Oklahoma Legislature· SB 2184Approved by Governor 05/06/2026

An act relating to multiple versions of statutes, the official text

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1 STATE OF OKLAHOMA

2 2nd Session of the 60th Legislature (2026)

3 SENATE BILL 2184 By: Howard
3

6 AS INTRODUCED

7 An Act relating to multiple versions of statutes;

7 amending, merging, consolidating, and repealing

8 multiple versions of statutes; amending 3 O.S. 2021,

8 Section 65.1, as amended by Section 1, Chapter 135,

9 O.S.L. 2024 (3 O.S. Supp. 2025, Section 65.1);

9 repealing 3 O.S. 2021, Section 65.1, as amended by

10 Section 1, Chapter 18, O.S.L. 2024 (3 O.S. Supp.

10 2025, Section 65.1); repealing 3 O.S. 2021, Section

11 65.2, as amended by Section 2, Chapter 18, O.S.L.

11 2024 (3 O.S. Supp. 2025, Section 65.2); repealing 3

12 O.S. 2021, Section 65.4, as amended by Section 3,

12 Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025, Section

13 65.4); repealing 3 O.S. 2021, Section 65.5, as

13 amended by Section 4, Chapter 18, O.S.L. 2024 (3 O.S.

14 Supp. 2025, Section 65.5); repealing 3 O.S. 2021,

14 Section 65.7, as amended by Section 6, Chapter 18,

15 O.S.L. 2024 (3 O.S. Supp. 2025, Section 65.7);

15 repealing 3 O.S. 2021, Section 65.8, as amended by

16 Section 7, Chapter 18, O.S.L. 2024 (3 O.S. Supp.

16 2025, Section 65.8); repealing 3 O.S. 2021, Section

17 65.10, as amended by Section 8, Chapter 18, O.S.L.

17 2024 (3 O.S. Supp. 2025, Section 65.10); repealing 3

18 O.S. 2021, Section 65.12, as amended by Section 9,

18 Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025, Section

19 65.12); repealing 3 O.S. 2021, Section 65.15, as

19 amended by Section 10, Chapter 18, O.S.L. 2024 (3

20 O.S. Supp. 2025, Section 65.15); repealing 3 O.S.

20 2021, Section 65.16, as amended by Section 11,

21 Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025, Section

21 65.16); repealing 3 O.S. 2021, Section 65.17, as

22 amended by Section 12, Chapter 18, O.S.L. 2024 (3

22 O.S. Supp. 2025, Section 65.17); repealing 3 O.S.

23 2021, Section 82, as last amended by Section 13,

23 Chapter 135, O.S.L. 2024 (3 O.S. Supp. 2025, Section

24 82); amending 3 O.S. 2021, Section 85, as last

Req. No. 3559 Page 1
1 amended by Section 1, Chapter 164, O.S.L. 2025 (3

1 O.S. Supp. 2025, Section 85); repealing 3 O.S. 2021,

2 Section 85, as last amended by Section 14, Chapter

2 18, O.S.L. 2024 (3 O.S. Supp. 2025, Section 85);

3 repealing 3 O.S. 2021, Section 85, as last amended by

3 Section 14, Chapter 135, O.S.L. 2024 (3 O.S. Supp.

4 2025, Section 85); repealing 3 O.S. 2021, Section

4 421, as last amended by Section 15, Chapter 18,

5 O.S.L. 2024 (3 O.S. Supp. 2025, Section 421);

5 amending 10 O.S. 2021, Section 1116.2, as amended by

6 Section 7, Chapter 347, O.S.L. 2024 (10 O.S. Supp.

6 2025, Section 1116.2); repealing 10 O.S. 2021,

7 Section 1116.2, as amended by Section 1, Chapter 237,

7 O.S.L. 2024 (10 O.S. Supp. 2025, Section 1116.2);

8 amending 10 O.S. 2021, Section 1116.6, as amended by

8 Section 9, Chapter 347, O.S.L. 2024 (10 O.S. Supp.

9 2025, Section 1116.6); repealing 10 O.S. 2021,

9 Section 1116.6, as amended by Section 2, Chapter 237,

10 O.S.L. 2024 (10 O.S. Supp. 2025, Section 1116.6);

10 amending 10A O.S. 2021, Section 1-1-105, as amended

11 by Section 1, Chapter 375, O.S.L. 2025 (10A O.S.

11 Supp. 2025, Section 1-1-105); repealing 10A O.S.

12 2021, Section 1-1-105, as amended by Section 1,

12 Chapter 149, O.S.L. 2025 (10A O.S. Supp. 2025,

13 Section 1-1-105); amending 15 O.S. 2021, Section

13 141.13, as amended by Section 7, Chapter 225, O.S.L.

14 2024 (15 O.S. Supp. 2025, Section 141.13); repealing

14 15 O.S. 2021, Section 141.13, as amended by Section

15 1, Chapter 72, O.S.L. 2016; amending 18 O.S. 2021,

15 Section 1006, as amended by Section 10, Chapter 120,

16 O.S.L. 2024 (18 O.S. Supp. 2025, Section 1006);

16 repealing 18 O.S. 2021, Section 1006, as amended by

17 Section 1, Chapter 121, O.S.L. 2024 (18 O.S. Supp.

17 2025, Section 1006); amending 19 O.S. 2021, Section

18 1505, as last amended by Section 2, Chapter 85,

18 O.S.L. 2025 (19 O.S. Supp. 2025, Section 1505);

19 repealing 19 O.S. 2021, Section 1505, as last amended

19 by Section 1, Chapter 66, O.S.L. 2025 (19 O.S. Supp.

20 2025, Section 1505); amending 22 O.S. 2021, Section

20 60.4, as last amended by Section 704, Chapter 486,

21 O.S.L. 2025 (22 O.S. Supp. 2025, Section 60.4);

21 repealing 22 O.S. 2021, Section 60.4, as last amended

22 by Section 1, Chapter 40, O.S.L. 2025 (22 O.S. Supp.

22 2025, Section 60.4); amending 22 O.S. 2021, Section

23 60.6, as amended by Section 474, Chapter 486, O.S.L.

23 2025 (22 O.S. Supp. 2025, Section 60.6); repealing 22

24 O.S. 2021, Section 60.6, as amended by Section 2,

Req. No. 3559 Page 2
1 Chapter 145, O.S.L. 2025 (22 O.S. Supp. 2025, Section

1 60.6); amending 22 O.S. 2021, Section 152, as last

2 amended by Section 1, Chapter 115, O.S.L. 2025 (22

2 O.S. Supp. 2025, Section 152); repealing 22 O.S.

3 2021, Section 152, as last amended by Section 1,

3 Chapter 310, O.S.L. 2024 (22 O.S. Supp. 2025, Section

4 152); amending 47 O.S. 2021, Section 6-101, as last

4 amended by Section 3, Chapter 330, O.S.L. 2025 (47

5 O.S. Supp. 2025, Section 6-101); repealing 47 O.S.

5 2021, Section 6-101, as last amended by Section 13,

6 Chapter 310, O.S.L. 2023 (47 O.S. Supp. 2025, Section

6 6-101); repealing 47 O.S. 2021, Section 6-101, as

7 last amended by Section 2, Chapter 11, O.S.L. 2024

7 (47 O.S. Supp. 2025, Section 6-101); repealing 47

8 O.S. 2021, Section 6-101, as last amended by Section

8 3, Chapter 171, O.S.L. 2025 (47 O.S. Supp. 2025,

9 Section 6-101); amending 47 O.S. 2021, Section 6-102,

9 as last amended by Section 1, Chapter 450, O.S.L.

10 2024 (47 O.S. Supp. 2025, Section 6-102); repealing

10 47 O.S. 2021, Section 6-102, as last amended by

11 Section 1, Chapter 123, O.S.L. 2025 (47 O.S. Supp.

11 2025, Section 6-102); amending 47 O.S. 2021, Section

12 6-105, as last amended by Section 38, Chapter 452,

12 O.S.L. 2024 (47 O.S. Supp. 2025, Section 6-105);

13 repealing 47 O.S. 2021, Section 6-105, as last

13 amended by Section 2, Chapter 450, O.S.L. 2024 (47

14 O.S. Supp. 2025, Section 6-105); repealing 47 O.S.

14 2021, Section 6-105, as last amended by Section 3,

15 Chapter 11, O.S.L. 2024 (47 O.S. Supp. 2025, Section

15 6-105); amending 47 O.S. 2021, Section 6-105.3, as

16 last amended by Section 4, Chapter 330, O.S.L. 2025

16 (47 O.S. Supp. 2025, Section 6-105.3); repealing 47

17 O.S. 2021, Section 6-105.3, as last amended by

17 Section 4, Chapter 11, O.S.L. 2024 (47 O.S. Supp.

18 2025, Section 6-105.3); repealing 47 O.S. 2021,

18 Section 6-105.3, as last amended by Section 1,

19 Chapter 101, O.S.L. 2024 (47 O.S. Supp. 2025, Section

19 6-105.3); repealing 47 O.S. 2021, Section 6-105.3, as

20 last amended by Section 3, Chapter 315, O.S.L. 2024

20 (47 O.S. Supp. 2025, Section 6-105.3); amending 47

21 O.S. 2021, Section 6-110, as last amended by Section

21 4, Chapter 450, O.S.L. 2024 (47 O.S. Supp. 2025,

22 Section 6-110); repealing 47 O.S. 2021, Section 6-

22 110, as last amended by Section 44, Chapter 452,

23 O.S.L. 2024 (47 O.S. Supp. 2025, Section 6-110);

23 repealing 47 O.S. 2021, Section 6-110, as last

24 amended by Section 6, Chapter 11, O.S.L. 2024 (47

Req. No. 3559 Page 3
1 O.S. Supp. 2025, Section 6-110); amending 47 O.S.

1 2021, Section 6-111, as last amended by Section 2,

2 Chapter 310, O.S.L. 2025 (47 O.S. Supp. 2025, Section

2 6-111); repealing 47 O.S. 2021, Section 6-111, as

3 last amended by Section 5, Chapter 330, O.S.L. 2025

3 (47 O.S. Supp. 2025, Section 6-111); amending 47 O.S.

4 2021, Section 6-301, as last amended by Section 3,

4 Chapter 38, O.S.L. 2025 (47 O.S. Supp. 2025, Section

5 6-301); repealing 47 O.S. 2021, Section 6-301, as

5 last amended by Section 516, Chapter 486, O.S.L. 2025

6 (47 O.S. Supp. 2025, Section 6-301); amending 47 O.S.

6 2021, Section 563, as last amended by Section 3,

7 Chapter 448, O.S.L. 2025 (47 O.S. Supp. 2025, Section

7 563); repealing 47 O.S. 2021, Section 563, as last

8 amended by Section 3, Chapter 236, O.S.L. 2024 (47

8 O.S. Supp. 2025, Section 563); amending 47 O.S. 2021,

9 Section 564, as last amended by Section 4, Chapter

9 448, O.S.L. 2025 (47 O.S. Supp. 2025, Section 564);

10 repealing 47 O.S. 2021, Section 564, as last amended

10 by Section 2, Chapter 119, O.S.L. 2025 (47 O.S. Supp.

11 2025, Section 564); amending 47 O.S. 2021, Section

11 565, as last amended by Section 6, Chapter 448,

12 O.S.L. 2025 (47 O.S. Supp. 2025, Section 565);

12 repealing 47 O.S. 2021, Section 565, as last amended

13 by Section 4, Chapter 119, O.S.L. 2025 (47 O.S. Supp.

13 2025, Section 565); amending 47 O.S. 2021, Section

14 752, as last amended by Section 13, Chapter 330,

14 O.S.L. 2025 (47 O.S. Supp. 2025, Section 752);

15 repealing 47 O.S. 2021, Section 752, as last amended

15 by Section 4, Chapter 172, O.S.L. 2025 (47 O.S. Supp.

16 2025, Section 752); repealing 47 O.S. 2021, Section

16 1102, as last amended by Section 60, Chapter 452,

17 O.S.L. 2024 (47 O.S. Supp. 2025, Section 1102);

17 amending 47 O.S. 2021, Section 1110, as last amended

18 by Section 1, Chapter 403, O.S.L. 2025 (47 O.S. Supp.

18 2025, Section 1110); repealing 47 O.S. 2021, Section

19 1110, as last amended by Section 1, Chapter 323,

19 O.S.L. 2024 (47 O.S. Supp. 2025, Section 1110);

20 amending 47 O.S. 2021, Section 1113, as last amended

20 by Section 72, Chapter 452, O.S.L. 2024 (47 O.S.

21 Supp. 2025, Section 1113); repealing 47 O.S. 2021,

21 Section 1113, as last amended by Section 8, Chapter

22 236, O.S.L. 2024 (47 O.S. Supp. 2025, Section 1113);

22 amending 47 O.S. 2021, Section 1132, as last amended

23 by Section 10, Chapter 236, O.S.L. 2024 (47 O.S.

23 Supp. 2025, Section 1132); repealing 47 O.S. 2021,

24 Section 1132, as last amended by Section 75, Chapter

Req. No. 3559 Page 4
1 452, O.S.L. 2024 (47 O.S. Supp. 2025, Section 1132);

1 repealing 51 O.S. 2021, Section 6, as amended by

2 Section 1, Chapter 303, O.S.L. 2025 (51 O.S. Supp.

2 2025, Section 6); amending 51 O.S. 2021, Section

3 24A.5, as last amended by Section 2, Chapter 404,

3 O.S.L. 2025 (51 O.S. Supp. 2025, Section 24A.5);

4 repealing 51 O.S. 2021, Section 24A.5, as last

4 amended by Section 14, Chapter 11, O.S.L. 2024 (51

5 O.S. Supp. 2025, Section 24A.5); amending 51 O.S.

5 2021, Section 154, as amended by Section 2, Chapter

6 314, O.S.L. 2025 (51 O.S. Supp. 2025, Section 154);

6 repealing 51 O.S. 2021, Section 154, as amended by

7 Section 2, Chapter 292, O.S.L. 2025 (51 O.S. Supp.

7 2025, Section 154); amending 57 O.S. 2021, Section

8 37, as amended by Section 9, Chapter 187, O.S.L. 2025

8 (57 O.S. Supp. 2025, Section 37); repealing 57 O.S.

9 2021, Section 37, as amended by Section 11, Chapter

9 11, O.S.L. 2025 (57 O.S. Supp. 2025, Section 37);

10 repealing 57 O.S. 2021, Section 138, as amended by

10 Section 38, Chapter 59, O.S.L. 2024 (57 O.S. Supp.

11 2025, Section 138); repealing 57 O.S. 2021, Section

11 571, as last amended by Section 40, Chapter 59,

12 O.S.L. 2024 (57 O.S. Supp. 2025, Section 571);

12 amending 59 O.S. 2021, Section 46.4, as last amended

13 by Section 2, Chapter 147, O.S.L. 2024 (59 O.S. Supp.

13 2025, Section 46.4); repealing 59 O.S. 2021, Section

14 46.4, as last amended by Section 4, Chapter 138,

14 O.S.L. 2024 (59 O.S. Supp. 2025, Section 46.4);

15 amending 59 O.S. 2021, Section 46.7, as amended by

15 Section 5, Chapter 138, O.S.L. 2024 (59 O.S. Supp.

16 2025, Section 46.7); repealing 59 O.S. 2021, Section

16 46.7, as amended by Section 3, Chapter 147, O.S.L.

17 2024 (59 O.S. Supp. 2025, Section 46.7); amending 59

17 O.S. 2021, Section 46.9, as amended by Section 6,

18 Chapter 138, O.S.L. 2024 (59 O.S. Supp. 2025, Section

18 46.9); repealing 59 O.S. 2021, Section 46.9, as

19 amended by Section 4, Chapter 147, O.S.L. 2024 (59

19 O.S. Supp. 2025, Section 46.9); amending 59 O.S.

20 2021, Section 46.10, as amended by Section 5, Chapter

20 147, O.S.L. 2024 (59 O.S. Supp. 2025, Section 46.10);

21 repealing 59 O.S. 2021, Section 46.10, as amended by

21 Section 7, Chapter 138, O.S.L. 2024 (59 O.S. Supp.

22 2025, Section 46.10); amending 59 O.S. 2021, Section

22 46.21, as amended by Section 15, Chapter 138, O.S.L.

23 2024 (59 O.S. Supp. 2025, Section 46.21); repealing

23 59 O.S. 2021, Section 46.21, as amended by Section 6,

24 Chapter 147, O.S.L. 2024 (59 O.S. Supp. 2025, Section

Req. No. 3559 Page 5
1 46.21); amending 59 O.S. 2021, Section 46.21b, as

1 amended by Section 1, Chapter 208, O.S.L. 2025 (59

2 O.S. Supp. 2025, Section 46.21b); repealing 59 O.S.

2 2021, Section 46.21b, as amended by Section 7,

3 Chapter 147, O.S.L. 2024 (59 O.S. Supp. 2025, Section

3 46.21b); amending 59 O.S. 2021, Section 46.38, as

4 amended by Section 22, Chapter 138, O.S.L. 2024 (59

4 O.S. Supp. 2025, Section 46.38); repealing 59 O.S.

5 2021, Section 46.38, as amended by Section 8, Chapter

5 147, O.S.L. 2024 (59 O.S. Supp. 2025, Section 46.38);

6 repealing 59 O.S. 2021, Section 328.49, as amended by

6 Section 530, Chapter 486, O.S.L. 2025 (59 O.S. Supp.

7 2025, Section 328.49); amending 59 O.S. 2021, Section

7 353.1, as last amended by Section 5, Chapter 340,

8 O.S.L. 2025 (59 O.S. Supp. 2025, Section 353.1);

8 repealing 59 O.S. 2021, Section 353.1, as last

9 amended by Section 1, Chapter 343, O.S.L. 2025 (59

9 O.S. Supp. 2025, Section 353.1); amending 59 O.S.

10 2021, Section 356.2, as last amended by Section 2,

10 Chapter 300, O.S.L. 2025 (59 O.S. Supp. 2025, Section

11 356.2); repealing 59 O.S. 2021, Section 356.2, as

11 last amended by Section 1, Chapter 414, O.S.L. 2025

12 (59 O.S. Supp. 2025, Section 356.2); amending 59 O.S.

12 2021, Section 357, as last amended by Section 2,

13 Chapter 414, O.S.L. 2025 (59 O.S. Supp. 2025, Section

13 357); repealing 59 O.S. 2021, Section 357, as last

14 amended by Section 6, Chapter 300, O.S.L. 2025 (59

14 O.S. Supp. 2025, Section 357); amending 59 O.S. 2021,

15 Section 360, as last amended by Section 3, Chapter

15 414, O.S.L. 2025 (59 O.S. Supp. 2025, Section 360);

16 repealing 59 O.S. 2021, Section 360, as last amended

16 by Section 8, Chapter 300, O.S.L. 2025 (59 O.S. Supp.

17 2025, Section 360); amending 59 O.S. 2021, Section

17 481, as amended by Section 1, Chapter 227, O.S.L.

18 2024 (59 O.S. Supp. 2025, Section 481); repealing 59

18 O.S. 2021, Section 481, as last amended by Section 1,

19 Chapter 14, O.S.L. 2025 (59 O.S. Supp. 2025, Section

19 481); amending 59 O.S. 2021, Section 493.2, as

20 amended by Section 1, Chapter 61, O.S.L. 2025 (59

20 O.S. Supp. 2025, Section 493.2); repealing 59 O.S.

21 2021, Section 493.2, as amended by Section 3, Chapter

21 350, O.S.L. 2025 (59 O.S. Supp. 2025, Section 493.2);

22 repealing 59 O.S. 2021, Section 1000.2, as amended by

22 Section 1, Chapter 292, O.S.L. 2013; amending 59 O.S.

23 2021, Section 1873, as last amended by Section 1,

23 Chapter 235, O.S.L. 2025 (59 O.S. Supp. 2025, Section

24 1873); repealing 59 O.S. 2021, Section 1873, as last

Req. No. 3559 Page 6
1 amended by Section 1, Chapter 266, O.S.L. 2025 (59

1 O.S. Supp. 2025, Section 1873); amending 63 O.S.

2 2021, Section 1-106, as last amended by Section 3,

2 Chapter 377, O.S.L. 2025 (63 O.S. Supp. 2025, Section

3 1-106); repealing 63 O.S. 2021, Section 1-106, as

3 last amended by Section 13, Chapter 215, O.S.L. 2025

4 (63 O.S. Supp. 2025, Section 1-106); amending 63 O.S.

4 2021, Section 2-312, as last amended by Section 10,

5 Chapter 340, O.S.L. 2025 (63 O.S. Supp. 2025, Section

5 2-312); repealing 63 O.S. 2021, Section 2-312, as

6 last amended by Section 9, Chapter 343, O.S.L. 2025

6 (63 O.S. Supp. 2025, Section 2-312); amending 63 O.S.

7 2021, Section 427.17, as last amended by Section 4,

7 Chapter 447, O.S.L. 2024 (63 O.S. Supp. 2025, Section

8 427.17); repealing 63 O.S. 2021, Section 427.17, as

8 last amended by Section 142, Chapter 452, O.S.L. 2024

9 (63 O.S. Supp. 2025, Section 427.17); amending 66

9 O.S. 2021, Section 304, as amended by Section 1,

10 Chapter 31, O.S.L. 2025 (66 O.S. Supp. 2025, Section

10 304); repealing 66 O.S. 2021, Section 304, as amended

11 by Section 556, Chapter 486, O.S.L. 2025 (66 O.S.

11 Supp. 2025, Section 304); amending 68 O.S. 2021,

12 Section 1353, as last amended by Section 4, Chapter

12 441, O.S.L. 2024 (68 O.S. Supp. 2025, Section 1353);

13 repealing 68 O.S. 2021, Section 1353, as amended by

13 Section 1, Chapter 240, O.S.L. 2022 (68 O.S. Supp.

14 2025, Section 1353); amending 68 O.S. 2021, Section

14 1356, as last amended by Section 1, Chapter 392,

15 O.S.L. 2025 (68 O.S. Supp. 2025, Section 1356);

15 repealing 68 O.S. 2021, Section 1356, as last amended

16 by Section 1, Chapter 444, O.S.L. 2024 (68 O.S. Supp.

16 2025, Section 1356); amending 68 O.S. 2021, Section

17 1357, as last amended by Section 1, Chapter 391,

17 O.S.L. 2025 (68 O.S. Supp. 2025, Section 1357);

18 repealing 68 O.S. 2021, Section 1357, as amended by

18 Section 10, Chapter 229, O.S.L. 2017; repealing 68

19 O.S. 2021, Section 1357, as amended by Section 1,

19 Chapter 68, O.S.L. 2021; repealing 68 O.S. 2021,

20 Section 1357, as last amended by Section 1, Chapter

20 193, O.S.L. 2023 (68 O.S. Supp. 2025, Section 1357);

21 repealing 68 O.S. 2021, Section 1357, as amended by

21 Section 1, Chapter 44, 1st Extraordinary Session,

22 O.S.L. 2023 (68 O.S. Supp. 2025, Section 1357);

22 amending 68 O.S. 2021, Section 2357.22, as last

23 amended by Section 1, Chapter 143, O.S.L. 2024 (68

23 O.S. Supp. 2025, Section 2357.22); repealing 68 O.S.

24 2021, Section 2357.22, as last amended by Section

Req. No. 3559 Page 7
1 153, Chapter 452, O.S.L. 2024 (68 O.S. Supp. 2025,

1 Section 2357.22); amending 68 O.S. 2021, Section

2 2358, as last amended by Section 155, Chapter 452,

2 O.S.L. 2024 (68 O.S. Supp. 2025, Section 2358);

3 repealing 68 O.S. 2021, Section 2358, as last amended

3 by Section 1, Chapter 166, O.S.L. 2024 (68 O.S. Supp.

4 2025, Section 2358); repealing 68 O.S. 2021, Section

4 2358, as last amended by Section 2, Chapter 277,

5 O.S.L. 2024 (68 O.S. Supp. 2025, Section 2358);

5 amending 68 O.S. 2021, Section 2902, as last amended

6 by Section 1, Chapter 411, O.S.L. 2025 (68 O.S. Supp.

6 2025, Section 2902); repealing 68 O.S. 2021, Section

7 2902, as last amended by Section 1, Chapter 204,

7 O.S.L. 2025 (68 O.S. Supp. 2025, Section 2902);

8 amending 70 O.S. 2021, Section 6-194, as last amended

8 by Section 5, Chapter 101, O.S.L. 2025 (70 O.S. Supp.

9 2025, Section 6-194); repealing 70 O.S. 2021, Section

9 6-194, as last amended by Section 1, Chapter 277,

10 O.S.L. 2025 (70 O.S. Supp. 2025, Section 6-194);

10 amendatory 70 O.S. 2021, Section 1210.163, as last

11 amended by Section 3, Chapter 260, O.S.L. 2025 (70

11 O.S. Supp. 2025, Section 1210.163); repealing 70 O.S.

12 2021, Section 1210.163, as last amended by Section 6,

12 Chapter 101, O.S.L. 2025 (70 O.S. Supp. 2025, Section

13 1210.163); amendatory 70 O.S. 2021, Section 2403, as

13 amended by Section 3, Chapter 482, O.S.L. 2025 (70

14 O.S. Supp. 2025, Section 2403); repealing 70 O.S.

14 2021, Section 2403, as amended by Section 6, Chapter

15 277, O.S.L. 2025 (70 O.S. Supp. 2025, Section 2403);

15 amending 74 O.S. 2021, Section 62.3, as amended by

16 Section 1, Chapter 384, O.S.L. 2025 (74 O.S. Supp.

16 2025, Section 62.3); repealing 74 O.S. 2021, Section

17 62.3, as amended by Section 6, Chapter 199, O.S.L.

17 2025 (74 O.S. Supp. 2025, Section 62.3); repealing 74

18 O.S. 2021, Section 85.58A, as amended by Section 4,

18 Chapter 245, O.S.L. 2024 (74 O.S. Supp. 2025, Section

19 85.58A); amending 74 O.S. 2021, Section 902, as last

19 amended by Section 1, Chapter 139, O.S.L. 2024 (74

20 O.S. Supp. 2025, Section 902); repealing 74 O.S.

20 2021, Section 902, as last amended by Section 1,

21 Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2025, Section

21 902); amending 74 O.S. 2021, Section 915, as amended

22 by Section 2, Chapter 280, O.S.L. 2024 (74 O.S. Supp.

22 2025, Section 915); repealing 74 O.S. 2021, Section

23 915, as amended by Section 2, Chapter 139, O.S.L.

23 2024 (74 O.S. Supp. 2025, Section 915); amending 74

24 O.S. 2021, Section 916.3, as amended by Section 3,

Req. No. 3559 Page 8
1 Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2025, Section

1 916.3); repealing 74 O.S. 2021, Section 916.3, as

2 amended by Section 3, Chapter 139, O.S.L. 2024 (74

2 O.S. Supp. 2025, Section 916.3); amending 74 O.S.

3 2021, Section 919.1, as amended by Section 4, Chapter

3 139, O.S.L. 2024 (74 O.S. Supp. 2025, Section 919.1);

4 repealing 74 O.S. 2021, Section 919.1, as amended by

4 Section 4, Chapter 280, O.S.L. 2024 (74 O.S. Supp.

5 2025, Section 919.1); amending 74 O.S. 2021, Section

5 1321, as last amended by Section 29, Chapter 379,

6 O.S.L. 2025 (74 O.S. Supp. 2025, Section 1321);

6 repealing 74 O.S. 2021, Section 1321, as amended by

7 Section 5, Chapter 123, O.S.L. 2024 (74 O.S. Supp.

7 2025, Section 1321); amending 75 O.S. 2021, Section

8 250.3, as last amended by Section 5, Chapter 258,

8 O.S.L. 2025 (75 O.S. Supp. 2025, Section 250.3);

9 repealing 75 O.S. 2021, Section 250.3, as last

9 amended by Section 1, Chapter 420, O.S.L. 2025 (75

10 O.S. Supp. 2025, Section 250.3); amending 75 O.S.

10 2021, Section 303, as amended by Section 7, Chapter

11 258, O.S.L. 2025 (75 O.S. Supp. 2025, Section 303);

11 repealing 75 O.S. 2021, Section 303, as amended by

12 Section 1, Chapter 267, O.S.L. 2025 (75 O.S. Supp.

12 2025, Section 303); amending 75 O.S. 2021, Section

13 308, as last amended by Section 8, Chapter 258,

13 O.S.L. 2025 (75 O.S. Supp. 2025, Section 308);

14 repealing 75 O.S. 2021, Section 308, as last amended

14 by Section 2, Chapter 420, O.S.L. 2025 (75 O.S. Supp.

15 2025, Section 308); amending 85A O.S. 2021, Section

15 2, as amended by Section 1, Chapter 135, O.S.L. 2025

16 (85A O.S. Supp. 2025, Section 2); repealing 85A O.S.

16 2021, Section 2, as amended by Section 1, Chapter 67,

17 O.S.L. 2025 (85A O.S. Supp. 2025, Section 2); and

17 declaring an emergency.

20 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
20

21 SECTION 1. AMENDATORY 3 O.S. 2021, Section 65.1, as

22 amended by Section 1, Chapter 135, O.S.L. 2024 (3 O.S. Supp. 2025,
22

23 Section 65.1), is amended to read as follows:
23

Req. No. 3559 Page 9
1 Section 65.1. As used in the Municipal Airports Act, unless the

2 text otherwise requires:
2

3 1. "Airport" means an area on land or water that is used, or

4 intended to be used, for the landing and taking off of aircraft, and
4

5 includes its buildings and facilities, if any;
5

6 2. "Air navigation facility" means any facility - other than

7 one owned and operated by the United States - used in, available for
7

8 use in, or designed for use in, aid of air navigation, including any
8

9 structures, mechanisms, lights, beacons, markers, communicating
9

10 systems, or other instrumentalities, or devices used or useful as an
10

11 aid, or constituting an advantage or convenience, to the safe taking
11

12 off, navigation, and landing of aircraft, or the safe and efficient
12

13 operation or maintenance of an airport, and any combination of any
13

14 or all of such facilities;
14

15 3. "Airport hazard" means any structure, object of natural

16 growth, or use of land which obstructs the airspace required for the
16

17 flight of aircraft in landing or taking off at an airport or
17

18 vertiport or is otherwise hazardous to such landing or taking off of
18

19 aircraft;
19

20 4. "Helipad" means a small designated area, usually with a

21 prepared surface, on a heliport, airport, landing or takeoff area,
21

22 apron or ramp, or movement area used for takeoff, landing or parking
22

23 of helicopters;
23

Req. No. 3559 Page 10
1 5. "Heliport" means an area of land, water or structure used or

2 intended to be used for the landing and takeoff of helicopters and
2

3 includes its buildings and facilities, if any;
3

4 6. "Municipality" means any county, city, or town, or political

5 subdivision of this state. "Municipal" means pertaining to a
5

6 municipality as herein defined;
6

7 7. "Person" means any individual, firm, partnership,

8 corporation, company, association, joint stock association, or body
8

9 politic; and includes any trustee, receiver, assignee or other
9

10 similar representative thereof;
10

11 8. "Vertiport" means an area of land, water, or structure used

12 or intended to be used for the landing and takeoff of VTOL aircraft;
12

13 and
13

14 9. "VTOL aircraft" means an aircraft which has vertical takeoff

15 and landing capability.
15

16 SECTION 2. REPEALER 3 O.S. 2021, Section 65.1, as

17 amended by Section 1, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
17

18 Section 65.1), is hereby repealed.
18

19 SECTION 3. REPEALER 3 O.S. 2021, Section 65.2, as

20 amended by Section 2, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
20

21 Section 65.2), is hereby repealed.
21

22 SECTION 4. REPEALER 3 O.S. 2021, Section 65.4, as

23 amended by Section 3, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
23

24 Section 65.4), is hereby repealed.
24

Req. No. 3559 Page 11
1 SECTION 5. REPEALER 3 O.S. 2021, Section 65.5, as

2 amended by Section 4, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
2

3 Section 65.5), is hereby repealed.
3

4 SECTION 6. REPEALER 3 O.S. 2021, Section 65.7, as

5 amended by Section 6, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
5

6 Section 65.7), is hereby repealed.
6

7 SECTION 7. REPEALER 3 O.S. 2021, Section 65.8, as

8 amended by Section 7, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
8

9 Section 65.8), is hereby repealed.
9

10 SECTION 8. REPEALER 3 O.S. 2021, Section 65.10, as

11 amended by Section 8, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
11

12 Section 65.10), is hereby repealed.
12

13 SECTION 9. REPEALER 3 O.S. 2021, Section 65.12, as

14 amended by Section 9, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
14

15 Section 65.12), is hereby repealed.
15

16 SECTION 10. REPEALER 3 O.S. 2021, Section 65.15, as

17 amended by Section 10, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
17

18 Section 65.15), is hereby repealed.
18

19 SECTION 11. REPEALER 3 O.S. 2021, Section 65.16, as

20 amended by Section 11, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
20

21 Section 65.16), is hereby repealed.
21

22 SECTION 12. REPEALER 3 O.S. 2021, Section 65.17, as

23 amended by Section 12, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
23

24 Section 65.17), is hereby repealed.
24

Req. No. 3559 Page 12
1 SECTION 13. REPEALER 3 O.S. 2021, Section 82, as last

2 amended by Section 13, Chapter 135, O.S.L. 2024 (3 O.S. Supp. 2025,
2

3 Section 82), is hereby repealed.
3

4 SECTION 14. AMENDATORY 3 O.S. 2021, Section 85, as last

5 amended by Section 1, Chapter 164, O.S.L. 2025 (3 O.S. Supp. 2025,
5

6 Section 85), is amended to read as follows:
6

7 Section 85. A. The Oklahoma Department of Aerospace and

8 Aeronautics and its Executive Director acting under its authority is
8

9 empowered and directed to encourage, foster, and assist in the
9

10 development of aerospace and aeronautics in this state and to
10

11 encourage the establishment of airports, vertiports, and air
11

12 navigation facilities. It shall cooperate with and assist the
12

13 federal government, the municipalities of this state, and other
13

14 persons in the development of aerospace and aeronautics, and shall
14

15 seek to coordinate the aeronautical activities of these bodies and
15

16 persons. Municipalities are authorized to cooperate with the
16

17 Department in the development of aeronautics and aeronautical
17

18 facilities in this state.
18

19 B. The Department may organize and administer an aerospace and

20 aviation education program in cooperation with the schools,
20

21 colleges, and for the general public, and may prepare and conduct
21

22 voluntary flight clinics for airmen and issue such bulletins and
22

23 publications as may be required. This program shall be known and
23

24 may be cited as the "AeroSPACE Program" or "Aero Student Pathways
24

Req. No. 3559 Page 13
1 for Aerospace Careers and Education". This program shall be a
1

2 partnership with primary, secondary, career technology, and higher
2

3 education providers to respond to the workforce needs of the
3

4 aviation and aerospace industry by promoting and organizing quality
4

5 curriculum, enhanced classroom instruction, and research-based
5

6 educational programs. The AeroSPACE Program shall collaborate with
6

7 industry and act as the facilitator for the collection and sharing
7

8 of information, development and implementation of activities, and
8

9 the dissemination of resources concerning aerospace education with
9

10 the primary goal being to establish a common statewide strategy for
10

11 implementing aerospace educational curriculum initiatives to better
11

12 prepare students for an aviation and aerospace career. The Oklahoma
12

13 Aeronautics Commission may employ established program processes or
13

14 contract with other qualified entities to operate the AeroSPACE
14

15 Program. The Oklahoma Aeronautics Commission may accept funding
15

16 that includes, but is not limited to, donations, contractual
16

17 arrangements, in-kind services, federal or state appropriations, and
17

18 grants.
18

19 C. The Department shall assist in all aeronautical matters

20 related to emergency management actions in conformance with federal
20

21 directions and with the Emergency Operations Plan of the state.
21

22 D. The Department may establish air markers throughout the

23 state.
23

Req. No. 3559 Page 14
1 E. The Department may purchase and install roadside signs

2 directing highway traffic to airports, subject to approval of the
2

3 State Transportation Commission.
3

4 F. The Department shall:

5 1. Draft and recommend necessary legislation to advance the

6 interests of the state in aerospace and aeronautics;
6

7 2. Represent the state in aeronautical matters before federal

8 agencies and other state agencies; and
8

9 3. Participate as party plaintiff or defendant or as intervener

10 on behalf of the state or any municipality or citizen thereof in any
10

11 proceeding which involves the interest of the state in aerospace or
11

12 aeronautics.
12

13 G. 1. The Department shall develop and adopt a five-year

14 Airport Construction Program on an annual basis which lists federal
14

15 and state funding that the Department has available for the
15

16 development of airport infrastructure. In addition, the Department
16

17 shall adopt a statewide airport system plan on a regular basis which
17

18 details the twenty-year planning horizon for publicly owned, public-
18

19 use airports and sets the service level, role, and functional
19

20 classification of airports within the Oklahoma Airport System. The
20

21 system plan will be made available to the public and shall serve as
21

22 the Department's official document which guides the programming of
22

23 public funds for airport infrastructure. An airport must be
23

24 included in the system plan to be eligible for funding.
24

Req. No. 3559 Page 15
1 2. The development of the five-year Airport Construction

2 Program shall begin with supporting and achieving the goals laid out
2

3 in the statewide airport system plan and will be guided by the air
3

4 transportation needs and priorities of airports within the system.
4

5 The basic goals within the system plan include, but are not limited
5

6 to, airport safety, security, infrastructure preservation and
6

7 sustainment, economic enhancement, capacity, meeting Federal
7

8 Aviation Administration (FAA) or Department standards, and pro-
8

9 growth development.
9

10 3. The Department shall involve public input during the

11 development of the five-year Airport Construction Program each year
11

12 and coordinate and receive input from the airports within the
12

13 statewide airport system plan.
13

14 4. The Department shall set realistic project delivery

15 schedules across the five-year window of the Airport Construction
15

16 Program to maintain the integrity of the Program and to minimize air
16

17 transportation disruptions.
17

18 H. 1. The Department may, insofar as is reasonably possible,

19 make available its engineering and other technical services to any
19

20 municipality or person desiring them in connection with the
20

21 planning, acquisition, construction, improvement, maintenance, or
21

22 operation of airports, vertiports, or air navigation facilities.
22

23 2. The Department may render financial assistance by grant or

24 loan or both to any municipality or municipalities acting jointly in
24

Req. No. 3559 Page 16
1 the planning, acquisition, construction, improvement, maintenance,
1

2 or operation of an airport, vertiport, or air navigation facility
2

3 owned or controlled, or to be owned or controlled, by such
3

4 municipality or municipalities, out of appropriations or other
4

5 monies made available by the Legislature for such purposes. Such
5

6 financial assistance may be furnished in connection with federal or
6

7 other financial aid for the same purposes. A project must have been
7

8 included in the five-year Airport Construction Program and be at an
8

9 airport that is included in the most current version of the
9

10 statewide airport system plan to receive financial assistance.
10

11 3. The Department shall be designated as the agent of this

12 state or any political subdivision of this state for the purpose of
12

13 applying for, receiving, administering, and disbursing federal funds
13

14 and other public monies for the benefit of general aviation
14

15 airports, except reliever airports, as may be available under
15

16 applicable federal law or other laws. If requested by a political
16

17 subdivision, the Department may act as its or their agent in
17

18 contracting for and supervising such planning, acquisition,
18

19 construction, improvement, maintenance, or operation; and all
19

20 political subdivisions are authorized to designate the Department as
20

21 their agent for the foregoing purposes. The Department, as
21

22 principal on behalf of the state, may enter into any contracts with
22

23 the United States or with any person, which may be required in
23

24 connection with a grant or loan of federal monies for municipal
24

Req. No. 3559 Page 17
1 airport, vertiport, or air navigation facility purposes. All
1

2 federal monies accepted under this section shall be accepted and
2

3 transferred or expended by the Department upon such terms and
3

4 conditions as are prescribed by the United States. All monies
4

5 received by the Department pursuant to this section shall be
5

6 deposited in the Oklahoma Department of Aerospace and Aeronautics
6

7 Revolving Fund in the State Treasury and shall be paid out by the
7

8 Department in accordance with the terms and conditions of any
8

9 agreement entered into under the provisions of this section.
9

10 I. 1. The Department is authorized on behalf of and in the

11 name of the state, out of appropriations and other monies made
11

12 available for such purposes, to plan, zone, establish, construct,
12

13 enlarge, improve, maintain, equip, operate, regulate, protect, and
13

14 police airports, vertiports, and air navigation facilities, either
14

15 within or without the state, including the construction,
15

16 installation, equipping, maintenance, and operation at such airports
16

17 of buildings and other facilities for the servicing of aircraft or
17

18 for the comfort and accommodation of air travelers. However, the
18

19 regulatory authority shall not extend to any airman employed by, nor
19

20 to any aeronautics facility or aircraft under the exclusive
20

21 possession, operation, or control of, a person holding a certificate
21

22 of public convenience and necessity issued by any agency of the
22

23 United States to operate as a common carrier by air of persons
23

24 and/or property in interstate commerce. For such purposes the
24

Req. No. 3559 Page 18
1 Department may, by purchase, gift, devise, or lease, acquire
1

2 property, real or personal, or any interest therein including
2

3 easements in aeronautical hazards or land outside the boundaries of
3

4 an airport or airport site, as are necessary to permit safe and
4

5 efficient operation of the state airports or to permit the removal,
5

6 elimination, obstruction-marking or obstruction-lighting of airport
6

7 hazards, or to prevent the establishment of airport hazards. In
7

8 like manner, the Department may acquire existing airports,
8

9 vertiports, and air navigation facilities. However, the Department
9

10 shall not acquire or take over any airport, vertiport, or air
10

11 navigation facility owned or controlled by a municipality of this or
11

12 any other state without the consent of such municipality. The
12

13 Department may, by sale, lease, or otherwise, dispose of any such
13

14 property, airport, vertiport, air navigation facility, or portion
14

15 thereof or interest therein. The disposal, by sale, lease, or
15

16 otherwise, shall be in accordance with the laws of this state
16

17 governing the disposition of other property of the state, except
17

18 that, in the case of disposals to any municipality or state
18

19 government or the United States for aeronautical purposes incident
19

20 thereto, the sale, lease, or other disposal may be effected in such
20

21 manner and upon such terms as the Department may deem in the best
21

22 interest of the state.
22

23 2. All airports owned by the state shall be within the primary

24 jurisdiction of the Oklahoma Department of Aerospace and Aeronautics
24

Req. No. 3559 Page 19
1 for purposes of design, development, and operation; provided, that
1

2 airports owned and operated by the Oklahoma Space Industry
2

3 Development Authority shall be exempt from such provisions, and
3

4 during the time of a national emergency, the Air National Guard
4

5 shall be exempt from such provisions, and provided further, that any
5

6 airport owned by the state may be leased by the Department to a
6

7 public or private agency, as it may deem fit.
7

8 3. Nothing contained in the Oklahoma Department of Aerospace

9 and Aeronautics Act shall be construed to limit any right, power, or
9

10 authority of the state or a municipality to regulate airport hazards
10

11 by zoning.
11

12 4. The Department may exercise any powers granted by this

13 section jointly with any municipalities or with the United States.
13

14 5. a. In operating an airport, vertiport, or air navigation

15 facility owned or controlled by the state, the

16 Department may enter into contracts, leases, and other

17 arrangements for a term not exceeding twenty-five (25)

18 years with any persons granting the privilege of using

19 or improving such airport, vertiport, or air

20 navigation facility or any portion or facility thereof

21 or space therein for commercial purposes; conferring

22 the privilege of supplying goods, commodities, things,

23 services, or facilities at such airport, vertiport, or

24 air navigation facility; or making available services

Req. No. 3559 Page 20
1 to be furnished by the Department or its agents at

2 such airport or air navigation facility.

3 In each such case, the Department may establish the

4 terms and conditions and fix the charges, rentals, or

5 fees for the privileges or services, which shall be

6 reasonable and uniform for the same class of

7 privileges or services and shall be established with

8 due regard to the property and improvements used and

9 the expenses of operation to the state; provided, that

10 in no case shall the public be deprived of its

11 rightful, equal, and uniform use of the airport,

12 vertiport, air navigation facility or portion or

13 facility thereof.

14 b. The Department may by contract, lease, or other

15 arrangement, upon a consideration fixed by it, grant

16 to any qualified person for a term not to exceed

17 twenty-five (25) years the privilege of operating, as

18 an agent of the state or otherwise, any airport,

19 vertiport, or air navigation facility owned or

20 controlled by the state; provided, that no such person

21 shall be granted any authority to operate the airport,

22 vertiport, or air navigation facility other than as a

23 public airport, vertiport, or air navigation facility

24 or to enter into any contracts, leases, or other

Req. No. 3559 Page 21
1 arrangements in connection with the operation of the

2 airport, vertiport, or air navigation facility which

3 the Department might not have undertaken under

4 subparagraph a of this paragraph.

5 c. To enforce the payment of any charges for repairs to,

6 or improvements, storage, or care of, any personal

7 property made or furnished by the Department or its

8 agents in connection with the operation of an airport,

9 vertiport, or air navigation facility owned or

10 operated by the state, the state shall have liens on

11 such property, which shall be enforceable by the

12 Department as provided by law.

13 6. In accepting federal monies under this section, the

14 Department shall have the same authority to enter into contracts on
14

15 behalf of the state as is granted to the Department under paragraph
15

16 3 of subsection H of this section with respect to federal monies
16

17 accepted on behalf of municipalities. All monies received by the
17

18 Department pursuant to this section shall be deposited in the
18

19 Oklahoma Department of Aerospace and Aeronautics Revolving Fund in
19

20 the State Treasury and shall be paid out of the Department Fund in
20

21 accordance with the terms and conditions of any agreement entered
21

22 into under the provisions of this section.
22

23 7. The Department shall grant no exclusive right for the use of

24 any airport, vertiport, or air navigation facility under its
24

Req. No. 3559 Page 22
1 jurisdiction. This shall not be construed to prevent the making of
1

2 contracts, leases, and other arrangements pursuant to paragraph 5 of
2

3 this subsection.
3

4 J. The Department may enter into any contracts necessary to for

5 the execution of the powers granted it by the Oklahoma Department of
5

6 Aerospace and Aeronautics Act. All contracts made by the
6

7 Department, either as the agent of the state or as the agent of any
7

8 municipality, shall be made pursuant to the laws of the state
8

9 governing the making of like contracts. When the planning,
9

10 acquisition, construction, improvement, maintenance, or operation of
10

11 any airport, vertiport, or air navigation facility is financed
11

12 wholly or partially with federal monies, the Department as agent of
12

13 the state or of any municipality may let contracts in the manner
13

14 prescribed by the federal authorities acting under the laws of the
14

15 United States and any rules or regulations made thereunder.
15

16 K. 1. The Oklahoma Aerospace and Aeronautics Commission, the

17 Executive Director, or any officer or employee of the Department
17

18 designated by it shall have the power to hold investigations,
18

19 inquiries, and hearings concerning matters covered by the provisions
19

20 of the Oklahoma Department of Aerospace and Aeronautics Act and the
20

21 rules, regulations, and orders of the Department. Hearings shall be
21

22 open to the public and shall be held upon such call or notice as the
22

23 Commission shall deem advisable. Each member of the Commission, the
23

24 Director, and every officer or employee of the Department designated
24

Req. No. 3559 Page 23
1 by it to hold any inquiry, investigation, or hearing shall have the
1

2 power to administer oaths and affirmations, certify to all official
2

3 acts, issue subpoenas, and order the attendance and testimony of
3

4 witnesses and the production of papers, books, and documents. In
4

5 case of the failure of any person to comply with any subpoena or
5

6 order issued under the authority of this subsection, or on the
6

7 refusal of any witness to testify to any matters regarding which he
7

8 or she may be lawfully interrogated, it shall be the duty of the
8

9 district court of any county or of the judge thereof, on application
9

10 of the Department or its authorized representative, to compel
10

11 obedience by proceedings for contempt, as in the case of
11

12 disobedience of the requirements of a subpoena issued from such
12

13 court or a refusal to testify therein.
13

14 2. In order to facilitate the making of investigations by the

15 Department in the interest of public safety and promotion of
15

16 aeronautics the public interest requires, and it is therefore
16

17 provided, that the reports of investigations or hearings, or any
17

18 part thereof, shall not be admitted in evidence or used for any
18

19 purpose in any suit, action, or proceeding growing out of any matter
19

20 referred to in the investigation, hearing, or report thereof, except
20

21 in case of any suit, action, or proceeding, civil or criminal,
21

22 instituted by or in behalf of the Department or in the name of the
22

23 state under the provisions of the Oklahoma Department of Aerospace
23

24 and Aeronautics Act or other laws of the state relating to
24

Req. No. 3559 Page 24
1 aeronautics; nor shall any member of the Commission, or the
1

2 Executive Director, or any officer or employee of the Department be
2

3 required to testify to any facts ascertained in, or information
3

4 gained by reason of, such person's official capacity, or be required
4

5 to testify as an expert witness in any suit, action, or proceeding
5

6 involving any aircraft. Subject to the foregoing provisions, the
6

7 Department may in its discretion make available to appropriate
7

8 federal, state and municipal agencies information and material
8

9 developed in the course of its investigations and hearings.
9

10 L. 1. The Department is authorized to confer with or to hold

11 joint hearings with any agency of the United States in connection
11

12 with any matter arising under the Oklahoma Department of Aerospace
12

13 and Aeronautics Act or relating to the sound development of
13

14 aerospace and aeronautics.
14

15 2. The Department is authorized to avail itself of the

16 cooperation, services, records, and facilities of the agencies of
16

17 the United States as fully as may be practicable in the
17

18 administration and enforcement of the Oklahoma Department of
18

19 Aerospace and Aeronautics Act. The Department shall furnish to the
19

20 agencies of the United States its cooperation, services, records,
20

21 and facilities, insofar as may be practicable.
21

22 3. The Department shall report to the appropriate agency of the

23 United States all accidents in aeronautics in this state of which it
23

24 is informed and shall, insofar as is practicable, preserve, protect,
24

Req. No. 3559 Page 25
1 and prevent the removal of the component parts of any aircraft
1

2 involved in an accident being investigated by it until the federal
2

3 agency institutes an investigation.
3

4 M. The Department may organize and administer an aerospace

5 education program in cooperation with universities, colleges and
5

6 schools for the general public. The Department may also plan and
6

7 act jointly in a cooperative aviation research or high technology
7

8 program. As part of these programs, the Department may issue
8

9 aviation communication films and publications.
9

10 N. The Department shall administer an airport inspection

11 program for all public-use airports within this state. The
11

12 inspection program shall occur on a three-year cycle and shall be
12

13 administered by the Oklahoma Department of Aerospace and
13

14 Aeronautics. Airport owners, including individuals and
14

15 municipalities, shall provide access to airport facilities for
15

16 conducting the inspections. The Department shall provide a written
16

17 report to each public-use airport detailing the findings of such
17

18 inspections.
18

19 SECTION 15. REPEALER 3 O.S. 2021, Section 85, as last

20 amended by Section 14, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
20

21 Section 85), is hereby repealed.
21

22 SECTION 16. REPEALER 3 O.S. 2021, Section 85, as last

23 amended by Section 14, Chapter 135, O.S.L. 2024 (3 O.S. Supp. 2025,
23

24 Section 85), is hereby repealed.
24

Req. No. 3559 Page 26
1 SECTION 17. REPEALER 3 O.S. 2021, Section 421, as last

2 amended by Section 15, Chapter 18, O.S.L. 2024 (3 O.S. Supp. 2025,
2

3 Section 421), is hereby repealed.
3

4 SECTION 18. AMENDATORY 10 O.S. 2021, Section 1116.2, as

5 amended by Section 7, Chapter 347, O.S.L. 2024 (10 O.S. Supp. 2025,
5

6 Section 1116.2), is amended to read as follows:
6

7 Section 1116.2. A. There is hereby established a

8 postadjudication review board in each judicial district in the
8

9 state. Members and alternate members of the postadjudication review
9

10 boards shall be residents of or employed within the judicial
10

11 district in which the board serves and shall be appointed by the
11

12 Director of the Oklahoma Commission on Children and Youth after
12

13 consultation with judges in the judicial district having juvenile
13

14 docket responsibility. In the event of a conflict of interest or
14

15 for any reason when circumstances dictate, the Director may transfer
15

16 the appointment decision to the Commission whose decision shall be
16

17 final. An aggrieved candidate may appeal a decision of the Director
17

18 denying appointment within five (5) days to the Commission, whose
18

19 decision shall be final. The Commission may establish additional
19

20 postadjudication review boards as needed for each county within a
20

21 judicial district.
21

22 B. A postadjudication review board for each judicial district

23 shall consist of at least five (5) members. Alternate review board
23

24 members may be appointed to serve in the absence of a regularly
24

Req. No. 3559 Page 27
1 appointed board member members. Alternate board members shall be
1

2 appointed in the same manner as regularly appointed board members.
2

3 C. Board members shall be appointed for a term of five (5)

4 years. Members shall serve after the expiration of their terms
4

5 until their respective successors shall have been appointed.
5

6 Vacancies shall be filled for the duration of unexpired terms. The
6

7 review board members shall be appointed as follows:
7

8 1. One member shall be a person who has training or experience

9 in issues concerning child welfare, or a person who has demonstrated
9

10 an interest in children through voluntary community service or
10

11 professional activities;
11

12 2. Whenever possible, at least one member of the board shall be

13 an individual who has served as a foster parent, provided that no
13

14 person on the review board shall participate as a board member in
14

15 any review hearing in which the person is a party; and
15

16 3. No more than one person employed by any child welfare agency

17 or juvenile court may be appointed to a board at the same time,
17

18 provided such person shall not participate in any review hearing in
18

19 which the person is professionally involved.
19

20 D. Each review board shall annually elect a chair and shall

21 provide the Commission with the contact information of the chair. A
21

22 list of the members of each local board and its officers shall be
22

23 filed with the Presiding Judge of the judicial district and each
23

24 judge within the district having juvenile docket responsibility.
24

Req. No. 3559 Page 28
1 E. There shall be a rebuttable presumption that a person

2 participating in a judicial proceeding as a postadjudication review
2

3 board member, a member of the State Postadjudication Review Advisory
3

4 Board created in Section 1116.6 of this title, or postadjudication
4

5 review board staff is acting in good faith. When acting in good
5

6 faith, a participant shall be immune from any civil liability that
6

7 might otherwise be incurred or imposed. Each review board shall
7

8 meet as often as is necessary at a place it designates to carry out
8

9 the duties of the board established by Section 1116.3 of this title.
9

10 The review board shall meet at least twice annually. Each review
10

11 board shall be subject to the provisions of the Oklahoma Open
11

12 Meeting Act, except that the actual case reviews shall be held in
12

13 executive session. Upon request, members or prospective members of
13

14 other review boards, students or researchers may observe, but not
14

15 participate in, board meetings subject to conditions imposed by the
15

16 board. Further, members and staff of the State Postadjudication
16

17 Review Advisory Board who are exercising their oversight
17

18 responsibilities pursuant to state law may observe, but not
18

19 participate in, board meetings. All parties shall maintain
19

20 confidentiality, and the names of the children in placement shall
20

21 not be published. Temporary ad hoc review boards may be created in
21

22 counties in which there is no active review board. The Director of
22

23 the Oklahoma Commission on Children and Youth may appoint active or
23

24 alternate members of existing review boards to serve as members of
24

Req. No. 3559 Page 29
1 local boards that are unable to meet quorum requirements and to
1

2 temporarily constitute members of a new board where no current board
2

3 exists. A member appointed to temporary service shall be fully
3

4 qualified as provided by law, and such service shall terminate when
4

5 the basis for the appointment is remedied or upon the order of the
5

6 Director.
6

7 F. As a condition of service, members and alternates of a

8 postadjudication review board shall attend the next available
8

9 orientation program after appointment to the board. Failure to
9

10 attend an orientation program, at the discretion of the Commission,
10

11 may result in the removal of the board member. Members shall
11

12 receive additional training as required by the Commission.
12

13 G. Members of postadjudication review boards shall serve

14 without compensation, but shall be reimbursed for travel and
14

15 training expenses from monies appropriated by the Legislature for
15

16 such purposes, as provided by the State Travel Reimbursement Act.
16

17 The Commission shall provide members of postadjudication review
17

18 boards with necessary operating supplies or members shall be
18

19 reimbursed for these expenses.
19

20 H. The Commission on Children and Youth shall be responsible

21 for developing procedures for the removal of a member from a
21

22 postadjudication review board. The grounds for removal shall
22

23 include but not be limited to:
23

Req. No. 3559 Page 30
1 1. Failure to attend board meetings as required by the

2 Commission;
2

3 2. Engaging in illegal conduct involving moral turpitude;

4 3. Engaging in conduct involving dishonesty, fraud, deceit, or

5 misrepresentation; or
5

6 4. Wrongful disclosure of information as provided by Section

7 1116.4 of this title.
7

8 I. Necessary staff assistance required by the postadjudication

9 review boards may be provided by the bailiff or bailiffs, or other
9

10 person designated by the court, of the judges with juvenile docket
10

11 responsibility in the judicial district. Upon the request of the
11

12 presiding judge, the Chief Justice of the Supreme Court may
12

13 authorize additional staff to be paid from local court funds to
13

14 assist the review board.
14

15 The Administrative Director of the Courts may include such

16 additional funding requests in the annual budget for the courts as
16

17 are necessary to provide staff and administrative support for the
17

18 review boards.
18

19 SECTION 19. REPEALER 10 O.S. 2021, Section 1116.2, as

20 amended by Section 1, Chapter 237, O.S.L. 2024 (10 O.S. Supp. 2025,
20

21 Section 1116.2), is hereby repealed.
21

22 SECTION 20. AMENDATORY 10 O.S. 2021, Section 1116.6, as

23 amended by Section 9, Chapter 347, O.S.L. 2024 (10 O.S. Supp. 2025,
23

24 Section 1116.6), is amended to read as follows:
24

Req. No. 3559 Page 31
1 Section 1116.6. A. There is hereby created a State

2 Postadjudication Review Advisory Board which shall meet at least
2

3 twice each calendar year. The Advisory Board shall have the duty of
3

4 overseeing implementation of the postadjudication review program in
4

5 coordination with the Oklahoma Commission on Children and Youth.
5

6 B. The Advisory Board shall consist of twenty-one (21) members

7 appointed by the Governor as follows:
7

8 1. Eight of the members shall be members of the various review

9 boards throughout the state;
9

10 2. Five of the members shall be judges of the district court;

11 3. Five of the members shall represent the general public and

12 may be foster parents;
12

13 4. One of the members shall be a foster parent representing

14 foster parents who have a current contract with the Department of
14

15 Human Services to provide foster care services;
15

16 5. One of the members shall be a foster parent representing

17 child-placing agencies which have current contracts with the
17

18 Department to provide foster care services; and
18

19 6. One of the members shall be a foster parent nominated by any

20 local or statewide foster parent association.
20

21 The members shall serve at the pleasure of the Governor. The

22 administrative heads of the divisions which have foster care
22

23 responsibilities within the Department of Human Services and the
23

Req. No. 3559 Page 32
1 Office of Juvenile Affairs or their designees shall serve as ex
1

2 officio members of the Board.
2

3 C. The Director of the Oklahoma Commission on Children and

4 Youth shall make staff support available to the Advisory Board.
4

5 The Advisory Board shall have the duty to:

6 1. Assist in the training of the members of the review boards;

7 2. Serve, in coordination with the Commission, as a

8 clearinghouse for information concerning the review boards as they
8

9 relate to the foster care system;
9

10 3. Make recommendations to the courts, the Commission, the

11 Governor, the Legislature, the Department of Human Services, the
11

12 Office of Juvenile Affairs, and other state agencies providing
12

13 services to children regarding proposed statutory revisions and
13

14 amendments to court rules and procedures, and review and make
14

15 recommendations on permanency planning, foster care and child
15

16 welfare service delivery policies, guidelines, and procedures;
16

17 4. Work with both public and private foster care and adoption

18 agencies to inform the public of the need for temporary and
18

19 permanent homes and other services for deprived children; and
19

20 5. Review and make recommendations specifically related to

21 foster care and permanency planning and on any other aspect of the
21

22 child welfare system it deems necessary.
22

Req. No. 3559 Page 33
1 D. The Commission, with the assistance of the Advisory Board,

2 shall be responsible for developing and providing the necessary
2

3 training for members of the postadjudication review boards.
3

4 E. The Advisory Board shall submit a report of the activities,

5 findings and recommendations of the review boards to the Commission
5

6 on or before May 1 of each year. The report shall include, but not
6

7 be limited to, the following:
7

8 1. The location of each review board;

9 2. The names of the members of each board;

10 3. The number of cases reviewed by each board; and

11 4. The recommendation categories made by each board.

