Plan and the public safety
communications standards issued by the Office of Homeland Security
prior to the purchase, acquisition, development, or enhancement of
any public safety communications system. Local public safety
agencies and political subdivisions of the state are encouraged, but
not required, to review the provisions of the Statewide
Communications Interoperability Plan and the public safety
communications standards issued by the Office of Homeland Security
prior to the purchase, acquisition, development, or enhancement of
any public safety communications system to assist the local public
safety agency or political subdivision in purchasing decisions.

C. No state agency shall use state funds or enter into any
agreement for the acquisition, development, or enhancement of a
public safety communication system unless the request is consistent
with the Statewide Communications Interoperability Plan and the
public safety communications standards issued by the Office of
Homeland Security.

SECTION 300. AMENDATORY 74 O.S. 2021, Section 51.2b, as
last amended by Section 5, Chapter 257, O.S.L. 2024 (74 O.S. Supp.
2025, Section 51.2b), is amended to read as follows:

Section 51.2b. A. This section shall be known and may be cited
as the “Oklahoma School Security Grant Program Act”.

B. The Office of Homeland Security shall solicit proposals for
and make grants for the enhancement of campus security at
institutions of higher learning, technology center schools, public
schools, and private schools.

ENR. S. B. NO. 1877 Page 642
C. The goals and objectives of the Oklahoma School Security
Grant Program are to:

1. Increase the awareness of the public and educational
institutions of the risks, threats, and vulnerabilities of school
campuses as well as mitigation strategies;

2. Incentivize participation in school security training
programs designed to assess campus risks, threats, and
vulnerabilities;

3. Provide assistance to institutions of higher learning,
technology center schools, public schools, and private schools
initiating or implementing school security plans, programs, and
activities; and

4. Build upon the success of the pilot education grant program
established by the Office of Homeland Security.

D. The Office of Homeland Security shall determine grant
project criteria and establish a process for the consideration of
proposals. The proposals shall be considered on a statewide
competitive basis among peer institutions. To be eligible for an
Oklahoma School Security Grant Program award, an institution of
higher learning, technology center school, public school, or private
school shall:

1. Complete a risk and vulnerability assessment conducted by
the Oklahoma School Security Institute or a nationally qualified
risk and vulnerability assessor; and

2. Agree to expend grant funds on items recommended by the risk
and vulnerability assessment and/or or to provide de-escalation and
behavioral threat assessment and management training to employees.
Recommended items eligible for grant fund expenditures may include,
but shall not be limited to, physical security enhancements such as
cameras, gates, lighting, locks, doors, windows, security
geofencing, and ballistic storm shelters.

E. Each year the Office of Homeland Security shall prepare an
annual report on the Oklahoma School Security Grant Program and,
utilizing the centralized filing system provided for in Section 378

ENR. S. B. NO. 1877 Page 643
of this act, submit the report electronically to the Governor, the
President Pro Tempore of the Senate, and the Speaker of the House of
Representatives. The report shall include a list of the recipients
of Oklahoma School Security Grant Program awards and information on
how grant funds were used during the previous year.

SECTION 301. AMENDATORY 74 O.S. 2021, Section 61.8, as
amended by Section 1, Chapter 194, O.S.L. 2025 (74 O.S. Supp. 2025,
Section 61.8), is amended to read as follows:

Section 61.8. A. The Long-Range Capital Planning Commission
shall work to decrease the amount of property owned by Oklahoma
state government, return state-owned property to private sector
ownership, better maintain and utilize the state’s needed capital
assets, and, whenever possible, eliminate the practice of state
agencies leasing real property not owned by the state.

B. Each year, the Director of the Office of Management and
Enterprise Services, at the direction of the Long-Range Capital
Planning Commission, shall take action to approve the privatization
of state-owned real property as identified pursuant to the Oklahoma
State Government Asset Reduction and Cost Savings Program. Proceeds
from the liquidation of real properties shall be deposited into the
Maintenance of State Buildings Revolving Fund.

C. Prior to entering into or renewing a lease for real
property, each state agency, board, commission, and public trust
having the state as a beneficiary shall receive approval for
entering into the lease from the Office of Management and Enterprise
Services.

D. Prior to making a purchase of real property or constructing
a building, each state agency, board, commission, and public trust
having the state as a beneficiary shall receive approval for the
purchase or construction from the Director of the Office of
Management and Enterprise Services; provided, if such purchase or
construction is deemed by the Director of the Office of Management
and Enterprise Services to be within the authority of the Long-Range
Capital Planning Commission, the Director shall not approve the
purchase or construction and shall refer the request to the
Commission for action.

ENR. S. B. NO. 1877 Page 644
E. Prior to approval or referral pursuant to subsection C or D
of this section, the Office of Management and Enterprise Services
shall determine if the applicant entity can utilize already existing
state-owned real property as an alternative to leasing non-state-
owned real property or purchasing or constructing new real property.
If such existing state-owned real property is owned by the Oklahoma
Historical Society, is listed on the National Register of Historic
Places or with the National Trust for Historic Preservation, or is
potentially of historical significance, the Office of Management and
Enterprise Services shall notify the Oklahoma Historical Society and
obtain its approval prior to approving an application for its reuse.

F. No state agency, board, commission, or public trust having
the state as its beneficiary shall transfer any real property owned
by the agency, board, commission, or trust to any other state
agency, board, commission, state beneficiary trust, or any public or
private entity unless the transfer is first approved by the Long-
Range Capital Planning Commission. Any transfer made without the
prior approval of the Long-Range Capital Planning Commission as
required by this subsection may be reversed by the Long-Range
Capital Planning Commission and if a transfer is reversed the
agency, board, commission, state beneficiary trust, or other state
government entity to which the real property has been impermissibly
transferred shall take such actions to convey the subject property
to the entity from which the asset was acquired not later than
thirty (30) days from the date an order for such transfer is entered
by the Long-Range Capital Planning Commission. The Commission shall
not approve any transfer unless proceeds from the sale shall be
deposited within the Maintenance of State Buildings Revolving Fund
as established by Section 908 of Title 62 of the Oklahoma Statutes.

G. By February 1 of each year, the Office of Management and
Enterprise Services shall publish a report for the preceding
calendar year listing the parcels of previously state-owned property
sold, detailing the reduction in the amount of space leased by the
state, describing the source of funds and expenditures from the
Maintenance of State Buildings Revolving Fund, and showing the
manner in which deferred maintenance needs are being met. The
report shall be electronically provided to the Governor, Speaker of
the House of Representatives, and President Pro Tempore of the
Senate utilizing the centralized filing system provided for in

ENR. S. B. NO. 1877 Page 645
Section 378 of this act and placed on the documents.ok.gov web
portal.

H. This section shall not be applicable to the following or
their lands, properties, buildings, funds, or revenue:

1. The Oklahoma Ordnance Works Authority;

2. The Commissioners of the Land Office;

3. The Department of Transportation;

4. The Oklahoma Turnpike Authority; and

5. The Grand River Dam Authority.

I. The Director of the Office of Management and Enterprise
Services may make recommendations to the Long-Range Capital Planning
Commission for liquidation of underutilized properties that have
environmental issues, create a liability for the state, or create
expenses that make the continued ownership of the underutilized
property undesirable and the property has been offered through two
public auctions or sealed bids and no viable bids were received. If
the Long-Range Capital Planning Commission approves the liquidation
of the property, the Office of Management and Enterprise Services
may accept a bid of less than ninety percent (90%) of the appraised
value in accordance with Section 327 of Title 61 of the Oklahoma
Statutes.

SECTION 302. AMENDATORY 74 O.S. 2021, Section 63.3, is
amended to read as follows:

Section 63.3. A. The Office of Management and Enterprise
Services shall establish and maintain adequate records and
information on all underground storage tank systems owned and
operated by the state or any agency of the state, including but not
limited to school districts or any agency thereof and institutions
of higher learning.

B. Upon the effective date of this act, every state agency and
school district and institution of higher education owning or
operating an underground storage tank system shall furnish and

ENR. S. B. NO. 1877 Page 646
deliver to the Office of Management and Enterprise Services a report
of the underground tanks owned and operated by the agency, district,
or institution detailing location of the tank, the age, condition of
any such tank, and installation methods, if known.

C. Prior to the report, each agency, district, or institution
shall:

1. Make a visual assessment of the tanks owned and operated by
them to determine whether evidence of leakage from the tank has
occurred;

2. An examination of fuel records during the past year to
determine if input equals output; and

3. Determine based upon visible assessment and upon information
the condition of the tank, expected life of the tank, present and
future need for the tank.

D. Based on the information received from the agencies,
districts and institutions, the Office of Management and Enterprise
Services shall establish and maintain a priority list on state owned
and operated underground storage tank systems with the tanks needing
removal or repair due to leakage given the greatest priority.

E. Upon establishment of the priority list, as funds become
available for such purposes, the Office of Management and Enterprise
Services shall provide for the upgrade, repair or removal of tanks
owned and operated by said state agencies, districts, or
institutions so as to meet the federal protection standards for
underground storage tank systems by 1999. When possible an internal
assessment of the tanks shall be made and as a preference over
removal except in cases of economics or extent of deterioration of
the tank, or future need of the tank, and when needed the tank shall
be upgraded pursuant to the most current edition of the National
Leak Prevention Association Standard No. 631.

F. Except in an emergency situation no tank shall be removed
without the approval of the Office of Management and Enterprise
Services after determination that removal would be more cost
effective than repairing or upgrading the tank.

ENR. S. B. NO. 1877 Page 647
G. By January 15 of each year, the Office of Management and
Enterprise Services shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically make a
written report to the Speaker of the House of Representatives and
the President Pro Tempore of the Senate listing:

1. The number of tanks owned and operated by state agencies,
districts, and institutions; and

2. How many tanks were removed and replaced or removed, or
upgraded and an estimated cost of bringing the tanks into compliance
with federal law requirements by 1999.

SECTION 303. AMENDATORY 74 O.S. 2021, Section 63.5, is
amended to read as follows:

Section 63.5. Upon receipt of reports required by Section 2 of
this act, the Office of Management and Enterprise Services shall
cause the reports to be posted on the documents.ok.gov website. The
Office shall also, utilizing the centralized filing system provided
for in Section 378 of this act, electronically send a notice of such
posting to the Governor, the President Pro Tempore of the Senate,
and the Speaker of the House of Representatives.

SECTION 304. AMENDATORY 74 O.S. 2021, Section 78, as
amended by Section 1, Chapter 351, O.S.L. 2023 (74 O.S. Supp. 2025,
Section 78), is amended to read as follows:

Section 78. A. There is hereby created and established within
the Office of Management and Enterprise Services, the Fleet
Management Division. The Division shall provide oversight of and
advice to state agencies that own, operate, and utilize motor
vehicles. All agencies shall be subject to Fleet Management
Division reporting requirements. The following agencies are exempt
from Fleet Management Division oversight and advice, but are still
subject to required reporting from Fleet Management Division to
provide full transparency of the statewide fleet: Department of
Public Safety, the Department of Transportation, the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, the Military
Department of the State of Oklahoma, the Oklahoma State Bureau of
Investigation, the Commissioners of the Land Office and The Oklahoma
State System of Higher Education.

ENR. S. B. NO. 1877 Page 648

B. The Director of the Office of Management and Enterprise
Services shall:

1. Appoint and fix duties and compensation for a Fleet Manager
who shall serve as the administrative head of the division;

2. Hire personnel as necessary to provide fleet services;

3. Acquire facilities to maintain vehicles;

4. Promulgate rules for efficient and economical operations to
provide fleet services; and

5. Report Utilizing the centralized filing system provided for
in Section 378 of this act, electronically report to the Governor,
Speaker of the House of Representatives, and President Pro Tempore
of the Senate those agencies that fail to comply with the provisions
of law and the rules of the Fleet Management Division regarding
submission of reports, vehicle use, and vehicle maintenance.

C. The rules shall include provisions to:

1. Establish uniform written vehicle acquisition, leasing,
maintenance, repairs, and disposal standards for use by all state
agencies to justify actual need for vehicles;

2. Establish standards for routine vehicle inspection and
maintenance;

3. Provide standards and forms for recordkeeping of fleet
operation, maintenance, and repair costs for mandatory use by all
state agencies to report the data to the Fleet Management Division
on a monthly basis;

4. Provide standards and utilize methods for disposal of
vehicles pursuant to the Oklahoma Surplus Property Act and any other
applicable state laws;

5. Establish mandatory maintenance contracts throughout the
state for all agencies to access for vehicle repairs and service at
discounted rates and parts;

ENR. S. B. NO. 1877 Page 649

6. Require all agencies with in-house repair and service
facilities to assign a value to the preventive maintenance services,
track those services with a dollar value, and report costs to the
Fleet Manager for the prior month no later than the twentieth day
following the close of each month;

7. Promulgate rules requiring all state-owned motor vehicles to
be marked in a uniform, highly visible manner, except for certain
vehicles driven by law enforcement agencies or other agencies
requiring confidentiality;

8. Require agencies to produce and maintain written
justification for any vehicle that travels fewer than twelve
thousand (12,000) miles annually and report to the Fleet Manager
such information by October 1 of each year; and

9. Address any other matter or practice which relates to the
responsibilities of the Director of the Office of Management and
Enterprise Services.

D. The Fleet Manager shall:

1. Develop specifications for contracts for vehicle maintenance
for state vehicles not serviced or maintained by state agencies;

2. Conduct on-site inspections to verify state agency or
supplier compliance with Division standards for inspections,
maintenance and recordkeeping;

3. Assess state agency needs for vehicles and types of
vehicles;

4. Assign, transfer, or lease vehicles to a state agency to
meet the needs of the state agency;

5. Unless otherwise provided by law, determine whether a state
agency may use or operate a vehicle without state identifying
markings, bearing a license plate used by a privately owned vehicle
to perform the duties of the state agency without hindrance;

ENR. S. B. NO. 1877 Page 650
6. Report to the Director of the Office of Management and
Enterprise Services occurrences of agencies failing to comply with
the provisions of law and the rules of the Fleet Management Division
regarding submission of reports, vehicle use, and vehicle
maintenance;

7. Offer guidelines to agencies to assist in determining the
most cost-effective and reasonable modes of travel for single trips
from the following options: state vehicle, private rental, or
mileage reimbursement; and

8. Provide Utilizing the centralized filing system provided for
in Section 378 of this act, electronically provide, upon the request
of the Governor, the President Pro Tempore of the Senate, or the
Speaker of the House of Representatives, reports from data the Fleet
Manager collects.

E. The Director of the Office of Management and Enterprise
Services may enter into agreements with any political subdivision of
this state for the purpose of providing fleet services established
by the Fleet Management Division pursuant to this section and rules
promulgated pursuant to this section.

F. The Director of the Office of Management and Enterprise
Services, through the Fleet Management Division, may enter into
partnership agreements with political subdivisions and private
entities for the purposes of applying for, participating in, and
administering federal grant funds. The partnership agreements and
activities authorized in this subsection are hereby declared to be a
public purpose.

G. The Office may offer public access to alternative fueling
infrastructure owned and operated by the Office in areas of the
state in which access to an alternative fueling infrastructure is
not readily available to the public. The Office shall cease
allowing public access to an alternative fueling infrastructure
operated by the Office if a privately owned alternative fueling
infrastructure locates within a five-mile radius of the
infrastructure operated by the Department.

H. When used in relation to the Fleet Management Division:

ENR. S. B. NO. 1877 Page 651
1. “Alternative fueling infrastructure” shall mean a fill
station or charge station used to deliver or provide alternative
fuels as defined in Section 130.2 of this title; and

2. “Alternative fuel vehicle” shall mean a motor vehicle
originally designed by the manufacturer to operate lawfully and
principally on streets and highways which is propelled by an
alternative fuel as defined in Section 130.2 of this title.

SECTION 305. AMENDATORY 74 O.S. 2021, Section 78d, as
amended by Section 2, Chapter 351, O.S.L. 2023 (74 O.S. Supp. 2025,
Section 78d), is amended to read as follows:

Section 78d. The Fleet Management Division shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically furnish to the Governor, President Pro Tempore of the
Senate, and the Speaker of the House of Representatives, at the
close of each fiscal year a statement showing the financial
condition of the Division, an inventory of all motor vehicles
regardless of exemption or oversight status, and such other
information regarding the state motor vehicle transportation system
as is necessary for a proper understanding of the operation of such
system and of the financial condition of the motor pool operations.

SECTION 306. AMENDATORY 74 O.S. 2021, Section 85.5, as
amended by Section 1, Chapter 102, O.S.L. 2024 (74 O.S. Supp. 2025,
Section 85.5), is amended to read as follows:

Section 85.5. A. Except as otherwise provided in this section,
the State Purchasing Director, under the supervision of the Director
of the Office of Management and Enterprise Services, shall have sole
and exclusive authority and responsibility for all acquisitions by
state agencies. In order to carry out the powers and duties of the
Chief Information Officer and the Information Services Division, the
Chief Information Officer shall have sole and exclusive authority
and responsibility for all acquisitions of information and
telecommunications technology, equipment, software, products and
related peripherals and services by state agencies. Public
construction contracts are awarded pursuant to Title 61 of the
Oklahoma Statutes and are not subject to the Oklahoma Central
Purchasing Act.

ENR. S. B. NO. 1877 Page 652
B. Every state agency shall determine its own quantitative
needs for acquisitions and the general class or nature of the
acquisitions. The State Purchasing Director, after consultation
with the requisitioning state agency, shall have authority to
determine the particular brand, model, or other specific
classification of each acquisition and to draft or invoke pursuant
to the Oklahoma Central Purchasing Act specifications establishing
the requirements for all necessary contracts or purchase orders.

C. The Director of the Office of Management and Enterprise
Services shall have authority and responsibility to promulgate rules
in connection with provisions of the Oklahoma Central Purchasing Act
for:

1. The time, manner, authentication, and form of making
requisitions for acquisitions;

2. Inspection, analysis and testing of acquisitions or samples
bidders submit prior to contract award;

3. The form and manner of submission for bids or proposals a
bidder submits and the manner of accepting and opening bids or
proposals;

4. The conditions under which the Office of Management and
Enterprise Services shall require written contracts for
acquisitions, the conditions under which acquisitions may be made on
an open account basis, and the conditions and manner of negotiating
such contracts;

5. Obtaining acquisitions produced by state institutions;

6. Conditions under which any of the rules herein authorized
may be waived;

7. The amounts of and deposits on any bond or other surety
required to be submitted with a bid or contract for the furnishing
of acquisitions and the conditions under which such bond or other
surety shall be required;

8. The manner and conditions of delivery, which shall include
the designation of the common carrier of property to be used to

ENR. S. B. NO. 1877 Page 653
transport acquisitions whenever a common carrier is used, and the
acceptance, or rejection, including check of quantities, of any
acquisitions;

9. The form of any estimate, order or other information
required in connection with an acquisition;

10. State agency acquisitions not exceeding the acquisition
threshold amount requiring competitive bid to ensure
competitiveness, fairness, compliance with the Oklahoma Central
Purchasing Act and Section 3001 et seq. of this title, which relates
to the State Use Committee. The rules shall include separate
provisions based on acquisition amounts as follows:

a. state agencies shall make acquisitions not exceeding
Twenty-five Thousand Dollars ($25,000.00), provided
the acquisition process is fair and reasonable and is
conducted pursuant to rules authorized pursuant to
this section, and

b. state agencies with certified procurement officers and
internal purchasing procedures found compliant by the
State Purchasing Director may make acquisitions in
excess of the fair and reasonable acquisition
threshold amount provided for in this section and not
exceeding Two Hundred Fifty Thousand Dollars
($250,000.00), pursuant to rules authorized by this
section;

11. Training by the State Purchasing Director of state agency
procurement officers;

12. Review and audit by the State Purchasing Director of state
agency acquisitions;

13. The conditions for increasing acquisition limits for state
agencies which have had a prior reduction in acquisition limit by
the Director of the Office of Management and Enterprise Services;

14. Use of a state purchase card to make acquisitions;

ENR. S. B. NO. 1877 Page 654
15. Any other matter or practice which relates to the
responsibilities of the State Purchasing Director;

16. Conditions for determination and authorization of
acquisition threshold amounts of state agencies;

17. The form and manner of verification by suppliers that the
supplier is eligible to do business in the State of Oklahoma and has
obtained all necessary permits and licenses, pursuant to applicable
provisions of law; and

18. Payment procedure rules for state agencies to adhere to
regarding statewide contracts.

D. The State Purchasing Director shall provide training for
state agency procurement officials, and other procurement staff, and
is authorized to require retraining of such procurement personnel
found not to be in compliance with provisions of the Oklahoma
Central Purchasing Act or associated rules. The training may
include any matters related to state procurement practices. State
agency purchasing officials that demonstrate proficiency shall be
certified as “certified procurement officers” by the State
Purchasing Director and shall be authorized to make acquisitions
pursuant to provisions of the Oklahoma Central Purchasing Act and
associated rules. The State Purchasing Director may assess a fee to
state agencies for the training that does not exceed each state
agency’s pro rata share of the costs the State Purchasing Director
incurs to provide the training.

E. The State Purchasing Director shall review state agency
acquisitions for the purposes of:

1. Ensuring state agency compliance with provisions of the
Oklahoma Central Purchasing Act;

2. Ensuring state agency compliance with rules promulgated by
the Office of Management and Enterprise Services pursuant to the
Oklahoma Central Purchasing Act;

3. Ensuring state agency compliance with provisions of Section
3001 et seq. of this title pertaining to the State Use Committee;

ENR. S. B. NO. 1877 Page 655
4. Reporting any acquisition by any state agency found not to
be in compliance with those sections or rules to the Director of the
Office of Management and Enterprise Services;

5. A determination by the State Purchasing Director to reduce a
state agency’s acquisition authority amount when the state agency is
found not to be in compliance with the Oklahoma Central Purchasing
Act or associated rules or requirements of the State Purchasing
Director pursuant to this section; and

6. A determination by the State Purchasing Director to increase
a state agency’s acquisition authority amount after the agency cures
deficiencies in connection with a prior reduction in the authority
amount by the State Purchasing Director.

F. Based on written findings and when recommended by the State
Purchasing Director, the Director of the Office of Management and
Enterprise Services may:

1. Transmit written findings by the State Purchasing Director
to the State Auditor and Inspector for further investigation,
indicating purchasing procedures that do not conform to the Oklahoma
Central Purchasing Act or associated rules; or

2. Transmit to the Attorney General or the State Auditor and
Inspector for further investigation a report made by the State
Purchasing Director that the Director of the Office of Management
and Enterprise Services reasonably believes indicates that an action
that constitutes a criminal violation pursuant to the Oklahoma
Central Purchasing Act or other laws has been taken by any state
agency, state agency official, bidder, or supplier.

G. 1. Pursuant to the requirements of the Oklahoma Central
Purchasing Act, the State Purchasing Director shall have authority
to enter into any statewide, multistate, or multigovernmental
contract. The state entity designated by law, as specified in
Section 1010.3 of Title 56 of the Oklahoma Statutes, shall
participate in the purchase of pharmaceuticals available through
such multistate or multigovernmental contracts entered into by the
State Purchasing Director.

ENR. S. B. NO. 1877 Page 656
2. Whenever it appears advantageous to the state or to any
state agency to purchase or otherwise acquire any acquisition which
may be offered for sale by the United States government or any
agency thereof, the State Purchasing Director may execute a contract
for the acquisition with the federal government or federal agency
and may also utilize contracts awarded by other governmental
agencies including, but not limited to, agencies of the United
States of America.

3. The State Purchasing Director may designate, for use by
state agencies, contracts described in this subsection and contracts
awarded on behalf of one or more state agencies.

4. Prior to exercising the authority to cancel a contract, the
State Purchasing Director may authorize renegotiation of an existing
contract with an incumbent supplier for the purposes of obtaining
more favorable terms for the state.

5. The State Purchasing Director shall have the authority to
designate certain contracts for state agencies as statewide
contracts and mandatory statewide contracts. In order to carry out
the powers and duties of the Chief Information Officer and
Information Services Division, the Chief Information Officer shall
have the authority to designate certain information technology and
telecommunication contracts as statewide contracts and mandatory
statewide contracts and may negotiate consolidation contracts,
enterprise agreements and high technology system contracts in lieu
of or in conjunction with competitive bidding procedures to reduce
acquisition cost.

6. The State Purchasing Director may publish such
specifications relating to materials, supplies, equipment, and
services to be acquired for the state as may best promote
competition and apprise potential suppliers of the type of product
desired.

H. 1. The State Purchasing Director may develop and test new
contracting policies, procedures and innovations that hold potential
for making state procurement more effective and efficient and
identify, and make recommendations to the Legislature of, any
appropriate changes in law. Such development and testing, proof of

ENR. S. B. NO. 1877 Page 657
concept, pilot project or other similar test shall not be considered
an acquisition subject to the Oklahoma Central Purchasing Act.

2. The State Purchasing Director is authorized to explore and
investigate cost savings in energy, resource usage and maintenance
contracts and to identify and negotiate contract solutions
including, but not limited to, pilot projects to achieve cost
savings for this state.

I. The State Purchasing Director shall endeavor to satisfy
state agencies in terms of cost, quality, and timeliness of the
delivery of acquisitions by using bidders who have a record of
successful past performance, promoting competition, minimizing
administrative operating costs and conducting business with
integrity, fairness, and openness.

J. The State Purchasing Director shall undertake the following:

1. The use of electronic commerce pursuant to the Oklahoma
Online Bidding Act for solicitation, notification and other
purchasing processes;

2. Monitoring rules promulgated pursuant to the Oklahoma
Central Purchasing Act to ensure that the rules satisfy the
interests of the state, are clear and succinct and encourage
efficiency in purchasing processes;

3. A program to identify suppliers’ performance records;

4. Development of criteria for the use of sealed bid
contracting procedures, negotiated contracting procedures, selection
of types of contracts, postaward administration of purchase orders
and contracts, addendums, termination of contracts, and contract
pricing;

5. Continual improvement in the quality of the performance of
the Purchasing Division through training programs, management
seminars, development of benchmarks and key management indicators,
and development of standard provisions, clauses, and forms;

6. The State Purchasing Director shall prescribe standardized
contract forms and all other forms or certifications requisite or

ENR. S. B. NO. 1877 Page 658
deemed necessary by the State Purchasing Director to effectuate the
provisions of the Oklahoma Central Purchasing Act and associated
rules;

7. Development of programs to improve customer relations
through training, improved communications, and appointment of
technical representatives;

8. Provide for public two-way communication between procurement
officers and potential bidders who have questions regarding a
request for proposal or invitation to bid; and

9. Determine whether and to what extent information included in
a bid or similar offer is confidential and reject all requests to
disclose the information so designated.

K. The State Purchasing Director may utilize and authorize
state agencies to utilize reverse auctions to obtain acquisitions.

L. Prior to the award of a contract to a supplier, the State
Purchasing Director shall verify, pursuant to applicable provisions
of law, that the supplier is eligible to do business in this state
by confirming registration with the Secretary of State and franchise
tax payment status pursuant to Sections 1203 and 1204 of Title 68 of
the Oklahoma Statutes. The provisions of this subsection shall be
applicable only if the contract amount is Two Hundred Fifty Thousand
Dollars ($250,000.00) or greater.

M. On an annual basis, the State Purchasing Director shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically transmit to the Governor, Speaker of the
House of Representatives, and President Pro Tempore of the Senate a
report documenting the savings realized by each agency through the
application of best spend practices including the collection and
tracking of spend data, strategic sourcing programs and
implementation of managed and mandatory statewide contracts and
include in the report information regarding emergency acquisitions.

N. The acquisition threshold amount applicable to an
acquisition made pursuant to this act or associated rules shall not
apply to state agency purchases; provided, the State Purchasing
Director determines the agency has subject matter experts on staff

ENR. S. B. NO. 1877 Page 659
having the specialized expertise to purchase goods or services, the
agency possesses the necessary legal and procurement staff to
procure and monitor the contracts and provided the Director of the
Office of Management and Enterprise Services shall certify that the
proposed purchase does not conflict with consolidated statewide
spend initiatives.

1. Nothing in this subsection shall give an agency authority to
issue statewide, multistate, or multigovernmental contracts.

2. Agencies making purchases pursuant to this subsection shall:

a. be responsible for contracts awarded pursuant to this
subsection, which includes, but may not be limited to,
contract management, protest costs, all costs
connected with or incurred as a result of the
contract, including legal representation,

b. comply with rules and policies of the Office of
Management and Enterprise Services, and

c. report contracts issued pursuant to this subsection to
the Office of Management and Enterprise Services,
Central Purchasing Division, on a quarterly basis.

3. Purchases made in accordance with this subsection shall be
made pursuant to rules authorized by this section.

O. The State Purchasing Director, with approval by the Director
of the Office of Management and Enterprise Services, is authorized
to make use of any state laboratories for the tests and analyses
authorized in this section wherever practicable and to use private
laboratories or the laboratories of another government agency if it
is impracticable to use state laboratories. The State Purchasing
Director is further authorized to cooperate in test and analysis
programs or agreements with other states or the United States
government and to accept federal funds and funds donated by private
endowments or foundations for the purpose of participation in such
testing programs.

P. The State Purchasing Director shall require all contractors
or subcontractors who have entered into a contract with a public

ENR. S. B. NO. 1877 Page 660
employer to submit an affidavit that the contractor or subcontractor
is in compliance with the provisions of Section 1313 of Title 25 of
the Oklahoma Statutes. If the State Purchasing Director determines
that a contractor or subcontractor has knowingly submitted a false
affidavit:

1. The contractor or subcontractor shall be liable for an
administrative penalty of Five Thousand Dollars ($5,000.00) for the
first offense, which shall increase by Two Thousand Dollars
($2,000.00) for each subsequent offense; and

2. The public employer or the Office of Management and
Enterprise Services may terminate the contract with the contractor
or subcontractor.

SECTION 307. AMENDATORY 74 O.S. 2021, Section 85.7, as
last amended by Section 1, Chapter 339, O.S.L. 2023 (74 O.S. Supp.
2025, Section 85.7), is amended to read as follows:

Section 85.7. A. 1. Except as otherwise provided by the
Oklahoma Central Purchasing Act, or associated rules:

a. every state agency shall initiate all acquisitions by
the submission of a requisition to the Purchasing
Division, and

b. no state agency shall make an acquisition for an
amount exceeding Fifty Thousand Dollars ($50,000.00)
or the limit determined by the State Purchasing
Director pursuant to rules authorized by Section 85.5
of this title, not to exceed Two Hundred Fifty
Thousand Dollars ($250,000.00), without submission of
a requisition to the Purchasing Division for issuance
of a solicitation for the acquisition on behalf of the
agency. Any exemption from competitive bid
requirements of the Oklahoma Central Purchasing Act
further exempts the acquisition from requisition
requirements of the act.

2. The State Purchasing Director may request additional
information necessary to adequately review a requisition to ensure
compliance with the Oklahoma Central Purchasing Act and associated

ENR. S. B. NO. 1877 Page 661
rules. If the State Purchasing Director determines that an
acquisition is not necessary, excessive or not justified, the State
Purchasing Director shall deny the requisition.

3. The provisions of the Oklahoma Central Purchasing Act shall
not preclude a state agency from:

a. accepting gifts or donations in any manner authorized
by law, or

b. making an acquisition for itself without submitting a
requisition under this section when authorized in
writing by the State Purchasing Director.

4. Any acquisition a state agency makes shall be made pursuant
to the Oklahoma Central Purchasing Act and associated rules. No
agency shall use split purchasing for the purpose of evading the
requirement of competitive bidding or other requirement of the
Oklahoma Central Purchasing Act or associated rules. Violation of
this provision shall be cause for discipline of a state employee up
to and including termination.

5. The State Purchasing Director may waive or increase the
limit authorized for a state agency acquisition made pursuant to its
own competitive procedures. To perfect an otherwise valid
acquisition inadvertently exceeding the limit due to administrative
error by a state agency or unforeseeable circumstances, the state
agency shall request a limited waiver or increase upon the discovery
of the error or circumstance to the State Purchasing Director. The
State Purchasing Director shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
report requests for waivers or increases, stating the amount and
whether the request was granted or denied, upon request by the
Governor, President Pro Tempore of the Senate, or Speaker of the
House of Representatives.

6. Competitive bidding requirements of this section shall not
be required for the following:

a. contracts for master custodian banks or trust
companies, investment managers, investment
consultants, and actuaries for the state retirement

ENR. S. B. NO. 1877 Page 662
systems, and Oklahoma Employees Insurance and Benefits
Board, pension fund management consultants of the
Oklahoma State Pension Commission and the
Commissioners of the Land Office, examiners, experts,
or consultants for the Insurance Department whose job
duties are tied to Market Conduct Exams, Financial
Exams, and Insurance Business Transfers, financial
institutions to act as depositories, and managers of
the Oklahoma College Savings Plan accounts and other
professional services as defined in Section 803 of
Title 18 of the Oklahoma Statutes. When requested by
the Oklahoma Employees Insurance and Benefits Board or
the governing board of a state retirement system
authorized to hire investment managers, the Purchasing
Division shall assist in the process of selecting
investment managers,

b. a state agency making such an acquisition shall notify
the State Purchasing Director within fifteen (15) days
following completion of the acquisition. A list of
the exempt contracts shall be electronically provided,
upon request, to a member of the Appropriations and
Budget Committee of the House of Representatives or
Appropriations Committee of the Senate utilizing the
centralized filing system provided for in Section 378
of this act,

c. purchases of postage by state agencies made pursuant
to Sections 90.1 through 90.4 of this title,

d. a sole source acquisition made in compliance with
Section 85.44D.1 of this title,

e. an acquisition for design, development, communication
or implementation of the state employees flexible
benefits plan; provided, procedures used for the
acquisition are consistent with competitive bid
requirements of the Oklahoma Central Purchasing Act
and associated rules,

f. any acquisition of a service which the Office of
Management and Enterprise Services has approved as

ENR. S. B. NO. 1877 Page 663
qualifying for a fixed and uniform rate, subject to
the following:

(1) the Purchasing Division shall establish criteria
and guidelines for those services which may
qualify for a fixed and uniform rate,

(2) fixed and uniform rate contracts authorized by
this subsection shall be limited to contracts for
those services furnished to persons directly
benefiting from such services and shall not be
used by a state agency to employ consultants or
to make other acquisitions,

(3) any state agency desiring to have a service
qualified for a fixed and uniform rate shall make
a request for service qualification to the State
Purchasing Director and submit documentation to
support the request. The State Purchasing
Director shall approve or deny the request. If
approved, the state agency shall establish a
fixed and uniform rate for the service. No
contracts shall be entered into by the state
agency until the rate has been approved by the
state agency in a public hearing. The proposed
rate shall be clearly and separately identified
in the agenda of the state agency for the hearing
and shall be openly and separately discussed
during such hearing. The state agency shall
notify the State Purchasing Director of its
pending consideration of the proposed rate at
least thirty (30) days before the state agency is
to meet on the proposed rate and deliver a copy
of the agenda items concerning the proposed rate
with supporting documentation. The State
Purchasing Director shall communicate any
observation, reservation, criticism, or
recommendation to the agency, either in person at
the time of the hearing or in writing delivered
to the state agency before or at the time of the
hearing. The State Purchasing Director shall
specifically note in the written communications

ENR. S. B. NO. 1877 Page 664
whether the Director has determined the rate to
be excessive. Any written communication
presented in the absence of the State Purchasing
Director shall be presented orally during the
public hearing. Whether made in person or in
writing, any comment made by the State Purchasing
Director shall be made a part of the minutes of
the hearing in full,

(4) within two (2) weeks after the convening of the
Legislature, the administrative officer of the
state agency shall furnish to the Speaker of the
House of Representatives, the President Pro
Tempore of the Senate and to any member of the
House or Senate, if requested by the member, a
complete list of all of the types of services
paid for by uniform fixed rates, the amount of
the rate last approved by the agency for the
service and the number of contracts then in
existence for each type of service. Any rate
which has been determined to be excessive by the
State Purchasing Director shall be specifically
identified in the list by the state agency, and

(5) at any time, the State Purchasing Director may
review, suspend, or terminate a contract entered
into pursuant to the provisions of this paragraph
if the Director determines the contract is not
necessary, is excessive or is not justified,

g. an acquisition for a client of the State Department of
Rehabilitation Services; provided, the agency develops
and maintains standards for such an acquisition. The
agency may elect to utilize the Purchasing Division
for an acquisition. The standards shall foster
economy, provide a short response time, include
appropriate safeguards, require written records,
ensure appropriate competition for economical and
efficient purchasing and shall be approved by the
State Purchasing Director,

ENR. S. B. NO. 1877 Page 665
h. structured settlement agreements entered into by the
Attorney General’s office in order to settle any
lawsuit involving the state, the Legislature, any
state agency or any employee or official of the state
if:

(1) prior to entering into any contract for the
services of an entity to administer a structured
settlement agreement, the Attorney General
receives proposals from at least three entities
engaged in providing such services, and

(2) the selection of a particular entity is made on
the basis of the response to the request which is
the most economical and provides the most
competent service which furthers the best
interests of the state,

i. an acquisition by a state agency pursuant to a
contract the State Purchasing Director enters into on
behalf of a state agency or awards and designates for
use by state agencies,

j. an acquisition by the Committee for Sustaining
Oklahoma’s Energy Resources pursuant to a contract
with a local supplier for the purpose of holding a
special event or an exhibition throughout the state,
and

k. contracts for the study, analysis, and planning, as
reasonably necessary, to aid in determining the
feasibility of leasing, selling, or privately managing
or developing the property or facilities under control
of the Oklahoma Tourism and Recreation Commission.
The Commission shall be exempt from the competitive
bidding requirements of the Oklahoma Central
Purchasing Act for the purpose of soliciting,
negotiating, and effectuating such a contract or
contracts; provided, that the State Purchasing
Director shall review and audit all uses of the
exemptions provided in this subparagraph biannually.

