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