12 F. The Commission shall incorporate, as appropriate, the

13 activities and recommendations of the review boards in the annual
13

14 report required by Section 601.5 of this title.
14

15 SECTION 21. REPEALER 10 O.S. 2021, Section 1116.6, as

16 amended by Section 2, Chapter 237, O.S.L. 2024 (10 O.S. Supp. 2025,
16

17 Section 1116.6), is hereby repealed.
17

18 SECTION 22. AMENDATORY 10A O.S. 2021, Section 1-1-105,

19 as amended by Section 1, Chapter 375, O.S.L. 2025 (10A O.S. Supp.
19

20 2025, Section 1-1-105), is amended to read as follows:
20

21 Section 1-1-105. When used in the Oklahoma Children's Code,

22 unless the context otherwise requires:
22

23 1. "Abandonment" means:

Req. No. 3559 Page 34
1 a. the willful intent by words, actions, or omissions not

2 to return for a child,

3 b. the failure to maintain a significant parental

4 relationship with a child through visitation or

5 communication in which incidental or token visits or

6 communication are not considered significant, or

7 c. the failure to respond to notice of deprived

8 proceedings;

9 2. "Abuse" means harm or threatened harm to the health, safety,

10 or welfare of a child by a person responsible for the child's
10

11 health, safety, or welfare, including, but not limited to,
11

12 nonaccidental physical or mental injury, sexual abuse, or sexual
12

13 exploitation. Provided, however, that nothing contained in the
13

14 Oklahoma Children's Code shall prohibit any parent from using
14

15 ordinary force as a means of discipline including, but not limited
15

16 to, spanking, switching, or paddling.
16

17 a. "Harm or threatened harm to the health, safety, or

18 welfare of a child" means any real or threatened

19 physical, mental, or emotional injury or damage to the

20 body or mind that is not accidental including, but not

21 limited to, sexual abuse, sexual exploitation,

22 neglect, or dependency.

23 b. "Sexual abuse" includes but is not limited to rape,

24 incest, and lewd or indecent acts or proposals made to

Req. No. 3559 Page 35
1 a child, as defined by law, by a person responsible

2 for the health, safety, or welfare of the child.

3 c. "Sexual exploitation" includes but is not limited to

4 allowing, permitting, encouraging, or forcing a child

5 to engage in prostitution, as defined by law, by any

6 person eighteen (18) years of age or older or by a

7 person responsible for the health, safety, or welfare

8 of a child, or allowing, permitting, encouraging, or

9 engaging in the lewd, obscene, or pornographic, as

10 defined by law, photographing, filming, or depicting

11 of a child in those acts by a person responsible for

12 the health, safety, and welfare of the child;

13 3. "Adjudication" means a finding by the court that the

14 allegations in a petition alleging that a child is deprived are
14

15 supported by a preponderance of the evidence;
15

16 4. "Adjudicatory hearing" means a hearing by the court as

17 provided by Section 1-4-601 of this title;
17

18 5. "Age-appropriate or developmentally appropriate" means:

19 a. activities or items that are generally accepted as

20 suitable for children of the same age or level of

21 maturity or that are determined to be developmentally

22 appropriate for a child, based on the development of

23 cognitive, emotional, physical, and behavioral

Req. No. 3559 Page 36
1 capacities that are typical for an age or age group,

2 and

3 b. in the case of a specific child, activities or items

4 that are suitable for that child based on the

5 developmental stages attained by the child with

6 respect to the cognitive, emotional, physical, and

7 behavioral capacities of the specific child.

8 In the event that any age-related activities have implications

9 relative to the academic curriculum of a child, nothing in this
9

10 paragraph shall be construed to authorize an officer or employee of
10

11 the federal government to mandate, direct, or control a state or
11

12 local educational agency, or the specific instructional content,
12

13 academic achievement standards and assessments, curriculum, or
13

14 program of instruction of a school;
14

15 6. "Assessment" means a comprehensive review of child safety

16 and evaluation of family functioning and protective capacities that
16

17 is conducted in response to a child abuse or neglect referral that
17

18 does not allege a serious and immediate safety threat to a child;
18

19 7. "Behavioral health" means mental health, substance abuse, or

20 co-occurring mental health and substance abuse diagnoses, and the
20

21 continuum of mental health, substance abuse, or co-occurring mental
21

22 health and substance abuse treatment;
22

23 8. "Child" means any unmarried person under eighteen (18) years

24 of age;
24

Req. No. 3559 Page 37
1 9. "Child advocacy center" means a center and the

2 multidisciplinary child abuse team of which it is a member that is
2

3 accredited by the National Children's Alliance or that is completing
3

4 a sixth year of reaccreditation. Child advocacy centers shall be
4

5 classified, based on the child population of a district attorney's
5

6 district, as follows:
6

7 a. nonurban centers in districts with child populations

8 that are less than sixty thousand (60,000), and

9 b. mid-level nonurban centers in districts with child

10 populations equal to or greater than sixty thousand

11 (60,000), but not including Oklahoma and Tulsa

12 Counties;

13 10. "Child with a disability" means any child who has a

14 physical or mental impairment which substantially limits one or more
14

15 of the major life activities of the child, or who is regarded as
15

16 having such an impairment by a competent medical professional;
16

17 11. "Child-placing agency" means an agency that arranges for or

18 places a child in a foster family home, family-style living program,
18

19 group home, adoptive home, or a successful adulthood program;
19

20 12. "Children's emergency resource center" means a community-

21 based program that may provide emergency care and a safe and
21

22 structured homelike environment or a host home for children
22

23 providing food, clothing, shelter and hygiene products to each child
23

24 served; after-school tutoring; counseling services; life-skills
24

Req. No. 3559 Page 38
1 training; transition services; assessments; family reunification;
1

2 respite care; transportation to or from school, doctors'
2

3 appointments, visitations and other social, school, court or other
3

4 activities when necessary; and a stable environment for children in
4

5 crisis who are in custody of the Department of Human Services if
5

6 permitted under the Department's policies and regulations, or who
6

7 have been voluntarily placed by a parent or custodian during a
7

8 temporary crisis;
8

9 13. "Community-based services" or "community-based programs"

10 means services or programs which maintain community participation or
10

11 supervision in their planning, operation, and evaluation.
11

12 Community-based services and programs may include, but are not
12

13 limited to, emergency shelter, crisis intervention, group work, case
13

14 supervision, job placement, recruitment and training of volunteers,
14

15 consultation, medical, educational, home-based services, vocational,
15

16 social, preventive and psychological guidance, training, counseling,
16

17 early intervention and diversionary substance abuse treatment,
17

18 sexual abuse treatment, transitional living, independent living, and
18

19 other related services and programs;
19

20 14. "Concurrent permanency planning" means, when indicated, the

21 implementation of two plans for a child entering foster care. One
21

22 plan focuses on reuniting the parent and child; the other seeks to
22

23 find a permanent out-of-home placement for the child with both plans
23

24 being pursued simultaneously;
24

Req. No. 3559 Page 39
1 15. "Court-appointed special advocate" or "CASA" means a

2 responsible adult volunteer who has been trained and is supervised
2

3 by a court-appointed special advocate program recognized by the
3

4 court, and when appointed by the court, serves as an officer of the
4

5 court in the capacity as a guardian ad litem;
5

6 16. "Court-appointed special advocate program" means an

7 organized program, administered by either an independent, not-for-
7

8 profit corporation, a dependent project of an independent, not-for-
8

9 profit corporation or a unit of local government, which recruits,
9

10 screens, trains, assigns, supervises and supports volunteers to be
10

11 available for appointment by the court as guardians ad litem;
11

12 17. "Custodian" means an individual other than a parent, legal

13 guardian or Indian custodian, to whom legal custody of the child has
13

14 been awarded by the court. As used in this title, the term
14

15 custodian shall not mean the Department of Human Services;
15

16 18. "Day treatment" means a nonresidential program which

17 provides intensive services to a child who resides in the child's
17

18 own home, the home of a relative, a group home, a foster home, or a
18

19 residential child care facility. Day treatment programs include,
19

20 but are not limited to, educational services;
20

21 19. "Department" means the Department of Human Services;

22 20. "Dependency" means a child who is homeless or without

23 proper care or guardianship through no fault of his or her parent,
23

24 legal guardian, or custodian;
24

Req. No. 3559 Page 40
1 21. "Deprived child" means a child:

2 a. who is for any reason destitute, homeless, or

3 abandoned,

4 b. who does not have the proper parental care or

5 guardianship,

6 c. who has been abused or neglected or is dependent,

7 d. whose home is an unfit place for the child by reason

8 of depravity on the part of the parent or legal

9 guardian of the child, or other person responsible for

10 the health or welfare of the child,

11 e. who is a child in need of special care and treatment

12 because of the child's physical or mental condition,

13 and the child's parents, legal guardian, or other

14 custodian is unable or willfully fails to provide such

15 special care and treatment. As used in this

16 paragraph, a child in need of special care and

17 treatment includes, but is not limited to, a child who

18 at birth tests positive for alcohol or a controlled

19 dangerous substance and who, pursuant to a drug or

20 alcohol screen of the child and an assessment of the

21 parent, is determined to be at risk of harm or

22 threatened harm to the health, safety, or welfare of a

23 child,

Req. No. 3559 Page 41
1 f. who is a child with a disability deprived of the

2 nutrition necessary to sustain life or of the medical

3 treatment necessary to remedy or relieve a life-

4 threatening medical condition in order to cause or

5 allow the death of the child if such nutrition or

6 medical treatment is generally provided to similarly

7 situated children without a disability or children

8 with disabilities; provided that no medical treatment

9 shall be necessary if, in the reasonable medical

10 judgment of the attending physician, such treatment

11 would be futile in saving the life of the child,

12 g. who, due to improper parental care and guardianship,

13 is absent from school as specified in Section 10-106

14 of Title 70 of the Oklahoma Statutes, if the child is

15 subject to compulsory school attendance,

16 h. whose parent, legal guardian or custodian for good

17 cause desires to be relieved of custody,

18 i. who has been born to a parent whose parental rights to

19 another child have been involuntarily terminated by

20 the court and the conditions which led to the making

21 of the finding, which resulted in the termination of

22 the parental rights of the parent to the other child,

23 have not been corrected, or

Req. No. 3559 Page 42
1 j. whose parent, legal guardian, or custodian has

2 subjected another child to abuse or neglect or has

3 allowed another child to be subjected to abuse or

4 neglect and is currently a respondent in a deprived

5 proceeding.

6 Nothing in the Oklahoma Children's Code shall be construed to

7 mean a child is deprived for the sole reason the parent, legal
7

8 guardian, or person having custody or control of a child, in good
8

9 faith, selects and depends upon spiritual means alone through
9

10 prayer, in accordance with the tenets and practice of a recognized
10

11 church or religious denomination, for the treatment or cure of
11

12 disease or remedial care of such child.
12

13 Evidence of material, educational or cultural disadvantage as

14 compared to other children shall not be sufficient to prove that a
14

15 child is deprived; the state shall prove that the child is deprived
15

16 as defined pursuant to this title.
16

17 Nothing contained in this paragraph shall prevent a court from

18 immediately assuming custody of a child and ordering whatever action
18

19 may be necessary, including medical treatment, to protect the
19

20 child's health or welfare;
20

21 22. "Dispositional hearing" means a hearing by the court as

22 provided by Section 1-4-706 of this title;
22

23 23. "Drug-endangered child" means a child who is at risk of

24 suffering physical, psychological or sexual harm as a result of the
24

Req. No. 3559 Page 43
1 use, possession, distribution, manufacture or cultivation of
1

2 controlled substances, or the attempt of any of these acts, by a
2

3 person responsible for the health, safety or welfare of the child,
3

4 as defined in this section. This term includes circumstances
4

5 wherein the substance abuse of the person responsible for the
5

6 health, safety or welfare of the child interferes with that person's
6

7 ability to parent and provide a safe and nurturing environment for
7

8 the child;
8

9 24. "Emergency custody" means the custody of a child prior to

10 adjudication of the child following issuance of an order of the
10

11 district court pursuant to Section 1-4-201 of this title or
11

12 following issuance of an order of the district court pursuant to an
12

13 emergency custody hearing, as specified by Section 1-4-203 of this
13

14 title;
14

15 25. "Facility" means a place, an institution, a building or

16 part thereof, a set of buildings, or an area whether or not
16

17 enclosing a building or set of buildings used for the lawful custody
17

18 and treatment of children;
18

19 26. "Failure to protect" means failure to take reasonable

20 action to remedy or prevent child abuse or neglect, and includes the
20

21 conduct of a nonabusing parent or guardian who knows the identity of
21

22 the abuser or the person neglecting the child, but lies, conceals or
22

23 fails to report the child abuse or neglect or otherwise take
23

24 reasonable action to end the abuse or neglect;
24

Req. No. 3559 Page 44
1 27. "Family-style living program" means a residential program

2 providing sustained care and supervision to residents in a homelike
2

3 environment not located in a building used for commercial activity;
3

4 28. "Foster care" or "foster care services" means continuous

5 twenty-four-hour care and supportive services provided for a child
5

6 in foster placement including, but not limited to, the care,
6

7 supervision, guidance, and rearing of a foster child by the foster
7

8 parent;
8

9 29. "Foster family home" means the private residence of a

10 foster parent who provides foster care services to a child. Such
10

11 term shall include a nonkinship foster family home, a therapeutic
11

12 foster family home, or the home of a relative or other kinship care
12

13 home;
13

14 30. "Foster parent eligibility assessment" includes a criminal

15 background investigation including, but not limited to, a national
15

16 criminal history records search based upon the submission of
16

17 fingerprints, home assessments, and any other assessment required by
17

18 the Department of Human Services, the Office of Juvenile Affairs, or
18

19 any child-placing agency pursuant to the provisions of the Oklahoma
19

20 Child Care Facilities Licensing Act;
20

21 31. "Guardian ad litem" means a person appointed by the court

22 pursuant to the provisions of Section 1-4-306 of this title having
22

23 those duties and responsibilities as set forth in that section. The
23

24 term guardian ad litem shall refer to a court-appointed special
24

Req. No. 3559 Page 45
1 advocate as well as to any other person appointed pursuant to the
1

2 provisions of Section 1-4-306 of this title to serve as a guardian
2

3 ad litem;
3

4 32. "Guardian ad litem of the estate of the child" means a

5 person appointed by the court to protect the property interests of a
5

6 child pursuant to Section 1-8-108 of this title;
6

7 33. "Group home" means a residential facility licensed by the

8 Department to provide full-time care and community-based services
8

9 for more than five but fewer than thirteen children;
9

10 34. "Harm or threatened harm to the health or safety of a

11 child" means any real or threatened physical, mental, or emotional
11

12 injury or damage to the body or mind that is not accidental
12

13 including, but not limited to, sexual abuse, sexual exploitation,
13

14 neglect, or dependency;
14

15 35. "Heinous and shocking abuse" includes, but is not limited

16 to, aggravated physical abuse that results in serious bodily,
16

17 mental, or emotional injury. "Serious bodily injury" means injury
17

18 that involves:
18

19 a. a substantial risk of death,

20 b. extreme physical pain,

21 c. protracted disfigurement,

22 d. a loss or impairment of the function of a body member,

23 organ, or mental faculty,

Req. No. 3559 Page 46
1 e. an injury to an internal or external organ or the

2 body,

3 f. a bone fracture,

4 g. sexual abuse or sexual exploitation,

5 h. chronic abuse including, but not limited to, physical,

6 emotional, or sexual abuse, or sexual exploitation

7 which is repeated or continuing,

8 i. torture that includes, but is not limited to,

9 inflicting, participating in or assisting in

10 inflicting intense physical or emotional pain upon a

11 child repeatedly over a period of time for the purpose

12 of coercing or terrorizing a child or for the purpose

13 of satisfying the craven, cruel, or prurient desires

14 of the perpetrator or another person, or

15 j. any other similar aggravated circumstance;

16 36. "Heinous and shocking neglect" includes, but is not limited

17 to:
17

18 a. chronic neglect that includes, but is not limited to,

19 a persistent pattern of family functioning in which

20 the caregiver has not met or sustained the basic needs

21 of a child which results in harm to the child,

22 b. neglect that has resulted in a diagnosis of the child

23 as a failure to thrive,

Req. No. 3559 Page 47
1 c. an act or failure to act by a parent that results in

2 the death or near death of a child or sibling, serious

3 physical or emotional harm, sexual abuse, or sexual

4 exploitation, or presents an imminent risk of serious

5 harm to a child, or

6 d. any other similar aggravating circumstance;

7 37. "Individualized service plan" means a document written

8 pursuant to Section 1-4-704 of this title that has the same meaning
8

9 as "service plan" or "treatment plan" where those terms are used in
9

10 the Oklahoma Children's Code;
10

11 38. "Infant" means a child who is twelve (12) months of age or

12 younger;
12

13 39. "Institution" means a residential facility offering care

14 and treatment for more than twenty residents;
14

15 40. a. "Investigation" means a response to an allegation of

16 abuse or neglect that involves a serious and immediate

17 threat to the safety of the child, making it necessary

18 to determine:

19 (1) the current safety of a child and the risk of

20 subsequent abuse or neglect, and

21 (2) whether child abuse or neglect occurred and

22 whether the family needs prevention- and

23 intervention-related services.

Req. No. 3559 Page 48
1 b. Investigation results in a written response stating

2 one of the following findings:

3 (1) "substantiated" means the Department has

4 determined, after an investigation of a report of

5 child abuse or neglect and based upon some

6 credible evidence, that child abuse or neglect

7 has occurred. When child abuse or neglect is

8 substantiated, the Department may recommend:

9 (a) court intervention if the Department finds

10 the health, safety, or welfare of the child

11 is threatened, or

12 (b) child abuse and neglect prevention- and

13 intervention-related services for the child,

14 parents or persons responsible for the care

15 of the child if court intervention is not

16 determined to be necessary,

17 (2) "unsubstantiated" means the Department has

18 determined, after an investigation of a report of

19 child abuse or neglect, that insufficient

20 evidence exists to fully determine whether child

21 abuse or neglect has occurred. If child abuse or

22 neglect is unsubstantiated, the Department may

23 recommend, when determined to be necessary, that

24 the parents or persons responsible for the care

Req. No. 3559 Page 49
1 of the child obtain child abuse and neglect

2 prevention- and intervention-related services, or

3 (3) "ruled out" means a report in which a child

4 protective services specialist has determined,

5 after an investigation of a report of child abuse

6 or neglect, that no child abuse or neglect has

7 occurred;

8 41. "Kinship care" means full-time care of a child by a kinship

9 relation;
9

10 42. "Kinship guardianship" means a permanent guardianship as

11 defined in this section;
11

12 43. "Kinship relation" or "kinship relationship" means

13 relatives, stepparents, or other responsible adults who have a bond
13

14 or tie with a child or to whom has been ascribed a family
14

15 relationship role with the child's parents or the child; provided,
15

16 however, in cases where the Indian Child Welfare Act applies, the
16

17 definitions contained in 25 U.S.C., Section 1903 shall control;
17

18 44. "Mental health facility" means a mental health or substance

19 abuse treatment facility as defined by the Inpatient Mental Health
19

20 and Substance Abuse Treatment of Minors Act;
20

21 45. "Minor" means the same as the term child as defined in this

22 section;
22

Req. No. 3559 Page 50
1 46. "Minor in need of treatment" means a child in need of

2 mental health or substance abuse treatment as defined by the
2

3 Inpatient Mental Health and Substance Abuse Treatment of Minors Act;
3

4 47. "Multidisciplinary child abuse team" means any team

5 established pursuant to Section 1-9-102 of this title of three or
5

6 more persons who are trained in the prevention, identification,
6

7 investigation, prosecution, and treatment of physical and sexual
7

8 child abuse and who are qualified to facilitate a broad range of
8

9 prevention- and intervention-related services and services related
9

10 to child abuse. For purposes of this definition, "freestanding"
10

11 means a team not used by a child advocacy center for its
11

12 accreditation;
12

13 48. "Near death" means a child is in serious or critical

14 condition, as certified by a physician, as a result of abuse or
14

15 neglect;
15

16 49. a. "Neglect" means:

17 (1) the failure or omission to provide any of the

18 following:

19 (a) adequate nurturance and affection, food,

20 clothing, shelter, sanitation, hygiene, or

21 appropriate education,

22 (b) medical, dental, or behavioral health care,

23 (c) supervision or appropriate caretakers to

24 protect the child from harm or threatened

Req. No. 3559 Page 51
1 harm of which any reasonable and prudent

2 person responsible for the child's health,

3 safety or welfare would be aware, or

4 (d) special care made necessary for the child's

5 health and safety by the physical or mental

6 condition of the child,

7 (2) the failure or omission to protect a child from

8 exposure to any of the following:

9 (a) the use, possession, sale, or manufacture of

10 illegal drugs,

11 (b) illegal activities, or

12 (c) sexual acts or materials that are not age-

13 appropriate, or

14 (3) abandonment.

15 b. Neglect shall not mean a child who engages in

16 independent activities, except if the person

17 responsible for the child's health, safety or welfare

18 willfully disregards any harm or threatened harm to

19 the child, given the child's level of maturity,

20 physical condition or mental abilities. Such

21 independent activities include but are not limited to:

22 (1) traveling to and from school including by

23 walking, running or bicycling,

Req. No. 3559 Page 52
1 (2) traveling to and from nearby commercial or

2 recreational facilities,

3 (3) engaging in outdoor play,

4 (4) remaining at home unattended for a reasonable

5 amount of time,

6 (5) remaining in a vehicle if the temperature inside

7 the vehicle is not or will not become dangerously

8 hot or cold, except under the conditions

9 described in Section 11-1119 of Title 47 of the

10 Oklahoma Statutes, or

11 (6) engaging in similar activities alone or with

12 other children.

13 Nothing in this paragraph shall be construed to mean a child is
13

14 abused or neglected for the sole reason the parent, legal guardian
14

15 or person having custody or control of a child, in good faith,
15

16 selects and depends upon spiritual means alone through prayer, in
16

17 accordance with the tenets and practice of a recognized church or
17

18 religious denomination, for the treatment or cure of disease or
18

19 remedial care of such child. Nothing contained in this paragraph
19

20 shall prevent a court from immediately assuming custody of a child,
20

21 pursuant to the Oklahoma Children's Code, and ordering whatever
21

22 action may be necessary, including medical treatment, to protect the
22

23 child's health or welfare;
23

Req. No. 3559 Page 53
1 50. "Permanency hearing" means a hearing by the court pursuant

2 to Section 1-4-811 of this title;
2

3 51. "Permanent custody" means the court-ordered custody of an

4 adjudicated deprived child when a parent-child relationship no
4

5 longer exists due to termination of parental rights or due to the
5

6 death of a parent or parents;
6

7 52. "Permanent guardianship" means a judicially created

8 relationship between a child, a kinship relation of the child, or
8

9 other adult established pursuant to the provisions of Section 1-4-
9

10 709 of this title;
10

11 53. "Person responsible for a child's health, safety, or

12 welfare" includes a parent; a legal guardian; custodian; a foster
12

13 parent; a person eighteen (18) years of age or older with whom the
13

14 child's parent cohabitates or any other adult residing in the home
14

15 of the child; an agent or employee of a public or private
15

16 residential home, institution, facility or day treatment program as
16

17 defined in Section 175.20 of Title 10 of the Oklahoma Statutes; or
17

18 an owner, operator, or employee of a child care facility as defined
18

19 by Section 402 of Title 10 of the Oklahoma Statutes;
19

20 54. "Plan of safe care" means a plan developed for an infant

21 with Neonatal Abstinence Syndrome or a Fetal Alcohol Spectrum
21

22 Disorder upon release from the care of a health care provider that
22

23 addresses the health and substance use treatment needs of the infant
23

24 and mother or caregiver;
24

Req. No. 3559 Page 54
1 55. "Protective custody" means custody of a child taken by a

2 law enforcement officer or designated employee of the court without
2

3 a court order;
3

4 56. "Putative father" means an alleged father as that term is

5 defined in Section 7700-102 of Title 10 of the Oklahoma Statutes;
5

6 57. "Qualified residential treatment program" means a program

7 that:
7

8 a. has a trauma-informed treatment model that is designed

9 to address the needs including clinical needs as

10 appropriate, of children with serious emotional or

11 behavioral disorders or disturbances and, with respect

12 to a child, is able to implement the treatment

13 identified for the child from a required assessment,

14 b. has registered or licensed nursing staff and other

15 licensed clinical staff who:

16 (1) provide care within the scope of their practice

17 as defined by the laws of this state,

18 (2) are on-site according to the treatment model

19 referred to in subparagraph a of this paragraph,

20 and

21 (3) are available twenty-four (24) hours a day and

22 seven (7) days a week,

Req. No. 3559 Page 55
1 c. to the extent appropriate, and in accordance with the

2 child's best interest, facilitates participation of

3 family members in the child's treatment program,

4 d. facilitates outreach to the family members of the

5 child including siblings, documents how the outreach

6 is made including contact information, and maintains

7 contact information for any known biological family of

8 the child,

9 e. documents how family members are integrated into the

10 treatment process for the child including post-

11 discharge, and how sibling connections are maintained,

12 f. provides discharge planning and family-based aftercare

13 support for at least six (6) months post-discharge,

14 and

15 g. is licensed and accredited by any of the following

16 independent, not-for-profit organizations:

17 (1) the Commission on Accreditation of Rehabilitation

18 Facilities (CARF),

19 (2) the Joint Commission,

20 (3) the Council on Accreditation (COA), or

21 (4) any other federally approved independent, not-

22 for-profit accrediting organization;

23 58. "Reasonable and prudent parent standard" means the standard

24 characterized by careful and sensible parental decisions that
24

Req. No. 3559 Page 56
1 maintain the health, safety, and best interests of a child while at
1

2 the same time encouraging the emotional and developmental growth of
2

3 the child. This standard shall be used by the child's caregiver
3

4 when determining whether to allow a child to participate in
4

5 extracurricular, enrichment, cultural, and social activities. For
5

6 purposes of this definition, the term "caregiver" means a foster
6

7 parent with whom a child in foster care has been placed, a
7

8 representative of a group home where a child has been placed or a
8

9 designated official for a residential child care facility where a
9

10 child in foster care has been placed;
10

11 59. "Relative" means a grandparent, great-grandparent, brother

12 or sister of whole or half blood, aunt, uncle or any other person
12

13 related to the child;
13

14 60. "Residential child care facility" means a twenty-four-hour

15 residential facility where children live together with or are
15

16 supervised by adults who are not their parents or relatives;
16

17 61. "Review hearing" means a hearing by the court pursuant to

18 Section 1-4-807 of this title;
18

19 62. "Risk" means the likelihood that an incident of child abuse

20 or neglect will occur in the future;
20

21 63. "Safety threat" means the threat of serious harm due to

22 child abuse or neglect occurring in the present or in the very near
22

23 future and without the intervention of another person, a child would
23

Req. No. 3559 Page 57
1 likely or in all probability sustain severe or permanent disability
1

2 or injury, illness, or death;
2

3 64. "Safety analysis" means action taken by the Department in

4 response to a report of alleged child abuse or neglect that may
4

5 include an assessment or investigation based upon an analysis of the
5

6 information received according to priority guidelines and other
6

7 criteria adopted by the Department;
7

8 65. "Safety evaluation" means evaluation of a child's situation

9 by the Department using a structured, evidence-based tool to
9

10 determine if the child is subject to a safety threat;
10

11 66. "Secure facility" means a facility which is designed and

12 operated to ensure that all entrances and exits from the facility
12

13 are subject to the exclusive control of the staff of the facility,
13

14 whether or not the juvenile being detained has freedom of movement
14

15 within the perimeter of the facility, or a facility which relies on
15

16 locked rooms and buildings, fences, or physical restraint in order
16

17 to control behavior of its residents;
17

18 67. "Sibling" means a biologically or legally related brother

19 or sister of a child. This includes an individual who satisfies at
19

20 least one of the following conditions with respect to a child:
20

21 a. the individual is considered by state law to be a

22 sibling of the child, or

23 b. the individual would have been considered a sibling

24 under state law but for a termination or other

Req. No. 3559 Page 58
1 disruption of parental rights, such as the death of a

2 parent;

3 68. "Specialized foster care" means foster care provided to a

4 child in a foster home or agency-contracted home which:
4

5 a. has been certified by the Developmental Disabilities

6 Services Division of the Department of Human Services,

7 b. is monitored by the Division, and

8 c. is funded through the Home and Community-Based Waiver

9 Services Program administered by the Division;

10 69. "Successful adulthood program" means a program specifically

11 designed to assist a child to enhance those skills and abilities
11

12 necessary for successful adult living. A successful adulthood
12

13 program may include, but shall not be limited to, such features as
13

14 minimal direct staff supervision, and the provision of supportive
14

15 services to assist children with activities necessary for finding an
15

16 appropriate place of residence, completing an education or
16

17 vocational training, obtaining employment, or obtaining other
17

18 similar services;
18

19 70. "Temporary custody" means court-ordered custody of an

20 adjudicated deprived child;
20

21 71. "Therapeutic foster family home" means a foster family home

22 which provides specific treatment services, pursuant to a
22

23 therapeutic foster care contract, which are designed to remedy
23

Req. No. 3559 Page 59
1 social and behavioral problems of a foster child residing in the
1

2 home;
2

3 72. "Third party" means any nonkin individual who is not

4 related to the child by blood, marriage, or legal adoption;
4

5 73. "Time-limited reunification services" means reunification

6 services provided only during the period of fifteen (15) months that
6

7 begins on the date the child is considered to have entered foster
7

8 care;
8

9 73. 74. "Trafficking in persons" means sex trafficking or

10 severe forms of trafficking in persons as described in Section 7102
10

11 of Title 22 of the United States Code:
11

12 a. "sex trafficking" means the recruitment, harboring,

13 transportation, provision, obtaining, patronizing or

14 soliciting of a person for the purpose of a commercial

15 sex act, and

16 b. "severe forms of trafficking in persons" means:

17 (1) sex trafficking in which a commercial sex act is

18 induced by force, fraud, or coercion, or in which

19 the person induced to perform such act has not

20 attained eighteen (18) years of age, or

21 (2) the recruitment, harboring, transportation,

22 provision, obtaining, patronizing or soliciting

23 of a person for labor or services, through the

24 use of force, fraud, or coercion for the purpose

Req. No. 3559 Page 60
1 of subjection to involuntary servitude, peonage,

2 debt bondage, or slavery;

3 74. 75. "Transitional living program" means a residential

4 program that may be attached to an existing facility or operated
4

5 solely for the purpose of assisting children to develop the skills
5

6 and abilities necessary for successful adult living. The program
6

7 may include, but shall not be limited to, reduced staff supervision,
7

8 vocational training, educational services, employment and employment
8

9 training, and other appropriate independent living skills training
9

10 as a part of the transitional living program; and
10

11 75. 76. "Voluntary foster care placement" means the temporary

12 placement of a child by the parent, legal guardian or custodian of
12

13 the child in foster care pursuant to a signed placement agreement
13

14 between the Department or a child-placing agency and the child's
14

15 parent, legal guardian or custodian.
15

16 SECTION 23. REPEALER 10A O.S. 2021, Section 1-1-105, as

17 amended by Section 1, Chapter 149, O.S.L. 2025 (10A O.S. Supp. 2025,
17

18 Section 1-1-105), is hereby repealed.
18

19 SECTION 24. AMENDATORY 15 O.S. 2021, Section 141.13, as

20 amended by Section 7, Chapter 225, O.S.L. 2024 (15 O.S. Supp. 2025,
20

21 Section 141.13), is amended to read as follows:
21

22 Section 141.13. A. No service warranty form or related form

23 shall be issued or used in this state unless the form has been filed
23

24 with the Insurance Commissioner. Service warranty forms shall not
24

Req. No. 3559 Page 61
1 be subject to prior approval and shall be filed with the Insurance
1

2 Commissioner for informational purposes only.
2

3 B. Each service warranty contract shall contain a cancelation

4 provision. In the event the contract is canceled by the warranty
4

5 holder, return of the provider fee shall be based upon ninety
5

6 percent (90%) of the unearned pro rata provider fee less the actual
6

7 cost of any service provided under the service warranty contract.
7

8 In the event the contract is canceled by the association, return of
8

9 premium shall be based upon one hundred percent (100%) of unearned
9

10 pro rata provider fee less the actual cost of any service provided
10

11 under the service warranty contract.
11

12 C. Service warranties shall state the name and, address and

13 license number of the service warranty association and shall
13

14 identify any administrator if different from the service warranty
14

15 association, the service warranty seller and the service warranty
15

16 holder to the extent that the name of the service warranty holder
16

17 has been furnished by the service warranty holder. For service
17

18 warranties issued on and after July 1, 2017, the identity of the
18

19 service warranty association and its license number shall be
19

20 preprinted on the service warranty or added at the time of sale so
20

21 consumers can clearly identify the obligor of the service warranty.
21

22 Information to be printed at the time of sale shall be indicated as
22

23 such at the time the service warranty is filed and a "Jane Doe"
23

Req. No. 3559 Page 62
1 specimen shall accompany the service warranty illustrating how the
1

2 service warranty will look after printing.
2

3 Each person and service warranty association shall

4 electronically submit, in the form and manner prescribed by the
4

5 Commissioner, any change of legal business name, "doing business as"
5

6 or assumed name, address, or contact email address within thirty
6

7 (30) days after the change occurred, and any fees deemed necessary
7

8 by the Commissioner. Any submission of a change under this
8

9 paragraph received more than thirty (30) days after the change
9

10 occurs shall be accompanied by a fee of Fifty Dollars ($50.00).
10

11 D. The Commissioner shall have the authority to immediately

12 order a service warranty association to stop using any service
12

13 warranty contract if the Commissioner determines that the form:
13

14 1. Violates the Service Warranty Act;

15 2. Is misleading in any respect; or

16 3. Is reproduced so that any material provision is

17 substantially illegible.
17

18 E. The Insurance Commissioner may, by order, exempt from the

19 requirements of this section for so long as he or she deems proper
19

20 any document or form or type thereof as specified in such order, to
20

21 which, in his or her discretion, this section may not practicably be
21

22 applied, or the filing of which is, in his or her opinion, not
22

23 desirable or necessary for the protection of the public.
23

Req. No. 3559 Page 63
1 SECTION 25. REPEALER 15 O.S. 2021, Section 141.13, as

2 amended by Section 1, Chapter 72, O.S.L. 2016, is hereby repealed.
2

3 SECTION 26. AMENDATORY 18 O.S. 2021, Section 1006, as

4 amended by Section 10, Chapter 120, O.S.L. 2024 (18 O.S. Supp. 2025,
4

5 Section 1006), is amended to read as follows:
5

6 Section 1006.

7 CERTIFICATE OF INCORPORATION; CONTENTS

8 A. The certificate of incorporation shall set forth:

9 1. The name of the corporation which shall contain one of the

10 words "association", "company", "corporation", "club", "foundation",
10

11 "fund", "incorporated", "institute", "society", "union",
11

12 "syndicate", or "limited" or abbreviations thereof, with or without
12

13 punctuation, or words or abbreviations thereof, with or without
13

14 punctuation, of like import of foreign countries or jurisdictions;
14

15 provided that such abbreviations are written in Roman characters or
15

16 letters, and which shall be such as to distinguish it upon the
16

17 records in the Office of the Secretary of State from:
17

18 a. names of other corporations, whether domestic or

19 foreign, then existing or which existed at any time

20 during the preceding three (3) years,

21 b. names of partnerships whether general or limited, or

22 domestic or foreign, then in good standing or

23 registered or which were in good standing or

Req. No. 3559 Page 64
1 registered at any time during the preceding three (3)

2 years,

3 c. names of limited liability companies, whether domestic

4 or foreign, then in good standing or registered or

5 which were in good standing or registered at any time

6 during the preceding three (3) years,

7 d. names of registered series of a limited liability

8 company,

9 e. trade names or fictitious names filed with the

10 Secretary of State, or

11 e. corporate, limited liability company or limited

12 partnership names

13 f. names of corporations, limited liability companies,

14 limited partnerships, or registered series of limited

15 liability companies reserved with the Secretary of

16 State;

17 2. The address including the street, number, city and postal

18 code of the corporation's registered office in this state, and the
18

19 name of the corporation's registered agent at such address;
19

20 3. The nature of the business or purposes to be conducted or

21 promoted. It shall be sufficient to state, either alone or with
21

22 other businesses or purposes, that the purpose of the corporation is
22

23 to engage in any lawful act or activity for which corporations may
23

24 be organized under the general corporation law of this state, and by
24

Req. No. 3559 Page 65
1 such statement all lawful acts and activities shall be within the
1

2 purposes of the corporation, except for express limitations, if any;
2

3 4. If the corporation is to be authorized to issue only one

4 class of stock, the total number of shares of stock which the
4

5 corporation shall have authority to issue and the par value of each
5

6 of such shares, or a statement that all such shares are to be
6

7 without par value. If the corporation is to be authorized to issue
7

8 more than one class of stock, the certificate of incorporation shall
8

9 set forth the total number of shares of all classes of stock which
9

10 the corporation shall have authority to issue and the number of
10

11 shares of each class, and shall specify each class the shares of
11

12 which are to be without par value and each class the shares of which
12

13 are to have par value and the par value of the shares of each such
13

14 class. The provisions of this paragraph shall not apply to
14

15 corporations which are not organized for profit and which are not to
15

16 have authority to issue capital stock. In the case of such
16

17 corporations, the fact that they are not to have authority to issue
17

18 capital stock shall be stated in the certificate of incorporation.
18

19 The provisions of this paragraph shall not apply to nonstock
19

20 corporations. In the case of nonstock corporations, the fact that
20

21 they are not authorized to issue capital stock shall be stated in
21

22 the certificate of incorporation. The conditions of membership, or
22

23 other criteria for identifying members, of nonstock corporations
23

24 shall likewise be stated in the certificate of incorporation or the
24

Req. No. 3559 Page 66
1 bylaws. Nonstock corporations shall have members, but the failure
1

2 to have members shall not affect otherwise valid corporate acts or
2

3 work a forfeiture or dissolution of the corporation. Nonstock
3

4 corporations may provide for classes or groups of members having
4

5 relative rights, powers and duties, and may make provision for the
5

6 future creation of additional classes or groups of members having
6

7 such relative rights, powers and duties as may from time to time be
7

8 established, including rights, powers and duties senior to existing
8

9 classes and groups of members. Except as otherwise provided in the
9

10 Oklahoma General Corporation Act, nonstock corporations may also
10

11 provide that any member or class or group of members shall have
11

12 full, limited, or no voting rights or powers, including that any
12

13 member or class or group of members shall have the right to vote on
13

14 a specified transaction even if that member or class or group of
14

15 members does not have the right to vote for the election of members
15

16 of the governing body of the corporation. Voting by members of a
16

17 nonstock corporation may be on a per capita, number, financial
17

18 interest, class, group, or any other basis set forth. The
18

19 provisions referred to in the three preceding sentences may be set
19

20 forth in the certificate of incorporation or the bylaws. If neither
20

21 the certificate of incorporation nor the bylaws of a nonstock
21

22 corporation state the conditions of membership, or other criteria
22

23 for identifying members, the members of the corporation shall be
23

24 deemed to be those entitled to vote for the election of the members
24

Req. No. 3559 Page 67
1 of the governing body pursuant to the certificate of incorporation
1

2 or bylaws of such corporation or otherwise until thereafter
2

3 otherwise provided by the certificate of incorporation or the
3

4 bylaws;
4

5 5. The name and mailing address of the incorporator or

6 incorporators;
6

7 6. If the powers of the incorporator or incorporators are to

8 terminate upon the filing of the certificate of incorporation, the
8

9 names and mailing addresses of the persons who are to serve as
9

10 directors until the first annual meeting of shareholders or until
10

11 their successors are elected and qualify;
11

12 7. If the corporation is not for profit:

13 a. that the corporation does not afford pecuniary gain,

14 incidentally or otherwise, to its members as such,

15 b. the name and mailing address of each member of the

16 governing body,

17 c. the number of members of the governing body to be

18 elected at the first meeting, and

19 d. in the event the corporation is a church, the street

20 address of the location of the church.

21 The restriction on affording pecuniary gain to members shall not

22 prevent a not-for-profit corporation operating as a cooperative from
22

23 rebating excess revenues to patrons who may also be members; and
23

Req. No. 3559 Page 68
1 8. If the corporation is a charitable nonstock and does not

2 otherwise provide in its certificate of incorporation:
2

3 a. that the corporation is organized exclusively for

4 charitable, religious, educational, and scientific

5 purposes including, for such purposes, the making of

6 distributions to organizations that qualify as exempt

7 organizations under Section 501(c)(3) of the Internal

8 Revenue Code, or the corresponding section of any

9 future federal tax code,

10 b. that upon the dissolution of the corporation, its

11 assets shall be distributed for one or more exempt

12 purposes within the meaning of Section 501(c)(3) of

13 the Internal Revenue Code, or the corresponding

14 section of any future federal tax code, for a public

15 purpose, and

16 c. that the corporation complies with the requirements in

17 paragraph 7 of this subsection.

18 B. In addition to the matters required to be set forth in the

19 certificate of incorporation pursuant to the provisions of
19

20 subsection A of this section, the certificate of incorporation may
20

21 also contain any or all of the following matters:
21

22 1. Any provision for the management of the business and for the

23 conduct of the affairs of the corporation, and any provision
23

24 creating, defining, limiting and regulating the powers of the
24

Req. No. 3559 Page 69
1 corporation, the directors, and the shareholders, or any class of
1

2 the shareholders, or the governing body, the members, or any class
2

3 or group of the members of a nonstock corporation, if such
3

4 provisions are not contrary to the laws of this state. Any
4

5 provision which is required or permitted by any provision of the
5

6 Oklahoma General Corporation Act to be stated in the bylaws may
6

7 instead be stated in the certificate of incorporation;
7

8 2. The following provisions, in substantially the following

9 form:
9

10 a. for a corporation, other than a nonstock corporation:

11 "Whenever a compromise or arrangement is proposed

12 between this corporation and its creditors or any

13 class of them and/or between this corporation and its

14 shareholders or any class of them, any court of

15 equitable jurisdiction within this state, on the

16 application in a summary way of this corporation or of

17 any creditor or shareholder thereof or on the

18 application of any receiver or receivers appointed for

19 this corporation under the provisions of Section 1106

20 of this title or on the application of trustees in

21 dissolution or of any receiver or receivers appointed

22 for this corporation under the provisions of Section

23 1100 of this title, may order a meeting of the

24 creditors or class of creditors, and/or of the

Req. No. 3559 Page 70
1 shareholders or class of shareholders of this

2 corporation, as the case may be, to be summoned in

3 such manner as the court directs. If a majority in

4 number representing three-fourths (3/4) in value of

5 the creditors or class of creditors, and/or of the

6 shareholders or class of shareholders of this

7 corporation, as the case may be, agree to any

8 compromise or arrangement and to any reorganization of

9 this corporation as a consequence of such compromise

10 or arrangement, the compromise or arrangement and the

11 reorganization, if sanctioned by the court to which

12 the application has been made, shall be binding on all

13 the creditors or class of creditors, and/or on all the

14 shareholders or class of shareholders, of this

15 corporation, as the case may be, and also on this

16 corporation", and

17 b. for a nonstock corporation:

18 "Whenever a compromise or arrangement is proposed

19 between this corporation and its creditors or any

20 class of them and/or between this corporation and its

21 members or any class of them, any court of equitable

22 jurisdiction within this state may, on the application

23 in a summary way of this corporation or of any

24 creditor or member thereof or on the application of

Req. No. 3559 Page 71
1 any receiver or receivers appointed for this

2 corporation under the provisions of Section 1106 of

3 this title or on the application of trustees in

4 dissolution or of any receiver or receivers appointed

5 for this corporation under the provisions of Section

6 1100 of this title, order a meeting of the creditors

7 or class of creditors, and/or of the members or class

8 of members of this corporation, as the case may be, to

9 be summoned in such manner as the court directs. If a

10 majority in number representing three-fourths (3/4) in

11 value of the creditors or class of creditors, and/or

12 of the members or class of members of this

13 corporation, as the case may be, agree to any

14 compromise or arrangement and to any reorganization of

15 this corporation as a consequence of such compromise

16 or arrangement, the compromise or arrangement and the

17 reorganization, if sanctioned by the court to which

18 the application has been made, shall be binding on all

19 the creditors or class of creditors, and/or on all the

20 members or class of members, of this corporation, as

21 the case may be, and also on this corporation";

22 3. Such provisions as may be desired granting to the holders of

23 the stock of the corporation, or the holders of any class or series
23

24 of a class thereof, the preemptive right to subscribe to any or all
24

Req. No. 3559 Page 72
1 additional issues of stock of the corporation of any or all classes
1

2 or series thereof, or to any securities of the corporation
2

3 convertible into such stock. No shareholder shall have any
3

4 preemptive right to subscribe to an additional issue of stock or to
4

5 any security convertible into such stock unless, and except to the
5

6 extent that, such right is expressly granted to him in the
6

7 certificate of incorporation. Preemptive rights, if granted, shall
7

8 not extend to fractional shares;
8

9 4. Provisions requiring, for any corporate action, the vote of

10 a larger portion of the stock or of any class or series thereof, or
10

11 of any other securities having voting power, or a larger number of
11

12 the directors, than is required by the provisions of the Oklahoma
12

13 General Corporation Act;
13

14 5. A provision limiting the duration of the corporation's

15 existence to a specified date; otherwise, the corporation shall have
15

16 perpetual existence;
16

17 6. A provision imposing personal liability for the debts of the

18 corporation on its shareholders to a specified extent and upon
18

19 specified conditions; otherwise, the shareholders of a corporation
19

20 shall not be personally liable for the payment of the corporation's
20

21 debts, except as they may be liable by reason of their own conduct
21

22 or acts; or
22

23 7. A provision eliminating or limiting the personal liability

24 of a director or officer to the corporation or its shareholders for
24

Req. No. 3559 Page 73
1 monetary damages for breach of fiduciary duty as a director or
1

2 officer, provided that such provision shall not eliminate or limit
2

3 the liability of:
3

4 a. a director or officer for any breach of the director's

5 or officer's duty of loyalty to the corporation or its

6 shareholders,

7 b. a director or officer for acts or omissions not in

8 good faith or which involve intentional misconduct or

9 a knowing violation of law,

10 c. a director under Section 1053 of this title,

11 d. a director or officer for any transaction from which

12 the director or officer derived an improper personal

13 benefit, or

14 e. an officer in any action by or in the right of the

15 corporation.

16 No such provision shall eliminate or limit the liability of a

17 director or officer for any act or omission occurring before the
17

18 date when such provision becomes effective. An amendment, repeal,
18

19 or elimination of such provision shall not affect its application
19

20 with respect to an act or omission by a director or officer
20

21 occurring before the amendment, repeal, or elimination of the
21

22 provision unless the provision provides otherwise at the time of the
22

23 act or omission.
23

Req. No. 3559 Page 74
1 Any reference in this subsection to a director shall be deemed

2 to refer to such other persons who, under a provision of the
2

3 certificate of incorporation in accordance with subsection A of
3

4 Section 1027 of this title, exercises or performs any of the powers
4

5 or duties otherwise conferred or imposed upon the board of directors
5

6 under this title.
6

7 C. It shall not be necessary to set forth in the certificate of

8 incorporation any of the powers conferred on corporations by the
8

9 provisions of the Oklahoma General Corporation Act.
9

10 D. Except for provisions included under paragraphs 1, 2, 5, 6

11 and 7 of subsection A of this section and paragraphs 2, 5 and 7 of
11

12 subsection B of this section, and provisions included under
12

13 paragraph 4 of subsection A of this section specifying the classes,
13

14 number of shares and par value of shares a corporation other than a
14

15 nonstock corporation is authorized to issue, any provision of the
15

16 certificate of incorporation may be made dependent upon facts
16

17 ascertainable outside the instrument, provided that the manner in
17

18 which the facts shall operate upon the provision is clearly and
18

19 explicitly set forth therein. As used in this subsection, the term
19

20 "facts" includes but is not limited to the occurrence of any event
20

21 including a determination or action by any person or body, including
21

22 the corporation.
22

Req. No. 3559 Page 75
1 SECTION 27. REPEALER 18 O.S. 2021, Section 1006, as

2 amended by Section 1, Chapter 121, O.S.L. 2024 (18 O.S. Supp. 2025,
2

3 Section 1006), is hereby repealed.
3

4 SECTION 28. AMENDATORY 19 O.S. 2021, Section 1505, as

5 last amended by Section 2, Chapter 85, O.S.L. 2025 (19 O.S. Supp.
5

6 2025, Section 1505), is amended to read as follows:
6

7 Section 1505. The following procedures shall be used by

8 counties for the requisition, purchase, lease-purchase, rental, and
8

9 receipt of supplies, materials, road and bridge construction
9

10 services, equipment, and other services, except for professional
10

11 services as defined in Section 803 of Title 18 of the Oklahoma
11

12 Statutes, for the maintenance, operation, and capital expenditures
12

13 of county government unless otherwise provided for by law.
13

14 A. The procedure for requisitioning items for county offices

15 shall be as follows:
15

16 1. The requesting department shall prepare a requisition form

17 in triplicate. The requisition shall contain any specifications for
17

18 an item as deemed necessary by the requesting department. The form
18

19 shall be prescribed by the State Auditor and Inspector;
19

20 2. The requesting department shall retain a copy of the

21 requisition and forward the original requisition and a copy to the
21

22 county purchasing agent; and
22

23 3. Upon receipt of the requisition, the county purchasing

24 agent, within two (2) working days, shall begin the bidding and
24

Req. No. 3559 Page 76
1 purchasing process as provided for in this section. Nothing in this
1

2 section shall prohibit the transfer of supplies, materials, or
2

3 equipment between county departments upon a written agreement
3

4 between county officers.
4

5 B. The bid procedure for selecting a vendor for the purchase,

6 lease-purchase, or rental of supplies, materials, equipment, and
6

7 services used by a county shall be as follows:
7

8 1. The county purchasing agent shall request written

9 recommendations from all county officers pertaining to needed or
9

10 commonly used supplies, materials, road and bridge construction
10

11 services, equipment, and services. From such recommendations and
11

12 available requisition, purchase, or inventory records, the county
12

13 purchasing agent shall prepare a list of items needed or commonly
13

14 used by county officers. The county purchasing agent shall request
14

15 from the Purchasing Division or from the Information Services
15

16 Division in the case of information technology and telecommunication
16

17 goods and services of the Office of Management and Enterprise
17

18 Services all contracts quoting the price the state is paying for the
18

19 items. The county purchasing agent shall either request the
19

20 Purchasing Division or the Information Services Division of the
20

21 Office of Management and Enterprise Services, as applicable, to make
21

22 the purchase for the county or the county purchasing agent shall
22

23 solicit bids for unit prices on the items for periods of not to
23

24 exceed twelve (12) months in the manner described in paragraph 2 of
24

Req. No. 3559 Page 77
1 this subsection. If the county purchasing agent receives a
1

2 requisition for an item for which the county purchasing agent does
2

3 not have a current bid, the county purchasing agent shall request
3

4 from the Purchasing Division or the Information Services Division of
4

5 the Office of Management and Enterprise Services, as applicable, all
5

6 contracts quoting the price the state is paying for the item. The
6

7 county purchasing agent shall either request the Purchasing Division
7

8 or the Information Services Division of the Office of Management and
8

9 Enterprise Services, as applicable, to make the purchase for the
9

10 county or the county purchasing agent shall solicit bids in the
10

11 manner described in paragraph 2 of this subsection. Nothing in this
11

12 paragraph shall prohibit bids from being taken on an item currently
12

13 on a twelve-month bid list, at any time deemed necessary by the
13

14 county purchasing agent. Whenever the county purchasing agent deems
14

15 it necessary to take a bid on an item currently on a twelve-month
15

16 bid list, the reason for the bid shall be entered into the minutes
16

17 of the board of county commissioners;
17

18 2. Bids shall be solicited by mailing or emailing a notice to

19 all persons or firms who have made a written request of the county
19

20 purchasing agent that they be notified of such bid solicitation and
20

21 to all other persons or firms who might reasonably be expected to
21

22 submit bids. Notice of solicitation of bids shall also be published
22

23 one time in a newspaper of general circulation in the county.
23

24 Notices shall be mailed and published at least ten (10) days prior
24

Req. No. 3559 Page 78
1 to the date on which the bids are opened. Proof of the mailing or
1

2 emailing shall be made by the affidavit of the person mailing or
2

3 emailing the request for bids and shall be made a part of the
3

4 official records of the county purchasing agent. The notice shall
4

5 specify whether the county will consider written bids, electronic
5

6 bids, or both; the decision to exclusively consider either written
6

7 bids or electronic bids shall be determined pursuant to an
7

8 affirmative vote of the board of county commissioners. Whenever any
8

9 prospective supplier or vendor dealing in or listing for sale any
9

10 particular item or article required to be purchased or acquired by
10

11 sealed bids fails to enter or offer a sealed bid for three
11

12 successive bid solicitations, the name of the supplier or vendor may
12

13 be dropped from the mailing lists of the board of county
13

14 commissioners;
14

15 3. The sealed bids received from vendors and the state contract

16 price received from the applicable division of the Office of
16

17 Management and Enterprise Services shall be given to the county
17

18 clerk by the county purchasing agent. The county clerk shall
18

19 forward the sealed bids and state contract price, if any, to the
19

20 board of county commissioners;
20

21 4. The board of county commissioners, in an open meeting, shall

22 open the sealed bids and compare them to the state contract price.
22

23 The board of county commissioners shall select the lowest and best
23

24 bid based upon, if applicable, the availability of material and
24

Req. No. 3559 Page 79
1 transportation cost to the job site within thirty (30) days of the
1

2 meeting. For any special item not included on the list of needed or
2

3 commonly used items, the requisitioning official shall review the
3

4 bids and submit a written recommendation to the board before final
4

5 approval. The board of county commissioners shall keep a written
5

6 record of the meeting as required by law, and any time the lowest
6

7 bid was not considered to be the lowest and best bid, the reason for
7

8 such conclusion shall be recorded. Whenever the board of county
8

9 commissioners rejects the written recommendation of the
9

10 requisitioning official pertaining to a special item, the reasons
10

11 for the rejection shall be entered in their minutes and stated in a
11

12 letter to the requisitioning official and county purchasing agent;
12

13 5. The county purchasing agent shall notify the successful

14 bidders and shall maintain a copy of the notification. The county
14

15 purchasing agent shall prepare and maintain a vendors list
15

16 specifying the successful bidders and shall notify each county
16

17 officer of the list. The county purchasing agent may remove any
17

18 vendor from such list who refuses to provide goods or services as
18

19 provided by contract if the removal is authorized by the board of
19

20 county commissioners. The county purchasing agent may make
20

21 purchases from the remaining bidders for a price at or below the bid
21

22 price; and
22

23 6. When bids have been solicited as provided for by law and no

24 bids have been received, the procedure shall be as follows:
24

Req. No. 3559 Page 80
1 a. the county purchasing agent shall determine if

2 potential vendors are willing to commit to a firm

3 price for a reduced period of time, and, if such is

4 the case, the bid procedure described in this

5 subsection shall be followed,

6 b. if vendors are not willing to commit to a firm price

7 for a reduced period, the purchasing agent shall

8 solicit and record at least three (3) quotes of

9 current prices available to the county and authorize

10 the purchase of goods or services based on the lowest

11 and best quote as it becomes necessary to acquire such

12 goods or services. The quotes shall be recorded on a

13 form prescribed by the State Auditor and Inspector and

14 shall be attached to the purchase order and filed with

15 the county clerk's copy of the purchase order. Any

16 time the lowest quote was not considered to be the

17 lowest and best quote, the reason for this conclusion

18 shall be recorded by the county purchasing agent and

19 transmitted to the county clerk, or

20 c. if three quotes are not available, a memorandum to the

21 county clerk from the county purchasing agent shall

22 describe the basis upon which a purchase is

23 authorized. The memorandum shall state the reasons

24 why the price for such a purchase is the lowest and

Req. No. 3559 Page 81
1 best under the circumstances. The county clerk shall

2 then attach the memorandum to the county clerk's copy

3 of the purchase order and file both in the office of

4 the county clerk.

5 C. After selection of a vendor, the procedure for the purchase,

6 lease-purchase, or rental of supplies, materials, road and bridge
6

7 construction services, equipment, and services used by a county
7

8 shall be as follows:
8

9 1. The county purchasing agent shall prepare a purchase order

10 in quadruplicate and submit it with a copy of the requisition to the
10

11 county clerk;
11

12 2. The county clerk shall then encumber the amount stated on

13 the purchase order and assign a sequential number to the purchase
13

14 order;
14

15 3. If there is an unencumbered balance in the appropriation

16 made for that purpose by the county excise board, the county clerk
16

17 shall so certify in the following form:
17

18 "I hereby certify that the amount of this encumbrance has been

19 entered against the designated appropriation accounts and that this
19

20 encumbrance is within the authorized available balance of the
20

21 appropriation.
21

22 Dated this ________ day of ________, 20__.

23 ________________________________

24 County Clerk/Deputy

Req. No. 3559 Page 82
1 of _____________________ County".

2 In instances where it is impossible to ascertain the exact amount of
2

3 the indebtedness sought to be incurred at the time of recording the
3

4 encumbrance, an estimated amount may be used. No purchase order
4

5 shall be valid unless signed by the county purchasing agent and
5

6 certified by the county clerk; and
6

7 4. The county clerk shall file the original purchase order and

8 return three (3) copies to the county purchasing agent who shall
8

9 file a copy, retain a copy for the county road and bridge inventory
9

10 officer if the purchase order is for the purchase of equipment,
10

11 supplies, or materials for the construction or maintenance of roads
11

12 and bridges, and submit the other copy to the receiving officer of
12

13 the requesting department.
13

14 D. 1. The procedure for the purchase of supplies, materials,

15 equipment, and services at public auction or by sealed bid to be
15

16 used by a county shall be as follows:
16

17 a. the county purchasing agent shall prepare a purchase

18 order in quadruplicate and submit it with a copy of

19 the requisition to the county clerk,

20 b. the county clerk shall then encumber the amount stated

21 on the purchase order and assign a sequential number

22 to the purchase order,

23 c. if there is an unencumbered balance in the

24 appropriation made for that purpose by the county

Req. No. 3559 Page 83
1 excise board, the county clerk shall so certify in the

2 following form:

3 "I hereby certify that the amount of this encumbrance

4 has been entered against the designated appropriation

5 accounts and that this encumbrance is within the

6 authorized available balance of the appropriation.

7 Dated this ________ day of ________, 20__.

8 ________________________________

9 County Clerk/Deputy

10 of _____________________ County".

11 In instances where it is impossible to ascertain the

12 exact amount of the indebtedness sought to be incurred

13 at the time of recording the encumbrance, an estimated

14 amount may be used. No purchase order shall be valid

15 unless signed by the county purchasing agent and

16 certified by the county clerk, and

17 d. the county clerk shall file the original purchase

18 order and return three (3) copies to the county

19 purchasing agent who shall file a copy, retain a copy

20 for the county road and bridge inventory officer if

21 the purchase order is for the purchase of equipment,

22 supplies, or materials for the construction or

23 maintenance of roads and bridges, and submit the other

Req. No. 3559 Page 84
1 copy to the receiving officer of the requesting

2 department.

3 2. The procedure for the purchase of supplies, materials, and

4 equipment at a public auction when the purchase will be made with
4

5 the proceeds from the sale of county property at the same public
5

6 auction is as follows:
6

7 a. the purchasing agent shall cause such items being sold

8 to be appraised in the manner determined in Section

9 421.1 of this title,

10 b. the county purchasing agent shall prepare a purchase

11 order in quadruplicate and submit it with a copy of

12 the requisition to the county clerk,

13 c. the county clerk shall then encumber the amount of the

14 appraised value and any additional funds obligated by

15 the county on the purchase order and assign a

16 sequential number to the purchase order,

17 d. the county clerk shall certify that the amount of the

18 encumbrance is equal to the appraised value of the

19 item being sold plus any additional funds obligated by

20 the county. In effect, the recording of the

21 encumbrance is an estimate that is authorized by law.

22 No purchase order shall be valid unless signed by the

23 county purchasing agent and certified by the county

24 clerk,

Req. No. 3559 Page 85
1 e. the county clerk shall file the original purchase

2 order and return three (3) copies to the county

3 purchasing agent who shall file a copy, retain a copy

4 for the county road and bridge inventory officer if

5 the purchase order is for the purchase of equipment,

6 supplies, or materials for the construction or

7 maintenance of roads and bridges, and submit the other

8 copy to the receiving officer of the requesting

9 department, and

10 f. a purchase shall not be bid until such time that the

11 appraised item or items are sold. Any item or items

12 purchased shall not exceed the appraised value plus

13 any additional funds obligated by the county or the

14 actual selling price of the item or items, whichever

15 is the lesser amount.

16 E. The procedure for the receipt of items shall be as follows:

17 1. A receiving officer for the requesting department shall be

18 responsible for receiving all items delivered to that department;
18

19 2. Upon the delivery of an item, the receiving officer shall

20 determine if a purchase order exists for the item being delivered;
20

21 3. If no such purchase order has been provided, the receiving

22 officer shall refuse delivery of the item;
22

23 4. If a purchase order is on file, the receiving officer shall

24 obtain a delivery ticket, bill of lading, or other delivery document
24

Req. No. 3559 Page 86
1 and compare it with the purchase order. If any item is back-
1

2 ordered, the back order and estimated date of delivery shall be
2

3 noted in the receiving report;
3

4 5. The receiving officer shall complete a receiving report in

5 quadruplicate which shall state the quantity and quality of goods
5

6 delivered. The receiving report form shall be prescribed by the
6

7 State Auditor and Inspector. The person delivering the goods shall
7

8 acknowledge the delivery by signature, noting the date and time;
8

9 6. The receiving officer shall file the original receiving

10 report and submit:
10

11 a. a copy of the purchase order and a copy of the

12 receiving report to the county purchasing agent, and

13 b. a copy of the receiving report with the delivery

14 documentation to the county clerk;

15 7. The county purchasing agent shall file a copy of the

16 purchase order and a copy of the receiving report;
16

17 8. Upon receipt of the original receiving report and the

18 delivery documentation, the county clerk shall maintain a file until
18

19 such time as an invoice is received from the vendor;
19

20 9. The invoice shall state the name and address of the vendor

21 and must be sufficiently itemized to clearly describe each item
21

22 purchased, the unit price when applicable, the number or volume of
22

23 each item purchased, the total price, the total purchase price, and
23

24 the date of the purchase;
24

Req. No. 3559 Page 87
1 10. Upon receipt of an invoice, the county clerk shall compare

2 the following documents:
2

3 a. requisition,

4 b. purchase order,

5 c. invoice with noncollusion affidavit as required by

6 law,

7 d. receiving report, and

8 e. delivery document.