ENR. S. B. NO. 1877 Page 666
7. Notwithstanding any other provision of law, an acquisition
may be exempted from requirements of this section by the State
Purchasing Director when in the State Purchasing Director’s
discretion unusual, time-sensitive or unique circumstances exist
which make such exemption in the best and immediate interest of the
state. As used in this subsection, “State Purchasing Director”
shall not mean a designee. Any such acquisitions shall be described
in detail and publicly posted as a data feed. The description shall
include the name of the supplier, cost of the acquisition, reason
for exemption and, as applicable, detailed comparison of the
acquisition with comparable items, any identified cost savings
resulting from the acquisition and a description of benefits to the
state. The State Purchasing Director shall take no action under the
provisions of this subsection prior to such public posting.

B. Competitively bid acquisitions shall be awarded to the
lowest and best, or best value, bidder, or bidders.

C. Bids for an amount requiring submission of requisitions to
the Purchasing Division shall be evaluated by the Purchasing
Division and the state agency receiving the acquisition. At a
minimum, cost and technical expertise shall be considered in
determining the lowest and best, or best value, bid. Further, the
state agency shall present its evaluation and recommendation to the
State Purchasing Director. A documented evaluation report
containing the evaluations of the Purchasing Division or the state
agency shall be completed prior to the contract award and such
report shall be a matter of public record.

D. Except as otherwise specifically provided by law, the
acquisition of food items or food products by a state agency from a
public trust created pursuant to Sections 176 through 180.56 of
Title 60 of the Oklahoma Statutes shall comply with competitive
bidding requirements of this section.

E. Cooperative contracts shall not be utilized unless the
purchasing cooperative and its affiliated suppliers have complied
with competitive bid requirements of the Oklahoma Central Purchasing
Act and associated rules.

F. Notwithstanding any provision of the Oklahoma Central
Purchasing Act, in all cases where federal granted funds are

ENR. S. B. NO. 1877 Page 667
involved, the federal laws, rules and regulations thereto shall
govern to the extent necessary to inure to the benefit of such funds
to this state.

G. A court order requiring an acquisition by a state agency,
whether or not such state agency is subject to the Oklahoma Central
Purchasing Act, shall not invalidate competitive bidding procedures
required by this section if such court order does not specify a
specific supplier. Any such acquisition shall comply with
competitive bid procedures.

SECTION 308. AMENDATORY 74 O.S. 2021, Section 85.43, is
amended to read as follows:

Section 85.43. A. Each chief administrative officer of a state
agency shall submit to the State Purchasing Director by November 1
of each year a report listing all acquisitions exceeding the
agency’s acquisition threshold amount for the preceding fiscal year
and identify the following:

1. Professional services contracts;

2. Nonprofessional services contracts;

3. Sole source and sole brand acquisitions; and

4. Contracts for the leasing of personal property other than a
lease acquisition utilizing a statewide contract.

B. The report shall contain:

1. The name of the supplier;

2. A description of each acquisition;

3. The purchase price of the acquisition; and

4. The total amount expended to date for the preceding fiscal
year for the acquisition.

C. The state agency shall additionally submit the report to the
State Auditor and Inspector and, upon request, electronically submit

ENR. S. B. NO. 1877 Page 668
such report to any member of the Appropriations and Budget Committee
of the House of Representatives or Appropriations Committee of the
Senate utilizing the centralized filing system provided for in
Section 378 of this act.

D. The State Auditor and Inspector shall review the report for
compliance with statutes and rules or other provisions of law
applicable to sole source and sole brand acquisitions.

SECTION 309. AMENDATORY 74 O.S. 2021, Section 85.44D.1,
is amended to read as follows:

Section 85.44D.1. A. 1. A sole source acquisition is exempt
from competitive bidding procedures as a sole source or requirements
of this act, but a sole brand acquisition is subject to such
competitive bidding requirements.

2. For each sole source or sole brand acquisition, the state
agency shall retain in the state agency’s acquisition file and
attach to the requisition, a certification signed by the chief
administrative officer of the state agency, in the following form:

SOLE SOURCE OR SOLE BRAND ACQUISITION

CERTIFICATION

STATE AGENCY ________________________

SUPPLIER NAME ________________________

SUPPLIER ADDRESS ________________________

SUPPLIER CONTACT INFORMATION ________________________

In connection with the attached requisition or contract, I
hereby affirm that

(Name of Supplier)

is the only business entity singularly qualified to provide the
acquisition, or is the only brand satisfying the acquisition
requirements, for the following reasons:

ENR. S. B. NO. 1877 Page 669

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________

The following is a brief description of all efforts made to
verify that the acquisition qualifies as a sole source or sole brand
acquisition:

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________

______________________________________________________

I understand that the signing of this certification knowing such
information to be false may result in forfeiture of my position and
ineligibility for appointment to or employment in state service for
a period of five (5) years following forfeiture of position.

_____________________________

(Chief administrative officer)

3. A court order requiring a particular acquisition, but which
does not specify a brand or supplier shall not substitute for the
certification required by this section or otherwise invalidate
acquisition procedures required by the Oklahoma Central Purchasing
Act.

4. Upon a determination by the Director of the Office of
Management and Enterprise Services that there are reasonable grounds

ENR. S. B. NO. 1877 Page 670
to believe that a violation of this section has occurred, the
Director shall send findings to the Attorney General that support
the determination. The Attorney General shall review the findings
and determine whether to investigate or prosecute the person.

5. Prior to approving a requisition for a sole source or sole
brand acquisition, the Purchasing Division shall require the signed
certification documenting the need for a sole source or sole brand
acquisition and shall retain the certification in accordance with
state record retention requirements.

6. For a sole source or sole brand acquisitions exceeding the
fair and reasonable acquisition threshold amount and not requiring
submission of a requisition to the Purchasing Division, the state
agency’s certified procurement officer shall retain, in the
acquisition file, the signed certification documenting the need for
the sole source or sole brand acquisition in accordance with state
record retention requirements.

B. By the fifteenth day of each month, or the first working day
thereafter, the Office of Management and Enterprise Services shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically provide a report to:

1. The Speaker of the House of Representatives and the
President Pro Tempore of the Senate; and

2. Any member of the Legislature requesting the report.

The report shall detail sole source and sole brand acquisitions
by state agencies for the month prior to the month preceding the
submission of the report. The report shall be titled “Monthly Sole
Source and Sole Brand Contracting Report of Oklahoma State Agencies”
and indicate the time period of the report. The report shall be
provided by the Director of the Office of Management and Enterprise
Services or the Director’s designee. The report shall be in
columnar database format and shall include at least the following
fields of information: state agency number; state agency name; date
created by the Office of Management and Enterprise Services for the
requisition; date of either approval or disapproval of the
requisition; if disapproved, the reason why such contract
requisition was disapproved; estimated amount of the requisition

ENR. S. B. NO. 1877 Page 671
acquisition; purchase order amount; purchase order number; actual
business name of supplier; supplier federal employer identification
number; and the commodity classification listing at the appropriate
level to distinguish between similar acquisitions. Information
required by this subsection shall be reported and maintained on each
report through the next reporting period after an acquisition is
made. The applicable data in the fields of information specified in
this subsection shall be listed even if the state agency requisition
is disapproved.

SECTION 310. AMENDATORY 74 O.S. 2021, Section 85.45f, is
amended to read as follows:

Section 85.45f. On or before July 15 of each year, the State
Purchasing Director shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit a
report to the Governor, the Speaker of the House of Representatives,
and the President Pro Tempore of the Senate on the status of the
percentile of state funds expended on contracts awarded to minority
business in the preceding fiscal year and provide any report,
statistic or information concerning the compliance of the Office of
Management and Enterprise Services with the Oklahoma Minority
Business Enterprise Assistance Act.

SECTION 311. AMENDATORY 74 O.S. 2021, Section 85.45j.11,
is amended to read as follows:

Section 85.45j.11. A. There is hereby created the “Oklahoma
Supplier Diversity Initiative”, which shall be a state-sponsored
supplier diversity program to provide a resource for state agencies
and private businesses to utilize diverse firms in procurement
opportunities to encourage growth in the economy of the state. The
program shall provide convenience for qualified and certified small
business enterprises and minority business enterprises in
contracting projects in underserved areas.

B. The program shall allow diverse business enterprises to
register with the Office of Management and Enterprise Services and
allow registered vendors to be automatically notified of
opportunities to do business with the state for specific
commodities. The program shall provide for simplified vendor
registration processes.

ENR. S. B. NO. 1877 Page 672

C. The program shall authorize the Oklahoma Department of
Commerce to develop a diversity certification program to qualify and
certify diverse business enterprises for the state.

D. To qualify for the program, businesses shall have less than
five hundred total employees, an annual revenue equal to or less
than Twenty-five Million Dollars ($25,000,000.00), and be certified
as one of the following:

1. An Oklahoma Department of Transportation Disadvantaged
Business Enterprise;

2. Any of the following entities certified by the United States
Small Business Administration:

a. Woman-Owned Small Business,

b. Minority-Business Enterprise,

c. Small Disadvantaged Business,

d. Service-disabled Veteran-Owned Small Business,

e. HUBZone Small Business Concern, and

f. 8(a) Business Development Program;

3. A Native American-owned Business; or

4. A Veteran-owned Business.

E. The Central Purchasing Division of the Office of Management
and Enterprise Services shall:

1. Amend the vendor registration process to require diversity
certification check off and size standard information; and

2. Create a search tool for all state agencies and public or
private entities to utilize to obtain contact information for
diverse firms for the purpose of promoting procurement opportunities
within the state.

ENR. S. B. NO. 1877 Page 673

F. On or before September 1 of each year, the State Purchasing
Director shall, utilizing the centralized filing system provided for
in Section 378 of this act, electronically submit a report to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate on the status of the percentile
of state funds expended on contracts awarded to a certified Oklahoma
Department of Transportation Disadvantaged Business Enterprise and
all of the entities certified by the United States Small Business
Administration mentioned in subsection D of this section in the
preceding fiscal year. The report may include related economic
impacts when applicable. The report, statistics, or other
information concerning the participation in the program shall be
retained by the Office of Management and Enterprise Services.

G. The Oklahoma Department of Commerce shall promulgate rules
to create and administer the Oklahoma Supplier Diversity Initiative.

SECTION 312. AMENDATORY 74 O.S. 2021, Section 150.5, is
amended to read as follows:

Section 150.5. A. 1. Oklahoma State Bureau of Investigation
investigations not covered under Section 150.2 of this title shall
be initiated at the request of the following persons:

a. the Governor,

b. the Attorney General,

c. the Council on Judicial Complaints upon a vote by a
majority of the Council,

d. the chair of any Legislative Investigating Committee
which has been granted subpoena powers by resolution,
upon authorization by a vote of the majority of the
Committee,

e. the Director of the Department of Human Services, or
designee, as authorized by Section 1-2-105 of Title
10A of the Oklahoma Statutes, or

ENR. S. B. NO. 1877 Page 674
f. a district court judge as authorized by Section 1-2-
103 of Title 10A of the Oklahoma Statutes.

2. Requests for investigations shall be submitted in writing
and shall contain specific allegations of wrongdoing under the laws
of the State of Oklahoma.

B. The Governor may initiate special background investigations
with the written consent of the person who is the subject of the
investigation.

C. The chair of any Senate committee which is fulfilling the
statutory responsibility for approving nominations made by the
Governor may, upon a vote by a majority of the committee and with
the written consent of the person who is to be the subject of the
investigation, initiate a special background investigation of any
nominee for the Oklahoma Horse Racing Commission as established by
Section 201 of Title 3A of the Oklahoma Statutes or any nominee for
the Board of Trustees of the Oklahoma Lottery Commission as
established by Section 704 of Title 3A of the Oklahoma Statutes.
The Bureau shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit a report to
the committee within thirty (30) days of the receipt of the request.
Any consideration by the committee of a report from the Bureau shall
be for the exclusive use of the committee and shall be considered
only in executive session.

D. 1. All records relating to any investigation being
conducted by the Bureau, including any records of laboratory
services provided to law enforcement agencies pursuant to paragraph
1 of Section 150.2 of this title, shall be confidential and shall
not be open to the public or to the Commission except as provided in
Section 150.4 of this title; provided, however, officers and agents
of the Bureau may disclose, at the discretion of the Director, such
investigative information to:

a. officers and agents of federal, state, county, or
municipal law enforcement agencies and to district
attorneys, in the furtherance of criminal
investigations within their respective jurisdictions,

ENR. S. B. NO. 1877 Page 675
b. employees of the Department of Human Services in the
furtherance of child abuse investigations, and

c. appropriate accreditation bodies for the purposes of
the Bureau’s obtaining or maintaining accreditation.

2. Any unauthorized disclosure of any information contained in
the confidential files of the Bureau shall be a misdemeanor. The
person or entity authorized to initiate investigations in this
section, and the Attorney General in the case of investigations
initiated by the Insurance Commissioner, shall receive a report of
the results of the requested investigation. The person or entity
requesting the investigation may give that information only to the
appropriate prosecutorial officer or agency having statutory
authority in the matter if that action appears proper from the
information contained in the report, and shall not reveal or give
such information to any other person or agency. Violation hereof
shall be deemed willful neglect of duty and shall be grounds for
removal from office.

E. It shall not be a violation of this section to reveal
otherwise confidential information to outside agencies or
individuals who are providing interpreter services, questioned
document analysis, laboratory services, or other specialized
services that are necessary in the assistance of Bureau
investigations. Individuals or agencies receiving the confidential
and investigative information or records or results of laboratory
services provided to the Bureau by those agencies or individuals,
shall be subject to the confidentiality provisions and requirements
established in subsection D of this section.

F. It shall not be a violation of this section to reveal for
training or educational purposes otherwise confidential information
from records relating to any investigation previously conducted by
the Bureau, including any records of laboratory services provided to
law enforcement agencies pursuant to paragraph 1 of Section 150.2 of
this title, so long as ten (10) or more years have passed since the
production of the information or record.

G. It shall not be a violation of this section to reveal
otherwise confidential information from records relating to any
investigation being conducted by the Bureau, including any records

ENR. S. B. NO. 1877 Page 676
of laboratory services provided to law enforcement agencies pursuant
to paragraph 1 of Section 150.2 of this title or to the public,
provided, release of the confidential information has been
authorized by the Director of the Bureau for the purposes of
developing or obtaining further information reasonably necessary to
the successful conclusion of a criminal investigation being
conducted by the Bureau or authorized by the Director of the Bureau
for the purpose of advising crime victims or family representatives
of homicide victims regarding the status of a pending investigation.

H. The State Treasurer shall initiate a complete background
investigation of the positions with the written consent of the
persons who are the subject of the investigation pursuant to
subsection I of Section 71.1 of Title 62 of the Oklahoma Statutes.
The Bureau shall advise the State Treasurer and the Cash Management
and Investment Oversight Commission in writing of the results of the
investigation.

SECTION 313. AMENDATORY 74 O.S. 2021, Section 150.38, is
amended to read as follows:

Section 150.38. A. Subject to the availability of funds, there
is hereby established within the Oklahoma State Bureau of
Investigation the Child Abuse Response Team (CART) for the purpose
of investigating cases of physical and sexual abuse of a child. For
the purpose of implementing CART, the Bureau shall employ at least
eight Law Enforcement Special Agents assigned to the CART, which
shall be full-time-equivalent positions within the Bureau. The
previously unclassified positions of CART investigator and CART
forensic interviewer shall be transferred to and placed in the
classified service without a loss in salary.

B. In addition to any other law or rule specifying requirements
or qualifications for an OSBI agent to be employed by the Bureau,
the Child Abuse Response Team employees shall be qualified for the
respective positions as follows:

1. Every CART Agent shall:

a. have at least three (3) years of experience as a
criminal investigator in a law enforcement agency or
agencies,

ENR. S. B. NO. 1877 Page 677

b. be currently certified as a peace officer by the
Council on Law Enforcement Education and Training
(CLEET),

c. have served as the primary criminal investigative
officer in a law enforcement agency or agencies on
cases of physical or sexual abuse of a child,

d. have graduated from an accredited college or
university with a bachelor degree,

e. have experience in conducting forensic interviews of
children in cases of physical or sexual abuse of a
child,

f. have experience testifying in cases of physical or
sexual abuse of a child, and

g. have completed at least one hundred (100) hours of
education or training on forensic interviewing of a
child.

2. If the director of the Oklahoma State Bureau of
Investigation is unable to find a person whose qualifications meet
or exceed the qualifications specified for the position of Law
Enforcement Special Agent assigned to the CART, the director is
authorized to offer such position to a person whose qualifications
substantially meet the qualifications specified for the position.

C. The Bureau may promulgate rules, procedures and forms
necessary to establish and implement the functions of the Child
Abuse Response Team and to coordinate responsibilities with other
persons or agencies having responsibilities relating to child abuse
investigation and response to child abuse. Members of the Child
Abuse Response Team are authorized, when available, to be involved
and utilized in investigations of crimes other than cases of
physical and sexual abuse of a child.

D. On or before July 1, 2015, the Bureau shall submit to the
Governor, President Pro Tempore of the Senate, and Speaker of the

ENR. S. B. NO. 1877 Page 678
House of Representatives a statistical report regarding the
activities of the CART.

SECTION 314. AMENDATORY 74 O.S. 2021, Section 212, as
amended by Section 1, Chapter 93, O.S.L. 2022 (74 O.S. Supp. 2025,
Section 212), is amended to read as follows:

Section 212. A. STATE TREASURER AND OKLAHOMA TAX COMMISSION

1. The State Treasurer shall prepare annual financial
statements in accordance with the reporting requirements set forth
by the Governmental Accounting Standards Board (GASB). The State
Treasurer shall prescribe and implement sound internal control,
accounting and recordkeeping practices consistent with and to
facilitate compliance with all reporting requirements as set forth
by law.

2. The annual financial statements of the State Treasurer shall
be delivered by the State Treasurer to the State Auditor and
Inspector within ninety (90) calendar days after the close of the
state fiscal year.

3. The State Auditor and Inspector shall perform an audit of
the annual financial statements of the State Treasurer for each
state fiscal year. Such audits shall be conducted in accordance
with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government
Auditing Standards, latest revised edition, issued by the
Comptroller General of the United States. The State Auditor and
Inspector shall complete the audits not later than ninety (90)
calendar days after the financial statements are delivered to the
State Auditor and Inspector. The annual audit reports and related
financial statements shall be electronically delivered by the State
Auditor and Inspector to the Governor, President Pro Tempore of the
Senate, and Speaker of the House of Representatives utilizing the
centralized filing system provided for in Section 378 of this act.
The annual audit report and related financial statements of the
State Treasurer shall also be delivered to the Attorney General and
the members of the Cash Management and Investment Oversight
Commission created by Section 71.1 of Title 62 of the Oklahoma
Statutes. The State Auditor and Inspector shall conduct unannounced
cash audits of the State Treasury at least once each quarter.

ENR. S. B. NO. 1877 Page 679

4. The audit of the Tax Commission shall be an operational
audit performed annually. To the extent of the amount included in
the Tax Commission’s appropriation, the Tax Commission shall pay the
expenses of the audit including personal services, equipment and
supplies, from the appropriation.

B. STATE AGENCIES

1. Except as otherwise provided by law, the State Auditor and
Inspector shall audit at least once every two (2) fiscal years the
books and accounts of all state agencies whose duty it is to
collect, disburse or manage funds of the state. The State Auditor
and Inspector shall audit a state agency each fiscal year if that
state agency is required to be audited on an annual basis pursuant
to the federal Single Audit Act of 1984, as amended, 31 U.S.C.,
Section 7501 et seq. If the state agency is audited only once every
two (2) fiscal years, the audit shall cover both fiscal years.

2. Except as otherwise provided by law, the scope of audits
performed by the State Auditor and Inspector shall include all funds
collected, disbursed, or managed by a state agency including, but
not limited to, all special, revolving, depository, canteen, or
other nonstate funds.

3. As used in this section, “state agency” means every agency,
board, or commission included in the primary government of the State
of Oklahoma. For purposes of this paragraph, the primary government
of the State of Oklahoma includes all agencies, boards, and
commissions included in the primary government in the State of
Oklahoma Comprehensive Annual Financial Report. The agencies,
boards, and commissions included in the primary government of the
State of Oklahoma shall be determined using criteria set by the
Governmental Accounting Standards Board.

4. As used in this subsection, “audit” means any of the
following:

a. “financial audit”, which means an audit of financial
statements in order to express an opinion on the
fairness with which they are presented in conformity
with generally accepted accounting principles or any

ENR. S. B. NO. 1877 Page 680
other comprehensive basis of accounting, as defined by
the American Institute of Certified Public
Accountants’ Professional Standards, latest revised
edition. Financial audits must shall be conducted in
accordance with auditing standards generally accepted
in the United States and the standards applicable to
financial audits contained in Government Auditing
Standards, latest revised edition, issued by the
Comptroller General of the United States,

b. “operational audit”, which means an audit conducted in
accordance with applicable Government Auditing
Standards, the purpose of which is to evaluate
management’s performance in administering assigned
responsibilities in accordance with applicable laws,
administrative rules, and other policies and
guidelines and to determine the extent to which the
internal control, as designed and placed in operation,
promotes and encourages the achievement of
management’s control objectives in the categories of
compliance, reliability of financial records and
reports, and safeguarding of assets,

c. “performance audit”, which means an audit of a
program, activity, or function of a state agency
conducted in accordance with applicable Government
Auditing Standards. The term includes, but is not
limited to, an audit to assess program, activity, or
function effectiveness, economy and efficiency,
internal control, or compliance,

d. “special or investigative audit”, which means an audit
with respect to a particular situation which may be,
but is not required to be, conducted in accordance
with applicable Government Auditing Standards,

e. any other type of engagement conducted in accordance
with Government Auditing Standards, and

f. engagements not conducted in accordance with
Government Auditing Standards, when engagements

ENR. S. B. NO. 1877 Page 681
involve state agencies that collect less than Three
Million Dollars ($3,000,000.00) annually.

C. GUBERNATORIAL REQUEST

Whenever called upon to do so by the Governor, it shall be the
duty of the State Auditor and Inspector to examine the books and
accounts of any officer of the state or any of the officer’s
predecessors. The cost of the audit shall be borne by the entity to
be audited.

D. COUNTY TREASURER

The State Auditor and Inspector shall examine without notice all
books and accounts of each county treasurer of the state twice each
year.

E. DISTRICT ATTORNEYS

1. The State Auditor and Inspector shall annually audit the
books and accounts of the several offices of the district attorneys
of this state. The audits shall be reported in separate reports for
each entity. The audit may include, but shall not be limited to,
the audit of the financial records, performance measures, and
compliance with state or federal statutes and rules, and compliance
with any regulations of state or federal programs. The expense of
the audits shall be paid by the entity audited.

2. The State Auditor and Inspector shall examine and file a
report of the accounts established within the office of each
district attorney for bogus check programs, drug task force
programs, child support collection programs, and any other programs
receiving any nonstate funds. The reports shall be filed with the
President Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the Executive Coordinator of the District
Attorneys Council.

F. DEPARTMENT OF CORRECTIONS

The State Auditor and Inspector shall perform an annual audit,
as defined in paragraph 4 of subsection B of this section, of the
books and accounts of the Department of Corrections. The scope of

ENR. S. B. NO. 1877 Page 682
the audit shall be determined by the State Auditor and Inspector
using a risk-based approach. The audit may include, but shall not
be limited to, the audit of the financial records, performance
measures, and compliance with any state or federal statutes and
rules, and compliance with any regulations of state or federal
programs. The expense of the audits shall be paid by the Department
of Corrections.

G. OKLAHOMA EMPLOYEES INSURANCE AND BENEFITS BOARD

The State Auditor and Inspector shall cause to be audited the
books and accounts of the office of the Oklahoma Employees Insurance
and Benefits Board. The audit may include, but shall not be limited
to, the audit of the financial records, performance measures,
compliance with any state or federal statutes and rules, and
compliance with any regulations of state programs. The audit shall
be contracted out to private audit firms. The cost of the audit
shall be borne by the Oklahoma Employees Insurance and Benefits
Board.

H. DISTRICT ATTORNEY REQUEST

Whenever called upon to do so by any of the several district
attorneys of the state, it shall be the duty of the State Auditor
and Inspector to examine the books and accounts of any officer of
any public entity. The cost of the audit shall be borne by the
entity audited.

I. COUNTY OFFICERS BY REQUEST

Upon request of the county commissioners of any county or the
Governor, the State Auditor and Inspector shall examine the books
and accounts of all or any of the officers or custodians of the
various funds of the county; and payment for such examination shall
be made by the county so examined.

J. AUDITORS

The State Auditor and Inspector shall have power to employ
auditors. No auditor shall examine the books or records of the
county of the auditor’s residence in counties of under two hundred
thousand (200,000) population according to the most recent Federal

ENR. S. B. NO. 1877 Page 683
Decennial Census. The State Auditor and Inspector may employ on an
as-needed basis only, legal counsel to carry out the statutory
duties of the Office of the State Auditor and Inspector.

K. EXAMINATION OF LEVIES

It shall be the duty of the State Auditor and Inspector to
examine all levies to raise public revenue to see that they are made
according to law and constitutional provisions. The State Auditor
and Inspector shall have the power to order all excessive or
erroneous lines (levies) to be corrected by the proper officers, and
shall report any irregularities to the Governor, the Speaker of the
House of Representatives and the President Pro Tempore of the
Senate.

L. PETITION AUDITS

1. The State Auditor and Inspector shall audit the books and
records of any subdivision of the State of Oklahoma upon petition
signed by the requisite number of voters registered in the
subdivision and meeting the requirements set out in this subsection.

2. The petition must shall contain the number of signatures
equivalent to ten percent (10%) of the registered voters of the
subdivision as determined by the county election board or, if the
county election board determines that the number of registered
voters in the subdivision cannot be determined due to boundary lines
not conforming to precinct lines, the required number of petitioners
shall be twenty-five percent (25%) of the total number of persons
voting in the last general election. If the subdivision is a public
trust, the required number of petitioners shall be the same as those
required for an audit of its beneficiary. The appropriate county
election board shall provide the number of signatures so required
upon request.

3. The petition shall be in the form of an affidavit wherein
the signatory shall declare upon oath or affirmation that the
information given is true and correct and that he or she is a
citizen of the entity to be audited. The petition shall clearly
state that falsely signing shall constitute perjury. It shall
include the signature of the individual, the name of the signatory
in printed form, the individual’s residential address, the date of

ENR. S. B. NO. 1877 Page 684
signing, the public entity to be audited and the anticipated range
of the cost of the audit provided by the State Auditor and
Inspector.

4. Any person desiring to petition for an audit shall list the
areas, items or concerns they want to be audited, and request from
the State Auditor and Inspector the anticipated range of cost of the
audit. Within thirty (30) days from the receipt of the request, the
State Auditor and Inspector shall mail a petition form to the person
requesting the information which shall state the anticipated range
of the cost and the items or concerns to be audited. The
circulators of the petition shall have thirty (30) days from the
date the petition is mailed by the State Auditor and Inspector to
obtain the requisite number of signatures and return it to the State
Auditor and Inspector.

5. Upon collection of the required number of signatures, the
person desiring the audit shall present the signed petitions to the
State Auditor and Inspector. Within thirty (30) days of receipt of
the petitions, the State Auditor and Inspector shall present the
petitions to the county election board located in the county in
which the subdivision is located.

6. The county election board shall determine whether the
signers of the petition are registered voters of the county in which
the subdivision to be audited is located and whether the petition
has the requisite number of signatures of such registered voters.
The county election board shall certify the petition as having the
required number of signatures or as failing to have the required
number of signatures and return it to the State Auditor and
Inspector.

7. The cost of the audit shall be borne by the public entity
audited. Upon notification by the State Auditor and Inspector of
receipt of the petition, certified by the county election board as
having the required number of signatures, the public entity shall
encumber funds in an amount specified by the State Auditor and
Inspector, which shall be within the range of anticipated cost
stated on the petition from any funds not otherwise specifically
appropriated or allocated. Payment for the audit from such
encumbered funds shall be made as work progresses, and final payment
shall be made on or before its publication.

ENR. S. B. NO. 1877 Page 685

8. The names of the signers of any petition shall be
confidential and neither the State Auditor and Inspector, the county
election board nor the county treasurer may release them to any
other person or entity except upon an order from a court of
competent jurisdiction.

M. PENALTIES FOR NONPAYMENT

Except as otherwise provided by law, the cost of any services
provided by the State Auditor and Inspector or as specified in an
audit contract shall be borne by the entity or fund audited and
shall be due and payable upon receipt of progress billing during the
course of an audit. Any such costs not paid within ninety (90) days
of the date of receipt of billing shall incur a penalty of Ten
Dollars ($10.00) per day for each day from the date of receipt of
billing.

SECTION 315. AMENDATORY 74 O.S. 2021, Section 213.2, is
amended to read as follows:

Section 213.2. A. There is hereby created in the Office of the
State Auditor and Inspector a Performance Audit Division, subject to
the discretion of the State Auditor and Inspector. An Assistant
State Auditor and Inspector may be appointed to direct the
operations of the Division, subject to the supervision and control
of the State Auditor and Inspector at all times.

B. The State Auditor and Inspector, deputies and agents of the
Performance Audit Division may examine all books and accounts of all
public officers, institutions and other governmental entities
specified in Sections 212 through 227.9 of this title to instruct
the proper officers thereof in the performance of their duties and
to prescribe cost-effective methods of operating such governmental
entities; provided, however, the State Auditor and Inspector shall
perform the examinations authorized in this subsection upon
receiving a written request to do so by the Governor, the chief
executive officer of a governmental entity or pursuant to a joint or
concurrent resolution of the Legislature. A copy of the examination
shall be given to the examined entity. A copy of any examination
conducted pursuant to this subsection shall be electronically
submitted to the Governor, the Speaker of the House of

ENR. S. B. NO. 1877 Page 686
Representatives, the President Pro Tempore of the Senate, the
appropriations and budget chairs of the House of Representatives and
the Senate, and the Minority Leader of the House of Representatives
and of the Senate utilizing the centralized filing system provided
for in Section 378 of this act.

C. The cost of the examinations authorized pursuant to
subsection B of this section shall be borne by the examined agency
in an amount not to exceed the actual costs of the examination.
Prior to the start of such an examination, the State Auditor and
Inspector shall prepare in writing and present to the affected state
agency an estimate of the cost of the examination. If the estimate
requires revision, the State Auditor and Inspector shall notify the
agency in a prompt manner. Except as otherwise provided, the State
Auditor and Inspector shall recover its costs for the examination
pursuant to monthly progress billings presented by the State Auditor
and Inspector to the Office of Management and Enterprise Services
detailing current monthly costs for each examination. In addition,
the State Auditor and Inspector shall provide a copy of the billing
to the affected state agency. The Office of Management and
Enterprise Services may deduct the amounts billed from the next
subsequent allotment for the corresponding state agency and transfer
the funds to the State Auditor and Inspector Revolving Fund.

D. The salaries and traveling expenses of the Assistant State
Auditor and Inspector, deputies and agents of the Performance Audit
Division and the costs of material, supplies and equipment for the
Division shall be paid from funds made available through
appropriation by the Legislature.

E. The State Auditor and Inspector shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit an annual report of the Performance Audit
Division to the Governor, the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, appropriations and
budget chairs of the House of Representatives and the Senate, and
the Minority Leader of the Senate and of the House of
Representatives.

SECTION 316. AMENDATORY 74 O.S. 2021, Section 214, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 687
Section 214. The State Auditor and Inspector shall prescribe a
uniform system of bookkeeping for the use of all county officials to
afford a suitable check upon their mutual acts and ensure a thorough
inspection, and to ensure the safety of the state and county funds.
He or she shall have full authority to prescribe a system of
bookkeeping for all county officers which shall be in accordance
with generally accepted accounting principles, as applied to
governmental units, except when in conflict with Oklahoma Statutes,
and when necessary instruct or cause to be instructed the state and
county officers in the proper mode of keeping the accounts.
Provided however, when a conflict with Oklahoma Statutes arises
concerning accounting systems for those counties utilizing
electronic data processing, the county may request in writing that
the State Auditor and Inspector approve an alternate accounting
procedure. The State Auditor and Inspector shall have the authority
to approve or disapprove such requests. Annually, the State Auditor
and Inspector shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically provide a
report of those counties requesting alternate accounting systems to
the Speaker of the House of Representatives and the President Pro
Tempore of the Senate. The State Auditor and Inspector shall not
change any accounting systems or procedures during the last year of
his or her term of office that would have an impact on the ability
of any independent licensed public accountant to provide auditing
services to such officers. He or she shall make a thorough
examination of the books, accounts, and vouchers of such officers,
ascertaining in detail the various items of receipts and
expenditures. He or she shall report to the Governor the refusal or
neglect of any state or county officer to obey his or her
instruction. He or she shall make a report of the result of his or
her examination, which shall be filed in the Office of the State
Auditor and Inspector, as well as any failure of duty by any
financial officers, and the Governor may cause the result of such
examination to be published. Provided, that no county officer shall
be required to discard any books or supplies on hand.

SECTION 317. AMENDATORY 74 O.S. 2021, Section 324.2, is
amended to read as follows:

Section 324.2. The Commission shall select a chair. The
Commission is hereby authorized to adopt rules necessary for the
licensure, regulation, and enforcement of the fire extinguishers

ENR. S. B. NO. 1877 Page 688
pursuant to the Fire Extinguisher Licensing Act and for conducting
its proceedings. Any four members shall constitute a quorum. The
Commission shall meet monthly on such date as it may designate and
may meet at such other times as it may deem necessary, or when
called by the chairman or by any four members. Complete minutes of
each meeting shall be kept and filed in the office of the State Fire
Marshal and shall be available for public inspection during
reasonable office hours. The Commission shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically report annually to the Governor and to the Speaker of
the House of Representatives and the President Pro Tempore of the
Senate of the affairs of the Commission and the office of the State
Fire Marshal.

SECTION 318. AMENDATORY 74 O.S. 2021, Section 325.1, is
amended to read as follows:

Section 325.1. A. The Oklahoma Council on Firefighter Training
is hereby abolished and all powers, duties, and responsibilities of
the Oklahoma Council on Firefighter Training shall be transferred to
the Office of the State Fire Marshal. All equipment, vehicles,
records, furniture, and fixtures of the Oklahoma Council on
Firefighter Training shall be turned over to the Office of the State
Fire Marshal by January 1, 2018. Any unexpended balance of the
Oklahoma Council on Firefighter Training’s operational funds as of
January 1, 2018, shall be transferred to the State Fire Marshal
Revolving Fund.

