1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1564 By: Dugger
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6 AS INTRODUCED
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7 An Act relating to revenue; amending 68 O.S. 2021,
7 Section 3003, which relates to income of political
8 subdivisions; allowing political subdivisions to use
8 state and tribal funds in certain processes; updating
9 statutory language; and providing an effective date.
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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13 SECTION 1. AMENDATORY 68 O.S. 2021, Section 3003, is
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14 amended to read as follows:
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15 Section 3003. A. It shall be unlawful for the governing board
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16 of any county, city, town, school district, or other governmental
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17 subdivision of this state, in preparation of its budget for any
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18 fiscal year, to estimate as probable income from sources other than
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19 ad valorem tax of such governmental subdivision of the state and
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20 other than any excise or other tax assessed by legislative enactment
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21 and distributed in lieu of ad valorem taxes, any revenue from
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22 nonrecurrent sources, regardless of such collections in the
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23 immediately preceding fiscal year, to be derived from or the result
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24 of sales, forfeitures, penalties, gifts, federal aid allotments of
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 1 every kind, windfalls, seizures, sheriff’s sales, court actions
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2 whether civil or criminal, injunctions or protests won or released
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3 by dismissal, or from any other such source not normally recurrent
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4 year after year and so made recurrent by legislative enactment.
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5 Provided, that upon a finding by the governing board of any county,
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6 city, town, school district, or other governmental subdivision of
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7 this state, that a source of income, although nonrecurrent, will
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8 actually be available for the next ensuing fiscal year, the board
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9 may include such income in its estimate of probable income.
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10 Provided, that shared revenues of the federal government, if
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11 ascertainable, shall be allowed to be included in the estimates. It
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12 shall also be unlawful for any excise board to approve or require
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13 the same, or for any supervisory state board, commission, or
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14 officer, or for any agent or employee of either thereof to
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15 countenance, approve, or require the same or to diminish in any
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16 degree the distribution or allotment of state revenues or
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17 appropriations by reason of such collections in a prior year or
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18 prospect of such collections in the ensuing year; nor shall any
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19 revenue received by a school district from gross production taxes
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20 during the immediately preceding fiscal year, which was payable to
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21 such district in another year or years, be considered as minimum
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22 program income of such district for state aid purposes. The
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23 provisions of Section 21 of Title 21 of the Oklahoma Statutes shall
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24 be applicable where the foregoing prohibitions are disregarded.
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 1 Revenue received by a school district during the immediately
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2 preceding year, which was earned by, or which was payable to, such
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3 school district in another year or years, shall not be considered as
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4 minimum program income of such district for state aid purposes.
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5 B. All funds received by counties, cities, towns, or other
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6 subdivisions of government in the State of Oklahoma this state,
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7 hereinafter referred to as the recipient government, from the
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8 federal government pursuant to the distribution of funds authorized
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9 by the state shall be deposited in the treasury of the recipient
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10 government in a fund which shall be recorded and accounted for
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11 separately and apart from all other funds. Principal and interest
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12 received from investments of the federal monies, proceeds from the
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13 sale of assets purchased from the federal monies, and other
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14 miscellaneous income derived from the direct operation of the
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15 federal monies may be deposited in the fund from which the federal
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16 monies were deposited if required by the federal government or by
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17 the governing board of the recipient government.
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18 The unappropriated cash balance on hand may be appropriated as
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19 needed upon the request of the governing board of the recipient
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20 government and approval by the county excise board,; provided, if
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21 the governing board of the recipient government determines the need
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22 to do so, it may estimate the amount remaining to be collected from
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23 its entitlement from federal funds during the remainder of its
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24 fiscal year and include such estimate in its request for
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 1 appropriations. The estimate shall not exceed the amount of the
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2 entitlement which is to be received during the remainder of the
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3 recipient government’s fiscal year or, if the amount of the
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4 entitlement has not been certified, ninety percent (90%) of such
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5 funds received during a corresponding period of the previous fiscal
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6 year; provided, that if the entitlement is less than that estimated
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7 or if the entitlement to be collected during the recipient
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8 government’s fiscal year, in addition to the unappropriated cash
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9 balance, is reduced below the amount appropriated for the fiscal
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10 year, the governing board of the recipient government shall request
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11 the county excise board for an adequate reduction of appropriations
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12 in the fund.
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13 All disbursements made from the fund in which federal monies are
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14 deposited shall be made in the same manner as those made from the
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15 general fund of the recipient government; provided, that, no
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16 warrants shall be drawn on the fund unless sufficient monies are
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17 available to pay the warrants.
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18 All forms and procedures necessary for the effective operation
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19 of this act shall be prescribed by the office of the State Auditor
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20 and Inspector.
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21 C. All monies distributed by the federal, state, or tribal
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22 government governments and received by any state agency, board, or
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23 commission to administer and distribute to counties, cities, towns,
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24 or other subdivisions of the government in the State of Oklahoma
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 1 this state, hereinafter referred to as the recipient government,
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2 that do not follow procedures in subsection B of this section may
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3 utilize the letter of commitment appropriation process as specified
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4 in this subsection. The recipient government shall receive approval
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5 for the program as required by the agency, board, or commission
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6 administering the program and by the federal government, if
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7 required. Once approved, the state agency, board, or commission may
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8 authorize a letter of commitment of federal, state, or tribal monies
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9 available to the recipient government. The Excise Board excise
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10 board may approve an appropriation in the amount of the letter of
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11 commitment. Each recipient government may establish a separate
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12 appropriation within a special revenue fund designated for federal,
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13 state, or tribal monies. The recipient government may encumber
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14 funds in an amount not to exceed the sum of the total letter of
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15 commitment, which is a binding commitment of funding which the
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16 recipient government will receive for the project or projects
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17 eligible for such federal funding. The encumbrance of funds
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18 authorized by this section shall be made in accordance with
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19 procedures prescribed by the State Auditor and Inspector and shall
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20 be administered in accordance with rules and regulations concerning
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21 such distribution adopted by the federal government and the state
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22 agency, board, or commission. Any expenditure incurred by the
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23 recipient government using the letter of commitment appropriation
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24 process and disallowed by the federal, state, or tribal government
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 1 or state agency, board, or commission administering the funds shall
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2 be paid by the recipient government.
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3 SECTION 2. This act shall become effective November 1, 2024.
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5 59-2-2622 MSBB 1/5/2024 12:23:30 PM
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