9 The documents shall be available for public inspection during
9

10 regular business hours; and
10

11 11. If the documents conform as to the quantity and quality of

12 the items, the county clerk shall prepare a warrant for payment
12

13 according to procedures provided for by law.
13

14 F. The following procedures are for the processing of purchase

15 orders:
15

16 1. The purchasing agent shall be allowed up to three (3) days

17 to process purchase orders to be presented to the board of county
17

18 commissioners for consideration and payment. Nothing herein shall
18

19 prevent the purchasing agent from processing or the board of county
19

20 commissioners from consideration and payment of utilities, travel
20

21 claims, and payroll claims;
21

22 2. The board of county commissioners shall consider the

23 purchase orders so presented and act upon the purchase orders, by
23

24 allowing in full or in part or by holding for further information or
24

Req. No. 3559 Page 88
1 disallowing the same. The disposition of purchase orders shall be
1

2 indicated by the board of county commissioners, showing the amounts
2

3 allowed or disallowed, and shall be signed by at least two members
3

4 of the board of county commissioners. Any claim held over for
4

5 further information shall be acted upon by allowing or disallowing
5

6 same at any future meeting of the board held within seventy-five
6

7 (75) days from the date of filing of the purchase order. Any
7

8 purchase order not acted upon within the seventy-five (75) days from
8

9 the date of filing shall be deemed to have been disallowed, but such
9

10 disallowance shall not prevent the refiling of the purchase order at
10

11 the proper time; and
11

12 3. Whenever any allowance, either in whole or in part, is made

13 upon any purchase order presented to the board of county
13

14 commissioners and is accepted by the person making the claim, such
14

15 allowance shall be a full settlement of the entire purchase order
15

16 and provided that the cashing of warrant shall be considered as
16

17 acceptance by the claimant.
17

18 G. The procedure upon consumption or disposal of supplies,

19 materials, or equipment shall be as follows:
19

20 1. For consumable road or bridge items or materials, a

21 quarterly report of the road and bridge projects completed during
21

22 such period shall be prepared and kept on file by the consuming
22

23 department. The quarterly report may be prepared and kept
23

24 electronically by the consuming department. The report shall
24

Req. No. 3559 Page 89
1 contain a record of the date, the place, and the purpose for the use
1

2 of the road or bridge items or materials. For purposes of
2

3 identifying county bridges, the board of county commissioners shall
3

4 number each bridge subject to its jurisdiction; and
4

5 2. For disposal of all equipment and information technology and

6 telecommunication goods which originally cost more than Five Hundred
6

7 Dollars ($500.00), resolution of disposal shall be submitted by the
7

8 officer on a form prescribed by the Office of the State Auditor and
8

9 Inspector to the board of county commissioners. The approval of the
9

10 resolution of disposal shall be entered into the minutes of the
10

11 board.
11

12 H. Inventory forms and reports shall be retained for not less

13 than two (2) years after all audit requirements for the state and
13

14 federal government have been fulfilled and after any pending
14

15 litigation involving the forms and reports has been resolved.
15

16 I. The procedures provided for in this section shall not apply

17 when a county officer certifies that an emergency exists requiring
17

18 an immediate expenditure of funds. Such an expenditure of funds
18

19 shall not exceed Five Thousand Dollars ($5,000.00). The county
19

20 officer shall give the county purchasing agent a written explanation
20

21 of the emergency. The county purchasing agent shall attach the
21

22 written explanation to the purchase order. The purchases shall be
22

23 paid by attaching a properly itemized invoice, as described in this
23

24 section, to a purchase order which has been prepared by the county
24

Req. No. 3559 Page 90
1 purchasing agent and submitting them to the county clerk for filing,
1

2 encumbering, and consideration for payment by the board of county
2

3 commissioners.
3

4 J. The county purchasing agent may authorize county purchasing

5 officers to make acquisitions through the state purchase card
5

6 program as authorized by the State Purchasing Director in accordance
6

7 with Section 85.5 of Title 74 of the Oklahoma Statutes and defined
7

8 in Section 85.2 of Title 74 of the Oklahoma Statutes. A purchase
8

9 cardholder shall sign a purchase card agreement prior to becoming a
9

10 cardholder and attend purchase card procedure training as required
10

11 by the State Purchasing Director. Complete descriptions of
11

12 purchases made by county government entities shall be published as
12

13 warrants required to be published pursuant to Sections 444 and 445
13

14 of this title.
14

15 K. Nothing in this section shall prohibit counties from

16 providing material and/or services bids on the twelve-month bid list
16

17 to all road and bridge projects and contracts. All non-road and
17

18 bridge related construction contracts shall refer to subsection A of
18

19 Section 103 of Title 61 of the Oklahoma Statutes.
19

20 L. Nothing in this section or under Section 103 of Title 61 of

21 the Oklahoma Statutes shall prohibit counties from requesting and
21

22 entering into interlocal agreements pursuant to the Interlocal
22

23 Cooperation Act for services offered by Circuit Engineering
23

Req. No. 3559 Page 91
1 Districts created under Section 687.1 of Title 69 of the Oklahoma
1

2 Statutes.
2

3 SECTION 29. REPEALER 19 O.S. 2021, Section 1505, as last

4 amended by Section 1, Chapter 66, O.S.L. 2025 (19 O.S. Supp. 2025,
4

5 Section 1505), is hereby repealed.
5

6 SECTION 30. AMENDATORY 22 O.S. 2021, Section 60.4, as

7 last amended by Section 704, Chapter 486, O.S.L. 2025 (22 O.S. Supp.
7

8 2025, Section 60.4), is amended to read as follows:
8

9 Section 60.4. A. 1. A copy of a petition for a protective

10 order, any notice of hearing and a copy of any emergency temporary
10

11 order or emergency ex parte order issued by the court shall be
11

12 served upon the defendant in the same manner as a bench warrant. In
12

13 addition, if the service is to be in another county, the court clerk
13

14 may issue service to the sheriff by facsimile or other electronic
14

15 transmission for service by the sheriff and receive the return of
15

16 service from the sheriff in the same manner. Any fee for service of
16

17 a petition for protective order, notice of hearing, and emergency ex
17

18 parte order shall only be charged pursuant to subsection C of
18

19 Section 60.2 of this title and, if charged, shall be the same as the
19

20 sheriff's service fee plus mileage expenses.
20

21 2. Emergency temporary orders, emergency ex parte orders and

22 notice of hearings shall be given priority for service and can be
22

23 served twenty-four (24) hours a day when the location of the
23

24 defendant is known, including service to the county jail if the
24

Req. No. 3559 Page 92
1 defendant is currently in custody. The initial attempt at service
1

2 shall be made within twenty-four (24) hours of the issuance of the
2

3 order. When service cannot be made upon the defendant by the
3

4 sheriff, the sheriff may contact another law enforcement officer or
4

5 a private investigator or private process server to serve the
5

6 defendant.
6

7 3. An emergency temporary order, emergency ex parte order, a

8 petition for protective order, and a notice of hearing shall have
8

9 statewide validity and may be transferred to any law enforcement
9

10 jurisdiction to effect service upon the defendant. The sheriff may
10

11 transmit the document by electronic means.
11

12 4. The return of service shall be submitted to the sheriff's

13 office or court clerk in the court where the petition, notice of
13

14 hearing or order was issued.
14

15 5. When the defendant is a minor child who is ordered removed

16 from the residence of the victim, in addition to those documents
16

17 served upon the defendant, a copy of the petition, notice of hearing
17

18 and a copy of any temporary order or ex parte order issued by the
18

19 court shall be delivered with the child to the caretaker of the
19

20 place where such child is taken pursuant to Section 2-2-101 of Title
20

21 10A of the Oklahoma Statutes.
21

22 B. 1. Within fourteen (14) days of the filing of the petition

23 for a protective order, the court shall schedule a full hearing on
23

24 the petition, if the court finds sufficient grounds within the scope
24

Req. No. 3559 Page 93
1 of the Protection from Domestic Abuse Act stated in the petition to
1

2 hold such a hearing, regardless of whether an emergency temporary
2

3 order or ex parte order has been previously issued, requested or
3

4 denied. Provided, however, when the defendant is a minor child who
4

5 has been removed from the residence pursuant to Section 2-2-101 of
5

6 Title 10A of the Oklahoma Statutes, the court shall schedule a full
6

7 hearing on the petition within seventy-two (72) hours, regardless of
7

8 whether an emergency temporary order or ex parte order has been
8

9 previously issued, requested or denied.
9

10 2. The court may schedule a full hearing on the petition for a

11 protective order within seventy-two (72) hours when the court issues
11

12 an emergency temporary order or ex parte order suspending child
12

13 visitation rights due to physical violence or threat of abuse.
13

14 3. If service has not been made on the defendant at the time of

15 the hearing, the court shall, at the request of the petitioner,
15

16 issue a new emergency order reflecting a new hearing date and direct
16

17 service to issue.
17

18 4. A petition for a protective order shall, upon the request of

19 the petitioner, renew every fourteen (14) days with a new hearing
19

20 date assigned until the defendant is served. A petition for a
20

21 protective order shall not expire unless the petitioner fails to
21

22 appear at the hearing or fails to request a new order. A petitioner
22

23 may move to dismiss the petition and emergency or final order at any
23

24 time; however, a protective order must be dismissed by court order.
24

Req. No. 3559 Page 94
1 5. Failure to serve the defendant shall not be grounds for

2 dismissal of a petition or an ex parte order unless the victim
2

3 requests dismissal or fails to appear for the hearing thereon.
3

4 6. A final protective order shall be granted or denied within

5 six (6) months of service on the defendant unless all parties agree
5

6 that a temporary protective order remain in effect; provided, a
6

7 victim shall have the right to request a final protective order
7

8 hearing at any time after the passage of six (6) months.
8

9 C. 1. At the hearing, the court may impose any terms and

10 conditions in the protective order that the court reasonably
10

11 believes are necessary to bring about the cessation of domestic
11

12 abuse against the victim or stalking or harassment of the victim or
12

13 the immediate family of the victim but shall not impose any term and
13

14 condition that may compromise the safety of the victim including,
14

15 but not limited to, mediation, couples counseling, family
15

16 counseling, parenting classes or joint victim-offender counseling
16

17 sessions. The court may order the defendant to obtain domestic
17

18 abuse counseling or treatment in a program certified by the Attorney
18

19 General at the expense of the defendant pursuant to Section 644 of
19

20 Title 21 of the Oklahoma Statutes.
20

21 2. If the court grants a protective order and the defendant is

22 a minor child, the court shall order a preliminary inquiry in a
22

23 juvenile proceeding to determine whether further court action
23

Req. No. 3559 Page 95
1 pursuant to the Oklahoma Juvenile Code should be taken against a
1

2 juvenile defendant.
2

3 D. Final protective orders authorized by this section shall be

4 on a standard form developed by the Administrative Office of the
4

5 Courts.
5

6 E. 1. After notice and hearing, protective orders authorized

7 by this section may require the defendant to undergo treatment or
7

8 participate in the court-approved counseling services necessary to
8

9 bring about cessation of domestic abuse against the victim pursuant
9

10 to Section 644 of Title 21 of the Oklahoma Statutes but shall not
10

11 order any treatment or counseling that may compromise the safety of
11

12 the victim including, but not limited to, mediation, couples
12

13 counseling, family counseling, parenting classes or joint victim-
13

14 offender counseling sessions.
14

15 2. The defendant may be required to pay all or any part of the

16 cost of such treatment or counseling services. The court shall not
16

17 be responsible for such cost.
17

18 3. Should the plaintiff choose to undergo treatment or

19 participate in court-approved counseling services for victims of
19

20 domestic abuse, the court may order the defendant to pay all or any
20

21 part of the cost of such treatment or counseling services if the
21

22 court determines that payment by the defendant is appropriate.
22

23 F. When necessary to protect the victim and when authorized by

24 the court, protective orders granted pursuant to the provisions of
24

Req. No. 3559 Page 96
1 this section may be served upon the defendant by a peace officer,
1

2 sheriff, constable, or policeman or other officer whose duty it is
2

3 to preserve the peace, as defined by Section 99 of Title 21 of the
3

4 Oklahoma Statutes.
4

5 G. 1. Any protective order issued on or after November 1,

6 2012, pursuant to subsection C of this section shall be:
6

7 a. for a fixed period not to exceed a period of five (5)

8 years unless extended, modified, vacated or rescinded

9 upon motion by either party or if the court approves

10 any consent agreement entered into by the plaintiff

11 and defendant; provided, if the defendant is

12 incarcerated, the protective order shall remain in

13 full force and effect during the period of

14 incarceration. The period of incarceration, in any

15 jurisdiction, shall not be included in the calculation

16 of the five-year time limitation, or

17 b. continuous upon a specific finding by the court of one

18 of the following:

19 (1) the person has a history of violating the orders

20 of any court or governmental entity,

21 (2) the person has previously been convicted of a

22 violent felony offense,

Req. No. 3559 Page 97
1 (3) the person has a previous felony conviction for

2 stalking as provided in Section 1173 of Title 21

3 of the Oklahoma Statutes,

4 (4) a court order for a final Victim Protection Order

5 has previously been issued against the person in

6 this state or another state, or

7 (5) the victim provides proof that a continuous

8 protective order is necessary for his or her

9 protection.

10 Further, the court may take into consideration whether the person
10

11 has a history of domestic violence or a history of other violent
11

12 acts. The protective order shall remain in effect until modified,
12

13 vacated or rescinded upon motion by either party or if the court
13

14 approves any consent agreement entered into by the plaintiff and
14

15 defendant. If the defendant is incarcerated, the protective order
15

16 shall remain in full force and effect during the period of
16

17 incarceration.
17

18 2. The court shall notify the parties at the time of the

19 issuance of the protective order of the duration of the protective
19

20 order.
20

21 3. Upon the filing of a motion by either party to modify,

22 extend, or vacate a protective order, a hearing shall be scheduled
22

23 and notice given to the parties. At the hearing, the issuing court
23

24 may take such action as is necessary under the circumstances.
24

Req. No. 3559 Page 98
1 4. If a child has been removed from the residence of a parent

2 or custodial adult because of domestic abuse committed by the child,
2

3 the parent or custodial adult may refuse the return of such child to
3

4 the residence unless, upon further consideration by the court in a
4

5 juvenile proceeding, it is determined that the child is no longer a
5

6 threat and should be allowed to return to the residence.
6

7 H. 1. It shall be unlawful for any person to knowingly and

8 willfully seek a protective order against a spouse or ex-spouse
8

9 pursuant to the Protection from Domestic Abuse Act for purposes of
9

10 harassment, undue advantage, intimidation, or limitation of child
10

11 visitation rights in any divorce proceeding or separation action
11

12 without justifiable cause.
12

13 2. The violator shall, upon conviction thereof, be guilty of a

14 misdemeanor punishable by imprisonment in the county jail for a
14

15 period not exceeding one (1) year or by a fine not to exceed Five
15

16 Thousand Dollars ($5,000.00), or by both such fine and imprisonment.
16

17 3. A second or subsequent conviction under this subsection

18 shall be a Class D3 felony offense punishable by imprisonment as
18

19 provided for in subsections B through F of Section 20P of Title 21
19

20 of the Oklahoma Statutes, or by a fine not to exceed Ten Thousand
20

21 Dollars ($10,000.00), or by both such fine and imprisonment.
21

22 I. 1. A protective order issued under the Protection from

23 Domestic Abuse Act shall not in any manner affect title to real
23

24 property, purport to grant to the parties a divorce or otherwise
24

Req. No. 3559 Page 99
1 purport to determine the issues between the parties as to child
1

2 custody, visitation or visitation schedules, child support or
2

3 division of property or any other like relief obtainable pursuant to
3

4 Title 43 of the Oklahoma Statutes, except child visitation orders
4

5 may be temporarily suspended or modified to protect from threats of
5

6 abuse or physical violence by the defendant or a threat to violate a
6

7 custody order. Orders not affecting title may be entered for good
7

8 cause found to protect an animal owned by either of the parties or
8

9 any child living in the household.
9

10 2. When granting any protective order for the protection of a

11 minor child from violence or threats of abuse, the court shall allow
11

12 visitation only under conditions that provide adequate supervision
12

13 and protection to the child while maintaining the integrity of a
13

14 divorce decree or temporary order.
14

15 J. 1. In order to ensure that a petitioner can maintain an

16 existing wireless telephone number or household utility account, the
16

17 court, after providing notice and a hearing, may issue an order
17

18 directing a wireless service provider or public utility provider to
18

19 transfer the billing responsibility for and rights to the wireless
19

20 telephone number or numbers of any minor children in the care of the
20

21 petitioning party or household utility account to the petitioner if
21

22 the petitioner is not the wireless service or public utility account
22

23 holder.
23

Req. No. 3559 Page 100
1 2. The order transferring billing responsibility for and rights

2 to the wireless telephone number or numbers or household utility
2

3 account to the petitioner shall list the name and billing telephone
3

4 number of the account holder, the name and contact information of
4

5 the person to whom the telephone number or numbers or household
5

6 utility account will be transferred and each telephone number or
6

7 household utility to be transferred to that person. The court shall
7

8 ensure that the contact information of the petitioner is not
8

9 provided to the account holder in proceedings held under this
9

10 subsection.
10

11 3. Upon issuance, a copy of the final order of protection shall

12 be transmitted, either electronically or by certified mail, to the
12

13 registered agent of the wireless service provider or public utility
13

14 provider listed with the Secretary of State or Corporation
14

15 Commission of Oklahoma or electronically to the email address
15

16 provided by the wireless service provider or public utility
16

17 provider. Such transmittal shall constitute adequate notice for the
17

18 wireless service provider or public utility provider.
18

19 4. If the wireless service provider or public utility provider

20 cannot operationally or technically effectuate the order due to
20

21 certain circumstances, the wireless service provider or public
21

22 utility provider shall notify the petitioner. Such circumstances
22

23 shall include, but not be limited to, the following:
23

24 a. the account holder has already terminated the account,

Req. No. 3559 Page 101
1 b. the differences in network technology prevent the

2 functionality of a mobile device on the network, or

3 c. there are geographic or other limitations on network

4 or service availability.

5 5. Upon transfer of billing responsibility for and rights to a

6 wireless telephone number or numbers or household utility account to
6

7 the petitioner under the provisions of this subsection by a wireless
7

8 service provider or public utility provider, the petitioner shall
8

9 assume all financial responsibility for the transferred wireless
9

10 telephone number or numbers or household utility account, monthly
10

11 service and utility billing costs and costs for any mobile device
11

12 associated with the wireless telephone number or numbers. The
12

13 wireless service provider or public utility provider shall have the
13

14 right to pursue the original account holder for purposes of
14

15 collecting any past due amounts owed to the wireless service
15

16 provider or public utility provider.
16

17 6. The provisions of this subsection shall not preclude a

18 wireless service provider or public utility provider from applying
18

19 any routine and customary requirements for account establishment to
19

20 the petitioner as part of this transfer of billing responsibility
20

21 for a household utility account or for a wireless telephone number
21

22 or numbers and any mobile devices attached to that number including,
22

23 but not limited to, identification, financial information and
23

24 customer preferences.
24

Req. No. 3559 Page 102
1 7. The provisions of this subsection shall not affect the

2 ability of the court to apportion the assets and debts of the
2

3 parties as provided for in law or the ability to determine the
3

4 temporary use, possession and control of personal property.
4

5 8. No cause of action shall lie against any wireless service

6 provider or public utility provider, its officers, employees or
6

7 agents for actions taken in accordance with the terms of a court
7

8 order issued under the provisions of this subsection.
8

9 9. As used in this subsection:

10 a. "wireless service provider" means a provider of

11 commercial mobile service under Section 332(d) of the

12 federal Telecommunications Act of 1996,

13 b. "public utility provider" means every corporation

14 organized or doing business in this state that owns,

15 operates or manages any plant or equipment for the

16 manufacture, production, transmission, transportation,

17 delivery or furnishing of water, heat or light with

18 gas or electric current for heat, light or power, for

19 public use in this state, and

20 c. "household utility account" shall include utility

21 services for water, heat, light, power or gas that are

22 provided by a public utility provider.

23 K. 1. A court shall not issue any mutual protective orders.

Req. No. 3559 Page 103
1 2. If both parties allege domestic abuse by the other party,

2 the parties shall do so by separate petitions. The court shall
2

3 review each petition separately in an individual or a consolidated
3

4 hearing and grant or deny each petition on its individual merits.
4

5 If the court finds cause to grant both motions, the court shall do
5

6 so by separate orders and with specific findings justifying the
6

7 issuance of each order.
7

8 3. The court may only consolidate a hearing if:

9 a. the court makes specific findings that:

10 (1) sufficient evidence exists of domestic abuse,

11 stalking, harassment or rape against each party,

12 and

13 (2) each party acted primarily as aggressors,

14 b. the defendant filed a petition with the court for a

15 protective order no less than three (3) days, not

16 including weekends or holidays, prior to the first

17 scheduled full hearing on the petition filed by the

18 plaintiff, and

19 c. the defendant had no less than forty-eight (48) hours

20 of notice prior to the full hearing on the petition

21 filed by the plaintiff.

22 L. The court may allow a plaintiff or victim to be accompanied

23 by a victim support person at court proceedings. A victim support
23

24 person shall not make legal arguments; however, a victim support
24

Req. No. 3559 Page 104
1 person who is not a licensed attorney may offer the plaintiff or
1

2 victim comfort or support and may remain in close proximity to the
2

3 plaintiff or victim.
3

4 SECTION 31. REPEALER 22 O.S. 2021, Section 60.4, as last

5 amended by Section 1, Chapter 40, O.S.L. 2025 (22 O.S. Supp. 2025,
5

6 Section 60.4), is hereby repealed.
6

7 SECTION 32. AMENDATORY 22 O.S. 2021, Section 60.6, as

8 amended by Section 474, Chapter 486, O.S.L. 2025 (22 O.S. Supp.
8

9 2025, Section 60.6), is amended to read as follows:
9

10 Section 60.6. A. Except as otherwise provided by this section,

11 any person who:
11

12 1. Has been served with an emergency temporary, ex parte or

13 final protective order or foreign protective order and is in
13

14 violation of such protective order, upon conviction, shall be guilty
14

15 of a misdemeanor and shall be punished by a fine of not more than
15

16 One Thousand Dollars ($1,000.00) or by a term of imprisonment in the
16

17 county jail of not more than one (1) year, or by both such fine and
17

18 imprisonment; and
18

19 2. After a previous conviction of a violation of a protective

20 order, is convicted of a second or subsequent offense pursuant to
20

21 the provisions of this section shall, upon conviction, be guilty of
21

22 a Class D1 felony offense and shall be punished by a term of
22

23 imprisonment as provided for in subsections B through F of Section
23

24 20N of Title 21 of the Oklahoma Statutes, or by a fine of not less
24

Req. No. 3559 Page 105
1 than Two Thousand Dollars ($2,000.00) nor more than Ten Thousand
1

2 Dollars ($10,000.00), or by both such fine and imprisonment.
2

3 B. 1. Any person who has been served with an emergency

4 temporary, ex parte or final protective order or foreign protective
4

5 order who violates the protective order and causes physical injury
5

6 or physical impairment to the plaintiff or to any other person named
6

7 in said protective order shall, upon conviction, be guilty of a
7

8 misdemeanor and shall be punished by a term of imprisonment in the
8

9 county jail for not less than twenty (20) days nor more than one (1)
9

10 year. In addition to the term of imprisonment, the person may be
10

11 punished by a fine not to exceed Five Thousand Dollars ($5,000.00).
11

12 2. Any person who is convicted of a second or subsequent

13 violation of a protective order which causes physical injury or
13

14 physical impairment to a plaintiff or to any other person named in
14

15 the protective order shall be guilty of a Class D1 felony offense
15

16 and shall be punished by a term of imprisonment in the custody of
16

17 the Department of Corrections of not less than one (1) year nor more
17

18 than five (5) years, or by a fine of not less than Three Thousand
18

19 Dollars ($3,000.00) nor more than Ten Thousand Dollars ($10,000.00),
19

20 or by both such fine and imprisonment.
20

21 3. In determining the term of imprisonment required by this

22 section, the jury or sentencing judge shall consider the degree of
22

23 physical injury or physical impairment to the victim.
23

Req. No. 3559 Page 106
1 4. The provisions of this subsection shall not affect the

2 applicability of Sections 644, 645, 647 and 652 of Title 21 of the
2

3 Oklahoma Statutes.
3

4 C. The minimum sentence of imprisonment issued pursuant to the

5 provisions of paragraph 2 of subsection A and paragraph 2 of
5

6 subsection B of this section shall not be subject to statutory
6

7 provisions for suspended sentences, deferred sentences or probation,
7

8 provided the court may subject any remaining penalty under the
8

9 jurisdiction of the court to the statutory provisions for suspended
9

10 sentences, deferred sentences or probation.
10

11 D. In addition to any other penalty specified by this section,

12 the court shall require a defendant to undergo the treatment or
12

13 participate in the counseling services necessary to bring about the
13

14 cessation of domestic abuse against the victim or to bring about the
14

15 cessation of stalking or harassment of the victim. For every
15

16 conviction of violation of a protective order:
16

17 1. The court shall specifically order as a condition of a

18 suspended sentence or probation that a defendant participate in
18

19 counseling or undergo treatment to bring about the cessation of
19

20 domestic abuse as specified in paragraph 2 of this subsection;
20

21 2. a. The court shall require the defendant to participate

22 in counseling or undergo treatment for domestic abuse

23 by an individual licensed practitioner or a domestic

24 abuse treatment program certified by the Attorney

Req. No. 3559 Page 107
1 General. If the defendant is ordered to participate

2 in a domestic abuse counseling or treatment program,

3 the order shall require the defendant to attend the

4 program for a minimum of fifty-two (52) weeks,

5 complete the program, and be evaluated before and

6 after attendance of the program by a program counselor

7 or a private counselor.

8 b. A program for anger management, couples counseling, or

9 family and marital counseling shall not solely qualify

10 for the counseling or treatment requirement for

11 domestic abuse pursuant to this subsection. The

12 counseling may be ordered in addition to counseling

13 specifically for the treatment of domestic abuse or

14 per evaluation as set forth below. If, after

15 sufficient evaluation and attendance at required

16 counseling sessions, the domestic violence treatment

17 program or licensed professional determines that the

18 defendant does not evaluate as a perpetrator of

19 domestic violence or does evaluate as a perpetrator of

20 domestic violence and should complete other programs

21 of treatment simultaneously or prior to domestic

22 violence treatment, including but not limited to

23 programs related to the mental health, apparent

24 substance or alcohol abuse or inability or refusal to

Req. No. 3559 Page 108
1 manage anger, the defendant shall be ordered to

2 complete the counseling as per the recommendations of

3 the domestic violence treatment program or licensed

4 professional;

5 3. a. The court shall set a review hearing no more than one

6 hundred twenty (120) days after the defendant is

7 ordered to participate in a domestic abuse counseling

8 program or undergo treatment for domestic abuse to

9 assure the attendance and compliance of the defendant

10 with the provisions of this subsection and the

11 domestic abuse counseling or treatment requirements.

12 b. The court shall set a second review hearing after the

13 completion of the counseling or treatment to assure

14 the attendance and compliance of the defendant with

15 the provisions of this subsection and the domestic

16 abuse counseling or treatment requirements. The court

17 may suspend sentencing of the defendant until the

18 defendant has presented proof to the court of

19 enrollment in a program of treatment for domestic

20 abuse by an individual licensed practitioner or a

21 domestic abuse treatment program certified by the

22 Attorney General and attendance at weekly sessions of

23 such program. Such proof shall be presented to the

24 court by the defendant no later than one hundred

Req. No. 3559 Page 109
1 twenty (120) days after the defendant is ordered to

2 such counseling or treatment. At such time, the court

3 may complete sentencing, beginning the period of the

4 sentence from the date that proof of enrollment is

5 presented to the court, and schedule reviews as

6 required by subparagraphs a and b of this paragraph

7 and paragraphs 4 and 5 of this subsection. The court

8 shall retain continuing jurisdiction over the

9 defendant during the course of ordered counseling

10 through the final review hearing;

11 4. The court may set subsequent or other review hearings as the

12 court determines necessary to assure the defendant attends and fully
12

13 complies with the provisions of this subsection and the domestic
13

14 abuse counseling or treatment requirements;
14

15 5. At any review hearing, if the defendant is not

16 satisfactorily attending individual counseling or a domestic abuse
16

17 counseling or treatment program or is not in compliance with any
17

18 domestic abuse counseling or treatment requirements, the court may
18

19 order the defendant to further or continue counseling, treatment, or
19

20 other necessary services. The court may revoke all or any part of a
20

21 suspended sentence, deferred sentence, or probation pursuant to
21

22 Section 991b of this title and subject the defendant to any or all
22

23 remaining portions of the original sentence;
23

Req. No. 3559 Page 110
1 6. At the first review hearing, the court shall require the

2 defendant to appear in court. Thereafter, for any subsequent review
2

3 hearings, the court may accept a report on the progress of the
3

4 defendant from individual counseling, domestic abuse counseling, or
4

5 the treatment program. There shall be no requirement for the victim
5

6 to attend review hearings; and
6

7 7. If funding is available, a referee may be appointed and

8 assigned by the presiding judge of the district court to hear
8

9 designated cases set for review under this subsection. Reasonable
9

10 compensation for the referees shall be fixed by the presiding judge.
10

11 The referee shall meet the requirements and perform all duties in
11

12 the same manner and procedure as set forth in Sections 1-8-103 and
12

13 2-2-702 of Title 10A of the Oklahoma Statutes pertaining to referees
13

14 appointed in juvenile proceedings.
14

15 E. Emergency temporary, ex parte and final protective orders

16 shall include notice of these penalties.
16

17 F. When a minor child violates the provisions of any protective

18 order, the violation shall be heard in a juvenile proceeding and the
18

19 court may order the child and the parent or parents of the child to
19

20 participate in family counseling services necessary to bring about
20

21 the cessation of domestic abuse against the victim and may order
21

22 community service hours to be performed in lieu of any fine or
22

23 imprisonment authorized by this section.
23

Req. No. 3559 Page 111
1 G. Any district court of this state and any judge thereof shall

2 be immune from any liability or prosecution for issuing an order
2

3 that requires a defendant to:
3

4 1. Attend a treatment program for domestic abusers certified by

5 the Attorney General;
5

6 2. Attend counseling or treatment services ordered as part of

7 any final protective order or for any violation of a protective
7

8 order; and
8

9 3. Attend, complete, and be evaluated before and after

10 attendance by a treatment program for domestic abusers certified by
10

11 the Attorney General.
11

12 H. At no time, under any proceeding, may a person protected by

13 a protective order be held to be in violation of that protective
13

14 order. Only a defendant against whom a protective order has been
14

15 issued may be held to have violated the order.
15

16 I. In addition to any other penalty specified by this section,

17 the court may order a defendant to use an active, real-time, twenty-
17

18 four-hour Global Positioning System (GPS) monitoring device as a
18

19 condition of a sentence. The court may further order the defendant
19

20 to pay costs and expenses related to the GPS device and monitoring.
20

21 J. Any pleas of guilty or nolo contendere or finding of guilt

22 to a violation of any provision of this section shall constitute a
22

23 conviction of the offense for the purpose of any subsection of this
23

24 section under which the existence of a prior conviction is relevant
24

Req. No. 3559 Page 112
1 for a period of ten (10) years following the completion of any
1

2 sentence or court imposed probationary term.
2

3 SECTION 33. REPEALER 22 O.S. 2021, Section 60.6, as

4 amended by Section 2, Chapter 145, O.S.L. 2025 (22 O.S. Supp. 2025,
4

5 Section 60.6), is hereby repealed.
5

6 SECTION 34. AMENDATORY 22 O.S. 2021, Section 152, as

7 last amended by Section 1, Chapter 115, O.S.L. 2025 (22 O.S. Supp.
7

8 2025, Section 152), is amended to read as follows:
8

9 Section 152. A. Prosecutions for the crimes of bribery,

10 embezzlement of public money, bonds, securities, assets or property
10

11 of the state or any county, school district, municipality or other
11

12 subdivision thereof, or of any misappropriation of public money,
12

13 bonds, securities, assets or property of the state or any county,
13

14 school district, municipality or other subdivision thereof,
14

15 falsification of public records of the state or any county, school
15

16 district, municipality or other subdivision thereof, and conspiracy
16

17 to defraud the State of Oklahoma or any county, school district,
17

18 municipality or other subdivision thereof in any manner or for any
18

19 purpose shall be commenced within seven (7) years after the
19

20 discovery of the crime; provided, however, prosecutions for the
20

21 crimes of embezzlement or misappropriation of public money, bonds,
21

22 securities, assets or property of any school district, including
22

23 those relating to student activity funds, or the crime of
23

24 falsification of public records of any independent school district,
24

Req. No. 3559 Page 113
1 the crime of criminal conspiracy, the crime of embezzlement pursuant
1

2 to Sections 1451 through 1461 of Title 21 of the Oklahoma Statutes,
2

3 the crime of False Personation or Identity Theft pursuant to
3

4 Sections 1531 through 1533.3 of Title 21 of the Oklahoma Statutes,
4

5 the financial exploitation of a vulnerable adult pursuant to
5

6 Sections 843.1, 843.3 and 843.4 of Title 21 of the Oklahoma
6

7 Statutes, or Medicaid fraud pursuant to Section 1005 of Title 56 of
7

8 the Oklahoma Statutes, shall be commenced within five (5) years
8

9 after the discovery of the crime.
9

10 B. Prosecutions for criminal violations of any state income tax

11 laws shall be commenced within five (5) years after the commission
11

12 of such violation.
12

13 C. 1. Prosecutions for sexual crimes against children,

14 specifically rape or forcible sodomy, sodomy, lewd or indecent
14

15 proposals or acts against children, involving minors in pornography
15

16 pursuant to Section 886, 888, 1111, 1111.1, 1113, 1114, 1021.2,
16

17 1021.3, 1040.12a or 1123 of Title 21 of the Oklahoma Statutes, any
17

18 offense prohibited by Section 843.5 of Title 21 of the Oklahoma
18

19 Statutes, sexual abuse of a vulnerable adult pursuant to Section
19

20 843.1 of Title 21 of the Oklahoma Statutes, child trafficking
20

21 pursuant to Section 866 of Title 21 of the Oklahoma Statutes,
21

22 nonconsensual dissemination of private sexual images pursuant to
22

23 Section 1040.13b of Title 21, and failure to report abuse or neglect
23

24 pursuant to Section 1-2-101 of Title 10A of the Oklahoma Statutes
24

Req. No. 3559 Page 114
1 shall be commenced by the forty-fifth birthday of the alleged
1

2 victim. Prosecutions for such crimes committed against victims
2

3 eighteen (18) years of age or older, and sexual abuse of a
3

4 vulnerable adult pursuant to Section 843.1 of Title 21 of the
4

5 Oklahoma Statutes, shall be commenced within twenty (20) years after
5

6 the discovery of the crime. As used in this paragraph, "discovery"
6

7 means the date that a physical or sexually related crime involving a
7

8 victim eighteen (18) years of age or older is reported to a law
8

9 enforcement agency. Any offense for which the prosecution is not
9

10 time-barred upon the effective date of this act shall be
10

11 retroactively subject to the provisions of this subsection.
11

12 2. However, prosecutions for the crimes listed in paragraph 1

13 of this subsection may be commenced at any time after the commission
13

14 of the offense if:
14

15 a. physical evidence is collected and preserved that is

16 capable of being tested to obtain a profile from

17 deoxyribonucleic acid (DNA), and

18 b. probable cause as to the identity of the offender is

19 subsequently established through the use of a DNA

20 profile using evidence listed in subparagraph a of

21 this paragraph, or

22 c. the accused person has provided a confession or

23 admission related to the crime.

Req. No. 3559 Page 115
1 3. No prosecution under this subsection shall be based upon the

2 memory of the victim that has been recovered through psychotherapy
2

3 unless there is some evidence independent of such repressed memory.
3

4 4. Any person who knowingly and willfully makes a false claim

5 pursuant to this subsection or a claim that the person knows lacks
5

6 factual foundation may be reported to local law enforcement for
6

7 criminal investigation and, upon conviction, shall be guilty of a
7

8 felony.
8

9 D. Prosecutions for criminal violations of any provision of the

10 Oklahoma Wildlife Conservation Code shall be commenced within three
10

11 (3) years after the commission of such offense.
11

12 E. Prosecutions for the crime of criminal fraud or workers'

13 compensation fraud pursuant to Section 1541.1, 1541.2, 1662 or 1663
13

14 of Title 21 of the Oklahoma Statutes shall commence within three (3)
14

15 years after the discovery of the crime, but in no event greater than
15

16 seven (7) years after the commission of the crime.
16

17 F. Prosecution for the crime of false or bogus check pursuant

18 to Section 1541.1, 1541.2, 1541.3 or 1541.4 of Title 21 of the
18

19 Oklahoma Statutes shall be commenced within five (5) years after the
19

20 commission of such offense.
20

21 G. Prosecution for the crime of solicitation for murder in the

22 first degree pursuant to Section 701.16 of Title 21 of the Oklahoma
22

23 Statutes shall be commenced within seven (7) years after the
23

24 discovery of the crime. For purposes of this subsection,
24

Req. No. 3559 Page 116
1 "discovery" means the date upon which the crime is made known to
1

2 anyone other than a person involved in the solicitation.
2

3 H. In all other cases a prosecution for a public offense must

4 be commenced within three (3) years after its commission.
4

5 I. Prosecution for the crime of accessory after the fact must

6 be commenced within the same statute of limitations as that of the
6

7 felony for which the person acted as an accessory.
7

8 J. Prosecution for the crime of arson pursuant to Section 1401,

9 1402, 1403, 1404 or 1405 of Title 21 of the Oklahoma Statutes shall
9

10 be commenced within seven (7) years after the commission of the
10

11 crime.
11

12 K. Prosecutions for criminal violations in which a deadly

13 weapon is used to commit a felony or prosecutions for criminal
13

14 violations in which a deadly weapon is used in an attempt to commit
14

15 a felony shall be commenced within seven (7) years after the
15

16 commission of the crime.
16

17 L. Prosecutions for the crime of human trafficking pursuant to

18 Section 748 of Title 21 of the Oklahoma Statutes shall be commenced
18

19 within three (3) years after discovery of the crime. For purposes
19

20 of this subsection, "discovery" means the date upon which the crime
20

21 is reported to a law enforcement agency.
21

22 SECTION 35. REPEALER 22 O.S. 2021, Section 152, as last

23 amended by Section 1, Chapter 310, O.S.L. 2024 (22 O.S. Supp. 2025,
23

24 Section 152), is hereby repealed.
24

Req. No. 3559 Page 117
1 SECTION 36. AMENDATORY 47 O.S. 2021, Section 6-101, as

2 last amended by Section 3, Chapter 330, O.S.L. 2025 (47 O.S. Supp.
2

3 2025, Section 6-101), is amended to read as follows:
3

4 Section 6-101. A. No person, except those hereinafter

5 expressly exempted in Sections 6-102 and 6-102.1 of this title,
5

6 shall operate any motor vehicle upon a highway in this state unless
6

7 the person has a valid Oklahoma driver license for the class of
7

8 vehicle being operated under the provisions of this title. No
8

9 person shall be permitted to possess more than one valid license at
9

10 any time, except as provided in paragraph 4 of subsection F of this
10

11 section.
11

12 B. 1. No person shall operate a Class A commercial motor

13 vehicle unless the person is eighteen (18) years of age or older and
13

14 holds a valid Class A commercial license, except as provided in
14

15 paragraph 5 of this subsection and subsection F of this section.
15

16 Any person holding a valid Class A commercial license shall be
16

17 permitted to operate motor vehicles in Classes A, B, C and D, except
17

18 as provided for in paragraph 4 of this subsection.
18

19 2. No person shall operate a Class B commercial motor vehicle

20 unless the person is eighteen (18) years of age or older and holds a
20

21 valid Class B commercial license, except as provided in paragraph 5
21

22 of subsection F of this section. Any person holding a valid Class B
22

23 commercial license shall be permitted to operate motor vehicles in
23

Req. No. 3559 Page 118
1 Classes B, C and D, except as provided for in paragraph 4 of this
1

2 subsection.
2

3 3. No person shall operate a Class C commercial motor vehicle

4 unless the person is eighteen (18) years of age or older and holds a
4

5 valid Class C commercial license, except as provided in subsection F
5

6 of this section. Any person holding a valid Class C commercial
6

7 license shall be permitted to operate motor vehicles in Classes C
7

8 and D, except as provided for in paragraph 4 of this subsection.
8

9 4. No person under twenty-one (21) years of age shall be

10 licensed to operate any motor vehicle which is required to be
10

11 placarded for hazardous materials pursuant to 49 C.F.R., Part 172,
11

12 subpart F, except as provided in subsection F of this section;
12

13 provided, a person eighteen (18) years of age or older may be
13

14 licensed to operate a farm vehicle which is required to be placarded
14

15 for hazardous materials pursuant to 49 C.F.R., Part 172, subpart F,
15

16 except as provided in subsection F of this section.
16

17 5. A person at least seventeen (17) years of age who

18 successfully completes all examinations required by law may be
18

19 issued by Service Oklahoma:
19

20 a. a restricted Class A commercial license which shall

21 grant to the licensee the privilege to operate a Class

22 A or Class B commercial motor vehicle for harvest

23 purposes or a Class D motor vehicle, or

Req. No. 3559 Page 119
1 b. a restricted Class B commercial license which shall

2 grant to the licensee the privilege to operate a Class

3 B commercial motor vehicle for harvest purposes or a

4 Class D motor vehicle.

5 6. No person shall operate a Class D motor vehicle unless the

6 person is sixteen (16) years of age or older and holds a valid Class
6

7 D license, except as provided for in Section 6-102 or 6-105 of this
7

8 title. Any person holding a valid Class D license shall be
8

9 permitted to operate motor vehicles in Class D only.
9

10 C. Any person issued a driver license pursuant to this section

11 may exercise the privilege thereby granted upon all streets and
11

12 highways in this state.
12

13 D. No person shall operate a motorcycle or motor-driven cycle

14 without having a valid Class A, B, C or D license with a motorcycle
14

15 endorsement. Except as otherwise provided by law, any new applicant
15

16 for an original driver license shall be required to successfully
16

17 complete a written examination, vision examination and driving
17

18 examination for a motorcycle as prescribed by the Department of
18

19 Public Safety, in conjunction with Service Oklahoma, and a certified
19

20 state-approved motorcycle basic rider course approved by the
20

21 Department, in conjunction with Service Oklahoma, if the applicant
21

22 is seventeen (17) years of age or younger to be eligible for a
22

23 motorcycle endorsement thereon. The written examination and driving
23

24 examination for a motorcycle shall be waived by Service Oklahoma
24

Req. No. 3559 Page 120
1 upon verification that the person has successfully completed a
1

2 certified Motorcycle Safety Foundation rider course approved by the
2

3 Department, in conjunction with Service Oklahoma.
3

4 E. Except as otherwise provided by law, any person who lawfully

5 possesses a valid Oklahoma driver license which is eligible for
5

6 renewal shall be required to successfully complete a written
6

7 examination, vision examination and driving examination for a
7

8 motorcycle as prescribed by the Department, in conjunction with
8

9 Service Oklahoma, and a certified state-approved motorcycle basic
9

10 rider course approved by the Department, in conjunction with Service
10

11 Oklahoma, if the person is seventeen (17) years of age or younger to
11

12 be eligible for a motorcycle endorsement. The written examination
12

13 and driving examination for a motorcycle shall be waived by Service
13

14 Oklahoma upon verification that the person has successfully
14

15 completed a certified Motorcycle Safety Foundation rider course
15

16 approved by the Department, in conjunction with Service Oklahoma.
16

17 F. 1. Any person eighteen (18) years of age or older may apply

18 for a restricted Class A, B or C commercial learner permit. Service
18

19 Oklahoma, after the applicant has passed all parts of the
19

20 examination for a Class D license and has successfully passed all
20

21 parts of the examination for a Class A, B or C commercial license
21

22 other than the driving examination, may issue to the applicant a
22

23 commercial learner permit which shall entitle the person having
23

24 immediate lawful possession of the commercial learner permit and a
24

Req. No. 3559 Page 121
1 valid Oklahoma driver license or provisional driver license pursuant
1

2 to Section 6-212 of this title to operate a Class A, B or C
2

3 commercial motor vehicle upon the public highways solely for the
3

4 purpose of behind-the-wheel training in accordance with rules
4

5 promulgated by the Department.
5

6 2. This commercial learner permit shall be issued for a period

7 as provided in Section 6-115 of this title of one (1) year;
7

8 provided, such commercial learner permit may be suspended, revoked,
8

9 canceled, denied or disqualified at the discretion of the
9

10 Department, with notice to Service Oklahoma, for violation of the
10

11 restrictions, for failing to give the required or correct
11

12 information on the application or for violation of any traffic laws
12

13 of this state pertaining to the operation of a motor vehicle.
13

14 Except as otherwise provided, the lawful possessor of a commercial
14

15 learner permit who has been issued a commercial learner permit for a
15

16 minimum of fourteen (14) days may have the restriction requiring an
16

17 accompanying driver removed by satisfactorily completing a driver's
17

18 examination; provided, the removal of a restriction shall not
18

19 authorize the operation of a Class A, B or C commercial motor
19

20 vehicle if such operation is otherwise prohibited by law.
20

21 3. No person shall apply for and Service Oklahoma shall not

22 issue an original Class A, B or C driver license until the person
22

23 has been issued a commercial learner permit and held the permit for
23

24 at least fourteen (14) days. Any person who currently holds a Class
24

Req. No. 3559 Page 122
1 B or C license and who wishes to apply for another class of
1

2 commercial driver license shall be required to apply for a
2

3 commercial learner permit and to hold the permit for at least
3

4 fourteen (14) days before applying for the Class A or B license, as
4

5 applicable. Any person who currently holds a Class A, B or C
5

6 license and who wishes to add an endorsement or remove a restriction
6

7 for which a skills examination is required shall be required to
7

8 apply for a commercial learner permit and to hold the permit for at
8

9 least fourteen (14) days before applying for the endorsement.
9

10 4. A commercial learner permit shall be issued by Service

11 Oklahoma as a separate and unique document which shall be valid only
11

12 in conjunction with a valid Oklahoma driver license or provisional
12

13 driver license pursuant to Section 6-212 of this title, both of
13

14 which shall be in the possession of the person to whom they have
14

15 been issued whenever that person is operating a commercial motor
15

16 vehicle as provided in this subsection.
16

17 5. After one renewal of a commercial learner permit, as

18 provided in paragraph 2 of this subsection, a commercial permit
18

19 shall not be renewed again. Any person who has held a commercial
19

20 learner permit for the initial issuance period and one renewal
20

21 period shall not be eligible for and Service Oklahoma shall not
21

22 issue another renewal of the permit; provided, the person may
22

23 reapply for a new commercial learner permit, as provided for in this
23

24 subsection.
24

Req. No. 3559 Page 123
1 G. 1. For purposes of this title:

2 a. "REAL ID Compliant Driver License" or "Identification

3 Card" means a driver license or identification card

4 issued by this state that has been certified by the

5 United States Department of Homeland Security (USDHS)

6 as compliant with the requirements of the REAL ID Act

7 of 2005, Public Law No. 109-13. A REAL ID Compliant

8 Driver License or Identification Card and the process

9 through which it is issued incorporate a variety of

10 security measures designed to protect the integrity

11 and trustworthiness of the license or card. A REAL ID

12 Compliant Driver License or Identification Card will

13 be clearly marked on the face indicating that it is a

14 compliant document, and

15 b. "REAL ID Noncompliant Driver License" or

16 "Identification Card" means a driver license or

17 identification card issued by this state that has not

18 been certified by the United States Department of

19 Homeland Security (USDHS) as being compliant with the

20 requirements of the REAL ID Act of 2005. A REAL ID

21 Noncompliant Driver License or Identification Card

22 will be clearly marked on the face indicating that it

23 is not compliant with the federal REAL ID Act of 2005

24 and is not acceptable for official federal purposes.

Req. No. 3559 Page 124
1 The driver license or identification card will have a

2 unique design or color indicator that clearly

3 distinguishes it from a compliant license or card.

4 2. Original Driver License and Identification Card Issuance:

5 a. Application for an original REAL ID Compliant or REAL

6 ID Noncompliant Driver License or Identification Card

7 shall be made to Service Oklahoma or a licensed

8 operator provided such licensed operator is authorized

9 to process application for REAL ID Compliant Driver

10 Licenses and Identification Cards. Application for a

11 REAL ID Noncompliant Driver License or Identification

12 Card shall be made to Service Oklahoma.

13 b. Service Oklahoma employees or authorized licensed

14 operators shall perform all document recognition and

15 other requirements needed for approval of an original

16 REAL ID Compliant Driver License or Identification

17 Card application. Service Oklahoma employees shall

18 perform all document recognition and other

19 requirements needed for approval of a REAL ID

20 Noncompliant Driver License or Identification Card

21 application.

22 c. Upon approval of an original REAL ID Compliant or REAL

23 ID Noncompliant Driver License or Identification Card

24 application, the applicant may take the approved

Req. No. 3559 Page 125
1 application document to a licensed operator to receive

2 a temporary driver license or identification card.

3 d. The licensed operator shall process the approved REAL

4 ID Compliant or REAL ID Noncompliant Driver License or

5 Identification Card application and upon payment shall

6 provide the applicant a temporary driver license or

7 identification card. A temporary driver license or

8 identification card shall afford the holder the

9 privileges otherwise granted by the specific class of

10 driver license or identification card for the period

11 of time listed on the temporary driver license or

12 identification card or the period of time prior to the

13 applicant receiving a REAL ID Compliant or REAL ID

14 Noncompliant Driver License or Identification Card,

15 whichever time period is shorter.

16 3. REAL ID Compliant Driver License and Identification Card

17 Renewal and Replacement:
17

18 a. Application for renewal or replacement of a REAL ID

19 Compliant Driver License or Identification Card may be

20 made to Service Oklahoma or to a licensed operator;

21 provided, such licensed operator is authorized to

22 process application for REAL ID Compliant Driver

23 Licenses and Identification Cards. A licensed

24 operator may process the voluntary downgrade of a REAL

Req. No. 3559 Page 126
1 ID Compliant Commercial Driver License to any lower

2 class license upon request of the licensee; provided,

3 no additional endorsements or restrictions are placed

4 on the license.

5 b. Service Oklahoma employees or authorized licensed

6 operators shall perform all document recognition and

7 other requirements needed for approval of a renewal or

8 replacement REAL ID Compliant Driver License or

9 Identification Card application.

10 c. Upon approval of a renewal or replacement REAL ID

11 Compliant Driver License or Identification Card

12 application, the applicant may receive a temporary

13 driver license or identification card from Service

14 Oklahoma or an authorized licensed operator.

15 d. A temporary driver license or identification card

16 acquired under the provisions of this paragraph shall

17 afford the holder the privileges otherwise granted by

18 the specific class of driver license or identification

19 card being renewed or replaced for the period of time

20 listed on the temporary driver license or

21 identification card or the period of time prior to the

22 applicant receiving a REAL ID Compliant Driver License

23 or Identification Card, whichever time period is

24 shorter.

Req. No. 3559 Page 127
1 e. For purposes of this title, an application for a REAL

2 ID Compliant Driver License or Identification Card by

3 an individual with a valid Oklahoma-issued driver

4 license or identification card shall be considered a

5 renewal of a REAL ID Compliant Driver License or

6 Identification Card.

7 4. REAL ID Noncompliant Driver License and Identification Card

8 Renewal and Replacement:
8

9 a. Application for renewal or replacement of a REAL ID

10 Noncompliant Driver License or Identification Card may

11 be made to Service Oklahoma or to a licensed operator.

12 A licensed operator may process the voluntary

13 downgrade of a REAL ID Noncompliant Commercial Driver

14 License to any lower class license upon request of the

15 licensee; provided, no additional endorsements or

16 restrictions are added to the license.

17 b. Service Oklahoma employees or licensed operators shall

18 perform all document recognition and other

19 requirements needed for approval of a renewal or

20 replacement REAL ID Noncompliant Driver License or

21 Identification Card application.

22 c. Upon approval of a renewal or replacement REAL ID

23 Noncompliant Driver License or Identification Card

24 application, the applicant may receive a temporary

Req. No. 3559 Page 128
1 driver license or identification card from Service

2 Oklahoma or a licensed operator.

3 d. A temporary driver license or identification card

4 acquired under the provisions of this paragraph shall

5 afford the holder the privileges otherwise granted by

6 the specific class of driver license or identification

7 card being renewed or replaced for the period of time

8 listed on the temporary driver license or

9 identification card or the period of time prior to the

10 applicant receiving a REAL ID Noncompliant Driver

11 License or Identification Card, whichever time period

12 is shorter.

13 H. 1. The fee charged for an approved application for an

14 original Oklahoma REAL ID Compliant or REAL ID Noncompliant Driver
14

15 License or an approved application for the addition of an
15

16 endorsement to a current valid Oklahoma REAL ID Compliant or REAL ID
16

17 Noncompliant Driver License shall be assessed in accordance with the
17

18 following schedule:
18

19 Class A Commercial Learner

20 Permit $25.00

21 Class A Commercial License $25.00

22 Class B Commercial Learner

23 Permit $15.00

24 Class B Commercial License $15.00

Req. No. 3559 Page 129
1 Class C Commercial Learner

2 Permit $15.00

3 Class C Commercial License $15.00

4 Class D License $ 4.00

5 Motorcycle Endorsement $ 4.00

6 2. Notwithstanding the provisions of Section 1104 of this

7 title, all monies collected from the fees charged for Class A, B and
7

8 C commercial licenses pursuant to the provisions of this subsection
8

9 shall be deposited by Service Oklahoma in the General Revenue Fund
9

10 of this state.
10

11 I. The fee charged for any failed examination shall be Four

12 Dollars ($4.00) for any license classification. Notwithstanding the
12

13 provisions of Section 1104 of this title, all monies collected from
13

14 such examination fees pursuant to the provisions of this subsection
14

15 shall be deposited in the General Revenue Fund of this state.
15

16 J. In addition to any fee charged pursuant to the provisions of

17 subsection H of this section, the fee charged for the issuance or
17

18 renewal of a REAL ID Noncompliant Driver License shall be in
18

19 accordance with the following schedule; provided, that any applicant
19

20 who has a CDL Learner Permit shall be charged only the replacement
20

21 fee for the issuance of the license:
21

22 License Class 4-year 8-year

23 Class A Commercial Learner

24 Permit $56.50 $113.00

Req. No. 3559 Page 130
1 Class A Commercial License $56.50 $113.00

2 Class B Commercial Learner

3 Permit $56.50 $113.00

4 Class B Commercial License $56.50 $113.00

5 Class C Commercial Learner

6 Permit $46.50 $93.00

7 Class C Commercial License $46.50 $93.00

8 Class D License $38.50 $77.00

9 K. In addition to any fee charged pursuant to the provisions of

10 subsection H of this section, the fee charged for the issuance or
10

11 renewal of a REAL ID Compliant Driver License shall be in accordance
11

12 with the following schedule; provided, that any applicant who has a
12

13 CDL Learner Permit shall be charged only the replacement fee for the
13

14 issuance of the license:
14

15 License Class 4-year 8-year

16 REAL ID Compliant Class A

17 Commercial Learner Permit $56.50 $113.00

18 REAL ID Compliant Class A

19 Commercial License $56.50 $113.00

20 REAL ID Compliant Class B

21 Commercial Learner Permit $56.50 $113.00

22 REAL ID Compliant Class B

23 Commercial License $56.50 $113.00

Req. No. 3559 Page 131
1 REAL ID Compliant Class C

2 Commercial Learner Permit $46.50 $93.00

3 REAL ID Compliant Class C

4 Commercial License $46.50 $93.00

5 REAL ID Compliant Class D

6 License $38.50 $77.00

7 L. A commercial learner permit may not be renewed one time for

8 a period of one hundred eighty (180) days. The cost for the renewed
8

9 permit shall be the same as for the original permit.
9

10 M. Notwithstanding the provisions of Section 1104 of this

11 title, of each fee charged pursuant to the provisions of subsections
11

12 J, K and L of this section shall be apportioned by Service Oklahoma
12

13 as follows:
13

14 1. Five Dollars and fifty cents ($5.50) of a 4-year license or

15 Eleven Dollars ($11.00) of an 8-year license shall be deposited to
15

16 the Trauma Care Assistance Revolving Fund created in Section 1-
16

17 2530.9 of Title 63 of the Oklahoma Statutes;
17

18 2. Six Dollars and seventy-five cents ($6.75) of a 4-year

19 license or Thirteen Dollars and fifty cents ($13.50) of an 8-year
19

20 license shall be deposited to the Department of Public Safety
20

21 Computer Imaging System Revolving Fund to be used solely for the
21

22 purpose of administration and maintenance of the computerized
22

23 imaging system of the Department through October 31, 2022.
23

24 Beginning November 1, 2022, Six Dollars and seventy-five cents
24

Req. No. 3559 Page 132
1 ($6.75) of a 4-year license or Thirteen Dollars and fifty cents
1

2 ($13.50) of an 8-year license shall be deposited to the Service
2

3 Oklahoma Computer Imaging System Revolving Fund to be used solely
3

4 for the purpose of administration and maintenance of the
4

5 computerized imaging system of Service Oklahoma;
5

6 3. Ten Dollars ($10.00) of a 4-year license or Twenty Dollars

7 ($20.00) of an 8-year license shall be deposited to the Department
7

8 of Public Safety Revolving Fund for all original or renewal
8

9 issuances of licenses through October 31, 2022. Beginning November
9

10 1, 2022, Ten Dollars ($10.00) of a 4-year license or Twenty Dollars
10

11 ($20.00) of an 8-year license shall be deposited to the Service
11

12 Oklahoma Revolving Fund for all original or renewal issuances of
12

13 licenses; and
13

14 4. Five Dollars ($5.00) of a 4-year license or Six Dollars

15 ($6.00) of an 8-year license shall be deposited to the State Public
15

16 Safety Fund created in Section 2-147 of this title.
16

17 N. All original and renewal driver licenses shall expire as

18 provided in Section 6-115 of this title.
18

19 O. 1. Through May 31, 2025, any person sixty-two (62) to

20 sixty-four (64) years of age during the calendar year of issuance or
20

21 renewal of a Class D license or motorcycle endorsement shall be
21

22 charged the following prorated fee:
22

23 4-year 8-year

24 Age 62 $21.25 $42.50

Req. No. 3559 Page 133
1 Age 63 $17.50 $35.00

2 Age 64 $13.75 $27.50

3 2. Any person sixty-five (65) years of age or older during the

4 calendar year of issuance or renewal of a Class D license or
4

5 motorcycle endorsement shall not be charged a fee.
5

6 P. No person who has been honorably discharged from active

7 service in any branch of the Armed Forces of the United States or
7

8 Oklahoma National Guard and who has been certified by the United
8

9 States Department of Veterans Affairs, its successor or the Armed
9

10 Forces of the United States to be a disabled veteran in receipt of
10

11 compensation at the one-hundred-percent rate for a permanent
11

12 disability sustained through military action or accident resulting
12

13 from disease contracted while in such active service and registered
13

14 with the veterans registry created by the Oklahoma Department of
14

15 Veterans Affairs shall be charged a fee for the issuance,
15

16 replacement or renewal of an Oklahoma driver license; provided, that
16

17 if a veteran has been previously exempt from a fee pursuant to this
17

18 subsection, no registration with the veterans registry shall be
18

19 required.
19

20 Q. In accordance with the provisions of subsection G of this

21 section, Service Oklahoma is authorized to promulgate rules for the
21

22 issuance and renewal of driver licenses authorized pursuant to the
22

23 provisions of Sections 6-101 through 6-309 of this title; provided,
23

24 that no such rules applicable to the issuance or renewal of REAL ID
24

Req. No. 3559 Page 134
1 Noncompliant Driver Licenses shall create more stringent standards
1

2 than such rules applicable as of January 1, 2017, unless directly
2

3 related to a specific change in statutory law concerning standards
3

4 for REAL ID Noncompliant Driver Licenses. Applications, upon forms
4

5 approved by Service Oklahoma, for such licenses shall be handled, in
5

6 accordance with the provisions of subsection G of this section, by
6

7 the licensed operator; provided, Service Oklahoma is authorized to
7

8 assume these duties in any county of this state. Each licensed
8

9 operator accepting applications for driver licenses shall receive
9

10 Six Dollars ($6.00) for a 4-year REAL ID Noncompliant Driver License
10

11 or Twelve Dollars ($12.00) for an 8-year REAL ID Noncompliant Driver
11

12 License or Ten Dollars ($10.00) for a 4-year REAL ID Compliant
12

13 Driver License or Twenty Dollars ($20.00) for an 8-year REAL ID
13

14 Compliant Driver License to be deducted from the total collected for
14

15 each license or renewal application accepted through June 30, 2023.
15

16 Beginning July 1, 2022, and ending on June 30, 2023, each motor
16

17 license agent or licensed operator accepting applications for driver
17

18 licenses for individuals over the age of sixty-five (65) years or
18

19 for applications for drivers pursuant to subsection P of this
19

20 section shall receive Six Dollars ($6.00) for a 4-year driver
20

21 license or Twelve Dollars ($12.00) for an 8-year driver license to
21

22 be deducted daily by the motor license agent or licensed operator
22

23 receipts. Beginning July 1, 2023, these fees shall be retained by
23

24 the licensed operator pursuant to subsection E of Section 1141.1 of
24

Req. No. 3559 Page 135
1 this title. The fees received by the licensed operator, authorized
1

2 by this subsection, shall be used for operating expenses. The
2

3 amount retained pursuant to this subsection shall not be retained by
3

4 any state agency. The fees received by the licensed operator,
4

5 authorized by this subsection, shall be used for operating expenses.
5

6 For purposes of this subsection, "licensed operator" shall mean an
6

7 individual who obtains a license from the Service Oklahoma Operator
7

8 Board to operate a designated Service Oklahoma location and offers
8

9 third-party fulfillment of designated services to be rendered by
9

10 Service Oklahoma.
10

11 R. Notwithstanding the provisions of Section 1104 of this title

12 and subsection Q of this section and except as provided in
12

13 subsections H and M of this section, the first Sixty Thousand
13

14 Dollars ($60,000.00) of all monies collected pursuant to this
14

15 section shall be paid by the Oklahoma Tax Commission Service
15

16 Oklahoma to the State Treasurer to be deposited in the General
16

17 Revenue Fund of the State Treasury.
17

18 The next Five Hundred Thousand Dollars ($500,000.00) of monies

19 collected pursuant to this section shall be paid by the Tax
19

20 Commission Service Oklahoma to the State Treasurer to be deposited
20

21 each fiscal year under the provisions of this section to the credit
21

22 of the Department of Public Safety Restricted Revolving Fund for the
22

23 purpose of the Oklahoma Law Enforcement Telecommunications System.
23

24 All other monies collected in excess of Five Hundred Sixty Thousand
24

Req. No. 3559 Page 136
1 Dollars ($560,000.00) each fiscal year shall be apportioned as
1

2 provided in Section 1104 of this title, except as otherwise provided
2

3 in this section.
3

4 S. Service Oklahoma shall retain the images displayed on

5 licenses and identification cards issued pursuant to the provisions
5

6 of Sections 6-101 through 6-309 of this title which may be used
6

7 only:
7

8 1. By a law enforcement agency for purposes of criminal

9 investigations, missing person investigations or any law enforcement
9

10 purpose which is deemed necessary by the Commissioner of Public
10

11 Safety;
11

12 2. By the driver licensing agency of another state for its

13 official purpose; and
13

14 3. As provided in Section 2-110 of this title.