B. There is hereby established within the Office of the State
Fire Marshal, the Firefighter Training Advisory Committee.

C. The Committee shall consist of representatives of the
Oklahoma State Fire Service, with the total number and length of
appointments to be determined by the State Fire Marshal Commission.

D. The Committee shall:

1. Advise and assist the State Fire Marshal Commission in
identifying firefighter training needs and setting the firefighter
training goals for the State of Oklahoma;

ENR. S. B. NO. 1877 Page 689
2. Advise and assist the State Fire Marshal Commission in
interacting with the Homeland Security Department’s Preparedness and
Awareness Division on firefighter training and grants;

3. Advise and assist the State Fire Marshal Commission in
administering and maintaining the incentive and recognition programs
established for Oklahoma firefighters; and

4. Advise and assist the State Fire Marshal Commission in
ensuring that the state has consistent basic and continuing
education programs that include steps for all ranks or positions of
career and volunteer firefighters, by setting minimum standards for
career, recommended levels for volunteer, identifying training
programs and courses required for fire service members to achieve
those levels.

E. The Committee shall assist the State Fire Marshal Commission
in advising the Governor, the Speaker of the House of
Representatives, the President Pro Tempore of the State Senate, and
the Oklahoma State Fire Service on fire and emergency service
training needs for the state. The State Fire Marshal Commission
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit an annual report or
recommendations regarding fire and emergency service training needs
to the Governor, the Speaker of the House of Representatives, and
the President Pro Tempore of the State Senate not later than
December 31 each year.

F. The Committee shall meet at the discretion of the State Fire
Marshal Commission.

SECTION 319. AMENDATORY 74 O.S. 2021, Section 450, is
amended to read as follows:

Section 450. A. The State Legislative Council, the Executive
Committee, and all standing and special committees thereof are
hereby abolished. Except as otherwise provided in this section, all
powers, duties, responsibilities, property, assets, and liabilities
administered by the State Legislative Council for the benefit of the
Oklahoma Legislature shall be transferred to either the Senate or
the House of Representatives as determined by the President Pro

ENR. S. B. NO. 1877 Page 690
Tempore of the Senate and the Speaker of the House of
Representatives acting jointly.

B. All annual reports or other reports required by law to be
submitted to the State Legislative Council, after July 1, 1981,
shall be electronically submitted to the President Pro Tempore of
the Senate and the Speaker of the House of Representatives utilizing
the centralized filing system provided for in Section 378 of this
act.

SECTION 320. AMENDATORY 74 O.S. 2021, Section 452.8, is
amended to read as follows:

Section 452.8. A. The Legislature may hold public hearings on
the proposals submitted by state agencies, boards, and commissions
including those established by statute or Constitution for use of
federal monies.

B. Prior to any public hearing on a proposal by the Joint
Committee on Federal Funds, ten copies of each proposal shall be
electronically filed with the Speaker of the House of
Representatives and the President Pro Tempore of the Senate
utilizing the centralized filing system provided for in Section 378
of this act. Additional complete copies shall be provided to the
Legislature and individuals by the agencies, boards, and commissions
at no charge.

C. The Speaker of the House of Representatives and President
Pro Tempore of the Senate may refer proposals to the Joint Committee
on Federal Funds or other committees of the Legislature for public
hearings. Said committees may take facts and make findings and
recommendations on the proposals regarding the use and distribution
of federal monies as provided by the plans.

D. If a proposal is referred to committees of the Legislature
other than the Joint Committee on Federal Funds, such committees, by
August 1, may make written reports regarding their findings and
recommendations and submit such reports to the Joint Committee on
Federal Funds. Said reports shall include a summary of public
comments received through written or oral testimony during public
hearings if a public hearing had been conducted. Where appropriate,

ENR. S. B. NO. 1877 Page 691
the report may recommend amendments to the proposals for
consideration by the Joint Committee on Federal Funds.

E. The Joint Committee on Federal Funds may hold further public
hearings on the proposals.

SECTION 321. AMENDATORY 74 O.S. 2021, Section 452.10, is
amended to read as follows:

Section 452.10. A. Each state agency shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically furnish copies of financial audits, compliance
audits, and program reviews on its entity to the Office of
Management and Enterprise Services, the State Auditor and Inspector,
and the Legislative Service Bureau.

B. Each state agency shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
furnish copies of all audits performed on its entity to the
Legislature as required by the Legislative Review of State Audits
Act.

C. Copies of audits furnished to the State Auditor and
Inspector shall be furnished in accordance with the provisions of
Section 212A of this title.

SECTION 322. AMENDATORY 74 O.S. 2021, Section 452.13, is
amended to read as follows:

Section 452.13. A. Upon the completion of the audit report,
the agency shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically deliver two copies a
copy of the audit report to the Speaker of the House of
Representatives and two copies of the audit report to, the President
Pro Tempore of the Senate.

B. 1. Upon receipt of any audit report, the Speaker of the
House of Representatives shall submit one copy of the audit report
to, the Chairman Chair of the House Appropriations and Budget
Committee, or successor committee. The President Pro Tempore of the
Senate shall submit one copy of the audit report to, the Chairman
Chair of the Senate Appropriations Committee, or successor

ENR. S. B. NO. 1877 Page 692
committee. The Speaker of the House of Representatives, and the
President Pro Tempore of the Senate shall each send a copy of the
audit report to the appropriate standing committee of the respective
body having oversight of the agency submitting the audit report.

2. Each committee shall review the audit report.

C. B. 1. The members of the legislative committee or any other
member of the Legislature reviewing the audit report shall have
access to all documents and working papers and any agency documents
and records relating to the audit unless specifically precluded by
state or federal law.

2. Any contract or agreement with an auditor to perform an
audit authorized or required by state or federal law or rule shall
contain a provision informing the auditor that all documents,
working papers and records relating to the audit shall be made
available for inspection, upon request, to the legislative committee
or to any other member of the Legislature reviewing the final audit
report unless specifically precluded by state or federal law.

D. C. In reviewing any audit report, or in the performance of
reviewing any supporting documents and working papers relating to
the audit, members of the Legislature shall be subject to the
statutory provisions or other laws or rules regarding the
confidentiality of records of the agency under review.

SECTION 323. AMENDATORY 74 O.S. 2021, Section 452.14, is
amended to read as follows:

Section 452.14. A. Each agency body responsible, pursuant to
law, for governing and administering an agency shall review each
audit report submitted to the Legislature pursuant to Section 4 of
this act and shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically submit a written
agency response regarding the audit pursuant to this section.

B. The written agency response shall include:

1. The name and address of the agency;

ENR. S. B. NO. 1877 Page 693
2. Identification of the audit performed and the name of the
auditor;

3. Any changes implemented or changes proposed to an agency
program, financial operation, management process or other agency
operation as a result of the audit;

4. A plan of action for achieving any recommendation of the
auditor;

5. A statement for each recommendation in the audit report
explaining the reasons for not implementing such recommendation
including, but not limited to, need for statutory changes to
implement additional costs or a showing that the recommended change
would not be a cost benefit to the agency or the state; and

6. Any other information requested by the Speaker of the House
of Representatives or by the President Pro Tempore of the Senate or
by a standing committee reviewing the audit.

C. The written response shall be electronically submitted to
the Speaker of the House of Representatives and the President Pro
Tempore of the Senate within thirty (30) days after the audit report
has been submitted to the Legislature pursuant to Section 4 of this
act 452.13 of this title.

SECTION 324. AMENDATORY 74 O.S. 2021, Section 464, is
amended to read as follows:

Section 464. Whenever any provision of law directs that a
report, an administrative rule, budget work program, budget request,
or any other document be filed with the Governor, President Pro
Tempore of the Senate, or the Speaker of the House of
Representatives, such documents shall be filed electronically,
except as otherwise provided in this section. The Governor,
President Pro Tempore of the Senate, and Speaker of the House of
Representatives shall each create or cause to be created on the
official websites for the Governor, Senate, and House of
Representatives, respectively, a mechanism for such filings to be
made, with an electronic return receipt provided to the person
making the filing. If for any reason the person required to file
such document determines that it cannot be filed electronically, the

ENR. S. B. NO. 1877 Page 694
person shall file a printed copy in lieu of such electronic filing
and shall include an explanation of the reason that the document
could not be filed electronically.

SECTION 325. AMENDATORY 74 O.S. 2021, Section 471, is
amended to read as follows:

Section 471. There is hereby established an advisory committee
to the Legislature of Oklahoma and to the Governor of Oklahoma.
Such committee shall be composed of four (4) members of the Oklahoma
Bar to be appointed by the Governor with the advice of the President
of the Oklahoma Bar Association and two (2) members, at least one of
whom is a member of the House of Representatives, to be appointed by
the Speaker of the House of Representatives and two (2) members, at
least one of whom is a member of the Senate, to be appointed by the
President Pro Tempore of the Senate. Each member shall serve for
four (4) years or until his or her death, resignation, or failure or
refusal, certified by the remaining members, to perform his or her
duties, renders his or her place vacant, whereupon the vacancy shall
be filled in the same manner as the original appointment. In the
event a legislative member fails to retain his seat in his or her
respective house prior to the expiration of his term on the
committee, his or her place on the committee shall be rendered
vacant. The members of such committee, hereafter called
commissioners, shall be the official commissioners of the State of
Oklahoma to the National Conference of Commissioners on Uniform
State Laws. They shall attend the annual meetings of such national
conference. They shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically report
annually to the Legislature and to the Governor concerning the work
of said conference and all other matters relating to their duties.
They shall advise the Legislature and its committees concerning
proposals for uniform and model state laws, the effect which such
proposals would have on the law of this state, and such other
matters as may be pertinent to desirable uniformity in legislation
between this state and other states.

SECTION 326. AMENDATORY 74 O.S. 2021, Section 484, is
amended to read as follows:

Section 484. A. The Advisory Committee on Intergovernmental
Relations shall issue reports of its findings and recommendations

ENR. S. B. NO. 1877 Page 695
from time to time and shall issue an annual report on its work.
Copies of the annual report shall be electronically submitted to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate utilizing the centralized filing
system provided for in Section 378 of this act.

B. The Committee shall report to the Speaker of the House of
Representatives and President Pro Tempore of the Senate on or before
the first day of the 1990 regular session of the Legislature
regarding the work of the Committee. The report shall also make
recommendations as to the continuation of the Committee and any
structural or staffing changes that the Committee deems necessary to
the best interest of the state in the area of improving
intergovernmental relations.

SECTION 327. AMENDATORY 74 O.S. 2021, Section 500.2, as
amended by Section 1, Chapter 63, O.S.L. 2022 (74 O.S. Supp. 2025,
Section 500.2), is amended to read as follows:

Section 500.2. A. Officials and employees of the state,
traveling on authorized state business, may be reimbursed for
expenses incurred in such travel in accordance with the provisions
of the State Travel Reimbursement Act and existing statutes relating
to state travel. Persons who are not state employees, but who are
performing substantial and necessary services to the state which
have been directed or approved by the appropriate department
official, shall enjoy the protection of the sovereign immunity of
the state to the same extent as a paid employee. Such persons may
be reimbursed for expenses incurred during authorized official
travel under these same statutory provisions; provided, it is
indicated on the claim the person is not a state employee, a
description of services performed is entered, and the agency head by
approval of the claim certifies such services were substantial and
necessary, and germane to the duties and functions of the
reimbursing agency. Travel expenses incurred by a person during the
course of seeking employment with a state agency, unless such travel
is performed at the request of the employing agency, shall not be
considered expenses incurred in performing substantial and necessary
services to the state and shall not be reimbursed under the
provisions of the State Travel Reimbursement Act.

ENR. S. B. NO. 1877 Page 696
B. The chief administrative officer of the Department of Public
Safety, the Oklahoma State Bureau of Investigation, the Oklahoma
State Bureau of Narcotics and Dangerous Drugs Control, the Military
Department of the State of Oklahoma, the Department of Corrections,
the Office of Management and Enterprise Services, the Alcoholic
Beverage Laws Enforcement Commission, the Oklahoma Department of
Agriculture, Food, and Forestry, the Oklahoma Department of
Emergency Management, the State Fire Marshal, and the State
Department of Health may arrange for and charge meals and lodging
for a contingent of state personnel moved into an area for the
purpose of preserving the public health, safety, or welfare or for
the protection of life or property. The cost for meals or lodging
so charged shall not exceed the amount authorized in the State
Travel Reimbursement Act. The chief administrative officer of each
agency involved in such an operation shall require the vendor
furnishing meals, lodging, or both meals and lodging to submit an
itemized statement for payment. When a claim for lodging is made
for a contingent of state personnel, individual members of the
contingent may not submit a claim for lodging. When a claim for
meals is made for a contingent of state personnel, individual
members of the contingent may not submit a claim for meals.

C. The Oklahoma Department of Commerce, the Oklahoma Center for
the Advancement of Science and Technology, and the Oklahoma
Department of Agriculture, Food, and Forestry are hereby authorized
to enter into contracts and agreements for the payment of food,
lodging, meeting facility, and beverage expenses as may be necessary
for sponsoring seminars and receptions relating to economic
development and science and technology issues. Such expenses may be
paid directly to the contracting agency or business establishment.
The Director of the Oklahoma Department of Commerce, the President
of the Oklahoma Center for the Advancement of Science and
Technology, and the Commissioner of Agriculture shall, utilizing the
centralized filing system provided for in Section 378 of this act,
each electronically provide a quarterly report of such expenditures
to the Governor, the Speaker of the House of Representatives, and
the President Pro Tempore of the Senate.

D. The Native American Cultural and Educational Authority is
hereby authorized to enter into contracts and agreements for the
payment of food, lodging, and meeting facility as may be necessary
to pursue the promotion of fundraising, marketing, and development

ENR. S. B. NO. 1877 Page 697
of Native American educational programs and cultural projects, or to
sponsor luncheons, seminars, and receptions relating to Native
American educational, cultural, museum, and economic development
issues. Such expenses may be paid directly to the contracting
agency or business establishment. The Executive Director of the
Native American Cultural and Educational Authority shall provide a
monthly report of expenditures to the Native American Cultural and
Educational Authority Board.

E. For purposes of this section:

1. “State agency” means any constitutionally or statutorily
created state board, commission, or department, including the
Legislature and the Courts;

2. State agencies are authorized to enter into contracts and
agreements for the payment of food and lodging expenses as may be
necessary for employees or other persons who are performing
substantial and necessary services to the state by attending
official conferences, meetings, seminars, workshops, or training
sessions or in the performance of their duties. Such expenses may
be paid directly to the contracting agency or business
establishment; provided the meeting qualifies for overnight travel
for the employees and the cost for food and lodging for each
employee shall not exceed the total daily rate as provided in the
State Travel Reimbursement Act;

3. State agencies are authorized to enter into contracts and
agreements for the payment of conference registration expenses as
may be necessary for employees or other persons who are performing
substantial and necessary services to the state by attending
official conferences, meetings, seminars, workshops, or training
sessions. Such expenses may be paid directly to the contracting
agency or business establishment; and

4. State agencies are authorized to enter into contracts and
agreements for the payment of food and lodging expenses as may be
necessary for employees attending an official course of instruction
or training conducted or sponsored by any state agency. Expenses
may be paid directly to the contracting agency or business
establishment. The cost for food and lodging for each employee

ENR. S. B. NO. 1877 Page 698
shall not exceed the total daily rate as provided in the State
Travel Reimbursement Act.

F. State agencies are authorized to make direct purchases of
commercial airline tickets for use by employees in approved out-of-
state travel. Each claim or invoice submitted to the Director of
the Office of Management and Enterprise Services for the payment of
the purchase shall bear the airline identifying ticket number, the
name of the airline, total cost of each ticket purchased, class of
accommodation and name of the employee for whom the ticket was
purchased and shall be filed on claim forms as prescribed by the
Director of the Office of Management and Enterprise Services. The
employee shall sign an affidavit stating that the employee used a
direct purchase commercial airline ticket received for his or her
approved out-of-state travel, or in lieu of the affidavit, the
employee may file a travel claim in connection with said such
airline flight.

G. 1. The Director of the Office of Management and Enterprise
Services is hereby authorized to enter into contracts and agreements
for the payment of food, lodging, and other authorized expenses as
may be necessary to host, conduct, sponsor, or participate in
conferences, meetings, or training sessions. The Director may
establish accounts as necessary for the collection and distribution
of funds, including funds of sponsors and registration fees, related
to such conferences, meetings, and training sessions. Expenses
incurred may be paid directly to the contracting agency or business
establishment.

2. The cost of food for persons attending any conferences,
meetings, and training sessions that do not require overnight travel
shall not exceed the total daily rate as provided in the State
Travel Reimbursement Act.

H. 1. The Commissioner of the Department of Mental Health and
Substance Abuse Services is hereby authorized to enter into
contracts and agreements for the payment of food, lodging, and other
authorized expenses as may be necessary to host, conduct, sponsor,
or participate in conferences, meetings, or training sessions. The
Commissioner may establish accounts as necessary for the collection
and distribution of funds, including funds of sponsors and
registration fees, related to such conferences, meetings, and

ENR. S. B. NO. 1877 Page 699
training sessions. Any expenses incurred may be paid directly to
the contracting agency or business establishment.

2. The cost of food for persons attending any conferences,
meetings, and training sessions that do not require overnight travel
shall not exceed the total daily rate as provided in the State
Travel Reimbursement Act.

I. The Oklahoma Indigent Defense System is hereby authorized to
enter into contracts and agreements for the payment of lodging as
necessary for employees to carry out their duties in representing
any client whom the System has been properly appointed to represent.
Such expenses may be paid directly to the contracting agency or
business establishment. The cost for lodging for each employee
shall not exceed the daily rate as provided in the State Travel
Reimbursement Act.

J. The Oklahoma Tourism and Recreation Department is hereby
authorized to enter into contracts and agreements for the payment of
food, lodging, and meeting facility and beverage expenses as may be
necessary for seminars and receptions relating to familiarization
tours and tourism development. The expenses may be paid directly to
the contracting agency or business establishment. The Executive
Director of the Oklahoma Tourism and Recreation Department shall
provide a monthly report of any such expenditures to the Oklahoma
Tourism and Recreation Commission.

K. The Oklahoma Tourism and Recreation Department is hereby
authorized to enter into contracts and agreements for the payment of
exhibitor fees and display space charges at expositions to promote
the Department’s recreational facilities and the tourism and
recreation industry. The expenses may be paid directly to the
contracting agency or business establishment; provided that no
payment shall be made prior to the event unless it conveys a
property right to the state for future availability and use.

L. 1. The Oklahoma Highway Safety Office of the Department of
Public Safety is hereby authorized to enter into contracts and
agreements for the payment of food, lodging, and other authorized
expenses as may be necessary to host, conduct, sponsor, or
participate in highway-safety-related conferences, workshops,
seminars, meetings, or training sessions. The payments shall be for

ENR. S. B. NO. 1877 Page 700
all persons in attendance, including, but not limited to, employees
of political subdivisions or employees of the state or federal
government. For purposes specified in this paragraph, only federal
highway safety funds may be used in accordance with federal
guidelines and regulations, and no appropriated state funds shall be
used.

2. The cost of food for persons attending any highway safety
conferences, workshops, seminars, meetings, and training sessions
that do not require overnight travel shall not exceed the total
daily rate as provided in the State Travel Reimbursement Act.

M. 1. The Director of the Oklahoma State Bureau of
Investigation is hereby authorized to enter into contracts and
agreements for the payment of food, lodging and other authorized
expenses as may be necessary to host, conduct, sponsor or
participate in any conference, meeting, training session or
initiative to promote the mission and purposes of the Bureau. The
payments may be for all persons in attendance, including, but not
limited to, employees of political subdivisions or employees of the
state or federal government.

2. The cost of food for persons that do not require overnight
travel shall not exceed the total daily rate as provided in the
State Travel Reimbursement Act.

N. The Oklahoma Homeland Security Director is hereby authorized
to enter into contracts and agreements for the payment of food,
lodging and other authorized expenses as may be necessary to host,
conduct, sponsor, or participate in homeland-security-related
conferences, meetings, workshops, seminars, exercises or training
sessions. The expenses may be paid directly to the contracting
agency or business establishment.

O. The State Department of Education is hereby authorized to
enter into contracts and agreements for the payment of food, lodging
and other authorized expenses as may be necessary to host, conduct,
sponsor or participate in conferences, meetings or training
sessions. The State Department of Education may establish accounts
as necessary for the collection and distribution of funds, including
funds of sponsors and registration fees, related to such
conferences, meetings and training sessions. Any expenses incurred

ENR. S. B. NO. 1877 Page 701
may be paid directly to the contracting agency or business
establishment.

P. 1. The Insurance Commissioner of the Insurance Department
of the State of Oklahoma is hereby authorized to enter into
contracts and agreements for the payment of food, lodging, and other
authorized expenses as may be necessary to host, conduct, sponsor,
or participate in conferences, meetings, or training sessions. The
Commissioner may establish accounts as necessary for the collection
and distribution of funds, including funds of sponsors and
registration fees, related to such conferences, meetings, and
training sessions. Any expenses incurred may be paid directly to
the contracting agency or business establishment.

2. The cost of food for persons attending any conferences,
meetings, and training sessions that do not require overnight travel
shall not exceed the total daily rate as provided in the State
Travel Reimbursement Act.

Q. 1. The State Regents for Higher Education is hereby
authorized to enter into contracts and agreements for the payment of
food, lodging, and other authorized expenses as may be necessary to
host, conduct, sponsor, or participate in conferences, meetings, or
training sessions. The State Regents for Higher Education may
establish accounts as necessary for the collection and distribution
of funds, including funds of sponsors and registration fees, related
to such conferences, meetings, and training sessions. Any expenses
incurred may be paid directly to the contracting agency or business
establishment.

2. The cost of food for persons attending any conferences,
meetings, and training sessions that do not require overnight travel
shall not exceed the total daily rate as provided in the State
Travel Reimbursement Act.

R. 1. The Office of Educational Quality and Accountability is
hereby authorized to enter into contracts and agreements for the
payment of food, lodging, and other authorized expenses as may be
necessary to host, conduct, sponsor, or participate in conferences,
meetings, or training sessions. The Office of Educational Quality
and Accountability may establish accounts as necessary for the
collection and distribution of funds, including funds of sponsors

ENR. S. B. NO. 1877 Page 702
and registration fees, related to such conferences, meetings, and
training sessions. Any expenses incurred may be paid directly to
the contracting agency or business establishment.

2. The cost of food for persons attending any conferences,
meetings, and training sessions that do not require overnight travel
shall not exceed the total daily rate as provided in the State
Travel Reimbursement Act.

S. 1. The Department of Securities is hereby authorized to
enter into contracts and agreements for the payment of food,
lodging, meeting facility, facilitator fees and travel expenses,
exhibitor fees and other authorized expenses as may be necessary to
host, conduct, sponsor or participate in conferences, meetings,
training sessions or initiatives promoting or otherwise relating to
investor education. The Department of Securities may establish
accounts as necessary for the collection and distribution of funds,
including funds of sponsors and registration fees, related to such
conferences, meetings, training sessions or initiatives. The
payments may be for all persons in attendance, including, but not
limited to, employees of the state or federal government or
employees of political subdivisions of the state, including
employees of boards of public education. Expenses incurred may be
paid directly to the contracting agency or business establishment.

2. The cost of food for persons attending any conferences,
meetings and training sessions that do not require overnight travel
shall not exceed the total daily rate as provided in the State
Travel Reimbursement Act.

3. The Department of Securities is hereby authorized to pay
stipends to teachers participating in the investor education program
and monetary achievement awards to select participating students.
No appropriated state funds shall be used.

T. 1. The Oklahoma Department of Veterans Affairs is hereby
authorized to enter into contracts and agreements for the payment of
food, lodging, meeting facility, beverage and other authorized
expenses as may be necessary to host, conduct, sponsor or
participate in seminars, receptions, conferences, meetings or
training sessions related to the support of veterans and the
development of veterans’ services. Expenses incurred may be paid

ENR. S. B. NO. 1877 Page 703
directly to the contracting agency or business establishment. The
Executive Director of the Oklahoma Department of Veterans Affairs
shall provide a monthly report of any such expenditures to the
Oklahoma Veterans Commission.

2. The cost of food for persons attending any conferences,
meetings and training sessions that do not require overnight travel
shall not exceed the total daily rate as provided in the State
Travel Reimbursement Act.

U. Whenever possible it shall be the policy of each state
agency to prepay airline fares and lodging expenses using a purchase
card issued to the agency. This policy shall apply to instances
where employees of the agency are traveling on behalf of state
government.

SECTION 328. AMENDATORY 74 O.S. 2021, Section 500.18, as
last amended by Section 1, Chapter 325, O.S.L. 2022 (74 O.S. Supp.
2025, Section 500.18), is amended to read as follows:

Section 500.18. A. Except for members of the Legislature, the
Governor, and the Lieutenant Governor, provisions of Sections 500.1
through 500.18 of this title shall be mandatory for all officials
and employees of all departments, boards, commissions, and
institutions of the state, regardless of the provisions of any other
act of the Legislature, except as provided by this section. The
enactment of any measure in the future providing for travel
reimbursement of state officers and employees on the basis of
“actual and necessary” expenses or in any other manner inconsistent
with Sections 500.1 through 500.18 of this title shall be deemed to
provide for reimbursement in accordance with Sections 500.1 through
500.18 of this title unless a contrary intent is explicitly
expressed in this section. Sections 500.1 through 500.18 of this
title shall not apply, however, to travel reimbursements made by
political subdivisions of this state, except as otherwise provided
by law.

B. The agencies listed below are authorized certain exceptions
and/or or exemptions to the provisions of Sections 500.1 through
500.18 of this title to the extent specified:

1. Oklahoma Department of Agriculture, Food, and Forestry:

ENR. S. B. NO. 1877 Page 704

a. The actual and reasonable expenses of travel and
subsistence in pursuing and developing markets for
Oklahoma agricultural products incurred by the
Commissioner, Deputy Commissioner and such employees
designated by the State Board of Agriculture within
the marketing development programs of the Oklahoma
Department of Agriculture, Food, and Forestry shall be
reimbursed to the employee incurring such expenses.
Reimbursement of such expenses shall be in accordance
with rules adopted by the Board. Expenses claimed
shall, prior to reimbursement, be reviewed by the
Board at a regular meeting and individually approved
or disapproved.

b. The actual and necessary expenses of out-of-state
travel and subsistence incurred by employees of the
Forestry Division authorized to evaluate and acquire
federal excess property or surplus property in other
states for use in its fire protection program shall be
reimbursed to the employee incurring such expenses.

2. Department of Public Safety:

When traveling with the Governor or at the Governor’s request,
personnel assigned by the Commissioner for executive security and
pilots on executive assignment shall be allowed their actual and
necessary traveling expenses, upon claims approved by the
Commissioner.

3. Department of Corrections:

The Department of Corrections shall be exempt from limitations
of reimbursement for rented automobiles, as set forth in Section
500.5 of this title, when the rental is by a Correctional Officer or
Transportation Officer for the limited purpose of transporting
inmates. Reimbursement for the expense shall be on the basis of
actual cost.

4. Oklahoma Tourism and Recreation Department:

ENR. S. B. NO. 1877 Page 705
The Oklahoma Tourism and Recreation Commission and Department
staff who promote in-state and out-of-state business for Oklahoma’s
state-operated or state-owned parks, lodges, and golf courses and
the tourism and recreation industry may be reimbursed for the actual
and necessary expense of travel, subsistence and entertainment for
this purpose. The Director of the Oklahoma Tourism and Recreation
Department may reimburse the Publisher of Oklahoma Today magazine
and its staff for expenses for meals and other entertainment in
order to gain advertising and promotion for Oklahoma Today magazine.

5. Oklahoma Department of Commerce:

a. The actual and necessary expenses incurred by the
Director and other employees of the Department
authorized by the Director for the purpose of business
recruitment shall be reimbursed. Reimbursement of
expenses shall be in accordance with rules adopted by
the Director of the Oklahoma Department of Commerce.
Expenses claimed shall, prior to reimbursement, be
reviewed by the Director and individually approved or
disapproved.

b. The Department, at the discretion of the Director, may
charter aircraft for the purposes of carrying out its
duties and responsibilities related to business
recruitment and performing the duties of the Director.
The cost of such charter shall be exempt from the
provisions of Section 500.6 of this title. Claims
filed with the Office of Management and Enterprise
Services shall bear the following certification:

The best interests of the citizens of Oklahoma were
better served in that conventional ground
transportation was not practical or feasible for this
trip, aircraft from the Department of Public Safety
were not available for this trip, and no other claim
has been or will be filed as a payment for the cost of
transportation in connection with this trip.

c. The Oklahoma Department of Commerce may reimburse the
Oklahoma Film and Music Office staff for the actual
and necessary expenses for meals and other

ENR. S. B. NO. 1877 Page 706
entertainment in order to promote the film and music
industries in this state. Reimbursement of all actual
and necessary expenses shall be in accordance with
rules adopted by the Oklahoma Department of Commerce.

6. Office of Management and Enterprise Services:

The actual and necessary expenses of travel and subsistence
incurred by the Director, any state employee approved by his or her
appointing authority, or state officials, for travel outside the
state in performance of duties related to bond financing shall be
reimbursed to the employee or state official incurring such
expenses. Reimbursement for lodging expenses shall be supported by
three telephone bids from hotels within a reasonable distance of the
activity for which the travel was approved.

7. Oklahoma Futures:

The actual and necessary expenses incurred by the members of
Oklahoma Futures in the performance of their duties shall be
reimbursed to the members incurring such expenses. Reimbursement of
all actual and necessary expenses shall be in accordance with rules
adopted by Oklahoma Futures.

8. Oklahoma Development Finance Authority:

The actual and necessary expenses incurred by the members and
employees of the Oklahoma Development Finance Authority in the
performance of their duties shall be reimbursed to the person
incurring such expenses. Reimbursement of all actual and necessary
expenses shall be in accordance with the bylaws of the Authority.

9. Oklahoma Center for the Advancement of Science and
Technology:

The actual and necessary expenses incurred by the members and
employees of the Oklahoma Center for the Advancement of Science and
Technology in the performance of their duties shall be reimbursed to
the person incurring such expenses. Reimbursement of all actual and
necessary expenses shall be in accordance with the bylaws of the
Center.

ENR. S. B. NO. 1877 Page 707
10. Center for International Trade Development:

The actual and necessary expenses of travel, lodging and
subsistence incurred by the Director and authorized employees of the
Center for International Trade Development for performance of their
duties for the purpose of business recruitment and assistance shall
be reimbursed to the person incurring such expenses. Reimbursement
of such expenses shall be in accordance with the rules adopted by
the Director of the Center for International Trade Development.
Expenses claimed shall be reviewed and individually approved or
disapproved, prior to reimbursement, first by the Director, and
finally by either the Vice President, Business and Finance of
Oklahoma State University or the President of Oklahoma State
University.

11. Oklahoma State Bureau of Investigation:

The actual and necessary expenses incurred by the Director and
other employees of the Bureau authorized by the Director as a result
of conducting investigations shall be reimbursed to each such
employee incurring the expenses. Reimbursement of the expenses
shall be in accordance with rules adopted by the Director of the
Oklahoma State Bureau of Investigation. Prior to reimbursement,
expenses claimed shall be reviewed by the Director and individually
approved or disapproved.

12. Department of Human Services:

The actual and necessary expenses of travel, lodging and
subsistence incurred by employees of the Legal Division in the
performance of their duties for the purpose of representing the
Department of Human Services or any of its officials, employees,
institutions or hospitals at any proceeding including depositions,
held before any court, administrative body or representative
thereof, shall be reimbursed to the employee incurring such
expenses. Expenses claimed shall be approved by the General Counsel
and the Director of Human Services prior to reimbursement.

13. Oklahoma Health Care Authority:

The actual and necessary expenses of travel, lodging and
subsistence incurred by employees of the Legal Division in the

ENR. S. B. NO. 1877 Page 708
performance of their duties for the purpose of representing the
Authority or any of its officials or employees, at any proceeding
including depositions, held before any court, administrative body or
representative thereof, shall be reimbursed to the employee
incurring such expenses. Expenses claimed shall be approved by the
Administrator prior to reimbursement.

14. Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control:

The actual and necessary expenses incurred by the Director and
other employees of the Bureau authorized by the Director as a result
of conducting investigations shall be reimbursed to each employee
incurring the expenses. Reimbursement of the expenses shall be in
accordance with rules adopted by the Director of the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control. Prior to
reimbursement, expenses claimed shall be reviewed by the Director
and individually approved or disapproved.

15. University Hospitals:

The actual and necessary expenses of travel, lodging and
subsistence incurred by employees of the Legal Office in the
performance of their duties for the purpose of representing the
University Hospitals or any of its officials, employees,
institutions or hospitals at any proceeding including depositions,
held before any court, administrative body or representative
thereof, shall be reimbursed to the employee incurring such
expenses. Expenses shall be approved by the Chief Executive Officer
of the University Hospitals or by the University Hospitals
Authority.

16. Oklahoma Historical Society:

The actual and necessary expenses of travel, subsistence and
entertainment incurred by the Executive Director, Deputy Director
and any employees designated by the Executive Committee of the
Oklahoma Historical Society Board of Directors in pursuing and
developing programs and projects for the preservation and marketing
of Oklahoma history shall be reimbursed to the person incurring the
expenses. Reimbursement of expenses shall be in accordance with
rules adopted by the Oklahoma Historical Society Board of Directors.

ENR. S. B. NO. 1877 Page 709
Prior to reimbursement, expenses claimed shall be reviewed by the
Executive Committee at a regularly scheduled meeting and each claim
shall be individually approved or disapproved.

17. The Oklahoma Department of Mines:

The actual and necessary expenses of travel, lodging and
subsistence incurred by employees of the Department in the
performance of their duties for the purpose of representing the
Department or any of its officials or employees, at any proceeding,
hearing or meeting with federal agencies, boards, commissions,
congressional representatives, congressional committees or staff,
shall be reimbursed to the employee incurring such expenses.
Expenses claimed shall be approved by the Executive Director prior
to reimbursement.

18. The Office of Attorney General:

The actual and necessary expenses of travel, lodging and
subsistence incurred by its employees in the performance of their
duties for the purpose of representing the state, the Legislature,
any state board, agency or commission, or any employee or official
of the state entitled to representation, at any proceeding including
depositions, held before any court, administrative body or any
representative thereof, and the actual and necessary expenses
incurred by employees as a result of conducting investigations shall
be reimbursed to the employee incurring the expenses. The expenses
shall be approved by the Attorney General prior to reimbursement.

19. District Attorneys Council:

The actual and necessary expenses of travel, lodging and
subsistence incurred by each district attorney and other employees
of the district attorney authorized by the district attorney in the
performance of their duties for any district other than the district
for which they are employed for the purpose of representing the
state, any county, or any employee or official of the state entitled
to representation at any proceeding including depositions held
before any court, administrative body or any representative of a
court or administrative body, and the actual and necessary expenses
incurred as a result of conducting investigations shall be
reimbursed to each employee incurring the expenses. Reimbursement

ENR. S. B. NO. 1877 Page 710
of the expenses shall be in accordance with rules adopted by the
District Attorneys Council. Prior to reimbursement, expenses
claimed shall be reviewed by the Council and individually approved
or disapproved.

20. The Department of Securities:

The actual and necessary expenses of travel, lodging and
subsistence incurred by the Administrator and other employees of the
Department of Securities in the performance of their duties for the
purpose of representing the Department of Securities, at any
proceeding including depositions, held before any court,
administrative body or any representative thereof, conducting on-
site examinations, or conducting investigations, shall be reimbursed
to each employee incurring the expenses. The expenses shall be
approved by the Administrator of the Department of Securities prior
to reimbursement.

21. Corporation Commission:

The actual and necessary travel expenses incurred by the staff
of the Public Utility Division as a result of conducting audits
and/or or reviews of utility service providers shall be reimbursed
to each employee incurring the expense. Reimbursement of the
expenses shall be as set forth in procedures established by the
appointing authority.

