Bill No. 1221, known as the State Accounts for Federal Expenditures Act (SAFE Act), establishes a framework for managing federal funds received by state agencies in Oklahoma. It creates SAFE Accounts specifically for funds from competitive grants, direct payments not tied to existing federal programs, and block grants. Agencies will be required to notify key legislative and executive leaders about their applications for competitive grants and provide detailed information during budget performance reviews. The bill mandates that no agency can access these funds without legislative approval, which must be granted through a concurrent resolution. Additionally, the bill outlines exemptions for certain types of funds and specifies that existing federal programs will not be affected unless they require reapplication for competitive grants after a specified date.

The bill also amends existing statutes to enhance reporting requirements for state agencies regarding federal funds. It adds new reporting obligations to include details about competitive grants and federal funds received or expected, as well as how block grant money is utilized. The amendments aim to improve transparency and accountability in the management of federal funds, ensuring that agencies provide comprehensive information on their funding sources and expenditures. The SAFE Act is set to take effect on July 1, 2025, and includes provisions for an emergency declaration to expedite its implementation.