15 All agencies approved by the Oklahoma Law Enforcement

16 Telecommunications System (OLETS) or the National Law Enforcement
16

17 Telecommunications System (NLETS) to receive photographs or
17

18 computerized images may obtain them through OLETS or through NLETS.
18

19 Photographs or computerized images may be obtained by law
19

20 enforcement one inquiry at a time.
20

21 The computer system and related equipment acquired for this

22 purpose must conform to industry standards for interoperability and
22

23 open architecture. The Department of Public Safety may promulgate
23

24 rules to implement the provisions of this subsection.
24

Req. No. 3559 Page 137
1 T. No person may hold more than one state-issued or territory-

2 issued driver license or identification card from Oklahoma or any
2

3 other state or territory. Service Oklahoma shall not issue a driver
3

4 license to a person who has been previously issued a driver license
4

5 or identification card until such license or identification card has
5

6 been surrendered to Service Oklahoma by the applicant. Provided,
6

7 any person who holds both a driver license and identification card
7

8 from Oklahoma as of November 1, 2025, may continue to possess both
8

9 credentials until the first expiration of either credential. At
9

10 that time, the person shall be allowed to retain, replace, or renew
10

11 either the driver license or identification card and shall surrender
11

12 the second credential to Service Oklahoma. Service Oklahoma may
12

13 promulgate rules related to the issuance of replacement REAL ID
13

14 Compliant Driver Licenses in the event of loss or theft.
14

15 U. Beginning May 24, 2021, and ending on June 30, 2023, in

16 addition to the amounts provided in subsection Q of this section, a
16

17 licensed operator shall receive Five Dollars ($5.00) for each
17

18 processed application for a REAL ID Compliant 4-year Driver License
18

19 and Ten Dollars ($10.00) for each processed application for a REAL
19

20 ID Compliant 8-year Driver License. Any additional amounts provided
20

21 pursuant to this subsection shall not be retained by Service
21

22 Oklahoma.
22

Req. No. 3559 Page 138
1 SECTION 37. REPEALER 47 O.S. 2021, Section 6-101, as

2 last amended by Section 13, Chapter 310, O.S.L. 2023 (47 O.S. Supp.
2

3 2025, Section 6-101), is hereby repealed.
3

4 SECTION 38. REPEALER 47 O.S. 2021, Section 6-101, as

5 last amended by Section 2, Chapter 11, O.S.L. 2024 (47 O.S. Supp.
5

6 2025, Section 6-101), is hereby repealed.
6

7 SECTION 39. REPEALER 47 O.S. 2021, Section 6-101, as

8 last amended by Section 3, Chapter 171, O.S.L. 2025 (47 O.S. Supp.
8

9 2025, Section 6-101), is hereby repealed.
9

10 SECTION 40. AMENDATORY 47 O.S. 2021, Section 6-102, as

11 last amended by Section 1, Chapter 450, O.S.L. 2024 (47 O.S. Supp.
11

12 2025, Section 6-102), is amended to read as follows:
12

13 Section 6-102. A. A nonresident who is sixteen (16) years of

14 age or older may operate a motor vehicle in this state as authorized
14

15 by the class, restrictions, and endorsements specified on the
15

16 license, if the nonresident is:
16

17 1. Properly licensed in the home state or country to operate a

18 commercial or noncommercial motor vehicle and who has immediate
18

19 possession of a valid driver license issued by the home state or
19

20 country; or
20

21 2. A member of the Armed Forces of the United States or the

22 spouse or dependent of such member who has been issued and is in
22

23 possession of a valid driver license issued by an overseas component
23

24 of the Armed Forces of the United States.
24

Req. No. 3559 Page 139
1 B. A resident who is at least fifteen (15) years of age may

2 operate a vehicle in this state without a driver license, if the
2

3 resident is:
3

4 1. Operating a vehicle pursuant to subsection B of Section 6-

5 105 of this title; or
5

6 2. Taking the driving skills examination as required by Section

7 6-110 of this title, when accompanied by a driver license examiner
7

8 of Service Oklahoma or by a designated examiner approved and
8

9 certified by Service Oklahoma.
9

10 C. A resident who is at least thirteen and one-half (13 1/2)

11 years of age who will qualify for the permit to operate farm
11

12 vehicles as provided for in Section 6-105 of this title may operate
12

13 a vehicle in this state without a driver license, if the resident
13

14 is:
14

15 1. Operating a vehicle pursuant to subsection B of Section 6-

16 105 of this title; or
16

17 2. Taking the driving skills examination as required by Section

18 6-110 of this title, when accompanied by a driver license examiner
18

19 of Service Oklahoma or by a designated examiner approved and
19

20 certified by Service Oklahoma.
20

21 D. Any person, while in the performance of official duties, may

22 operate any class of motor vehicle if the person possesses any class
22

23 of valid Oklahoma driver license or a valid driver license issued by
23

24 another state, if the person is:
24

Req. No. 3559 Page 140
1 1. A member of the Armed Forces of the United States who is on

2 active duty;
2

3 2. A member of the military reserves, not including United

4 States reserve technicians;
4

5 3. A member of the National Guard who is on active duty,

6 including National Guard military technicians;
6

7 4. A member of the National Guard who is on part-time National

8 Guard training, including National Guard military technicians; or
8

9 5. A member of the United States Coast Guard who is on active

10 duty.
10

11 E. 1. The Executive Director of Service Oklahoma is hereby

12 authorized to adopt rules as may be necessary to enter into
12

13 reciprocity agreements with foreign countries. The rules shall
13

14 specify that the driver license standards of the foreign country
14

15 shall be comparable to those of this state. The rules shall also
15

16 require foreign drivers, who are operating a motor vehicle in
16

17 Oklahoma under such a reciprocity agreement, to comply with the
17

18 compulsory motor vehicle liability insurance and financial
18

19 responsibility laws of this state.
19

20 2. Service Oklahoma shall enter into a reciprocity agreement

21 for driver licenses with the country of Ireland.
21

22 F. When an automated driving system, as defined by Section 1701

23 of this title, installed on a motor vehicle is engaged, the
23

24 following shall apply:
24

Req. No. 3559 Page 141
1 1. The automated driving system is considered the driver or

2 operator, for the purpose of assessing compliance with applicable
2

3 traffic or motor vehicle laws, and shall be deemed to satisfy
3

4 electronically all physical acts required by a driver or operator of
4

5 the vehicle; and
5

6 2. The automated driving system is considered to be licensed to

7 operate the vehicle.
7

8 SECTION 41. REPEALER 47 O.S. 2021, Section 6-102, as

9 last amended by Section 1, Chapter 123, O.S.L. 2025 (47 O.S. Supp.
9

10 2025, Section 6-102), is hereby repealed.
10

11 SECTION 42. AMENDATORY 47 O.S. 2021, Section 6-105, as

12 last amended by Section 38, Chapter 452, O.S.L. 2024 (47 O.S. Supp.
12

13 2025, Section 6-105), is amended to read as follows:
13

14 Section 6-105. A. Unless a legal custodial parent or legal

15 guardian has filed an objection to licensure pursuant to Section 6-
15

16 103.1 of this title, any person under eighteen (18) years of age may
16

17 be permitted to operate:
17

18 1. A Class D motor vehicle under the graduated driver license

19 provisions prescribed in subsections B through E of this section;
19

20 2. A motorcycle under the provisions prescribed in subsection H

21 of this section; or
21

22 3. A farm vehicle under the provisions prescribed in subsection

23 I of this section.
23

Req. No. 3559 Page 142
1 B. Any person who is at least thirteen and one-half (13 1/2)

2 years of age who will qualify for the permit to operate farm
2

3 vehicles as provided for in subsection I of this section or fifteen
3

4 (15) years of age may drive during a session in which the driver is
4

5 being instructed in a driver education course, as set out in
5

6 subparagraphs a, b, c, d and e of paragraph 1 of subsection C of
6

7 this section, by a certified driver education instructor who is
7

8 seated in the right front seat of the motor vehicle.
8

9 C. Any person:

10 1. Who is at least fifteen and one-half (15 1/2) (15) years of

11 age and is currently receiving instruction in or has successfully
11

12 completed driver education. For purposes of this section, the term
12

13 "driver education" shall mean:
13

14 a. a prescribed secondary school driver education course,

15 as provided for in Sections 19-113 through 19-121 19-

16 123 of Title 70 of the Oklahoma Statutes,

17 b. a driver education course, certified by Service

18 Oklahoma, from a parochial, private, or other

19 nonpublic secondary school,

20 c. a commercial driver training course, as defined by

21 Sections 801 through 808 of this title,

22 d. a parent-taught driver education course, certified by

23 Service Oklahoma, in conjunction with the Department

24 of Public Safety. Service Oklahoma shall promulgate

Req. No. 3559 Page 143
1 rules for any parent-taught driver education course,

2 or

3 e. a driver education course certified by a state other

4 than Oklahoma; or

5 2. Who is at least sixteen (16) years of age,

6 may, upon successfully passing all parts of the driver license
6

7 examination administered by Service Oklahoma, or an approved written
7

8 examination proctor, except the driving examination, be issued a
8

9 learner permit which will grant the permittee the privilege to
9

10 operate a Class D motor vehicle upon the public highways only
10

11 between the hours of 5:00 a.m. and 10:00 p.m. and while accompanied
11

12 by a licensed driver who is at least twenty-one (21) years of age
12

13 and who is actually occupying a seat beside the permittee; provided,
13

14 the written examination for a learner permit may be waived by
14

15 Service Oklahoma upon verification that the person has successfully
15

16 completed driver education.
16

17 D. 1. Any person:

18 a. who has applied for, been issued, and has possessed a

19 learner permit for a minimum of one hundred eighty

20 (180) days,

21 b. whose custodial legal parent or legal guardian

22 certifies to Service Oklahoma by sworn affidavit that

23 the person has received a minimum of fifty (50) hours

24 of actual behind-the-wheel training, of which at least

Req. No. 3559 Page 144
1 ten (10) hours of such training was were at night,

2 from a licensed driver who was at least twenty-one

3 (21) years of age and who was properly licensed to

4 operate a Class D motor vehicle for a minimum of two

5 (2) years, and

6 c. who has completed a free course approved by the

7 Oklahoma Department of Transportation on teen driver

8 work zone and first responder safety, and

9 d. who is at least sixteen (16) years of age,

10 may be issued an intermediate Class D license upon successfully
10

11 passing all parts of the driver license examinations administered by
11

12 Service Oklahoma; provided, the written examination, if it has not
12

13 previously been administered or waived, may be waived by Service
13

14 Oklahoma upon verification that the person has successfully
14

15 completed driver education or the driving examination may be waived
15

16 by Service Oklahoma upon successful passage of the examination
16

17 administered by a certified designated examiner, as provided for in
17

18 Section 6-110 of this title. However, notwithstanding the date of
18

19 issuance of the learner permit, if the person has been convicted of
19

20 a traffic offense which is reported on the driving record of that
20

21 person, the time period specified in subparagraph a of this
21

22 paragraph shall be recalculated to begin from the date of conviction
22

23 for the traffic offense, and must elapse before that person may be
23

24 issued an intermediate Class D license. If the person has been
24

Req. No. 3559 Page 145
1 convicted of more than one traffic offense which is reported on the
1

2 driving record of that person, the time period specified in
2

3 subparagraph a of this paragraph shall be recalculated to begin from
3

4 the most recent date of conviction, and must elapse before that
4

5 person may be issued an intermediate Class D license.
5

6 2. A person who has been issued an intermediate Class D license

7 under the provisions of this subsection:
7

8 a. shall be granted the privilege to operate a Class D

9 motor vehicle upon the public highways:

10 (1) only between the hours of 5:00 a.m. and 10:00

11 p.m., except for driving to and from work,

12 school, school activities, and church activities,

13 or

14 (2) at any time, if a licensed driver who is at least

15 twenty-one (21) years of age is actually

16 occupying a seat beside the intermediate Class D

17 licensee, or if the intermediate Class D licensee

18 is a farm or ranch resident, and is operating a

19 motor vehicle while engaged in farming or

20 ranching operations outside the limits of a

21 municipality, or driving to and from work,

22 school, school activities, or church activities,

23 and

Req. No. 3559 Page 146
1 b. shall not operate a motor vehicle with more than one

2 passenger unless:

3 (1) all passengers live in the same household as the

4 custodial legal parent or legal guardian, or

5 (2) a licensed driver at least twenty-one (21) years

6 of age is actually occupying a seat beside the

7 intermediate Class D licensee.

8 E. Any person who has been issued an intermediate Class D

9 license for a minimum of:
9

10 1. One (1) year; or

11 2. One hundred eighty (180) days, if the person has completed

12 both the driver education and the parent-certified behind-the-wheel
12

13 training provisions of subparagraph b of paragraph 1 of subsection D
13

14 of this section,
14

15 may be issued a Class D license. However, notwithstanding the date
15

16 of issuance of the Class D license, if the person has been convicted
16

17 of a traffic offense which is reported on the driving record of that
17

18 person, the time periods specified in paragraph 1 or 2 of this
18

19 subsection, as applicable, shall be recalculated to begin from the
19

20 date of conviction for the traffic offense, and must elapse before
20

21 that person may be issued a Class D license. If the person has been
21

22 convicted of more than one traffic offense which is reported on the
22

23 driving record of that person, the time periods specified in
23

24 paragraph 1 or 2 of this subsection, as applicable, shall be
24

Req. No. 3559 Page 147
1 recalculated to begin from the most recent date of conviction, and
1

2 must elapse before that person may be issued a Class D license.
2

3 F. Learner permits and intermediate Class D licenses shall be

4 issued for the same period as all other driver licenses. The
4

5 licenses may be suspended or canceled at the discretion of the
5

6 Department, with notice to Service Oklahoma for violation of
6

7 restrictions, for failing to give the required or correct
7

8 information on the application, for knowingly giving false or
8

9 inaccurate information on the application or any subsequent
9

10 documentation related to the granting of driving privileges, for
10

11 using a hand-held electronic device while operating a motor vehicle
11

12 for non-life-threatening emergency purposes or for violation of any
12

13 traffic laws of this state pertaining to the operation of a motor
13

14 vehicle.
14

15 G. Service Oklahoma shall promulgate rules establishing

16 procedures for removal of learner permit and intermediate Class D
16

17 license restrictions from the permit or license upon the permittee
17

18 or licensee qualifying for a less restricted or an unrestricted
18

19 license.
19

20 H. Any person fourteen (14) years of age or older may apply for

21 a restricted Class D license with a motorcycle-only restriction.
21

22 After the person has successfully passed all parts of the motorcycle
22

23 examination other than the driving examination, has successfully
23

24 completed a certified state-approved motorcycle basic rider course
24

Req. No. 3559 Page 148
1 approved by the Department of Public Safety, in conjunction with
1

2 Service Oklahoma, and has met all requirements provided for in the
2

3 rules of the Department and Service Oklahoma, Service Oklahoma shall
3

4 issue to the person a restricted Class D license with a motorcycle-
4

5 only restriction which shall grant to the person, while having the
5

6 license in the person's immediate possession, the privilege to
6

7 operate a motorcycle or motor-driven cycle:
7

8 1. With a piston displacement not to exceed three hundred cubic

9 centimeters (300 cc) or a sixteen and eight-tenths (16.8) kilowatt
9

10 electric power source;
10

11 2. Between the hours of 4:30 a.m. to 9:00 p.m. only;

12 3. While wearing approved protective headgear; and

13 4. While accompanied by and receiving instruction from any

14 person who is at least twenty-one (21) years of age and who is
14

15 properly licensed pursuant to the laws of this state to operate a
15

16 motorcycle or motor-driven cycle, and who has visual contact with
16

17 the restricted licensee.
17

18 The restricted licensee may apply on or after thirty (30) days

19 from date of issuance of the restricted Class D license with a
19

20 motorcycle-only restriction to have the restriction of being
20

21 accompanied by a licensed driver removed by successfully completing
21

22 the driving portion of an examination.
22

23 The written examination and driving examination for a restricted

24 Class D license with a motorcycle-only endorsement shall be waived
24

Req. No. 3559 Page 149
1 by Service Oklahoma upon verification that the person has
1

2 successfully completed a certified state-approved motorcycle basic
2

3 rider course approved by the Department and Service Oklahoma.
3

4 I. 1. Any person who is less than seventeen (17) years of age

5 but is at least fourteen (14) years of age and who resides upon a
5

6 farm in this state or is employed for compensation upon a farm in
6

7 this state may apply to Service Oklahoma for a farm permit
7

8 authorizing such person, while possessing the permit, to operate any
8

9 Class D motor vehicle.
9

10 2. a. A farm permit shall entitle the licensee, who is at

11 least fourteen (14) years of age but less than sixteen

12 (16) years of age, to operate the appropriate motor

13 vehicles at any time:

14 (1) while going to or from or in connection with any

15 farm job, employment, or other farm-related work,

16 (2) on days while school is in session, over the most

17 direct and accessible route between the

18 licensee's residence and school of enrollment for

19 the purpose of school attendance; provided, that

20 the privilege shall only extend to those

21 licensees who reside on a farm and commute

22 directly from their place of residence to the

23 school in which they are enrolled, or

Req. No. 3559 Page 150
1 (3) when the licensee is operating a passenger car at

2 any time when accompanied by an adult who is the

3 holder of a valid commercial driver license,

4 Class A, B, C, or D driver license and who is

5 actually occupying a seat beside the driver.

6 b. For a period of six (6) months, a farm permit shall

7 entitle the licensee who is at least sixteen (16)

8 years of age to operate the appropriate motor vehicles

9 at any time:

10 (1) from 5:00 a.m. to 9:00 p.m.,

11 (2) while going to or from or in connection with any

12 farm job, employment, or other farm-related work,

13 (3) while going to or from authorized school

14 activities,

15 (4) while going directly to or from any religious

16 worship service held by a religious organization,

17 or

18 (5) while the licensee is operating a passenger car

19 at any time while accompanied by an adult who is

20 the holder of a valid commercial driver license,

21 Class A, B, or C driver license, and who is

22 actually occupying a seat beside the driver.

23 After such six-month period, if the licensee has complied with the
23

24 provisions of this subsection, such farm permit shall entitle the
24

Req. No. 3559 Page 151
1 licensee to operate the appropriate motor vehicles at any time
1

2 without the restrictions required by this subsection.
2

3 3. A farm permit shall be issued only if:

4 a. the applicant can prove that such applicant resides or

5 works on a farm by submitting the signed affidavit of

6 either a parent or guardian stating that the applicant

7 lives on a farm,

8 b. the applicant has successfully completed the

9 examination requirements in Section 6-110 of this

10 title, and

11 c. the applicant does not live on a farm but works on a

12 farm and the applicant submits the signed affidavit of

13 the applicant's employer and parent or guardian

14 attesting to such employment.

15 4. Any licensee issued a farm permit under this subsection:

16 a. who is less than sixteen (16) years of age shall not

17 operate any motor vehicle with nonsibling minor

18 passengers,

19 b. who is at least sixteen (16) years of age, for a

20 period of six (6) months after reaching sixteen (16)

21 years of age, shall not operate any motor vehicle with

22 more than one passenger who is less than eighteen (18)

23 years of age and who is not a member of the licensee's

24 immediate family, or

Req. No. 3559 Page 152
1 c. who is at least fourteen (14) years of age, but less

2 than sixteen (16) years of age, shall not operate any

3 motor vehicle on interstate or turnpike highway

4 systems, nor shall a licensee operate a motor vehicle

5 within the limits of a city with a population in

6 excess of one hundred thousand (100,000) persons

7 according to the latest Federal Decennial Census.

8 Any conviction for violating this paragraph shall be construed as a
8

9 moving traffic violation. Service Oklahoma may, in its discretion,
9

10 suspend the permit of an individual for violation of this paragraph.
10

11 5. Any licensee issued a farm permit under this subsection

12 shall not operate a wireless communication device while driving a
12

13 motor vehicle, except that a licensee may operate a wireless
13

14 communication device while driving a motor vehicle to report illegal
14

15 activity or to summon medical or other emergency help.
15

16 6. As used in this subsection, "farm" means any parcel of land

17 for which the owner has an agricultural exemption permit issued by
17

18 the Oklahoma Tax Commission.
18

19 7. a. A farm permit issued under this subsection is subject

20 to suspension or revocation in the same manner as any

21 other driver license.

22 b. A farm permit may be suspended in accordance with

23 Section 6-113 of this title for any violation of

24 restrictions under this subsection.

Req. No. 3559 Page 153
1 c. Service Oklahoma shall suspend the farm permit upon

2 receiving satisfactory evidence that the licensee has

3 been involved in two or more accidents chargeable to

4 the licensee and such suspended license shall not be

5 reinstated for one (1) year.

6 8. Any licensee issued a farm permit under this subsection

7 shall provide, prior to reaching sixteen (16) years of age, a signed
7

8 affidavit of either a parent or guardian stating that the applicant
8

9 has completed at least fifty (50) hours of adult-supervised driving
9

10 with at least ten (10) of those hours being at night. The adult-
10

11 supervised driving required by this paragraph shall be conducted by
11

12 an adult who is at least twenty-one (21) years of age and is the
12

13 holder of a valid commercial driver license, Class A, B, C, or D
13

14 driver license. Evidence of failure of any licensee who was
14

15 required to complete the fifty (50) hours of adult-supervised
15

16 driving under this subsection shall not be admissible in any action
16

17 for the purpose of determining any aspect of comparative negligence
17

18 or mitigation of damages.
18

19 9. Any licensee issued a farm permit under this subsection who:

20 a. is under sixteen (16) years of age and is convicted of

21 two or more moving traffic violations committed on

22 separate occasions shall not be eligible to receive a

23 driver license which is not restricted, in accordance

24 with the provisions of subparagraph a of paragraph 2

Req. No. 3559 Page 154
1 of this subsection, until the person reaches seventeen

2 (17) years of age,

3 b. is at least sixteen (16) years of age but less than

4 seventeen (17) years of age and is convicted of two or

5 more moving traffic violations committed on separate

6 occasions shall not be eligible to receive a driver

7 license which is not restricted, in accordance with

8 the provisions of subparagraph b of paragraph 2 of

9 this subsection, until the person reaches eighteen

10 (18) years of age, or

11 c. fails to provide the affidavit required under

12 paragraph 8 of this subsection shall not be eligible

13 to receive a driver license which is not restricted,

14 in accordance with the provisions of subparagraph a of

15 paragraph 2 of this subsection, until the person

16 provides such affidavit to Service Oklahoma or the

17 person reaches seventeen (17) years of age, whichever

18 occurs first.

19 J. As used in this section:

20 1. "Hand-held "Handheld electronic device" means a mobile

21 telephone or electronic device with which a user engages in a
21

22 telephone call, plays or stores media, including but not limited to
22

23 music and video, or sends or reads a text message while requiring
23

24 the use of at least one hand; and
24

Req. No. 3559 Page 155
1 2. "Using a hand-held handheld electronic device" means

2 engaging any function on an electronic device.
2

3 K. All driver education courses provided for in paragraph 1 of

4 subsection C of this section shall include education regarding the
4

5 dangers of texting while driving and the effects of being under the
5

6 influence of alcohol or other intoxicating substance while driving.
6

7 SECTION 43. REPEALER 47 O.S. 2021, Section 6-105, as

8 last amended by Section 2, Chapter 450, O.S.L. 2024 (47 O.S. Supp.
8

9 2025, Section 6-105), is hereby repealed.
9

10 SECTION 44. REPEALER 47 O.S. 2021, Section 6-105, as

11 last amended by Section 3, Chapter 11, O.S.L. 2024 (47 O.S. Supp.
11

12 2025, Section 6-105), is hereby repealed.
12

13 SECTION 45. AMENDATORY 47 O.S. 2021, Section 6-105.3, as

14 last amended by Section 4, Chapter 330, O.S.L. 2025 (47 O.S. Supp.
14

15 2025, Section 6-105.3), is amended to read as follows:
15

16 Section 6-105.3. A. In addition to the licenses to operate

17 motor vehicles, Service Oklahoma may issue cards to Oklahoma
17

18 residents for purposes of identification only. The identification
18

19 cards shall be issued, renewed, replaced, canceled and denied in the
19

20 same manner as driver licenses in this state. Provided, any person
20

21 who holds both a driver license and identification card from
21

22 Oklahoma as of November 1, 2025, may continue to possess both
22

23 credentials until the first expiration of either credential. At
23

24 that time, the person shall be allowed to retain, replace, or renew
24

Req. No. 3559 Page 156
1 either the driver license or identification card and shall surrender
1

2 the second credential to Service Oklahoma. A licensee whose record
2

3 reflects a notation of the person's proof of legal presence,
3

4 verified by the U.S. Department of Homeland Security, or proof of
4

5 U.S. citizenship, may obtain a REAL ID Compliant Identification Card
5

6 or a Noncompliant Identification Card from a licensed operator or
6

7 Service Oklahoma, regardless of the status of the license held by
7

8 the licensee. Provided, the licensee must comply with all REAL ID
8

9 documentation requirements to obtain a REAL ID Compliant
9

10 Identification Card. A person shall not apply for or possess more
10

11 than one state-issued or territory-issued REAL ID Compliant
11

12 Identification Card pursuant to the provisions of Section 6-101 of
12

13 this title.
13

14 The application for an identification card by any person under

15 the age of eighteen (18) years shall be signed and verified by a
15

16 custodial legal parent or legal guardian, either in person before a
16

17 person authorized to administer oaths or electronically if
17

18 completing an online application, or a notarized affidavit signed by
18

19 a custodial legal parent or legal guardian submitted before a person
19

20 authorized to administer oaths by the person under the age of
20

21 eighteen (18) years with the application. Provided, that persons
21

22 under eighteen (18) years of age who are homeless children and
22

23 youth, as defined in Section 600 of Title 10 of the Oklahoma
23

24 Statutes and verified as such through the process established in
24

Req. No. 3559 Page 157
1 Section 601.6d of Title 10 of the Oklahoma Statutes, shall be
1

2 allowed to apply for a REAL ID Noncompliant Identification Card,
2

3 which shall be valid for a period of four (4) years from the month
3

4 of issuance, without signature of their parent or legal guardian.
4

5 Except as otherwise provided in this section, the identification
5

6 cards shall be valid for a period of either four (4) years from the
6

7 month of issuance or eight (8) years from the month of issuance;
7

8 however, the REAL ID Noncompliant identification cards issued to
8

9 persons sixty-five (65) years of age or older shall be valid
9

10 indefinitely from the month of issuance.
10

11 B. 1. The Department of Corrections shall coordinate with

12 Service Oklahoma to provide REAL ID Noncompliant Identification
12

13 Cards to all inmates who do not have a current state-issued
13

14 identification card or driver license upon their release from
14

15 custody. The identification cards shall be issued, replaced,
15

16 canceled and denied in the same manner as driver licenses in this
16

17 state.
17

18 2. Service Oklahoma shall allow the use of a certified copy of

19 a birth certificate coupled with a Department of Corrections-issued
19

20 consolidated record card to serve as a valid form of photo
20

21 identification documentation to obtain a REAL ID Noncompliant
21

22 Identification Card.
22

23 3. REAL ID Noncompliant Identification Cards issued with a

24 consolidated record card from the Department of Corrections for
24

Req. No. 3559 Page 158
1 inmates shall be valid for a period of four (4) years from the month
1

2 of issuance for an allowable fee to be determined by Service
2

3 Oklahoma and are nonrenewable and nontransferable.
3

4 4. The fee charged for the issuance or replacement of a REAL ID

5 Noncompliant Identification Card pursuant to this subsection shall
5

6 be deposited in the Department of Public Safety Revolving Fund
6

7 through October 31, 2022. Beginning November 1, 2022, this fee
7

8 shall be deposited in the Service Oklahoma Revolving Fund.
8

9 Provided, however, REAL ID Noncompliant Identification Cards issued
9

10 to individuals required to register pursuant to the Sex Offenders
10

11 Registration Act shall only be valid for a period of one (1) year.
11

12 No person sixty-five (65) years of age or older shall be charged a
12

13 fee for a REAL ID Noncompliant Identification Card.
13

14 5. Service Oklahoma is authorized to promulgate rules and

15 procedures to implement the provisions of this subsection.
15

16 C. No person shall hold more than one state-issued or

17 territory-issued driver license or identification card, as defined
17

18 in subsection G of Section 6-101 of this title. Service Oklahoma
18

19 shall not issue an identification card to any applicant who has been
19

20 previously issued a driver license or identification card unless
20

21 such license or identification card has been surrendered to Service
21

22 Oklahoma by the applicant. Provided, any person who holds both a
22

23 driver license and identification card from Oklahoma as of November
23

24 1, 2025, may continue to possess both credentials until the first
24

Req. No. 3559 Page 159
1 expiration of either credential. At that time, the person shall be
1

2 allowed to retain, replace, or renew either the driver license or
2

3 identification card and shall surrender the second credential to
3

4 Service Oklahoma. Service Oklahoma may promulgate rules related to
4

5 the issuance of replacement REAL ID Compliant Identification Cards
5

6 in the event of loss or theft.
6

7 D. The fee charged for the issuance or renewal of a REAL ID

8 Compliant Identification Card shall be Twenty-five Dollars ($25.00)
8

9 for a 4-year card and Fifty Dollars ($50.00) for an 8-year card.
9

10 The fee charged for the issuance or renewal of a REAL ID
10

11 Noncompliant Identification Card pursuant to this section shall be
11

12 Twenty-five Dollars ($25.00) for a 4-year card and Fifty Dollars
12

13 ($50.00) for an 8-year card; however, no person sixty-five (65)
13

14 years of age or older, or one hundred percent (100%) disabled
14

15 veteran described in subsection P of Section 6-101 of this title, or
15

16 persons who are homeless children and youth as defined in Section
16

17 600 of Title 10 of the Oklahoma Statutes and verified through the
17

18 process established in Section 601.6d of Title 10 of the Oklahoma
18

19 Statutes shall be charged a fee for an identification card. Of each
19

20 fee charged pursuant to the provisions of this subsection:
20

21 1. Seven Dollars ($7.00) of a 4-year card and Fourteen Dollars

22 ($14.00) of an 8-year card shall be apportioned as provided in
22

23 Section 1104 of this title;
23

Req. No. 3559 Page 160
1 2. Three Dollars ($3.00) of a 4-year card and Six Dollars

2 ($6.00) of an 8-year card shall be credited to the Department of
2

3 Public Safety Computer Imaging System Revolving Fund to be used
3

4 solely for the purpose of the administration and maintenance of the
4

5 computerized imaging system of the Department through October 31,
5

6 2022. Beginning November 1, 2022, Three Dollars ($3.00) of a 4-year
6

7 card and Six Dollars ($6.00) of an 8-year card shall be credited to
7

8 the Service Oklahoma Computer Imaging System Revolving Fund to be
8

9 used solely for the purpose of administration and maintenance of the
9

10 computerized imaging system of Service Oklahoma;
10

11 3. Ten Dollars ($10.00) of a 4-year card and Twenty Dollars

12 ($20.00) of an 8-year card shall be deposited in the Department of
12

13 Public Safety Revolving Fund through October 31, 2022. Beginning
13

14 November 1, 2022, this fee shall be deposited in the Service
14

15 Oklahoma Revolving Fund;
15

16 4. Three Dollars ($3.00) of a 4-year card and Six Dollars

17 ($6.00) of an 8-year card shall be deposited to the State Public
17

18 Safety Fund created in Section 2-147 of this title; and
18

19 5. Two Dollars ($2.00) for a 4-year card and Four Dollars

20 ($4.00) for an 8-year card of the fee authorized by this subsection
20

21 related to the issuance or renewal of an identification card by a
21

22 licensed operator that does process approved applications or
22

23 renewals for REAL ID Compliant and REAL ID Noncompliant Driver
23

24 Licenses or Identification Cards shall be retained by the licensed
24

Req. No. 3559 Page 161
1 operator through June 30, 2023. Beginning July 1, 2023, these
1

2 monies shall be retained by the licensed operator pursuant to
2

3 subsection E of Section 1141.1 of this title.
3

4 E. The fee charged for replacement of a REAL ID Compliant

5 Identification Card, or REAL ID Noncompliant Identification Card,
5

6 shall be Twenty-five Dollars ($25.00); however, no person sixty-five
6

7 (65) years of age or older shall be charged a fee for an
7

8 identification card replacement. Of each fee charged pursuant to
8

9 the provisions of this subsection:
9

10 1. Seven Dollars ($7.00) shall be apportioned as provided in

11 Section 1104 of this title;
11

12 2. Three Dollars ($3.00) shall be credited to the Department of

13 Public Safety Computer Imaging System Revolving Fund to be used
13

14 solely for the purpose of the administration and maintenance of the
14

15 computerized imaging system of the Department through October 31,
15

16 2022. Beginning November 1, 2022, Three Dollars ($3.00) shall be
16

17 credited to the Service Oklahoma Computer Imaging System Revolving
17

18 Fund to be used solely for the purpose of administration and
18

19 maintenance of the computerized imaging system of Service Oklahoma;
19

20 3. Ten Dollars ($10.00) shall be deposited in the Department of

21 Public Safety Revolving Fund through October 31, 2022. Beginning
21

22 November 1, 2022, this fee shall be deposited in the Service
22

23 Oklahoma Revolving Fund;
23

Req. No. 3559 Page 162
1 4. Three Dollars ($3.00) shall be deposited to the State Public

2 Safety Fund created in Section 2-147 of this title; and
2

3 5. Two Dollars ($2.00) of the fee authorized by this subsection

4 related to the replacement of an identification card by a licensed
4

5 operator that does process approved applications or renewals for
5

6 REAL ID Compliant or REAL ID Noncompliant Driver Licenses or
6

7 Identification Cards shall be retained by the licensed operator
7

8 through June 30, 2023. Beginning July 1, 2023, these monies shall
8

9 be retained by the licensed operator pursuant to subsection E of
9

10 Section 1141.1 of this title.
10

11 F. The Oklahoma Tax Commission is hereby authorized to

12 reimburse, from funds available to that agency, each licensed
12

13 operator issuing an identification card to a person sixty-five (65)
13

14 years of age or older, an amount not to exceed One Dollar ($1.00)
14

15 for each card or driver license so issued through June 30, 2023.
15

16 The Tax Commission shall develop procedures for claims for
16

17 reimbursement.
17

18 G. Notwithstanding any other provision of law, when a person

19 makes application for a new identification card, or makes
19

20 application to renew an identification card, and the person has been
20

21 convicted of, or received a deferred judgment for, any offense
21

22 required to register pursuant to the Sex Offenders Registration Act,
22

23 the identification card shall be valid for a period of one (1) year
23

24 from the month of issuance, but may be renewed yearly during the
24

Req. No. 3559 Page 163
1 time the person is subject to registration on the Sex Offender
1

2 Registry. The cost for such identification card shall be the same
2

3 as for other identification cards and renewals.
3

4 H. Nothing in this section requires or authorizes the

5 Department of Public Safety Service Oklahoma to issue a REAL ID
5

6 Noncompliant Identification Card without the documentation required
6

7 by the provisions of paragraph 9 of subsection A of Section 6-103 of
7

8 this title.
8

9 SECTION 46. REPEALER 47 O.S. 2021, Section 6-105.3, as

10 last amended by Section 4, Chapter 11, O.S.L. 2024 (47 O.S. Supp.
10

11 2025, Section 6-105.3), is hereby repealed.
11

12 SECTION 47. REPEALER 47 O.S. 2021, Section 6-105.3, as

13 last amended by Section 1, Chapter 101, O.S.L. 2024 (47 O.S. Supp.
13

14 2025, Section 6-105.3), is hereby repealed.
14

15 SECTION 48. REPEALER 47 O.S. 2021, Section 6-105.3, as

16 last amended by Section 3, Chapter 315, O.S.L. 2024 (47 O.S. Supp.
16

17 2025, Section 6-105.3), is hereby repealed.
17

18 SECTION 49. AMENDATORY 47 O.S. 2021, Section 6-110, as

19 last amended by Section 4, Chapter 450, O.S.L. 2024 (47 O.S. Supp.
19

20 2025, Section 6-110), is amended to read as follows:
20

21 Section 6-110. A. 1. Service Oklahoma shall establish

22 procedures to ensure every applicant for an original Class A, B, C
22

23 or D license and for any endorsements thereon is examined by Service
23

24 Oklahoma, or an approved written examination proctor, except as
24

Req. No. 3559 Page 164
1 otherwise provided in Section 6-101 et seq. of this title or as
1

2 provided in paragraph 2 of this subsection or in subsections D and E
2

3 of this section. Service Oklahoma is authorized to approve and
3

4 enter into agreements with third parties including, but not limited
4

5 to, public school districts, technology center districts overseen by
5

6 the Oklahoma Department of Career and Technology Education,
6

7 institutions of higher education, or commercial driver training
7

8 schools, to act as approved written examination proctors with regard
8

9 to any written examination required by this section. The
9

10 examination shall include a test of the applicant's:
10

11 a. eyesight,

12 b. ability to read and understand highway signs

13 regulating, warning and directing traffic,

14 c. knowledge of the traffic laws of this state including

15 a portion on bicycle and motorcycle safety, and

16 d. ability, by actual demonstration, to exercise ordinary

17 and reasonable control in the operation of a motor

18 vehicle. The actual demonstration shall be conducted

19 in the type of motor vehicle for the class of driver

20 license being applied for.

21 The Department of Public Safety, in conjunction with Service
21

22 Oklahoma, may create a knowledge test that may be taken on the
22

23 Internet by an applicant applying for a Class D license.
23

Req. No. 3559 Page 165
1 Any licensee seeking to apply for a driver license of another class
1

2 which is not covered by the licensee's current driver license shall
2

3 be considered an applicant for an original license for that class.
3

4 2. Service Oklahoma shall have the authority to waive the

5 requirement of any part of the examination required in paragraph 1
5

6 of this subsection for those applicants whose driving record meets
6

7 the standards set by the Department of Public Safety and surrender
7

8 either of the following:
8

9 a. a valid unexpired driver license issued by any state

10 or country for the same type or types of vehicles, or

11 b. an expired driver license that:

12 (1) is not expired more than six (6) months past the

13 expiration date listed on the driver license, and

14 (2) is not a Class A, B or C commercial driver

15 license or commercial driver license permit.

16 3. Service Oklahoma shall accept skills test results from

17 another state for Class A, B or C license applicants who have
17

18 successfully completed commercial motor vehicle driver training in
18

19 that state and successfully passed the skills test in that state;
19

20 provided, Service Oklahoma shall not accept skills test results from
20

21 another state when the applicant has not successfully completed
21

22 commercial motor vehicle driver training in that state. Nothing in
22

23 this section shall be construed to prohibit Service Oklahoma from
23

Req. No. 3559 Page 166
1 administering the skills test to any applicant who has successfully
1

2 completed commercial vehicle driver training in another state.
2

3 4. All applicants requiring a hazardous materials endorsement

4 shall be required, for the renewal of the endorsement, to
4

5 successfully complete the examination and to submit to a security
5

6 threat assessment performed by the Transportation Security
6

7 Administration of the Department of Homeland Security as required by
7

8 and pursuant to 49 C.F.R., Part 1572, which shall be used to
8

9 determine whether the applicant is eligible for renewal of the
9

10 endorsement pursuant to federal law and regulation.
10

11 5. Service Oklahoma, or an approved written examination

12 proctor, shall give the complete examination as provided for in this
12

13 section within thirty (30) days from the date the application is
13

14 received, and the examination shall be given at a location within
14

15 one hundred (100) miles of the residence of the applicant. Service
15

16 Oklahoma shall make every effort to make the examination locations
16

17 and times convenient for applicants. Service Oklahoma shall
17

18 consider giving the examination at any public or private site, if
18

19 economically feasible and practicable, and if Service Oklahoma and
19

20 the owner or the governing body agree.
20

21 B. Any person holding a valid Oklahoma Class D license or

22 provisional driver license pursuant to Section 6-212 of this title
22

23 and applying for a Class A, B or C commercial license shall be
23

24 required to successfully complete all examinations as required for
24

Req. No. 3559 Page 167
1 the specified class. Failure to submit to Service Oklahoma
1

2 federally required medical certification information pursuant to 49
2

3 C.F.R., Part 391.41 et seq. shall result in an automatic downgrade
3

4 of a commercial license to a Class D license. Provided, however,
4

5 once the required medical certification information has been
5

6 received by Service Oklahoma, the license shall be reinstated to the
6

7 classification of the commercial license prior to the downgrade and
7

8 the holder of such a license shall not be required to reapply.
8

9 C. Except as provided in subsection E of Section 6-101 of this

10 title, any person holding a valid Oklahoma Class A, B or C
10

11 commercial license shall, upon time for renewal thereof, be entitled
11

12 to a Class D license without any type of testing or examination,
12

13 except for any endorsements thereon as otherwise provided for by
13

14 Section 6-110.1 of this title.
14

15 D. 1. Any certified driver education instructor who is

16 currently an operator or an employee of a commercial driver training
16

17 school in this state or, any driver education instructor employed by
17

18 any school district in this state, or any licensed operator or an
18

19 employee of a licensed operator shall be eligible to apply to be a
19

20 designated examiner of Service Oklahoma for the purposes of
20

21 administering the Class D driving skills portion of the Oklahoma
21

22 driving examination to any person who is eligible to take the
22

23 Oklahoma driving examination including, but not limited to, a person
23

24 who has been issued a learner permit or farm permit. Service
24

Req. No. 3559 Page 168
1 Oklahoma shall to the maximum extent possible accept electronic
1

2 signatures for all applications to be a designated examiner.
2

3 2. The Department of Public Safety, in conjunction with Service

4 Oklahoma, shall adopt a curriculum of required courses and training
4

5 to be offered to applicants who are qualified to apply to be a
5

6 designated examiner. The courses and training for certification
6

7 shall meet the same standards as required for driver examiners of
7

8 Service Oklahoma. Within thirty (30) days of the effective date of
8

9 this act, and by October 1 of each subsequent year, Service Oklahoma
9

10 shall publish a schedule for the subsequent calendar year of courses
10

11 and trainings which shall occur no less than twice per calendar
11

12 year. Service Oklahoma may schedule additional courses and
12

13 trainings based on demand. Service Oklahoma shall disclose how many
13

14 slots are available for each course or training and any restrictions
14

15 on how those slots may be allocated at the time of publishing the
15

16 schedule.
16

17 3. Each person applying to be a designated examiner shall be

18 required to pay an initial designated examiner certification fee of
18

19 One Thousand Dollars ($1,000.00). Upon successful completion of
19

20 training prescribed by paragraph 2 of this subsection, the person
20

21 shall be required to pay an annual designated examiner certification
21

22 fee of Five Hundred Dollars ($500.00). If an applicant for the
22

23 designated examiner program is employed by an Oklahoma public school
23

24 system that offers driver education, and he or she administers the
24

Req. No. 3559 Page 169
1 skills test only to students enrolled in a public school driver
1

2 education program, the certification fee may be waived by Service
2

3 Oklahoma. Each designated examiner certification shall expire on
3

4 the last day of the calendar year and may be renewed upon
4

5 application to Service Oklahoma. The designated examiner
5

6 certification fees collected by Service Oklahoma pursuant to this
6

7 subsection shall be deposited to the credit of the Department of
7

8 Public Safety Restricted Revolving Fund to be used for the purposes
8

9 of this subsection, through October 31, 2022. Beginning November 1,
9

10 2022, the designated examiner certification fees collected by
10

11 Service Oklahoma pursuant to this subsection shall be deposited to
11

12 the credit of the Service Oklahoma Revolving Fund. No designated
12

13 examiner certification fee shall be refunded in the event that
13

14 certification is denied, suspended or revoked.
14

15 4. A designated examiner may charge a fee for each Class D

16 driving skills examination given, whether the person being examined
16

17 passes or fails the examination.
17

18 5. Service Oklahoma shall conduct an annual complete nationwide

19 criminal history background check on require each designated
19

20 examiner and a complete nationwide criminal history background check
20

21 on each designated examiner applicant and driver education
21

22 instructor applicant to submit to an electronic national criminal
22

23 history record check pursuant to Section 150.9 of Title 74 of the
23

24 Oklahoma Statutes. The fees for the background record check shall
24

Req. No. 3559 Page 170
1 be borne by the designated examiner or, designated examiner
1

2 applicant, driver education instructor, or driver education
2

3 instructor applicant.
3

4 6. The Department of Public Safety, in conjunction with Service

5 Oklahoma, shall promulgate rules to implement and administer the
5

6 provisions of this subsection.
6

7 E. 1. Upon application and approval of Service Oklahoma, any

8 public or private commercial truck driving school that has or
8

9 maintains a program instructing students for a Class A, B or C
9

10 license, public transit agency, state, county or municipal
10

11 government agency in this state, such as local school districts, the
11

12 Oklahoma Department of Career and Technology Education, or
12

13 institutions of higher education, or a private entity, shall be
13

14 authorized to hire or employ designated examiners approved by
14

15 Service Oklahoma to be third-party examiners of the Class A, B or C
15

16 driving skills portion and/or knowledge written portion, pursuant to
16

17 subsection A of this section, of the Oklahoma driving examination.
17

18 All designated examiners must successfully have completed the
18

19 courses and training as outlined in paragraph 2 of this subsection.
19

20 Service Oklahoma shall be required to approve at least one public
20

21 transit agency that has or maintains a program instructing students
21

22 for a Class A, B or C license to hire or employ third-party
22

23 examiners pursuant to this section. It shall be permissible for any
23

24 public transit agency operating in this state to utilize the third-
24

Req. No. 3559 Page 171
1 party examiners hired or employed by a public transit agency
1

2 approved by Service Oklahoma.
2

3 2. The Department of Public Safety, in conjunction with Service

4 Oklahoma, shall adopt a curriculum of required courses and training
4

5 to be offered to third-party examiners. The courses and training
5

6 for certification shall meet the same standards as required for
6

7 commercial driver examiners of Service Oklahoma.
7

8 3. Service Oklahoma shall require each third-party examiner

9 applicant and commercial school driver education instructor
9

10 applicant to submit to an electronic national criminal history
10

11 record check pursuant to Section 150.9 of Title 74 of the Oklahoma
11

12 Statutes. On or before December 1, 2022, Service Oklahoma shall
12

13 require each third-party examiner or commercial school driver
13

14 education instructor to submit to an electronic national criminal
14

15 history record check pursuant to Section 150.9 of Title 74 of the
15

16 Oklahoma Statutes. The fees for the background check shall be borne
16

17 by the third-party examiner, third-party examiner applicant,
17

18 commercial school driver education instructor or commercial school
18

19 driver education instructor applicant.
19

20 F. Service Oklahoma shall promulgate rules to:

21 1. Implement and administer the provisions of this section

22 based on requirements set forth in Section 383.75 of Title 49 of the
22

23 Code of Federal Regulations;
23

Req. No. 3559 Page 172
1 2. Establish a process to inform any school, public transit

2 agency, examiner, or state, county or municipal government agency,
2

3 who has been denied, within forty-five (45) days from the denial;
3

4 3. Create an appeal process for any school, public transit

5 agency, examiner, or state, county or municipal government agency
5

6 denied; and
6

7 4. If the initial application for approval was denied, limit

8 the number of times an individual school, public transit agency,
8

9 individual examiner applicant, or state, county or municipal
9

10 government agency may reapply in a calendar year to two
10

11 reapplications.
11

12 SECTION 50. REPEALER 47 O.S. 2021, Section 6-110, as

13 last amended by Section 44, Chapter 452, O.S.L. 2024 (47 O.S. Supp.
13

14 2025, Section 6-110), is hereby repealed.
14

15 SECTION 51. REPEALER 47 O.S. 2021, Section 6-110, as

16 last amended by Section 6, Chapter 11, O.S.L. 2024 (47 O.S. Supp.
16

17 2025, Section 6-110), is hereby repealed.
17

18 SECTION 52. AMENDATORY 47 O.S. 2021, Section 6-111, as

19 last amended by Section 2, Chapter 310, O.S.L. 2025 (47 O.S. Supp.
19

20 2025, Section 6-111), is amended to read as follows:
20

21 Section 6-111. A. 1. Service Oklahoma shall, upon payment of

22 the required fee, issue to every applicant qualifying therefor a
22

23 Class A, B, C or D driver license or identification card as applied
23

24 for, which license or card shall bear thereon a distinguishing
24

Req. No. 3559 Page 173
1 alphanumeric identification assigned to the licensee or cardholder,
1

2 date of issuance and date of expiration of the license or card, the
2

3 full legal name, signature or computerized signature, date of birth,
3

4 residence address, unless specified as an exception in 6 C.F.R.,
4

5 Section 37.17, sex, a computerized color image of the licensee or
5

6 cardholder taken in accordance with Service Oklahoma rules and
6

7 security features as determined by Service Oklahoma. The image
7

8 shall depict a full front unobstructed view of the entire face of
8

9 the licensee or cardholder; provided, a commercial learner permit
9

10 shall not bear the image of the licensee. When any person is issued
10

11 both a driver license and an identification card, Service Oklahoma
11

12 shall ensure the information on both the license and the card are
12

13 the same, unless otherwise provided by law.
13

14 2. A driver license or identification card issued by Service

15 Oklahoma on or after March 1, 2004, shall bear thereon the county of
15

16 residence of the licensee or cardholder.
16

17 3. Service Oklahoma may cancel the distinguishing number, when

18 that distinguishing number is another person's Social Security
18

19 number, assign a new distinguishing alphanumeric identification, and
19

20 issue a new license or identification card without charge to the
20

21 licensee or cardholder.
21

22 4. Service Oklahoma may promulgate rules for inclusion of the

23 height and a brief description of the licensee or cardholder on the
23

Req. No. 3559 Page 174
1 face of the card or license identifying the licensee or cardholder
1

2 as deaf or hard-of-hearing.
2

3 5. It is unlawful for any person to apply, adhere, or otherwise

4 attach to a driver license or identification card any decal,
4

5 sticker, label, or other attachment. Any law enforcement officer is
5

6 authorized to remove and dispose of any unlawful decal, sticker,
6

7 label, or other attachment from the driver license of a person. The
7

8 law enforcement officer, the employing agency of the officer,
8

9 Service Oklahoma, and the State of Oklahoma shall be immune from any
9

10 liability for any loss suffered by the licensee, cardholder, or the
10

11 owner of the decal, sticker, label, or other attachment caused by
11

12 the removal and destruction of the decal, sticker, label, or other
12

13 attachment. Nothing in this section shall prohibit Service Oklahoma
13

14 from adopting, applying, adhering, or otherwise attaching decals,
14

15 stickers, labels, or other attachments to a driver license or
15

16 identification card.
16

17 6. Service Oklahoma may develop by rule a procedure which

18 complies with the provisions of subsection G of Section 6-101 of
18

19 this title whereby a person may apply for a renewal or replacement
19

20 Oklahoma Class D license or Oklahoma identification card.
20

21 B. 1. Service Oklahoma may issue or authorize the issuance of

22 a temporary permit or license to an applicant for a driver license
22

23 permitting such applicant to operate a motor vehicle while Service
23

24 Oklahoma is completing its investigation and determination of all
24

Req. No. 3559 Page 175
1 facts relative to such applicant's privilege to receive a license,
1

2 or while a permanent driver license is being produced and delivered
2

3 to the applicant. Such permit or license must be in the immediate
3

4 possession of the driver while operating a motor vehicle, and it
4

5 shall be invalid when the applicant's permanent driver license has
5

6 been issued and delivered or for good cause has been refused.
6

7 2. Service Oklahoma may issue or authorize the issuance of a

8 temporary identification card to an applicant, permitting the holder
8

9 the privileges otherwise granted by identification cards, while a
9

10 permanent driver license is being provided and delivered to the
10

11 applicant. Such card shall be invalid when the applicant's
11

12 permanent identification card has been issued and delivered, or for
12

13 good cause has been refused.
13

14 C. 1. Service Oklahoma may issue a restricted commercial

15 driver license to drivers eighteen (18) years of age or older for
15

16 any of the following specific farm-related service industries:
16

17 a. farm retail outlets and suppliers,

18 b. agri-chemical businesses,

19 c. custom harvesters, and

20 d. livestock feeders.

21 The applicant shall have held a valid driver license for at

22 least one (1) year. Applicants with more than two (2) years of
22

23 driving experience shall have a good driving record for the most
23

24 recent two-year period and shall meet all the requirements for a
24

Req. No. 3559 Page 176
1 commercial driver license. The restricted commercial driver license
1

2 shall not exceed the maximum total days that federal law allows.
2

3 Applicants for the restricted commercial driver license shall be
3

4 exempt from the knowledge and skills test. Application of the
4

5 restricted commercial driver license does not have to be used in
5

6 consecutive days. The use of the permit shall be declared at
6

7 application.
7

8 2. A "good driving record" as used in this subsection shall

9 mean an applicant:
9

10 a. has not had more than one license,

11 b. has not had any license suspended, revoked, or

12 canceled,

13 c. has not had any conviction for any type of

14 disqualifying offenses or serious traffic violations,

15 or

16 d. has not had any conviction for a violation of state or

17 local law relating to motor vehicle traffic control,

18 other than a parking violation, arising in connection

19 with any traffic accident and has no record of an

20 accident in which he or she is at fault.

21 3. The restricted commercial driver license shall not be valid

22 for operators of commercial motor vehicles beyond one hundred fifty
22

23 (150) miles from the place of business or the farm currently being
23

24 served. Such license shall be limited to Class B or C vehicles.
24

Req. No. 3559 Page 177
1 Holders of such licenses who transport hazardous materials which are
1

2 required to be placarded shall be limited to the following:
2

3 a. diesel fuel in quantities of one thousand (1,000)

4 gallons or less,

5 b. liquid fertilizers in vehicles with total capacities

6 of three thousand (3,000) gallons or less, and

7 c. solid fertilizers that are not mixed with any organic

8 substance.

9 No other placarded hazardous materials shall be transported by

10 holders of such licenses.
10

11 D. 1. Service Oklahoma may issue a non-domiciled commercial

12 learner permit or a non-domiciled commercial driver license.
12

13 2. A person applying for such permit or license must comply

14 with all testing and licensing requirements in accordance with
14

15 applicable federal regulations, state laws, and Service Oklahoma
15

16 rules. The expiration of the issued license shall be the same date
16

17 as the expiration of the visa for the non-domiciled worker. Service
17

18 Oklahoma may promulgate rules for the implementation of the process
18

19 to carry out the provisions of this section.
19

20 3. A person holding a non-domiciled commercial driver license

21 or non-domiciled commercial learner's permit within this state shall
21

22 also possess a valid work visa and provide proof of citizenship to
22

23 validate his or her identity while operating a commercial motor
23

24 vehicle. Proof of citizenship shall be demonstrated through
24

Req. No. 3559 Page 178
1 presentation of a birth certificate, naturalization certificate, or
1

2 valid passport.
2

3 4. A commercial motor carrier whose driver is found to be in

4 violation of this subsection shall be subject to a fine in the
4

5 amount of Three Thousand Dollars ($3,000.00) for each violation.
5

6 The proceeds of any penalties collected pursuant to this paragraph
6

7 shall be deposited in the Weigh Station Improvement Revolving Fund
7

8 created in Section 1167 of Title 47 of the Oklahoma Statutes.
8

9 5. A driver found to be in violation of this subsection shall

10 be prohibited from operating a commercial motor vehicle within this
10

11 state until such a time that the driver is able to meet the
11

12 identification provisions of this subsection. Any driver found to
12

13 be operating a motor vehicle within this state while under such
13

14 prohibition shall be guilty of a misdemeanor and upon conviction
14

15 shall be punished by a fine not to exceed One Thousand Dollars
15

16 ($1,000.00), or by imprisonment for not more than ninety (90) days,
16

17 or by both such fine and imprisonment. Any fine collected pursuant
17

18 to the provisions of this paragraph shall be deposited to the Trauma
18

19 Care Assistance Revolving Fund created in Section 1-2530.9 of Title
19

20 63 of the Oklahoma Statutes.
20

21 6. The commercial motor carrier shall be notified of the

22 location of any commercial motor vehicle involved in a violation,
22

23 and, upon payment of the fine in full and presentation of a driver
23

24 who meets all requirements to operate a commercial motor vehicle
24

Req. No. 3559 Page 179
1 within this state, shall take possession of the vehicle. If the
1

2 commercial motor carrier is unable to either pay such fine or
2

3 present such driver within twelve (12) hours after notification, the
3

4 owner of any cargo being transported by the commercial motor vehicle
4

5 shall be notified and allowed to arrange for the transfer of the
5

6 cargo to another vehicle. Neither the state nor the owner of such
6

7 cargo shall be liable for any reasonable action to transfer such
7

8 cargo.
8

9 7. As used in this subsection, a non-domiciled commercial

10 driver license or non-domiciled commercial learner permit shall have
10

11 the same meaning as that provided in 49 C.F.R., Section 383.5.
11

12 E. 1. Service Oklahoma shall develop a procedure whereby a

13 person applying for an original, renewal or replacement Class A, B,
13

14 C or D driver license or identification card who is required to
14

15 register as a convicted sex offender with the Department of
15

16 Corrections pursuant to the provisions of the Sex Offenders
16

17 Registration Act and who the Department of Corrections designates as
17

18 an aggravated or habitual offender pursuant to subsection J of
18

19 Section 584 of Title 57 of the Oklahoma Statutes shall be issued a
19

20 license or card bearing the words "Sex Offender".
20

21 2. Service Oklahoma shall notify every person subject to

22 registration under the provisions of Section 1-101 et seq. of this
22

23 title who holds a current Class A, B, C or D driver license or
23

24 identification card that such person is required to surrender the
24

Req. No. 3559 Page 180
1 license or card to Service Oklahoma within one hundred eighty (180)
1

2 days from the date of the notice.
2

3 3. Upon surrendering the license or card for the reason set

4 forth in this subsection, application may be made with Service
4

5 Oklahoma for a replacement license or card bearing the words "Sex
5

6 Offender".
6

7 4. Failure to comply with the requirements set forth in such

8 notice shall result in cancellation of the person's license or card.
8

9 Such cancellation shall be in effect for one (1) year, after which
9

10 time the person may make application with Service Oklahoma for a new
10

11 license or card bearing the words "Sex Offender". Continued use of
11

12 a canceled license or card shall constitute a misdemeanor and shall,
12

13 upon conviction thereof, be punishable by a fine of not less than
13

14 Twenty-five Dollars ($25.00), nor more than Two Hundred Dollars
14

15 ($200.00). When an individual is no longer required to register as
15

16 a convicted sex offender with the Department of Corrections pursuant
16

17 to the provisions of the Sex Offenders Registration Act, the
17

18 individual shall be eligible to receive a driver license or
18

19 identification card which does not bear the words "Sex Offender".
19

20 F. Nothing in subsection E of this section shall be deemed to

21 impose any liability upon or give rise to a cause of action against
21

22 any employee, agent or official of the Department of Corrections for
22

23 failing to designate a sex offender as an aggravated or habitual
23

Req. No. 3559 Page 181
1 offender pursuant to subsection J of Section 584 of Title 57 of the
1

2 Oklahoma Statutes.
2

3 G. A person subject to an order for the installation of an

4 ignition interlock device shall be required by Service Oklahoma to
4

5 submit his or her driver license for a replacement. The replacement
5

6 driver license shall bear the words "Interlock Required" and such
6

7 designation shall remain on the driver license for the duration of
7

8 the order requiring the ignition interlock device. The replacement
8

9 license shall be subject to the same expiration and renewal
9

10 procedures provided by law. Upon completion of the requirements for
10

11 the interlock device, a person may apply for a replacement driver
11

12 license.
12

13 H. Service Oklahoma shall develop a procedure whereby a person

14 applying for an original, renewal or replacement Class D driver
14

15 license who has been granted modified driving privileges under this
15

16 title shall be issued a Class D driver license which identifies the
16

17 license as a modified license.
17

18 SECTION 53. REPEALER 47 O.S. 2021, Section 6-111, as

19 last amended by Section 5, Chapter 330, O.S.L. 2025 (47 O.S. Supp.
19

20 2025, Section 6-111), is hereby repealed.
20

21 SECTION 54. AMENDATORY 47 O.S. 2021, Section 6-301, as

22 last amended by Section 3, Chapter 38, O.S.L. 2025 (47 O.S. Supp.
22

23 2025, Section 6-301), is amended to read as follows:
23

Req. No. 3559 Page 182
1 Section 6-301. It shall be unlawful for any person to commit

2 any of the acts specified in paragraph 1 or 2 of this section in
2

3 relation to an Oklahoma driver license or identification card
3

4 authorized to be issued by Service Oklahoma pursuant to the
4

5 provisions of Sections 6-101 through 6-309 of this title or any
5

6 driver license or other evidence of driving privilege or
6

7 identification card authorized to be issued by the state of origin.
7

8 1. It is a misdemeanor for any licensee:

9 a. to display or cause or permit to be displayed one's

10 own license after such license has been suspended,

11 revoked, or canceled or to possess one's own license

12 after having received notice of its suspension,

13 revocation, or cancellation,

14 b. to lend one's own license or identification card to

15 any other person or knowingly permit the use thereof

16 by another,

17 c. to display or cause or permit to be displayed or to

18 possess a license or identification card issued to

19 oneself which bears altered information concerning the

20 date of birth, expiration date, sex, height, eye

21 color, weight, or license or card number,

22 d. to fail or refuse to surrender to Service Oklahoma

23 upon its lawful demand any license or identification

24 card which has been suspended, revoked, or canceled,

Req. No. 3559 Page 183
1 e. to permit any unlawful use of a license or

2 identification card issued to oneself,

3 f. to do any act forbidden or fail to perform any act

4 required by this chapter, excepting those acts as

5 provided in paragraph 2 of this section,

6 g. to display or represent as one's own any license or

7 identification card not issued to such person unless

8 under conditions provided in subparagraph e of

9 paragraph 2 of this section, or

10 h. to add to, delete from, alter, or deface the required

11 information on a driver license or identification

12 card.