22. The Department of Human Services:

Employees of the Department of Human Services may be reimbursed
for their actual and necessary expenses of travel, lodging and meals
and incidentals incurred in the performance of their duties for the
purpose of escorting and transporting children or adults in the care
or custody of the Department, subject to approval by the Department:

a. for out-of-state visitation, care, treatment and
placement of a child welfare client,

b. for out-of-state treatment for or placement of an
adult protective services client,

ENR. S. B. NO. 1877 Page 711
c. for out-of-state treatment for or placement of a
resident of a state resource center,

d. for out-of-state treatment for or placement of an
individual with a developmental disability who is
living in the community in community residential
services, or

e. for meals and incidental expenses necessary for the
care of children or adults in the care or custody of
the Department.

Expenses claimed shall be approved by the appropriate Division
Director or Deputy prior to reimbursement.

23. The Banking Department:

The actual and necessary expenses of travel and lodging incurred
by the Commissioner and other employees of the Banking Department in
the performance of their duties for the Banking Department shall be
paid or reimbursed by the Banking Department to each employee
incurring the expenses. The expenses shall be approved by the
Banking Commissioner prior to payment or reimbursement.

24. Oklahoma Office of Homeland Security:

The actual and necessary expenses of travel, lodging, and
subsistence incurred by the Oklahoma Homeland Security Director, as
a result of the duties and responsibilities of the Director, shall
be paid or reimbursed by the Oklahoma Office of Homeland Security.

25. The Grand River Dam Authority:

The actual and necessary expenses of travel and lodging incurred
by the Board of Directors and other employees of the district in the
performance of their duties for the Grand River Dam Authority shall
be paid or reimbursed by the district to each Director or employee
incurring the expenses. The expenses shall be approved by the
General Manager of the Grand River Dam Authority prior to payment or
reimbursement.

26. The Native American Cultural and Educational Authority:

ENR. S. B. NO. 1877 Page 712

The actual and necessary expenses incurred by the Directors and
employees of the Native American Cultural and Educational Authority
in performances of duties. The expenses shall be approved by the
Director prior to payment or reimbursement.

27. Oklahoma Department of Career and Technology Education:

The actual and necessary expenses incurred by the Director and
other employees of the Department, authorized by the Director, for
the purpose of business recruitment, training, and the provision of
technical assistance shall be reimbursed. Reimbursement of expenses
shall be in accordance with rules adopted by the State Board of
Career and Technology Education. Expenses claimed, prior to the
reimbursement, will be reviewed by the Board and individually
approved or disapproved.

28. 27. Oklahoma Military Department:

The actual and necessary travel expenses incurred by the
Director, other employees of the Department and persons performing
substantial and necessary services to the state in support of the
Oklahoma National Guard shall be reimbursed to the individual
incurring such expenses. The expenses claimed shall be approved by
the Director or Chief Financial Officer prior to reimbursement.

C. The agencies listed in subsection B of this section shall be
required to, utilizing the centralized filing system provided for in
Section 378 of this act, electronically report annually the actual
expenses excepted or exempted from Sections 500.1 through 500.18 of
this title to the Governor, the President Pro Tempore of the Senate,
and the Speaker of the House of Representatives. The report shall
be submitted no later than the first day of September following the
end of each fiscal year.

SECTION 329. AMENDATORY Section 3, Chapter 414, O.S.L.
2024 (74 O.S. Supp. 2025, Section 583.1), is amended to read as
follows:

Section 583.1. A. The purpose of the Oklahoma-Israel Exchange
Commission shall be to advance, promote, and encourage business and

ENR. S. B. NO. 1877 Page 713
other mutually beneficial activities between Oklahoma and Israel,
including:

1. Bilateral trade and investment;

2. Joint action on policy issues of mutual interest;

3. Business and academic exchanges;

4. Mutual economic support;

5. Mutual investment in the respective infrastructure; and

6. Other opportunities for mutual benefit and economic growth
as identified by the Commission.

B. The Commission shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
report its findings, activities, results, and recommendations to the
Governor, the Speaker of the Oklahoma House of Representatives, and
the President Pro Tempore of the Oklahoma State Senate within one
(1) year of its initial meeting and by February 1 of each succeeding
year for the activities of the preceding calendar year. The report
shall be in writing and may include recommendations or proposed
legislation as deemed appropriate by the Commission to effectuate
its purposes.

C. The Oklahoma-Israel Exchange Commission shall be authorized
to raise funds, through direct solicitation or other fundraising
events, alone, or with other groups, and accept gifts, grants, and
bequests from individuals, corporations, foundations, governmental
agencies, and public and private organizations and institutions, to
carry out its purposes.

SECTION 330. AMENDATORY 74 O.S. 2021, Section 589, is
amended to read as follows:

Section 589. A. Upon a finding by the Office of Management and
Enterprise Services pursuant to Section 588.1 of this title that the
agency has complied with the requirements of the Oklahoma
Privatization of State Functions Act, and before any agency can

ENR. S. B. NO. 1877 Page 714
contract to privatize a function, program, service, unit, or
division, the agency must shall provide:

1. Notification to employees impacted by the proposed
privatization by the agency of its intent to privatize a function,
program, service, unit, or division of the agency;

2. Notification to affected employees that they will have the
opportunity to submit cost-savings recommendations for improving the
operations, efficiency or organization of the entity being
considered for privatization; and

3. Notification by the agency simultaneously with the notice
required pursuant to paragraph 1 of this subsection, to the Director
of the Office of Management and Enterprise Services of the intent of
the agency to privatize a state function.

B. Upon a request by the affected employees, the agency shall
provide information about the delivery of services to its employees
as they develop recommendations to be considered. This information
shall include revenue expenditure data, wage and salary data, an
inventory of the supplies, equipment, and facilities associated with
the program being privatized, and the cost analysis performed by the
agency.

C. Any recommendations submitted by agency employees shall be
considered by the agency, separate and apart from the bid process,
with nonemployee bids. The agency shall make the final
determination whether to accept the winning nonemployee bid or
accept the employee recommendations in lieu of the winning bid.

D. After an agency has met the requirements of subsection A of
this section, the agency shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
notify the Director of the Office of Management and Enterprise
Services, the Governor, the President Pro Tempore of the Senate, and
the Speaker of the House of Representatives of the intent of the
agency to solicit bids in accordance with this section.

E. The agency shall provide, alongside the notification
required in subsection D of this section, a comprehensive written
analysis of the contract cost based upon the designated bid,

ENR. S. B. NO. 1877 Page 715
specifically including the costs of transition from public to
private operation, severance payments to agency employees, and
monitoring and otherwise administering contract performance.

F. The agency shall require the following information prior to
entering into a contract to privatize a function, program, service,
unit, or division:

1. Financial stability of the vendor, past and present
litigation, and references related to past government contract
performance information; and

2. Detail how the vendor will perform the contract, including
staffing and equipment information.

G. The agency shall establish a plan and cost analysis on how
to return the privatized function, program, service, unit, or
division to the state if there is a contract cancellation.

H. Any contract with a vendor to privatize a function, program,
service, unit, or division shall require that the payment to the
contractor be linked to performance. The contract shall provide
that the amount agreed upon in the contract may be reduced if the
agency experiences a budget shortfall.

I. Each privatization contract shall contain provisions
requiring the contractor to offer available employee positions
pursuant to the contract to qualified regular employees of the
agency whose state employment is terminated because of the
privatization contract and who satisfy the hiring criteria of the
contractor.

SECTION 331. AMENDATORY 74 O.S. 2021, Section 669, is
amended to read as follows:

Section 669. The Oklahoma Commission on the Status of Women
shall have the power and the duty to:

1. Advise on equity issues relating to gender bias, state
agencies and employees, communities, organizations, and businesses
of this state which desire the services of the Commission;

ENR. S. B. NO. 1877 Page 716
2. Monitor legislation as to whether the legislation is
discriminatory toward one gender or whether the gender of an
individual would have an effect on the enforcement of the
legislation;

3. Act as a resource and a clearinghouse for research on issues
related to women and gender bias;

4. Conduct meetings and seminars within the state as
appropriate to support the goals and duties of the Commission; and

5. Report Utilizing the centralized filing system provided for
in Section 378 of this act, electronically report to the Governor,
the President Pro Tempore of the Senate, and the Speaker of the
House of Representatives of its activities. The report
recommendations may include recommendations concerning needed
legislation or regulatory changes relating to equity and gender
bias.

SECTION 332. AMENDATORY Section 2, Chapter 201, O.S.L.
2024 (74 O.S. Supp. 2025, Section 692), is amended to read as
follows:

Section 692. A. The purpose of the Oklahoma Ireland Trade
Commission shall be to advance, promote, and encourage business and
other mutually beneficial activities between Oklahoma and Ireland,
including:

1. Bilateral trade and investment;

2. Joint action on policy issues of mutual interest;

3. Business and academic exchanges;

4. Mutual economic support;

5. Mutual investment in the respective infrastructure; and

6. Other opportunities for mutual benefit and economic growth
as identified by the Commission.

ENR. S. B. NO. 1877 Page 717
B. The Commission shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
report its findings, activities, results, and recommendations to the
Governor, the Speaker of the Oklahoma House of Representatives, and
the President Pro Tempore of the Oklahoma State Senate within one
(1) year of its initial meeting and by February 1st of each
succeeding year for the activities of the preceding calendar year.
The report shall be in writing and may include recommendations or
proposed legislation as deemed appropriate by the Commission to
effectuate its purpose.

C. The Oklahoma Ireland Trade Commission shall be authorized to
raise funds, through direct solicitation or other fundraising
events, alone, or with other groups, and accept gifts, grants, and
bequests from individuals, corporations, foundations, governmental
agencies, and public and private organizations and institutions, to
carry out its purposes.

SECTION 333. AMENDATORY 74 O.S. 2021, Section 840-1.6A,
as amended by Section 4, Chapter 243, O.S.L. 2022 (74 O.S. Supp.
2025, Section 840-1.6A), is amended to read as follows:

Section 840-1.6A. The Office of Personnel Management Division
of the Office of State Finance was consolidated into and renamed the
Office of Management and Enterprise Services. Where the term
“Office of Personnel Management” is used within the Oklahoma
Statutes, it shall mean the Office of Management and Enterprise
Services. The chief administrative officer shall be the Director of
the Office of Management and Enterprise Services. In addition to
the other duties imposed by law, the Director shall:

1. Be responsible for the development of an efficient and
effective system of personnel administration that meets the
management needs of the various agencies;

2. Organize the Office to provide both service and regulatory
functions that are effective and efficient in meeting the management
needs of various state agencies. The Director is directed to
establish an agency service function to assist agencies with human
resource needs based upon the administrative capacity and resources
of the various agencies;

ENR. S. B. NO. 1877 Page 718
3. Prepare, maintain, and revise a system of employment
designed to ensure the impartial consideration of applicants for
employment and to protect state employees from arbitrary dismissal
or unfair treatment;

4. Develop and maintain a classification and compensation
system for all positions in the executive branch of state government
including those established by the Oklahoma Constitution;

5. Conduct an analysis of the rates of pay prevailing in the
state in the public and private sectors for comparable jobs and,
utilizing the centralized filing system provided for in Section 378
of this act, electronically report the findings to the Governor, the
President Pro Tempore of the Senate, and the Speaker of the House of
Representatives no later than December 1 of each year. Such
analysis shall include all forms of compensation including fringe
benefits. Information solicited by the Office of Management and
Enterprise Services from public and private sector employers for
such analysis, including but not limited to salaries, benefits, and
compensation policies and procedures, shall be confidential and
shall not be subject to disclosure under the Oklahoma Open Records
Act;

6. Assist state agencies in implementing their duties and
obligations and provide standard forms to the agencies if necessary;

7. Develop, in cooperation with appointing authorities,
employee training programs, management training programs, a
certified public manager program, a recruiting program, and a system
of performance appraisals, and assist appointing authorities in the
setting of productivity goals. The Director may establish and
collect fees for participation in training programs. The Director
is authorized to purchase awards for presentation to state employees
as part of employee recognition activities sponsored by the Office
of Management and Enterprise Services;

8. Establish rules for leave and pay including, but not limited
to, rules for leave, furloughs, performance pay increases, rates for
pay differentials, on-call pay, and other types of pay incentives
and salary adjustments consistent with this act and reduction-in-
force;

ENR. S. B. NO. 1877 Page 719
9. Be responsible for the development and maintenance of a
uniform occupation code system, grouped by job titles or duties, for
all state positions. The responsibility shall include the
establishment of rules governing the identification, tracking, and
reporting of all state positions as provided in Section 840-2.13 of
this title;

10. Be responsible for advising state agencies on personnel
policy and administration;

11. Establish standards for continuing training and
certification of personnel professionals in the executive branch of
state government, excluding institutions within The Oklahoma State
System of Higher Education. Employees appointed to professional
personnel positions shall complete an initial training program
within one (1) year after assuming the professional personnel
position. Thereafter, they shall complete annual training
requirements. Each appointing authority shall ensure that all
professional personnel employees are notified of, and scheduled to
attend, required training programs and shall make time available for
employees to complete the programs. The Director shall be
authorized to bill agencies for the training of personnel
professionals pursuant to this paragraph to recover reasonable costs
associated with the training. Monies received for such training
shall be deposited in the Human Capital Management Revolving Fund.
Expenditure of such funds collected for the training shall be exempt
from any expenditure limit on the Office of Management and
Enterprise Services established by law;

12. Not less than once during each two-year period, conduct a
study identifying the following, by job family descriptors:

a. selected jobs with a turnover rate in excess of ten
percent (10%),

b. selected jobs identified by the Director of the Office
of Management and Enterprise Services with salaries
and benefits that are ten percent (10%) or more below
the market for such positions, and

ENR. S. B. NO. 1877 Page 720
c. selected jobs identified by the Director in which
recruitment efforts have yielded a low number of
qualified applicants;

13. Establish a workforce planning function within the Office
of Management and Enterprise Services to assist state agencies in
analyzing the current workforce, determining future workforce needs,
and implementing solutions so that agencies may accomplish their
missions; and

14. Establish a quality management function within the Office
of Management and Enterprise Services and shall assist state
agencies in fully integrating quality management concepts and models
into their business practices for the purpose of improving the
overall efficiency and effectiveness of state government.

SECTION 334. AMENDATORY 74 O.S. 2021, Section 840-2.17,
as amended by Section 13, Chapter 243, O.S.L. 2022 (74 O.S. Supp.
2025, Section 840-2.17), is amended to read as follows:

Section 840-2.17. A. Unless otherwise provided by the Oklahoma
Constitution, statutory authority to set or fix compensation, pay or
salary of state officers and employees shall not be construed to
authorize any agency, board, commission, department, institution,
bureau, executive officer or other entity of the executive branch of
state government to award, grant, give, authorize, or promise any
officer or employee of the State of Oklahoma a raise that is
inconsistent with the compensation schedules established by the
Office of Management and Enterprise Services for all state officers
and employees in the executive branch, including, but not limited
to, a cost-of-living raise or any other type of raise that would be
given to state employees on an across-the-board basis, except as
herein provided. Such raises are prohibited unless authorized by
the Legislature and by rules promulgated by the Director. This
prohibition applies to all officers and employees in the executive
branch of state government, excluding institutions under the
administrative authority of the Oklahoma State Regents for Higher
Education.

B. However, nothing in this section shall be construed to
prohibit the following actions if the action is made in good faith
and not for the purpose of circumventing subsection A of this

ENR. S. B. NO. 1877 Page 721
section, and if the appointing authority certifies that the action
can be implemented for the current fiscal year and the subsequent
fiscal year without the need for additional funding to increase the
personal services budget of the agency, and if the Office of
Management and Enterprise Services certifies that the action is
consistent with the compensation schedules established pursuant to
the provisions of this act:

1. Salary advancements on promotion;

2. Salary adjustments resulting from a pay change for a job
level adopted by the Office of Management and Enterprise Services;

3. Increases in longevity payments pursuant to Section 840-2.18
of this title;

4. Payment of overtime, special entrance rates, pay
differentials;

5. Payment of wages, salaries, or rates of pay established and
mandated by law;

6. Market adjustments for jobs tied to market competitiveness;

7. Skill-based adjustments;

8. Equity-based adjustments;

9. Performance-based adjustments; or

10. Career progression increases as an employee advances
through job levels.

C. Provided, however, any salary increase for one of the
purposes provided in subsection B of this section that would require
additional funding by the Legislature shall not be implemented
without approval of the Legislature.

D. Appointing authorities may implement the pay movement
mechanisms subject to the availability of funds within the agency’s
budget for the current fiscal year and subsequent fiscal year
without the need for additional funding to increase the personal

ENR. S. B. NO. 1877 Page 722
services budget of the agency. Failure by the appointing authority
to follow the provisions of this subsection may cause the withdrawal
of the use of the pay movement mechanisms of this section within the
agency during the next appropriations cycle.

E. The Office of Management and Enterprise Services shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically file a quarterly report with the Offices
of the Governor, President Pro Tempore of the Senate, and Speaker of
the House of Representatives listing, by agency, all increases in
wages, salaries, or rates of pay and any changes to title or
classification of each employee.

SECTION 335. AMENDATORY 74 O.S. 2021, Section 840-2.27C,
as last amended by Section 1, Chapter 341, O.S.L. 2024 (74 O.S.
Supp. 2025, Section 840-2.27C), is amended to read as follows:

Section 840-2.27C. A. At least thirty (30) days before the
scheduled beginning of reduction-in-force separations or as
otherwise provided by law, the appointing authority shall post in
each office of executive branch agencies affected by the proposed
reduction-in-force notice that a reduction-in-force will be
conducted. The reduction-in-force implementation plan shall be
provided to the Director of the Office of Management and Enterprise
Services and any state employee association representing state
employees at such time. The notice shall not be posted unless
approved by the cabinet secretary for the agency conducting the
reduction-in-force. If there is no incumbent cabinet secretary for
the agency, the cabinet-secretary-notice-approval requirement shall
not be applicable. If the appointing authority is governed by an
elected official, the cabinet-secretary-notice-approval requirement
shall not be applicable. The approved notice shall be posted in
each office affected by the proposed plan for five (5) days. The
appointing authority shall provide a copy of the notice to the
Administrator. A reduction-in-force shall not be used as a
disciplinary or retaliatory action; provided, that a low job
performance evaluation, within the past twelve (12) months, may be a
factor considered by the appointing authority during a reduction-in-
force.

B. The reduction-in-force implementation plan shall:

ENR. S. B. NO. 1877 Page 723
1. Provide for the appointing authority to determine the
specific position or positions to be abolished within specified
units, divisions, facilities, agency-wide or any parts thereof; and

2. Provide outplacement assistance and employment counseling
from the Oklahoma Employment Security Commission and any other
outplacement assistance and employment counseling made available by
the agency to affected employees regarding the options available
pursuant to the State Government Reduction-in-Force and Severance
Benefits Act prior to the date that a reduction-in-force is
implemented.

C. The Director of the Office of Management and Enterprise
Services shall review the fiscal components of the reduction-in-
force implementation plan and within five (5) business days of
receipt reject any plan that does not:

1. Demonstrate that funds are available to cover projected
costs; and

2. Contain an estimate of the cost savings or reduced
expenditures likely to be achieved by the agency.

If the reduction-in-force is conducted pursuant to a
reorganization, the fiscal components of the reduction-in-force
implementation plan shall contain reasons for the reorganization,
which may include, but not be limited to, increased efficiency,
improved service delivery, or enhanced quality of service.

D. When the Legislature is not in session, the Contingency
Review Board may, upon the request of the Governor, direct agencies,
boards and commissions to reduce the number of employees working for
the agency, board or commission whenever it is deemed necessary and
proper. Such reduction shall be made pursuant to reduction-in-force
plans as provided in this section.

E. 1. When the Legislature is not in session, the Contingency
Review Board may, upon the request of the Governor, direct and
require mandatory furloughs for all state employees whenever it is
deemed necessary and proper. The Contingency Review Board shall
specify the effective dates for furloughs and shall note any
exceptions to state employees affected by the same. All employees,

ENR. S. B. NO. 1877 Page 724
including those employees of agencies or offices established by
statute or the Constitution, shall be affected by such actions.

2. Mandatory furlough means the involuntary temporary reduction
of work hours or the placement of an employee on involuntary leave
without pay. Rules governing leave, longevity pay and participation
in the State Employees Group Health, Dental, Disability, and Life
Insurance program shall not be affected by mandatory furloughs.
Furlough, as provided for in this section or by rules adopted by the
Director of the Office of Management and Enterprise Services, shall
not be appealable under the provisions of this act.

3. Notwithstanding existing laws or provisions to the contrary,
members of state boards and commissions shall not receive per diem
expenses during periods of mandatory furlough. The Contingency
Review Board shall additionally call upon elected officials, members
of the judiciary, and other public officers whose salary or
emoluments cannot be altered during current terms of office, to
voluntarily donate to the General Revenue Fund any portion of their
salary which would otherwise have been affected by a mandatory
furlough.

F. All agencies directed by the Contingency Review Board to
terminate or furlough employees, shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically report the cumulative cost savings achieved by the
reductions-in-force or furloughs to the Governor, President Pro
Tempore of the Senate, and Speaker of the House of Representatives
on a quarterly basis for one (1) year following the effective date
of the action.

G. The appointing authority of an agency which has an approved
reduction-in-force plan pursuant to the State Government Reduction-
in-Force and Severance Benefits Act may request the Director of the
Office of Management and Enterprise Services to appoint an
interagency advisory task force for the purpose of assisting the
agency and its employees with the implementation of the reduction-
in-force. The appointing authority of state agencies requested by
the Administrator to participate on a task force shall assign
appropriate administrative personnel necessary to facilitate the
necessary assistance required for the efficient implementation of
the approved reduction-in-force.

ENR. S. B. NO. 1877 Page 725

SECTION 336. AMENDATORY 74 O.S. 2021, Section 909.1, is
amended to read as follows:

Section 909.1. A. The Oklahoma Public Employees Retirement
System Board of Trustees shall discharge their duties with respect
to the System solely in the interest of the participants and
beneficiaries and:

1. For the exclusive purpose of:

a. providing benefits to participants and their
beneficiaries, and

b. defraying reasonable expenses of administering the
System;

2. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of
an enterprise of a like character and with like aims;

3. By diversifying the investments of the System so as to
minimize the risk of large losses, unless under the circumstances it
is clearly prudent not to do so; and

4. In accordance with the laws, documents and instruments
governing the System.

B. The Board of Trustees may procure insurance indemnifying the
members of the Board of Trustees from personal loss or
accountability from liability resulting from a member’s action or
inaction as a member of the Board of Trustees.

C. The Board of Trustees may establish an investment committee.
The investment committee shall be composed of not more than five (5)
members of the Board of Trustees appointed by the chairman of the
Board of Trustees. The committee shall make recommendations to the
full Board of Trustees on all matters related to the choice of
custodians and managers of the assets of the System, on the
establishment of investment and fund management guidelines, and in
planning future investment policy. The committee shall have no

ENR. S. B. NO. 1877 Page 726
authority to act on behalf of the Board of Trustees in any
circumstances whatsoever. No recommendation of the committee shall
have effect as an action of the Board of Trustees nor take effect
without the approval of the Board of Trustees as provided by law.

D. The Board of Trustees shall retain qualified investment
managers to provide for the investment of the monies of the System.
The investment managers shall be chosen by a solicitation of
proposals on a competitive bid basis pursuant to standards set by
the Board of Trustees. Subject to the overall investment guidelines
set by the Board of Trustees, the investment managers shall have
full discretion in the management of those monies of the System
allocated to the investment managers. The Board of Trustees shall
manage those monies not specifically allocated to the investment
managers. The monies of the System allocated to the investment
managers shall be managed by the investment managers, which may
include selling investments and realizing losses if such action is
considered advantageous to longer term return maximization. Because
of the total return objective, no distinction shall be made for
management and performance evaluation purposes between realized and
unrealized capital gains and losses.

E. Funds and revenues for investment by the investment managers
or the Board of Trustees shall be placed with a custodian selected
by the Board of Trustees. The custodian shall be a bank or trust
company offering pension fund master trustee and master custodial
services. The custodian shall be chosen by a solicitation of
proposals on a competitive basis pursuant to standards set by the
Board of Trustees. In compliance with the investment policy
guidelines of the Board of Trustees, the custodian bank or trust
company shall be contractually responsible for ensuring that all
monies of the System are invested in income-producing investment
vehicles at all times. If a custodian bank or trust company has not
received direction from the investment managers of the System as to
the investment of the monies of the System in specific investment
vehicles, the custodian bank or trust company shall be contractually
responsible to the Board of Trustees for investing the monies in
appropriately collateralized short-term interest-bearing investment
vehicles.

ENR. S. B. NO. 1877 Page 727
F. By November 1, 1988, and prior to August 1 of each year
thereafter, the Board of Trustees shall develop a written investment
plan for the System.

G. The Board of Trustees shall compile a quarterly financial
report of all the funds of the System on a fiscal year basis. The
report shall be compiled pursuant to uniform reporting standards
prescribed by the Oklahoma State Pension Commission for all state
retirement systems. The report shall include several relevant
measures of investment value, including acquisition cost and current
fair market value with appropriate summaries of total holdings and
returns. The report shall contain combined and individual rate of
returns of the investment managers by category of investment, over
periods of time. The Board of Trustees shall include in the
quarterly reports all commissions, fees or payments for investment
services performed on behalf of the Board. The report shall be
electronically distributed to the Governor, the Oklahoma State
Pension Commission, the Speaker of the House of Representatives, and
the President Pro Tempore of the Senate utilizing the centralized
filing system provided for in Section 378 of this act. In lieu of
compiling and distributing the quarterly report, the Board may
provide the Pension Commission with direct access to the same data
from the custodian bank for the System.

H. After July 1 and before December 1 of each year, the Board
of Trustees shall publish widely an annual report presented in
simple and easily understood language pursuant to uniform reporting
standards prescribed by the Oklahoma State Pension Commission for
all state retirement systems. The report shall be submitted to the
Governor, the Speaker of the House of Representatives, the President
Pro Tempore of the Senate, the Oklahoma State Pension Commission and
the members of the System. The annual report shall cover the
operation of the System during the past fiscal year, including
income, disbursements, and the financial condition of the System at
the end of the fiscal year. The annual report shall also contain
the information issued in the quarterly reports required pursuant to
subsection G of this section as well as a summary of the results of
the most recent actuarial valuation to include total assets, total
liabilities, unfunded liability or over funded status, contributions
and any other information deemed relevant by the Board of Trustees.
The annual report shall be written in such a manner as to permit a

ENR. S. B. NO. 1877 Page 728
readily understandable means for analyzing the financial condition
and performance of the System for the fiscal year.

I. The Board shall distribute the corpus and income of the
System to the members and their beneficiaries in accordance with the
System’s laws and rules and regulations. At no time prior to the
satisfaction of all liabilities with respect to members and their
beneficiaries shall any part of the corpus and income be used for,
or diverted to, purposes other than the exclusive benefit of the
members and their beneficiaries.

SECTION 337. AMENDATORY 74 O.S. 2021, Section 942, is
amended to read as follows:

Section 942. A. The Oklahoma State Pension Commission shall:

1. Publish, on a quarterly basis, a performance report
analyzing the performance of 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 Teachers’ Retirement
System of Oklahoma, the Oklahoma Public Employees Retirement System
and the retirement plan adopted by the Wildlife Conservation
Commission on an individual and consolidated basis. The Commission
shall establish a format for use by each of the state retirement
systems in submitting the information requested by the Commission
for the report. The report shall contain:

a. combined and individual rates of return of the
investment managers by category of investment, over
periods of time,

b. the data obtained pursuant to subparagraph a of this
paragraph compared with similar data for a larger
population of investment managers by asset class as
well as by style of management, and

c. any other information that the Commission may include;

2. Publish widely an annual report in simple and easily
understood language containing:

ENR. S. B. NO. 1877 Page 729
a. on an individual and consolidated basis, a report of
the changes in the investment policy statements
adopted by each retirement system in the prior year,

b. an analysis of the performance of the securities
lending program and short-term investment fund of the
custodian employed by each governing body of the
retirement systems specified in paragraph 1 of this
subsection with regard to short-term investment funds,
if any, containing retirement system monies,

c. recommendations on administrative and legislative
changes which are necessary to improve the performance
of the retirement systems in accordance with current
standards for large public fund portfolio management,

d. a summary of the results of the most recent actuarial
valuation to include total assets, total liabilities,
unfunded liability or over funded status,
contributions and any other information deemed
relevant by the Commission. The results shall be
determined using the standards prescribed by the
Government Accounting Standards Board or any successor
entity, and

e. a listing by category of the expenses of the
Commission;

3. Make recommendations to the Governor, the Speaker of the
House of Representatives, and the President Pro Tempore of the State
Senate, based upon the advice of pension consultants, for updating
or standardizing retirement system benefit designs; and

4. Make recommendations to the Governor, the Speaker of the
House of Representatives and the President Pro Tempore of the State
Senate regarding the methods for the adequate financing of benefits
authorized or required by law for performance of service upon behalf
of employers participating in any of the retirement systems
administered by the entities identified in paragraph 1 of this
subsection, including, but not limited to, recommendations regarding
the use of dedicated tax or other revenue sources or the
modification of such tax or other revenue sources to provide

ENR. S. B. NO. 1877 Page 730
additional funding to retirement systems the actuarial condition of
which would benefit from such sources.

B. The Commission shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
distribute its reports and recommendations to the Governor, the
President Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the chairman chair and vice-chairman vice chair
of the Joint Committee on Fiscal Operations. The Commission shall
make the reports widely available to the members of the Legislature,
members of the retirement systems, and the general public.

C. The Commission shall hire one or more pension fund
management consultants to assist the Commission in accomplishing its
objectives specified in subsection A of this section. Consultants
shall be chosen by a solicitation of proposals on a competitive bid
basis pursuant to standards set by the Commission. A consultant:

1. Shall be experienced in providing unbiased third-party
consulting services;

2. Shall have in its client base individual clients that are
comparable in size to the combined total assets of the retirement
systems specified in paragraph 1 of subsection A of this section;
and

3. Shall not be under contract with any of the individual
governing bodies of the various state retirement systems.

D. For purposes of this subsection, pension fund management
consultants hired by the Commission are hereby considered
fiduciaries of the state retirement systems.

1. A fiduciary with respect to the state retirement systems
shall not cause or advise a retirement system to engage in a
transaction if the fiduciary knows or should know that such
transaction constitutes a direct or indirect:

a. sale or exchange, or leasing of any property from a
retirement system to a party in interest for less than
adequate consideration or from a party in interest to

ENR. S. B. NO. 1877 Page 731
a retirement system for more than adequate
consideration,

b. lending of money or other extension of credit from a
retirement system to a party in interest without the
receipt of adequate security and a reasonable rate of
interest, or from a party in interest to a retirement
system with provision of excessive security or an
unreasonably high rate of interest,

c. furnishing of goods, services or facilities from a
retirement system to a party in interest for less than
adequate consideration, or from a party in interest to
a retirement system for more than adequate
consideration, or

d. transfer to, or use by or for the benefit of, a party
in interest of any assets of a retirement system for
less than adequate consideration.

2. A fiduciary with respect to the state retirement systems
shall not:

a. deal with the assets of a retirement system in the
fiduciary’s own interest or for the fiduciary’s own
account,

b. in the fiduciary’s individual or any other capacity
act in any transaction involving a retirement system
on behalf of a party whose interests are adverse to
the interests of a retirement system or the interests
of its participants or beneficiaries, or

c. receive any consideration for the fiduciary’s own
personal account from any party dealing with a
retirement system in connection with a transaction
involving the assets of a retirement system.

SECTION 338. AMENDATORY 74 O.S. 2021, Section 1207, is
amended to read as follows:

ENR. S. B. NO. 1877 Page 732
Section 1207. A. The State of Oklahoma recognizes the status
of the federally recognized tribal governments residing in the
geographical boundaries of the state as sovereign nations and the
state recognizes the need for further cooperation between the state
and the tribes and their citizens and the importance of the
government-to-government relationship between the state and the
tribes.

B. There is hereby created the position of Oklahoma Native
American Liaison who shall be appointed by the Governor. The
Oklahoma Native American Liaison may also serve as the Secretary of
Native American Affairs or a successor cabinet position and shall
have jurisdictional areas of responsibility related to Native
American issues and state and tribal relations. The first Oklahoma
Native American Liaison shall be appointed no later than December 1,
2012.

C. Any person appointed to the position of Oklahoma Native
American Liaison shall be a member or citizen of a federally
recognized American Indian tribe or nation that has its primary
tribal headquarters located in Oklahoma and shall have valid proof
of membership or citizenship.

D. The salary and any other expenses for the Oklahoma Native
American Liaison shall be budgeted as a separate line item through
the Governor. The Governor shall provide adequate office space,
equipment, and support necessary to enable the Oklahoma Native
American Liaison to carry out the duties and responsibilities of the
position.

E. The Oklahoma Native American Liaison shall:

1. Have the powers and duties over Native American issues and
state and tribal relation areas designated to the position by the
Governor;

2. Monitor all compacts, including gaming, tobacco, and motor
vehicle fuel compacts, entered into by the state and political
subdivisions with federally recognized Indian tribal governments
within this state;

ENR. S. B. NO. 1877 Page 733
3. Coordinate with the Office of Tribal Relations within the
Oklahoma Historical Society on the gathering, preserving and
maintaining of all compacts and agreements between federally
recognized Indian tribal governments and the state and political
subdivisions and all related records, documents and materials;

4. Monitor state agency consultation policies with tribal
governments;

5. Monitor the interactions of state agencies with tribal
governments;

6. Provide coordination between tribes and state agencies for
any activities of the state agency that will directly affect tribal
governments or their property;

7. Inform tribes about ongoing or proposed state programs that
will affect tribal governments or their property;

8. Coordinate with tribal governments to determine priorities
of interest for possible cooperation between the various agencies
and the tribal governments;

9. Inform tribes on funding opportunities through partnerships
with state agencies to address locally determined priorities of
interest agreed to by both the state and tribal governments;

10. Ensure continuing outreach to tribes and shall establish
and maintain relationships with tribes and tribal organizations; and

11. Make an annual report on the interaction between the state
and state agencies and tribal governments and shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit the report to the Governor, the Speaker of the
House of Representatives, and the President Pro Tempore of the
Senate.

SECTION 339. AMENDATORY 74 O.S. 2021, Section 1332.1, as
amended by Section 8, Chapter 245, O.S.L. 2024 (74 O.S. Supp. 2025,
Section 1332.1), is amended to read as follows:

ENR. S. B. NO. 1877 Page 734
Section 1332.1. A. The Oklahoma Employees Insurance and
Benefits Board shall collect from state agencies each month, the
premium amount, as determined by the Board, for each employee of a
state agency that participates in the Disability Insurance Program.
Said sum shall be deposited in the State Employees Disability
Insurance Reserve Fund for use in accordance with law.

B. The Oklahoma Employees Insurance and Benefits Board shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit a monthly statement of the
revenues and disbursements of the Disability Insurance Program to
the Governor, the Speaker of the House of Representatives, the
President Pro Tempore of the Senate, and the Legislative Service
Bureau. The Legislative Service Bureau shall distribute copies of
such monthly statements to the fiscal staff of the House of
Representatives and the State Senate.

C. On or before March 1 of each year, the Oklahoma Employees
Insurance and Benefits Board shall submit a report of the
actuarially-determined future needs of the Disability Insurance
Program. Said Such report shall be submitted and distributed as
provided for in subsection B of this section.

D. The Board shall provide for the continuation of dependent
health coverage to disability recipients for that period of time
when the employee is qualified as disabled but not yet received
disability benefit income.

E. The Board shall deduct all dependent health coverage
premiums due and owing from the first retroactive disability payment
and each payment thereafter.

SECTION 340. AMENDATORY 74 O.S. 2021, Section 2109, is
amended to read as follows:

Section 2109. On or before March 1 of each year, the Commission
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically provide a report to the
Speaker of the House of Representatives and the President Pro
Tempore of the Senate which shall include, but not be limited to:

ENR. S. B. NO. 1877 Page 735
1. the The number of applications for export trading companies
submitted;

2. the The number of applications for export trading companies
approved; and

3. the The number of jobs created by each export trading
company and the dollar value of export trade generated by each
export trading company.