13 2. It is a felony for any person:

14 a. to create, publish, or otherwise manufacture an

15 Oklahoma or other state license or identification card

16 or facsimile thereof, or to create, manufacture, or

17 possess an engraved plate or other such device, card,

18 laminate, digital image or file, or software for the

19 printing of an Oklahoma or other state license or

20 identification card or facsimile thereof, except as

21 authorized pursuant to this title,

22 b. to display or cause or permit to be displayed or to

23 knowingly possess any state counterfeit or fictitious

24 license or identification card,

Req. No. 3559 Page 184
1 c. to display or cause to be displayed or to knowingly

2 possess any state license or identification card

3 bearing a fictitious or forged name or signature,

4 d. to display or cause to be displayed or to knowingly

5 possess any state license or identification card

6 bearing the photograph of any person, other than the

7 person named thereon as licensee,

8 e. to display or represent as one's own, any license or

9 identification card not issued to him or her, for the

10 purpose of committing a fraud in any commercial

11 transaction or to mislead a peace officer in the

12 performance of his or her duties, or

13 f. to use a false or fictitious name in any application

14 for a license or identification card or to knowingly

15 make a false statement or to knowingly conceal a

16 material fact or otherwise commit a fraud in any such

17 application.

18 3. It is a felony for any employee or person authorized to

19 issue or approve the issuance of licenses or identification cards
19

20 under this title to knowingly issue or attempt to issue a license or
20

21 identification card or to knowingly give approval for, cause, or
21

22 attempt to cause a license or identification card to be issued:
22

23 a. to a person not entitled thereto,

24 b. bearing erroneous information thereon, or

Req. No. 3559 Page 185
1 c. bearing the photograph of a person other than the

2 person named thereon.

3 Such conduct shall be grounds for termination of employment of the
3

4 employee.
4

5 4. The violation of any of the provisions of paragraph 1 of

6 this section shall constitute a misdemeanor and shall, upon
6

7 conviction thereof, be punishable by a fine not less than Twenty-
7

8 five Dollars ($25.00), nor more than Two Hundred Dollars ($200.00);
8

9 the violation of any of the provisions of paragraph 2 or 3 of this
9

10 section shall constitute a Class D1 felony offense and shall, upon
10

11 conviction thereof, be punishable by a fine not to exceed Ten
11

12 Thousand Dollars ($10,000.00), or a term of imprisonment in the
12

13 custody of the Department of Corrections not to exceed seven (7)
13

14 years as provided for in subsections B through F of Section 20N of
14

15 Title 21 of the Oklahoma Statutes, or by both such fine and
15

16 imprisonment.
16

17 5. Notwithstanding any provision of this section, the

18 Department of Public Safety, through the Identity Verification Unit
18

19 established pursuant to Section 2-106.3 of this title, may, upon the
19

20 request of the chief administrator of a law enforcement, military,
20

21 or intelligence agency, authorize the issuance to and display and
21

22 possession by a person of a license which would otherwise be a
22

23 violation of this section, for the sole purpose of aiding in a
23

24 criminal investigation or a military or intelligence operation.
24

Req. No. 3559 Page 186
1 While acting pursuant to such authorization by the Department, such
1

2 person shall not be prosecuted for a violation under this section
2

3 unless the person exceeds the scope or duration of the Department's
3

4 authorization. Upon termination of such investigation or operation
4

5 or upon request of the Department, the chief administrator of the
5

6 law enforcement agency that requests the issuance of the license and
6

7 the recipient of the license shall be jointly responsible to ensure
7

8 the license is promptly returned to the Department. The Department
8

9 and Service Oklahoma shall enter into interagency agreements as may
9

10 be necessary to fulfill the powers and duties set forth in this
10

11 paragraph. The Department may enter into interagency agreements
11

12 with law enforcement agencies that request issuance of such a
12

13 license to set forth the terms of the authorization for use of the
13

14 license, the terms for custody and control of the license, and the
14

15 terms for duration and revocation of authorization to use or possess
15

16 the license.
16

17 SECTION 55. REPEALER 47 O.S. 2021, Section 6-301, as

18 last amended by Section 516, Chapter 486, O.S.L. 2025 (47 O.S. Supp.
18

19 2025, Section 6-301), is hereby repealed.
19

20 SECTION 56. AMENDATORY 47 O.S. 2021, Section 563, as

21 last amended by Section 3, Chapter 448, O.S.L. 2025 (47 O.S. Supp.
21

22 2025, Section 563), is amended to read as follows:
22

23 Section 563. A. There is hereby created the Oklahoma New Motor

24 Vehicle Commission, to be composed of nine (9) members. Seven of
24

Req. No. 3559 Page 187
1 the members shall have been engaged in the manufacture,
1

2 distribution, or sale of new motor vehicles and two members shall be
2

3 lay members, all to be appointed by the Governor of the State of
3

4 Oklahoma this state, with the advice and consent of the Senate.
4

5 Appointments shall be made within thirty (30) days after November 1,
5

6 1985. Each of the Commissioners thus appointed shall, at the time
6

7 of the appointment, be a resident in good faith of this state, shall
7

8 be of good moral character, and each of the industry related
8

9 industry-related Commissioners shall have been actually engaged in
9

10 the manufacture, distribution, or sale of new motor vehicles, new
10

11 powersport vehicles or new recreational vehicles for not less than
11

12 ten (10) years preceding the appointment. The members of the
12

13 Commission shall serve at the pleasure of the Governor.
13

14 B. 1. The Commissioners shall elect a chair from amongst them

15 whose term shall be for one (1) year with the right to succeed
15

16 himself or herself.
16

17 2. There shall be three at large at-large members of the

18 Commission. Six members of the Commission shall be appointed from
18

19 the following geographical areas with at least one member from each
19

20 area:
20

21 a. four areas of the state shall be the northwest,

22 northeast, southwest, and southeast sections

23 designated by Interstate 35 dividing the state east

24 and west and Interstate 40 dividing the state north

Req. No. 3559 Page 188
1 and south, excluding Oklahoma County and Tulsa County,

2 and

3 b. two additional areas shall be Oklahoma County and

4 Tulsa County.

5 There shall not be more than two members of the Commission from any
5

6 one area.
6

7 C. The terms of office of the members first appointed to the

8 Commission shall be as follows:
8

9 1. The members appointed from the northwest, northeast, and

10 southwest areas shall serve until June 30, 1987;
10

11 2. The members appointed from the southeast area and Oklahoma

12 County and Tulsa County shall serve until June 30, 1989; and
12

13 3. The members appointed at large shall serve until June 30,

14 1991.
14

15 Each member shall serve until a successor is appointed and

16 qualifies. Thereafter, the term of office of each member of the
16

17 Commission shall be for six (6) years. The term of office of any
17

18 member will automatically expire if the member moves out of the
18

19 geographical area from which the member was appointed. In event of
19

20 death, resignation, removal, or term automatically expiring of any
20

21 person serving on the Commission, the vacancy shall be filled by
21

22 appointment as provided for the unexpired portion of the term. The
22

23 Commission shall meet at in Oklahoma City and complete its
23

24 organization immediately after the membership has been appointed and
24

Req. No. 3559 Page 189
1 has qualified. The chair and each member of the Commission shall
1

2 take and subscribe to the oath of office required of public
2

3 officers.
3

4 D. The members of the Commission shall receive reimbursement

5 for subsistence and traveling expenses necessarily incurred in the
5

6 performance of their duties as provided by the State Travel
6

7 Reimbursement Act.
7

8 E. The Commission shall appoint a qualified person to serve as

9 Executive Director thereof, which person shall have had not less
9

10 than ten (10) years of experience in the motor vehicle industry.
10

11 The Executive Director shall be appointed for a term of six (6)
11

12 years, and shall not be subject to dismissal or removal without
12

13 cause. The Commission shall fix the salary and prescribe the duties
13

14 of the Executive Director. The Executive Director shall devote such
14

15 time as necessary to fulfill the duties thereof, and before entering
15

16 upon such duties shall take and subscribe to the oath of office.
16

17 The Executive Director may employ such clerical, technical, and
17

18 other help and legal services and incur such expenses as may be
18

19 necessary for the proper discharge of the duties of the Executive
19

20 Director under Section 561 et seq. of this title. The Commission
20

21 shall maintain its office and transact its business in Oklahoma
21

22 City, and it is authorized to adopt and use a seal. The Executive
22

23 Director is hereby authorized to hire, retain, or otherwise acquire
23

24 the services of an attorney to represent the Commission in any and
24

Req. No. 3559 Page 190
1 all state and federal courts, and assist the Commission in any and
1

2 all business or legal matters that may come before it. The attorney
2

3 so representing the Commission shall discharge the duties under the
3

4 direction of the Executive Director.
4

5 F. The Commission is hereby vested with the powers necessary to

6 enable it to fully and effectively carry out the provisions and
6

7 objects of Section 561 et seq. of this title and Section 1137.4 of
7

8 this title, and is hereby authorized and empowered to make and
8

9 enforce all reasonable rules and to adopt and prescribe all forms
9

10 necessary to accomplish such purpose. All forms used by a new motor
10

11 vehicle dealer or powersports vehicle dealer to facilitate the
11

12 delivery of a vehicle pending approval of financing shall be
12

13 approved by the Commission. Spot delivery agreement forms shall be
13

14 required for all new motor vehicle or powersport vehicle deliveries
14

15 subject to dealers finding lending institutions to purchase the
15

16 retail or lease installment contracts executed by the purchasing and
16

17 selling parties.
17

18 G. All fees, charges and fines collected under the provisions

19 of Section 561 et seq. of this title and Section 1137.4 of this
19

20 title shall be deposited by the Executive Director in the State
20

21 Treasury in accordance with the depository laws of this state in a
21

22 special fund to be known as the "Oklahoma New Motor Vehicle
22

23 Commission Fund", which is hereby created, and except as hereinafter
23

24 provided the monies in the fund shall be used by the Commission for
24

Req. No. 3559 Page 191
1 the purpose of carrying out and enforcing the provisions of Section
1

2 561 et seq. of this title and Section 1137.4 of this title.
2

3 Expenditures from the fund shall be made upon vouchers approved by
3

4 the Commission or its authorized officers.
4

5 At the close of each fiscal year, the Commission shall file with

6 the Governor and the State Auditor and Inspector a true and correct
6

7 report of all fees, fines, and charges collected and received by it
7

8 during the preceding fiscal year and shall at the same time pay into
8

9 the General Revenue Fund of the state a sum equal to ten percent
9

10 (10%) of the fees, fines, and charges collected and received.
10

11 All expenses incurred by the Commission in carrying out the

12 provisions of Section 561 et seq. of this title and Section 1137.4
12

13 of this title, including but not limited to per diem, wages,
13

14 salaries, rent, postage, advertising, supplies, bond premiums,
14

15 travel, and subsistence for the Commissioners, the Executive
15

16 Director, employees, and legal counsel, and printing and utilities,
16

17 shall be a proper charge against such fund, exclusive of the portion
17

18 thereof to be paid into the General Revenue Fund as above set out.
18

19 In no event shall liability ever accrue hereunder against this state
19

20 in any sum whatsoever, or against the Oklahoma New Motor Vehicle
20

21 Commission Fund, in excess of the ninety percent (90%) of the fees,
21

22 fines, and charges deposited therein.
22

Req. No. 3559 Page 192
1 SECTION 57. REPEALER 47 O.S. 2021, Section 563, as last

2 amended by Section 3, Chapter 236, O.S.L. 2024 (47 O.S. Supp. 2025,
2

3 Section 563), is hereby repealed.
3

4 SECTION 58. AMENDATORY 47 O.S. 2021, Section 564, as

5 last amended by Section 4, Chapter 448, O.S.L. 2025 (47 O.S. Supp.
5

6 2025, Section 564), is amended to read as follows:
6

7 Section 564. A. It shall be unlawful for any person, firm,

8 association, corporation, or partnership, trust, joint venture, or
8

9 common entity thereof, to engage in business as, or serve in the
9

10 capacity of, or act as a new motor vehicle dealer, powersports
10

11 vehicle dealer, or new motor vehicle manufacturer, or distributor ,
11

12 factory branch, distributor branch , factory representative, or
12

13 distributor representative, as defined in Section 562 of this title,
13

14 in this state without first obtaining a license therefor as provided
14

15 for by law. Any person, firm, association, corporation, or
15

16 partnership, trust, joint venture, or common entity thereof,
16

17 engaging in more than one of such capacities or having more than one
17

18 place where such business is carried on or conducted in this state
18

19 shall be required to obtain and hold a current license for each
19

20 thereof. Provided that, a new motor vehicle dealer's or powersports
20

21 vehicle dealer's license shall authorize one person to sell without
21

22 the necessity of registering as a salesperson, so long as such
22

23 person is an owner of the dealership, or the person designated as
23

24 principal in the dealer's franchise or the managing officer or one
24

Req. No. 3559 Page 193
1 partner if no principal person is named in the franchise. It is
1

2 further provided that a factory or an entity affiliated by any
2

3 ownership or control by the factory shall not be permitted to engage
3

4 in the activities of a dealer as defined in paragraph 2 of Section
4

5 562 of this title or to be licensed as a new motor vehicle dealer in
5

6 this state, except as provided by subparagraph b of paragraph 12 of
6

7 Section 565 of this title.
7

8 B. Applications for licenses required to be obtained under the

9 provisions of Section 561 et seq. of this title shall be verified by
9

10 the oath or affirmation of the applicant and shall be on forms
10

11 prescribed by the Oklahoma New Motor Vehicle Commission and
11

12 furnished to the applicants, and shall contain information as the
12

13 Commission deems necessary to enable it to fully determine the
13

14 qualifications and eligibility of the several applicants to receive
14

15 the license or licenses applied for. The Commission shall require
15

16 in such application, or otherwise, information relating to the
16

17 applicant's current financial standing, the applicant's business
17

18 integrity, the applicant's criminal convictions or criminal or civil
18

19 court proceedings history, whether the applicant has an established
19

20 place of business and is primarily engaged in the pursuit,
20

21 avocation, or business for which a license, or licenses, are applied
21

22 for, and whether the applicant is able to properly conduct the
22

23 business for which a license, or licenses, are applied for, and such
23

24 other pertinent information consistent with the safeguarding of the
24

Req. No. 3559 Page 194
1 public interest and the public welfare. All applications for
1

2 license or licenses shall be accompanied by the appropriate fee or
2

3 fees therefor in accordance with the schedule thereof hereinafter
3

4 set out. In the event any application is denied and the license
4

5 applied for is not issued, the entire license fee shall be returned
5

6 to the applicant. All licenses issued under the provisions of
6

7 Section 561 et seq. of this title shall expire on June 30, following
7

8 the date of issue and shall be nontransferable. All applications
8

9 for renewal of a license for a new motor vehicle dealer, powersports
9

10 vehicle dealer, manufacturer, distributor, factory branch,
10

11 distributor branch, or manufacturer's or distributor's
11

12 representative shall be submitted by June 1 of each year, and such
12

13 license or licenses will be issued by July 1. If applications have
13

14 not been made for renewal of licenses at the times described in this
14

15 subsection, it shall be illegal for any person to represent himself
15

16 or herself and act as a dealer, manufacturer, distributor, or
16

17 manufacturer's or distributor's representative. Service Oklahoma
17

18 and licensed operators will be notified not to accept manufacturers'
18

19 statements or certificates of origin for unlicensed dealers until
19

20 such time as their licenses have been issued by the Commission.
20

21 C. The schedule of license fees to be charged and received by

22 the Commission for the licenses issued hereunder shall be as
22

23 follows:
23

Req. No. 3559 Page 195
1 1. For each manufacturer, distributor, factory branch, or

2 distributor branch of new motor vehicles or powersports vehicles,
2

3 Four Hundred Dollars ($400.00) initial fee with annual renewal fee
3

4 of Three Hundred Dollars ($300.00);
4

5 2. For each factory representative or distributor

6 representative, One Hundred Dollars ($100.00) annually;
6

7 3. For each new motor vehicle dealer, initial fee of Three

8 Hundred Dollars ($300.00) per franchise sold at each location
8

9 licensed, with an annual renewal fee of One Hundred Dollars
9

10 ($100.00) per franchise sold at each location licensed per year; and
10

11 4. For each powersports vehicle dealer, initial fee of Three

12 Hundred Dollars ($300.00) per manufacturer represented by the dealer
12

13 at each location licensed, with an annual renewal fee of One Hundred
13

14 Dollars ($100.00) per manufacturer represented by the dealer at each
14

15 location licensed per year.
15

16 D. The licenses issued to each new motor vehicle dealer, new

17 powersports vehicle dealer, manufacturer, distributor, factory
17

18 branch, or distributor branch shall specify the location thereof.
18

19 In case such location is changed, the Commission may endorse the
19

20 change of location on the license without charge unless the change
20

21 of address triggers a relocation of a new motor vehicle dealer or
21

22 new powersports vehicle dealer pursuant to the provisions of Section
22

23 578.1 of this title. The licenses shall be posted in a conspicuous
23

24 place in the licensee's place or places of business.
24

Req. No. 3559 Page 196
1 Every representative of a factory or distributor shall

2 physically possess the license when engaged in business and shall
2

3 display such upon request. The name of the employer shall be stated
3

4 on the representative's license.
4

5 E. The new powersports vehicle dealer license shall only allow

6 the sale of the specific types of powersports vehicles authorized by
6

7 the manufacturer and agreed to by the powersports dealer.
7

8 SECTION 59. REPEALER 47 O.S. 2021, Section 564, as last

9 amended by Section 2, Chapter 119, O.S.L. 2025 (47 O.S. Supp. 2025,
9

10 Section 564), is hereby repealed.
10

11 SECTION 60. AMENDATORY 47 O.S. 2021, Section 565, as

12 last amended by Section 6, Chapter 448, O.S.L. 2025 (47 O.S. Supp.
12

13 2025, Section 565), is amended to read as follows:
13

14 Section 565. A. The Oklahoma New Motor Vehicle Commission may

15 deny an application for a license, revoke or suspend a license, or
15

16 impose a fine against any person or entity, not to exceed Ten
16

17 Thousand Dollars ($10,000.00) per occurrence, that violates any
17

18 provision of Sections 561 through 567, 572, 578.1, 579, and 579.1 of
18

19 this title or for any of the following reasons:
19

20 1. On satisfactory proof of unfitness of the applicant in any

21 application for any license under the provisions of Section 561 et
21

22 seq. of this title;
22

Req. No. 3559 Page 197
1 2. For any material misstatement made by an applicant in any

2 application for any license under the provisions of Section 561 et
2

3 seq. of this title;
3

4 3. For any failure to comply with any provision of Section 561

5 et seq. of this title or any rule promulgated by the Commission
5

6 under authority vested in it by Section 561 et seq. of this title;
6

7 4. A change of condition after license is granted resulting in

8 failure to maintain the qualifications for license;
8

9 5. Being a new motor vehicle dealer or new powersports vehicle

10 dealer who:
10

11 a. has required a purchaser of a new motor vehicle or new

12 powersports vehicle, as a condition of sale and

13 delivery thereof, to also purchase special features,

14 appliances, accessories, or equipment not desired or

15 requested by the purchaser and installed by the new

16 motor vehicle dealer or new powersports vehicle

17 dealer,

18 b. uses any false or misleading advertising in connection

19 with business as a new motor vehicle dealer or new

20 powersports vehicle dealer,

21 c. has committed any unlawful act which resulted in the

22 revocation of any similar license in another state,

Req. No. 3559 Page 198
1 d. has failed or refused to perform any written agreement

2 with any retail buyer involving the sale of a motor

3 vehicle or powersports vehicle,

4 e. has been convicted of a felony crime that

5 substantially relates to the occupation of a new motor

6 vehicle dealer or new powersports vehicle dealer and

7 poses a reasonable threat to public safety,

8 f. has committed a fraudulent act in selling, purchasing,

9 or otherwise dealing in new motor vehicles or new

10 powersports vehicles or has misrepresented the terms

11 and conditions of a sale, purchase or contract for

12 sale or purchase of a new motor vehicle or new

13 powersports vehicle or any interest therein including

14 an option to purchase such vehicle,

15 g. has failed to meet or maintain the conditions and

16 requirements necessary to qualify for the issuance of

17 a license, or

18 h. completes any sale or transaction of an extended

19 service contract, extended maintenance plan, or

20 similar product using contract forms that do not

21 conspicuously disclose the identity of the service

22 contract provider;

23 6. Being a vehicle salesperson who is not employed as such by a

24 licensed new motor vehicle dealer or powersports vehicle dealer;
24

Req. No. 3559 Page 199
1 7. Being a new motor vehicle dealer or new powersports vehicle

2 dealer who:
2

3 a. does not have an established place of business,

4 b. does not provide for a suitable repair shop separate

5 from the display room with ample space to repair or

6 recondition one or more vehicles at the same time, and

7 which is staffed with properly trained and qualified

8 repair technicians and is equipped with such parts,

9 tools, and equipment as may be requisite for the

10 servicing of motor vehicles in such a manner as to

11 make them comply with the safety laws of this state

12 and to properly fulfill the dealer's or manufacturer's

13 warranty obligation,

14 c. does not hold a franchise in effect with a

15 manufacturer or distributor of new or unused vehicles

16 for the sale of the same and is not authorized by the

17 manufacturer or distributor to render predelivery

18 preparation of such vehicles sold to purchasers and to

19 perform any authorized post-sale work pursuant to the

20 manufacturer's or distributor's warranty,

21 d. employs or utilizes the services of used motor vehicle

22 lots or dealers or other unlicensed persons or

23 unregistered persons in connection with the sale of

24 new vehicles,

Req. No. 3559 Page 200
1 e. does not properly service a new motor vehicle or new

2 powersports vehicle before delivery of same to the

3 original purchaser thereof, or

4 f. fails to order and stock a reasonable number of new

5 motor vehicles necessary to meet consumer demand for

6 each of the new motor vehicles included in the new

7 motor vehicle dealer's franchise agreement, unless the

8 new motor vehicles are not readily available from the

9 manufacturer or distributor due to limited production;

10 8. Being a factory that has:

11 a. either induced or attempted to induce by means of

12 coercion or intimidation, any new motor vehicle dealer

13 or powersports vehicle dealer:

14 (1) to accept delivery of any vehicle or vehicles,

15 parts, or accessories therefor, or any other

16 commodities including advertising material which

17 shall not have been ordered by the new motor

18 vehicle dealer,

19 (2) to order or accept delivery of any motor vehicle

20 or powersports vehicle with special features,

21 appliances, accessories, or equipment not

22 included in the list price of the vehicles as

23 publicly advertised by the manufacturer thereof,

24 or

Req. No. 3559 Page 201
1 (3) to order or accept delivery of any parts,

2 accessories, equipment, machinery, tools,

3 appliances, or any commodity whatsoever,

4 b. induced under threat or discrimination by the

5 withholding from delivery to a new motor vehicle

6 dealer or new powersports vehicle dealer certain

7 models of motor vehicles, changing or amending

8 unilaterally the new motor vehicle dealer's allotment

9 of motor vehicles, and/or withholding and delaying

10 delivery of the vehicles out of the ordinary course of

11 business, in order to induce by such coercion any new

12 motor vehicle dealer or new powersports vehicle dealer

13 to participate or contribute to any local or national

14 advertising fund controlled directly or indirectly by

15 the factory or for any other purposes such as contest,

16 "giveaways", or other so-called sales promotional

17 devices, and/or change of quotas in any sales contest;

18 or has required new motor vehicle dealers, as a

19 condition to receiving their vehicle allotment, to

20 order a certain percentage of the vehicles with

21 optional equipment not specified by the dealer;

22 however, nothing in this section shall prohibit a

23 factory from supporting an advertising association

Req. No. 3559 Page 202
1 which is open to all new motor vehicle dealers or new

2 powersports vehicle dealers on the same basis,

3 c. used a performance standard, sales objective, or

4 program for measuring dealer performance that may have

5 a material effect on a right of the dealer to vehicle

6 allocation; or payment under any incentive or

7 reimbursement program that is unfair, unreasonable,

8 inequitable, and not based on accurate information,

9 d. used a performance standard for measuring sales or

10 service performance of which results in penalizing any

11 new motor vehicle dealer or new powersports vehicle

12 dealer under the terms of the franchise agreement

13 which:

14 (1) is unfair, unreasonable, arbitrary, or

15 inequitable, and

16 (2) does not consider the relevant and material local

17 and state or regional criteria, including

18 prevailing economic conditions affecting the

19 sales or service performance of a vehicle dealer

20 or any relevant and material data and facts

21 presented by the dealer in writing within thirty

22 (30) days of the written notice of the

23 manufacturer to the dealer of its intention to

Req. No. 3559 Page 203
1 cancel, terminate, or not renew the dealer's

2 franchise agreement, and

3 (3) does not consider the actual vehicle allocation

4 offered or otherwise made available to the dealer

5 by the manufacturer or distributor, as well as

6 the dealer's inventory levels relevant to achieve

7 any minimum performance standards to which the

8 manufacturer or distributor holds the dealer

9 accountable,

10 e. failed or refused to sell, or offer for sale, new

11 motor vehicles to all of its authorized same line-make

12 franchised new motor vehicle dealers or new

13 powersports vehicle dealers at the same price for a

14 comparably equipped motor vehicle, on the same terms,

15 with no differential in functionally available

16 discount, allowance, credit, or bonus, except as

17 provided in subparagraph e of paragraph 9 of this

18 subsection,

19 f. failed to provide reasonable compensation to a new

20 motor vehicle dealer substantially equivalent to the

21 actual cost of providing a manufacturer required

22 loaner or rental vehicle to any consumer who is having

23 a vehicle serviced at the dealership. For purposes of

24 this paragraph, actual cost is the average cost in the

Req. No. 3559 Page 204
1 new motor vehicle dealer's region for the rental of a

2 substantially similar make and model as the vehicle

3 being serviced, or

4 g. failed to make available to its new motor vehicle

5 dealers a fair and proportional share of all new

6 vehicles distributed to same line-make dealers in this

7 state, subject to the same reasonable terms, including

8 any vehicles distributed from a common new vehicle

9 inventory pool outside of the factory's ordinary

10 allocation process such as any vehicles the factory

11 reserves to distribute on a discretionary basis;

12 9. Being a factory that:

13 a. has attempted to coerce or has coerced any new motor

14 vehicle dealer or new powersports vehicle dealer to

15 enter into any agreement or to cancel any agreement;

16 has failed to act in good faith and in a fair,

17 equitable, and nondiscriminatory manner; has directly

18 or indirectly coerced, intimidated, threatened, or

19 restrained any new motor vehicle dealer; has acted

20 dishonestly; or has failed to act in accordance with

21 the reasonable standards of fair dealing,

22 b. has failed to compensate its dealers for the work and

23 services they are required to perform in connection

24 with the dealer's delivery and preparation obligations

Req. No. 3559 Page 205
1 according to the agreements on file with the

2 Commission which must be found by the Commission to be

3 reasonable, or has failed to adequately and fairly

4 compensate its dealers for labor, parts, and other

5 expenses incurred by the dealer to perform under and

6 comply with manufacturer's warranty agreements and

7 recall repairs which shall include diagnostic work as

8 applicable and assistance requested by a consumer

9 whose vehicle was subjected to an over-the-air or

10 remote change, repair, or update to any part, system,

11 accessory, or function by the manufacturer and

12 performed by the dealer in order to satisfy the

13 consumer. Time allowances for the diagnosis and

14 performance of repair work shall be reasonable and

15 adequate for the work to be performed. Adequate and

16 fair compensation, which under this provision shall be

17 no less than the rates customarily charged for retail

18 consumer repairs as calculated herein, for parts and

19 labor for warranty and recall repairs shall, at the

20 option of the new motor vehicle dealer, be established

21 by the new motor vehicle dealer submitting to the

22 manufacturer or distributor one hundred sequential

23 nonwarranty consumer-paid service repair orders which

24 contain warranty-like repairs, or ninety (90)

Req. No. 3559 Page 206
1 consecutive days of nonwarranty consumer-paid service

2 repair orders which contain warranty-like repairs,

3 whichever is less, covering repairs made no more than

4 one hundred eighty (180) days before the submission

5 and declaring the average percentage labor rate and/or

6 markup rate. A motor vehicle dealer may not submit a

7 request to establish its retail rates more than once

8 in a twelve-month period. That request may establish

9 a parts markup rate, labor rate, or both. The new

10 motor vehicle dealer or new powersports vehicle dealer

11 shall calculate its retail parts rate by determining

12 the total charges for parts from the qualified repair

13 orders submitted, dividing that amount by the new

14 motor vehicle dealer's total cost of the purchase of

15 those parts, subtracting one (1), and multiplying by

16 one hundred (100) to produce a percentage. The new

17 motor vehicle dealer or new powersports vehicle dealer

18 shall calculate its retail labor rate by dividing the

19 amount of the new vehicle dealer's total labor sales

20 from the qualified repair orders by the total labor

21 hours charged for those sales. When submitting repair

22 orders to establish a retail parts and labor rate, a

23 new motor vehicle dealer or new powersports vehicle

24 dealer need not include repairs for:

Req. No. 3559 Page 207
1 (1) routine maintenance including but not limited to

2 the replacement of bulbs, fluids, filters,

3 batteries, and belts that are not provided in the

4 course of and related to a repair,

5 (2) factory special events, specials, or promotional

6 discounts for retail consumer repairs,

7 (3) parts sold or repairs performed at wholesale,

8 (4) factory-approved goodwill or policy repairs or

9 replacements,

10 (5) repairs with aftermarket parts, when calculating

11 the retail parts rate but not the retail labor

12 rate,

13 (6) repairs on aftermarket parts,

14 (7) replacement of or work on tires including front-

15 end alignments and wheel or tire rotations,

16 (8) repairs of vehicles owned by the new motor

17 vehicle dealer or new powersports vehicle dealer

18 or employee thereof at the time of the repair,

19 (9) vehicle reconditioning, or

20 (10) items that do not have individual part numbers

21 including, but not limited to, nuts, bolts, and

22 fasteners.

23 A manufacturer or distributor may, not later than

24 forty-five (45) days after submission, rebut that

Req. No. 3559 Page 208
1 declared retail parts and labor rate in writing by

2 reasonably substantiating that the rate is not

3 accurate or is incomplete pursuant to the provisions

4 of this section. If the manufacturer or distributor

5 determines the set of repair orders submitted by the

6 new motor vehicle dealer or new powersports vehicle

7 dealer pursuant to this section for a retail labor

8 rate or retail parts markup rate is substantially

9 higher than the new vehicle dealer's current warranty

10 rates, the manufacturer or distributor may request, in

11 writing, within forty-five (45) days after the

12 manufacturer's or distributor's receipt of the new

13 vehicle dealer's initial submission, all repair orders

14 closed within the period of thirty (30) days

15 immediately preceding, or thirty (30) days immediately

16 following, the set of repair orders initially

17 submitted by the new motor vehicle dealer. All time

18 periods under this section shall be suspended until

19 the supplemental repair orders are provided. If the

20 manufacturer or distributor requests supplemental

21 repair orders, the manufacturer or distributor may,

22 within thirty (30) days after receiving the

23 supplemental repair orders and in accordance with the

24 formula described in this subsection, calculate a

Req. No. 3559 Page 209
1 proposed adjusted retail labor rate or retail parts

2 markup rate, as applicable, based upon any set of the

3 qualified repair orders submitted by the franchisee

4 and following the formula set forth herein to

5 establish the rate. The retail labor and parts rates

6 shall go into effect thirty (30) days following the

7 approval by the manufacturer or distributor. If the

8 declared rate is rebutted, the manufacturer or

9 distributor shall provide written notice stating the

10 reasons for the rebuttal, an explanation of the

11 reasons for the rebuttal, and a copy of all

12 calculations used by the franchisor in determining the

13 manufacturer or distributor's position and propose an

14 adjustment in writing of the average percentage markup

15 or labor rate based on that rebuttal not later than

16 forty-five (45) days after submission. If the new

17 motor vehicle dealer or new powersports vehicle dealer

18 does not agree with the proposed average percentage

19 markup or labor rate, the new vehicle dealer may file

20 a protest with the Commission not later than thirty

21 (30) days after receipt of that proposal by the

22 manufacturer or distributor. In the event a protest

23 is filed, the manufacturer or distributor shall have

24 the burden of proof to establish the new vehicle

Req. No. 3559 Page 210
1 dealer's submitted parts markup rate or labor rate was

2 inaccurate or not complete pursuant to the provisions

3 of this section. A manufacturer or distributor may

4 not retaliate against any new motor vehicle dealer or

5 new powersports vehicle dealer seeking to exercise its

6 rights under this section. A manufacturer or

7 distributor may require a dealer to submit repair

8 orders in accordance with this section in order to

9 validate the reasonableness of a dealer's retail rate

10 for parts or labor not more often than once every

11 twelve (12) months. A manufacturer or distributor may

12 not otherwise recover its costs from new vehicle

13 dealers within this state including a surcharge

14 imposed on a new motor vehicle dealer solely intended

15 to recover the cost of reimbursing a dealer for parts

16 and labor pursuant to this section; provided, a

17 manufacturer or distributor shall not be prohibited

18 from increasing prices for vehicles or parts in the

19 normal course of business or from auditing and

20 charging back claims in accordance with this section.

21 All claims made by dealers for compensation for

22 delivery, preparation, warranty, or recall repair work

23 shall be paid within thirty (30) days after approval

24 and shall be approved or disapproved within thirty

Req. No. 3559 Page 211
1 (30) days after receipt. When any claim is

2 disapproved, the dealer shall be notified in writing

3 of the grounds for disapproval. The dealer's

4 delivery, preparation, and warranty obligations as

5 filed with the Commission shall constitute the

6 dealer's sole responsibility for product liability as

7 between the dealer and manufacturer. A factory may

8 reasonably and periodically audit a new motor vehicle

9 dealer or new powersports vehicle dealer to determine

10 the validity of paid claims for dealer compensation or

11 any charge-backs for warranty parts or service

12 compensation. Except in cases of suspected fraud,

13 audits of warranty payments shall only be for the one-

14 year period immediately following the date of the

15 payment. A manufacturer shall reserve the right to

16 reasonable, periodic audits to determine the validity

17 of paid claims for dealer compensation or any charge-

18 backs for consumer or dealer incentives. Except in

19 cases of suspected fraud, audits of incentive payments

20 shall only be for a one-year period immediately

21 following the date of the payment. A factory shall

22 not deny a claim or charge a new motor vehicle dealer

23 back subsequent to the payment of the claim unless the

24 factory can show that the claim was false or

Req. No. 3559 Page 212
1 fraudulent or that the new motor vehicle dealer or new

2 powersports vehicle dealer failed to reasonably

3 substantiate the claim by the written reasonable

4 procedures of the factory. A factory shall not deny a

5 claim or implement a charge-back against a new vehicle

6 dealer after payment of a claim in the event a

7 purchaser of a new vehicle that is the subject of a

8 claim fails to comply with titling or registration

9 laws of this state and is not prevented from

10 compliance by any action of the dealer; provided, that

11 the factory may require the dealer to provide, within

12 thirty (30) days of notice of charge-back, withholding

13 of payment, or denial of claim, the documentation to

14 demonstrate the vehicle sale, delivery, and customer

15 qualification for an incentive as reported, including

16 consumer name and address and written attestation

17 signed by the dealer operator or general manager

18 stating the consumer was not on the export control

19 list and the dealer did not know or have reason to

20 know the vehicle was being exported or resold.

21 The factory shall provide written notice to a dealer

22 of a proposed charge-back that is the result of an

23 audit along with the specific audit results and

24 proposed charge-back amount. A dealer that receives

Req. No. 3559 Page 213
1 notice of a proposed charge-back pursuant to a

2 factory's audit has the right to file a protest with

3 the Commission within thirty (30) days after receipt

4 of the notice of the charge-back or audit results,

5 whichever is later. The factory is prohibited from

6 implementing the charge-back or debiting the dealer's

7 account until either the time frame for filing a

8 protest has passed or a final adjudication is rendered

9 by the Commission, whichever is later, unless the

10 dealer has agreed to the charge-back or charge-backs,

11 c. fails to compensate the new motor vehicle dealer for a

12 used motor vehicle:

13 (1) that is of the same make and model manufactured,

14 imported, or distributed by the factory and is a

15 line-make that the new motor vehicle dealer is

16 franchised to sell or on which the new motor

17 vehicle dealer is authorized to perform recall

18 repairs,

19 (2) that is subject to a stop-sale or do-not-drive

20 order issued by the factory or an authorized

21 governmental agency,

22 (3) that is held by the new motor vehicle dealer in

23 the dealer's inventory at the time the stop-sale

24 or do-not-drive order is issued or that is taken

Req. No. 3559 Page 214
1 by the new motor vehicle dealer into the dealer's

2 inventory after the recall notice as a result of

3 a retail consumer trade-in or a lease return to

4 the dealer inventory in accordance with an

5 applicable lease contract,

6 (4) that cannot be repaired due to the

7 unavailability, within thirty (30) days after

8 issuance of the stop-sale or do-not-drive order,

9 of a remedy or parts necessary for the new motor

10 vehicle dealer to make the recall repair, and

11 (5) that is not at least in the prorated amount of

12 one percent (1.00%) of the value of the vehicle

13 per month beginning on the date that is thirty

14 (30) days after the date on which the stop-sale

15 order was provided to the new motor vehicle

16 dealer until the earlier of either of the

17 following:

18 (a) the date the recall remedy or parts are made

19 available, or

20 (b) the date the new motor vehicle dealer sells,

21 trades, or otherwise disposes of the

22 affected used motor vehicle.

23 For the purposes of division (5) of this subparagraph,

24 the value of a used vehicle shall be the average Black

Req. No. 3559 Page 215
1 Book value for the year, make, and model of the

2 recalled vehicle. A factory may direct the manner and

3 method in which a new motor vehicle dealer must

4 demonstrate the inventory status of an affected used

5 motor vehicle to determine eligibility under this

6 subparagraph; provided, that the manner and method may

7 not be unduly burdensome and may not require

8 information that is unduly burdensome to provide. All

9 reimbursement claims made by new motor vehicle dealers

10 pursuant to this section for recall remedies or

11 repairs, or for compensation where no part or repair

12 is reasonably available and the vehicle is subject to

13 a stop-sale or do-not-drive order, shall be subject to

14 the same limitations and requirements as a warranty

15 reimbursement claim made under subparagraph b of this

16 paragraph. In the alternative, a manufacturer may

17 compensate its franchised new motor vehicle dealers

18 under a national recall compensation program;

19 provided, the compensation under the program is equal

20 to or greater than that provided under division (5) of

21 this subparagraph, or as the manufacturer and new

22 motor vehicle dealer otherwise agree. Nothing in this

23 section shall require a factory to provide total

24 compensation to a new motor vehicle dealer which would

Req. No. 3559 Page 216
1 exceed the total average Black Book value of the

2 affected used motor vehicle as originally determined

3 under division (5) of this subparagraph. Any remedy

4 provided to a new motor vehicle dealer under this

5 subparagraph is exclusive and may not be combined with

6 any other state or federal compensation remedy,

7 d. unreasonably fails or refuses to offer to its same

8 line-make franchised dealers a reasonable supply and

9 mix of all models manufactured for that line-make, or

10 unreasonably requires a dealer to pay any extra fee,

11 purchase unreasonable advertising displays or other

12 materials, or enter into a separate agreement which

13 adversely alters the rights or obligations contained

14 within the dealer's existing franchise agreement or

15 which waives any right of the new motor vehicle dealer

16 or new powersports vehicle dealer as protected by

17 Section 561 et seq. of this title, or remodel,

18 renovate, or recondition the dealer's existing

19 facilities as a prerequisite to receiving a model or

20 series of vehicles, except as may be necessary to sell

21 or service the model or series of vehicles as provided

22 by subparagraph e of this paragraph. It shall be a

23 violation of this section for new vehicle allocation

24 to be withheld subject to any requirement to purchase

Req. No. 3559 Page 217
1 or sell any number of used or off-lease vehicles. The

2 failure to deliver any such new motor vehicle shall

3 not be considered a violation of the section if the

4 failure is not arbitrary or is due to lack of

5 manufacturing capacity or to a strike or labor

6 difficulty, a shortage of materials, a freight

7 embargo, or other cause over which the manufacturer

8 has no control. However, this subparagraph shall not

9 apply to limited production model vehicles, a vehicle

10 not advertised by the factory for sale in this state,

11 vehicles that are subject to allocation affected by

12 federal environmental laws or environmental laws of

13 this state, or vehicles allocated in response to an

14 unforeseen event or circumstance,

15 e. except as necessary to comply with a health or safety

16 law, or to comply with a technology requirement which

17 is necessary to sell or service a vehicle that the

18 franchised new motor vehicle dealer or new powersports

19 vehicle dealer is authorized or licensed by the

20 franchisor to sell or service, requires a dealer to

21 construct a new facility or substantially renovate the

22 dealer's existing facility unless the facility

23 construction or renovation is justified by the

24 economic conditions existing at the time, as well as

Req. No. 3559 Page 218
1 the reasonably foreseeable projections, in the new

2 motor vehicle dealer's market and in the automotive

3 industry. However, this subparagraph shall not apply

4 if the new motor vehicle dealer or new powersports

5 vehicle dealer voluntarily agrees to facility

6 construction or renovation in exchange for money,

7 credit, allowance, reimbursement, or additional

8 vehicle allocation to a dealer from the factory to

9 compensate the dealer for the cost of, or a portion of

10 the cost of, the facility construction or renovation.

11 Except as necessary to comply with a health or safety

12 law, or to comply with a technology or safety

13 requirement which is necessary to sell or service a

14 motor vehicle or powersports vehicle that the

15 franchised dealer is authorized or licensed by the

16 franchisor to sell or service, a new vehicle dealer

17 which completes a facility construction or renovation

18 pursuant to factory requirements shall not be required

19 to construct a new facility or renovate the existing

20 facility if the same area of the facility or premises

21 has been constructed or substantially altered within

22 the last ten (10) years and the construction or

23 alteration was approved by the manufacturer as a part

24 of a facility upgrade program, standard, or policy.

Req. No. 3559 Page 219
1 For purposes of this subparagraph, "substantially

2 altered" means to perform an alteration that

3 substantially impacts the architectural features,

4 characteristics, or integrity of a structure or lot.

5 The term shall not include routine maintenance

6 reasonably necessary to maintain a dealership in

7 attractive condition. If a facility upgrade program,

8 standard, or policy under which the dealer completed a

9 facility construction or substantial alteration does

10 not contain a specific time period during which the

11 manufacturer or distributor shall provide payments or

12 benefits to a participating dealer, or the time frame

13 specified under the program is reduced or canceled

14 prematurely in the unilateral discretion of the

15 manufacturer or distributor, the manufacturer or

16 distributor shall not deny the participating dealer

17 any payment or benefit under the terms of the program,

18 standard, or policy as it existed when the dealer

19 began to perform under the program, standard, or

20 policy for the balance of the ten-year period,

21 regardless of whether the manufacturer's or

22 distributor's program, standard, or policy has been

23 changed or canceled, unless the manufacturer and

24 dealer agree, in writing, to the change in payment or

Req. No. 3559 Page 220
1 benefit. During the ten-year period following

2 facility construction or substantial alteration, the

3 manufacturer shall not fail to make available to the

4 dealer a fair and proportionate share of all new

5 vehicles distributed to dealers of the same line-make

6 in this state, subject to the same reasonable terms,

7 including vehicles distributed from a common new

8 vehicle inventory pool outside of the factory's

9 ordinary allocation process, such as any vehicles the

10 factory reserves to distribute on a discretionary

11 basis,

12 f. requires a new motor vehicle dealer or new powersports

13 vehicle dealer to establish an exclusive facility or

14 to change the location of the dealership, unless

15 supported by reasonable business, market, and economic

16 considerations; provided, that this section shall not

17 restrict the terms of any agreement for such exclusive

18 facility voluntarily entered into and supported by

19 valuable consideration separate from the new motor

20 vehicle dealer's right to sell and service motor

21 vehicles for the franchisor. If a dealer is required

22 by the manufacturer or distributor to change an

23 existing, previously approved location of the

24 dealership and has not sold its existing dealership

Req. No. 3559 Page 221
1 facility and real estate within the later of one

2 hundred eighty (180) days of listing the property for

3 sale or ninety (90) days after the facility

4 relocation, then, upon the written request of the

5 dealer, the manufacturer or distributor shall purchase

6 the dealer's existing dealership facility and real

7 estate as if the new motor vehicle dealership

8 continues to operate on the property. If the factory

9 and dealer cannot agree on the value of the dealership

10 facilities and real estate, then the factory and

11 dealer shall utilize the process described in

12 paragraph 6 of subsection G of Section 565.2 of this

13 title. If a manufacturer or distributor purchases a

14 dealership facility and real estate, then it shall be

15 entitled to sole ownership, possession, use, and

16 control of any items, buildings, or property that were

17 included in the contract to purchase,

18 g. requires a new motor vehicle dealer or new powersports

19 vehicle dealer to enter into a site-control agreement

20 covering any or all of the new motor vehicle dealer's

21 facilities or premises; provided, that this section

22 shall not restrict the terms of any site-control

23 agreement voluntarily entered into and supported by

24 valuable consideration separate from the new motor

Req. No. 3559 Page 222
1 vehicle dealer's right to sell and service motor

2 vehicles for the franchisor. Notwithstanding the

3 foregoing or the terms of any site-control agreement,

4 a site-control agreement automatically extinguishes if

5 all of the factory's franchises that operated from the

6 location that are the subject of the site-control

7 agreement are terminated by the factory as part of the

8 discontinuance of a product line,

9 h. refuses to pay, or claims reimbursement from, a new

10 motor vehicle dealer or new powersports vehicle dealer

11 for sales, incentives, or other payments related to a

12 vehicle sold by the dealer because the purchaser of

13 the new vehicle exported or resold the vehicle in

14 violation of the policy of the factory unless the

15 factory can show that, at the time of the sale, the

16 new vehicle dealer knew or reasonably should have

17 known of the purchaser's intention to export or resell

18 the vehicle. There is a rebuttable presumption that

19 the new vehicle dealer did not know or could not have

20 known that the vehicle would be exported if the

21 vehicle is titled and registered in any state of the

22 United States, or

23 i. (1) notwithstanding the terms of a franchise

24 agreement or other agreement except as provided

Req. No. 3559 Page 223
1 by this subsection, requires a new motor vehicle
1 dealer or new powersports vehicle dealer to
2 purchase or utilize goods or services, or
2 contract with any vendor, identified, selected or
3 designated by the factory for the:
3 (a) operation of the dealership including
4
4 electronic services such as websites, data
5 management or storage systems, digital
5 platforms, software, or other digital
6 services or platforms, or
6 (b) construction, renovation, or improvement of
7 the new dealer's facility from a vendor
7 chosen by the factory if goods or services
8 available from other sources a vendor that
8 the new motor vehicle dealer chooses, are of
9 substantially similar quality, function, and
9 design and comply with all applicable laws;
10 provided, however, that such goods are not
10 subject to the factory's intellectual
11 property or trademark rights and the new
11 vehicle dealer has received the factory's
12 approval, which approval may not be
12 unreasonably withheld. Nothing in this
13 subparagraph may be construed to allow a new
13
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23
23
24
24

Req. No. 3559
1 motor vehicle dealer or new powersports

2 vehicle dealer to impair or eliminate a

3 factory's intellectual property, trademark

4 rights, or trade dress usage guidelines.

5 Nothing in this section subdivision or

6 subdivision (a) of this division prohibits

7 the enforcement of a voluntary agreement

8 between the factory and the new vehicle

9 dealer where separate and valuable

10 consideration has been offered and accepted.

11 It is a violation of this subdivision or

12 subdivision (a) of this division for a

13 factory, or any entity that acts on behalf

14 of a factory, to coerce a new motor vehicle

15 dealer to purchase or utilize certain goods

16 or services by withholding the vehicle

17 allocation the new motor vehicle dealer is

18 otherwise eligible to receive, and

19 (2) for purposes of this subparagraph, "goods and

20 services" do not include:

21 (a) moveable displays, brochures, promotional

22 materials, or electronic or digital media

23 containing material subject to the

24 intellectual property rights of a factory or

Req. No. 3559 Page 225
1 parts to be used in repairs under warranty

2 obligations of a factory, or

3 (b) special tools or training required by the

4 factory to perform warranty or recall

5 repairs;

6 10. Being a factory that:

7 a. establishes a system of motor vehicle allocation or

8 distribution which is unfair, inequitable, or

9 unreasonably discriminatory. A manufacturer and

10 distributor shall maintain for three (3) years records

11 that describe its methods or formula of allocation and

12 distribution of its motor vehicles and records of its

13 actual allocation and distribution of motor vehicles

14 to its motor vehicle dealers. Upon the written

15 request of any new motor vehicle dealer or new

16 powersports vehicle dealer franchised by it the

17 manufacturer or distributor, received by the

18 manufacturer or distributor within thirty (30) days of

19 the manufacturer's or distributor's written notice to

20 the dealer of its intention to cancel or terminate, or

21 written notice from the manufacturer or distributor of

22 a sales performance deficiency requiring the dealer to

23 take action to cure the alleged performance

24 deficiency, a factory manufacturer or distributor

Req. No. 3559 Page 226
1 shall disclose in writing to the dealer the basis upon

2 which new vehicles are allocated, scheduled, and

3 delivered among the, by vehicle model, to new motor

4 vehicle dealers of the same line-make for that factory

5 manufacturer or distributor for the prior three (3)

6 years, and the basis upon which the current allocation

7 or distribution is being made or will be made based on

8 existing information to such dealer, or

9 b. changes an established plan or system of new motor

10 vehicle or new powersports vehicle distribution. A

11 new motor vehicle dealer or new powersports vehicle

12 dealer franchise agreement shall continue in full

13 force and operation notwithstanding a change, in whole

14 or in part, of an established plan or system of

15 distribution of the motor vehicles or new powersports

16 vehicles offered or previously offered for sale under

17 the franchise agreement. The appointment of a new

18 importer or distributor for motor vehicles or new

19 powersports vehicle offered for sale under the

20 franchise agreement shall be deemed to be a change of

21 an established plan or system of distribution. The

22 discontinuation of a line-make shall not be deemed to

23 be a change of an established plan or system of motor

24 vehicle or new powersports vehicle distribution. The

Req. No. 3559 Page 227
1 creation of a line-make shall not be deemed to be a

2 change of an established plan or system of motor

3 vehicle distribution as long as the new line-make is

4 not selling the same, or substantially the same

5 vehicle or vehicles previously sold through another

6 line-make by new motor vehicle dealers or new

7 powersports vehicle dealers with an active franchise

8 agreement for the other line-make in the state if such

9 dealers are no longer authorized to sell the

10 comparable vehicle previously sold through their line-

11 make. Changing a vehicle's powertrain is not

12 sufficient to show it is substantially different.

13 Upon the occurrence of such change, the manufacturer

14 or distributor shall be prohibited from obtaining a

15 license to distribute vehicles under the new plan or

16 system of distribution unless the manufacturer or

17 distributor offers to each vehicle dealer who is a

18 party to the franchise agreement a new franchise

19 agreement containing substantially the same provisions

20 which were contained in the previous franchise

21 agreement;

22 11. Being a factory that sells directly or indirectly new motor

23 vehicles or new powersports vehicles to any retail consumer in the
23

24 state except through a new motor vehicle dealer or new powersports
24

Req. No. 3559 Page 228
1 vehicle dealer holding a franchise for the line-make that includes
1

2 the new motor vehicle or new powersports vehicle. This paragraph
2

3 does not apply to factory sales of new vehicles to its employees,
3

4 family members of employees, retirees and family members of
4

5 retirees, not-for-profit organizations, or the federal, state, or
5

6 local governments. The provisions of this paragraph shall not
6

7 preclude a factory from providing information to a consumer for the
7

8 purpose of marketing or facilitating a sale of a new vehicle or from
8

9 establishing a program to sell or offer to sell new motor vehicles
9

10 or new powersports vehicle through participating dealers subject to
10

11 the limitations provided in paragraph 2 of Section 562 of this
11

12 title;
12

13 12. a. Being a factory which directly or indirectly:

14 (1) owns any ownership interest or has any financial

15 interest in a new motor vehicle dealer or new

16 powersports vehicle dealer or any person who

17 sells products or services pursuant to the terms

18 of the franchise agreement,

19 (2) operates or controls a new motor vehicle dealer

20 or new powersports vehicle dealer, or

21 (3) acts in the capacity of a new motor vehicle

22 dealer or new powersports vehicle dealer.

23 b. (1) This paragraph does not prohibit a factory from

24 owning or controlling a new motor vehicle dealer

Req. No. 3559 Page 229
1 or new powersports vehicle dealer while in a bona

2 fide relationship with a dealer development

3 candidate who has made a substantial initial

4 investment in the franchise and whose initial

5 investment is subject to potential loss. The

6 dealer development candidate can reasonably

7 expect to acquire full ownership of a new vehicle

8 dealer within a reasonable period of time not to

9 exceed ten (10) years and on reasonable terms and

10 conditions. The ten-year acquisition period may

11 be expanded for good cause shown.

12 (2) This paragraph does not prohibit a factory from

13 owning, operating, controlling, or acting in the

14 capacity of a new motor vehicle dealer or new

15 powersports vehicle dealer for a period not to

16 exceed twelve (12) months during the transition

17 from one independent dealer to another

18 independent dealer if the dealership is for sale

19 at a reasonable price and on reasonable terms and

20 conditions to an independent qualified buyer. On

21 showing by a factory of good cause, the Oklahoma

22 New Motor Vehicle Commission may extend the time

23 limit set forth above; extensions may be granted

24 for periods not to exceed twelve (12) months.

Req. No. 3559 Page 230
1 (3) This paragraph does not prohibit a factory from

2 owning, operating, or controlling or acting in

3 the capacity of a new motor vehicle dealer or new

4 powersports vehicle dealer which was in operation

5 prior to January 1, 2000.

6 (4) This paragraph does not prohibit a factory from

7 owning, directly or indirectly, a minority

8 interest in an entity that owns, operates, or

9 controls motor vehicle dealerships or powersports

10 vehicle dealerships of the same line-make

11 franchised by the manufacturer, provided that

12 each of the following conditions are met:

13 (a) all of the new motor vehicle or new

14 powersports vehicle dealerships selling the

15 vehicles of that manufacturer in this state

16 trade exclusively in the line-make of that

17 manufacturer,

18 (b) all of the franchise agreements of the

19 manufacturer confer rights on the dealer of

20 the line-make to develop and operate, within

21 a defined geographic territory or area, as

22 many dealership facilities as the dealer and

23 manufacturer shall agree are appropriate,

Req. No. 3559 Page 231
1 (c) at the time the manufacturer first acquires
1 an ownership interest or assumes operation,
2 the distance between any dealership thus
2 owned or operated and the nearest
3 unaffiliated new motor vehicle or new
3 powersports vehicle dealership trading in
4 the same line-make is not less than seventy
4 (70) miles,
5
5 (d) during any period in which the manufacturer
6 has such an ownership interest, the
6 manufacturer has no more than three
7 franchise agreements with new motor vehicle
7 dealers or new powersports vehicle dealers
8 licensed by the Oklahoma New Motor Vehicle
8 Commission to do business within the state,
9 and
9
10 (e) prior to January 1, 2000, the factory shall
10 have furnished or made available to
11 prospective new vehicle dealers an offering
11 circular in accordance with the Trade
12 Regulation Rule on Franchising of the
12 Federal Trade Commission, and any guidelines
13 and exemptions issued thereunder, which
13 disclose the possibility that the factory
14
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23
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Req. No. 3559
1 may from time to time seek to own or

2 acquire, directly or indirectly, ownership

3 interests in retail dealerships;

4 13. Being a factory which directly or indirectly makes

5 available for public disclosure any proprietary information provided
5

6 to the factory by a new motor vehicle dealer or new powersports
6

7 vehicle dealer, other than in composite form to new vehicle dealers
7

8 in the same line-make or in response to a subpoena or order of the
8

9 Commission or a court. Proprietary information includes, but is not
9

10 limited to, information:
10

11 a. derived from monthly financial statements provided to

12 the factory, and

13 b. regarding any aspect of the profitability of a

14 particular new motor vehicle dealer or new powersports

15 vehicle dealer;

16 14. Being a factory which does not provide or direct leads in a

17 fair, equitable, and timely manner. Nothing in this paragraph shall
17

18 be construed to require a factory to disregard the preference of a
18

19 consumer in providing or directing a lead;
19

20 15. Being a factory which used the consumer list of a new motor

21 vehicle dealer or new powersports vehicle dealer for the purpose of
21

22 unfairly competing with dealers;
22

Req. No. 3559 Page 233
1 16. Being a factory which prohibits a new motor vehicle dealer

2 or new powersports vehicle dealer from relocating after a written
2

3 request by such dealer if:
3

4 a. the facility and the proposed new location satisfies

5 or meets the written reasonable guidelines of the

6 factory. Reasonable guidelines do not include

7 exclusivity or site control unless agreed to as set

8 forth in subparagraphs f and g of paragraph 9 of this

9 subsection,

10 b. the proposed new location is within the area of

11 responsibility of the new motor vehicle dealer or new

12 powersports vehicle dealer pursuant to Section 578.1

13 of this title, and

14 c. the factory has sixty (60) days from receipt of the

15 new motor vehicle dealer's or powersports vehicle

16 dealer's relocation request to approve or deny the

17 request. The failure to approve or deny the request

18 within the sixty-day time frame shall constitute

19 approval of the request;

20 17. Being a factory which prohibits a new motor vehicle dealer

21 or new powersports vehicle dealer from adding additional line-makes
21

22 to its existing facility, if, after adding the additional line-
22

23 makes, the facility satisfies the written reasonable capitalization
23

24 standards and facility guidelines of each factory. Reasonable
24

Req. No. 3559 Page 234
1 facility guidelines do not include a requirement to maintain
1

2 exclusivity or site control unless agreed to by the dealer as set
2

3 forth in subparagraphs f and g of paragraph 9 of this subsection;
3

4 18. Being a factory that increases prices of new motor vehicles

5 or new powersports vehicles which the dealer had ordered for retail
5

6 consumers and notified the factory prior to the dealer's receipt of
6

7 the written official price increase notification. A sales contract
7

8 signed by a retail consumer accompanied with proof of order
8

9 submission to the factory shall constitute evidence of each such
9

10 order, provided that the vehicle is in fact delivered to the
10

11 consumer. Price differences applicable to new models or series
11

12 motor vehicles at the time of the introduction of new models or
12

13 series shall not be considered a price increase for purposes of this
13

14 paragraph. Price changes caused by any of the following shall not
14

15 be subject to the provisions of this paragraph:
15

16 a. the addition to a motor vehicle or powersports vehicle

17 of required or optional equipment pursuant to state or

18 federal law,

19 b. revaluation of the United States dollar in the case of

20 foreign-made vehicles or components, or

21 c. an increase in transportation charges due to increased

22 rates imposed by common or contract carriers;

23 19. Being a factory that requires a new motor vehicle dealer or

24 new powersports vehicle dealer to participate monetarily in an
24

Req. No. 3559 Page 235
1 advertising campaign or contest, or purchase any promotional
1

2 materials, showroom, or other display decoration or materials at the
2

3 expense of the new motor vehicle or powersports vehicle dealer
3

4 without consent of the dealer, which consent shall not be
4

5 unreasonably withheld;
5

6 20. Being a factory that denies any new motor vehicle dealer or

7 new powersports vehicle dealer the right of free association with
7

8 any other dealer for any lawful purpose, unless otherwise permitted
8

9 by this chapter; or
9

10 21. Being a factory that requires a new motor vehicle dealer or

11 new powersports vehicle dealer to sell, offer to sell, or sell
11

12 exclusively an extended service contract, extended maintenance plan,
12

13 or similar product, such as gap products offered, endorsed, or
13

14 sponsored by the factory by the following means:
14

15 a. by an act or statement from the factory that will in

16 any manner adversely impact the new motor vehicle

17 dealer, or

18 b. by measuring dealer's performance under the franchise

19 based on the sale of extended service contracts,

20 extended maintenance plans, or similar products

21 offered, endorsed, or sponsored by the manufacturer or

22 distributor;

23 22. Being a factory that requires or coerces a new motor

24 vehicle dealer in this state to purchase or lease any electric
24

Req. No. 3559 Page 236
1 vehicle charging stations at the new motor vehicle dealer's expense
1

2 unless the franchise agreement, including any related addendums,
2

3 with the new motor vehicle dealer identifies electric vehicle models
3

4 among the vehicles available for sale under the dealer's franchised
4

5 line-make, or the new motor vehicle dealer has notified the
5

6 manufacturer or distributor of the new motor vehicle dealer's
6

7 intention to begin selling and servicing electric vehicles
7

8 manufactured or distributed by that factory. If the new motor
8

9 vehicle dealer's franchise identifies electric vehicle models or the
9

10 dealer is actually offering for sale to the public or providing
10

11 warranty service on electric vehicles manufactured or distributed by
11

12 that factory, the new motor vehicle dealer may not be required to
12

13 purchase or lease, at the new motor vehicle dealer's expense:
13

14 a. more than the number and type of electric vehicle

15 charging stations based upon the reasonable estimate

16 dealer sales and service volume for those vehicles in

17 the dealer's market, or

18 b. to make electric vehicle charging stations located at

19 the new motor vehicle dealership available for use by

20 the general public. Nothing in this paragraph shall

21 prohibit a factory from offering financial assistance

22 through a lump-sum payment to new motor vehicle

23 dealers that purchase or install electric charging

24 stations; and

Req. No. 3559 Page 237
1 23. Being a factory that withdraws all or a material part of

2 its stated electric vehicle distribution plan and fails or refuses,
2

3 at the written request of the new motor vehicle dealer, to accept
3

4 the return or otherwise fully reimburse a new motor vehicle dealer
4

5 for the cost of parts, tools, equipment, chargers and other
5

6 returnable items required as a part of that distribution plan,
6

7 program, policy or other initiative related to the sale or service
7

8 of electric motor vehicles, provided that:
8

9 a. the dealer demonstrates that the volume of electric

10 motor vehicle sales or service is no longer adequate

11 to allow the dealer to realize a positive return on

12 the investment over the useful life of the parts,

13 tools, equipment, chargers, or other returnable items,

14 and

15 b. the dealer submits its request to the manufacturer or

16 distributor in writing and within twenty-four (24)

17 months of dealer's receipt of the part, tools,

18 equipment, charger or other returnable items.

19 B. Notwithstanding the terms of any franchise agreement, in the

20 event of a proposed sale or transfer of a new motor vehicle
20

21 dealership, the manufacturer or distributor shall be permitted to
21

22 exercise a right of first refusal to acquire the assets or ownership
22

23 interest of the dealer of the new motor vehicle dealership, if such
23

24 sale or transfer is conditioned upon the manufacturer or dealer
24

Req. No. 3559 Page 238
1 entering into a dealer agreement with the proposed new owner or
1

2 transferee, only if all the following requirements are met:
2

3 1. The manufacturer or distributor must notify the new motor

4 vehicle dealer of its intent to exercise the right of first refusal
4

5 in writing within sixty (60) days of receipt of the completed
5

6 proposal for the proposed sale or transfer;
6

7 2. The exercise of the right of first refusal will result in

8 the new motor vehicle dealer and the owner of the dealership
8

9 receiving the same or greater consideration as they have contracted
9

10 to receive in connection with the proposed change of ownership or
10

11 transfer. If the proposed new motor vehicle dealership sale or
11

12 transfer includes the sale, transfer, or lease of the real property
12

13 and improvements thereon, then the right of first refusal shall
13

14 include the same terms for the purchase or lease of the real
14

15 property and all improvements thereon for not less than the
15

16 consideration the new motor vehicle dealer has contracted to receive
16

17 in connection with the proposed sale or transfer;
17

18 3. The proposed sale or transfer of the dealership does not

19 involve the transfer or sale to a member or members of the family of
19

20 one or more dealer owners, or to a qualified manager or a
20

21 partnership or corporation controlled by such persons;
21

22 4. The factory agrees to pay the reasonable expenses, including

23 attorney fees which do not exceed the usual, customary, and
23

24 reasonable fees charged for similar work done for other clients
24

Req. No. 3559 Page 239
1 incurred by the proposed new owner and transferee prior to the
1

2 exercise by the factory of its right of first refusal in negotiating
2

3 and implementing the contract for the proposed sale or transfer of
3

4 the dealership or dealership assets. Notwithstanding the foregoing,
4

5 no payment of expenses and attorney fees shall be required if the
5

6 proposed new dealer or transferee has not submitted or caused to be
6

7 submitted an accounting of those expenses within thirty (30) days of
7

8 receipt of the written request of the factory for such an
8

9 accounting. The accounting may be requested by a factory before
9

10 exercising its right of first refusal; and
10

11 5. a. For the purposes of this paragraph, "multi-dealership

12 transaction" means any proposed sale, transfer, or

13 assignment that involves two or more new motor vehicle

14 dealerships that are being sold as part of the same

15 overall transaction or a series of related

16 transactions intended by the parties to constitute a

17 single deal.

18 b. In a multi-dealership transaction, the selling dealer

19 may withdraw the proposed sale, transfer, or

20 assignment of the dealership that is subject to the

21 manufacturer's or distributor's right of first refusal

22 in response to the manufacturer's or distributor's

23 timely received notice of intent to exercise the right

24 of first refusal as follows:

Req. No. 3559 Page 240
1 (1) the selling dealer shall provide written notice

2 to the manufacturer or distributor within thirty

3 (30) days of receipt of the manufacturer's or

4 distributor's timely received notice of intent to

5 exercise the right of first refusal, stating that

6 either:

7 (a) the entire multi-dealership transaction has

8 been withdrawn, or

9 (b) the specific dealership subject to the

10 timely received notice of manufacturer's or

11 distributor's intent to exercise the right

12 of first refusal has been excluded from the

13 multi-dealership transaction,

14 (2) upon the manufacturer's or distributor's receipt

15 of the selling dealer's withdrawal notice under

16 division (1) of this subparagraph, the proposed

17 sale, transfer, or assignment of the dealership

18 subject to the manufacturer's or distributor's

19 timely received notice of intent to exercise the

20 right of first refusal shall be deemed withdrawn,

21 and the manufacturer's or distributor's right of

22 first refusal with respect to that dealership

23 shall be deemed extinguished, and

Req. No. 3559 Page 241
1 (3) if the selling dealer does not provide the

2 withdrawal notice within the thirty-day period,

3 the manufacturer or distributor may proceed with

4 exercising the right of first refusal.

5 C. Nothing in this section shall prohibit, limit, restrict, or

6 impose conditions on:
6

7 1. Business activities, including without limitation the

8 dealings with manufacturers and the representatives and affiliates
8

9 of manufacturers, of any person that is primarily engaged in the
9

10 business of short-term, not to exceed twelve (12) months, rental of
10

11 motor vehicles, powersports vehicles, and industrial and
11

12 construction equipment and activities incidental to that business,
12

13 provided that:
13

14 a. any motor vehicle or powersports vehicle sold by that

15 person is limited to used motor vehicles or

16 powersports vehicles that have been previously used

17 exclusively and regularly by that person in the

18 conduct of business and used motor vehicles or used

19 powersports vehicles traded in on motor vehicles or

20 powersports vehicles sold by that person,

21 b. warranty repairs performed by that person on motor

22 vehicles or powersports vehicles are limited to those

23 vehicles that the person owns, previously owned, or

24 takes in trade, and

Req. No. 3559 Page 242
1 c. motor vehicle or powersports vehicle financing

2 provided by that person to retail consumers for motor

3 vehicles or powersports vehicles is limited to used

4 vehicles sold by that person in the conduct of

5 business; or

6 2. The direct or indirect ownership, affiliation, or control of

7 a person described in paragraph 1 of this subsection.
7

8 D. As used in this section:

9 1. "Substantially relates" means the nature of criminal conduct

10 for which the person was convicted has a direct bearing on the
10

11 fitness or ability to perform one or more of the duties or
11

12 responsibilities necessarily related to the occupation; and
12

13 2. "Poses a reasonable threat" means the nature of criminal

14 conduct for which the person was convicted involved an act or threat
14

15 of harm against another and has a bearing on the fitness or ability
15

16 to serve the public or work with others in the occupation.
16

17 E. Nothing in this section shall prohibit a manufacturer or

18 distributor from requiring a dealer to be in compliance with the
18

19 franchise agreement and authorized to sell a make and model based on
19

20 applicable reasonable standards and requirements that include but
20

21 are not limited to any facility, technology, or training
21

22 requirements necessary to sell or service a vehicle, in order to be
22

23 eligible for delivery or allotment of a make or model of a new motor
23

24 vehicle or new powersports vehicle or an incentive.
24

Req. No. 3559 Page 243
1 SECTION 61. REPEALER 47 O.S. 2021, Section 565, as last

2 amended by Section 4, Chapter 119, O.S.L. 2025 (47 O.S. Supp. 2025,
2

3 Section 565), is hereby repealed.
3

4 SECTION 62. AMENDATORY 47 O.S. 2021, Section 752, as

5 last amended by Section 13, Chapter 330, O.S.L. 2025 (47 O.S. Supp.
5

6 2025, Section 752), is amended to read as follows:
6

7 Section 752. A. Only a licensed medical doctor, licensed

8 osteopathic physician, licensed chiropractic physician, registered
8

9 nurse, licensed practical nurse, physician's assistant, certified by
9

10 any state's appropriate licensing authority, an employee of a
10

11 hospital or other health care facility authorized by the hospital or
11

12 health care facility to withdraw blood, or individuals licensed in
12

13 accordance with Section 1-2505 of Title 63 of the Oklahoma Statutes
13

14 as an Intermediate Emergency Medical Technician, an Advanced
14

15 Emergency Medical Technician or a Paramedic, acting within the scope
15

16 of practice prescribed by their medical director, acting at the
16

17 request of a law enforcement officer may withdraw blood for the
17

18 purpose of having a determination made of its concentration of
18

19 alcohol or the presence or concentration of other intoxicating
19

20 substance. Only qualified persons authorized by the Board may
20

21 collect breath, saliva or urine, or administer tests of breath under
21

22 the provisions of this title.
22

23 B. If the person authorized to withdraw blood as specified in

24 subsection A of this section is presented with a written statement:
24

Req. No. 3559 Page 244
1 1. Authorizing blood withdrawal signed by the person whose

2 blood is to be withdrawn;
2

3 2. Signed by a duly authorized peace officer that the person

4 whose blood is to be withdrawn has agreed to the withdrawal of
4

5 blood;
5

6 3. Signed by a duly authorized peace officer that the person

7 whose blood is to be withdrawn has been placed under arrest and that
7

8 the officer has probable cause to believe that the person, while
8

9 intoxicated, has operated a motor vehicle in such manner as to have
9

10 caused the death or serious physical injury of another person, or
10

11 the person has been involved in a traffic accident and has been
11

12 removed from the scene of the accident that resulted in the death or
12

13 great bodily injury, as defined in subsection B of Section 646 of
13

14 Title 21 of the Oklahoma Statutes, of any person to a hospital or
14

15 other health care facility outside the State of Oklahoma before the
15

16 law enforcement officer was able to effect an arrest for such
16

17 offense there are exigent circumstances which necessitate the
17

18 withdrawal of blood; or
18

19 4. In the form of an order from a district court that blood be

20 withdrawn, the person authorized to withdraw the blood and the
20

21 hospital or other health care facility where the withdrawal occurs
21

22 may rely on such a statement or order as evidence that the person
22

23 has consented to or has been required to submit to the clinical
23

24 procedure and shall not require the person to sign any additional
24

Req. No. 3559 Page 245
1 consent or waiver form. In such a case, the person authorized to
1

2 perform the procedure, the employer of such person and the hospital
2

3 or other health care facility shall not be liable in any action
3

4 alleging lack of consent or lack of informed consent.
4

5 C. Collection of a person's blood, to be considered valid and

6 admissible in evidence, whether performed by or at the direction of
6

7 a law enforcement officer or at the request of the tested person,
7

8 shall have been performed by a person authorized to collect blood
8

9 pursuant to the provisions of subsection A of this section.
9

10 Analysis of a person's blood, to be considered valid and admissible
10

11 in evidence, whether performed by or at the direction of a law
11

12 enforcement officer or at the request of the tested person, shall
12

13 have been performed by a laboratory accredited in accordance with
13

14 ISO/IEC 17025 as defined in Section 150.37 of Title 74 of the
14

15 Oklahoma Statutes.
15

16 D. Collection of a person's breath, to be considered valid and

17 admissible in evidence:
17

18 1. Shall have been performed by an individual possessing a

19 valid permit issued by the Board of Tests for Alcohol and Drug
19

20 Influence for this purpose;
20

21 2. Shall have been performed on a breath alcohol measurement

22 device appearing on the most current conforming products list of
22

23 such devices published by the United States Department of
23

24 Transportation in the Federal Register, and utilizing a calibrating
24

Req. No. 3559 Page 246
1 unit appearing on the most current conforming products list of such
1

2 devices published by the United States Department of Transportation
2

3 in the Federal Register;
3

4 3. Shall have been performed on a device maintained by the

5 Board of Tests for Alcohol and Drug Influence; and
5

6 4. Shall have been performed in accordance with the operating

7 procedure prescribed by the State Director of Tests or the Board of
7

8 Tests for Alcohol and Drug Influence.
8

9 E. No person specified in subsection A of this section, no

10 employer of such person and no hospital or other health care
10

11 facility where blood is withdrawn shall incur any civil or criminal
11

12 liability as a result of the proper withdrawal of blood when acting
12

13 at the request of a law enforcement officer by the provisions of
13

14 Section 751 or 753 of this title, or when acting in reliance upon a
14

15 signed statement or court order as provided in this section, if the
15

16 act is performed in a reasonable manner according to generally
16

17 accepted clinical practice. No person specified in subsection A of
17

18 this section shall incur any civil or criminal liability as a result
18

19 of the proper collection of breath, saliva or urine when acting at
19

20 the request of a law enforcement officer under the provisions of
20

21 Section 751 or 753 of this title or when acting pursuant to a court
21

22 order.
22

23 F. The blood, breath, saliva or urine specimens obtained shall

24 be tested by the appropriate test as determined by the Board, or
24

Req. No. 3559 Page 247
1 tested by a laboratory that is exempt from the Board rules pursuant
1

2 to Section 759 of this title, to determine the alcohol concentration
2

3 thereof, or the presence or concentration of any other intoxicating
3

4 substance which might have affected the ability of the person tested
4

5 to operate a motor vehicle safely.
5

6 G. When blood is withdrawn for testing of its alcohol

7 concentration or other intoxicating substance presence or
7

8 concentration, at the request of a law enforcement officer, a
8

9 sufficient quantity of the same specimen shall be obtained to enable
9

10 the tested person, at his or her own option and expense, to have an
10

11 independent analysis made of such specimen. The excess blood
11

12 specimen shall be retained by a laboratory approved by the Board in
12

13 accordance with the rules and regulations of the Board or by a
13

14 laboratory that is exempt from the Board rules pursuant to Section
14

15 759 of this title, for sixty (60) days from the date of collection.
15

16 At any time within that period, the tested person or his or her
16

17 attorney may direct that such blood specimen be sent or delivered to
17

18 a laboratory of his or her own choosing and approved by the Board
18

19 for an independent analysis. Neither the tested person, nor any
19

20 agent of such person, shall have access to the additional blood
20

21 specimen prior to the completion of the independent analysis, except
21

22 the analyst performing the independent analysis and agents of the
22

23 analyst.
23

Req. No. 3559 Page 248
1 H. The costs of collecting blood specimens for the purpose of

2 determining the alcohol or other intoxicating substance thereof, by
2

3 or at the direction of a law enforcement officer, shall be borne by
3

4 the law enforcement agency employing such officer; provided, if the
4

5 person is convicted for any offense involving the operation of a
5

6 motor vehicle while under the influence of or while impaired by
6

7 alcohol or an intoxicating substance, or both, as a direct result of
7

8 the incident which caused the collection of blood specimens, an
8

9 amount equal to the costs shall become a part of the court costs of
9

10 the person and shall be collected by the court and remitted to the
10

11 law enforcement agency bearing the costs. The cost of collecting,
11

12 retaining and sending or delivering to an independent laboratory the
12

13 excess specimens of blood for independent analysis at the option of
13

14 the tested person shall also be borne by such law enforcement
14

15 agency. The cost of the independent analysis of such specimen of
15

16 blood shall be borne by the tested person at whose option such
16

17 analysis is performed. The tested person, or his or her agent,
17

18 shall make all necessary arrangements for the performance of such
18

19 independent analysis other than the forwarding or delivery of such
19

20 specimen.
20

21 I. Tests of blood or breath for the purpose of determining the

22 alcohol concentration thereof, and tests of blood for the purpose of
22

23 determining the presence or concentration of any other intoxicating
23

24 substance therein, under the provisions of this title, whether
24

Req. No. 3559 Page 249
1 administered by or at the direction of a law enforcement officer or
1

2 administered independently, at the option of the tested person, on
2

3 the excess specimen of such person's blood to be considered valid
3

4 and admissible in evidence under the provisions of this title, shall
4

5 have been administered in accordance with Section 759 of this title.
5

6 J. Any person who has been arrested for any offense arising out

7 of acts alleged to have been committed while the person was
7

8 operating or in actual physical control of a motor vehicle while
8

9 under the influence of alcohol, any other intoxicating substance or
9

10 the combined influence of alcohol and any other intoxicating
10

11 substance who is not requested by a law enforcement officer to
11

12 submit to a test shall be entitled to have an independent test of
12

13 his or her blood for the purpose of determining its alcohol
13

14 concentration or the presence or concentration of any other
14

15 intoxicating substance therein, performed by a person of his or her
15

16 own choosing who is qualified as stipulated in this section. The
16

17 arrested person shall bear the responsibility for making all
17

18 necessary arrangements for the administration of such independent
18

19 test and for the independent analysis of any specimens obtained, and
19

20 bear all costs thereof. The failure or inability of the arrested
20

21 person to obtain an independent test shall not preclude the
21

22 admission of other competent evidence bearing upon the question of
22

23 whether such person was under the influence of alcohol, or any other
23

Req. No. 3559 Page 250
1 intoxicating substance or the combined influence of alcohol and any
1

2 other intoxicating substance.
2

3 K. Any agency or laboratory certified by the Board or any

4 agency or laboratory that is exempt from the Board rules pursuant to
4

5 Section 759 of this title, which analyses blood shall make available
5

6 a written report of the results of the test administered by or at
6

7 the direction of the law enforcement officer to:
7

8 1. The tested person, or his or her attorney;

9 2. The Commissioner of Public Safety;

10 3. The Director of Service Oklahoma; and

11 4. The Fatality Analysis Reporting System (FARS) analyst of the

12 state, upon request.
12

13 The results of the tests provided for in this title shall be

14 admissible in all civil actions, including administrative hearings
14

15 regarding driving privileges.
15

16 SECTION 63. REPEALER 47 O.S. 2021, Section 752, as last

17 amended by Section 4, Chapter 172, O.S.L. 2025 (47 O.S. Supp. 2025,
17

18 Section 752), is hereby repealed.
18

19 SECTION 64. REPEALER 47 O.S. 2021, Section 1102, as last

20 amended by Section 60, Chapter 452, O.S.L. 2024 (47 O.S. Supp. 2025,
20

21 Section 1102), is hereby repealed.
21

22 SECTION 65. AMENDATORY 47 O.S. 2021, Section 1110, as

23 last amended by Section 1, Chapter 403, O.S.L. 2025 (47 O.S. Supp.
23

24 2025, Section 1110), is amended to read as follows:
24

Req. No. 3559 Page 251
1 Section 1110. A. 1. Except for a security interest in

2 vehicles held by a dealer for sale or lease, a vehicle registered by
2

3 a federally recognized Indian tribe as provided in subsection G of
3

4 this section, and a vehicle being registered in this state which was
4

5 previously registered in another state and which title contains the
5

6 name of a secured party on the face of the other state certificate
6

7 or title, and except as otherwise provided in subsection B of
7

8 Section 1105 of this title, a security interest in a vehicle as to
8

9 which a certificate of title may be properly issued by Service
9

10 Oklahoma shall be perfected only when a lien entry form, and the
10

11 existing certificate of title, if any, or application for a
11

12 certificate of title and manufacturer's certificate of origin
12

13 containing the name and address of the secured party and the date of
13

14 the security agreement and the required fee are delivered to Service
14

15 Oklahoma or to a licensed operator. As used in this section, the
15

16 term "dealer" shall be defined as provided in Section 1-112 of this
16

17 title and the term "security interest" shall be defined as provided
17

18 in paragraph (35) of Section 1-201 of Title 12A of the Oklahoma
18

19 Statutes. When a vehicle title is presented to a licensed operator
19

20 for transferring or registering and the documents reflect a
20

21 lienholder, the licensed operator shall perfect the lien pursuant to
21

22 subsection G of Section 1105 of this title. For the purposes of
22

23 this section, the term "vehicle" shall not include special mobilized
23

24 machinery, machinery used in highway construction or road material
24

Req. No. 3559 Page 252
1 construction and rubber-tired road construction vehicles including
1

2 rubber-tired cranes. The filing and duration of perfection of a
2

3 security interest, pursuant to the provisions of Title 12A of the
3

4 Oklahoma Statutes, including, but not limited to, Section 1-9-311 of
4

5 Title 12A of the Oklahoma Statutes, shall not be applicable to
5

6 perfection of security interests in vehicles as to which a
6

7 certificate of title may be properly issued by Service Oklahoma,
7

8 except as to vehicles held by a dealer for sale or lease and except
8

9 as provided in subsection D of this section. In all other respects
9

10 Title 12A of the Oklahoma Statutes shall be applicable to such
10

11 security interests in vehicles as to which a certificate of title
11

12 may be properly issued by Service Oklahoma.
12

13 2. Whenever a person creates a security interest in a vehicle,

14 the person shall surrender to the secured party the certificate of
14

15 title or the signed application for a new certificate of title, on
15

16 the form prescribed by Service Oklahoma, and the manufacturer's
16

17 certificate of origin. The secured party shall deliver the lien
17

18 entry form and the required lien filing fee within forty-five (45)
18

19 days as provided hereafter with certificate of title or the
19

20 application for certificate of title and the manufacturer's
20

21 certificate of origin to Service Oklahoma or to a licensed operator.
21

22 If the lien entry form, the lien filing fee and the certificate of
22

23 title or application for certificate of title and the manufacturer's
23

24 certificate of origin are delivered to Service Oklahoma or to a
24

Req. No. 3559 Page 253
1 licensed operator within forty-five (45) days after the date of the
1

2 lien entry form, perfection of the security interest shall begin
2

3 from the date of the execution of the lien entry form, but
3

4 otherwise, perfection of the security interest shall begin from the
4

5 date of the delivery to Service Oklahoma or to a licensed operator.
5

6 3. a. For each security interest recorded on a certificate

7 of title or manufacturer's certificate of origin, such

8 person shall pay a fee of Ten Dollars ($10.00), which

9 shall be in addition to other fees provided for in the

10 Oklahoma Vehicle License and Registration Act. Upon

11 the receipt of the lien entry form and the required

12 fees with either the certificate of title or an

13 application for certificate of title and

14 manufacturer's certificate of origin, a licensed

15 operator shall, by placement of a clearly

16 distinguishing mark, record the date and number shown

17 in a conspicuous place on each of these instruments.

18 Of the ten-dollar fee, the licensed operator shall

19 retain Two Dollars ($2.00) for recording the security

20 interest lien.

21 b. It shall be unlawful for any person to solicit,

22 accept, or receive any gratuity or compensation for

23 acting as a messenger and for acting as the agent or

24 representative of another person in applying for the

Req. No. 3559 Page 254
1 recording of a security interest or for the

2 registration of a motor vehicle and obtaining the

3 license plates or for the issuance of a certificate of

4 title therefor unless Service Oklahoma has appointed

5 and approved the person to perform such acts; and

6 before acting as a messenger, any such person shall

7 furnish to Service Oklahoma a surety bond in such

8 amount as Service Oklahoma shall determine

9 appropriate.

10 4. The certificate of title or the application for certificate

11 of title and manufacturer's certificate of origin with the record of
11

12 the date of receipt clearly marked thereon shall be returned to the
12

13 debtor together with a notice that the debtor is required to
13

14 register and pay all additional fees and taxes due within thirty
14

15 (30) days from the date of purchase of the vehicle.
15

16 5. Any person creating a security interest in a vehicle that

17 has been previously registered in the debtor's name and on which all
17

18 taxes due the state have been paid shall surrender the certificate
18

19 of ownership to the secured party. The secured party shall have the
19

20 duty to record the security interest as provided in this section and
20

21 shall, at the same time, obtain a new certificate of title which
21

22 shall show the secured interest on the face of the certificate of
22

23 title.
23

Req. No. 3559 Page 255
1 6. The lien entry form with the date and assigned number

2 thereof clearly marked thereon shall be returned to the secured
2

3 party. If the lien entry form is received and authenticated, as
3

4 herein provided, by a licensed operator, the licensed operator shall
4

5 make a report thereof to Service Oklahoma upon the forms and in the
5

6 manner as may be prescribed by Service Oklahoma.
6

7 7. Service Oklahoma shall have the duty to record the lien upon

8 the face of the certificate of title issued at the time of
8

9 registering and paying all fees and taxes due on the vehicle.
9

10 8. When there is an active lien from a commercial lender in

11 place on a vehicle, licensed operators shall be prohibited from
11

12 transferring the certificate of title on that vehicle until the lien
12

13 is satisfied, except when the title is transferred:
13

14 a. to a person whose name is included on the loan for

15 which the lien is placed pursuant to an agreement by

16 the lender and any party to the title,

17 b. to a trust created by a person whose name is included

18 on the loan for which the lien is placed, or

19 c. from a person who has died, upon the submission of a

20 death certificate, or

21 d. upon attestation by the managing member indicating

22 ownership, to a business entity from a person who owns

23 at least fifty percent (50%) of the business entity

24 receiving title. As part of such transfer, the

Req. No. 3559 Page 256
1 business entity receiving title and at the discretion

2 of the financial institution holding the lien, the

3 individual transferring title and the receiving

4 business entity may be added as an obligor to the

5 original note secured by the collateral to which the

6 transferring individual is a borrower. This shall not

7 be construed to require refinancing of the original

8 note. Service Oklahoma shall provide notification of

9 the transaction to the lienholder, ninety (90) days

10 prior to effectuating the title transfer and shall

11 develop an appropriate affidavit and notice necessary

12 to effectuate a transfer of title. A title transfer

13 initiated pursuant to this subparagraph shall not

14 preclude the lienholder from exercising all remedies

15 available to it in accordance with an agreement

16 between the lienholder and the individual transferring

17 title, up to and including repossession of the vehicle

18 and civil action against the individual transferring

19 title and receiving business entity. Further, until

20 the original lien is satisfied, the receiving business

21 entity shall be prohibited from transferring title to

22 another entity or person. Types of business entities

23 that may receive a transfer of title pursuant to this

24 subparagraph shall be limited to:

Req. No. 3559 Page 257
1 (1) sole proprietorships,

2 (2) general partnerships,

3 (3) limited partnerships,

4 (4) limited liability companies,

5 (5) professional limited partnerships, and

6 (6) professional limited liability companies.

7 No individual may perform a transfer, pursuant to this

8 subparagraph, to any business entity that is currently

9 engaging in any activity which is prohibited by

10 federal or state law.

11 The provisions of this paragraph shall not be construed to release
11

12 any lien or debt based solely upon a transfer of certificate of
12

13 title.
13

14 B. 1. A secured party shall, within seven (7) business days

15 after the satisfaction of the security interest, furnish directly or
15

16 by mail a release of a security interest to Service Oklahoma and
16

17 mail a copy thereof to the last-known address of the debtor. If the
17

18 security interest has been satisfied by payment from a licensed used
18

19 motor vehicle dealer to whom the motor vehicle has been transferred,
19

20 the secured party shall also, within seven (7) business days after
20

21 receipt of a written request from such licensed used motor vehicle
21

22 dealer, mail an additional copy of the release to the dealer. If
22

23 the secured party fails to furnish the release as required, the
23

24 secured party shall be liable to the debtor for a penalty of One
24

Req. No. 3559 Page 258
1 Hundred Dollars ($100.00). Following the seven (7) business days
1

2 after satisfaction of the lien and upon receipt by the lienholder of
2

3 written communication demanding the release of the lien, thereafter
3

4 the penalty shall increase to One Hundred Dollars ($100.00) per day
4

5 for each additional day beyond seven (7) business days until
5

6 accumulating to One Thousand Five Hundred Dollars ($1,500.00) or the
6

7 value of the vehicle, whichever is less, and, in addition, any loss
7

8 caused to the debtor by such failure.
8

9 2. Upon release of a security interest the owner may obtain a

10 new certificate of title omitting reference to the security
10

11 interest, by submitting to Service Oklahoma or to a licensed
11

12 operator:
12

13 a. a release signed by the secured party, an application

14 for new certificate of title, and the proper fees, or

15 b. by submitting to Service Oklahoma or the licensed

16 operator an affidavit, supported by such documentation

17 as Service Oklahoma may require, by the owner on a

18 form prescribed by Service Oklahoma stating that the

19 security interest has been satisfied and stating the

20 reasons why a release cannot be obtained, an

21 application for a new certificate of title and the

22 proper fees.

23 Upon receiving such affidavit that the security interest has been
23

24 satisfied, Service Oklahoma shall issue a new certificate of title
24

Req. No. 3559 Page 259
1 eliminating the satisfied security interest and the name and address
1

2 of the secured parties who have been paid and satisfied. Service
2

3 Oklahoma shall accept a release of a security interest in any form
3

4 that identifies the debtor, the secured party, and the vehicle, and
4

5 contains the signature of the secured party. Service Oklahoma shall
5

6 not require any particular form for the release of a security
6

7 interest.
7

8 The words "security interest" when used in the Oklahoma Vehicle

9 License and Registration Act do not include liens dependent upon
9

10 possession.
10

11 C. Service Oklahoma shall file and index certificates of title

12 so that at all times it will be possible to trace a certificate of
12

13 title to the vehicle designated therein, identify the lien entry
13

14 form, and the names and addresses of secured parties, or their
14

15 assignees, so that all or any part of such information may be made
15

16 readily available to those who make legitimate inquiry of Service
16

17 Oklahoma as to the existence or nonexistence of security interest in
17

18 the vehicle.
18

19 D. 1. Any security interest in a vehicle properly perfected

20 prior to July 1, 1979, may be continued as to its effectiveness or
20

21 duration as provided by Sections 1-9-510 and 1-9-515 of Title 12A of
21

22 the Oklahoma Statutes, or may be terminated, assigned, or released
22

23 as provided by Sections 1-9-512, 1-9-513, and 1-9-514 of Title 12A
23

24 of the Oklahoma Statutes, as fully as if this section had not been
24

Req. No. 3559 Page 260
1 enacted, or, at the option of the secured party, may also be
1

2 perfected under this section, and, if so perfected, the time of
2

3 perfection under this section shall be the date the security
3

4 interest was originally perfected under the prior law.
4

5 2. Upon request of the secured party, the debtor or any other

6 holder of the certificate of title shall surrender the certificate
6

7 of title to the secured party and shall do such other acts as may be
7

8 required to perfect the security interest under this section.
8

9 E. If a manufactured home is permanently affixed to real

10 estate, an Oklahoma certificate of title may be surrendered to
10

11 Service Oklahoma or a licensed operator for cancellation. When the
11

12 document of title is surrendered, the owner shall provide the legal
12

13 description or the appropriate tract or parcel number of the real
13

14 estate and other information as may be required on a form provided
14

15 by Service Oklahoma. Service Oklahoma may not cancel a document of
15

16 title if a lien has been registered or recorded. Service Oklahoma
16

17 or the licensed operator shall notify the owner and any lienholder
17

18 that the title has been surrendered to Service Oklahoma and that
18

19 Service Oklahoma may not cancel the title until the lien is
19

20 released. Such notification shall include a description of the lien
20

21 and such notification to the owner shall be accompanied by the
21

22 return of title surrendered. Permanent attachment to real estate
22

23 does not affect the validity of a lien recorded or registered with
23

24 Service Oklahoma before the document of title is canceled pursuant
24

Req. No. 3559 Page 261
1 to this section. The rights of a prior lienholder pursuant to a
1

2 security agreement or the provisions of a credit transaction and the
2

3 rights of the state pursuant to a tax lien are preserved. Service
3

4 Oklahoma or the licensed operator shall forward the information to
4

5 the county assessor of the county where the real estate is located
5

6 and indicate whether the original document of title has been
6

7 canceled. A fee of Five Dollars ($5.00) shall accompany the
7

8 application for cancellation of title. When the fee is paid by a
8

9 person making an application directly with Service Oklahoma, the fee
9

10 shall be deposited in the Oklahoma Tax Commission Fund. Beginning
10

11 January 1, 2023, the fee shall be deposited in the Service Oklahoma
11

12 Revolving Fund. A fee paid to a licensed operator shall be retained
12

13 by the licensed operator. The owner of a manufactured home upon
13

14 which the document of title has been properly surrendered may apply
14

15 to Service Oklahoma for issuance of a new original certificate of
15

16 title upon submission of:
16

17 1. An attestation from the homeowner indicating ownership of

18 the manufactured home and the nonexistence of any security interest
18

19 or lien of record in the manufactured home; and
19

20 2. A title opinion by a licensed attorney, determining that the

21 owner of the manufactured home has marketable title to the real
21

22 property upon which the manufactured home is located and that no
22

23 documents filed of record in the county clerk's office concerning
23

24 the real property contain a mortgage, recorded financial statement,
24

Req. No. 3559 Page 262
1 judgment, or lien of record. Persons or entities to whom the title
1

2 opinion is addressed may rely on the title opinion. A security
2

3 interest in a manufactured home perfected pursuant to this section
3

4 shall have priority over a conflicting interest of a mortgagee or
4

5 other lien encumbrancer, or the owner of the real property upon
5

6 which the manufactured home became affixed or otherwise permanently
6

7 attached. The holder of the security interest in the manufactured
7

8 home, upon default, may remove the manufactured home from such real
8

9 property. The holder of the security interest in the manufactured
9

10 home shall reimburse the owner of the real property who is not the
10

11 debtor and who has not otherwise agreed to access the real property
11

12 for the cost of repair of any physical injury to the real property,
12

13 but shall not be liable for any diminution in value to the real
13

14 property caused by the removal of the manufactured home, trespass,
14

15 or any other damages caused by the removal. The debtor shall notify
15

16 the holder of the security interest in the manufactured home of the
16

17 street address, if any, and the legal description of the real
17

18 property upon which the manufactured home is affixed or otherwise
18

19 permanently attached and shall sign such other documents, including
19

20 any appropriate mortgage, as may reasonably be requested by the
20

21 holder of such security interest.
21

22 F. In the case of motor vehicles or trailers, notwithstanding

23 any other provision of law, a transaction does not create a sale or
23

24 security interest merely because it provides that the rental price
24

Req. No. 3559 Page 263
1 is permitted or required to be adjusted under the agreement either
1

2 upward or downward by reference to the amount realized upon sale or
2

3 other disposition of the motor vehicle or trailer.
3

4 G. A security interest in vehicles registered by a federally

5 recognized Indian tribe shall be deemed valid under Oklahoma law if
5

6 validly perfected under the applicable tribal law and the lien is
6

7 noted on the face of the tribal certificate of title.
7

8 SECTION 66. REPEALER 47 O.S. 2021, Section 1110, as last

9 amended by Section 1, Chapter 323, O.S.L. 2024 (47 O.S. Supp. 2025,
9

10 Section 1110), is hereby repealed.
10

11 SECTION 67. AMENDATORY 47 O.S. 2021, Section 1113, as

12 last amended by Section 72, Chapter 452, O.S.L. 2024 (47 O.S. Supp.
12

13 2025, Section 1113), is amended to read as follows:
13

14 Section 1113. A. 1. Except for all-terrain vehicles, utility

15 vehicles and motorcycles used exclusively off roads and highways,
15

16 upon the filing of a registration application and the payment of the
16

17 fees provided for in the Oklahoma Vehicle License and Registration
17

18 Act, Service Oklahoma or the Corporation Commission, as applicable,
18

19 shall assign to the vehicle described in the application a
19

20 distinctive number, and issue to the owner of the vehicle a
20

21 certificate of registration, one license plate and a yearly decal,
21

22 unless otherwise previously issued pursuant to the Oklahoma Vehicle
22

23 License and Registration Act. Service Oklahoma shall assign an all-
23

24 terrain vehicle, utility vehicle or motorcycle used exclusively off
24

Req. No. 3559 Page 264
1 roads and highways a distinctive number and issue to the owner a
1

2 certificate of registration and a decal but not a license plate.
2

3 For each subsequent registration year, Service Oklahoma shall issue
3

4 a yearly decal to be affixed to the license plate, except for an
4

5 all-terrain vehicle, utility vehicle or motorcycle used exclusively
5

6 off roads and highways. The initial decal for an all-terrain
6

7 vehicle, utility vehicle or motorcycle shall be attached to the
7

8 front of the vehicle and shall be in clear view. The decal shall be
8

9 on the front or on the front fork of the motorcycle used exclusively
9

10 off roads and highways and the decal shall be in clear view. The
10

11 yearly decal shall have an identification number and the last two
11

12 numbers of the registration year for which it shall expire. Except
12

13 as provided by Section 1113A of this title, the license plate shall
13

14 be affixed to the exterior of the vehicle until a replacement
14

15 license plate is applied for. If the owner applies for a
15

16 replacement license plate, Service Oklahoma shall charge the fee
16

17 provided for in Section 1114 of this title. The yearly decal will
17

18 validate the license plate for each registration period other than
18

19 the year the license plate is issued. The license plate and decal
19

20 shall be of such size, color, design and numbering as Service
20

21 Oklahoma may direct. However, yearly decals issued to the owner of
21

22 a vehicle who has filed an affidavit with the appropriate licensed
22

23 operator in accordance with Section 7-607 of this title shall be a
23

24 separate and distinct color from all other decals issued under this
24

Req. No. 3559 Page 265
1 section. Before the effective date of this act, Service Oklahoma
1

2 shall also issue a monthly decal which shall include a two-letter
2

3 abbreviation corresponding to the county in which the vehicle is
3

4 registered. Service Oklahoma shall issue all decals in the
4

5 possession of Service Oklahoma on the effective date of this act
5

6 before issuing any decals which do not contain the county
6

7 abbreviation.
7

8 2. a. The operation of a street-legal utility vehicle on the

9 streets and highways of this state requires the

10 vehicle be issued a certificate of registration and

11 license plate to be renewed annually. Upon the filing

12 of a registration application and the payment of the

13 fees provided for in the Oklahoma Vehicle License and

14 Registration Act, Service Oklahoma or the Corporation

15 Commission, as applicable, shall assign to the vehicle

16 described in the application a distinctive number, and

17 issue to the owner of the vehicle a certificate of

18 registration, one license plate and a yearly decal.

19 For each subsequent registration year, Service

20 Oklahoma shall issue a yearly decal to be affixed to

21 the license plate. The initial decal for a street-

22 legal utility vehicle shall be attached to the front

23 of the vehicle and shall be in clear view. The yearly

24 decal shall have an identification number and the last

Req. No. 3559 Page 266
1 two numbers of the registration year for which it

2 shall expire. Except as provided by Section 1113A of

3 this title, the license plate shall be affixed to the

4 exterior of the vehicle until a replacement license

5 plate is issued. If the owner applies for a

6 replacement license plate, Service Oklahoma shall

7 charge the fee provided for in Section 1114 of this

8 title. The yearly decal will validate the license

9 plate for each registration period other than the year

10 the license plate is issued. The license plate and

11 decal shall be of such size, color, design, and

12 numbering as Service Oklahoma may direct. However,

13 yearly decals issued to the owner of a vehicle who has

14 filed an affidavit with the appropriate licensed

15 operator in accordance with Section 7-607 of this

16 title shall be a separate and distinct color from all

17 other decals issued under this section.

18 b. Service Oklahoma shall design and issue a temporary

19 tag to out-of-state owners of street-legal utility

20 vehicles. The temporary tag shall be recognized in

21 lieu of registration in this state. The temporary tag

22 shall clearly indicate the date of issuance and the

23 date of expiration, which shall be five (5) days,

24 including the day of issuance. Upon application for a

Req. No. 3559 Page 267
1 temporary tag, the out-of-state owner shall show proof

2 of insurance coverage that satisfies the requirements

3 of the Compulsory Insurance Law pursuant to Section 7-

4 600 et seq. of this title. Service Oklahoma is

5 authorized to promulgate rules and procedures to

6 implement the provisions of this paragraph.

7 3. a. The operation of a military surplus vehicle, as

8 defined by Section 1-133.1a of this title, on the

9 streets and highways of this state requires that the

10 vehicle be issued a certificate of registration and

11 license plate to be renewed annually. Upon the filing

12 of a registration application and the payment of the

13 fees provided for in the Oklahoma Vehicle License and

14 Registration Act, Service Oklahoma or the Corporation

15 Commission, as applicable, shall design and assign

16 license plates of a distinctive design in lieu of the

17 usual license plates that shall show, in addition to

18 the identification number, that the vehicle meets the

19 qualifications of a military surplus vehicle, as the

20 case may be, owned by an Oklahoma military surplus

21 vehicle collector. The registration shall be valid

22 for one (1) year and may be renewed by payment of such

23 annual fee. The yearly decal shall have an

24 identification number and the last two numbers of the

Req. No. 3559 Page 268
1 registration year for which it shall expire. Except

2 as provided by Section 1113A of this title, the

3 license plate shall be affixed to the exterior of the

4 vehicle until a replacement license plate is issued.

5 If the owner applies for a replacement license plate,

6 Service Oklahoma shall charge the fee provided for in

7 Section 1114 of this title. The yearly decal will

8 validate the license plate for each registration

9 period other than the year the license plate is

10 issued. The license plate and decal shall be of such

11 size, color, design, and numbering as Service Oklahoma

12 may direct. However, yearly decals issued to the

13 owner of a vehicle who has filed an affidavit with the

14 appropriate licensed operator in accordance with

15 Section 7-607 of this title shall be a separate and

16 distinct color from all other decals issued under this

17 section.

18 b. Each military surplus vehicle collector, as defined by

19 Section 1-133.1b of this title, who applies for

20 military surplus vehicle license plates will be issued

21 a military surplus collector's identification number

22 that will appear on each license plate. Second and

23 all subsequent registrations under this section by the

24 same collector will bear the same collector's

Req. No. 3559 Page 269
1 identification number followed by a suffix letter for

2 vehicle identification.

3 c. A military surplus vehicle collector must own and have

4 registered one or more vehicles with regular Oklahoma

5 license plates that are used for regular

6 transportation.

7 d. There shall be a one-time processing fee of Twenty

8 Dollars ($20.00) to defray the cost of issuing the

9 original military surplus vehicle collector's military

10 surplus vehicle designation license plates to ensure

11 that each collector will be issued only one

12 collector's identification number.

13 4. The license plate shall be securely attached to the rear of

14 the vehicle, except truck-tractor plates which shall be attached to
14

15 the front of the vehicle. Service Oklahoma may, with the
15

16 concurrence of the Department of Public Safety, by Joint Rule,
16

17 change and direct the manner, place and location of display of any
17

18 vehicle license plate when such action is deemed in the public
18

19 interest. The license plate, decal and all letters and numbers
19

20 shall be clearly visible at all times. The operation of a vehicle
20

21 in this state, regardless of where such vehicle is registered, upon
21

22 which the license plate is covered, overlaid, or otherwise screened
22

23 with any material, whether such material be clear, translucent,
23

24 tinted or opaque, shall be a violation of this paragraph.
24

Req. No. 3559 Page 270
1 5. Upon payment of the annual registration fee provided in

2 Section 1133 of this title, Service Oklahoma or the Corporation
2

3 Commission, as applicable, or a licensed operator may issue a
3

4 permanent nonexpiring license plate to an owner of one hundred or
4

5 more commercial motor vehicles and for vehicles registered under the
5

6 provisions of Section 1120 of this title. Upon payment of the
6

7 annual registration fee, Service Oklahoma or the Corporation
7

8 Commission shall issue a certificate of registration that shall be
8

9 carried at all times in the vehicle for which it is issued.
9

10 Provided, if the registrant submits its application through
10

11 electronic means, such qualified owners of one hundred or more
11

12 commercial motor vehicles, properly registered pursuant to the
12

13 provisions of Section 1133 of this title, may elect to receive a
13

14 permanent certificate of registration that shall be carried at all
14

15 times in the vehicle for which it is issued.
15

16 6. Every vehicle owned by an agency of this state shall be

17 exempt from the payment of registration fees required by this title.
17

18 Provided, such vehicle shall be registered and shall otherwise
18

19 comply with the provisions of the Oklahoma Vehicle License and
19

20 Registration Act.
20

21 B. The license plates required under the provisions of this

22 title shall conform to the requirements and specifications listed
22

23 hereinafter:
23

Req. No. 3559 Page 271
1 1. Each license plate shall have a space for the placement of

2 the yearly decals for each succeeding year of registration after the
2

3 initial issue;
3

4 2. The provisions of the Oklahoma Vehicle License and

5 Registration Act regarding the issuance of yearly decals shall not
5

6 apply to the issuance of apportioned license plates, including
6

7 license plates for state vehicles, and exempt plates for
7

8 governmental entities and fire departments organized pursuant to
8

9 Section 592 of Title 18 of the Oklahoma Statutes;
9

10 3. All license plates and decals shall be made with

11 reflectorized material as a background to the letters, numbers and
11

12 characters displayed thereon. The reflectorized material shall be
12

13 of such a nature as to provide effective and dependable brightness
13

14 during the service period for which the license plate or decal is
14

15 issued;
15

16 4. Except as otherwise provided in this subsection, Service

17 Oklahoma shall design appropriate official license plates for all
17

18 state vehicles. Such license plates shall be permanent in nature
18

19 and designed in such manner as to remain with the vehicle for the
19

20 duration of the vehicle's life span or until the title is
20

21 transferred to a nongovernmental owner;
21

22 5. Within the limits prescribed in this section, Service

23 Oklahoma shall design appropriate official license plates for
23

24 vehicles of the Oklahoma Highway Patrol. The license plates shall
24

Req. No. 3559 Page 272
1 have the legend "Oklahoma OK" and shall contain the letters "OHP"
1

2 followed by the state seal and the badge number of the Highway
2

3 Patrol officer to whom the vehicle is assigned. The words "Oklahoma
3

4 Highway Patrol" shall also be included on such license plates;
4

5 6. Within the limits prescribed in this section, Service

6 Oklahoma shall design appropriate official license plates for
6

7 vehicles of the Oklahoma Military Department of the State of
7

8 Oklahoma. Such license plates shall have the legend "Oklahoma OK"
8

9 and shall contain the letters "OMD" followed by the state seal and
9

10 three numbers or letters as designated by the Adjutant General. The
10

11 words "Oklahoma Military Department" shall also be included on such
11

12 license plates;
12

13 7. Within the limits prescribed in this section, Service

14 Oklahoma shall design appropriate official license plates for
14

15 vehicles of the Oklahoma Department of Corrections. Such license
15

16 plates shall contain the letters "DOC" followed by the Department of
16

17 Corrections badge and three numbers or letters or combination of
17

18 both as designated by the Director of the agency. The words
18

19 "Department of Corrections" shall also be included on such license
19

20 plates; and
20

21 8. Within the limits prescribed in this section, the Oklahoma

22 Tourism and Recreation Department shall design any license plates
22

23 required by the initiation of a license plate reissuance by Service
23

24 Oklahoma at the request of the Department of Public Safety pursuant
24

Req. No. 3559 Page 273
1 to the provisions of Section 1113.2 of this title. Any such new
1

2 designs shall be submitted by the Oklahoma Tourism and Recreation
2

3 Department to the Department of Public Safety for its approval prior
3

4 to being issued by Service Oklahoma.
4

5 C. Where the applicant has satisfactorily shown that the

6 applicant owns the vehicle sought to be registered but is unable to
6

7 produce documentary evidence of the ownership, a license plate may
7

8 be issued upon approval by Service Oklahoma or the Corporation
8

9 Commission, as applicable. In such instances the reason for not
9

10 issuing a certificate of title shall be indicated on the receipt
10

11 given to the applicant. It shall still be the duty of the applicant
11

12 to immediately take all necessary steps to obtain the Oklahoma
12

13 certificate of title and it shall be unlawful for the applicant to
13

14 sell the vehicle until the certificate has been obtained in the
14

15 applicant's name.
15

16 D. The certificate of registration provided for in this section

17 shall be in convenient form, and the certificate of registration, or
17

18 a certified copy or photostatic copy thereof, duly authenticated by
18

19 Service Oklahoma or the Corporation Commission, as applicable, shall
19

20 be carried at all times in or upon all vehicles so registered, in
20

21 such manner as to permit a ready examination thereof upon demand by
21

22 any peace officer of the state or duly authorized employee of the
22

23 Department of Public Safety. Any such officer or agent may seize
23

24 and hold such vehicle when the operator of the same does not have
24

Req. No. 3559 Page 274
1 the registration certificate in the operator's possession or when
1

2 any such officer or agent determines that the registration
2

3 certificate has been obtained by misrepresentation of any essential
3

4 or material fact or when any number or identifying information
4

5 appearing on such certificate has been changed, altered, obliterated
5

6 or concealed in any way, until the proper registration or
6

7 identification of such vehicle has been made or produced by the
7

8 owner thereof.
8

9 E. The purchaser of a new or used manufactured home shall,

10 within thirty (30) days of the date of purchase, register the home
10

11 with Service Oklahoma or a licensed operator pursuant to the
11

12 provisions of Section 1117 of this title. For a new manufactured
12

13 home, it shall be the responsibility of the dealer selling the home
13

14 to place a temporary license plate on the home in the same manner as
14

15 provided in Section 1128 of this title for other new motor vehicles.
15

16 For the first year that any manufactured home is registered in this
16

17 state, Service Oklahoma shall issue a metal license plate which
17

18 shall be affixed to the manufactured home. The temporary dealer
18

19 license plate or the metal license plate shall be displayed on the
19

20 manufactured home at all times when upon a public roadway; provided,
20

21 a repossession affidavit issued pursuant to Sections 1110 and 1126
21

22 of this title shall be permissible in lieu of a current license
22

23 plate and decal for the purposes of removing a repossessed
23

24 manufactured home to a secure location. Manufactured homes
24

Req. No. 3559 Page 275
1 previously registered and subject to ad valorem taxation as provided
1

2 by law shall have a decal affixed at the time ad valorem taxes are
2

3 paid for such manufactured home; provided, for a manufactured home
3

4 permanently affixed to real estate, no decal or license plate shall
4

5 be required to be affixed and the owner thereof shall be given a
5

6 receipt upon payment of ad valorem taxes due on the home. Service
6

7 Oklahoma shall make sufficient plates and decals available to the
7

8 various licensed operators of the state in order for an owner of a
8

9 manufactured home to acquire the plate or decal. A one-dollar fee
9

10 shall be charged for issuance of any plate or decal. The fee shall
10

11 be apportioned each month to the General Revenue Fund of the State
11

12 Treasury.
12

13 F. The decal shall be easily visible for purposes of

14 verification by a county assessor that the manufactured home is
14

15 properly assessed for ad valorem taxation. In the first year of
15

16 registration, a decal shall be issued for placement on the license
16

17 plate indicating payment of applicable registration fees and excise
17

18 taxes. A duplicate manufactured home registration decal shall be
18

19 affixed inside the window nearest the front door of the manufactured
19

20 home. In the second and all subsequent years for which the
20

21 manufactured home is subject to ad valorem taxation, an annual decal
21

22 shall be affixed inside the window nearest the front door as
22

23 evidence of payment of ad valorem taxes. Service Oklahoma shall
23

24 issue decals to the various county treasurers of the state in order
24

Req. No. 3559 Page 276
1 for a manufactured home owner to obtain such decal each year. Upon
1

2 presentation of a valid ad valorem tax receipt, the manufactured
2

3 home owner shall be issued the annual decal.
3

4 G. Upon the registration of a manufactured home in this state

5 for the first time or upon discovery of a manufactured home
5

6 previously registered within this state for which the information
6

7 required by this subsection is not known, Service Oklahoma shall
7

8 obtain:
8

9 1. The name of the owner of the manufactured home;

10 2. The serial number or identification number of the

11 manufactured home;
11

12 3. A legal description or address of the location for the home;

13 4. The actual retail selling price of the manufactured home

14 excluding Oklahoma taxes;
14

15 5. The certificate of title number for the home; and

16 6. Any other information which Service Oklahoma deems to be

17 necessary.
17

18 The application for registration shall also include the school

19 district in which the manufactured home is located or is to be
19

20 located. The information shall be entered into a computer data
20

21 system which shall be used by Service Oklahoma to provide
21

22 information to county assessors upon request by the assessor. The
22

23 assessor may request any information from the system in order to
23

24 properly assess a manufactured home for ad valorem taxation.
24

Req. No. 3559 Page 277
1 SECTION 68. REPEALER 47 O.S. 2021, Section 1113, as last

2 amended by Section 8, Chapter 236, O.S.L. 2024 (47 O.S. Supp. 2025,
2

3 Section 1113), is hereby repealed.
3

4 SECTION 69. AMENDATORY 47 O.S. 2021, Section 1132, as

5 last amended by Section 10, Chapter 236, O.S.L. 2024 (47 O.S. Supp.
5

6 2025, Section 1132), is amended to read as follows:
6

7 Section 1132. A. For all vehicles, unless otherwise

8 specifically provided by the Oklahoma Vehicle License and
8

9 Registration Act, a registration fee shall be assessed at the time
9

10 of initial registration by the owner and annually thereafter, for
10

11 the use of the avenues of public access within this state in the
11

12 following amounts:
12

13 1. For the first through the fourth year of registration in

14 this state or any other state, Eighty-five Dollars ($85.00);
14

15 2. For the fifth through the eighth year of registration in

16 this state or any other state, Seventy-five Dollars ($75.00);
16

17 3. For the ninth through the twelfth year of registration in

18 this state or any other state, Fifty-five Dollars ($55.00);
18

19 4. For the thirteenth through the sixteenth year of

20 registration in this state or any other state, Thirty-five Dollars
20

21 ($35.00); and
21

22 5. For the seventeenth and any following year of registration

23 in this state or any other state, Fifteen Dollars ($15.00).
23

Req. No. 3559 Page 278
1 The registration fee provided for in this subsection shall be in

2 lieu of all other taxes, general or local, unless otherwise
2

3 specifically provided.
3

4 On and after January 1, 2022, if a physically disabled license

5 plate is issued pursuant to paragraph 3 of subsection B of Section
5

6 1135.1 of this title, any registration fee required for such license
6

7 plate and the fee required pursuant to this subsection shall be
7

8 remitted at the same time and subject to a single registration
8

9 period. Upon receipt of a physically disabled license plate, the
9

10 standard-issue license plate must be surrendered to Service Oklahoma
10

11 or the licensed operator. The physically disabled license plate
11

12 must be properly displayed as required for a standard-issue license
12

13 plate and will be the sole license plate issued and assigned to the
13

14 vehicle. Service Oklahoma shall determine, by rule, a method for
14

15 making required fee adjustments when a physically disabled license
15

16 plate is obtained during a twelve-month period for which a
16

17 registration fee has already been remitted pursuant to this
17

18 subsection. The combination of fees in a single remittance shall
18

19 not alter the apportionment otherwise provided for by law.
19

20 B. For all-terrain vehicles and motorcycles used exclusively

21 for use off roads or highways purchased on or after July 1, 2005,
21

22 and for all-terrain vehicles and motorcycles used exclusively for
22

23 use off roads or highways purchased prior to July 1, 2005, which the
23

24 owner chooses to register pursuant to the provisions of Section
24

Req. No. 3559 Page 279
1 1115.3 of this title, an initial and nonrecurring registration fee
1

2 of Eleven Dollars ($11.00) shall be assessed at the time of initial
2

3 registration by the owner. Nine Dollars ($9.00) of the registration
3

4 fee shall be deposited in the Tax Commission Reimbursement Fund
4

5 through December 31, 2022, and beginning January 1, 2023, this fee
5

6 shall be deposited in the Service Oklahoma Reimbursement Fund. Two
6

7 Dollars ($2.00) of the registration fee shall be retained by the
7

8 licensed operator. The fees required by subsection A of this
8

9 section shall not be required for all-terrain vehicles or
9

10 motorcycles used exclusively off roads and highways.
10

11 C. For utility vehicles used exclusively for use off roads or

12 highways purchased on or after July 1, 2008, and for utility
12

13 vehicles used exclusively for use off roads or highways purchased
13

14 prior to July 1, 2008, which the owner chooses to register pursuant
14

15 to the provisions of Section 1115.3 of this title, an initial and
15

16 nonrecurring registration fee of Eleven Dollars ($11.00) shall be
16

17 assessed at the time of initial registration by the owner. Nine
17

18 Dollars ($9.00) of the registration fee shall be deposited in the
18

19 Tax Commission Reimbursement Fund through December 31, 2022, and
19

20 beginning January 1, 2023, this fee shall be deposited in the
20

21 Service Oklahoma Reimbursement Fund. Two Dollars ($2.00) of the
21

22 registration fee shall be retained by the licensed operator. The
22

23 fees required by subsection A of this section shall not be required
23

24 for utility vehicles used exclusively off roads and highways.
24

Req. No. 3559 Page 280
1 D. There shall be a credit allowed with respect to the fee for

2 registration of a new vehicle which is a replacement for:
2

3 1. A new original vehicle which is stolen from the

4 purchaser/registrant within ninety (90) days of the date of purchase
4

5 of the original vehicle as certified by a police report or other
5

6 documentation as required by Service Oklahoma; or
6

7 2. A defective new original vehicle returned by the

8 purchaser/registrant to the seller within six (6) months of the date
8

9 of purchase of the defective new original vehicle as certified by
9

10 the manufacturer.
10

11 The credit shall be in the amount of the fee for registration

12 which was paid for the new original vehicle and shall be applied to
12

13 the registration fee for the replacement vehicle. In no event will
13

14 the credit be refunded.
14

15 E. Upon every transfer or change of ownership of a vehicle, the

16 new owner shall obtain title for and, except in the case of salvage
16

17 vehicles and manufactured homes, register the vehicle within two (2)
17

18 months of change of ownership and pay a transfer fee of Fifteen
18

19 Dollars ($15.00) in addition to any other fees provided for in the
19

20 Oklahoma Vehicle License and Registration Act. Additionally, within
20

21 two (2) business days of the date of the sale or transfer of the
21

22 motor vehicle, the parties must submit the requisite documentation
22

23 to Service Oklahoma or a licensed operator identifying the motor
23

24 vehicle subject to the sale or transfer, purchaser information, and
24

Req. No. 3559 Page 281
1 any associated license plate on the vehicle, pursuant to the
1