SECTION 341. AMENDATORY 74 O.S. 2021, Section 2205, is
amended to read as follows:

Section 2205. The Commission shall prepare and, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit to the Governor and to the Legislature on the
first day of each legislative session a report of the activities of
the Department, together with all information and data in the
possession of the Department as the Commission shall deem of value
to the Governor, the Legislature, and the people of the State of
Oklahoma. Each report may contain recommendations for legislation
as the Commission may deem necessary to give full effect to all the
provisions of the Oklahoma Tourism, Parks and Recreation Enhancement
Act.

SECTION 342. AMENDATORY 74 O.S. 2021, Section 2220, is
amended to read as follows:

Section 2220. A. The Commission may prescribe and collect
reasonable rates and fees pursuant to the provisions of this section
for the services, facilities, and commodities rendered by all
property of the Commission.

1. The Commission may establish maximum rates for rooms at the
state lodges and cabins, for recreational activities, for
recreational vehicles and camping sites, and for community
facilities under control of the Commission. The method whereby the
rates are determined shall be promulgated pursuant to Article I of
the Administrative Procedures Act. At least twenty (20) days prior
to the adoption or approval of any rate changes by the Commission,
the Department shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit a

ENR. S. B. NO. 1877 Page 736
copy of the proposed rates, for informational purposes, to the
Governor, Speaker of the House of Representatives, and President Pro
Tempore of the Senate. Any change in the rates during the year when
the Legislature is not in session shall be electronically reported
in writing to the Governor, Speaker of the House of Representatives,
and President Pro Tempore of the Senate utilizing the centralized
filing system provided for in Section 378 of this act within five
(5) business days of such Commission action.

2. The Commission may establish maximum charges for all
activities at state-owned golf courses. The charges may vary among
the different golf courses according to the practices of the golf
industry. The method whereby the maximum charges are determined
shall be in accordance with rules promulgated pursuant to Article I
of the Administrative Procedures Act. At least twenty (20) days
prior to the adoption or approval of any rate changes by the
Commission, the Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit a copy of such proposed charges, for informational purposes,
to the Governor, Speaker of the House of Representatives, and
President Pro Tempore of the Senate.

3. The Commission may establish entrance or day-use charges for
the state park system. All monies collected from entrance or day-
use charges shall be used at the state parks where the charges were
collected. The Commission may establish an annual pass, or other
varied passes as appropriate to that park, for visitors. The method
whereby the maximum charges are determined, sold, and collected
shall be in accordance with rules promulgated pursuant to Article I
of the Administrative Procedures Act. At least twenty (20) days
prior to the adoption or approval of any rate changes by the
Commission, the Department shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit a copy of such proposed charges, for informational purposes,
to the Governor, Speaker of the House of Representatives, and
President Pro Tempore of the Senate.

4. Fees shall be promulgated pursuant to Article I of the
Administrative Procedures Act.

5. Fees may reflect the seasonal usage of the parks and
facilities and for promotional purposes and goals.

ENR. S. B. NO. 1877 Page 737

B. All fees, licenses, and other charges shall be posted in a
convenient place in each park. Every person using any of the
facilities in a park shall be charged the same fees, licenses, and
every other charge except:

1. Residents of this state sixty-two (62) years of age and over
and their spouses shall not be charged any admission fees for
entrance into any state-owned and -operated park. The Commission
may promulgate rules establishing different fees for residents and
nonresidents sixty-two (62) years of age and over. Identification
may be established by presentation of proof of age, residency, a
state driver license, a state license for identification only, birth
certificate or any other form of identification authorized by the
Commission;

2. Individuals who have been certified as totally disabled
under state or federal law and their spouses shall be entitled to a
fifty percent (50%) reduction of fees which apply to recreational-
use facilities;

3. Children’s groups, volunteer groups as specified by the
Commission, or governmental entities that provide beneficial
services at the facility for which the fee may be reduced or waived;
and

4. Special discount rates as authorized in this section may be
waived for individuals who are members of a group being provided a
special group rate as allowed by law.

C. The failure to collect such fees, licenses and other charges
shall subject an employee of the Commission to a fine of Twenty-five
Dollars ($25.00) for each and every violation.

SECTION 343. AMENDATORY 74 O.S. 2021, Section 2236, is
amended to read as follows:

Section 2236. A. There is hereby created within the Oklahoma
Department of Commerce, the Oklahoma Film and Music Office. The
Office shall have the primary responsibility in state government for
promoting the state as a location for producing motion pictures,
television programs, videos and recording or performing music. The

ENR. S. B. NO. 1877 Page 738
Office shall assist the motion picture, television and video film
and music industries by providing production contacts in the state,
suggesting possible filming, performing, publishing, and recording
locations, and other activities that may be required to promote the
state as a filming and music center. The Office shall develop
resource guides, a database, and a web site. The Office shall
develop listings of music festivals and music events being held in
Oklahoma.

B. The Oklahoma Film and Music Office shall cooperate with
other state and local offices as required to promote the film and
music industries in this state.

C. The Oklahoma Film and Music Office shall establish a film
production registration program. Under the program, film production
companies shall be required to register with the Office prior to
starting production on a film located in the state. The Office
shall not require production companies to pay a fee for
registration. The purpose of the program shall be to allow the
Office to accurately track the number of filming productions
occurring in the state and the economic impact of those productions.

D. The Oklahoma Film and Music Office shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit an annual report to the Governor, the Speaker
of the House of Representatives, and the President Pro Tempore of
the Senate prior to July 1 of each year regarding the activities of
the Office. The report shall state the number of filming
productions that the Office has helped bring to the state and the
economic impact of those productions, and provide similar
information concerning the efforts of the Office to promote the
music industry in this state.

E. On the effective date of this act, all administrative rules
promulgated by the Oklahoma Tourism and Recreation Department
regarding the Oklahoma Film and Music Office shall be transferred to
and become a part of the administrative rules of the Oklahoma
Department of Commerce. The Office of Administrative Rules in the
Office of the Secretary of State shall provide adequate notice in
the Oklahoma Register of the transferred rules and shall place the
transferred rules under the Administrative Code section of the
Oklahoma Department of Commerce. On the effective date of this act,

ENR. S. B. NO. 1877 Page 739
any amendment, repeal, or addition to the transferred rules shall be
under the rulemaking authority of the Oklahoma Department of
Commerce. The Department of Commerce may enact rules to administer
programs within the Oklahoma Film and Music Office.

SECTION 344. AMENDATORY 74 O.S. 2021, Section 2276.2, is
amended to read as follows:

Section 2276.2. A. The Oklahoma Tourism and Recreation
Commission shall discharge their duties as trustees of the Oklahoma
State Park Trust Fund created in Section 2276.1 of this title,
hereafter referred to as the “Trust Fund”:

1. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of
an enterprise of a like character and with like aims;

2. By diversifying the investments of the Trust Fund so as to
minimize the risk of large losses, unless under the circumstances it
is clearly prudent not to do so; and

3. In accordance with the laws, documents and instruments
governing the Trust Fund.

B. The Commission may procure insurance indemnifying the
members of the Commission from personal loss or accountability from
liability resulting from the action or inaction of a member as a
trustee.

C. The Commission may utilize the written investment policy
developed by the State Treasurer for the investment of public funds
for the investment and management of the Trust Fund. Investments of
the Trust Fund may be consistent with the guidelines set forth in
Section 89.2 of Title 62 of the Oklahoma Statutes which establishes
the investment requirements for public funds by the State Treasurer.

D. Funds and revenues for investment by the Commission shall be
placed with a custodian selected by the Commission. Payment of any
fees for the services of a custodian may be paid from the income and
investment return on the Trust Fund. The custodian may be the State
Treasurer or a bank or trust company offering pension fund master

ENR. S. B. NO. 1877 Page 740
trustee and master custodial services. If other than the State
Treasurer is utilized, the custodian shall be chosen by a
solicitation of proposals on a competitive bid basis pursuant to
standards set by the Commission. In compliance with the investment
policy guidelines of the Commission, the custodian bank or trust
company shall be contractually responsible for ensuring that all
monies of the Trust Fund are invested in income-producing investment
vehicles at all times. If a custodian bank or trust company has not
received direction from the Commission as to the investment of the
monies of the Trust Fund in specific investment vehicles, the
custodian bank or trust company shall be contractually responsible
to the Commission for investing the monies in appropriately
collateralized short-term interest-bearing investment vehicles. If
the State Treasurer is utilized as the custodian and has not
received direction from the Commission as to the investment of the
monies of the Trust Fund in specific investment vehicles, the State
Treasurer shall invest the monies in accordance with the investment
policy developed by the State Treasurer for investment of public
funds and in a manner consistent with the guidelines for the
investment of public funds set forth in Section 89.2 of Title 62 of
the Oklahoma Statutes.

E. By November 1, 2006, and prior to August 1 of each year
thereafter, the Commission shall develop a written investment plan
for the Trust Fund.

F. The Commission shall compile quarterly financial reports of
all the funds and accounts of the Trust Fund on a fiscal year basis.
The reports shall include several relevant measures of investment
value, including acquisition cost and current fair market value with
appropriate summaries of total holdings and returns. The report
shall be electronically distributed to the Director of the
Legislative Service Bureau utilizing the centralized filing system
provided for in Section 378 of this act.

G. After July 1 and before October 1 of each year, the
Commission shall, utilizing the centralized filing system provided
for in Section 378 of this act, electronically publish an annual
report presented in simple and easily understood language. The
report shall be submitted to the Governor, the Speaker of the House
of Representatives, the President Pro Tempore of the Senate, and the
Director of the Legislative Service Bureau. The annual report shall

ENR. S. B. NO. 1877 Page 741
cover the operation of the Trust Fund during the past fiscal year,
including income, disbursements, and the financial condition of the
Trust Fund at the end of the fiscal year. The annual report shall
also contain the information issued in the quarterly reports
required pursuant to subsection F of this section as well as a
summary of the results of the most recent actuarial valuation to
include total assets, total liabilities, unfunded liability or over-
funded status, contributions and any other information deemed
relevant by the Commission.

SECTION 345. AMENDATORY 74 O.S. 2021, Section 2901.4, is
amended to read as follows:

Section 2901.4. A. 1. The Oklahoma Department of Commerce and
the Oklahoma Housing Finance Agency shall develop a statewide
affordable housing strategy and update such strategy periodically.

2. The strategy shall include the real-time data collected and
analyzed on the current condition of affordable housing in Oklahoma.

3. The strategy shall identify needs for affordable housing
particularly in nonmetropolitan areas of the state and in areas
experiencing growth.

4. The strategy shall be coordinated with federal, state, and
local housing providers to leverage new resources for affordable
housing in Oklahoma.

B. An initial A report on such housing strategy shall be
electronically provided to the Governor, the President Pro Tempore
of the Senate, the Speaker of the House of Representatives, and the
Secretary of Commerce no later than January 1, 1999, and shall be
updated no later than January 1 of each year utilizing the
centralized filing system provided for in Section 378 of this act.

SECTION 346. AMENDATORY Section 2, Chapter 22, 1st
Extraordinary Session, O.S.L. 2023 (74 O.S. Supp. 2025, Section
2903.1), is amended to read as follows:

Section 2903.1. The Oklahoma Homebuilder Program shall be
administered by the Oklahoma Housing Finance Agency (OHFA). The
program shall create more affordable single family housing units

ENR. S. B. NO. 1877 Page 742
across the State of Oklahoma. The program shall be a loan program
for homebuilders at interest rates as low as zero percent (0%),
providing loans to build single family housing units. The program
shall fund both urban and rural housing developments across the
state. The program shall give preference to applicants seeking to
build homes in communities that have been under a federally declared
natural disaster within the last twelve (12) months. Additionally,
participants in this program shall not be eligible for the Oklahoma
Affordable Housing Tax Credit as found in Section 2357.403 of Title
68 of the Oklahoma Statutes. OHFA may promulgate rules to
administer the Oklahoma Homebuilder Program. OHFA shall, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically provide a yearly report beginning July 1, 2024,
to the Governor, the Speaker of the Oklahoma House of
Representatives, the President Pro Tempore of the Oklahoma State
Senate, the House Appropriations and Budget Chair, and the Senate
Appropriations Chair detailing how many awards have been made and
how many single family housing units have been built to date, along
with other program information deemed relevant by OHFA.

SECTION 347. AMENDATORY Section 4, Chapter 22, 1st
Extraordinary Session, O.S.L. 2023 (74 O.S. Supp. 2025, Section
2903.3), is amended to read as follows:

Section 2903.3. The Oklahoma Increased Housing Program shall be
administered by the Oklahoma Housing Finance Agency (OHFA). The
goal of the program is to help create more affordable housing across
the State of Oklahoma. The program shall help both developers and
homebuyers. Developers may apply for gap financing in building both
single family and multi-family homes across the state. Homebuyers
may apply for a grant assisting in making their down payments in
purchasing a home. The program shall fund both urban and rural
housing developments across the state. The program shall give
preference to applicants who are looking to develop or buy housing
in communities that have been under a federally declared disaster
within the last twelve (12) months. Additionally, participants in
the program shall not be eligible for the “Oklahoma Affordable
Housing Tax Credit” as found in Section 2357.403 of Title 68 of the
Oklahoma Statutes. OHFA may promulgate rules to develop the
Oklahoma Increased Housing Program. OHFA shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically provide a yearly report beginning July 1, 2024, to

ENR. S. B. NO. 1877 Page 743
the Governor, the Speaker of the Oklahoma House of Representatives,
the President Pro Tempore of the Oklahoma State Senate, the House
Appropriations and Budget Chair, and the Senate Appropriations Chair
detailing how many awards have been made to both developers and to
homebuyers, how many additional housing units have been built, along
with other program information deemed relevant by OHFA.

SECTION 348. AMENDATORY 74 O.S. 2021, Section 3117, is
amended to read as follows:

Section 3117. No agency, constitutionally or statutorily
created state board, bureau, commission, office, authority, public
trust in which the state is a beneficiary, or interstate commission,
except governing boards for entities within The Oklahoma State
System of Higher Education, shall establish or increase fees, except
during such times as the Legislature is in session, unless
specifically mandated by the Legislature or federal legislation, or
when the failure to establish or increase fees would conflict with
an order issued by a court of law.

Prior to the establishment or increase of a fee, the agency,
constitutionally or statutorily created state board, bureau,
commission, office, authority, public trust in which the state is a
beneficiary, or interstate commission, except governing boards for
entities within The Oklahoma State System of Higher Education for
which fees are reported pursuant to Section 3218.2 of Title 70 of
the Oklahoma Statutes, shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
notify, in writing, the Governor, the Speaker of the House of
Representatives, the Government Operations, Agency Oversight and
Administrative Rules Committee, and the President Pro Tempore of the
Senate of the intended action. The notice shall include
justification for the fee or fee increase and all supportive
documentation.

SECTION 349. AMENDATORY 74 O.S. 2021, Section 3122, is
amended to read as follows:

Section 3122. A. For purposes of the Government Transparency
Act of 2019, “state agency” shall have the same meaning pursuant to
Section 3301 of Title 74 of the Oklahoma Statutes.

ENR. S. B. NO. 1877 Page 744
B. Upon the effective date of this act, a state agency entering
into a Memorandum of Understanding or Memorandum of Agreement with
any agency, department or any organization receiving appropriated
money, grants, contracts from the State of Oklahoma, or any other
state or funds from the government of the United States shall
publish a report on its website and the documents.ok.gov website of
all Memorandums of Understanding or Memorandums of Agreement within
fifteen (15) business days of the Memorandum’s effective date. The
report shall contain a detailed accounting of each Memorandum of
Understanding or Memorandum of Agreement which shall include:

1. The effective date of the Memorandum of Understanding or
Memorandum of Agreement;

2. The duration of the Memorandum of Understanding or
Memorandum of Agreement;

3. The entities subject to the Memorandum of Understanding or
Memorandum of Agreement;

4. The purpose of the Memorandum of Understanding or Memorandum
of Agreement; and

5. The constitutional or statutory provisions allowing for the
subject addressed in the Memorandum of Understanding or Memorandum
of Agreement.

C. When any state agency enters into a Memorandum of
Understanding or Memorandum of Agreement, and when the state
Legislature is in session, the state agency shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically provide the chair of the appropriate legislative
committee, based on the subject matter or agency executing the
document, with a copy of the Memorandum of Understanding or
Memorandum of Agreement.

D. Provided, the state agency may not publish any such report
on a Memorandum of Understanding or Memorandum of Agreement that is
privileged under law pursuant to the Oklahoma Open Records Act.
However, a report shall still be published to indicate what entities
are subject to the privileged Memorandum of Understanding or
Memorandum of Agreement and its duration.

ENR. S. B. NO. 1877 Page 745

E. Memorandums of Understanding or Memorandums of Agreement
solely between departments or agencies of this state shall cite the
state constitutional or statutory authority granted for the subject
addressed in the Memorandum of Understanding or Memorandum of
Agreement. Memorandums of Understanding or Memorandums of Agreement
between any agencies, departments and any organizations receiving
appropriated money, grants, contracts from the State of Oklahoma or
any other state, or funds from the government of the United States
shall cite the authority granted by federal or state statute and/or
or in the Constitution of the United States as well as the
Constitution of the State of Oklahoma for the subject addressed in
the Memorandum of Understanding or Memorandum of Agreement.

SECTION 350. AMENDATORY 74 O.S. 2021, Section 3601.2, is
amended to read as follows:

Section 3601.2. A. Beginning July 1, 2013, each agency, board,
commission, department, or program in the executive branch of state
government shall establish the salary of each of the chief executive
officers for which they have appointing authority. Such salary
shall be set between the minimum and maximum of the range specified
in the annual compensation reports required by paragraph 5 of
Section 840-1.6A of this title, for full-time employees only.

B. All increases require certification of the appointing
authority that said action can be implemented for the current fiscal
year and subsequent fiscal year without the need for additional
funding. The agency, board, commission, department, or program
shall report increases granted under this section to the Office of
Management and Enterprise Services on an annual basis by August 1 of
each year. The Office of Management and Enterprise Services shall,
utilizing the centralized filing system provided for in Section 378
of this act, electronically forward a report of such increases to
the Governor, President Pro Tempore of the Senate, and Speaker of
the House of Representatives no later than September 1 of each year.

C. Every three (3) years beginning with fiscal year 2013, the
Office of Management and Enterprise Services shall review these
salary ranges and report on and make recommendations on proposed
salary ranges in its annual compensation reports mandated by
paragraph 5 of Section 840-1.6A of this title. Such recommendations

ENR. S. B. NO. 1877 Page 746
shall be made no later than February 1 for chief executive officers
in all state agencies, boards, commissions, departments, or programs
in the executive branch of state government, including but not
limited to those specified in Section 3601.1 of this title.

SECTION 351. AMENDATORY 74 O.S. 2021, Section 3602, is
amended to read as follows:

Section 3602. The following agencies, boards, commissions,
departments, and institutions shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically file a quarterly report with the Governor, the
Speaker of the House of Representatives, and the President Pro
Tempore of the Senate, showing the increase or decrease in employees
employed by them during the fiscal quarter immediately preceding the
filing of the report:

1. Oklahoma State Regents for Higher Education;

2. Board of Regents of Oklahoma Colleges; and

3. Every institution comprising the Oklahoma State System of
Higher Education.

SECTION 352. AMENDATORY 74 O.S. 2021, Section 3917, is
amended to read as follows:

Section 3917. A. Any statutory entity enumerated in the
Oklahoma Sunset Law shall, if re-created, be placed in this act to
be terminated or re-created not more than six (6) years thereafter.

B. The Oklahoma Department of Libraries shall monitor actions
of the State Legislature and maintain a list of all agencies,
boards, commissions, committees, or other entities created or
authorized by law, and all entities created by a Governor’s
Executive Order. The updated list shall be electronically provided
to the Governor, the President Pro Tempore of the Oklahoma Senate,
the Speaker of the Oklahoma House of Representatives, and the chairs
of the appropriate House or Senate sunset committee within thirty
(30) days after sine die adjournment of each legislative session
utilizing the centralized filing system provided for in Section 378
of this act.

ENR. S. B. NO. 1877 Page 747

SECTION 353. AMENDATORY 74 O.S. 2021, Section 5003.7, as
last amended by Section 3, Chapter 133, O.S.L. 2025 (74 O.S. Supp.
2025, Section 5003.7), is amended to read as follows:

Section 5003.7. A. The Oklahoma Department of Commerce shall
prepare, with the cooperation of the Oklahoma business community,
agricultural community, financial community, universities, labor,
the state executive and legislative branches, and the Oklahoma
Workforce Commission, a five-year economic development plan and
annual updates for this state.

1. The purpose of the plan shall be to identify significant
economic, social, and demographic trends which may have both short-
term and long-term impacts on the state and local economy and to
present strategies and recommendations that the state and local
political subdivisions might adopt to improve or stabilize the
economy.

2. The goals of the plan shall include the development of a
diversified state economy; the increase of employment; the maximum
use of federal, state, and local funds to achieve the goals or
recommendations included in the plan; the maximum investment of
capital in the economy of the state; and the improvement of the
quality of life in the state.

3. The plan wherever possible shall make recommendations to
encourage intergovernmental cooperation and public and private
cooperation.

4. The plan shall include an economic development strategy for
the state that addresses target industries, site development, and
workforce needs to meet the state goals.

5. Copies of the plan and the annual updates shall be submitted
electronically to the Oklahoma Advisory Committee on
Intergovernmental Relations, the Governor, the Speaker of the House
of Representatives, the President Pro Tempore of the Senate and the
members of the Legislative Evaluation and Development Committee, as
created in Section 5090.1 of this title, utilizing the centralized
filing system provided for in Section 378 of this act, and be made

ENR. S. B. NO. 1877 Page 748
available to the public on the Department’s website on the first day
of each legislative session.

6. The Department shall develop and manage a complete economic
information system which will support the five-year planning
process, and which will make available complete and timely
information on the state economy. The economic information system
shall be operated by public or private Oklahoma universities or an
Oklahoma enterprise capable of providing such services in a cost-
effective manner.

B. The Chief Executive Officer of the Oklahoma Department of
Commerce shall present the strategic plan to the Oklahoma Department
of Commerce Board, as created in Section 4 of this act, for
approval.

C. The Department, in conjunction with the Oklahoma Development
Finance Authority, is authorized to develop an infrastructure
program which will enable political subdivisions of this state to
finance public works projects in order to modify or improve existing
public facilities for purposes of bringing such facilities, and the
operation thereof, into compliance with and maintaining compliance
with federal, state and local laws and regulations pertaining to the
protection of the public health and the environment.

D. The Chief Executive Officer shall develop an annual business
plan for the Department. The business plan shall include the need
and mission of each division of the Department created by law or the
Chief Executive Officer and an analysis of past costs and benefits
and future projected costs and benefits to the state of the programs
of each division of the Department. The business plan shall be
consistent with the goals of the recurring five-year plan specified
in this section. The Chief Executive Officer shall distribute
copies of the business plan by such means that will make it widely
available to communities, firms, and local economic development
managers throughout this state.

SECTION 354. AMENDATORY 74 O.S. 2021, Section 5003.9, is
amended to read as follows:

Section 5003.9. The Oklahoma Department of Commerce shall
submit to the Legislature performance review information for the

ENR. S. B. NO. 1877 Page 749
programs it operates or funds. This information shall be compiled
into a report that shall be electronically submitted to the
President Pro Tempore of the Senate, the Speaker of the House of
Representatives, the Chairman Chair of the Senate Appropriations
Committee, and the Chairman Chair of the House of Representatives
Appropriations and Budget Committee by February 1 of each year
utilizing the centralized filing system provided for in Section 378
of this act. The report shall be designed to assist the
appropriation committees in determining funding priorities and
should provide the best available information regarding the
effectiveness of these programs. This report shall complement the
Department’s annual budget request.

The report shall be structured so that:

1. The need for the program is clearly established;

2. The goals of the program are clearly defined;

3. Measurable objectives are set forth;

4. Actual performance data is provided and explained;

5. Performance is evaluated against objectives; and

6. Future funding recommendations and program benefits are
outlined.

SECTION 355. AMENDATORY 74 O.S. 2021, Section 5003.10,
as amended by Section 6, Chapter 377, O.S.L. 2024 (74 O.S. Supp.
2025, Section 5003.10), is amended to read as follows:

Section 5003.10. The Oklahoma Department of Commerce shall have
the authority to:

1. Disseminate information concerning the industrial,
commercial, governmental, educational, cultural, agricultural,
business, and other advantages and attractions of the state;

2. Assist public and private agencies in the preparation of
informational and publicity programs designed to attract or retain
business and industry for the state;

ENR. S. B. NO. 1877 Page 750

3. Obligate and expend funds for services performed by local
political subdivisions of the state, state agencies, including
universities and colleges within and without the state, and federal
agencies for research and training in conformity with the general
state laws governing such activity; and apply for, accept,
administer and expend grants from the federal government and any
other public or private sources for research and training purposes;

4. Conduct, publish, and disseminate or encourage research
designed to further new and more extensive uses of the natural and
other resources of the state and designed to develop and
commercialize new products and commercial processes;

5. Study trends and developments in the industries of the state
and analyze the reasons underlying such trends; study costs within
the state; and make recommendations regarding circumstances
promoting or hampering business and industrial development;

6. Generally gather, compile and make available economic
analyses and statistical information relating to business, trade,
commerce, industry, transportation, communication, natural
resources, population, and other like subjects in this state, with
authority to call upon other agencies, universities, and colleges of
the state for statistical data and results obtained by them, and to
arrange and compile such economic analyses and statistical
information in such a manner as it deems advisable;

7. Study such other scientific, industrial, financial, and
economic issues as, in the judgment of the Department, shall be
deemed of value to the people of the state;

8. Support and assist the efforts of state, regional and local
development organizations, industrial committees, chambers of
commerce, agricultural organizations, labor organizations, and other
similar public and private agencies to obtain new and to foster
expansion of existing service, industrial and manufacturing
facilities, businesses and enterprises; and to foster community
improvements in leadership, expertise, human development,
infrastructure, public facilities and quality of life; and to expand
data availability and utilization opportunities;

ENR. S. B. NO. 1877 Page 751
9. Maintain a continuing evaluation of the sources available
for the financing of the development or expansion of industrial,
agricultural, and commercial facilities in this state through both
public and private agencies;

10. Assist in obtaining financing for the development and
expansion of industrial, agricultural, and commercial facilities in
the state;

11. Serve as the state’s official liaison agency between
persons interested in locating new economic enterprises in Oklahoma
and state and local groups seeking new enterprises. In this
respect, the Department shall aid communities in organizing for and
obtaining new businesses and expanding existing businesses and shall
process requests which reflect interest in locating economic
enterprises in the state;

12. Promote the sale and facilitate the marketing of Oklahoma
products including agricultural and value-added products in the
international market;

13. Encourage the location of foreign manufacturing plants and
other industries in Oklahoma;

14. Coordinate the international efforts of the various state
agencies without violating the individual authority given those
agencies by statute;

15. Coordinate and serve as liaison to the private sector as
needed;

16. Establish, subject to an annual appropriation or private
gifts, offices outside the state boundaries. The offices may be
operated by the state or may be operated pursuant to contract which
shall not be subject to the competitive bid laws of the State of
Oklahoma. The Department shall prepare an annual report concerning
the activities of the offices and, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit it to the Governor and the Legislature. The Chief Executive
Officer of the Oklahoma Department of Commerce shall notify in
writing the Governor, the President Pro Tempore of the Senate and
the Speaker of the House of Representatives that the Department

ENR. S. B. NO. 1877 Page 752
intends to establish a new office pursuant to this paragraph at
least thirty (30) days prior to the establishment of the new office
or execution of a contract;

17. Establish a system of not less than six geographic regions
for promoting new or existing businesses, assisting in the expansion
of small and medium sized manufacturers through a modernization
program, creating new jobs, and assisting local businesses,
political subdivisions, or other entities to better utilize the
services of the Department;

18. Solicit, accept and expend donations and contributions from
any source, whether public or private, in order to advertise,
promote or disseminate information which may assist in the
recruitment of companies, firms or jobs to Oklahoma, including but
not limited to the Oklahoma Quality Jobs Program Act, and any other
acts which the Department administers or which may assist the
Department in the performance of its mission. The Department shall
deposit any funds collected pursuant to this paragraph in the
“Oklahoma Department of Commerce Revolving Fund” created by Section
5012 of this title; and

19. Enter into contracts at fair market value for the rental of
office space in any facility under its control to entities engaged
in activities related to the export of goods produced in Oklahoma.
The Department shall deposit any funds collected pursuant to this
paragraph in the “Oklahoma Department of Commerce Revolving Fund”
created by Section 5012 of this title.

SECTION 356. AMENDATORY 74 O.S. 2021, Section 5003.10a,
as amended by Section 7, Chapter 377, O.S.L. 2024 (74 O.S. Supp.
2025, Section 5003.10a), is amended to read as follows:

Section 5003.10a. An office established by the Oklahoma
Department of Commerce outside the State of Oklahoma pursuant to
paragraph 16 of Section 5003.10 of this title shall not be
terminated until the Chief Executive Officer of the Oklahoma
Department of Commerce, utilizing the centralized filing system
provided for in Section 378 of this act, electronically provides a
written report to the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate of the
intent of the Chief Executive Officer to terminate the office.

ENR. S. B. NO. 1877 Page 753
Termination of the office pursuant to this section shall not occur
earlier than sixty (60) days following the date the report is filed
as provided in this section. For purposes of this section,
“termination” means a reduction in funding for an office or a change
in representation.

SECTION 357. AMENDATORY 74 O.S. 2021, Section 5010.3, is
amended to read as follows:

Section 5010.3. A. There is hereby created within the Oklahoma
Department of Commerce, the Office for Minority and Disadvantaged
Business Enterprises. The Director of the Oklahoma Department of
Commerce shall appoint a director for the Office for Minority and
Disadvantaged Business Enterprises. The appointed director shall
employ such persons as are necessary to implement the powers and
duties of the Office.

B. In performing the services set out in subsection A of this
section, the Office shall:

1. Promote the establishment of minority and disadvantaged
businesses with technical assistance;

2. Serve as a focal point and ombudsman in state government for
minority and disadvantaged business entrepreneurs and coordinate
efforts by state agencies, business development organizations, and
the private sector as they relate to the development of minority and
disadvantaged business enterprises;

3. Serve as an information clearinghouse and disseminator of
data for minority and disadvantaged businessmen by:

a. compiling and keeping updated a listing of all
minority and disadvantaged businesses in the State of
Oklahoma,

b. furnishing to all minority and disadvantaged business
enterprises that request it information relating to
the state procurement system, state-supported
construction, and state-supported subcontracting
opportunities, and

ENR. S. B. NO. 1877 Page 754
c. upon request by such a businessman, reviewing the
licensure process, regulations, and administrative
procedures of state agencies relating to private
enterprise;

4. Encourage development of capital resources for minority and
disadvantaged business entrepreneurs;

5. Strengthen the communication link between minority and
disadvantaged businessmen and the Governor’s office;

6. Assist business development organizations and activities
which require the cooperation of state agencies;

7. Provide assistance to minority and disadvantaged businesses
by advising and counseling on all phases of procurement policies, by
obtaining information concerning prime contractors in letting
subcontracts and by encouraging subcontracting by prime contractors
to minority and disadvantaged businesses;

8. Receive funding from sources other than the state to further
this assistance;

9. Make studies and conduct workshops, conferences and seminars
with owners and employees of minority and disadvantaged businesses
to enhance their understanding of business management, bidding,
licensing procedures, procurement procedures, and any other
activities incident to their positions in business;

10. Develop training and educational programs in cooperation
with institutions, associations and other state, local and federal
agencies, and coordinate the training efforts of the various
organizations presently providing technical assistance to minority
and disadvantaged businesses;

11. Encourage and provide the direction and coordination to
secure franchises and dealerships from private firms for minority
and disadvantaged businesses;

12. Continually evaluate the progress of minority and
disadvantaged businesses through monitoring and techniques of
evaluations such as surveys and feasibility studies; and

ENR. S. B. NO. 1877 Page 755

13. Review and evaluate pertinent legislation and determine its
effect upon minority and disadvantaged businesses and make
appropriate recommendations to the Governor and the Legislature.

C. The Office shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit an
annual report to the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate prior
to January 1 of each year. The report shall describe the Office’s
activities on behalf of minority and disadvantaged businesses,
including but not limited to research and development, technical
assistance, and dissemination of data and information; furthermore,
such report shall make recommendations for strengthening or
improving the business climate for minority and disadvantaged
businesses in this state through legislation or other means.
Additionally, the report shall list all businesses to which
assistance was rendered during the period covered by the report and
the nature of such assistance.

SECTION 358. AMENDATORY 74 O.S. 2021, Section 5040.4, as
amended by Section 7, Chapter 375, O.S.L. 2024 (74 O.S. Supp. 2025,
Section 5040.4), is amended to read as follows:

Section 5040.4. A. The State Department of Health shall
establish, through a competitive bid process, a statewide program to
assist medically indigent residents of Oklahoma to receive
prescriptions from drug manufacturer assistance programs.

B. Agencies including, but not limited to, the following shall
be encouraged by the Department to submit bids:

1. County offices of the Department of Human Services;

2. County health departments;

3. Community action agencies designated by the Oklahoma
Department of Commerce pursuant to Section 5038 of this title;

4. Community mental health centers;

5. Private nonprofit agencies; and

ENR. S. B. NO. 1877 Page 756

6. Public entities engaged in the delivery of social services.

C. Agencies selected by the Department to provide services
pursuant to the Rx for Oklahoma Act shall, at a minimum, demonstrate
their ability to:

1. Deliver services in a community or geographic area of the
state that is not currently receiving services pursuant to the Rx
for Oklahoma Act;

2. Maintain a dedicated telephone line and computer with
Internet access with appropriate software during normal business
hours; and

3. Have staff or volunteers available who can:

a. develop and implement community awareness initiatives
about the prescription assistance services offered by
the agency,

b. determine whether a pharmaceutical program is offered
for the drug or drugs a person needs,

c. determine whether a person is eligible for assistance
through a pharmaceutical program,

d. assist a person to make application to and enroll in a
pharmaceutical assistance program,

e. keep accurate records of the number of clients served,

f. maintain the confidentiality of all client information
including, but not limited to, the client’s identity,
application information, and other records, and

g. estimate the value of prescriptions provided to
clients under the program.

D. Eligibility for the Rx for Oklahoma Act shall be residents
of Oklahoma who:

ENR. S. B. NO. 1877 Page 757
1. Are medically indigent; or

2. Are not medically indigent but cannot reasonably afford to
pay for prescription medications.

E. The State Department of Health shall promulgate rules or
establish procedures necessary to implement the program established
by the Rx for Oklahoma Act and shall, utilizing the centralized
filing system provided for in Section 378 of this act,
electronically submit an annual report to the Legislature and the
Governor no later than January 1 of each year. The report shall
include, but not be limited to, the following:

1. A listing of entities awarded grants and the amount of each
award;

2. The number of residents served who were eligible for a drug
manufacturer assistance program and the average amount of savings
per resident;

3. The number of residents who sought assistance pursuant to
the Rx for Oklahoma Act, but were determined not to be eligible for
a drug manufacturer assistance program; and

4. A report by the Department of total expenditures. Included
within the report shall be a summary of each grantee’s
administrative, personnel, and direct services expenditures by
category relative to the grantee’s administration of the program.

SECTION 359. AMENDATORY 74 O.S. 2021, Section 5060.22,
is amended to read as follows:

Section 5060.22. A. The Oklahoma Science and Technology
Research and Development Board is authorized and instructed to,
utilizing the centralized filing system provided for in Section 378
of this act, electronically make an annual report no later than
November 1 to the Governor, the President Pro Tempore of the Senate,
and the Speaker of the House of Representatives that shall describe
the accomplishments, the expenditures, and the activities of the
prior fiscal year. The report shall include elements the Board
identifies as hampering the state’s economic progress and
recommendations for changes. The report shall include an

ENR. S. B. NO. 1877 Page 758
independent audit in accordance with auditing standards generally
accepted in the United States and the standards applicable to
financial audits contained in Government Auditing Standards, latest
revised edition, issued by the Comptroller General of the United
States, which shall examine, among other things, actions governed by
the administrative policies adopted by the Board on behalf of the
Oklahoma Center for the Advancement of Science and Technology. The
annual report shall specifically account for the ways in which the
need, mission and programs of the Center have been carried out,
including but not limited to a review of the results of the
operations and transactions according to objective measures set
forth in the business plan. The report shall recommend specific
changes in the activities of the Center which are necessary to
better carry out the need and mission described in the Oklahoma
Center for the Advancement of Science and Technology Act. The Board
shall distribute its annual report by such means that will make it
widely available to those innovative enterprises of special
importance to the Oklahoma economy.

B. The Board shall annually review and prepare a report showing
how and at what level other states fund technology-based economic
development programs. The Board shall recommend an appropriate
funding level for Oklahoma which will make these programs nationally
competitive with those of other states. The Board’s findings and
recommendations shall be included in the annual report to be
submitted to the Governor and the Legislature.

C. The Center shall adopt a threshold funding level for each of
the programs provided for by law. The threshold amount shall
provide for funding that is great enough to have a significant
impact and carry out the intent of the Legislature. If the funding
for these programs falls below the threshold, then no funding shall
be provided by the Center to the program funded below threshold
level.

D. The Board, on behalf of the Center, shall fund areas of
research and development that the Board selects as most likely to
stimulate information technology, biotechnology, genetics,
meteorology and climate studies, and emerging or developing
technology and related jobs; foster patents; result in new patents,
copyrights, trademarks, and licenses of value; pursue world-class
research teams that support the state’s primary economic development

ENR. S. B. NO. 1877 Page 759
thrusts or focus areas; and stimulate private and public investments
with the intent to encourage economic development in Oklahoma.

SECTION 360. AMENDATORY 74 O.S. 2021, Section 5062.19,
is amended to read as follows:

Section 5062.19. A. Within sixty (60) days after the end of
each fiscal year, the Oklahoma Development Finance Authority shall,
in its annual report, account for:

1. The manner in which the purpose as described in Section
5062.1 et seq. of this title has been carried out by the Oklahoma
Development Finance Authority;

2. A list of all bonds issued by the Authority and an itemized
list of costs of issuance and an evaluation of the extent to which
the purposes of the bond proceeds have been realized;

3. A list of all loans made by the Authority and a description
of projects financed;

4. Documentation and estimates of jobs created and jobs
preserved as a result of loans made by the Authority;

5. Estimates of the multiplier effects on the local and/or or
statewide economy of loans made by the Authority;

6. An analysis by size, sector, and location of the targeting
of loans by the Authority to agricultural enterprises, industrial
enterprises, and to the state and any of its political subdivisions;

7. A preliminary financial report showing the financial
condition of the Authority at the end of the fiscal year; provided,
an independent audit in accordance with generally accepted
accounting principles shall be undertaken by an accounting firm or
individual holding a permit to practice public accounting in this
state and shall be electronically submitted to the Governor, the
Speaker of the House of Representatives, the President Pro Tempore
of the Senate, Oklahoma Futures, and the Office of the State Auditor
and Inspector utilizing the centralized filing system provided for
in Section 378 of this act and in accordance with the requirements

ENR. S. B. NO. 1877 Page 760
set forth for financial statement audits in Section 212A of this
title. The audit shall include:

a. a statement of the aggregate dollar amount, if any, of
obligations which are backed by the Credit Enhancement
Reserve Fund and which are more than ninety (90) days
delinquent in their payments, and

b. a statement of payments made from the Credit
Enhancement Reserve Fund, and

c. a statement on the loss rate percentage derived by
dividing the outstanding principal balance of unpaid
obligations of the Credit Enhancement Reserve Fund by
the amount of payments made from the fund during the
fiscal year; and

8. Policy recommendations for programs which will enhance the
economic growth and development of the state.

B. All public accountants and certified public accountants, as
a condition of being approved by the Oklahoma Development Finance
Authority to perform the annual independent audit required pursuant
to this section, shall comply with the most recent “Governmental
Auditing Standards” of the Standards for Audit of Governmental
Organizations, Programs, Activities, and Functions, issued by the
United States General Accounting Office. A copy of the peer review
performed in accordance with the above standards shall be filed with
the Authority. Should the results of the peer review indicate that
material deficiencies exist in the audit work performed by the
reviewed auditing firm, the Oklahoma State Board of Public
Accountancy shall so notify the Authority, which shall immediately
remove the reviewed firm from any approved list of auditors
maintained by the Authority for a period of at least two (2) years
or until such time as the firm has demonstrated satisfactory
correction of the deficiencies reported in the peer review.

SECTION 361. AMENDATORY 74 O.S. 2021, Section 5066.7, is
amended to read as follows:

Section 5066.7. The Director of the Oklahoma Department of
Commerce shall, utilizing the centralized filing system provided for

ENR. S. B. NO. 1877 Page 761
in Section 378 of this act, electronically submit an annual report
on or before December 31 of each year to the Governor and the
Oklahoma State Legislature which shall include but not be limited
to:

1. The number of products and description thereof of products
developed to the commercial stage; and

2. The total fees collected and donations received.

SECTION 362. AMENDATORY 74 O.S. 2021, Section 5079, is
amended to read as follows:

Section 5079. On or before December 31 of each year, the
Director of the Oklahoma Department of Commerce shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically provide a report to both the Speaker of the House of
Representatives and the President Pro Tempore of the Senate which
shall include, but not be limited to:

1. The number of applications for incubators submitted;

2. The number of applications for incubators approved;

3. The number of incubators created under this act;

4. The number of tenants occupying each incubator;

5. The number of jobs provided by each incubator and tenants of
each incubator; and

6. The number of firms still operating in the state after
ending their tenancy in incubators and the number of jobs they have
provided.

SECTION 363. AMENDATORY 74 O.S. 2021, Section 5156, is
amended to read as follows:

Section 5156. A. Partnership contracts shall be signed by both
the Director of the Office of Management and Enterprise Services
(OMES) and the authorized representative of the responsible state

ENR. S. B. NO. 1877 Page 762
agency for which the public service at issue in the contract
relates.

B. The Director of OMES is authorized to receive and deposit
any money received under the contract. Any such contract shall be
sufficient to effect its purpose notwithstanding any provision of
law to the contrary, including other laws governing the sale, lease
or other disposition of property or interests therein, service
contracts or financial transactions by or for the state.

C. The Office of Public-Private Partnerships shall, utilizing
the centralized filing system provided for in Section 378 of this
act, electronically provide a report to the Speaker of the House of
Representatives and the President Pro Tempore of the Senate
explaining the value of the contract to the state and describing the
procurement process by which the contract was reached.

SECTION 364. AMENDATORY 74 O.S. 2021, Section 5402, is
amended to read as follows:

Section 5402. A. The purpose of the Oklahoma Strategic
Military Planning Commission shall be to analyze state policies
affecting military facilities currently in use by the United States
Department of Defense and the Oklahoma Army and Air National Guard
located within the state and such infrastructure as may support or
be affected by these Department of Defense or National Guard
facilities or any activity therein. Provided further that the
Commission may assist financially with projects designed to enhance
the operation, security, or support of such facilities and
associated activities, pursuant to the provisions of Section 5403 of
this title. The Commission shall also examine methods for improving
the private sector market value or potential for such military
facilities.

B. The Commission shall advise and recommend to the Governor
and to the Legislature, by reporting to the Speaker of the House of
Representatives and the President Pro Tempore of the Senate, state
policies which would:

1. Prevent Oklahoma’s military facilities from being targeted
for closing or downsizing;

ENR. S. B. NO. 1877 Page 763
2. Maximize Oklahoma’s input into the federal base closing and
realignment process;

3. Protect, to the greatest extent possible, the interests of
the communities and residents of areas located within and adjacent
to such military facilities in connection with such process;

4. Mitigate the effect of a reduction in military personnel
housed or assigned to such facilities, reduction in military
activity associated with such facilities, or other changes in either
civilian or military activity which have the potential to reduce
employment, business activity, personal income, or other economic
growth in the affected areas; and

5. Encourage and facilitate the relocation of mission
responsibilities and resources to Oklahoma military facilities from
military bases located outside Oklahoma.

C. Responsibility for the administrative direction,
coordination and support of the Commission shall be with the Office
of the Governor.

D. The Commission shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically
submit an annual written report of its findings, conclusions and
recommendations to the Governor, the Speaker of the Oklahoma House
of Representatives, and the President Pro Tempore of the Oklahoma
State Senate not later than December 31.

E. The Oklahoma Department of Commerce, the Oklahoma Tax
Commission, the Oklahoma Employment Security Commission, and other
agencies of state government shall provide such assistance to the
Commission as the Commission may require in order to perform the
duties imposed upon it.

F. Members of the Commission shall be reimbursed by their
appointing authority, except that members appointed from the
municipalities shall be reimbursed by the Oklahoma Department of
Commerce, for travel to meetings of the Commission pursuant to the
State Travel Reimbursement Act.

ENR. S. B. NO. 1877 Page 764
Legislators who serve as members of the Commission shall be
reimbursed for travel to meetings pursuant to Section 456 of Title
74 of the Oklahoma Statutes.

SECTION 365. AMENDATORY 74 O.S. 2021, Section 6112, is
amended to read as follows:

Section 6112. A. The Red River Boundary Commission shall
confer and act in conjunction with the representatives to be
appointed on behalf of the State of Texas for the following
purposes:

1. To evaluate the methods, surveys, historical maps, and other
information used to establish the boundary line between this state
and the State of Texas in the Texoma Area, as such area is defined
in the Texoma Area Boundary Agreement;

2. To determine the location of the south bank of the Red River
as the bank was located and marked by the United States Army Corps
of Engineers before the beginning of construction of Lake Texoma, in
accordance with subsection C of Article II of Section 6106 of Title
74 of the Oklahoma Statutes;

3. To redraw the boundary line between this state and the State
of Texas on any real property for which the United States Army Corps
of Engineers granted an easement, prior to August 31, 2000, to at
least two districts or authorities created under Section 59 of
Article XVI of the Texas Constitution for the construction,
operation, and maintenance of a water pipeline and related
facilities in the Texoma Area in order to negate any effects the
boundary as it is currently drawn has on property interests
associated with such easements in the Texoma Area, and to redraw the
boundary on such real property so that there is no net loss of
property between either state so as to ensure that the redrawn
boundary does not increase the political power or influence of
either state, in accordance with:

a. the Lake Texoma preconstruction survey of the south
bank of the Red River prepared by the United States
Army Corps of Engineers, or

ENR. S. B. NO. 1877 Page 765
b. other historical records or documentation of the
United States Army Corps of Engineers identifying the
location of the south bank of the Red River, if the
survey described by subparagraph a of this paragraph
is unavailable;

4. To hold hearings and conferences in this state and in the
State of Texas as necessary to accomplish the purposes of this act;
and

5. To take other action, alone or in cooperation with the State
of Texas or the United States, necessary to accomplish the purposes
of this act.

B. No later than January 15, 2022, the Commission shall report
to the Governor, the Lieutenant Governor, the President Pro Tempore
of the Senate, the Speaker of the House of Representatives, and
appropriate committees of the Legislature the Commission’s findings
and recommendations concerning joint action by this state and the
State of Texas regarding the amendment of the Texoma Area Boundary
Agreement to incorporate the boundary between this state and the
State of Texas in the Texoma Area as redrawn. No later than July
30, 2025, the Commission shall issue a final report to the Governor,
the Lieutenant Governor, the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, and appropriate
committees of the Legislature.

SECTION 366. AMENDATORY 74 O.S. 2021, Section 8303, is
amended to read as follows:

Section 8303. A. There is hereby created within the Oklahoma
Department of Commerce the Rural Action Partnership Program.

B. The Rural Action Partnership Program shall be responsible
for coordinating and assisting in:

1. Establishing a statewide toll free telephone program to
serve as a point of first contact between persons, business
entities, groups, associations, organizations, state and local
government officials, and others for purposes of facilitating
contact with service providers, providing information regarding
primarily rural economic development entities, programs, resources,

ENR. S. B. NO. 1877 Page 766
and activities and to provide assistance to persons, firms and
representatives of governmental entities attempting to establish or
expand a for-profit business in a rural area of the state;

2. Assisting in the coordination of primarily rural economic
development programs offered within the state;

3. Administering a rural economic development and employer
regional outreach program that divides the state into at least four
areas with each such area to be served by at least one rural
regional economic development coordinator who shall assist in the
establishment and coordination of rural economic development
partnerships;

4. The accumulation and organization of information to be used
as a rural economic development resource database, including, but
not limited to, contact information for persons, firms, groups,
organizations and others involved in rural economic development
issues, availability of federal, state and local incentive programs,
and, subject to available funding, the development and maintenance
of a rural development Internet web site to promote access to such
information;

5. A comprehensive survey of natural resources located or
available in primarily rural areas of the state in order to match
potential value-added business activity with such resources;

6. The sponsorship, with key economic development partners, of
periodic rural development summits or conferences for purposes of
communicating about the existence of the Rural Action Partnership
Program, availability of assistance, development of additional
services consistent with the mission of the Program and such matters
as may be conducive to improving the delivery of services with
respect to rural development programs and rural economic
development; and

7. Providing such services and developing such programs,
functions or initiatives that may be necessary for or that would
promote the development of rural resources and the rural economy.

ENR. S. B. NO. 1877 Page 767
C. The mission of the Rural Action Partnership Program shall be
to foster healthy and sustainable rural communities through small
business retention, expansion, and entrepreneurial development.

D. The primary emphasis for the regional economic development
outreach specialists shall be to serve the needs of the communities
or regions with declining populations or with economic indicators
that suggest additional information and resources would be of
benefit to improve the economic conditions of such community.

E. The Oklahoma Department of Commerce, in support of the
mission of the Rural Action Partnership Program, may request the
assistance of the Oklahoma Water Resources Board, Department of
Environmental Quality, Oklahoma Corporation Commission, Oklahoma Tax
Commission, Oklahoma Employment Security Commission, Oklahoma
Department of Agriculture, Food, and Forestry, Oklahoma Department
of Tourism, Department of Transportation, the Oklahoma State Regents
for Higher Education, the Oklahoma Department of Career and
Technology Education, or such other agencies, boards, commissions,
departments, or other entities of state government as may be
required in order to assist with the implementation of the programs
for which the Rural Action Partnership Program is responsible.

F. The Oklahoma Department of Commerce shall conduct an annual
evaluation of the Rural Action Partnership Program. Not later than
December 31, 2007, and not later than December 31 annually
thereafter, the Executive Director of the Oklahoma Department of
Commerce shall, utilizing the centralized filing system provided for
in Section 378 of this act, electronically make a report regarding
the actions and functions of the Rural Action Partnership Program to
the Governor, Speaker of the Oklahoma House of Representatives, and
the President Pro Tempore of the State Senate. The report shall
summarize the activity and results of the Program and may contain
recommendations for changes in the functions of the Program,
including changes in funding.

SECTION 367. AMENDATORY 74 O.S. 2021, Section 9053, is
amended to read as follows:

Section 9053. A. In addition to all other powers expressly
conferred upon the Oklahoma Development Finance Authority pursuant
to Section 5062.8 of Title 74 of the Oklahoma Statutes, the

ENR. S. B. NO. 1877 Page 768
Authority is hereby authorized and empowered to take the following
action:

1. To provide, with assistance from the Public Utility Division
of the Oklahoma Corporation Commission, a pooled loan program for
the efficient financing of qualified costs of unregulated utilities
pursuant to Section 6 of this act for the purposes of mitigating the
significant impact of extreme purchase costs and extraordinary costs
to customers of an unregulated utility;

2. To assess an administrative fee for the costs associated
with the Authority carrying out its power and duties under this act;
and

3. To do all things necessary or convenient to carry out the
powers expressly granted in this act.

B. The Authority shall take the following action:

1. To, utilizing the centralized filing system provided for in
Section 378 of this act, electronically notify the Governor,
President Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the Oklahoma Corporation Commission upon
issuance of a loan pursuant to this act. The notification shall be
in writing and include the amount and terms of the loan; and

2. To prepare a report annually regarding financing activity
related to the provisions of this act to be electronically submitted
to the Governor, the Attorney General, the President Pro Tempore of
the Senate, and the Speaker of the House of Representatives as of
December 1 each year, utilizing the centralized filing system
provided for in Section 378 of this act, until the debt is retired.

SECTION 368. AMENDATORY 74 O.S. 2021, Section 9076, is
amended to read as follows:

Section 9076. A. In addition to all other powers expressly
conferred upon the Oklahoma Development Finance Authority pursuant
to Section 5062.8 of Title 74 of the Oklahoma Statues, the Authority
is hereby authorized and empowered to take the following actions:

1. To issue ratepayer-backed bonds as provided in this act;

ENR. S. B. NO. 1877 Page 769

2. To establish and adjust from time to time the actual cost of
an administrative fee for the costs associated with the Authority
carrying out its power and duties under this act, to include costs
of the Corporation Commission incurred under Section 4 of this act.
The fee shall be included in the calculation of utility customer
payments created by the financing order; and

3. To do all things necessary or convenient to carry out the
powers expressly granted in this act.

B. The Authority shall take the following actions:

1. To, utilizing the centralized filing system provided for in
Section 378 of this act, electronically notify the Governor,
President Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the Oklahoma Corporation Commission upon
issuance of a ratepayer-backed bond. The notification shall be in
writing and include the amount and terms of the bond; and

2. To prepare a report annually regarding the bond activity
related to the provisions of this act, to be electronically
submitted to the Governor, the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, the Attorney General,
and the Oklahoma Corporation Commission as of December 1 each year,
utilizing the centralized filing system provided for in Section 378
of this act, until the debt is retired.

SECTION 369. AMENDATORY Section 5, Chapter 229, O.S.L.
2022, as amended by Section 1, Chapter 336, O.S.L. 2023 (74 O.S.
Supp. 2025, Section 9204), is amended to read as follows:

Section 9204. A. There is hereby created until June 30, 2028,
the Oklahoma Broadband Office, to serve as the state’s sole
administrator of the functions, powers, and duties assigned to the
Office in the Oklahoma Broadband Expansion Act or under law.
Effective June 30, 2028, the Office shall terminate and all
personnel positions shall be abolished. The Office shall utilize
the year prior to the termination date for the purpose of ceasing
the Office’s affairs.

ENR. S. B. NO. 1877 Page 770
B. The Office shall receive administrative assistance from the
Office of Management and Enterprise Services (OMES), which shall
provide, through existing OMES resources, administrative assistance
upon request in writing or electronic correspondence from the
Office’s Executive Director. OMES shall provide assistance in the
manner requested within thirty (30) days of determination by the
Agency that the request is able to be fulfilled. If for any reason
the request cannot be fulfilled within thirty (30) days, the Office
and OMES shall enter into a written agreement expressing an agreed
upon timeline for fulfilling the needs of the Office. In the event
that the request cannot be fulfilled, OMES shall respond in writing
within ten (10) days of the request providing the reasoning for
denial. If the request cannot be fulfilled utilizing existing
resources, OMES may charge the Office for the actual cost to fulfill
the request.

C. The Office shall be governed by the Broadband Governing
Board, created pursuant to Section 9202 of this title.

D. The Office shall be advised by the Broadband Expansion
Council, created pursuant to Section 9203 of this title.

E. The Office shall have an Executive Director who shall
oversee the operations of the Office including, but not limited to:

1. Overseeing the creation, maintenance, and completion of the
Statewide Broadband Plan;

2. Communicating the state’s progress in achieving the goals
and implementation of the Statewide Broadband Plan;

3. The creation, housing, and updating of a statewide broadband
services map;

4. Overseeing of grant applications and awards for connectivity
and affordability projects;

5. Making recommendations to the Board regarding procedural and
administrative rules for the Office; and

6. Employment and management of Office staff subject to the
limitations and requirements of the Oklahoma Broadband Expansion Act

ENR. S. B. NO. 1877 Page 771
and subject to the limitations and requirements of the Broadband
Governing Board.

F. The Executive Director shall regularly report to the Council
and the Board and shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically submit an
annual report to the Office of the Speaker of the House of
Representatives and the Office of the President Pro Tempore of the
Senate.

G. The Office may hire legal counsel as it is deemed necessary
by the hiring entity. The Office shall be subject to the provisions
of Section 20i of this title.

SECTION 370. AMENDATORY Section 6, Chapter 229, O.S.L.
2022 (74 O.S. Supp. 2025, Section 9205), is amended to read as
follows:

Section 9205. A. The Oklahoma Broadband Office shall:

1. Conduct a study of and continually monitor broadband access
in the state to assess:

a. existing capabilities to access broadband
telecommunication services,

b. the costs of obtaining broadband services from
existing providers,

c. the estimated cost to improve broadband access, and

d. the likelihood of changes in broadband access in the
near and intermediate future based on available
information regarding public and private programs to
enhance access and adoption; and

2. Maintain, update, and execute the Statewide Broadband Plan
as necessary.

B. The Office shall incorporate the information as described in
subsection A of this section into a mapping system that depicts
resources, broadband coverage, connectivity speeds, and other such

ENR. S. B. NO. 1877 Page 772
features as the Office deems relevant. The Office may also purchase
data sets it deems necessary to complete such mapping system.

C. The Office shall establish policies and regulations as may
be necessary to implement the provisions of this act.

D. The Office shall establish policy as needed to implement a
process whereby impacted parties may challenge or protest data and
information published on the Office’s mapping system. The process
shall include, but not be limited to, features that:

1. Are heard and ruled on at the Office level;

2. Provide for a ruling by the Office within sixty (60) days of
the submitted challenge or protest; and

3. Upon successful protest action, result in a timely
correction of the map.

E. The Office shall perform and maintain a study of existing
grants, incentives, and programs that may improve physical access to
broadband along with adoption of broadband technologies. The
grants, incentives, and programs may include federal funds, state
funds or resources, tribal funds or resources, donated funds, or
funding available from foundations, endowments or similar resources,
state or local tax incentives, state or local financing incentives
or options, or federal, tribal, state, or local regulatory policies
that would be conducive to improving existing broadband access or
establishing access where it does not currently exist. The Office
shall regularly report on the currently available grants,
incentives, and programs and how best to utilize each.

F. The Office shall create, and update no less than biannually,
a Statewide Broadband Plan. The Plan shall detail what areas are
served, underserved, or unserved according to the prevailing
definitions of the FCC, and how best to improve the infrastructure
and connectivity in underserved and unserved areas. The Plan shall
include, but shall not be limited to, detailing a pathway for
ninety-five percent (95%) of the state’s population to be adequately
served by June 30, 2028.

ENR. S. B. NO. 1877 Page 773
G. The Office shall create the Capital Projects Fund Grant
Report or provide the necessary information to the state entity
drafting the Report. The Report shall be submitted to the
Department of the Treasury no later than September 24, 2022. The
Office shall maintain the Report and submit any and all additional
information as required. The Office shall work with the Joint
Committee to ensure all approved broadband projects utilizing funds
from the Capital Projects Fund follow the correct reporting
requirements based on Department of Treasury guidance.

H. Additionally, the Office is authorized to seek, apply for,
and administer funding through grant opportunities. The Office is
also authorized to administer grant funding awards to recipients and
subrecipients.

I. On or before October 31, 2022, the Office, with the advice
of the Council, shall develop a set of broadband grants or incentive
awards guidelines to be approved by the Board. The grants and
incentive awards shall be for unserved and underserved areas. The
Office shall submit a copy of the guidelines to the Office of the
Speaker of the Oklahoma House of Representatives, the Office of the
President Pro Tempore of the Oklahoma State Senate, and to the
offices of the chairs of the appropriate legislative committees.
The guidelines shall:

1. Consider a weighted approach for awards based upon the
following:

a. the area’s need for services, including, but not
limited to, whether the area is underserved or
unserved,

b. whether there are existing broadband assets in the
area, based on the statewide map,

c. whether existing federal, state, local, tribal, or
private resources have been allocated to broadband
services in the area,

d. a preference for federal, state, local, tribal, or
private partnerships, and

ENR. S. B. NO. 1877 Page 774
e. the capacity of the provider to maintain assets for an
extended period of time;

2. Recommend any necessary controls including, but not limited
to, capping the dollar amount of awards, allowing for an auditing
process, and a process that allows for award clawbacks. These
controls shall be in place to ensure the maximum efficiency of the
incentive award and to protect against waste, fraud, or abuse; and

3. Include annual reporting requirements of award recipients to
assess effectiveness of such incentives which shall include, but not
be limited to, changes in coverage resulting from implementing
awarded grants and incentives.

SECTION 371. AMENDATORY Section 3, Chapter 231, O.S.L.
2022 (74 O.S. Supp. 2025, Section 12003), is amended to read as
follows:

Section 12003. A. 1. The Treasurer shall prepare and maintain
and provide to each state governmental entity a list of financial
companies that boycott energy companies. In maintaining the list,
the Treasurer may:

a. review and rely, as appropriate in the Treasurer’s
judgment, on publicly available information regarding
financial companies including information provided by
the state, nonprofit organizations, research firms,
international organizations, and governmental
entities, and

b. request written verification from a financial company
that it does not boycott energy companies and rely, as
appropriate in the Treasurer’s judgment and without
conducting further investigation, research, or
inquiry, on a financial company’s written response to
the request.

2. A financial company that fails to provide to the Treasurer a
written verification under subparagraph b of paragraph 1 of this
subsection before the sixty-first day after receiving the request
from the Treasurer is presumed to be boycotting energy companies.

ENR. S. B. NO. 1877 Page 775
3. The Treasurer shall update the list annually or more often
as the Treasurer considers necessary, but not more often than
quarterly, based on information from, among other sources, those
listed in subparagraph a of paragraph 1 of this subsection.

4. Not later than the thirtieth day after the date the list of
financial companies that boycott energy companies is first provided
or updated, the Treasurer shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically file
the list with the presiding officer of each house of the Legislature
and the Attorney General and post the list on a publicly available
Internet website.

5. The Treasurer may retain third-party consultants to assist
in the implementation of the provisions of this act.

B. Not later than the thirtieth day after the date a state
governmental entity receives the list provided under paragraph 1 of
subsection A of this section, the state governmental entity shall
notify the Treasurer of the listed financial companies in which the
state governmental entity owns direct holdings or indirect holdings.

C. 1. For each listed financial company identified under
paragraph 1 of subsection A of this section, the state governmental
entity shall send a written notice:

a. informing the financial company of its status as a
listed financial company,

b. warning the financial company that it may become
subject to divestment by state governmental entities
after the expiration of the period described by
paragraph 2 of this subsection, and

c. offering the financial company the opportunity to
clarify its activities related to companies described
by paragraph 1 of subsection A of this section.

2. Not later than the ninetieth day after the date the
financial company receives notice under paragraph 1 of this
subsection, the financial company shall cease boycotting energy

ENR. S. B. NO. 1877 Page 776
companies to avoid qualifying for divestment by state governmental
entities.

3. If, during the time provided by paragraph 2 of this
subsection, the financial company ceases boycotting energy
companies, the Treasurer shall remove the financial company from the
list maintained under paragraph 1 of subsection A of this section,
and this subsection will no longer apply to the financial company
unless it resumes boycotting energy companies.

4. If, after the time provided by paragraph 2 of this
subsection expires, the financial company continues to boycott
energy companies, the state governmental entity shall sell, redeem,
divest, or withdraw all publicly traded securities of the financial
company, except securities described by subsection E of this
section, according to the schedule provided under subsection D of
this section.

D. 1. A state governmental entity required to sell, redeem,
divest, or withdraw all publicly traded securities of a listed
financial company shall comply with the following schedule:

a. at least fifty percent (50%) of those assets shall be
removed from the state governmental entity’s assets
under management not later than the one-hundred-
eightieth day after the date the financial company
receives notice pursuant to paragraph 1 of subsection
C of this section unless the state governmental entity
determines, based on a good-faith exercise of its
fiduciary discretion and subject to subparagraph b of
this subsection, that a later date is more prudent,
and

b. one hundred percent (100%) of those assets shall be
removed from the state governmental entity’s assets
under management not later than the three-hundred-
sixtieth day after the date the financial company
receives notice pursuant to paragraph 1 of subsection
C of this section.

2. If a financial company that ceased boycotting energy
companies after receiving notice pursuant to paragraph 1 of

ENR. S. B. NO. 1877 Page 777
subsection C of this section resumes its boycott, the state
governmental entity shall send a written notice to the financial
company informing it that the state governmental entity will sell,
redeem, divest, or withdraw all publicly traded securities of the
financial company according to the schedule in paragraph 1 of
subsection D of this section.

3. Except as provided by paragraph 1 of subsection D of this
section, a state governmental entity may delay the schedule for
divestment under that subsection only to the extent that the state
governmental entity determines, in the state governmental entity’s
good-faith judgment, and consistent with the entity’s fiduciary
duty, that divestment from listed financial companies will likely
result in a loss in value or a benchmark deviation described by
paragraph 1 of subsection F of this section.

4. If a state governmental entity delays the schedule for
divestment, the state governmental entity shall, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically submit a report to the Treasurer, the presiding
officer of each house of the Legislature, and the Attorney General
stating the reasons and justification for the delay in divestment by
the state governmental entity from listed financial companies. The
report shall include documentation supporting its determination that
the divestment would result in a loss in value or a benchmark
deviation described by paragraph 1 of subsection F of this section
including objective numerical estimates. The state governmental
entity shall update the report every six (6) months.

E. A state governmental entity is not required to divest from
any indirect holdings in actively or passively managed investment
funds or private equity funds. The state governmental entity shall
submit letters to the managers of each investment fund containing
listed financial companies requesting that they remove those
financial companies from the fund or create a similar actively or
passively managed fund with indirect holdings devoid of listed
financial companies. If a manager creates a similar fund with
substantially the same management fees and same level of investment
risk and anticipated return, the state governmental entity may
replace all applicable investments with investments in the similar
fund in a time frame consistent with prudent fiduciary standards but

ENR. S. B. NO. 1877 Page 778
not later than the four-hundred-fiftieth day after the date the fund
is created.

F. 1. A state governmental entity may cease divesting from one
or more listed financial companies only if clear and convincing
evidence shows that:

a. the state governmental entity has suffered or will
suffer a loss in the value of assets under management
by the state governmental entity as a result of having
to divest from listed financial companies under this
subsection, or

b. an individual portfolio that uses a benchmark-aware
strategy would be subject to an aggregate expected
deviation from its benchmark as a result of having to
divest from listed financial companies under this
subsection.

2. A state governmental entity may cease divesting from a
listed financial company as provided by this section only to the
extent necessary to ensure that the state governmental entity does
not suffer a loss in value or deviate from its benchmark as
described by paragraph 1 of this subsection.

3. Before a state governmental entity may cease divesting from
a listed financial company under this section, the state
governmental entity shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically provide a
written report to the Treasurer, the presiding officer of each house
of the Legislature, and the Attorney General setting forth the
reason and justification, supported by clear and convincing
evidence, for deciding to cease divestment or to remain invested in
a listed financial company. The state governmental entity shall
update the report required by this subsection semiannually, as
applicable.

4. This section does not apply to reinvestment in a financial
company that is no longer a listed financial company.

ENR. S. B. NO. 1877 Page 779
G. Except as provided in subsection F of this section, a state
governmental entity shall not acquire securities of a listed
financial company.

SECTION 372. AMENDATORY Section 4, Chapter 231, O.S.L.
2022 (74 O.S. Supp. 2025, Section 12004), is amended to read as
follows:

Section 12004. A. Not later than January 1 of each year, each
state governmental entity shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically file
a publicly available report with the Treasurer, the presiding
officer of each house of the Legislature, and the Attorney General
that:

1. Identifies securities sold, redeemed, divested, or withdrawn
in compliance with subsection D of Section 3 of this act;

2. Identifies prohibited investments under subsection F of
Section 3 of this act; and

3. Summarizes any changes made under subsection E of Section 3
of this act.

B. The Attorney General may bring any action necessary to
enforce the Energy Discrimination Elimination Act of 2022.

SECTION 373. AMENDATORY 75 O.S. 2021, Section 250.6, is
amended to read as follows:

Section 250.6. A. 1. The Commission for Human Services may
promulgate a preemptive rule pursuant to the provisions of this
section:

a. when the Commission for Human Services is required by
federal law, federal rules, a state law enacted
pursuant to federal law or federal rule, or order of a
court of competent jurisdiction to adopt a rule, or an
amendment, revision, or revocation of an existing
rule, and

ENR. S. B. NO. 1877 Page 780
b. which if such rule is not immediately adopted would
result in the imposition of a financial penalty, or a
reduction, withholding, or loss of federal funds.

2. A preemptive rule must shall be approved by the Governor
pursuant to this section.

3. The website of the Commission shall provide a link to the
website of the Secretary of State where the preemptive rules of the
Commission are published.

4. The conditions specified in this subsection for the
promulgation of a preemptive rule shall be the only conditions
authorized for promulgation of such rule by the Commission for Human
Services.

B. 1. Upon the adoption of such preemptive rule by the
Commission, the Director of the Department of Human Services shall
request the Governor to approve the rules on the basis that such
rules are required to comply with a federal law, federal rule, a
state law enacted pursuant to federal law or rule, or order of a
court of competent jurisdiction and which if such rules are not
immediately adopted would result in a financial penalty, or a
reduction, withholding, or loss of federal funds.

2. Upon the filing of the request for approval of a preemptive
rule, the Governor shall review such rule and decide as to whether
such rule should be approved. Prior to approval of a preemptive
rule, the Governor shall submit the preemptive rule to the Office of
the Secretary of State for review of proper formatting unless the
preemptive rule has been reviewed by the Office prior to agency
submission to the Governor. Failure of the Governor to approve such
rule within twenty-eight (28) calendar days shall constitute denial
of the rule as a preemptive rule.

3. Upon approval of a preemptive rule, the Governor shall
immediately notify the Commission. Upon receipt of notice of the
approval of the preemptive rule, the Commission shall file the
number of copies specified by the Secretary of the approval issued
by the Governor and the number of copies specified by the Secretary
of the preemptive rule with the Office pursuant to Section 251 of
this title.

ENR. S. B. NO. 1877 Page 781

4. The preemptive rule shall be published in accordance with
the provisions of Section 255 of this title in “The Oklahoma
Register” following approval by the Governor. The Governor’s
approval and the approved rules shall be retained as official
records by the Office of Administrative Rules.

5. For informational purposes only, a copy of the Governor’s
approval and the preemptive rule shall be electronically submitted
by the Commission to the Speaker of the House of Representatives and
the President Pro Tempore of the Senate within ten (10) days of the
approval of the preemptive rule by the Governor utilizing the
centralized filing system provided for in Section 378 of this act.

6. Upon approval by the Governor, the rule shall be considered
promulgated and shall be in force immediately, or if a later date is
required by statute or specified in the rule, the later date is the
effective date.

C. A preemptive rule shall be considered to be a permanent rule
and shall remain in full force and effect unless and until
specifically disapproved during the first thirty (30) legislative
days of the next regular legislative session following promulgation
of such preemptive rule or unless an earlier expiration date is
specified by the Commission. The Legislature may disapprove such
rule pursuant to Section 308 of this title. Any resolution
introduced for the purpose of disapproving such rule shall not be
subject to regular legislative cut off dates.

D. Except as otherwise provided by this section, preemptive
rules shall be promulgated and published in compliance with Article
I of the Administrative Procedures Act. Preemptive rules
promulgated pursuant to the provisions of this section shall be
exempt from the provisions of Sections 253, 303, 303.1, 303.2, 304,
308 and 308.1 of this title.

SECTION 374. AMENDATORY 75 O.S. 2021, Section 252, is
amended to read as follows:

Section 252. A. Any rule, amendment, revision, or revocation
of an existing rule made by an agency on or after October 16, 1987,
may be held void and of no effect pursuant to Sections 306 and 307

ENR. S. B. NO. 1877 Page 782
of this title. All provisions herein shall also apply to all
agencies that may hereafter be created. All courts, boards,
commissions, agencies, authorities, instrumentalities, and officers
of the State of Oklahoma shall take judicial or official notice of
any rule, amendment, revision, or revocation of an existing rule
promulgated pursuant to the provisions of the Administrative
Procedures Act.