2 requirements of Section 1112.2 of this title. No new decal shall be
2

3 issued to the registrant for an existing license plate. Thereafter,
3

4 the owner shall register the vehicle annually on the anniversary
4

5 date of its initial registration in this state and shall pay the
5

6 fees provided in subsection A of this section and receive a decal
6

7 evidencing such payment. Provided, used motor vehicle dealers shall
7

8 be exempt from the provisions of this section.
8

9 F. In the event a new or used vehicle is not registered,

10 titled, and tagged within two (2) months from the date of transfer
10

11 of ownership, the penalty for the failure of the owner of the
11

12 vehicle to register the vehicle within two (2) months shall be One
12

13 Dollar ($1.00) per day, provided that in no event shall the penalty
13

14 exceed One Hundred Dollars ($100.00). No penalty shall be waived by
14

15 Service Oklahoma or any licensed operator except as provided in
15

16 subsection C of Section 1127 of this title, or when it can be shown
16

17 the vehicle was stolen as certified by a police report or other
17

18 documentation as required by the Oklahoma Tax Commission. Of each
18

19 one-dollar penalty collected pursuant to this subsection:
19

20 1. Twenty-one cents ($0.21) shall be apportioned as provided in

21 Section 1104 of this title;
21

22 2. Twenty-one cents ($0.21) shall be retained by the licensed

23 operator; and
23

Req. No. 3559 Page 282
1 3. Fifty-eight cents ($0.58) shall be deposited in the General

2 Revenue Fund.
2

3 SECTION 70. REPEALER 47 O.S. 2021, Section 1132, as last

4 amended by Section 75, Chapter 452, O.S.L. 2024 (47 O.S. Supp. 2025,
4

5 Section 1132), is hereby repealed.
5

6 SECTION 71. REPEALER 51 O.S. 2021, Section 6, as amended

7 by Section 1, Chapter 303, O.S.L. 2025 (51 O.S. Supp. 2025, Section
7

8 6), is hereby repealed.
8

9 SECTION 72. AMENDATORY 51 O.S. 2021, Section 24A.5, as

10 last amended by Section 2, Chapter 404, O.S.L. 2025 (51 O.S. Supp.
10

11 2025, Section 24A.5), is amended to read as follows:
11

12 Section 24A.5. All records of public bodies and public

13 officials shall be open to any person for inspection, copying, or
13

14 mechanical reproduction during regular business hours; provided:
14

15 1. The Oklahoma Open Records Act, Sections 24A.1 through 24A.34

16 of this title, does not apply to records specifically required by
16

17 law to be kept confidential including:
17

18 a. records protected by a state evidentiary privilege

19 such as the attorney-client privilege, the work

20 product immunity from discovery and the identity of

21 informer privileges,

22 b. records of what transpired during meetings of a public

23 body lawfully closed to the public such as executive

Req. No. 3559 Page 283
1 sessions authorized under the Oklahoma Open Meeting

2 Act,

3 c. personal information within driver records as defined

4 by the Driver's Privacy Protection Act, 18 U.S.C.,

5 Sections 2721 through 2725,

6 d. information in the files of the Board of Medicolegal

7 Investigations obtained pursuant to Sections 940 and

8 941 of Title 63 of the Oklahoma Statutes that may be

9 hearsay, preliminary unsubstantiated investigation-

10 related findings, or confidential medical information,

11 e. any test forms, question banks and answer keys

12 developed for state licensure examinations, but

13 specifically excluding test preparation materials or

14 study guides,

15 f. last names, addresses, Social Security numbers or tax

16 identification numbers, and proof of identification

17 submitted to the Oklahoma Lottery Commission by

18 persons claiming a lottery prize,

19 g. unless public disclosure is required by other laws or

20 regulations, vehicle movement records of the Oklahoma

21 Transportation Authority obtained in connection with

22 the Authority's electronic toll collection system,

23 h. personal financial information, credit reports, or

24 other financial data obtained by or submitted to a

Req. No. 3559 Page 284
1 public body for the purpose of evaluating credit

2 worthiness, obtaining a license, permit, or for the

3 purpose of becoming qualified to contract with a

4 public body,

5 i. any digital audio/video recordings of the toll

6 collection and safeguarding activities of the Oklahoma

7 Transportation Authority,

8 j. any personal information provided by a guest at any

9 facility owned or operated by the Oklahoma Tourism and

10 Recreation Department to obtain any service at the

11 facility or by a purchaser of a product sold by or

12 through the Oklahoma Tourism and Recreation

13 Department,

14 k. a United States Department of Defense Form 214 (DD

15 Form 214) filed with a county clerk, including any DD

16 Form 214 filed before July 1, 2002,

17 l. except as provided for in Section 2-110 of Title 47 of

18 the Oklahoma Statutes:

19 (1) any record in connection with a Motor Vehicle

20 Report issued by the Department of Public Safety,

21 as prescribed in Section 6-117 of Title 47 of the

22 Oklahoma Statutes, or

23 (2) personal information within driver records, as

24 defined by the Driver's Privacy Protection Act,

Req. No. 3559 Page 285
1 18 U.S.C., Sections 2721 through 2725, which are

2 stored and maintained by the Department of Public

3 Safety,

4 m. any portion of any document or information provided to

5 an agency or entity of the state or a political

6 subdivision to obtain licensure under the laws of this

7 state or a political subdivision that contains an

8 applicant's personal address, personal phone number,

9 personal email address, any government-issued

10 identification numbers, or other contact information;

11 provided, however, lists of persons licensed, the

12 existence of a license of a person, or a business or

13 commercial address, or other business or commercial

14 information disclosable under state law submitted with

15 an application for licensure shall be public record,

16 unless the business or commercial address is the same

17 as the applicant's personal address, except when the

18 applicant permits in writing the disclosure of the

19 address,

20 n. an investigative file obtained during an investigation

21 conducted by the State Department of Health into

22 violations of the Long-Term Care Administrator

23 Licensing Act under Title 63 of the Oklahoma Statutes,

24 or

Req. No. 3559 Page 286
1 o. documents, evidence, materials, records, reports,

2 complaints, or other information in the possession or

3 control of the Attorney General or Insurance

4 Department pertaining to an evaluation, examination,

5 investigation, or review made pursuant to the

6 provisions of the Patient's Right to Pharmacy Choice

7 Act, the Pharmacy Audit Integrity Act, or Sections 357

8 through 360 of Title 59 of the Oklahoma Statutes;

9 2. All Social Security numbers included in a record may be

10 confidential regardless of the person's status as a public employee
10

11 or private individual and may be redacted or deleted prior to
11

12 release of the record by the public body;
12

13 3. Any reasonably segregable portion of a record containing

14 exempt material shall be provided after deletion of the exempt
14

15 portions; provided, however, the Department of Public Safety Service
15

16 Oklahoma shall not be required to assemble for the requesting person
16

17 specific information, in any format, from driving records relating
17

18 to any person whose name and date of birth or whose driver license
18

19 number is not furnished by the requesting person.
19

20 The Oklahoma State Bureau of Investigation shall not be required

21 to assemble for the requesting person any criminal history records
21

22 relating to persons whose names, dates of birth, and other
22

23 identifying information required by the Oklahoma State Bureau of
23

Req. No. 3559 Page 287
1 Investigation pursuant to administrative rule are not furnished by
1

2 the requesting person;
2

3 4. Any request for a record which contains individual records

4 of persons, and the cost of copying, reproducing or certifying each
4

5 individual record is otherwise prescribed by state law, the cost may
5

6 be assessed for each individual record, or portion thereof requested
6

7 as prescribed by state law. Otherwise, a public body may charge a
7

8 fee only for recovery of the reasonable, direct costs of record
8

9 copying, or mechanical reproduction. Notwithstanding any state or
9

10 local provision to the contrary, in no instance shall the record
10

11 copying fee exceed twenty-five cents ($0.25) per page for records
11

12 having the dimensions of eight and one-half (8 1/2) by fourteen (14)
12

13 inches or smaller, or a maximum of One Dollar ($1.00) per copied
13

14 page for a certified copy. However, if the request:
14

15 a. is solely for commercial purpose, or

16 b. would clearly cause excessive disruption of the

17 essential functions of the public body,

18 then the public body may charge a reasonable fee to recover the
18

19 direct cost of record search and copying; however, publication in a
19

20 newspaper or broadcast by news media for news purposes shall not
20

21 constitute a resale or use of a record for trade or commercial
21

22 purpose and charges for providing copies of electronic data to the
22

23 news media for a news purpose shall not exceed the direct cost of
23

24 making the copy. The fee charged by the Department of Public Safety
24

Req. No. 3559 Page 288
1 for a copy in a computerized format of a record of the Department
1

2 shall not exceed the direct cost of making the copy unless the fee
2

3 for the record is otherwise set by law. A public body may require
3

4 advance payment of the estimated fees authorized under this section
4

5 when the estimated cost exceeds Seventy-five Dollars ($75.00) or if
5

6 the requestor has outstanding fees from previous requests. Any
6

7 portion of an advance payment that exceeds the costs of responding
7

8 to the request shall be returned to the requestor.
8

9 Any public body establishing fees under the Oklahoma Open

10 Records Act shall post a written schedule of the fees at its
10

11 principal office and with the county clerk.
11

12 In no case shall a search fee be charged when the release of

13 records is in the public interest, including, but not limited to,
13

14 release to the news media, scholars, authors and taxpayers seeking
14

15 to determine whether those entrusted with the affairs of the
15

16 government are honestly, faithfully, and competently performing
16

17 their duties as public servants.
17

18 The fees shall not be used for the purpose of discouraging

19 requests for information or as obstacles to disclosure of requested
19

20 information;
20

21 5. The land description tract index of all recorded instruments

22 concerning real property required to be kept by the county clerk of
22

23 any county shall be available for inspection or copying in
23

24 accordance with the provisions of the Oklahoma Open Records Act;
24

Req. No. 3559 Page 289
1 provided, however, the index shall not be copied or mechanically
1

2 reproduced for the purpose of sale of the information;
2

3 6. A public body must provide prompt, reasonable access to its

4 records but may establish reasonable procedures which protect the
4

5 integrity and organization of its records and to prevent excessive
5

6 disruptions of its essential functions. A delay in providing access
6

7 to records shall be limited solely to the time required for
7

8 preparing the requested documents and the avoidance of excessive
8

9 disruptions of the public body's essential functions. In no event
9

10 may production of a current request for records be unreasonably
10

11 delayed until after completion of a prior records request that will
11

12 take substantially longer than the current request. Any public body
12

13 which makes the requested records available on the Internet shall
13

14 meet the obligation of providing prompt, reasonable access to its
14

15 records as required by this paragraph;
15

16 7. A public body may require a requestor to complete a records

17 request form. If a records request does not describe the requested
17

18 records with reasonable specificity, a public body may ask the
18

19 requestor to clarify the request. To have reasonable specificity, a
19

20 request shall:
20

21 a. specify a general time frame within which the

22 requested records would have been created or

23 transmitted,

Req. No. 3559 Page 290
1 b. seek identifiable records, rather than general

2 information without any qualifiers or other

3 specifications, and

4 c. include search terms that are sufficiently specific to

5 assist the public body in identifying the requested

6 records.

7 If a public body has engaged with the requestor to seek the

8 information needed to fulfill the request and to identify the
8

9 records sought by the requestor, including providing the requestor
9

10 with general topics or a specific list of records related to the
10

11 request, the request may be denied if it is still not reasonably
11

12 specific; and
12

13 8. A public body shall designate certain persons who are

14 authorized to release records of the public body for inspection,
14

15 copying, or mechanical reproduction. At least one person shall be
15

16 available at all times to release records during the regular
16

17 business hours of the public body.
17

18 SECTION 73. REPEALER 51 O.S. 2021, Section 24A.5, as

19 last amended by Section 14, Chapter 11, O.S.L. 2024 (51 O.S. Supp.
19

20 2025, Section 24A.5), is hereby repealed.
20

21 SECTION 74. AMENDATORY 51 O.S. 2021, Section 154, as

22 amended by Section 2, Chapter 314, O.S.L. 2025 (51 O.S. Supp. 2025,
22

23 Section 154), is amended to read as follows:
23

Req. No. 3559 Page 291
1 Section 154. A. The total liability of the state and its

2 political subdivisions on claims within the scope of The
2

3 Governmental Tort Claims Act, arising out of an accident or
3

4 occurrence happening after October 1, 1985, Section 151 et seq. of
4

5 this title, shall not exceed:
5

6 1. Seventy-five Thousand Dollars ($75,000.00) for any claim or

7 to any claimant who has more than one claim for loss of property
7

8 arising out of a single act, accident, or occurrence;
8

9 2. a. Two Hundred Twenty-five Thousand Dollars ($225,000.00)

10 to any claimant for any number of claims for

11 inconvenience, annoyance, or discomfort in nuisance

12 claims arising out of a single act, accident, or

13 occurrence in a county with a population of less than

14 one hundred fifty thousand (150,000) according to the

15 latest Federal Decennial Census, or

16 b. Two Hundred Seventy-five Thousand Dollars

17 ($275,000.00) to any claimant for any number of claims

18 for inconvenience, annoyance, or discomfort in

19 nuisance claims arising out of a single act, accident,

20 or occurrence in a county with a population of one

21 hundred fifty thousand (150,000) or more according to

22 the latest Federal Decennial Census;

23 3. a. In no event shall the total liability of the state and

24 its political subdivisions for a claim for nuisance

Req. No. 3559 Page 292
1 exceed Two Hundred Seventy-five Thousand Dollars

2 ($275,000.00) per occurrence.

3 b. In no event shall the total liability of the state and

4 its political subdivisions for a claim arising from

5 municipal sewer overflow exceed Two Hundred Seventy-

6 five Thousand Dollars ($275,000.00) per occurrence;

7 4. Except as otherwise provided in this paragraph, Two Hundred

8 Fifty Thousand Dollars ($250,000.00) to any claimant for a claim for
8

9 any other loss arising out of a single act, accident, or occurrence.
9

10 The limit of liability for the state or any city or county with a
10

11 population of one hundred fifty thousand (150,000) or more according
11

12 to the latest Federal Decennial Census, or a political subdivision
12

13 as defined in subparagraph s of paragraph 12 of Section 152 of this
13

14 title, shall not exceed Three Hundred Seventy-five Thousand Dollars
14

15 ($375,000.00). Except, however, the limits of liability for the
15

16 University Hospitals and state mental health hospitals operated by
16

17 the Department of Mental Health and Substance Abuse Services for
17

18 claims arising from medical negligence shall be Three Hundred
18

19 Thousand Dollars ($300,000.00). For claims arising from medical
19

20 negligence by any licensed physician, osteopathic physician or
20

21 Certified Nurse-Midwife rendering prenatal, delivery or infant care
21

22 services from September 1, 1991, through June 30, 1996, pursuant to
22

23 a contract authorized by subsection C of Section 1-106 of Title 63
23

24 of the Oklahoma Statutes and in conformity with the requirements of
24

Req. No. 3559 Page 293
1 Section 1-233 of Title 63 of the Oklahoma Statutes, the limits of
1

2 liability shall be Two Hundred Thousand Dollars ($200,000.00);
2

3 5. One Million Dollars ($1,000,000.00) for any number of claims

4 for indemnification pursuant to Section 162 of this title arising
4

5 out of a single occurrence or accident; or
5

6 6. Two Million Dollars ($2,000,000.00) in the aggregate for any

7 number of claims arising out of a single occurrence or accident.
7

8 B. 1. Beginning on May 28, 2003 July 1, 2025, claims shall be

9 allowed for wrongful criminal felony conviction resulting in
9

10 imprisonment if the claimant has received a full pardon on the basis
10

11 of a written finding by the Governor of actual innocence for the
11

12 crime for which the claimant was sentenced or has been granted
12

13 judicial relief absolving the claimant of guilt on the basis of
13

14 actual innocence of the crime for which the claimant was sentenced.
14

15 The Governor or the court shall specifically state, in the pardon or
15

16 order, the evidence or basis on which the finding of actual
16

17 innocence is based.
17

18 2. As used in paragraph 1 of this subsection, for a claimant to

19 recover based on "actual innocence", the individual must meet the
19

20 following criteria:
20

21 a. the individual was charged, by indictment or

22 information, with the commission of a public offense

23 classified as a felony,

Req. No. 3559 Page 294
1 b. the individual did not plead guilty to the offense

2 charged, or to any lesser included offense, but was

3 convicted of the offense,

4 c. the individual was sentenced to incarceration for a

5 term of imprisonment as a result of the conviction,

6 d. c. the individual was imprisoned solely on the basis of

7 the conviction for the offense, and

8 e. d. (1) in the case of a pardon, a determination was made

9 by either the Pardon and Parole Board or the

10 Governor that the offense for which the

11 individual was convicted, sentenced and

12 imprisoned, including any lesser offenses, was

13 not committed by the individual, or

14 (2) in the case of judicial relief, a court of

15 competent jurisdiction found by clear and

16 convincing evidence that the offense for which

17 the individual was convicted, sentenced and

18 imprisoned, including any lesser included

19 offenses, was not committed by the individual and

20 issued an order vacating, dismissing or reversing

21 the conviction and sentence and providing that no

22 further proceedings can be or will be held

23 against the individual on any facts and

Req. No. 3559 Page 295
1 circumstances alleged in the proceedings which

2 had resulted in the conviction.

3 3. A claimant shall not be entitled to compensation for any

4 part of a sentence in prison during which the claimant was also
4

5 serving a concurrent sentence for a crime not covered by this
5

6 subsection.
6

7 4. The total liability of the state and its political

8 subdivisions on any claim within the scope of The Governmental Tort
8

9 Claims Act arising out of wrongful criminal felony conviction
9

10 resulting in imprisonment shall not exceed One Hundred Seventy-five
10

11 Thousand Dollars ($175,000.00) be in an amount equal to Fifty
11

12 Thousand Dollars ($50,000.00) multiplied by the number of years
12

13 served in prison, expressed as a fraction to reflect partial years.
13

14 5. In addition to the award of damages provided for in

15 paragraph 4 of this subsection, a claimant who served his or her
15

16 time on death row shall be entitled to receive supplemental
16

17 compensation in the amount of Fifty Thousand Dollars ($50,000.00)
17

18 multiplied by the number of years the person served on death row,
18

19 expressed as a fraction to reflect partial years.
19

20 6. In addition to the award of damages provided for in

21 paragraph 4 of this subsection, a claimant who was released on
21

22 parole or released under conditions of probation shall be entitled
22

23 to receive supplemental compensation in the amount of Twenty-five
23

24 Thousand Dollars ($25,000.00) multiplied by the number of years the
24

Req. No. 3559 Page 296
1 person was on parole or under probation, expressed as a fraction to
1

2 reflect partial years.
2

3 7. A claimant entitled to compensation under the provisions of

4 this subsection shall be entitled to an award of damages under this
4

5 subsection of One Million Dollars ($1,000,000.00) or less which
5

6 shall be paid to the claimant in a lump sum. If an award of damages
6

7 under this subsection exceeds One Million Dollars ($1,000,000.00),
7

8 then One Million Dollars ($1,000,000.00) of the award shall be paid
8

9 to the claimant in a lump sum and the remainder shall be paid
9

10 annually in equal payments over a period of three (3) years.
10

11 8. A claimant entitled to compensation under the provisions of

12 this subsection shall be eligible to obtain group health benefit
12

13 plan coverage through the Department of Corrections as if the person
13

14 were an employee of the Department. The provisions of this
14

15 paragraph shall not entitle the spouse or other dependent or family
15

16 member to group health benefit plan coverage. Coverage may be
16

17 obtained under the provisions of this paragraph for a period of time
17

18 equal to the total period the claimant served for the crime for
18

19 which the claimant was wrongfully incarcerated, including any period
19

20 during which the claimant was released on parole or released under
20

21 conditions of probation. A claimant who elects to obtain coverage
21

22 under the provisions of this paragraph shall pay a monthly
22

23 contribution equal to the total amount of the monthly contribution
23

24 for that coverage that an employee of the Department would pay. The
24

Req. No. 3559 Page 297
1 Legislature shall appropriate funds to the Tort Claims Liability
1

2 Revolving Fund for costs associated with providing group health
2

3 benefit plan coverage by the Department to a claimant under the
3

4 provisions of this paragraph. The Department may seek reimbursement
4

5 from the Tort Claims Liability Revolving Fund for all expenditures
5

6 related to providing said coverage.
6

7 9. The provisions of this subsection shall apply to convictions

8 exonerations occurring on or before May 28, 2003, as well as
8

9 convictions occurring and after May 28, 2003. If a court of
9

10 competent jurisdiction finds that retroactive application of this
10

11 subsection is unconstitutional, the prospective application of this
11

12 subsection shall remain valid July 1, 2025.
12

13 C. No award for damages in an action or any claim against the

14 state or a political subdivision shall include punitive or exemplary
14

15 damages.
15

16 D. When the amount awarded to or settled upon multiple

17 claimants exceeds the limitations of this section, any party may
17

18 apply to the district court which has jurisdiction of the cause to
18

19 apportion to each claimant the claimant's proper share of the total
19

20 amount as limited herein. The share apportioned to each claimant
20

21 shall be in the proportion that the ratio of the award or settlement
21

22 made to each claimant bears to the aggregate awards and settlements
22

23 for all claims against the state or its political subdivisions
23

24 arising out of the occurrence. When the amount of the aggregate
24

Req. No. 3559 Page 298
1 losses presented by a single claimant exceeds the limits of
1

2 paragraph 1, 2, 3, or 4 of subsection A of this section, each person
2

3 suffering a loss shall be entitled to that person's proportionate
3

4 share.
4

5 E. The total liability of resident physicians and interns while

6 participating in a graduate medical education program of the
6

7 University of Oklahoma College of Medicine, its affiliated
7

8 institutions and the Oklahoma State University College of
8

9 Osteopathic Medicine shall not exceed One Hundred Fifty Thousand
9

10 Dollars ($150,000.00).
10

11 F. The total liability of a public trust hospital and physician

12 for the acts of a physician who provides medical services on the
12

13 premises of a public trust hospital, as provided by Section 152 of
13

14 this title, that is located in a county with a population of fewer
14

15 than seventy-five thousand (75,000) according to the latest Federal
15

16 Decennial Census, but who is not employed by such hospital, shall
16

17 not exceed One Million Dollars ($1,000,000.00). If the physician is
17

18 employed by another group or entity not under the sole or majority
18

19 control of the physician, the total limit of liability of the
19

20 physician and hospital shall be the higher coverage afforded by the
20

21 liability policy, self-insurance, or assets of that group or entity.
21

22 G. For claims within the scope of The Governmental Tort Claims

23 Act, the liability limits in this section for claims on or after the
23

24 effective date of this act shall be adjusted beginning January 1,
24

Req. No. 3559 Page 299
1 2031, and every five (5) years thereafter for inflation to reflect
1

2 the lesser of the percentage change in the Consumer Price Index
2

3 published by the Bureau of Labor Statistics of the United States
3

4 Department of Labor for such period or four percent (4%) in any
4

5 five-year period.
5

6 H. The state or a political subdivision may petition the court

7 that all parties and actions arising out of a single accident or
7

8 occurrence shall be joined as provided by law, and upon order of the
8

9 court the proceedings upon good cause shown shall be continued for a
9

10 reasonable time or until such joinder has been completed. The state
10

11 or political subdivision shall be allowed to interplead in any
11

12 action which may impose on it any duty or liability pursuant to The
12

13 Governmental Tort Claims Act.
13

14 I. The liability of the state or political subdivision under

15 The Governmental Tort Claims Act shall be several from that of any
15

16 other person or entity, and the state or political subdivision shall
16

17 only be liable for that percentage of total damages that corresponds
17

18 to its percentage of total negligence. Nothing in this section
18

19 shall be construed as increasing the liability limits imposed on the
19

20 state or political subdivision under The Governmental Tort Claims
20

21 Act.
21

22 SECTION 75. REPEALER 51 O.S. 2021, Section 154, as

23 amended by Section 2, Chapter 292, O.S.L. 2025 (51 O.S. Supp. 2025,
23

24 Section 154), is hereby repealed.
24

Req. No. 3559 Page 300
1 SECTION 76. AMENDATORY 57 O.S. 2021, Section 37, as

2 amended by Section 9, Chapter 187, O.S.L. 2025 (57 O.S. Supp. 2025,
2

3 Section 37), is amended to read as follows:
3

4 Section 37. A. If all correctional facilities reach maximum

5 capacity and the Department of Corrections is required to contract
5

6 for bed space to house state inmates:
6

7 1. The Pardon and Parole Board shall consider all nonviolent

8 offenders for parole who are within six (6) months of their
8

9 scheduled release from a penal facility; and
9

10 2. Prior to contracting with a private prison operator to

11 provide housing for state inmates, the Department shall send
11

12 notification to all county jails in this state that bed space is
12

13 required to house the overflow population of state inmates. Upon
13

14 receiving notification, the sheriff or jail trust administrator of a
14

15 county jail is authorized to enter into agreements with the
15

16 Department to provide housing for the inmates. Reimbursement for
16

17 the cost of housing the inmates shall be a negotiated per diem rate
17

18 for each inmate as contracted but shall in no event be less than the
18

19 per diem rate provided for in Section 38 of this title.
19

20 B. No inmate may be received by a penal facility from a county

21 jail without first scheduling a transfer with the Department.
21

22 Within five (5) business days after the court orders the judgment
22

23 and sentence, the court clerk shall transmit to the Department by
23

Req. No. 3559 Page 301
1 facsimile, electronic mail, or actual delivery a certified copy of
1

2 the judgment and sentence.
2

3 C. The receipt of the certified copy of the judgment and

4 sentence shall be certification that the sentencing court has
4

5 entered a judgment and sentence and all other necessary commitment
5

6 documents. The Department of Corrections is authorized to determine
6

7 the appropriate method of delivery from each county based on
7

8 electronic or other capabilities, and establish a method for issuing
8

9 receipts certifying that the Department has received the judgment
9

10 and sentence document. The Department shall establish a dedicated
10

11 electronic address location for receipt of all electronically
11

12 submitted judgment and sentence documents. The electronic address
12

13 location shall provide written receipt verification of each received
13

14 judgment and sentence document. Once an appropriate judgment and
14

15 sentence document is received by the Department of Corrections, the
15

16 Department shall contact the sheriff or jail trust administrator
16

17 when bed space is available to schedule the transfer and reception
17

18 of the inmate into the Department.
18

19 D. If the Department receives a judgment and sentence document

20 from a county that includes inaccurate information from the
20

21 sentencing court the Department shall notify the county within a
21

22 timely manner. If the Department receives a judgment and sentence
22

23 document from a county that is missing the classification level of
23

24 the felony crime, the Department shall default to the lowest
24

Req. No. 3559 Page 302
1 possible classification level for that offense. If the Department
1

2 receives a judgment and sentence document from a county that is
2

3 missing the required amount of the minimum time to be served, the
3

4 Department shall default to the lowest possible amount of the
4

5 minimum time to be served for that offense.
5

6 E. When a county jail has reached its capacity of inmates as

7 provided in the standards set forth in Section 192 of Title 74 of
7

8 the Oklahoma Statutes the Oklahoma Jail Standards Act, then the
8

9 county sheriff or jail trust administrator shall notify the Director
9

10 of the Oklahoma Department of Corrections, or the Director's
10

11 designated representative, by facsimile, electronic mail, or actual
11

12 delivery, that the county jail has reached or exceeded its capacity
12

13 to hold inmates. The notification shall include copies of any
13

14 judgment and sentences not previously delivered as required by
14

15 subsection B of this section. Then within Within seventy-two (72)
15

16 hours following such notification, the county sheriff or jail trust
16

17 administrator shall transport the designated excess inmate or
17

18 inmates to a penal facility designated by the Department. The
18

19 sheriff or jail trust administrator shall notify the Department of
19

20 the transport of the inmate prior to the reception of the inmate.
20

21 The Department shall schedule the reception date and receive the
21

22 inmate within seventy-two (72) hours of notification that the county
22

23 jail is at capacity, unless other arrangements can be made with the
23

24 sheriff or jail trust administrator.
24

Req. No. 3559 Page 303
1 F. The Department will shall be responsible for the cost of

2 housing the inmate in the county jail including costs of medical
2

3 care provided from the date the judgment and sentence was ordered by
3

4 the court until the date of transfer of the inmate from the county
4

5 jail. The Department shall implement a policy for determination of
5

6 scheduled dates on which an inmate or multiple inmates are to be
6

7 transferred from county jails. The policy shall allow for no less
7

8 than three alternative dates from which the sheriff or jail trust
8

9 administrator of a county jail may select and shall provide for
9

10 weather-related occurrences or other emergencies that may prevent or
10

11 delay transfers on the scheduled date. The policy shall be
11

12 available for review upon request by any sheriff or jail trust
12

13 administrator of a county jail. The cost of housing shall be the
13

14 per diem rate specified in Section 38 of this title. In the event
14

15 the inmate has one or more criminal charges pending in the same
15

16 Oklahoma jurisdiction and the county jail refuses to transfer the
16

17 inmate to the Department because of the pending charges, the
17

18 Department shall not be responsible for the housing costs of the
18

19 inmate while the inmate remains in the county jail with pending
19

20 charges. Once the inmate no longer has pending charges in the
20

21 jurisdiction, the Department shall be responsible for the housing
21

22 costs of the inmate for the period beginning on the date the
22

23 judgment and sentence or final order was ordered by the Court. In
23

24 the event the inmate has other criminal charges pending in another
24

Req. No. 3559 Page 304
1 Oklahoma jurisdiction, the Department shall be responsible for the
1

2 housing costs while the inmate remains in the county jail awaiting
2

3 transfer to another jurisdiction or until the date the inmate is
3

4 scheduled to be transferred to the Department, whichever is earlier.
4

5 Once the inmate is transferred to another jurisdiction, the
5

6 Department is not responsible for the housing cost of the inmate
6

7 until such time that another judgment and sentence is received by
7

8 the Department from another Oklahoma jurisdiction.
8

9 The sheriff or jail trust administrator may submit invoices for

10 the cost of housing the inmate on a monthly basis. Final payment
10

11 for housing an offender will be made only after the official
11

12 judgment and sentence is received by the Department of Corrections.
12

13 SECTION 77. REPEALER 57 O.S. 2021, Section 37, as

14 amended by Section 11, Chapter 11, O.S.L. 2025 (57 O.S. Supp. 2025,
14

15 Section 37), is hereby repealed.
15

16 SECTION 78. REPEALER 57 O.S. 2021, Section 138, as

17 amended by Section 38, Chapter 59, O.S.L. 2024 (57 O.S. Supp. 2025,
17

18 Section 138), is hereby repealed.
18

19 SECTION 79. REPEALER 57 O.S. 2021, Section 571, as last

20 amended by Section 40, Chapter 59, O.S.L. 2024 (57 O.S. Supp. 2025,
20

21 Section 571), is hereby repealed.
21

22 SECTION 80. AMENDATORY 59 O.S. 2021, Section 46.4, as

23 last amended by Section 2, Chapter 147, O.S.L. 2024 (59 O.S. Supp.
23

24 2025, Section 46.4), is amended to read as follows:
24

Req. No. 3559 Page 305
1 Section 46.4. There is hereby re-created, to continue until

2 July 1, 2026, in accordance with the provisions of the Oklahoma
2

3 Sunset Law, a board to be known as the "Board of Governors of the
3

4 Licensed Architects, Landscape Architects and Registered Commercial
4

5 Licensed Interior Designers of Oklahoma", hereinafter referred to as
5

6 the Board. The Board shall be composed of eleven (11) members
6

7 including six persons who are duly licensed to practice architecture
7

8 and are in good standing in this state, two persons who are duly
8

9 licensed to practice landscape architecture and are in good standing
9

10 in this state, two persons who are registered commercial duly
10

11 licensed interior designers and who are active and in good standing
11

12 and one lay member. Each member of the Board shall be a qualified
12

13 elector of this state, and the architect, landscape architect and
13

14 registered commercial licensed interior designer members shall have
14

15 had five (5) years' licensing or registration experience as the
15

16 professional position requires in this state. Re-creation of the
16

17 Board shall not alter existing staggered terms. Board members,
17

18 other than the lay member, shall be appointed for a period of five
18

19 (5) years. A member may be reappointed to succeed themselves. The
19

20 licensed architect, landscape architect or the registered commercial
20

21 licensed interior designer members may be appointed by the Governor
21

22 from a list of nominees submitted by respective professional
22

23 societies of this state. Membership in a professional society shall
23

24 not be a prerequisite to appointment to the Board. The lay member
24

Req. No. 3559 Page 306
1 of the Board shall be appointed by the Governor to a term
1

2 coterminous with that of the Governor. The lay member shall serve
2

3 at the pleasure of the Governor. All board members, including the
3

4 lay member, may continue to serve after the expiration of their term
4

5 until such time as a successor is appointed. Vacancies which may
5

6 occur in the membership of the Board shall be filled by appointment
6

7 by the Governor. Each person who has been appointed to fill a
7

8 vacancy shall serve for the remainder of the term for which the
8

9 member the person shall succeed was appointed and until a successor,
9

10 in turn, has been appointed and shall have qualified. Each member
10

11 of the Board, before entering upon the discharge of the duties of
11

12 the member, shall make and file with the Secretary of State a
12

13 written oath or affirmation for the faithful discharge of official
13

14 duties. Each member of the Board shall be reimbursed for travel
14

15 expenses pursuant to the State Travel Reimbursement Act.
15

16 SECTION 81. REPEALER 59 O.S. 2021, Section 46.4, as last

17 amended by Section 4, Chapter 138, O.S.L. 2024 (59 O.S. Supp. 2025,
17

18 Section 46.4), is hereby repealed.
18

19 SECTION 82. AMENDATORY 59 O.S. 2021, Section 46.7, as

20 amended by Section 5, Chapter 138, O.S.L. 2024 (59 O.S. Supp. 2025,
20

21 Section 46.7), is amended to read as follows:
21

22 Section 46.7. A. In addition to the other powers and duties

23 imposed by law, the Board of Governors of the Architects, Landscape
23

Req. No. 3559 Page 307
1 Architects and Licensed Interior Designers of Oklahoma shall have
1

2 the power and duty to:
2

3 1. Prescribe such rules and to make such orders, as it may deem

4 necessary or expedient in the performance of its duties;
4

5 2. Prepare, conduct, and grade examinations of persons who

6 shall apply for the issuance of licenses to them, and to promulgate
6

7 such rules with reference thereto as it may deem proper as a portion
7

8 used to determine competency for the issuance of licenses;
8

9 3. Work with nationally recognized licensing organizations to

10 prepare, conduct, and grade examinations, written or oral, of
10

11 persons who shall apply for the issuance of licenses;
11

12 4. Determine the satisfactory passing score on examinations and

13 issue licenses to persons who shall have passed examinations, or who
13

14 shall otherwise be entitled thereto;
14

15 5. Determine eligibility for licenses and certificates of

16 authority and issue them;
16

17 6. Promulgate rules to govern the issuing of reciprocal

18 licenses;
18

19 7. Upon good cause shown, as hereinafter provided, deny the

20 issuance of a license or certificate of authority or suspend,
20

21 revoke, refuse to renew or issue probation orders for licenses,
21

22 and/or require additional educational coursework and determine when
22

23 the objectives have been met;
23

Req. No. 3559 Page 308
1 8. Upon proper showing, reinstate or conditionally reinstate

2 licenses or certificates of authority previously issued;
2

3 9. Review, affirm, reverse, vacate or modify its order with

4 respect to any such denial, suspension, revocation, probation and/or
4

5 educational coursework requirements or refusal to renew;
5

6 10. Prescribe rules governing proceedings for the denial of

7 issuance of a license or certificate of authority, suspension,
7

8 revocation or refusal to renew, to issue probation orders and/or
8

9 require additional educational coursework and determine when the
9

10 objectives have been met for cause, and reinstate them;
10

11 11. Prescribe such penalties, as it may deem proper, to be

12 assessed against holders of licenses or certificates of authority
12

13 for the failure to pay the biennial fee hereinafter provided for;
13

14 12. Levy civil penalties plus the legal costs incurred by the

15 Board to prosecute the case against any person or entity who shall
15

16 violate any of the provisions of the State Architectural and
16

17 Licensed Interior Designers Act, or any rule promulgated pursuant
17

18 thereto;
18

19 13. Obtain an office, secure such facilities, and employ,

20 direct, discharge and define the duties and set the salaries of such
20

21 office personnel and set the salaries of such unclassified and
21

22 exempt office personnel as deemed necessary by the Board;
22

23 14. Initiate disciplinary action, prosecute and seek

24 injunctions against any person or entity who has violated any of the
24

Req. No. 3559 Page 309
1 provisions of the State Architectural and Licensed Interior
1

2 Designers Act or any rule of the Board promulgated pursuant to said
2

3 act and against the owner/developer of the building type not exempt;
3

4 15. Investigate alleged violations of the State Architectural

5 and Licensed Interior Designers Act or of the rules, orders or final
5

6 decisions of the Board;
6

7 16. Promulgate rules of conduct governing the practice of

8 architects, landscape architects and licensed interior designers;
8

9 17. Keep accurate and complete records of proceedings, and

10 certify the same as may be appropriate;
10

11 18. Whenever it deems it appropriate, confer with the Attorney

12 General or the Attorney General's assistants in connection with all
12

13 legal matters and questions. The Board may also retain an attorney
13

14 who is licensed to practice law in this state. The attorney shall
14

15 serve at the pleasure of the Board for such compensation as may be
15

16 provided by the Board. The attorney shall advise the Board and
16

17 perform legal services for the Board with respect to any matters
17

18 properly before the Board. In addition to the above, the Board may
18

19 employ hearing examiners to conduct administrative hearings under
19

20 the provisions of the Administrative Procedures Act;
20

21 19. Prescribe by rules, fees to be charged as required by this

22 act;
22

23 20. Adopt rules providing for a program of continuing education

24 in order to ensure that all architects, landscape architects, and
24

Req. No. 3559 Page 310
1 licensed interior designers remain informed of those technical and
1

2 professional subjects that the Board deems appropriate. The Board
2

3 may by rule describe the methods by which the requirements of such
3

4 program may be satisfied. Failure to meet such requirements of
4

5 continuing education shall result in nonrenewal of the license
5

6 issued to the architect, landscape architect, or licensed interior
6

7 designer;
7

8 21. Adopt rules regarding requirements for intern development

9 as a prerequisite for licensure;
9

10 22. Give scholarships, as determined by the Board, to an

11 individual or individuals advancing toward obtaining an accredited
11

12 National Architectural Accreditation Board, Landscape Architectural
12

13 Accreditation Board or Council for Interior Design Accreditation
13

14 degree in one of these three professions in an Oklahoma higher
14

15 education institution; and
15

16 23. Take such other action as may be reasonably necessary or

17 appropriate to effectuate the State Architectural and Licensed
17

18 Interior Designers Act. The Board may, at its discretion, contract
18

19 with other state agencies and nonprofit corporations for the
19

20 endowment, management, and administration of scholarships. The
20

21 requirements of such scholarships shall be determined by the Board.
21

22 However, nothing contained herein shall be construed as requiring
22

23 the Board to endow or award any scholarship.
23

Req. No. 3559 Page 311
1 B. The Board may use its funds to establish and conduct

2 instructional programs for persons who are currently licensed under
2

3 this act, and persons seeking licensure, as well as refresher
3

4 courses for persons interested in obtaining adequate instruction or
4

5 programs of study to qualify them for licensure to practice. The
5

6 Board may expend its funds for these purposes and may conduct,
6

7 sponsor, and arrange for instructional programs and may carry out
7

8 instructional programs through extension courses or other media.
8

9 The Board may enter into plans or agreements with community
9

10 colleges, public or private institutions of higher learning, the
10

11 State Board of Education, the Oklahoma Department of Career and
11

12 Technology Education, or nonprofit organizations for the purpose of
12

13 planning, scheduling or arranging courses, instruction, extension
13

14 courses, or assisting in obtaining courses of study or programs in
14

15 the fields of architecture, landscape architecture, or commercial
15

16 interior design. The Board shall encourage the educational
16

17 institutions in Oklahoma to offer courses necessary to complete the
17

18 educational requirements of Section 46.1 et seq. of this title. For
18

19 the purpose of carrying out these objectives, the Board may adopt
19

20 rules as may be necessary for educational programs, instruction,
20

21 extension services or for entering into plans or contracts with
21

22 persons or educational institutions and the Oklahoma Department of
22

23 Career and Technology Education.
23

Req. No. 3559 Page 312
1 SECTION 83. REPEALER 59 O.S. 2021, Section 46.7, as

2 amended by Section 3, Chapter 147, O.S.L. 2024 (59 O.S. Supp. 2025,
2

3 Section 46.7), is hereby repealed.
3

4 SECTION 84. AMENDATORY 59 O.S. 2021, Section 46.9, as

5 amended by Section 6, Chapter 138, O.S.L. 2024 (59 O.S. Supp. 2025,
5

6 Section 46.9), is amended to read as follows:
6

7 Section 46.9. A. The practice of architecture, landscape

8 architecture, or licensed interior design or offering to practice
8

9 these professions for others by persons licensed under this act
9

10 through a partnership, firm, association, corporation, limited
10

11 liability company or limited liability partnership as directors,
11

12 partners, officers, shareholders, employees, managers, members or
12

13 principals is permitted, subject to the provisions of the State
13

14 Architectural and Licensed Interior Designers Act, provided:
14

15 1. One or more of the directors, partners, officers,

16 shareholders, managers, members or principals of said partnership,
16

17 firm, association, corporation, limited liability company or limited
17

18 liability partnership is designated as being responsible for the
18

19 entity's activities and decisions legally responsible for the entity
19

20 of said partnership, firm, association, corporation, limited
20

21 liability company or limited liability partnership;
21

22 2. Such director, partner, officer, shareholder, manager,

23 member or principal is duly licensed under the State Architectural
23

24 and Licensed Interior Designers Act; and
24

Req. No. 3559 Page 313
1 3. All personnel of said partnership, firm, association,

2 corporation, limited liability company or limited liability
2

3 partnership who act on behalf of the entity for these professions in
3

4 the state are licensed under the State Architectural and Licensed
4

5 Interior Designers Act; and
5

6 4. Said partnership, firm, association, corporation, limited

7 liability company or limited liability partnership has been issued a
7

8 certificate of authority by the Board.
8

9 B. The Board shall have the power to issue, revoke, deny, or

10 refuse to renew a certificate of authority for a partnership, firm,
10

11 association, corporation, limited liability company or limited
11

12 liability partnership as provided for in the State Architectural and
12

13 Licensed Interior Designers Act.
13

14 C. A partnership, firm, association, corporation, limited

15 liability company or limited liability partnership desiring to
15

16 practice architecture, landscape architecture, or licensed interior
16

17 design shall file with the Board an application for a certificate of
17

18 authority, and pay all fees, for each office location performing
18

19 work on Oklahoma projects on a form approved by the Board which
19

20 shall include the names, addresses, state of licensure and license
20

21 number of all partners, directors, officers, members, managers or
21

22 principals of the partnership, firm, association, corporation,
22

23 limited liability company or limited liability partnership legally
23

24 responsible for the entity's practice. The form shall name an
24

Req. No. 3559 Page 314
1 individual having the practice of architecture in such person's
1

2 charge who is a director, partner, officer, member, manager or
2

3 principal. The person shall be duly licensed as an architect to
3

4 practice architecture or licensed as a landscape architect to
4

5 practice landscape architecture, or as a licensed interior designer
5

6 to practice licensed interior design in this state through said
6

7 partnership, firm, association, corporation, limited liability
7

8 company or limited liability partnership legally responsible for the
8

9 entity's practice or services offered and other information required
9

10 by the Board. In the event there shall be a change in any of these
10

11 persons during the term of the certification, such change shall be
11

12 filed with the Board within thirty (30) days after the effective
12

13 date of said change. If all of the requirements of this section and
13

14 the Board's current rules have been met, the Board shall issue a
14

15 certificate of authority to such partnership, firm, association,
15

16 corporation, limited liability company or limited liability
16

17 partnership.
17

18 D. Any other person licensed pursuant to the State

19 Architectural and Licensed Interior Designers Act, not practicing
19

20 these professions as a partnership, firm, association, corporation,
20

21 limited liability company or limited liability partnership, shall
21

22 practice as an individual.
22

23 E. No such partnership, firm, association, corporation, limited

24 liability company or limited liability partnership shall be relieved
24

Req. No. 3559 Page 315
1 of responsibility for the conduct or acts of its agents, employees,
1

2 partners, directors, officers, managers, members or principals by
2

3 reason of its compliance with the provisions of this section, or
3

4 shall any individual practicing these professions be relieved of
4

5 responsibility for professional services performed as an individual
5

6 by reason of such person's employment or relationship with such
6

7 partnership, firm, association, corporation, limited liability
7

8 company or limited liability partnership.
8

9 F. The Secretary of State shall not issue a certificate of

10 incorporation or register a foreign corporation or any other entity
10

11 which includes among the objectives for which it is established any
11

12 of the words "Architect", "Architectural", "Architecture",
12

13 "Landscape Architect", "Landscape Architecture", "Licensed Interior
13

14 Designer", or "Licensed Interior Design", or any modification or
14

15 derivation of these words, unless the Board has issued for said
15

16 applicant either a certificate of authority for an entity, or a
16

17 letter indicating eligibility for an exemption pursuant to the State
17

18 Architectural and Licensed Interior Designers Act. The entity
18

19 applying shall supply such certificate or letter from the Board with
19

20 its application for incorporation or registration.
20

21 G. The Secretary of State shall not register any trade name or

22 service mark which includes such words, as set forth in subsection F
22

23 of this section, or modifications or derivatives thereof in its firm
23

24 name or logotype except those entities or individuals holding
24

Req. No. 3559 Page 316
1 certificates of authority issued under the provisions of this
1

2 section or letters of eligibility issued by the Board.
2

3 H. Upon application for renewal and upon compliance with the

4 provisions of the State Architectural and Licensed Interior
4

5 Designers Act and the rules of the Board, a certificate of authority
5

6 shall be renewed as provided in this act.
6

7 SECTION 85. REPEALER 59 O.S. 2021, Section 46.9, as

8 amended by Section 4, Chapter 147, O.S.L. 2024 (59 O.S. Supp. 2025,
8

9 Section 46.9), is hereby repealed.
9

10 SECTION 86. AMENDATORY 59 O.S. 2021, Section 46.10, as

11 amended by Section 5, Chapter 147, O.S.L. 2024 (59 O.S. Supp. 2025,
11

12 Section 46.10), is amended to read as follows:
12

13 Section 46.10. A. Every licensed architect, landscape

14 architect, registered commercial licensed interior designer,
14

15 partnership, corporation, limited liability company, or limited
15

16 liability partnership shall pay to the Board a renewal fee as
16

17 prescribed by the rules of the Board prior to or on June 30 of odd
17

18 years. No license, registration, certificate of authority, or
18

19 certificate of title shall be issued or renewed for longer than two
19

20 (2) years. Upon receipt of the fee, the Board shall issue a
20

21 renewal, which shall authorize the person, partnership, corporation,
21

22 limited liability company, or limited liability partnership to
22

23 practice architecture, landscape architecture or use the title
23

Req. No. 3559 Page 317
1 registered commercial licensed interior designer design, as the case
1

2 may be, in this state.
2

3 B. The license of an architect or, landscape architect, or the

4 registration of a registered commercial licensed interior designer
4

5 which has been canceled by the Board for nonpayment of dues may be
5

6 renewed at any time within three (3) years from the date of the
6

7 cancellation, upon payment to the Board of the fees and any
7

8 penalties prescribed by the Board. If a license or registration,
8

9 initially granted by the State of Oklahoma that was the sole license
9

10 of a professional, remains canceled for a period exceeding three (3)
10

11 consecutive years, it may be reinstated subject to Board review.
11

12 Upon review, the Board may prescribe a test or an examination in
12

13 order to determine continued competency of the licensee or
13

14 registrant. An individual who is licensed in another jurisdiction
14

15 and whose Oklahoma license has been canceled for a period exceeding
15

16 three (3) consecutive years may reapply as prescribed in the rules
16

17 of the Board. A partnership, corporation, limited liability company
17

18 or limited liability partnership may reinstate a certificate of
18

19 authority or a certificate of title canceled for a period exceeding
19

20 three (3) years in the manner provided by the rules of the Board.
20

21 SECTION 87. REPEALER 59 O.S. 2021, Section 46.10, as

22 amended by Section 7, Chapter 138, O.S.L. 2024 (59 O.S. Supp. 2025,
22

23 Section 46.10), is hereby repealed.
23

Req. No. 3559 Page 318
1 SECTION 88. AMENDATORY 59 O.S. 2021, Section 46.21, as

2 amended by Section 15, Chapter 138, O.S.L. 2024 (59 O.S. Supp. 2025,
2

3 Section 46.21), is amended to read as follows:
3

4 Section 46.21. A. The State Architectural and Licensed

5 Interior Designers Act shall not apply to any persons, firms,
5

6 corporations, limited liability companies or limited liability
6

7 partnerships that do not hold a license or certification in any
7

8 jurisdiction for exempted Code Use Groups defined by the State
8

9 Architectural and Licensed Interior Designers Act, providing such
9

10 persons and/or entities shall not represent such person or entity to
10

11 be an architect, licensed interior designer, or other title of
11

12 profession or business using a form of the words, "Architect" or
12

13 "Licensed Interior Designer". This act shall not prevent such
13

14 persons and/or entities from advertising or selling their services.
14

15 Any architect, landscape architect or licensed interior designer

16 from any jurisdiction who contracts, provides or holds out to the
16

17 public that he or she is able to provide professional services in
17

18 Oklahoma is required to hold a license or certificate of authority
18

19 as needed from the Board, even on exempt Code Use Groups, and an
19

20 architect, landscape architect, or licensed interior designer is
20

21 required to sign, seal and date all construction documents and
21

22 technical submissions.
22

23 B. Nothing in this act shall be construed to prevent the

24 preparation of technical submissions or the administration of
24

Req. No. 3559 Page 319
1 construction contracts by employees of a person or entity lawfully
1

2 engaged in the practice of architecture when such employees are
2

3 acting under the responsible control of an architect.
3

4 C. The following shall govern design competitions in the state:

5 1. Nothing in this act shall prohibit a person or firm from

6 participating in an architectural design competition involving only
6

7 architectural programming, planning, schematic design or design
7

8 development information provided to a sponsor; and
8

9 2. The competition winner, prior to seeking the commission for

10 architectural services on the proposed project, shall apply for
10

11 licensing in this state within ten (10) days of notification of
11

12 winning the competition and complete the process within thirty (30)
12

13 days.
13

14 D. Nothing in this act shall prohibit an officer or employee of

15 the United States Armed Forces or an employee of the United States
15

16 government from practicing within the scope of their authority and
16

17 employment.
17

18 SECTION 89. REPEALER 59 O.S. 2021, Section 46.21, as

19 amended by Section 6, Chapter 147, O.S.L. 2024 (59 O.S. Supp. 2025,
19

20 Section 46.21), is hereby repealed.
20

21 SECTION 90. AMENDATORY 59 O.S. 2021, Section 46.21b, as

22 last amended by Section 1, Chapter 208, O.S.L. 2025 (59 O.S. Supp.
22

23 2025, Section 46.21b), is amended to read as follows:
23

Req. No. 3559 Page 320
1 Section 46.21b. A. An architect shall be required to plan,

2 design, and prepare plans and specifications for the following Code
2

3 Use Groups except where specifically exempt from the provisions of
3

4 the State Architectural and Licensed Interior Designers Act. All
4

5 Code Use Groups in this section are defined by the current
5

6 International Building Code.
6

7 B. The construction, addition, or alteration of a building of

8 any size or occupancy in the following Code Use Groups shall be
8

9 subject to the provisions of the State Architectural and Licensed
9

10 Interior Designers Act:
10

11 1. Code Use Group I - Institutional;

12 2. Code Use Group R-2 - Residential, limited to dormitories,

13 fraternities and sororities, and monasteries and convents;
13

14 3. Code Use Group A-1 - Assembly and theaters;

15 4. Code Use Group A-4 - Assembly, arenas and courts;

16 5. Code Use Group A-5 - Assembly, bleachers and grandstands;

17 6. Code Use Group H � High hazard; and

18 7. Buildings for which the designated Code Use Group changes

19 are not exempt from the State Architectural and Licensed Interior
19

20 Designers Act.
20

21 C. The following shall be exempt from the provisions of the

22 State Architectural and Licensed Interior Designers Act; provided
22

23 that, for the purposes of this subsection, a basement is not to be
23

Req. No. 3559 Page 321
1 counted as a story for the purpose of counting stories of a building
1

2 for height regulations:
2

3 1. The construction, addition, or alteration of a building no

4 more than two stories in height and with a code-defined occupancy of
4

5 no more than fifty (50) persons for the Code Use Groups A-2 and A-3
5

6 - Assembly and Code Use Group E - Education;
6

7 2. The construction, addition, or alteration of a building no

8 more than two stories in height and no more than sixty-four
8

9 transient lodging units per building for the Code Use Group R1 -
9

10 Residential, including, but not limited to, hotels and motels;
10

11 3. The construction, addition, or alteration of a building no

12 more than two stories in height and with a gross square footage not
12

13 exceeding one hundred thousand (100,000) in the Code Use Group B -
13

14 Business;
14

15 4. The construction, addition, or alteration of a building no

16 more than two stories in height and with a gross square footage not
16

17 exceeding two hundred thousand (200,000) in the Code Use Group M -
17

18 Mercantile; and
18

19 5. The construction, addition, or alteration of a building no

20 more than two stories in height in the following Code Use Groups or
20

21 buildings:
21

22 a. Code Use Group U - Utility,

23 b. Code Use Group F - Factory and Industrial,

24 c. Code Use Group S - Storage,

Req. No. 3559 Page 322
1 d. Code Use Group R2 - Residential, including apartments

2 containing no more than thirty-two dwelling units or

3 thirty-two guest units per building,

4 e. Code Use Groups R3 and R4 - Residential,

5 f. all buildings used by a municipality, county, state,

6 public trust, public agency, or the federal government

7 with a construction value under Three Hundred Thousand

8 Dollars ($300,000.00),

9 g. incidental buildings or appurtenances associated with

10 paragraphs 1 through 5 of this subsection, and

11 h. all uninhabitable, privately owned agricultural

12 buildings; and

13 6. Single or two-family residential dwellings, as defined by

14 the International Residential Code adopted by the Oklahoma Uniform
14

15 Building Code Commission.
15

16 D. The addition, renovation, or alteration of buildings where

17 the use was exempt as new construction shall remain exempt if the
17

18 Code Use Group does not change.
18

19 E. Upgrades, repairs, replacements, and changes made on

20 projects in Code Use Groups found in this title requiring an
20

21 architect are exempt from hiring an architect if the upgrades,
21

22 repairs, replacements, or changes do not affect the existing primary
22

23 structural, mechanical, or electrical systems, life safety systems,
23

Req. No. 3559 Page 323
1 fire codes, or exit passageways or egress as determined by the
1

2 applicable building official having jurisdiction.
2

3 F. Nonstructural interior construction projects in Code Use

4 Groups requiring an architect are exempt from hiring an architect if
4

5 the services are performed by a licensed interior designer.
5

6 SECTION 91. REPEALER 59 O.S. 2021, Section 46.21b, as

7 amended by Section 7, Chapter 147, O.S.L. 2024 (59 O.S. Supp. 2025,
7

8 Section 46.21b), is hereby repealed.
8

9 SECTION 92. AMENDATORY 59 O.S. 2021, Section 46.38, as

10 amended by Section 22, Chapter 138, O.S.L. 2024 (59 O.S. Supp. 2025,
10

11 Section 46.38), is amended to read as follows:
11

12 Section 46.38. A. Except as otherwise provided in the State

13 Architectural and Licensed Interior Designers Act, no license shall
13

14 be issued to any person to represent that the person is a "licensed
14

15 interior designer" nor shall any person be allowed to use the term
15

16 or practice licensed interior design unless the person pays to the
16

17 Board the required fees and/or penalties if applicable as
17

18 established by the rules of the Board and:
18

19 1. Holds an accredited professional degree in interior design

20 from an interior design program accredited by the Council for
20

21 Interior Design Accreditation or its successor, or from an interior
21

22 design program determined by the Board to be substantially
22

23 equivalent to an accredited program;
23

Req. No. 3559 Page 324
1 2. Provides proof of a minimum of two (2) years of full-time

2 diversified and appropriate experience within established standards
2

3 as the Board shall prescribe; and
3

4 3. Provides to the Board proof of passage of the examination

5 administered by the Council for Interior Design Qualification or its
5

6 successor or an equivalent examination as determined by the Board.
6

7 B. The Board may waive the requirements of the State

8 Architectural and Licensed Interior Designers Act for an individual
8

9 who holds a current valid registration or license from another
9

10 state, jurisdiction or foreign country where the requirements for
10

11 registration or licensure are substantially equivalent to those
11

12 required for licensure in this state and pays the required fees
12

13 and/or penalties, if applicable, to the Board.
13

14 C. This section does not apply to a person licensed to practice

15 architecture pursuant to the laws of this state.
15

16 D. Nothing in this act shall be construed to authorize the

17 Board to regulate or prohibit persons who are rendering interior
17

18 design services and are not licensed interior designers under the
18

19 provisions of this act or to adopt regulations that would exceed the
19

20 powers and responsibilities expressly authorized under this act.
20

21 E. Certificate of authority shall be subject to the following:

22 1. The use of the title "Licensed Interior Designer" by a

23 partnership, firm, association, corporation, limited liability
23

Req. No. 3559 Page 325
1 company or limited liability partnership is allowed to those
1

2 entities listed, provided:
2

3 a. one or more of the directors, partners, officers,

4 shareholders, members, managers, or principals is a

5 licensed interior designer and is in good standing

6 with the Board, and

7 b. the partnership, firm, association, corporation,

8 limited liability company or limited liability

9 partnership has been issued a certificate of authority

10 by the Board;

11 2. The Board shall have the power to issue, revoke, deny or

12 refuse to renew a certificate of authority for a partnership, firm,
12

13 association, corporation, limited liability company or limited
13

14 liability partnership as provided for in this act;
14

15 3. A partnership, firm, association, corporation, limited

16 liability company or limited liability partnership shall file with
16

17 the Board an application for a certificate of authority on a form
17

18 approved by the Board which shall include the names, addresses,
18

19 state of registration or licensure and registration or license
19

20 number of all directors, partners, officers, shareholders, members,
20

21 managers or principals of the partnership, firm, association,
21

22 corporation, limited liability company or limited liability
22

23 partnership. In the event there shall be a change in any of these
23

24 persons during the term of certification, the change shall be filed
24

Req. No. 3559 Page 326
1 with the Board within thirty (30) days after the effective date of
1

2 the change. If all the requirements of this section and the Board's
2

3 current rules have been met, the Board shall issue a certificate of
3

4 authority to the partnership, firm, association, corporation,
4

5 limited liability company or limited liability partnership;
5

6 4. The Secretary of State shall not issue a certificate of

7 incorporation or register a foreign corporation or any other entity
7

8 which includes among the objectives for which it is established the
8

9 words "Licensed Interior Designer" or any modification or derivation
9

10 of these words, unless the Board has issued for the applicant either
10

11 a certificate of title for an entity, or a letter indicating the
11

12 eligibility for an exemption pursuant to the requirements of this
12

13 act. The firm applying shall supply the certificate of authority or
13

14 letter from the Board with its application for incorporation or
14

15 registration;
15

16 5. The Secretary of State shall not register any trade name or

17 service mark which includes the words as set forth in paragraph 4 of
17

18 this subsection in its firm name or logotype except those entities
18

19 or individuals holding certificates of authority issued under the
19

20 provisions of this section or letters of eligibility issued by the
20

21 Board; and
21

22 6. Upon application for renewal and upon compliance with the

23 provisions of this act and the rules of the Board, a certificate of
23

24 authority shall be renewed as provided by this act.
24

Req. No. 3559 Page 327
1 F. No license for licensed interior designers or a certificate

2 of authority for a partnership, firm, association, corporation,
2

3 limited liability company or limited liability partnership, shall be
3

4 issued or renewed for longer than two (2) years. A license or
4

5 certificate of authority may be renewed upon application, compliance
5

6 with the rules of the Board and payment of fees prior to or on June
6

7 30 of alternate years. A new license to replace a lost, destroyed
7

8 or mutilated license shall be issued by the Board upon payment of a
8

9 fee established in accordance with the rules of the Board.
9

10 SECTION 93. REPEALER 59 O.S. 2021, Section 46.38, as

11 amended by Section 8, Chapter 147, O.S.L. 2024 (59 O.S. Supp. 2025,
11

12 Section 46.38), is hereby repealed.
12

13 SECTION 94. REPEALER 59 O.S. 2021, Section 328.49, as

14 amended by Section 530, Chapter 486, O.S.L. 2025 (59 O.S. Supp.
14

15 2025, Section 328.49), is hereby repealed.
15

16 SECTION 95. AMENDATORY 59 O.S. 2021, Section 353.1, as

17 last amended by Section 5, Chapter 340, O.S.L. 2025 (59 O.S. Supp.
17

18 2025, Section 353.1), is amended to read as follows:
18

19 Section 353.1. For the purposes of the Oklahoma Pharmacy Act:

20 1. "Accredited program" means those seminars, classes,

21 meetings, work projects, and other educational courses approved by
21

22 the State Board of Pharmacy for purposes of continuing professional
22

23 education;
23

24 2. "Act" means the Oklahoma Pharmacy Act;