B. Upon failure of an agency to comply with the provisions of
Sections 251 through 256 of this title except when not applicable,
the Secretary shall forward a written notice of the failure to
comply to the chief administrative officer of the agency. The
notice shall state a reasonable time, not to exceed thirty (30)
calendar days, in which the agency shall fully comply. Further
failure to comply shall be electronically reported in writing to the
Speaker of the House of Representatives, the President Pro Tempore
of the Senate, the Governor, and the Attorney General utilizing the
centralized filing system provided for in Section 378 of this act.
Upon such notification, the Attorney General shall immediately seek
agency compliance and if required, to institute mandamus proceedings
to secure compliance by said agency.

SECTION 375. AMENDATORY 75 O.S. 2021, Section 253, as
last amended by Section 6, Chapter 258, O.S.L. 2025 (75 O.S. Supp.
2025, Section 253), is amended to read as follows:

Section 253. A. 1. If an agency finds that a rule is
necessary as an emergency measure, the rule may be promulgated
pursuant to the provisions of this section, if the rule is first
approved by the Governor. The Governor shall not approve the
adoption, amendment, revision, or revocation of a rule as an
emergency measure unless the agency submits substantial evidence
that the rule is necessary as an emergency measure to do any of the
following:

a. protect the public health, safety, or welfare,

b. comply with deadlines in amendments to an agency’s
governing law or federal programs,

c. avoid violation of federal law or regulation or other
state law,

ENR. S. B. NO. 1877 Page 783

d. avoid imminent reduction to the agency’s budget, or

e. avoid serious prejudice to the public interest.

As used in this subsection, “substantial evidence” shall mean
credible evidence which is of sufficient quality and probative value
to enable a person of reasonable caution to support a conclusion.

2. In determining whether a rule is necessary as an emergency
measure, the Governor shall consider whether the emergency situation
was created due to the agency’s delay or inaction and could have
been averted by timely compliance with the provisions of this
chapter.

B. An emergency rule adopted by an agency shall:

1. Be prepared in the format required by Section 251 of this
title;

2. a. Include an impact statement which meets the
requirements set forth in subparagraph b of this
paragraph, unless the Governor waives the initial
requirement in writing upon a finding that the rule
impact statement or the specified contents thereof are
unnecessary or contrary to the public interest.
Provided, the rule impact statement shall be submitted
no more than forty-five (45) days from the date of
such waiver.

b. The rule impact statement shall include, but not be
limited to:

(1) a statement of the need for the rule and legal
basis supporting it,

(2) a classification of the rule as major or
nonmajor, with a justification for the
classification, including an estimate of the
total annual implementation and compliance costs
that are reasonably expected to be incurred by or
passed along to businesses, state or local

ENR. S. B. NO. 1877 Page 784
government units, or individuals and a
determination of whether those costs will exceed
One Million Dollars ($1,000,000.00) over the
initial five-year period following the
promulgation of the proposed rule. Provided, if
the costs exceed One Million Dollars
($1,000,000.00), the agency shall classify the
rule as a major rule,

(3) a description of the proposed rule, including a
determination of whether the proposed rule is
mandated by federal law, or as a requirement for
participation in or implementation of a federally
subsidized or assisted program, and whether the
proposed rule exceeds the requirements of the
applicable federal law,

(4) a description of the classes of persons who most
likely will be affected by the proposed rule,
including classes that will bear the costs of the
proposed rule, and any information on cost
impacts received by the agency from any private
or public entities,

(5) a description of the classes of persons who will
benefit from the proposed rule,

(6) a comprehensive analysis of the rule’s economic
impact, including any anticipated impacts on the
full-time-employee count of the agency, any costs
or benefits, and a detailed quantification of
implementation and compliance costs on the
affected businesses, business sectors, public
utility ratepayers, individuals, state or local
government units, and on the state economy as a
whole. The analysis shall include a listing of
all fee changes and, whenever possible, a
separate justification for each fee change,

(7) a detailed explanation of the methodology and
assumptions used to determine the economic
impact, including the dollar amounts calculated,

ENR. S. B. NO. 1877 Page 785

(8) a determination of whether implementation of the
proposed rule will have an economic impact on any
political subdivisions or require their
cooperation in implementing or enforcing the
rule,

(9) a determination of whether implementation of the
proposed rule may have an adverse economic effect
on small business as provided by the Oklahoma
Small Business Regulatory Flexibility Act,

(10) any measures taken by the agency to minimize the
cost and impact of the proposed rule on business
and economic development in this state, local
government units of this state, and individuals,

(11) a determination of the effect of the proposed
rule on the public health, safety, and
environment and, if the proposed rule is designed
to reduce significant risks to the public health,
safety, and environment, an explanation of the
nature of the risk and to what extent the
proposed rule will reduce the risk,

(12) a determination of any detrimental effect on the
public health, safety, and environment if the
proposed rule is not implemented, and

13) the date the rule impact statement was prepared
and, if modified, the date modified.

c. The rule impact statement shall be prepared on or
before the date the emergency rule is adopted; and

3. Be electronically transmitted pursuant to Section 464 of
Title 74 of the Oklahoma Statutes to the Governor, the Speaker of
the House of Representatives, the President Pro Tempore of the
Senate, and the chief legislative officer of each chamber, along
with the information required by this subsection within ten (10)
days after the rule is adopted, utilizing the centralized filing
system provided for in Section 378 of this act.

ENR. S. B. NO. 1877 Page 786

C. 1. Within forty-five (45) calendar days of receipt of a
proposed emergency rule filed with the Governor, the Speaker of the
House of Representatives, the President Pro Tempore of the Senate,
and the chief legislative officer of each chamber, the Governor
shall review the demonstration of emergency pursuant to subsection A
of this section, and shall separately review the rule in accordance
with the standards prescribed in paragraph 3 of this subsection.

2. Prior to approval of emergency rules, the Governor shall
submit the emergency rule to the Secretary of State for review of
proper formatting.

3. If the Governor determines the agency has established the
rule is necessary as an emergency measure pursuant to subsection A
of this section, the Governor shall approve the proposed emergency
rule if the rule is:

a. clear, concise, and understandable,

b. within the power of the agency to make and within the
enacted legislative standards, and

c. made in compliance with the requirements of the
Administrative Procedures Act.

4. If an emergency rule is adopted under this section due to a
declared state of emergency pursuant to Section 683.1 et seq. of
Title 63 of the Oklahoma Statutes, an agency may request the
Governor waive the provisions of subsection B of this section. Such
request shall be in writing and shall state the agency’s findings
and the justification for such findings. The agency shall have
forty-five (45) days to comply with the provisions of subsection B
of this section for any adopted emergency rules where such
provisions are waived. Any rules which do not comply with the
requirements of this section shall expire following such time
period. Nothing in this paragraph shall be construed to waive any
other requirements of this section for emergency rule promulgation
by an agency.

D. 1. Within the forty-five-calendar-day period set forth in
paragraph 1 of subsection C of this section, the Governor may

ENR. S. B. NO. 1877 Page 787
approve the emergency rule or disapprove the emergency rule.
Failure of the Governor to approve an emergency rule within the
specified period shall constitute disapproval of the emergency rule.

2. If the Governor disapproves the adopted emergency rule, the
Governor shall return the entire document to the agency with reasons
for the disapproval. If the agency elects to modify the rule, the
agency shall adopt the modifications, and shall file the modified
rule in accordance with the requirements of subsection B of this
section.

3. Upon disapproval of an emergency rule, the Governor shall,
within fifteen (15) days, make written notification to the Speaker
of the House of Representatives, the President Pro Tempore of the
Senate, the chief legislative officer of each chamber, and the
Office of Administrative Rules.

E. 1. Upon approval of an emergency rule, the Governor shall
immediately make written notification to the agency, the Speaker of
the House of Representatives, the President Pro Tempore of the
Senate, the chief legislative officer of each chamber, and the
Office of Administrative Rules. Upon receipt of the notice of the
approval, the agency shall file with the Office of Administrative
Rules as many copies of the notice of approval and the emergency
rule as required by the Secretary.

2. Emergency rules shall be subject to legislative review
pursuant to Section 308 of this title.

3. The emergency rule shall be published in accordance with the
provisions of Section 255 of this title in “The Oklahoma Register”
following the approval by the Governor. The Governor’s approval and
the approved rules shall be retained as official records by the
Office of Administrative Rules.

F. 1. Upon approval by the Governor, an emergency rule shall
be considered promulgated and shall be in force immediately, or on
such later date as specified therein. An emergency rule shall only
be applied prospectively from its effective date.

2. Except as otherwise provided in this subsection, the
emergency rule shall remain in full force and effect through the

ENR. S. B. NO. 1877 Page 788
first day of the next succeeding regular session of the Legislature
following promulgation of such emergency rule until September 14
following such session, unless it is made ineffective pursuant to
subsection H of this section.

G. No agency shall adopt any emergency rule which establishes
or increases fees, except during such times as the Legislature is in
session, unless specifically mandated by the Legislature or federal
legislation, or when the failure to establish or increase fees would
conflict with an order issued by a court of law.

H. 1. If an emergency rule is of a continuing nature, the
agency promulgating such emergency rule shall initiate proceedings
for promulgation of a permanent rule pursuant to Sections 303
through 308.3 of this title. If an emergency rule is superseded by
another emergency rule prior to the enactment of a permanent rule,
the latter emergency rule shall retain the same expiration date as
the superseded emergency rule, unless otherwise authorized by the
Legislature.

2. Any promulgated emergency rule shall be made ineffective if:

a. disapproved by the Legislature,

b. superseded by the promulgation of permanent rules,

c. any adopted rules based upon such emergency rules are
subsequently disapproved pursuant to Section 308 of
this title, or

d. an earlier expiration date is specified by the agency
in the rules.

3. a. Emergency rules in effect on the first day of the
session shall be null and void on September 15
following sine die adjournment of the Legislature
unless otherwise specifically provided by the
Legislature.

b. Unless otherwise authorized by the Legislature, an
agency shall not adopt any emergency rule, which has
become null and void pursuant to subparagraph a of

ENR. S. B. NO. 1877 Page 789
this paragraph, as a new emergency rule or adopt any
emergency rules of similar scope or intent as the
emergency rules which became null and void pursuant to
subparagraph a of this paragraph.

I. Emergency rules shall not become effective unless approved
by the Governor pursuant to the provisions of this section.

J. 1. The requirements of Section 303 of this title relating
to notice and hearing shall not be applicable to emergency rules
promulgated pursuant to the provisions of this section. Provided,
this shall not be construed to prevent an abbreviated notice and
hearing process determined to be necessary by an agency.

2. The rule report required pursuant to Section 303.1 of this
title shall not be applicable to emergency rules promulgated
pursuant to the provisions of this section. Provided, this shall
not be construed to prevent an agency from complying with such
requirements at the discretion of such agency.

3. The statement of submission required by Section 303.1 of
this title shall not be applicable to emergency rules promulgated
pursuant to the provisions of this section.

K. Prior to approval or disapproval of an emergency rule by the
Governor, an agency may withdraw from review an emergency rule
submitted pursuant to the provisions of this section. Notice of
such withdrawal shall be given to the Governor, the Speaker of the
House of Representatives, the President Pro Tempore of the Senate in
accordance with the requirements set forth in Section 464 of Title
74 of the Oklahoma Statutes, and to the Office of Administrative
Rules as required by the Secretary of State. In order to be
promulgated as emergency rules, any replacement rules shall be
resubmitted pursuant to the provisions of this section.

L. Upon completing the requirements of this section, an agency
may promulgate a proposed emergency rule. No emergency rule is
valid unless promulgated in substantial compliance with the
provisions of this section.

ENR. S. B. NO. 1877 Page 790
M. Emergency rules adopted by an agency or approved by the
Governor shall be subject to review pursuant to the provisions of
Section 306 of this title.

SECTION 376. AMENDATORY 75 O.S. 2021, Section 303.1, as
amended by Section 3, Chapter 38, O.S.L. 2023 (75 O.S. Supp. 2025,
Section 303.1), is amended to read as follows:

Section 303.1. A. Within ten (10) days after adoption of a
permanent rule, the agency shall, utilizing the centralized filing
system provided for in Section 378 of this act, electronically file
two copies of the following with the Governor, the Speaker of the
House of Representatives, the President Pro Tempore of the Senate,
and the chief legislative officer of each chamber: all such new
rules or amendments; revisions or revocations to an existing rule
proposed by an agency; and the agency rule report as required by
subsection E of this section.

B. If the agency determines in the rule impact statement
prepared as part of the agency rule report that the proposed rule
will have an economic impact on any political subdivisions or
require their cooperation in implementing or enforcing a proposed
permanent rule, a copy of the proposed rule and rule report shall be
filed within ten (10) days after adoption of the permanent rule with
the Oklahoma Advisory Committee on Intergovernmental Relations for
its review. The Committee may communicate any recommendations that
it may deem necessary to the Governor, the Speaker of the House of
Representatives, and President Pro Tempore of the Senate during the
period that the permanent rules are being reviewed.

C. When the rules have been submitted to the Governor, the
Speaker of the House of Representatives, the President Pro Tempore
of the Senate, and the chief legislative officer of each chamber,
the agency shall also submit to the Office of Administrative Rules
for publication in “The Oklahoma Register”, a statement that the
adopted rules have been submitted to the Governor and the
Legislature.

D. The text of the adopted rules shall be submitted to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate in the same format as required
by the Secretary pursuant to Section 251 of this title.

ENR. S. B. NO. 1877 Page 791

E. The report required by subsection A of this section shall
include:

1. The date the notice of the intended rulemaking action was
published in “The Oklahoma Register” pursuant to Section 255 of this
title;

2. The name and address of the agency;

3. The title and number of the rule;

4. A citation to the constitutional or statutory authority for
the rule;

5. The citation to any federal or state law, court ruling, or
any other authority requiring the rule;

6. A statement of the gist of the rule or a brief summary of
the content of the adopted rule;

7. A statement explaining the need for the adopted rule;

8. The date and location of the meeting, if held, at which such
rules were adopted or the date and location when the rules were
adopted if the rulemaking agency is not required to hold a meeting
to adopt rules;

9. A summary of the comments and explanation of changes or lack
of any change made in the adopted rules as a result of testimony
received at all hearings or meetings held or sponsored by an agency
for the purpose of providing the public an opportunity to comment on
the rules or of any written comments received prior to the adoption
of the rule. The summary shall include all comments received about
the cost impact of the proposed rules;

10. A list of persons or organizations who appeared or
registered for or against the adopted rule at any public hearing
held by the agency or those who have commented in writing before or
after the hearing;

ENR. S. B. NO. 1877 Page 792
11. A rule impact statement if required pursuant to Section 303
of this title;

12. An incorporation by reference statement if the rule
incorporates a set of rules from a body outside the state, such as a
national code;

13. The members of the governing board of the agency adopting
the rules and the recorded vote of each member;

14. The proposed effective date of the rules, if an effective
date is required pursuant to paragraph 1 of subsection B of Section
304 of this title; and

15. Any other information requested by the Governor, the
Speaker of the House of Representatives, or the President Pro
Tempore of the Senate.

SECTION 377. AMENDATORY 75 O.S. 2021, Section 308, as
last amended by Section 2, Chapter 420, O.S.L. 2025 (75 O.S. Supp.
2025, Section 308), is amended to read as follows:

Section 308. A. Upon receipt of any proposed permanent rules,
the Speaker of the House of Representatives and the President Pro
Tempore of the Senate shall assign such rules to the appropriate
committees of each house of the Legislature for review. Except as
otherwise provided by this section:

1. If such rules are received on or before April 1, the
Legislature shall have until the last day of the regular legislative
session of that year to review such rules. Provided, proposed
permanent rules for consideration by the 2nd Session of the 59th
Legislature shall be submitted on or before March 1. For each
legislative session thereafter, proposed permanent rules shall be
submitted on or before February 1 of the given year; and

2. If such rules are received after the date established
pursuant to paragraph 1 of this subsection, the Legislature shall
have until the last day of the regular legislative session of the
next year to act on such rules.

ENR. S. B. NO. 1877 Page 793
B. By the adoption of joint resolutions during the review
period specified in subsection A of this section, the Legislature
may disapprove or approve any rule and disapprove all or part of a
rule or rules. Any rules not acted upon by the adoption of a joint
resolution shall be deemed disapproved.

C. Unless otherwise authorized by the Legislature, whenever a
rule is disapproved as provided in subsection B of this section, the
agency adopting such rules shall not have authority to resubmit an
identical rule, except during the first sixty (60) calendar days of
the next regular legislative session. Any effective emergency rule
which would have been superseded by a disapproved permanent rule
shall be deemed null and void on the date the Legislature
disapproves the permanent rule. Rules may be disapproved in part or
in whole by the Legislature. Upon enactment of any joint resolution
disapproving a rule, the agency shall file notice of such
legislative disapproval with the Secretary for publication in “The
Oklahoma Register”.

D. Unless otherwise provided by specific vote of the
Legislature, joint resolutions introduced for purposes of
disapproving or approving a rule shall not be subject to regular
legislative cutoff dates, shall be limited to such provisions as may
be necessary for disapproval or approval of a rule, and any such
other direction or mandate regarding the rule deemed necessary by
the Legislature. The resolution shall contain no other provisions.

E. A proposed permanent rule shall only be deemed finally
adopted if:

1. Approved by a joint resolution pursuant to subsection B of
this section, provided that any such resolution becomes law in
accordance with Section 11 of Article VI of the Oklahoma
Constitution; or

2. Disapproved by a joint resolution pursuant to subsection B
of this section which has been vetoed by the Governor in accordance
with Section 11 of Article VI of the Oklahoma Constitution and the
veto has not been overridden.

F. Prior to final adoption of a rule, an agency may withdraw a
rule from legislative review. Notice of such withdrawal shall be

ENR. S. B. NO. 1877 Page 794
electronically given to the Governor, the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, and to the
Secretary, utilizing the centralized filing system provided for in
Section 378 of this act, for publication in “The Oklahoma Register”.

G. An agency may promulgate an emergency rule only pursuant to
Section 253 of this title.

H. Any rights, privileges, or interests gained by any person by
operation of an emergency rule, shall not be affected by reason of
any subsequent disapproval or rejection of such rule by either house
of the Legislature.

SECTION 378. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 600 of Title 75, unless there is
created a duplication in numbering, reads as follows:

A. The Office of the Secretary of State shall create and
maintain a centralized filing system for all reports required by
statute to be submitted to such system. Such filing system shall
provide:

1. An index of all statutorily required reports, sortable by
agency name, policy area, title of law, and other information;

2. The dates of the last submitted report by an agency or
entity and the due date of the next report;

3. Notification to the statutorily designated report recipients
when a report is submitted;

4. Confirmation of successful submission to the agency or
entity submitting a report using such system; and

5. A dashboard reflecting whether a report has been submitted
or is overdue.

B. The Secretary of State shall, when newly enacted legislation
requires an agency or entity of this state to submit a report,
electronically notify such agency or entity of such requirement
within five (5) business days of the date when such enacted

ENR. S. B. NO. 1877 Page 795
legislation is filed in the Office of the Secretary of State, as
provided for in Section 12a of Title 75 of the Oklahoma Statutes.

C. The Secretary of State shall, utilizing the centralized
filing system provided for in this section, electronically report to
the President Pro Tempore of the Senate, the Speaker of the House of
Representatives, and the Governor if an agency or entity has not
submitted a statutorily required report to the centralized filing
system by the date of submission provided in statute.

SECTION 379. AMENDATORY 76 O.S. 2021, Section 17, is
amended to read as follows:

Section 17. Whenever a claim of personal injury is made against
any practitioner of the healing arts or a licensed hospital, a
report shall be made to the appropriate licensing board or agency by
the liability insurer of such practitioner or hospital within sixty
(60) days after receipt of information that a claim is being made.
In the event that such claim is made against a party not insured,
the report shall be made by the party. The report shall be in
writing on a form containing the following information:

1. The name and address of the practitioner or hospital;

2. The name, age, and address of the claimant;

3. A brief statement of the nature of the injury, illness or
condition complained of and the act or omission complained of; and

4. Whether a suit is pending and, if so, the court, style and
docket number of the action.

And whenever such claim or suit is concluded, the disposition
shall be reported to the appropriate board or agency promptly.

This report shall be privileged except as hereinafter provided.

The licensing board or agency shall take any remedial,
disciplinary, or corrective action as it may deem warranted by the
facts contained in the report.

ENR. S. B. NO. 1877 Page 796
Any person or liability insurer failing to furnish a report on a
claim as required in this section shall be guilty of a misdemeanor.

Further, the board or agency shall annually, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically furnish the President Pro Tempore of the Senate and
the Speaker of the House of Representatives a full report of all
such claims except that names and addresses of all parties shall be
omitted. Such report shall include disposition of the claim as well
as a report of all action taken by the board or agency and the
reason therefor.

SECTION 380. AMENDATORY 82 O.S. 2021, Section 863.3, is
amended to read as follows:

Section 863.3. A. There is hereby created the Joint
Legislative Task Force on the Grand River Dam Authority for the
purpose of studying the functions, activities, policies, procedures,
and expenditures performed by the district and any related issues
the task force deems appropriate. Members of the task force shall
be appointed in January of each year following a state general
election by the President Pro Tempore of the Senate and the Speaker
of the House of Representatives. Membership shall be made up of
five members of the Senate and five members of the House of
Representatives whose legislative districts include a portion of the
Grand River Dam Authority district to be appointed by the President
Pro Tempore of the Senate and the Speaker of the House of
Representatives, respectively. The President Pro Tempore and
Speaker shall each designate one of their members to be cochairs of
the task force. The task force shall be required to meet at least
once biennially during the first session of each new legislature.
Additional meetings may be called as the cochairs determine
necessary. Meetings of the task force shall be called by the
cochairs. A majority of the appointed members shall constitute a
quorum for any meeting of the task force. Staffing assistance shall
be provided by the staff of the Senate and House of Representatives.

B. The members of the task force created herein shall continue
to serve until new members are appointed pursuant to the provisions
of subsection A of this section. The task force is authorized to
adopt any recommendations or issue any report it deems necessary.
Any recommendations or reports shall be approved by a majority of

ENR. S. B. NO. 1877 Page 797
the appointed members. Copies of any recommendations or reports
issued by the task force shall be distributed to the Governor, the
President Pro Tempore of the Senate, the Speaker of the House of
Representatives, the members of the Grand River Dam Authority Board
of Directors, and the Chief Executive Officer of the Grand River Dam
Authority.

C. The Grand River Dam Authority shall annually, utilizing the
centralized filing system provided for in Section 378 of this act,
electronically provide a copy of the district’s most recent annual
report to the members of the task force in addition to any
information requested pursuant to the provisions of this section.

D. Members serving on the task force shall not be entitled to
travel reimbursement.

SECTION 381. AMENDATORY 82 O.S. 2021, Section 1085.14,
is amended to read as follows:

Section 1085.14. In addition to its other powers, the Oklahoma
Water Resources Board is authorized and directed, within the limits
of funds available to it, to engage in a continuing study of the
water laws of this state, and of changes therein required in order
to carry out to the greatest practicable extent the policies, goals,
objectives and recommendations contained in the “Oklahoma
Comprehensive Water Plan” and to make recommendations and prepare
proposed legislation for such purposes. Such recommendations and
proposed legislation shall, as they are completed, be electronically
filed with the President Pro Tempore of the Senate and the Speaker
of the House of Representatives utilizing the centralized filing
system provided for in Section 378 of this act.

SECTION 382. AMENDATORY 82 O.S. 2021, Section 1085.62,
is amended to read as follows:

Section 1085.62. In order to comply with the requirements of
federal and state laws, the Board shall complete the following:

1. Establish criteria for determining the interest rates on
loans to be made from the Clean Water State Revolving Fund Loan
Account. Such criteria may incorporate applicable United States

ENR. S. B. NO. 1877 Page 798
Environmental Protection Agency and Rural Development Administration
guidelines for financial assistance.

a. In determining interest rates on loans made from the
fund, in addition to other information, due
consideration shall be given to:

(1) providing for the maintenance of the account in
perpetuity,

(2) statewide needs for the assistance available
pursuant to the provisions of this act,

(3) five-year demand projections of the Board for
assistance available pursuant to the provisions
of this act,

(4) prevailing market interest rates, and

(5) debt service requirements of investment
certificates issued by the Board to provide funds
for the Clean Water State Revolving Fund Loan
Account.

b. In developing criteria for the determination of
interest rates available to individual entities, in
addition to other information, due consideration shall
be given to:

(1) financial resources of the entity,

(2) the ability of the entity to repay the loan,

(3) those entities that discharge into those streams
and rivers designated as scenic river areas
pursuant to the provisions of Section 1452 of
this title or outstanding resource waters under
Oklahoma’s Water Quality Standards, and

(4) prevailing market interest rates; and

ENR. S. B. NO. 1877 Page 799
2. Submission Electronic submission of an annual report by the
Board to the Governor and to the Speaker of the House of
Representatives and the President Pro Tempore of the Senate,
utilizing the centralized filing system provided for in Section 378
of this act, within one hundred twenty (120) days of the end of each
fiscal year concerning the Clean Water State Revolving Fund Loan
Account and implementation of the provisions of Sections 1085.51
through 1085.65 of this title. The report shall contain information
to show the actual use and the recipients of loans made from the
Clean Water State Revolving Fund Loan Account. In addition, the
report shall contain five-year demand projections on anticipated
loan funds required and ten-year and twenty-year projections as to
possible funding needs for water quality projects which may be
eligible for financial assistance under Sections 1085.51 through
1085.65 of this title.

SECTION 383. AMENDATORY 82 O.S. 2021, Section 1085.82,
is amended to read as follows:

Section 1085.82. In order to comply with the requirements of
federal and state laws, the Department of Environmental Quality and
the Oklahoma Water Resources Board shall enter into a written joint
operating agreement to carry out with efficiency their respective
duties under this act. At a minimum, the agreement shall provide
for the following:

1. Joint procedures consistent with this act to establish
criteria for determining the interest rates on loans to be made from
the Drinking Water Treatment Revolving Loan Account. Such criteria
may incorporate applicable United States Environmental Protection
Agency and Rural Development Administration guidelines for financial
assistance; and

2. Submission Electronic submission of an annual joint report
by the Department and the Board to the Governor and to the Speaker
of the House of Representatives and the President Pro Tempore of the
Senate, utilizing the centralized filing system provided for in
Section 378 of this act, within one hundred twenty (120) days of the
end of each fiscal year concerning the Drinking Water Treatment
Revolving Loan Account and implementation of the provisions of this
act. The report shall contain information to show the actual use
and the recipients of loans made from the Drinking Water Treatment

ENR. S. B. NO. 1877 Page 800
Revolving Loan Account. In addition, the report shall contain five-
year demand projections on anticipated loan funds required and ten-
year and twenty-year projections as to possible funding needs for
drinking water treatment projects which may be eligible for
financial assistance pursuant to this act.

SECTION 384. AMENDATORY Section 1, Chapter 268, O.S.L.
2023 (82 O.S. Supp. 2025, Section 1086.7), is amended to read as
follows:

Section 1086.7. A. The Oklahoma Flood and Drought Management
Task Force is hereby established and shall be comprised of two
groups, the management group and the advisory group.

B. 1. The management group shall be comprised of designees
from the following state agencies:

a. the Oklahoma Water Resources Board, which shall serve
as the lead agency,

b. the Oklahoma Department of Emergency Management and
Homeland Security,

c. the Oklahoma Department of Agriculture, Food, and
Forestry,

d. the State Department of Health,

e. the Department of Environmental Quality,

f. the Oklahoma Conservation Commission,

g. the Department of Wildlife Conservation,

h. the Oklahoma Climatological Survey, and

i. the Oklahoma Military Department.

2. The advisory group shall be comprised of designees of the
following state associations and entities:

a. Association of County Commissioners of Oklahoma,

ENR. S. B. NO. 1877 Page 801

b. Oklahoma Rural Water Association, and

c. Oklahoma Municipal League.

The advisory group shall also include the resources of all
remaining state agencies and departments available to provide advice
and assistance to the Oklahoma Flood and Drought Management Task
Force, including the Oklahoma State Regents for Higher Education.

C. The Oklahoma Water Resources Board shall formally coordinate
with the following federal agencies:

1. Federal Emergency Management Agency (FEMA);

2. U.S. Army Corps of Engineers;

3. U.S. Forest Service;

4. The United States Geological Survey;

5. Bureau of Reclamation;

6. Farm Service Agency;

7. National Weather Service;

8. U.S. Fish and Wildlife Service;

9. U.S. Small Business Administration;

10. Bureau of Indian Affairs;

11. U.S. Department of Housing and Urban Development;

12. United States Environmental Protection Agency; and

13. Any other federal agency available to provide advice and
assistance.

D. The Oklahoma Flood and Drought Management Task Force shall
have the following duties:

ENR. S. B. NO. 1877 Page 802

1. Developing and recommending state drought and flood
response, recovery, and mitigation initiatives for conditions
determined to be detrimental to the state economy and public health;

2. Identifying drought and flood management areas in the state;

3. Providing coordination and communication among federal,
state, and local entities as deemed appropriate for drought and
flood assistance programs, education, and information; and

4. Performing such other drought- and flood-related assessments
and response functions as deemed necessary.

E. Beginning in 2025, and every ten (10) years thereafter, in
conjunction with the update of the Oklahoma Comprehensive Water Plan
and State Flood Plan, the Oklahoma Water Resources Board shall
coordinate with the Oklahoma Flood and Drought Management Task Force
to update the Oklahoma Drought Management Plan.

F. The Oklahoma Water Resources Board shall prepare an annual
update of drought and flood conditions within the state and planning
and mitigation activities being conducted by the Task Force and
shall, utilizing the centralized filing system provided for in
Section 378 of this act, electronically submit such report to the
Speaker of the Oklahoma House of Representatives and President Pro
Tempore of the Oklahoma State Senate.

SECTION 385. AMENDATORY 82 O.S. 2021, Section 1623, is
amended to read as follows:

Section 1623. A. Contingent on available funding, the Oklahoma
Water Resources Board shall prepare and adopt a comprehensive state
flood plan. The plan shall:

1. Provide for orderly preparation for and response to flood
conditions to protect against the loss of life and property;

2. Be a guide to state and local flood control policy; and

3. Contribute to water development when possible.

ENR. S. B. NO. 1877 Page 803
B. The state flood plan shall include:

1. An evaluation of the condition and adequacy of flood control
infrastructure on a watershed basis;

2. A statewide list of ongoing and proposed flood control and
mitigation projects and strategies necessary to protect against the
loss of life and property from flooding and a discussion of how
those projects and strategies might further water development where
applicable;

3. An analysis of completed, ongoing and proposed flood control
projects included in previous state flood plans including which
projects received funding;

4. An analysis of development in special flood hazard areas, as
defined by the Federal Emergency Management Agency; and

5. Legislative recommendations the Board considers necessary to
facilitate flood control planning and project construction.

C. On adoption of a state flood plan, the Oklahoma Water
Resources Board shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically deliver the
plan to the Governor, President Pro Tempore of the Senate, and
Speaker of the House of Representatives.

SECTION 386. AMENDATORY 85 O.S. 2021, Section 380, as
amended by Section 1, Chapter 256, O.S.L. 2024, and as renumbered by
Section 3, Chapter 256, O.S.L. 2024 (74 O.S. Supp. 2025, Section
85.70), is amended to read as follows:

Section 85.70. A. 1. Except as provided for in subsections E
though I of this section, volunteer fire departments organized
pursuant to state law may obtain workers’ compensation insurance for
volunteer firefighters through the Volunteer Firefighter Group
Insurance Pool pursuant to requirements established by CompSource
Mutual Insurance Company which shall administer the Pool. For the
premium set by CompSource Mutual Insurance Company, the state shall
provide Fifty-five Dollars ($55.00) per firefighter per year.
Except as otherwise provided by subsection D of this section, the
total amount paid by the state shall not exceed Three Hundred Twenty

ENR. S. B. NO. 1877 Page 804
Thousand Three Hundred Thirty-eight Dollars ($320,338.00) per year
or so much thereof as may be necessary to fund the Volunteer
Firefighter Group Insurance Pool.

2. CompSource Mutual Insurance Company shall collect the
premium from state agencies, public trusts, and other
instrumentalities of the state. Any funds received by CompSource
Mutual Insurance Company from any state agency, public trust, or
other instrumentality for purposes of workers’ compensation
insurance pursuant to this section shall be deposited to the credit
of the Volunteer Firefighter Group Insurance Pool. CompSource
Mutual Insurance Company shall collect premiums, pay claims, and
provide for excess insurance as needed.

B. CompSource Mutual Insurance Company shall electronically
report, annually, to the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate the
number of enrollees in the Volunteer Firefighter Group Insurance
Pool, and the amount of any anticipated surplus or deficiency of the
Pool; and shall also provide to the Governor, the Speaker of the
House of Representatives and the President Pro Tempore of the Senate
sixty (60) days’ advance notice of any proposed change in rates for
the Volunteer Firefighter Group Insurance Pool.

C. The amount of claims paid, claim expenses, underwriting
losses, loss ratio, or any other financial aspect of the Volunteer
Firefighter Group Insurance Pool shall not be considered when
determining or considering bids for the amount of any premiums,
rates, or expenses owed by, or any discounts, rebates, dividends, or
other financial benefits owed to any other policyholder of
CompSource Mutual Insurance Company.

D. Except as otherwise provided by law, any increase in the
state payment rate for volunteer firefighters under the Volunteer
Firefighter Group Insurance Pool shall not exceed five percent (5%)
per annum. Any proposed change in rates for the Volunteer
Firefighter Group Insurance Pool must shall be approved by the Board
of Directors of CompSource Mutual Insurance Company with notice
provided pursuant to subsection B of this section. CompSource
Mutual Insurance Company shall not increase premiums for the
Volunteer Firefighter Group Insurance Pool more than once per annum.

ENR. S. B. NO. 1877 Page 805
E. 1. The provisions of subsections A through D of this
section shall apply only to workers’ compensation claims for
volunteer firefighters incurred prior to the effective date of this
act.

2. Not later than the effective date of this act, the Volunteer
Firefighter Group Insurance Pool shall be transferred to the Office
of Management and Enterprise Services Comprehensive Professional
Risk Management Program. Provided, existing reserves from the Pool
shall remain with CompSource Mutual Insurance Company for the
purpose of managing claims incurred prior to the effective date of
this act. All claims incurred on and after the effective date of
this act shall be administered by the Office of Management and
Enterprise Services (OMES).

3. OMES may contract with a third-party administrator or hire
not more than two full-time personnel for the purposes of
administering the Pool.

4. Nothing in this section shall be construed to permit OMES to
administer workers’ compensation to a paid fire department as such
term is defined in Section 29-104.1 of Title 11 of the Oklahoma
Statutes.

F. 1. Volunteer fire departments organized pursuant to state
law may obtain workers’ compensation insurance for volunteer
firefighters through the Volunteer Firefighter Group Insurance Pool
pursuant to requirements established by the Office of Management and
Enterprise Services Comprehensive Professional Risk Management
Program.

2. OMES shall collect a premium of One Hundred Twenty Dollars
($120.00) per firefighter per year from state agencies, public
trusts, and other instrumentalities of the state. Any funds
received by OMES from any state agency, public trust, or other
instrumentality for purposes of workers’ compensation insurance
pursuant to this section shall be deposited to the credit of the
Volunteer Firefighter Group Insurance Pool. OMES shall collect
premiums, pay claims, and provide for excess insurance as needed.

G. OMES shall electronically report, annually, to the Governor,
the Speaker of the House of Representatives, and the President Pro

ENR. S. B. NO. 1877 Page 806
Tempore of the Senate, utilizing the centralized filing system
provided for in Section 378 of this act, the number of enrollees in
the Volunteer Firefighter Group Insurance Pool, and the amount of
any anticipated surplus or deficiency of the Pool; and shall also
provide to the Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate sixty
(60) days’ advance notice of any proposed change in rates for the
Volunteer Firefighter Group Insurance Pool.

H. The amount of claims paid, claim expenses, underwriting
losses, loss ratio, or any other financial aspect of the Volunteer
Firefighter Group Insurance Pool shall not be considered when
determining or considering bids for the amount of any premiums,
rates, or expenses owed by, or any discounts, rebates, dividends, or
other financial benefits owed to any other policyholder of OMES.

I. Except as otherwise provided by law, any increase in the
state payment rate for volunteer firefighters under the Volunteer
Firefighter Group Insurance Pool shall not exceed five percent (5%)
per annum. Any proposed change in rates for the Volunteer
Firefighter Group Insurance Pool must shall be approved by the
Director of the Office of Management and Enterprise Services with
notice provided pursuant to subsection G of this section. OMES
shall not increase premiums for the Volunteer Firefighter Group
Insurance Pool more than once per annum.

J. For purposes of this section, the term “volunteer fire
departments” includes those volunteer fire departments which have
authorized voluntary or uncompensated workers rendering services as
firefighters and are created by statute pursuant to Section 592 of
Title 18 of the Oklahoma Statutes, Sections 29-201 through 29-206 of
Title 11 of the Oklahoma Statutes, and those defined by Section 351
of Title 19 of the Oklahoma Statutes.

SECTION 387. AMENDATORY 85A O.S. 2021, Section 17, as
amended by Section 10, Chapter 199, O.S.L. 2025 (85A O.S. Supp.
2025, Section 17), is amended to read as follows:

Section 17. A. There is hereby created a Physician Advisory
Committee comprised of nine (9) members to be appointed as follows:

ENR. S. B. NO. 1877 Page 807
1. The Governor shall appoint three members, one of whom shall
be licensed in this state as a doctor of medicine and surgery, one
of whom shall be engaged in the practice of family medicine in a
rural community of the state, and one of whom shall be an
osteopathic physician;

2. The President Pro Tempore of the Senate shall appoint three
members, one of whom shall be licensed in this state as a doctor of
medicine and orthopedic surgery, one of whom shall be licensed in
this state either as a doctor of medicine or a doctor of osteopathy
and a neurosurgeon, and one of whom shall be licensed in this state
as a podiatric physician; and

3. The Speaker of the House of Representatives shall appoint
three members, one of whom shall be licensed in this state as an
osteopathic physician, one of whom shall be licensed in this state
either as a doctor of medicine or a doctor of osteopathy and shall
be engaged in the practice of occupational medicine, and one of whom
shall be licensed in this state as a chiropractic physician.

Any member serving on the effective date of this section shall
serve the remainder of his or her term. Thereafter, each position
will be filled by the appointing official for a term of three (3)
years. Members shall be subject to reappointment, with any new
appointee to serve out the remainder of the unexpired term of the
Committee member so replaced.

B. The Committee shall:

1. Assist and advise the Workers’ Compensation Commission
regarding utilization review as it relates to the medical practice
and treatment of work-related injuries. Such utilization review
shall include a review of reasonable and necessary medical
treatment; abusive practices; needless treatments, testing, or
procedures; or a pattern of billing in excess of or in violation of
the Schedule of Medical Fees. The Physician Advisory Committee
shall review and make findings and recommendations to the Commission
with respect to charges of inappropriate or unnecessary treatment or
procedures, abusive practices, or excessive billing disclosed
through utilization review;

ENR. S. B. NO. 1877 Page 808
2. Assist the Commission in reviewing medical practices of
health care providers, including evaluations of permanent disability
provided by health care providers. The Committee shall review and
make findings and recommendations to the Commission with respect to
charges of abusive practices by health care providers providing
medical services or evaluations of permanent partial disability
through the workers’ compensation system;

3. After public hearing, review and make recommendations for
acceptable deviations from the American Medical Association’s
“Guides to the Evaluation of Permanent Impairment”;

4. After public hearing, adopt Physician Advisory Committee
Guidelines (PACG) and protocols for only medical treatment not
addressed by the latest edition of the Official Disability
Guidelines;

5. After public hearing, adopt Physician Advisory Committee
Guidelines for the prescription and dispensing of any controlled
substance included in Schedule II of the Uniform Controlled
Dangerous Substances Act if not addressed by the current edition of
the Official Disability Guidelines;

6. Review utilization on cases or of providers when requested
by any employer, injured employee or insurer. The Committee may
issue a public or private censure to any provider for utilization
which is excessive or inadequate, or recommend the Commission order
treatment within the treatment guidelines;

7. Provide general recommendations to the Commission on the
issues of injury causation and apportionment;

8. Conduct educational seminars for the Commission, employers,
employees, and other interested parties;

9. Assist the Commission in accessing medical information from
scientific literature; and

10. Report Electronically report its progress annually to the
Governor, the President Pro Tempore of the Senate, and the Speaker
of the House of Representatives utilizing the centralized filing
system provided for in Section 378 of this act.

ENR. S. B. NO. 1877 Page 809

C. The Commission shall recognize the latest edition of the
Official Disability Guidelines as the primary standard of reference,
at the time of treatment, in determining the frequency and extent of
services presumed to be medically necessary and appropriate for
compensable injuries under this act, or in resolving such matters in
the event a dispute arises.

D. Members of the Physician Advisory Committee shall receive no
compensation for serving on the Committee but shall be reimbursed by
the Commission for their necessary travel expenses incurred in the
performance of their duties in accordance with the State Travel
Reimbursement Act.

E. Meetings of the Physician Advisory Committee shall be called
by the Commission but held at least quarterly. The presence of a
majority of the members shall constitute a quorum. No action shall
be taken by the Physician Advisory Committee without the affirmative
vote of at least a majority of the members.

F. The Commission shall provide office supplies and personnel
of the Commission to assist the Committee in the performance of its
duties.

G. Upon written request, the Insurance Commissioner, CompSource
Mutual Insurance Company, and every approved self-insured employer
in Oklahoma shall provide the Committee with data necessary to the
performance of its duties.

H. Any health care provider acting in good faith and within the
scope of the provider’s duties as a member of the Physician Advisory
Committee shall be immune from civil liability for making any report
or other information available to the judges of the Commission or to
the Commission or for assisting in the origination, investigation,
or preparation of the report or other information so provided.

SECTION 388. AMENDATORY 85A O.S. 2021, Section 50, is
amended to read as follows:

Section 50. A. The employer shall promptly provide an injured
employee with medical, surgical, hospital, optometric, podiatric,
chiropractic, and nursing services, along with any medicine,

ENR. S. B. NO. 1877 Page 810
crutches, ambulatory devices, artificial limbs, eyeglasses, contact
lenses, hearing aids, and other apparatus as may be reasonably
necessary in connection with the injury received by the employee.
The employer shall have the right to choose the treating physician
or chiropractor.

B. If the employer fails or neglects to provide medical
treatment within five (5) days after actual knowledge is received of
an injury, the injured employee may select a physician or
chiropractor to provide medical treatment at the expense of the
employer; provided, however, that the injured employee, or another
in the employee’s behalf, may obtain emergency treatment at the
expense of the employer where such emergency treatment is not
provided by the employer.

C. Diagnostic tests shall not be repeated sooner than six (6)
months from the date of the test unless agreed to by the parties or
ordered by the Commission for good cause shown.

D. Unless recommended by the treating doctor or chiropractor at
the time claimant reaches maximum medical improvement or by an
independent medical examiner, continuing medical maintenance shall
not be awarded by the Commission. The employer or insurance carrier
shall not be responsible for continuing medical maintenance or pain
management treatment that is outside the parameters established by
the Physician Advisory Committee or ODG. The employer or insurance
carrier shall not be responsible for continuing medical maintenance
or pain management treatment not previously ordered by the
Commission or approved in advance by the employer or insurance
carrier.

E. An employee claiming or entitled to benefits under the
Administrative Workers’ Compensation Act, shall, if ordered by the
Commission or requested by the employer or insurance carrier, submit
himself or herself for medical examination. If an employee refuses
to submit himself or herself to examination, his or her right to
prosecute any proceeding under the Administrative Workers’
Compensation Act shall be suspended, and no compensation shall be
payable for the period of such refusal.

F. For compensable injuries resulting in the use of a medical
device, ongoing service for the medical device shall be provided in

ENR. S. B. NO. 1877 Page 811
situations including, but not limited to, medical device battery
replacement, ongoing medication refills related to the medical
device, medical device repair, or medical device replacement.

G. The employer shall reimburse the employee for the actual
mileage in excess of twenty (20) miles round trip to and from the
employee’s home to the location of a medical service provider for
all reasonable and necessary treatment, for an evaluation of an
independent medical examiner and for any evaluation made at the
request of the employer or insurance carrier. The rate of
reimbursement for such travel expense shall be the official
reimbursement rate as established by the State Travel Reimbursement
Act. In no event shall the reimbursement of travel for medical
treatment or evaluation exceed six hundred (600) miles round trip.

H. Fee Schedule.

1. The Commission shall conduct a review and update of the
Current Procedural Terminology (CPT) in the Fee Schedule every two
(2) years pursuant to the provisions of paragraph 14 of this
subsection. The Fee Schedule shall establish the maximum rates that
medical providers shall be reimbursed for medical care provided to
injured employees including, but not limited to, charges by
physicians, chiropractors, dentists, counselors, hospitals,
ambulatory and outpatient facilities, clinical laboratory services,
diagnostic testing services, and ambulance services, and charges for
durable medical equipment, prosthetics, orthotics, and supplies.
The most current Fee Schedule established by the Administrator of
the Workers’ Compensation Court prior to February 1, 2014, shall
remain in effect, unless or until the Legislature approves the
Commission’s proposed Fee Schedule.

2. Reimbursement for medical care shall be prescribed and
limited by the Fee Schedule. The director of the Employees Group
Insurance Division of the Office of Management and Enterprise
Services shall provide the Commission such information as may be
relevant for the development of the Fee Schedule. The Commission
shall develop the Fee Schedule in a manner in which quality of
medical care is assured and maintained for injured employees. The
Commission shall give due consideration to additional requirements
for physicians treating an injured worker under the Administrative
Workers’ Compensation Act, including, but not limited to,

ENR. S. B. NO. 1877 Page 812
communication with claims representatives, case managers, attorneys,
and representatives of employers, and the additional time required
to complete forms for the Commission, insurance carriers, and
employers.

3. In making adjustments to the Fee Schedule, the Commission
shall use, as a benchmark, the reimbursement rate for each Current
Procedural Terminology (CPT) code provided for in the fee schedule
published by the Centers for Medicare and Medicaid Services of the
U.S. Department of Health and Human Services for use in Oklahoma
(Medicare Fee Schedule) on the effective date of this section,
workers’ compensation fee schedules employed by neighboring states,
the latest edition of “Relative Values for Physicians” (RVP), usual,
customary and reasonable medical payments to workers’ compensation
health care providers in the same trade area for comparable
treatment of a person with similar injuries, and all other data the
Commission deems relevant. For services not valued by CMS, the
Commission shall establish values based on the usual, customary and
reasonable medical payments to health care providers in the same
trade area for comparable treatment of a person with similar
injuries.

a. No reimbursement shall be allowed for any magnetic
resonance imaging (MRI) unless the MRI is provided by
an entity that meets Medicare requirements for the
payment of MRI services or is accredited by the
American College of Radiology, the Intersocietal
Accreditation Commission or the Joint Commission on
Accreditation of Healthcare Organizations. For all
other radiology procedures, the reimbursement rate
shall be the lesser of the reimbursement rate allowed
by the 2010 Oklahoma Fee Schedule and two hundred
seven percent (207%) of the Medicare Fee Schedule.

b. For reimbursement of medical services for Evaluation
and Management of injured employees as defined in the
Fee Schedule adopted by the Commission, the
reimbursement rate shall not be less than one hundred
fifty percent (150%) of the Medicare Fee Schedule.

c. Any entity providing durable medical equipment,
prosthetics, orthotics or supplies shall be accredited

ENR. S. B. NO. 1877 Page 813
by a CMS-approved accreditation organization. If a
physician provides durable medical equipment,
prosthetics, orthotics, prescription drugs, or
supplies to a patient ancillary to the patient’s
visit, reimbursement shall be no more than ten percent
(10%) above cost.

d. The Commission shall develop a reasonable stop-loss
provision of the Fee Schedule to provide for adequate
reimbursement for treatment for major burns, severe
head and neurological injuries, multiple system
injuries, and other catastrophic injuries requiring
extended periods of intensive care. An employer or
insurance carrier shall have the right to audit the
charges and question the reasonableness and necessity
of medical treatment contained in a bill for treatment
covered by the stop-loss provision.

4. The right to recover charges for every type of medical care
for injuries arising out of and in the course of covered employment
as defined in the Administrative Workers’ Compensation Act shall lie
solely with the Commission. When a medical care provider has
brought a claim to the Commission to obtain payment for services, a
party who prevails in full on the claim shall be entitled to
reasonable attorney fees.

5. Nothing in this section shall prevent an employer, insurance
carrier, group self-insurance association, or certified workplace
medical plan from contracting with a provider of medical care for a
reimbursement rate that is greater than or less than limits
established by the Fee Schedule.

6. A treating physician may not charge more than Four Hundred
Dollars ($400.00) per hour for preparation for or testimony at a
deposition or appearance before the Commission in connection with a
claim covered by the Administrative Workers’ Compensation Act.

7. The Commission’s review of medical and treatment charges
pursuant to this section shall be conducted pursuant to the Fee
Schedule in existence at the time the medical care or treatment was
provided. The judgment approving the medical and treatment charges
pursuant to this section shall be enforceable by the Commission in

ENR. S. B. NO. 1877 Page 814
the same manner as provided in the Administrative Workers’
Compensation Act for the enforcement of other compensation payments.

8. Charges for prescription drugs dispensed by a pharmacy shall
be limited to ninety percent (90%) of the average wholesale price of
the prescription, plus a dispensing fee of Five Dollars ($5.00) per
prescription. “Average wholesale price” means the amount determined
from the latest publication designated by the Commission.
Physicians shall prescribe and pharmacies shall dispense generic
equivalent drugs when available. If the National Drug Code, or
“NDC”, for the drug product dispensed is for a repackaged drug, then
the maximum reimbursement shall be the lesser of the original
labeler’s NDC and the lowest-cost therapeutic equivalent drug
product. Compounded medications shall be billed by the compounding
pharmacy at the ingredient level, with each ingredient identified
using the applicable NDC of the drug product, and the corresponding
quantity. Ingredients with no NDC area are not separately
reimbursable. Payment shall be based on a sum of the allowable fee
for each ingredient plus a dispensing fee of Five Dollars ($5.00)
per prescription.

9. When medical care includes prescription drugs dispensed by a
physician or other medical care provider and the NDC for the drug
product dispensed is for a repackaged drug, then the maximum
reimbursement shall be the lesser of the original labeler’s NDC and
the lowest-cost therapeutic equivalent drug product. Payment shall
be based upon a sum of the allowable fee for each ingredient plus a
dispensing fee of Five Dollars ($5.00) per prescription. Compounded
medications shall be billed by the compounding pharmacy.

10. Implantables are paid in addition to procedural
reimbursement paid for medical or surgical services. A
manufacturer’s invoice for the actual cost to a physician, hospital
or other entity of an implantable device shall be adjusted by the
physician, hospital or other entity to reflect, at the time
implanted, all applicable discounts, rebates, considerations and
product replacement programs and shall be provided to the payer by
the physician or hospital as a condition of payment for the
implantable device. If the physician, or an entity in which the
physician has a financial interest other than an ownership interest
of less than five percent (5%) in a publically traded company,
provides implantable devices, this relationship shall be disclosed

ENR. S. B. NO. 1877 Page 815
to patient, employer, insurance company, third-party commission,
certified workplace medical plan, case managers, and attorneys
representing claimant and defendant. If the physician, or an entity
in which the physician has a financial interest other than an
ownership interest of less than five percent (5%) in a publicly
traded company, buys and resells implantable devices to a hospital
or another physician, the markup shall be limited to ten percent
(10%) above cost.

11. Payment for medical care as required by the Administrative
Workers’ Compensation Act shall be due within forty-five (45) days
of the receipt by the employer or insurance carrier of a complete
and accurate invoice, unless the employer or insurance carrier has a
good-faith reason to request additional information about such
invoice. Thereafter, the Commission may assess a penalty up to
twenty-five percent (25%) for any amount due under the Fee Schedule
that remains unpaid on the finding by the Commission that no good-
faith reason existed for the delay in payment. If the Commission
finds a pattern of an employer or insurance carrier willfully and
knowingly delaying payments for medical care, the Commission may
assess a civil penalty of not more than Five Thousand Dollars
($5,000.00) per occurrence.

12. If an employee fails to appear for a scheduled appointment
with a physician or chiropractor, the employer or insurance company
shall pay to the physician or chiropractor a reasonable charge, to
be determined by the Commission, for the missed appointment. In the
absence of a good-faith reason for missing the appointment, the
Commission shall order the employee to reimburse the employer or
insurance company for the charge.

13. Physicians or chiropractors providing treatment under the
Administrative Workers’ Compensation Act shall disclose under
penalty of perjury to the Commission, on a form prescribed by the
Commission, any ownership or interest in any health care facility,
business, or diagnostic center that is not the physician’s or
chiropractor’s primary place of business. The disclosure shall
include any employee leasing arrangement between the physician or
chiropractor and any health care facility that is not the
physician’s or chiropractor’s primary place of business. A
physician’s or chiropractor’s failure to disclose as required by
this section shall be grounds for the Commission to disqualify the

ENR. S. B. NO. 1877 Page 816
physician or chiropractor from providing treatment under the
Administrative Workers’ Compensation Act.

14. a. Beginning on May 28, 2019, the Commission shall
conduct an evaluation of the Fee Schedule, which shall
include an update of the list of Current Procedural
Terminology (CPT) codes, a line item adjustment or
renewal of all rates, and amendment as needed to the
rules applicable to the Fee Schedule.

b. The Commission shall contract with an external
consultant with knowledge of workers’ compensation fee
schedules to review regional and nationwide
comparisons of Oklahoma’s Fee Schedule rates and date
and market for medical services. The consultant shall
receive written and oral comment from employers,
workers’ compensation medical service and insurance
providers, self-insureds, group self-insurance
associations of this state and the public. The
consultant shall submit a report of its findings and a
proposed amended Fee Schedule to the Commission.

c. The Commission shall adopt the proposed amended Fee
Schedule in whole or in part and make any additional
updates or adjustments. The Commission shall,
utilizing the centralized filing system provided for
in Section 378 of this act, electronically submit a
proposed updated and adjusted Fee Schedule to the
President Pro Tempore of the Senate, the Speaker of
the House of Representatives, and the Governor. The
proposed Fee Schedule shall become effective on July 1
following the legislative session, if approved by
Joint Resolution of the Legislature during the session
in which a proposed Fee Schedule is submitted.

d. Beginning on May 28, 2019, an external evaluation
shall be conducted and a proposed amended Fee Schedule
shall be submitted to the Legislature for approval
during the 2020 legislative session. Thereafter, an
external evaluation shall be conducted and a proposed
amended Fee Schedule shall be submitted to the
Legislature for approval every two (2) years.

ENR. S. B. NO. 1877 Page 817

I. Formulary. The Commission by rule shall adopt a closed
formulary. Rules adopted by the Commission shall allow an appeals
process for claims in which a treating doctor determines and
documents that a drug not included in the formulary is necessary to
treat an injured employee’s compensable injury. The Commission by
rule shall require the use of generic pharmaceutical medications and
clinically appropriate over-the-counter alternatives to prescription
medications unless otherwise specified by the prescribing doctor, in
accordance with applicable state law.

SECTION 389. AMENDATORY 85A O.S. 2021, Section 60, is
amended to read as follows:

Section 60. The Physician Advisory Committee may recommend the
adoption of a method or system to evaluate permanent disability that
shall deviate from, or be used in place of or in combination with
the Guides. Such recommendation shall be made to the Workers’
Compensation Commission which may adopt the recommendation in part
or in whole. The adopted method or system shall be electronically
submitted by the Executive Director of the Commission to the
Governor, the Speaker of the House of Representatives, and the
President Pro Tempore of the Senate within the first ten (10)
legislative days of a regular session of the Legislature utilizing
the centralized filing system provided for in Section 378 of this
act. Such method or system so submitted shall be subject to
disapproval by joint or concurrent resolution of the Legislature
during the legislative session in which submitted. If disapproved,
the existing method of determining permanent partial disability
shall continue in effect. If the Legislature takes no action on the
method or system submitted by the Executive Director, the method or
system shall become operative thirty (30) days following the
adjournment of the Legislature.

SECTION 390. AMENDATORY 85A O.S. 2021, Section 101, is
amended to read as follows:

Section 101. A. On or before the first day of July each year,
the Workers’ Compensation Commission shall prepare, make public and,
utilizing the centralized filing system provided for in Section 378
of this act, electronically submit a report for the prior calendar
year to the Governor, the President Pro Tempore of the Senate, the

ENR. S. B. NO. 1877 Page 818
Speaker of the House of Representatives, and each member of the
Legislature, containing a statement of the number of awards made and
the causes of the accidents leading to the injuries for which the
awards were made, total work load data of the administrative law
judges, including a detailed report of the work load and judgments
written by each judge, a detailed statement of the expenses of the
Commission, together with any other matter which the Commission
deems proper to report.

B. After public hearing and consultation with representatives
of employers, insurance carriers, and employees, the Commission
shall implement, with the assistance of the Insurance Commissioner,
an electronic data interchange (EDI) system that provides relevant
data concerning the Oklahoma workers’ compensation system and the
delivery of benefits to injured workers on a timetable to be
reasonably determined by the Commission.

C. To assist the Commission in developing and implementing the
EDI system, there is hereby created the Oklahoma Workers’
Compensation Electronic Data Interchange Advisory Committee. The
Governor shall appoint five persons to serve as members of the
advisory committee, one of whom shall be selected by the Governor as
chair. The chair shall provide adequate notice of meetings of the
advisory committee and public hearings as required by law.

SECTION 391. AMENDATORY 85A O.S. 2021, Section 121, is
amended to read as follows:

Section 121. A. There is hereby created an Advisory Council on
Workers’ Compensation.

B. The voting membership of the Advisory Council shall consist
of nine (9) members. Any member serving on the effective date of
this section shall serve the remainder of his or her term. The
chair of the Workers’ Compensation Commission shall be an ex officio
nonvoting member.

1. The Governor shall appoint three members representing
employers in this state, one of whom shall be from a list of
nominees provided by the predominant statewide broad-based business
organization.

ENR. S. B. NO. 1877 Page 819
2. The Speaker of the House of Representatives shall appoint
three members representing employees in this state, one of whom
shall be from a list of nominees provided by the most representative
labor organization in the state.

3. The President Pro Tempore of the Senate shall appoint three
members, two who are attorneys representing the legal profession in
this state, one of whom shall be an attorney who practices primarily
in the area of defense of workers’ compensation claims, and one of
whom shall be an attorney who primarily represents claimants, and a
medical doctor or doctor of osteopathy actively engaged in the
treatment of injured workers.

C. The term of office for appointees shall be as follows:

1. The term of office for three positions, one each appointed
by the Governor, the President Pro Tempore of the Senate and the
Speaker of the House of Representatives shall expire on January 1,
2015;

2. The term of office for three positions, one each appointed
by the Governor, the President Pro Tempore of the Senate and the
Speaker of the House of Representatives shall expire on January 1,
2016; and

3. The term of office for three positions, one each appointed
by the Governor, the President Pro Tempore of the Senate and the
Speaker of the House of Representatives shall expire on January 1,
2017.

D. Thereafter, successors in office shall be appointed for a
three-year term. Members shall be eligible to succeed themselves in
office.

E. Any person appointed to fill a vacancy shall be appointed
for the unexpired portion of the term.

F. The chair and the vice-chair of the Advisory Council shall
be appointed by the Governor.

ENR. S. B. NO. 1877 Page 820
G. Members shall receive their traveling and other necessary
expenses incurred in the performance of their duties as provided in
the State Travel Reimbursement Act.

H. Meetings of the Advisory Council shall be quarterly or as
called by the chair or upon petition by a majority of the voting
members. The presence of five voting members constitutes a quorum.
No action shall be taken by the Advisory Council without the
affirmative vote of at least five members.

I. The Commission shall provide office supplies and personnel
of the Commission to carry out any of the duties that have been
entrusted to the Advisory Council.

J. The Advisory Council shall analyze and review the workers’
compensation system, the reports of the Commission, and trends in
the field of workers’ compensation. The Advisory Council may
recommend improvements and proper responses to developing trends.
The Advisory Council shall, utilizing the centralized filing system
provided for in Section 378 of this act, electronically report its
findings annually to the Governor, the Chief Justice of the Supreme
Court, the President Pro Tempore of the Senate, and the Speaker of
the House of Representatives.

K. In addition to other duties required by this section, the
Advisory Council shall consult with the Commission regarding
oversight of independent medical examiners as provided in Section 45
of this title.

SECTION 392. AMENDATORY 85A O.S. 2021, Section 400, as
amended by Section 3, Chapter 279, O.S.L. 2024 (85A O.S. Supp. 2025,
Section 400), is amended to read as follows:

Section 400. A. The Workers’ Compensation Court of Existing
Claims (CEC) shall have exclusive jurisdiction over all disputes
relating to claims that arise before February 1, 2014.

B. Effective July 1, 2024, the Workers’ Compensation Court of
Existing Claims shall consist of one judge to be appointed by the
Chief Justice of the Supreme Court from a list of retired judges on
a rotational basis. An active retired judge appointed to serve as a
CEC trial judge may receive per diem and travel reimbursement as

ENR. S. B. NO. 1877 Page 821
authorized by subsection F of Section 1104B of Title 20 of the
Oklahoma Statutes. A judge serving on the CEC Division of the Court
of Civil Appeals shall receive no additional compensation other than
the compensation provided by law.

C. 1. Effective July 1, 2024, the position of the
Administrator of the Court of Existing Claims shall terminate. All
administrative duties of the CEC shall be transferred to the
Oklahoma Workers’ Compensation Commission including docketing,
filing, preparation of appellate records, preparation of orders, and
all other duties previously performed by the Administrator and the
court clerk of the CEC. The Commission shall provide the use of a
courtroom to the CEC judge to conduct hearings on claims for
compensation and other proceedings.

2. All judicial functions of the CEC shall remain under the
authority of the Supreme Court. The Administrative Director of the
Courts shall assist the Commission with the transfer of any duties
determined to be judicial functions. The Director shall contract
with the Commission to provide support services or personnel needs
necessary to carry out the purposes of the CEC and shall supervise
the work of any such personnel as necessary to maintain the CEC as a
court of record. The Director shall assist the CEC trial judge and
the CEC Division of the Court of Civil Appeals as needed and may
expend funds for personnel, contracts for court reporting, and other
support services.

D. The Commission shall maintain the case management and
records information technology system of the CEC as part of the
system of the Commission and such system shall be utilized by the
CEC trial judge. The Commission shall be entitled to any fees
generated for the retrieval of such data. The Director shall enter
into an agreement with the Commission for the CEC to share in the
cost for annual maintenance attributed to case management,
docketing, and recordkeeping on behalf of the CEC.

E. The non-CEC case management system, docketing, appellate
records, and other records maintained in the normal course of
business of the Court of Civil Appeals shall remain with the
Oklahoma Court Information System (OCIS) of the Supreme Court. The
Director may contract and expend funds as needed to modify the OCIS

ENR. S. B. NO. 1877 Page 822
to support the CEC trial judge and the CEC Division of the Court of
Civil Appeals.

F. The CEC shall operate by the rules adopted by the Workers’
Compensation Court prior to February 1, 2014. The CEC Division of
the Court of Civil Appeals shall adopt rules of practice and
procedure for appeals to the CEC Division.

G. The CEC shall continue as a court of record, with respect to
any matter within the limits of its jurisdiction. Any party to a
hearing on a claim for compensation before the CEC trial judge or
the CEC Division shall be entitled to the services of a court
reporter. The cost of transcripts shall be borne by the requesting
party unless otherwise determined by order of the CEC trial judge.

H. The Director shall contract with the Commission for office
and courtroom space for the CEC trial judge. The CEC trial judge
may hold hearings and other proceedings in facilities provided by
the Director or the Commission.

I. 1. The CEC trial judge shall be vested with jurisdiction
over all claims filed pursuant to the Workers’ Compensation Code or
previous statute in effect on the date of an injury that occurred
before February 1, 2014. All claims so filed shall be heard by the
judge sitting without a jury. The CEC trial judge shall have full
power and authority to determine all questions in relation to
payment of claims for compensation under the provisions of the
Workers’ Compensation Code or previous statute in effect on the date
of an injury that occurred before February 1, 2014.

2. The Commission shall coordinate with the Director to
schedule a docket for hearings on claims for compensation and other
proceedings requested by either party, including all cases pending
on the effective date of this act. Hearings on claims for
compensation and other proceedings may be conducted in person or
remotely at the discretion of the CEC trial judge. The CEC trial
judge may conduct other proceedings on preliminary or supplemental
matters as needed. If any claim or proceeding is assigned to the
Commission by the CEC trial judge for a preliminary review, the
chair of the Commission may assign the matter to any Commission
administrative law judge (ALJ), or other hearing officer. Any party

ENR. S. B. NO. 1877 Page 823
may present evidence and be represented by counsel before the CEC
trial judge, the ALJ, or other hearing officer.

3. Upon receipt of the recommendation of the ALJ or other
hearing officer, any party may request a de novo rehearing with the
CEC trial judge or may waive the rehearing. If both parties waive
the rehearing, any recommendation by the ALJ or other hearing
officer shall not become a final determination until approved by
order of the CEC trial judge. Only the final order based upon the
decision of the CEC trial judge shall be appealable.

4. The decision of the CEC trial judge shall be final as to all
questions of fact and law; provided, the decision of the CEC trial
judge may be appealed to the CEC Division of the Court of Civil
Appeals within ten (10) days or the Supreme Court as provided by the
Workers’ Compensation Code or previous statute in effect on the date
of an injury that occurred before February 1, 2014. The Commission
shall coordinate with the Director to schedule a docket for hearings
on appeals to the CEC Division of the Court of Civil Appeals,
including all cases pending on the effective date of this act. The
parties may appeal a decision of the CEC Division to the Supreme
Court as provided by the Supreme Court rules in the same manner as
from the three-judge en banc panel. The decision of the CEC trial
judge shall be issued within thirty (30) days following the
submission of the case by the parties. The power and jurisdiction
of the CEC trial judge over each case shall be continuing and he or
she may, from time to time, make such modifications or changes with
respect to former findings or orders relating thereto if, in his or
her opinion, it may be justified.

J. For an injury occurring before February 1, 2014, all
benefits and procedures to obtain benefits shall be determined by
the workers’ compensation law of this state in effect on the date of
the injury.

K. All accrued rights and penalties incurred pursuant to a
final order of the CEC trial judge shall be preserved. No accrued
right, penalty incurred, or proceeding begun by virtue of a statute
repealed by this act shall be abrogated by the terms of this act.

L. 1. On or before July 1 of each year, the Administrator of
the Commission shall prepare and electronically submit a report for

ENR. S. B. NO. 1877 Page 824
the prior calendar year to the Governor, the Chief Justice of the
Supreme Court, the President Pro Tempore of the Senate, and the
Speaker of the House of Representatives, utilizing the centralized
filing system provided for in Section 378 of this act, which shall
include a statement of the number of awards made and the causes of
the accidents leading to the injuries for which the awards were
made, total work load data of the CEC trial judge, a detailed
statement of the expenses of the Commission for all administrative
duties performed on behalf of the CEC, together with any other
matter which the Commission deems proper to report to the Governor
including any recommendations he or she may desire to make.

2. On or before July 1 of each year, the Director shall
electronically submit to the officials listed in paragraph 1 of this
subsection, utilizing the centralized filing system provided for in
Section 378 of this act, a report for the prior calendar year which
shall include the total workload of the CEC Division of the Court of
Civil Appeals and a detailed statement of expenses incurred because
of three-judge en banc panel appeals.

M. Subject to the availability of funds, the Director may enter
into a contract to employ one part-time attorney to assist parties
without representation with duties and assignments to be determined
by the CEC trial judge and Director.

SECTION 393. REPEALER Section 6, Chapter 222, O.S.L.
2024 (2 O.S. Supp. 2025, Section 5-606), is hereby repealed.

SECTION 394. REPEALER 2 O.S. 2021, Section 18-34, is
hereby repealed.

SECTION 395. REPEALER 2 O.S. 2021, Section 18-192, is
hereby repealed.

SECTION 396. REPEALER 10 O.S. 2021, Section 630.2, is
hereby repealed.

SECTION 397. REPEALER Section 1, Chapter 288, O.S.L.
2024 (17 O.S. Supp. 2025, Section 294), is hereby repealed.

SECTION 398. REPEALER 19 O.S. 2021, Section 547.2, is
hereby repealed.

ENR. S. B. NO. 1877 Page 825

SECTION 399. REPEALER 20 O.S. 2021, Section 127, is
hereby repealed.

SECTION 400. REPEALER 20 O.S. 2021, Section 1103H, is
hereby repealed.

SECTION 401. REPEALER Section 1, Chapter 333, O.S.L.
2023, as amended by Section 4, Chapter 329, O.S.L. 2025 (21 O.S.
Supp. 2025, Section 2200), is hereby repealed.

SECTION 402. REPEALER 36 O.S. 2021, Section 6057.5, is
hereby repealed.

SECTION 403. REPEALER 36 O.S. 2021, Section 6060.9c, is
hereby repealed.

SECTION 404. REPEALER 36 O.S. 2021, Section 6060.13, is
hereby repealed.

SECTION 405. REPEALER Section 5, Chapter 151, O.S.L.
2022 (36 O.S. Supp. 2025, Section 6060.44), is hereby repealed.

SECTION 406. REPEALER 40 O.S. 2021, Section 800.1, as
amended by Section 1, Chapter 401, O.S.L. 2022 (40 O.S. Supp. 2025,
Section 800.1), is hereby repealed.

SECTION 407. REPEALER Section 1, Chapter 232, O.S.L.
2023 (47 O.S. Supp. 2025, Section 173.1), is hereby repealed.

SECTION 408. REPEALER 56 O.S. 2021, Section 162.1b, is
hereby repealed.

SECTION 409. REPEALER 56 O.S. 2021, Section 245, is
hereby repealed.

SECTION 410. REPEALER 56 O.S. 2021, Section 245.1, is
hereby repealed.

SECTION 411. REPEALER 56 O.S. 2021, Section 3121, is
hereby repealed.

ENR. S. B. NO. 1877 Page 826
SECTION 412. REPEALER 57 O.S. 2021, Section 521.1, is
hereby repealed.

SECTION 413. REPEALER 62 O.S. 2021, Section 46.5, is
hereby repealed.

SECTION 414. REPEALER 63 O.S. 2021, Section 2-112, is
hereby repealed.

SECTION 415. REPEALER 63 O.S. 2021, Section 2175.1, is
hereby repealed.

SECTION 416. REPEALER 63 O.S. 2021, Section 5009.6, is
hereby repealed.

SECTION 417. REPEALER 63 O.S. 2021, Section 5030.4A, is
hereby repealed.

SECTION 418. REPEALER 70 O.S. 2021, Section 3-116.5, is
hereby repealed.

SECTION 419. REPEALER 70 O.S. 2021, Section 3-123.1, is
hereby repealed.

SECTION 420. REPEALER 70 O.S. 2021, Section 628.19, is
hereby repealed.

SECTION 421. REPEALER 70 O.S. 2021, Section 7001, is
hereby repealed.

SECTION 422. REPEALER 74 O.S. 2021, Section 20l, is
hereby repealed.

SECTION 423. REPEALER 74 O.S. 2021, Section 30c, is
hereby repealed.

SECTION 424. REPEALER 74 O.S. 2021, Section 30.2, is
hereby repealed.

SECTION 425. REPEALER 74 O.S. 2021, Section 2900.3, is
hereby repealed.

ENR. S. B. NO. 1877 Page 827
SECTION 426. REPEALER 74 O.S. 2021, Section 9100, is
hereby repealed.

SECTION 427. REPEALER 82 O.S. 2021, Section 1088.14, is
hereby repealed.

SECTION 428. This act shall become effective January 1, 2027.

ENR. S. B. NO. 1877 Page 828
Passed the Senate the 17th day of March, 2026.

Presiding Officer of the Senate

Passed the House of Representatives the 6th day of May, 2026.

Presiding Officer of the House
of Representatives

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: _________________________________