Req. No. 3559 Page 328
1 3. "Administer" means the direct application of a drug, whether

2 by injection, inhalation, ingestion, or any other means, to the body
2

3 of a patient;
3

4 4. "Assistant pharmacist" means any person presently licensed

5 as an assistant pharmacist in this state by the Board pursuant to
5

6 Section 353.10 of this title and for the purposes of the Oklahoma
6

7 Pharmacy Act shall be considered the same as a pharmacist, except
7

8 where otherwise specified;
8

9 5. "Board" or "State Board" means the State Board of Pharmacy;

10 6. "Certify" or "certification of a prescription" means the

11 review of a filled prescription by a licensed pharmacist or a
11

12 licensed practitioner with dispensing authority to confirm that the
12

13 medication, labeling, and packaging of the filled prescription are
13

14 accurate and meet all requirements prescribed by state and federal
14

15 law. For the purposes of this paragraph, "licensed practitioner"
15

16 shall not include optometrists with dispensing authority;
16

17 7. "Chemical" means any medicinal substance, whether simple or

18 compound or obtained through the process of the science and art of
18

19 chemistry, whether of organic or inorganic origin;
19

20 8. "Compounding" means the combining, admixing, mixing,

21 diluting, pooling, reconstituting, or otherwise altering of a drug
21

22 or bulk drug substance to create a drug. Compounding includes the
22

23 preparation of drugs or devices in anticipation of prescription drug
23

24 orders based on routine, regularly observed prescribing patterns;
24

Req. No. 3559 Page 329
1 9. "Continuing professional education" means professional,

2 pharmaceutical education in the general areas of the socioeconomic
2

3 and legal aspects of health care; the properties and actions of
3

4 drugs and dosage forms; and the etiology, characteristics, and
4

5 therapeutics of the diseased state;
5

6 10. "Dangerous drug", "legend drug", "prescription drug", or

7 "Rx Only" means a drug:
7

8 a. for human use subject to 21 U.S.C., Section 353(b)(1),

9 or

10 b. is labeled "Prescription Only", or labeled with the

11 following statement: "Caution: Federal law restricts

12 this drug to use by or on the order of a licensed

13 veterinarian.";

14 11. "Director" means the Executive Director of the State Board

15 of Pharmacy unless context clearly indicates otherwise;
15

16 12. "Dispense" or "dispensing" means the interpretation,

17 evaluation, and implementation of a prescription drug order
17

18 including the preparation and delivery of a drug or device to a
18

19 patient or a patient's agent in a suitable container appropriately
19

20 labeled for subsequent administration to, or use by, a patient.
20

21 Dispense includes sell, distribute, leave with, give away, dispose
21

22 of, deliver, or supply;
22

23 13. "Dispenser" means a retail pharmacy, hospital pharmacy, a

24 group of chain pharmacies under common ownership and control that do
24

Req. No. 3559 Page 330
1 not act as a wholesale distributor, or any other person authorized
1

2 by law to dispense or administer prescription drugs, and the
2

3 affiliated warehouses or distributions of such entities under common
3

4 ownership and control that do not act as a wholesale distributor.
4

5 For the purposes of this paragraph, dispenser does not mean a person
5

6 who dispenses only products to be used in animals in accordance with
6

7 21 U.S.C., Section 360b(a)(5);
7

8 14. "Distribute" or "distribution" means the sale, purchase,

9 trade, delivery, handling, storage, or receipt of a product, and
9

10 does not include the dispensing of a product pursuant to a
10

11 prescription executed in accordance with 21 U.S.C., Section
11

12 353(b)(1) or the dispensing of a product approved under 21 U.S.C.,
12

13 Section 360b(b); provided, taking actual physical possession of a
13

14 product or title shall not be required;
14

15 15. "Doctor of Pharmacy" means a person licensed by the Board

16 to engage in the practice of pharmacy. The terms "pharmacist",
16

17 "D.Ph.", and "Doctor of Pharmacy" shall be interchangeable and shall
17

18 have the same meaning wherever they appear in the Oklahoma Statutes
18

19 and the rules promulgated by the Board;
19

20 16. "Drug outlet" means all manufacturers, repackagers,

21 outsourcing facilities, wholesale distributors, third-party
21

22 logistics providers, pharmacies, and all other facilities which are
22

23 engaged in dispensing, delivery, distribution, or storage of
23

24 dangerous drugs;
24

Req. No. 3559 Page 331
1 17. "Drugs" means all medicinal substances and preparations

2 recognized by the United States Pharmacopeia and National Formulary,
2

3 or any revision thereof, and all substances and preparations
3

4 intended for external and/or internal use in the cure, diagnosis,
4

5 mitigation, treatment, or prevention of disease in humans or animals
5

6 and all substances and preparations, other than food, intended to
6

7 affect the structure or any function of the body of a human or
7

8 animals;
8

9 18. "Drug sample" means a unit of a prescription drug packaged

10 under the authority and responsibility of the manufacturer that is
10

11 not intended to be sold and is intended to promote the sale of the
11

12 drug;
12

13 19. "Durable medical equipment" has the same meaning as

14 provided by Section 375.2 of this title;
14

15 20. "Filled prescription" means a packaged prescription

16 medication to which a label has been affixed which contains such
16

17 information as is required by the Oklahoma Pharmacy Act;
17

18 21. "Hospital" means any institution licensed as a hospital by

19 this state for the care and treatment of patients, or a pharmacy
19

20 operated by the Oklahoma Department of Veterans Affairs;
20

21 22. "Licensed practitioner" means:

22 a. an allopathic physician,

23 b. an osteopathic physician,

24 c. a podiatric physician,

Req. No. 3559 Page 332
1 d. a dentist,

2 e. a veterinarian,

3 f. an optometrist, or

4 g. an Advanced Practice Registered Nurse, or

5 h. a physician assistant,

6 licensed to practice and authorized to prescribe dangerous drugs
6

7 within the scope of practice of such practitioner;
7

8 23. "Manufacturer" or "virtual manufacturer" means with respect

9 to a product:
9

10 a. a person that holds an application approved under 21

11 U.S.C., Section 355 or a license issued under 42

12 U.S.C., Section 262 for such product, or if such

13 product is not the subject of an approved application

14 or license, the person who manufactured the product,

15 b. a co-licensed partner of the person described in

16 subparagraph a of this paragraph that obtains the

17 product directly from a person described in this

18 subparagraph or subparagraph a of this paragraph,

19 c. an affiliate of a person described in subparagraph a

20 or b of this paragraph who receives the product

21 directly from a person described in this subparagraph

22 or in subparagraph a or b of this paragraph, or

23 d. a person who contracts with another to manufacture a

24 product;

Req. No. 3559 Page 333
1 24. "Manufacturing" means the production, preparation,

2 propagation, compounding, conversion, or processing of a device or a
2

3 drug, either directly or indirectly by extraction from substances of
3

4 natural origin or independently by means of chemical or biological
4

5 synthesis and includes any packaging or repackaging of the
5

6 substances or labeling or relabeling of its container, and the
6

7 promotion and marketing of such drugs or devices. The term
7

8 manufacturing also includes the preparation and promotion of
8

9 commercially available products from bulk compounds for resale by
9

10 licensed pharmacies, licensed practitioners, or other persons;
10

11 25. "Medical gas" means those gases including those in liquid

12 state upon which the manufacturer or distributor has placed one of
12

13 several cautions, such as "Rx Only", in compliance with federal law;
13

14 26. "Medical gas order" means an order for medical gas issued

15 by a licensed prescriber;
15

16 27. "Medical gas distributor" means a person licensed to

17 distribute, transfer, wholesale, deliver, or sell medical gases on
17

18 drug orders to suppliers or other entities licensed to use,
18

19 administer, or distribute medical gas and may also include a patient
19

20 or ultimate user;
20

21 28. "Medical gas supplier" means a person who dispenses medical

22 gases on drug orders only to a patient or ultimate user;
22

Req. No. 3559 Page 334
1 29. "Medicine" means any drug or combination of drugs which has

2 the property of curing, preventing, treating, diagnosing, or
2

3 mitigating diseases, or which is used for that purpose;
3

4 30. "Nonprescription drugs" means medicines or drugs which are

5 sold without a prescription and which are prepackaged for use by the
5

6 consumer and labeled in accordance with the requirements of the
6

7 statutes and regulations of this state and the federal government.
7

8 Such items shall also include medical and dental supplies and
8

9 bottled or nonbulk chemicals which are sold or offered for sale to
9

10 the general public if such articles or preparations meet the
10

11 requirements of the Federal Food, Drug, and Cosmetic Act, 21
11

12 U.S.C.A., Section 321 et seq.;
12

13 31. "Outsourcing facility" including "virtual outsourcing

14 facility" means a facility at one geographic location or address
14

15 that:
15

16 a. is engaged in the compounding of sterile drugs,

17 b. has elected to register as an outsourcing facility,

18 and

19 c. complies with all requirements of 21 U.S.C., Section

20 353b;

21 32. "Package" means the smallest individual saleable unit of

22 product for distribution by a manufacturer or repackager that is
22

23 intended by the manufacturer for ultimate sale to the dispenser of
23

24 such product. For the purposes of this paragraph, "individual
24

Req. No. 3559 Page 335
1 saleable unit" means the smallest container of a product introduced
1

2 into commerce by the manufacturer or repackager that is intended by
2

3 the manufacturer or repackager for individual sale to a dispenser;
3

4 33. "Person" means an individual, partnership, limited

5 liability company, corporation, or association, unless the context
5

6 otherwise requires;
6

7 34. "Pharmacist-in-charge" or "PIC" means the pharmacist

8 licensed in this state responsible for the management control of a
8

9 pharmacy and all other aspects of the practice of pharmacy in a
9

10 licensed pharmacy as provided by Section 353.18 of this title;
10

11 35. "Pharmacy" means a place regularly licensed by the State

12 Board of Pharmacy in which prescriptions, drugs, medicines,
12

13 chemicals, and poisons are compounded or dispensed or such place
13

14 where pharmacists practice the profession of pharmacy, or a pharmacy
14

15 operated by the Oklahoma Department of Veterans Affairs;
15

16 36. "Pharmacy technician", "technician", "Rx tech", or "tech"

17 means a person issued a technician permit by the State Board of
17

18 Pharmacy to assist the pharmacist and perform nonjudgmental,
18

19 technical, manipulative, non-discretionary functions in the
19

20 prescription department under the immediate and direct supervision
20

21 of a pharmacist;
21

22 37. "Poison" means any substance which when introduced into the

23 body, either directly or by absorption, produces violent, morbid, or
23

Req. No. 3559 Page 336
1 fatal changes, or which destroys living tissue with which such
1

2 substance comes into contact;
2

3 38. "Practice of pharmacy" means:

4 a. the interpretation and evaluation of prescription

5 orders,

6 b. the compounding, dispensing, administering, and

7 labeling of drugs and devices, except labeling by a

8 manufacturer, repackager, or distributor of

9 nonprescription drugs and commercially packaged legend

10 drugs and devices,

11 c. the participation in drug selection and drug

12 utilization reviews,

13 d. the proper and safe storage of drugs and devices and

14 the maintenance of proper records thereof,

15 e. the responsibility for advising by counseling and

16 providing information, where professionally necessary

17 or where regulated, of therapeutic values, content,

18 hazards, and use of drugs and devices,

19 f. the offering or performing of those acts, services,

20 operations, or transactions necessary in the conduct,

21 operation, management, and control of a pharmacy, or

22 g. the provision of those acts or services that are

23 necessary to provide pharmaceutical care;

Req. No. 3559 Page 337
1 39. "Preparation" means an article which may or may not contain

2 sterile products compounded in a licensed pharmacy pursuant to the
2

3 order of a licensed prescriber;
3

4 40. "Prescriber" means a person licensed in this state who is

5 authorized to prescribe dangerous drugs within the scope of practice
5

6 of the person's profession;
6

7 41. "Prescription" means and includes any order for drug or

8 medical supplies written or signed, or transmitted by word of mouth,
8

9 telephone, or other means of communication:
9

10 a. by a licensed prescriber,

11 b. by a physician assistant pursuant to a practice

12 agreement,

13 c. (1) under the supervision of a supervising physician,

14 by a Certified Nurse Practitioner, Clinical Nurse

15 Specialist, or Certified Nurse-Midwife licensed

16 in this state who has not obtained independent

17 prescriptive authority under Section 1 of this

18 act, or

19 (2) by a Certified Nurse Practitioner, Clinical Nurse

20 Specialist, or Certified Nurse-Midwife licensed

21 in this state who has obtained independent

22 prescriptive authority under Section 1 of this

23 act, or

Req. No. 3559 Page 338
1 d. by an Oklahoma licensed wholesaler or distributor as

2 authorized in Section 353.29.1 of this title;

3 42. "Product" means a prescription drug in a finished dosage

4 form for administration to a patient without substantial further
4

5 manufacturing, such as capsules, tablets, and lyophilized products
5

6 before reconstitution. Product does not include blood components
6

7 intended for transfusion, radioactive drugs or biologics and medical
7

8 gas;
8

9 43. "Repackager", including "virtual repackager", means a

10 person who owns or operates an establishment that repacks and
10

11 relabels a product or package for further sale or distribution
11

12 without further transaction;
12

13 44. "Sterile drug" means a drug that is intended for parenteral

14 administration, an ophthalmic or oral inhalation drug in aqueous
14

15 format, or a drug that is required to be sterile under state and
15

16 federal law;
16

17 45. "Supervising physician" means an individual holding a

18 current license to practice as a physician from the State Board of
18

19 Medical Licensure and Supervision, pursuant to the provisions of the
19

20 Oklahoma Allopathic Medical and Surgical Licensure and Supervision
20

21 Act, or the State Board of Osteopathic Examiners, pursuant to the
21

22 provisions of the Oklahoma Osteopathic Medicine Act, who supervises
22

23 a Certified Nurse Practitioner, Clinical Nurse Specialist, or
23

24 Certified Nurse-Midwife as defined in Section 567.3a of this title
24

Req. No. 3559 Page 339
1 who has not obtained independent prescriptive authority under
1

2 Section 1 of this act, and who is not in training as an intern,
2

3 resident, or fellow. The supervising physician shall remain in
3

4 compliance with the rules promulgated by the State Board of Medical
4

5 Licensure and Supervision or the State Board of Osteopathic
5

6 Examiners;
6

7 46. "Supportive personnel" means technicians and auxiliary

8 supportive persons who are regularly paid employees of a pharmacy
8

9 who work and perform tasks in the pharmacy as authorized by Section
9

10 353.18A of this title;
10

11 47. "Third-party logistics provider" including "virtual third-

12 party logistics provider" means an entity that provides or
12

13 coordinates warehousing, or other logistics services of a product in
13

14 interstate commerce on behalf of a manufacturer, wholesale
14

15 distributor, or dispenser of a product but does not take ownership
15

16 of the product, nor have responsibility to direct the sale or
16

17 disposition of the product. For the purposes of this paragraph,
17

18 third-party logistics provider does not include shippers and the
18

19 United States Postal Service;
19

20 48. "Wholesale distributor" including "virtual wholesale

21 distributor" means a person other than a manufacturer, a
21

22 manufacturer's co-licensed partner, a third-party logistics
22

23 provider, or repackager engaged in wholesale distribution as defined
23

Req. No. 3559 Page 340
1 by 21 U.S.C., Section 353(e)(4) as amended by the Drug Supply Chain
1

2 Security Act;
2

3 49. "County jail" means a facility operated by a county for the

4 physical detention and correction of persons charged with, or
4

5 convicted of, criminal offenses or ordinance violations or persons
5

6 found guilty of civil or criminal contempt;
6

7 50. "State correctional facility" means a facility or

8 institution that houses a prisoner population under the jurisdiction
8

9 of the Department of Corrections;
9

10 51. "Unit dose package" means a package that contains a single

11 dose drug with the name, strength, control number, and expiration
11

12 date of that drug on the label; and
12

13 52. "Unit of issue package" means a package that provides

14 multiple doses of the same drug, but each drug is individually
14

15 separated and includes the name, lot number, and expiration date.
15

16 SECTION 96. REPEALER 59 O.S. 2021, Section 353.1, as

17 last amended by Section 1, Chapter 343, O.S.L. 2025 (59 O.S. Supp.
17

18 2025, Section 353.1), is hereby repealed.
18

19 SECTION 97. AMENDATORY 59 O.S. 2021, Section 356.2, as

20 last amended by Section 2, Chapter 300, O.S.L. 2025 (59 O.S. Supp.
20

21 2025, Section 356.2), is amended to read as follows:
21

22 Section 356.2. A. The entity conducting an audit of a pharmacy

23 shall:
23

Req. No. 3559 Page 341
1 1. Identify and specifically describe the audit and appeal

2 procedures in the pharmacy contract. Prescription claim
2

3 documentation and recordkeeping requirements shall not exceed the
3

4 requirements set forth by the Oklahoma Pharmacy Act or other
4

5 applicable state or federal laws or regulations;
5

6 2. Give the pharmacy written notice by certified letter to the

7 pharmacy and the pharmacy's contracting agent, including
7

8 identification of specific prescription numbers, fill dates, drug
8

9 names, and National Drug Code (NDC) numbers to be audited, at least
9

10 fourteen (14) calendar days prior to conducting the audit,
10

11 including, but not limited to, an on-site audit, a desk audit, or a
11

12 wholesale purchase audit, request for documentation related to the
12

13 dispensing of a prescription drug, or any reimbursed activity by a
13

14 pharmacy provider; provided, however, that wholesale purchase audits
14

15 shall require a minimum of thirty (30) calendar days' written
15

16 notice. For an on-site audit, the audit date shall be the date the
16

17 on-site audit occurs. For all other audit types, the audit date
17

18 shall be the date the pharmacy provides the documentation requested
18

19 in the audit notice. The pharmacy shall have the opportunity to
19

20 reschedule the audit no more than seven (7) calendar days from the
20

21 date designated on the original audit notification;
21

22 3. Not interfere with the delivery of pharmacist services to a

23 patient and shall utilize every reasonable effort to minimize
23

Req. No. 3559 Page 342
1 inconvenience and disruption to pharmacy operations during the audit
1

2 process;
2

3 4. Conduct any audit involving clinical or professional

4 judgment by means of or in consultation with a licensed pharmacist;
4

5 5. Not consider as fraud any clerical or recordkeeping error,

6 such as a typographical error, scrivener's error or computer error,
6

7 including, but not limited to, a miscalculated day supply,
7

8 incorrectly billed prescription written date or prescription origin
8

9 code, and such errors shall not be subject to recoupment. The
9

10 pharmacy shall have the right to submit amended claims
10

11 electronically to correct clerical or recordkeeping errors in lieu
11

12 of recoupment. To the extent that an audit results in the
12

13 identification of any clerical or recordkeeping errors such as
13

14 typographical errors, scrivener's errors or computer errors in a
14

15 required document or record, the pharmacy shall not be subject to
15

16 recoupment of funds by the pharmacy benefits manager unless the
16

17 pharmacy benefits manager can provide proof of intent to commit
17

18 fraud. A person shall not be subject to criminal penalties for
18

19 errors provided for in this paragraph without proof of intent to
19

20 commit fraud;
20

21 6. Permit a pharmacy to use the records of a hospital,

22 physician, or other authorized practitioner of the healing arts for
22

23 drugs or medicinal supplies written or transmitted by any means of
23

Req. No. 3559 Page 343
1 communication for purposes of validating the pharmacy record with
1

2 respect to orders or refills of a legend or narcotic drug;
2

3 7. Permit a pharmacy to use drug purchase records without

4 limitation of date or source to validate the dispensing of a
4

5 prescription drug or a controlled dangerous substance, provided the
5

6 drug purchase was done in accordance with the state or federal law;
6

7 8. Not include the dispensing fee amount or the actual invoice

8 cost of the prescription dispensed in a finding of an audit
8

9 recoupment unless a prescription was not actually dispensed or a
9

10 physician denied authorization of a dispensing order;
10

11 8. 9. Audit each pharmacy under identical standards, regularity

12 and parameters as other similarly situated pharmacies and all
12

13 pharmacies owned or managed by the pharmacy benefits manager
13

14 conducting or having conducted the audit;
14

15 9. 10. Not exceed one (1) year from the date the claim was

16 submitted to or adjudicated by a managed care company, nonprofit
16

17 hospital or medical service organization, insurance company, third-
17

18 party payor, pharmacy benefits manager, a health program
18

19 administered by a department of this state, or any entity that
19

20 represents the companies, groups, or departments for the period
20

21 covered by an audit;
21

22 10. 11. Not schedule or initiate an audit during the first

23 seven (7) calendar days of any month unless otherwise consented to
23

24 by the pharmacy;
24

Req. No. 3559 Page 344
1 11. 12. Disclose to any plan sponsor whose claims were included

2 in the audit any money recouped in the audit;
2

3 12. 13. Not require pharmacists to break open packaging labeled

4 "for single-patient-use only". Packaging labeled "for single-
4

5 patient-use only" shall be deemed to be the smallest package size
5

6 available;
6

7 13. 14. Upon recoupment of funds from a pharmacy, refund first

8 to the patient the portion of the recovered funds that were
8

9 originally paid by the patient, provided such funds were part of the
9

10 recoupment; and
10

11 14. 15. Not assess a fine, penalty, or any other financial

12 requirement on the pharmacy or pharmacist for any prescription
12

13 audited unless there is a valid recoupment under the Pharmacy Audit
13

14 Integrity Act.
14

15 B. 1. Any entity that conducts wholesale purchase review

16 during an audit of a pharmacist or pharmacy shall not require the
16

17 pharmacist or pharmacy to provide a full dispensing report.
17

18 Wholesaler invoice reviews shall be limited to verification of
18

19 purchase inventory specific to the pharmacy claims paid by the
19

20 health benefits plan or pharmacy benefits manager conducting the
20

21 audit without limitation to date or source of purchase.
21

22 2. Any entity conducting an audit shall not identify or label a

23 prescription claim as an audit discrepancy when:
23

Req. No. 3559 Page 345
1 a. the National Drug Code for the dispensed drug is in a

2 quantity that is a subunit or multiple of the drug

3 purchased by the pharmacist or pharmacy as supported

4 by a wholesale invoice,

5 b. the pharmacist or pharmacy dispensed the correct

6 quantity of the drug according to the prescription,

7 and

8 c. the drug dispensed by the pharmacist or pharmacy

9 shares all but the last two digits of the National

10 Drug Code of the drug reflected on the supplier

11 invoice.

12 3. An entity conducting an audit shall accept as evidence,

13 without limitation to date or source of purchase, subject to
13

14 validation, to support the validity of a pharmacy claim related to a
14

15 dispensed drug:
15

16 a. redacted copies of supplier invoices in the

17 pharmacist's or pharmacy's possession, or

18 b. invoices and any supporting documents from any

19 supplier as authorized by federal or state law to

20 transfer ownership of the drug acquired by the

21 pharmacist or pharmacy.

22 4. An entity conducting an audit shall provide, no later than

23 five (5) calendar days after the date of a request by the pharmacist
23

24 or pharmacy, all supporting documents the pharmacist's or pharmacy's
24

Req. No. 3559 Page 346
1 purchase suppliers provided to the health benefits plan issuer or
1

2 pharmacy benefits manager.
2

3 C. A pharmacy shall be allowed to provide the pharmacy's

4 computerized patterned medical records or the records of a hospital,
4

5 physician, or other authorized practitioner of the healing arts for
5

6 drugs or medicinal supplies written or transmitted by any means of
6

7 communication for purposes of supporting the pharmacy record with
7

8 respect to orders or refills of a legend or narcotic drug.
8

9 D. The PBM or its agent shall not exceed an annual limit of

10 fifty prescription claims with a specific prescription number and
10

11 date of fill per calendar year. The annual limit to the number of
11

12 prescription claims audited shall be inclusive of all audits by a
12

13 PBM or its agent, including any prescription-related documentation
13

14 requests from the health insurer, pharmacy benefits manager or any
14

15 third-party company conducting audits on behalf of any health
15

16 insurer or pharmacy benefits manager during a calendar year.
16

17 E. If paper copies of records are requested by the entity

18 conducting the audit, the entity shall pay twenty-five cents ($0.25)
18

19 per page to cover the costs incurred by the pharmacy. The entity
19

20 conducting the audit shall provide the pharmacy with accurate
20

21 instructions, including any required form for obtaining
21

22 reimbursement for the copied records.
22

23 F. The entity conducting the audit shall:

Req. No. 3559 Page 347
1 1. Deliver a preliminary audit findings report to the pharmacy

2 and the pharmacy's contracting agent within forty-five (45) calendar
2

3 days of conducting the audit;
3

4 2. Allow the pharmacy at least ninety (90) calendar days

5 following receipt of the preliminary audit findings report in which
5

6 to produce documentation to address any discrepancy found during the
6

7 audit; provided, however, a pharmacy may request an extension, not
7

8 to exceed an additional forty-five (45) calendar days;
8

9 3. Deliver a final audit findings report to the pharmacy and

10 the pharmacy's contracting agent signed by the auditor within ten
10

11 (10) calendar days after receipt of additional documentation
11

12 provided by the pharmacy, as provided for in Section 356.3 of this
12

13 title;
13

14 4. Allow the pharmacy to reverse and resubmit claims

15 electronically within thirty (30) calendar days of receipt of the
15

16 final audit report in lieu of the auditing entity recouping
16

17 discrepant claim amounts from the pharmacy;
17

18 5. Not recoup any disputed funds until after final disposition

19 of the audit findings, including the appeals process as provided for
19

20 in Section 356.3 of this title;
20

21 6. Not accrue interest during the audit and appeal period;

22 7. Ensure that each preliminary audit findings report required

23 by this section includes:
23

Req. No. 3559 Page 348
1 a. specific prescription numbers, fill dates, drug names,

2 and NDC numbers, and

3 b. the date of receipt of documents from the pharmacy,

4 the pharmacy's contracting agent, or any other source

5 associated with the audit.

6 In addition to the requirements for a preliminary audit findings

7 report in this paragraph, the final audit findings report shall
7

8 include any additional documentation that was submitted to the
8

9 auditing entity;
9

10 8. Provide the plan sponsor a copy of the final audit results

11 within thirty (30) calendar days of the final disposition of the
11

12 audit; and
12

13 9. At the request of the plan sponsor, provide a copy of the

14 final audit findings report within thirty (30) calendar days of the
14

15 request.
15

16 G. 1. The full amount of any recoupment on an audit shall be

17 refunded to the plan sponsor. Except as provided for in paragraph 2
17

18 of this subsection, a charge or assessment for an audit shall not be
18

19 based, directly or indirectly, on amounts recouped.
19

20 2. This subsection does not prevent the entity conducting the

21 audit from charging or assessing the responsible party, directly or
21

22 indirectly, based on amounts recouped if both of the following
22

23 conditions are met:
23

Req. No. 3559 Page 349
1 a. the plan sponsor and the entity conducting the audit

2 have a contract that explicitly states the percentage

3 charge or assessment to the plan sponsor, and

4 b. a commission to an agent or employee of the entity

5 conducting the audit is not based, directly or

6 indirectly, on amounts recouped.

7 H. Unless superseded by state or federal law, auditors shall

8 only have access to previous audit reports on a particular pharmacy
8

9 conducted by the auditing entity for the same pharmacy benefits
9

10 manager, health plan or insurer. An auditing vendor contracting
10

11 with multiple pharmacy benefits managers or health insurance plans
11

12 shall not use audit reports or other information gained from an
12

13 audit on a pharmacy to conduct another audit for a different
13

14 pharmacy benefits manager or health insurance plan.
14

15 I. Paragraph 2 of subsection A of this section through

16 subsection D of this section, and paragraph 1 through paragraph 7 of
16

17 subsection F of this section shall not apply to any audit initiated
17

18 based on suspicion of fraud, willful misrepresentation, or abuse.
18

19 J. If the Attorney General, after notice and opportunity for

20 hearing, finds that the entity conducting the audit failed to follow
20

21 any of the requirements pursuant to the Pharmacy Audit Integrity
21

22 Act, the audit shall be considered null and void. Any monies
22

23 recouped from a null and void audit shall be returned to the
23

24 affected pharmacy within fourteen (14) calendar days. Any violation
24

Req. No. 3559 Page 350
1 of this section by a pharmacy benefits manager or auditing entity
1

2 shall be deemed a violation of the Pharmacy Audit Integrity Act.
2

3 SECTION 98. REPEALER 59 O.S. 2021, Section 356.2, as

4 last amended by Section 1, Chapter 414, O.S.L. 2025 (59 O.S. Supp.
4

5 2025, Section 356.2), is hereby repealed.
5

6 SECTION 99. AMENDATORY 59 O.S. 2021, Section 357, as

7 last amended by Section 2, Chapter 414, O.S.L. 2025 (59 O.S. Supp.
7

8 2025, Section 357), is amended to read as follows:
8

9 Section 357. A. As used in Sections 357 through 360 of this

10 title and Section 360.1 of this title:
10

11 1. "Covered entity" means a nonprofit hospital or medical

12 service organization, for-profit hospital or medical service
12

13 organization, insurer, health benefit plan, health maintenance
13

14 organization, health program administered by the state in the
14

15 capacity of providing health coverage, or an employer, labor union,
15

16 or other group of persons that provides health coverage to persons
16

17 in this state. This term does not include a health benefit plan
17

18 that provides coverage only for accidental injury, specified
18

19 disease, hospital indemnity, disability income, or other limited
19

20 benefit health insurance policies and contracts that do not include
20

21 prescription drug coverage;
21

22 2. "Covered individual" means a member, participant, enrollee,

23 contract holder or policy holder or beneficiary of a covered entity
23

24 who is provided health coverage by the covered entity. A covered
24

Req. No. 3559 Page 351
1 individual includes any dependent or other person provided health
1

2 coverage through a policy, contract or plan for a covered
2

3 individual;
3

4 3. "Department" means the Insurance Department;

5 4. "Effective rate contracting" means any agreement or

6 arrangement between a pharmacy or contracting agent acting on behalf
6

7 of a pharmacy and a pharmacy benefits manager for pharmaceuticals
7

8 based on the effective rate of payment rather than a predetermined
8

9 fixed price or fixed discount percentage;
9

10 5. "Maximum allowable cost", "MAC", or "MAC list" means the

11 list of drug products delineating the maximum per-unit reimbursement
11

12 for multiple-source prescription drugs, medical product, or device;
12

13 6. "Multisource drug product reimbursement" (reimbursement)

14 means the total amount paid to a pharmacy inclusive of any reduction
14

15 in payment to the pharmacy, excluding prescription dispense fees and
15

16 professional fees;
16

17 7. "Office" means the Office of the Attorney General;

18 8. "Pharmacy benefits management" means a service provided to

19 covered entities to facilitate the provision of prescription drug
19

20 benefits to covered individuals within the state, including
20

21 negotiating pricing and other terms with drug manufacturers and
21

22 providers. Pharmacy benefits management may include any or all of
22

23 the following services:
23

Req. No. 3559 Page 352
1 a. claims processing, retail network management and

2 payment of claims to pharmacies for prescription drugs

3 dispensed to covered individuals,

4 b. clinical formulary development and management

5 services, or

6 c. rebate contracting and administration;

7 9. "Pharmacy benefits manager" or "PBM" means a person,

8 business, or other entity that performs pharmacy benefits
8

9 management. The term shall include any business or entity licensed
9

10 by the Insurance Department to perform PBM services, or a person or
10

11 entity acting on behalf of a PBM in a contractual or employment
11

12 relationship in the performance of pharmacy benefits management for
12

13 a managed care company, nonprofit hospital, medical service
13

14 organization, insurance company, third-party payor, or a health
14

15 program administered by an agency or department of this state;
15

16 10. "Plan sponsor" means the employers, insurance companies,

17 unions and health maintenance organizations or any other entity
17

18 responsible for establishing, maintaining, or administering a health
18

19 benefit plan on behalf of covered individuals; and
19

20 11. "Provider" means a pharmacy licensed by the State Board of

21 Pharmacy, or an agent or representative of a pharmacy, including,
21

22 but not limited to, the pharmacy's contracting agent, which
22

23 dispenses prescription drugs or devices to covered individuals.
23

Req. No. 3559 Page 353
1 B. Nothing in the definition of pharmacy benefits management or

2 pharmacy benefits manager in the Patient's Right to Pharmacy Choice
2

3 Act, Pharmacy Audit Integrity Act, or Sections 357 through 360 of
3

4 this title, or Section 360.1 of this title shall deem an employer a
4

5 "pharmacy benefits manager" pharmacy benefits manager of its own
5

6 self-funded health benefit plan, except, to the extent permitted by
6

7 applicable law, where the employer, without the utilization of a
7

8 third party and unrelated to the employer's own pharmacy:
8

9 a. negotiates 1. Negotiates directly with drug

10 manufacturers,;
10

11 b. processes 2. Processes claims on behalf of its members,;

12 or
12

13 c. manages 3. Manages its own retail network of pharmacies.

14 SECTION 100. REPEALER 59 O.S. 2021, Section 357, as last

15 amended by Section 6, Chapter 300, O.S.L. 2025 (59 O.S. Supp. 2025,
15

16 Section 357), is hereby repealed.
16

17 SECTION 101. AMENDATORY 59 O.S. 2021, Section 360, as

18 last amended by Section 3, Chapter 414, O.S.L. 2025 (59 O.S. Supp.
18

19 2025, Section 360), is amended to read as follows:
19

20 Section 360. A. The pharmacy benefits manager shall, with

21 respect to contracts between a pharmacy benefits manager and a
21

22 provider, including a pharmacy service administrative organization:
22

23 l. Include in such contracts the specific sources utilized to

24 determine the maximum allowable cost (MAC) pricing of the pharmacy,
24

Req. No. 3559 Page 354
1 update MAC pricing at least every seven (7) calendar days, and
1

2 establish a process for providers to readily access the MAC list
2

3 specific to that provider;
3

4 2. In order to place a drug on the MAC list, ensure that the

5 drug is listed as "A" or "B" rated in the most recent version of the
5

6 FDA's United States Food and Drug Administration (FDA) Approved Drug
6

7 Products with Therapeutic Equivalence Evaluations, also known as the
7

8 Orange Book, and the drug is generally available for purchase by
8

9 pharmacies in the state from national or regional wholesalers and is
9

10 not obsolete;
10

11 3. Ensure dispensing fees are not included in the calculation

12 of MAC price reimbursement to pharmacy providers;
12

13 4. Provide a reasonable administration appeals procedure to

14 allow a provider, a provider's representative and a pharmacy service
14

15 administrative organization to contest reimbursement amounts within
15

16 fourteen (14) calendar days of the final adjusted payment date. The
16

17 pharmacy benefits manager shall not prevent the pharmacy or the
17

18 pharmacy service administrative organization from filing
18

19 reimbursement appeals in an electronic batch format. The pharmacy
19

20 benefits manager must respond to a provider, a provider's
20

21 representative and a pharmacy service administrative organization
21

22 who have contested a reimbursement amount through this procedure
22

23 within ten (10) calendar days. The pharmacy benefits manager must
23

24 respond in an electronic batch format to reimbursement appeals filed
24

Req. No. 3559 Page 355
1 in an electronic batch format. The pharmacy benefits manager shall
1

2 not require a pharmacy or pharmacy services administrative
2

3 organization to log into a system to upload individual claim appeals
3

4 or to download individual appeal responses. If a price update is
4

5 warranted, the pharmacy benefits manager shall make the change in
5

6 the reimbursement amount, permit the dispensing pharmacy to reverse
6

7 and rebill the claim in question, and make the reimbursement amount
7

8 change retroactive and effective for all contracted providers; and
8

9 5. If a below-cost reimbursement appeal is denied, the PBM

10 shall provide the reason for the denial, including the National Drug
10

11 Code (NDC) number from, and the name of, the specific national or
11

12 regional wholesalers doing business in this state where the drug is
12

13 currently in stock and available for purchase by the dispensing
13

14 pharmacy at a price below the PBM's reimbursement price. The PBM
14

15 shall include documented proof from the specific national or
15

16 regional wholesalers doing business in this state showing that the
16

17 drug is currently in stock and available for purchase by the
17

18 dispensing pharmacy at a price below the PBM's reimbursement price.
18

19 If the NDC number provided by the pharmacy benefits manager is not
19

20 available below the acquisition cost obtained from the
20

21 pharmaceutical wholesaler from whom the dispensing pharmacy
21

22 purchases the majority of the prescription drugs that are dispensed,
22

23 the pharmacy benefits manager shall immediately adjust the
23

24 reimbursement amount, permit the dispensing pharmacy to reverse and
24

Req. No. 3559 Page 356
1 rebill the claim in question, and make the reimbursement amount
1

2 adjustment retroactive and in effect for all contracted providers
2

3 for future claims billed;
3

4 6. Any appeal that results in an increase in the reimbursement

5 from the PBM that continues to be below the pharmacy's acquisition
5

6 cost shall be considered a denial under this section. Any denial of
6

7 an appeal shall follow the requirements of paragraph 5 of this
7

8 subsection; and
8

9 7. The PBM shall not require a pharmacy to collect additional

10 monies following a successful below-cost reimbursement appeal from
10

11 any person or entity other than the PBM who adjudicated the drug
11

12 claim, including the patient or plan sponsor.
12

13 B. The reimbursement appeal requirements in this section shall

14 apply to all drugs, medical products, or devices reimbursed
14

15 according to any payment methodology, including, but not limited to:
15

16 1. Average acquisition cost, including the National Average

17 Drug Acquisition Cost;
17

18 2. Average manufacturer price;

19 3. Average wholesale price;

20 4. Brand effective rate or generic effective rate;

21 5. Discount indexing;

22 6. Federal upper limits;

23 7. Wholesale acquisition cost; and

Req. No. 3559 Page 357
1 8. Any other term that a pharmacy benefits manager or an

2 insurer of a health benefit plan may use to establish reimbursement
2

3 rates to a pharmacist or pharmacy for pharmacist services.
3

4 C. The pharmacy benefits manager shall not place a drug on a

5 MAC list, unless there are at least two therapeutically equivalent,
5

6 multiple-source drugs, generally available for purchase by
6

7 dispensing retail pharmacies from national or regional wholesalers.
7

8 D. In the event that a drug is placed on the FDA Drug Shortages

9 Database, pharmacy benefits managers shall reimburse claims to
9

10 pharmacies at no less than the wholesale acquisition cost for the
10

11 specific NDC number being dispensed.
11

12 E. The pharmacy benefits manager shall not require

13 accreditation or licensing of providers, or any entity licensed or
13

14 regulated by the State Board of Pharmacy, other than by the State
14

15 Board of Pharmacy or federal government entity as a condition for
15

16 participation as a network provider.
16

17 F. A pharmacy or pharmacist may decline to provide the

18 pharmacist clinical or dispensing services to a patient or pharmacy
18

19 benefits manager if the pharmacy or pharmacist is to be paid less
19

20 than the pharmacy's cost for providing the pharmacist clinical or
20

21 dispensing services.
21

22 G. The pharmacy benefits manager shall provide a dedicated

23 telephone number, email address and names of the personnel with
23

24 decision-making authority regarding MAC appeals and pricing.
24

Req. No. 3559 Page 358
1 H. Any pharmacy benefits manager (PBM) that leases, rents, or

2 otherwise makes its provider network or contracts available to
2

3 another pharmacy benefits manager shall:
3

4 1. Provide notice to all contracted providers of the lease

5 arrangement and the responsibilities of each party involved; and
5

6 2. Provide contact information in each paid or rejected claim

7 response that notifies the provider which contract the claim is
7

8 adjudicating against, who is processing the claim, and a phone
8

9 number to address provider issues; and
9

10 3. Transmit the network reimbursement identification

11 information with each claim response in NCPDP field 545-2F.
11

12 I. Any pharmacy benefits manager (PBM) that leases, rents, or

13 otherwise makes its provider network or contracts available to
13

14 another pharmacy benefits manager shall not combine any Employee
14

15 Retirement Income Security Act (ERISA) or government plans with any
15

16 non-ERISA or nongovernment plans.
16

17 J. 1. Effective rate contracting is hereby prohibited in all

18 agreements between pharmacies or contracting agents acting on behalf
18

19 of a pharmacy and a PBM or third-party payors. No PBM or third-
19

20 party payor shall enter into any contract that establishes payment
20

21 for services or medications based on an effective rate of
21

22 reimbursement.
22

23 2. Any PBM or third-party payor found to be in violation of

24 this section shall be subject to penalties, including, but not
24

Req. No. 3559 Page 359
1 limited to, fines, revocation of licensure, or other disciplinary
1

2 actions.
2

3 K. The provisions of this section shall not be waived, voided,

4 or nullified by contract.
4

5 SECTION 102. REPEALER 59 O.S. 2021, Section 360, as last

6 amended by Section 8, Chapter 300, O.S.L. 2025 (59 O.S. Supp. 2025,
6

7 Section 360), is hereby repealed.
7

8 SECTION 103. AMENDATORY 59 O.S. 2021, Section 481, as

9 amended by Section 1, Chapter 227, O.S.L. 2024 (59 O.S. Supp. 2025,
9

10 Section 481), is amended to read as follows:
10

11 Section 481. A. A State Board of Medical Licensure and

12 Supervision hereinafter referred to as the "Board", is hereby re-
12

13 created, to continue until July 1, 2024 July 1, 2030, in accordance
13

14 with the provisions of the Oklahoma Sunset Law. The Board shall be
14

15 composed of seven (7) allopathic physicians licensed to practice
15

16 medicine in this state and represent the public and four (4) lay
16

17 members.
17

18 B. The physician members of the Board shall be graduates of

19 legally chartered medical schools recognized by the Oklahoma State
19

20 Regents for Higher Education or the Liaison Committee on Medical
20

21 Education or foreign medical schools recognized by the State Board
21

22 of Medical Licensure and Supervision. The physician members shall:
22

Req. No. 3559 Page 360
1 1. Be currently licensed physicians who have actively practiced

2 as licensed physicians continuously in this state for the three (3)
2

3 years immediately preceding their appointment to the Board; or
3

4 2. Be retired physicians; provided, that such physicians must

5 demonstrate satisfactorily to the Board that since retirement they
5

6 have remained in compliance with, and are currently in compliance
6

7 with, continuing medical education requirements of the Board.
7

8 C. All members of the Board shall be residents of this state

9 and shall be appointed by the Governor as provided for in Section
9

10 482 of this title. All present members of the Board shall continue
10

11 to serve for the remainder of their current terms.
11

12 SECTION 104. REPEALER 59 O.S. 2021, Section 481, as last

13 amended by Section 1, Chapter 14, O.S.L. 2025 (59 O.S. Supp. 2025,
13

14 Section 481), is hereby repealed.
14

15 SECTION 105. AMENDATORY 59 O.S. 2021, Section 493.2, as

16 amended by Section 1, Chapter 61, O.S.L. 2025 (59 O.S. Supp. 2025,
16

17 Section 493.2), is amended to read as follows:
17

18 Section 493.2. A. Unless otherwise provided by this section,

19 foreign applicants and international medical school graduate
19

20 applicants shall otherwise meet all requirements for full and
20

21 unrestricted licensure as provided in Sections 492.1 and 493.1 of
21

22 this title.
22

23 B. 1. A foreign applicant for full and unrestricted licensure

24 shall possess the degree of Doctor of Medicine or a Board-approved
24

Req. No. 3559 Page 361
1 an equivalent approved by the State Board of Medical Licensure and
1

2 Supervision based on satisfactory completion of educational programs
2

3 from a foreign medical school as evidenced by the Educational
3

4 Commission for Foreign Medical Graduates (ECFMG).
4

5 2. In the event the foreign medical school utilized clerkships

6 in the United States, its territories or possessions, such
6

7 clerkships shall have been performed in hospitals and schools that
7

8 have programs accredited by the Accreditation Council for Graduate
8

9 Medical Education (ACGME).
9

10 C. 1. An international medical school graduate may apply for

11 limited licensure. The Board may issue a limited license of defined
11

12 duration to an international medical school graduate upon finding
12

13 sufficient evidence that the international medical school graduate
13

14 has:
14

15 a. graduated from a medical school which meets the

16 requirements of the Educational Commission for Foreign

17 Medical Graduates (ECFMG), and

18 b. paid any application fee as set by the Board.

19 2. The Board shall also find sufficient evidence of the

20 competency of the international medical school graduate through the
20

21 following:
21

22 a. verification of successful completion of a three-year

23 postgraduate training program in the graduate's

24 licensing country, or

Req. No. 3559 Page 362
1 b. verification that the applicant otherwise practiced as

2 a medical professional performing the duties of a

3 physician for at least three (3) of the last five (5)

4 years outside the United States verified by the

5 employer or health care provider.

6 3. An applicant under subparagraphs a and b of paragraph 1 of

7 this subsection shall submit sufficient evidence that the applicant
7

8 is an international medical school graduate and has an offer for
8

9 employment as a physician at a health care provider that operates in
9

10 this state and has a postgraduate training program accredited by the
10

11 Accreditation Council for Graduate Medical Education (ACGME) in
11

12 place.
12

13 4. During the term of the limited license, an international

14 medical school graduate who is granted a limited license under
14

15 subparagraphs a and b of paragraph 1 of this subsection shall only
15

16 provide medical services at a health care provider that has in place
16

17 postgraduate training program accredited by the Accreditation
17

18 Council for Graduate Medical Education (ACGME).
18

19 5. An international medical school graduate who is granted a

20 limited license shall be supervised by the chair of the department
20

21 within the applicant's intended practice during the term of the
21

22 limited license.
22

23 6. Three (3) years after the first date the limited licensee

24 begins to practice medicine at a health care provider in this state,
24

Req. No. 3559 Page 363
1 the Board may grant a full and unrestricted license to practice
1

2 medicine to a limited licensee under subparagraphs a and b of
2

3 paragraph 1 of this subsection who:
3

4 a. is in good standing without disciplinary actions or

5 investigations pending from his or her limited

6 licensure period, and

7 b. provides documentation of a passing score for United

8 States Medical Licensing Examination (USMLE) Step 1, 2

9 CK, and 3.

10 7. A limited licensee who obtains a full and unrestricted

11 license is not thereafter subject to the restriction of practicing
11

12 at a health care provider with a postgraduate training program.
12

13 8. As used in this subsection, "health care provider" means a

14 facility that will be employing the licensee within an academic
14

15 health system or the Oklahoma State University College of
15

16 Osteopathic Medicine.
16

17 D. Any foreign applicant or international medical school

18 graduate shall have a command of the English language that is
18

19 satisfactory to the State Board of Medical Licensure and
19

20 Supervision, determined by certification by the Educational
20

21 Commission for Foreign Medical Graduates (ECFMG).
21

22 E. The Board may promulgate rules requiring all foreign

23 applicants to satisfactorily complete at least twelve (12) months
23

24 and up to twenty-four (24) months of Board-approved progressive
24

Req. No. 3559 Page 364
1 graduate medical training as determined necessary by the Board for
1

2 the protection of the public health, safety, and welfare.
2

3 F. All credentials, diplomas and other required documentation

4 in a foreign language submitted to the Board by such applicants
4

5 shall be accompanied by notarized English translations performed by
5

6 an institution accredited by the North Central Association of
6

7 Colleges and Schools.
7

8 G. Foreign applicants and international medical school

9 graduates shall provide satisfactory evidence of having met the
9

10 requirements for permanent residence or temporary nonimmigrant
10

11 status as set forth by the United States Immigration and
11

12 Naturalization Service Department of Homeland Security.
12

13 H. The Board requires original source verification of the

14 Educational Commission for Foreign Medical Graduates (ECFMG)
14

15 Certification or Medical Council of Canada Qualifying Examination
15

16 (MCCQUE) Certification.
16

17 I. The applicant shall not have committed or been found guilty

18 by a competent authority, United States or foreign, of any conduct
18

19 that would constitute grounds for disciplinary action under this act
19

20 or rules by the Board. The Board may modify this restriction for
20

21 cause.
21

22 J. If the applicant has not been practicing medicine for more

23 than two (2) years, the applicant shall be subject to Section 495h
23

24 of this title.
24

Req. No. 3559 Page 365
1 SECTION 106. REPEALER 59 O.S. 2021, Section 493.2, as

2 amended by Section 3, Chapter 350, O.S.L. 2025 (59 O.S. Supp. 2025,
2

3 Section 493.2), is hereby repealed.
3

4 SECTION 107. REPEALER 59 O.S. 2021, Section 1000.2, as

5 amended by Section 1, Chapter 292, O.S.L. 2013, is hereby repealed.
5

6 SECTION 108. AMENDATORY 59 O.S. 2021, Section 1873, as

7 last amended by Section 1, Chapter 235, O.S.L. 2025 (59 O.S. Supp.
7

8 2025, Section 1873), is amended to read as follows:
8

9 Section 1873. A. There is hereby re-created, to continue until

10 July 1, 2025 July 1, 2028, in accordance with the provisions of the
10

11 Oklahoma Sunset Law, the Oklahoma Board of Licensed Alcohol and Drug
11

12 Counselors, consisting of seven (7) members, to be appointed by the
12

13 Governor, with the advice and consent of the Senate, as provided by
13

14 subsection B of this section.
14

15 B. 1. Five members shall be licensed alcohol and drug

16 counselors, and one member shall be certified as an alcohol and drug
16

17 counselor. Each such member shall be licensed or certified in good
17

18 standing and shall have at least three (3) years of experience in
18

19 the practice of alcohol and drug counseling in this state. Of the
19

20 members appointed under the provisions of this paragraph, the
20

21 Governor shall appoint:
21

22 a. four members from a list of names submitted by the

23 Oklahoma Drug and Alcohol Professional Counselor

24 Association,

Req. No. 3559 Page 366
1 b. one member from a list of names submitted by the

2 Oklahoma Behavioral Health Association, and

3 c. one member from a list of names submitted by the

4 Oklahoma Citizen Advocates for Recovery and

5 Transformation Association.

6 2. One member shall be appointed from and shall represent the

7 general public. Such member shall be a resident of this state who
7

8 has attained the age of majority and shall not be, nor shall ever
8

9 have been, a licensed or certified alcohol and drug counselor, or
9

10 the spouse of a licensed or certified alcohol and drug counselor, or
10

11 a person who has ever had any material financial interest in the
11

12 provision of alcohol and drug counseling services or has engaged in
12

13 any activity directly related to the practice of alcohol and drug
13

14 counseling.
14

15 C. The terms of all members shall be five (5) years.

16 D. A vacancy on the Board shall be filled in the same manner as

17 the original appointment for the balance of the unexpired term.
17

18 Members may succeed themselves but shall serve no more than two
18

19 consecutive terms. Each member shall serve until a successor is
19

20 appointed and qualified.
20

21 E. Members of the Board may be removed from office for one or

22 more of the following reasons:
22

Req. No. 3559 Page 367
1 1. The refusal or inability for any reason to perform the

2 duties of a Board member in an efficient, responsible and
2

3 professional manner;
3

4 2. The misuse of office for pecuniary or material gain or for

5 personal advantage for self or another;
5

6 3. A violation of the laws or rules governing the practice of

7 alcohol and drug counseling; or
7

8 4. Conviction of a felony as verified by a certified copy of

9 the record of the court of conviction.
9

10 F. Members of the Board shall serve without compensation, but

11 shall be reimbursed for actual and necessary travel expenses as
11

12 provided in the State Travel Reimbursement Act.
12

13 SECTION 109. REPEALER 59 O.S. 2021, Section 1873, as

14 last amended by Section 1, Chapter 266, O.S.L. 2025 (59 O.S. Supp.
14

15 2025, Section 1873), is hereby repealed.
15

16 SECTION 110. AMENDATORY 63 O.S. 2021, Section 1-106, as

17 last amended by Section 3, Chapter 377, O.S.L. 2025 (63 O.S. Supp.
17

18 2025, Section 1-106), is amended to read as follows:
18

19 Section 1-106. A. The State Commissioner of Health shall serve

20 at the pleasure of the Governor, and shall have skill and experience
20

21 in public health duties and sanitary sciences and shall meet at
21

22 least one of the following qualifications:
22

23 1. Possession of a Doctor of Medicine Degree and a license to

24 practice medicine in this state;
24

Req. No. 3559 Page 368
1 2. Possession of an Osteopathic Medicine Degree and a license

2 to practice medicine in this state;
2

3 3. Possession of a Doctoral degree in Public Health or Public

4 Health Administration; or
4

5 4. Possession of a Master of Science Degree and a minimum of

6 five (5) years of supervisory experience in the administration of
6

7 health services.
7

8 B. The Commissioner shall be exempt from all qualifications

9 enumerated in subsection A of this section if the Commissioner
9

10 possesses at least a master's degree and has experience in
10

11 management of state agencies or large projects.
11

12 C. The Commissioner shall have the following powers and duties,

13 unless otherwise directed by the Governor:
13

14 1. Have general supervision of the health of the citizens of

15 the state; make investigations, inquiries and studies concerning the
15

16 causes of disease and injury, and especially of epidemics, and the
16

17 causes of mortality, and the effects of localities, employment,
17

18 conditions and circumstances on the public health; investigate
18

19 conditions as to health, sanitation and safety of schools, prisons,
19

20 public institutions, mines, public conveyances, camps, places of
20

21 group abode, and all buildings and places of public resort, and
21

22 recommend, prescribe and enforce such measures of health, sanitation
22

23 and safety for them as the Commissioner deems advisable; take such
23

24 measures as deemed necessary by the Commissioner to control or
24

Req. No. 3559 Page 369
1 suppress, or to prevent the occurrence or spread of, any
1

2 communicable, contagious or infectious disease, and provide for the
2

3 segregation and isolation of persons having or suspected of having
3

4 any such disease; designate places of quarantine or isolation;
4

5 advise state and local governments on matters pertaining to health,
5

6 sanitation and safety; and abate any nuisance affecting injuriously
6

7 the health of the public or any community. Any health information
7

8 or data acquired by the Commissioner from any public agency, which
8

9 information or data is otherwise confidential by state or federal
9

10 law, shall remain confidential notwithstanding the acquisition of
10

11 this information by the Commissioner.;
11

12 2. Be the executive officer and supervise the activities of the

13 State Department of Health, and act for the Department in all
13

14 matters except as may be otherwise provided in this Code; administer
14

15 oaths at any hearing or investigation conducted pursuant to this
15

16 Code; and enforce rules and standards adopted by the Commissioner.
16

17 All rules adopted by the Commissioner are subject to the terms and
17

18 conditions of the Administrative Procedures Act.;
18

19 3. Appoint an Assistant State Commissioner of Health and fix

20 the qualifications, duties and compensation of the Assistant State
20

21 Commissioner of Health; and employ, appoint and contract with, and
21

22 fix the qualifications, duties and compensation of, such other
22

23 assistants, doctors, engineers, attorneys, sanitarians, nurses,
23

24 laboratory personnel, administrative, clerical and technical help,
24

Req. No. 3559 Page 370
1 investigators, aides and other personnel and help, either on a full-
1

2 time, part-time, fee or contractual basis, as shall be deemed by the
2

3 Commissioner necessary, expedient, convenient or appropriate to the
3

4 performance or carrying out of any of the purposes, objectives or
4

5 provisions of this Code, or to assist the Commissioner in the
5

6 performance of official duties and functions.;
6

7 4. Cause investigations, inquiries and inspections to be made,

8 and hold hearings and issue orders pursuant to the provisions of the
8

9 Administrative Procedures Act, to enforce and make effective the
9

10 provisions of this Code, and all rules and standards adopted by the
10

11 Commissioner pursuant to law and the Commissioner or the
11

12 representative of the Commissioner shall have the right of access to
12

13 any premises for such purpose at any reasonable time, upon
13

14 presentation of identification.;
14

15 5. Authorize persons in the State Department of Health to

16 conduct investigations, inquiries and hearings, and to perform other
16

17 acts that the Commissioner is authorized or required to conduct or
17

18 perform personally.;
18

19 6. Except as otherwise provided by law, all civil and criminal

20 proceedings under this Code shall be initiated and prosecuted by the
20

21 district attorney where the violation takes place.;
21

22 7. Issue subpoenas for the attendance of witnesses and the

23 production of books and records at any hearing to be conducted by
23

24 the Commissioner and issue subpoenas for the testimony of
24

Req. No. 3559 Page 371
1 individuals or for the production of records in connection with an
1

2 investigation conducted by the Office of Client Advocacy within the
2

3 State Department of Health; and if a person disobeys any such
3

4 subpoena, or refuses to give evidence before, or to allow books and
4

5 records to be examined by, the Commissioner after such person is
5

6 directed to do so, the Commissioner may file a contempt proceeding
6

7 in the district court of the county in which the premises involved
7

8 are situated, or, if no premises are involved, of the county in
8

9 which such person resides or has a principal place of business, and
9

10 a judge of such court, after a trial de novo, may punish the
10

11 offending person for contempt.;
11

12 8. Unless otherwise required by the terms of a federal grant,

13 sell, exchange or otherwise dispose of personal property that has
13

14 been acquired by the State Department of Health, or any of its
14

15 components, when such property becomes obsolete or is no longer
15

16 needed; any money derived therefrom shall be deposited in the Public
16

17 Health Special Fund.;
17

18 9. Sell films, educational materials, biological products and

19 other items produced by the State Department of Health; and all
19

20 proceeds therefrom shall be deposited in the Public Health Special
20

21 Fund.;
21

22 10. Revoke or cancel, or suspend for any period up to one (1)

23 year, any license or permit issued under or pursuant to this Code,
23

24 or by the Commissioner, when the Commissioner determines that ground
24

Req. No. 3559 Page 372
1 therefor as prescribed by this Code exists, or that the holder of
1

2 such license or permit has violated any law, or any of the
2

3 provisions of this Code, or any rules or standards of the
3

4 Commissioner filed with the Secretary of State, but the Commissioner
4

5 shall first afford the holder an opportunity to show cause why the
5

6 license or permit should not be revoked, canceled or suspended,
6

7 notice of such opportunity to be given by certified United States
7

8 Mail to the holder of the license or permit at the last-known
8

9 address of such holder.;
9

10 11. Accept, use, disburse and administer grants, allotments,

11 gifts, devises, bequests, appropriations and other monies and
11

12 property offered or given to the State Department of Health, or any
12

13 component or agency thereof, by any agency of the federal
13

14 government, or any corporation or individual.;
14

15 12. Be the official agency of the State of Oklahoma in all

16 matters relating to public health which require or authorize
16

17 cooperation of the State of Oklahoma with the federal government or
17

18 any agency thereof; coordinate the activities of the State
18

19 Department of Health with those of the federal government or any
19

20 department or agency thereof, and with other states, on matters
20

21 pertaining to public health, and enter into agreements for such
21

22 purpose, and may accept, use, disburse and administer, for the
22

23 office of the Commissioner or for the State Department of Health,
23

24 for any purpose designated and on the terms and conditions thereof,
24

Req. No. 3559 Page 373
1 grants of money, personnel and property from the federal government
1

2 or any department or agency thereof, or from any state or state
2

3 agency, or from any other source, to promote and carry on in this
3

4 state any program relating to the public health or the control of
4

5 disease, and enter into agreements for such purposes.;
5

6 13. The State Commissioner of Health may appoint Appoint

7 commissioned peace officers, certified by the Council on Law
7

8 Enforcement Education and Training, to investigate violations of the
8

9 Public Health Code and to provide security to Department
9

10 facilities.;
10

11 14. Pursuant to Section 1-106 of this title, the State

12 Commissioner of Health shall appoint a Chief Medical Officer who
12

13 reports directly to the State Commissioner of Health. Commissioner;
13

14 and
14

15 15. The State Commissioner of Health shall, in consultation

16 with local and national organizations that provide education or
16

17 services related to epilepsy conditions, provide guidance to medical
17

18 doctors, osteopathic physicians, nurse practitioners, and physician
18

19 assistants who have the primary responsibility for treatment of a
19

20 person with epilepsy to assist in determining whether a patient is
20

21 at elevated risk for sudden unexpected death in epilepsy (SUDEP),
21

22 including, but not limited to, whether the patient has had
22

23 convulsive seizures, the frequency and recency of such seizures, and
23

24 whether the patient's symptoms have subsided in response to
24

Req. No. 3559 Page 374
1 medicinal or surgical treatment. The Chief Medical Examiner shall
1

2 provide to all employees of the Chief Medical Examiner's Office
2

3 information about sudden unexpected death in epilepsy (SUDEP).
3

4 SECTION 111. REPEALER 63 O.S. 2021, Section 1-106, as

5 last amended by Section 13, Chapter 215, O.S.L. 2025 (63 O.S. Supp.
5

6 2025, Section 1-106), is hereby repealed.
6

7 SECTION 112. AMENDATORY 63 O.S. 2021, Section 2-312, as

8 last amended by Section 10, Chapter 340, O.S.L. 2025 (63 O.S. Supp.
8

9 2025, Section 2-312), is amended to read as follows:
9

10 Section 2-312. A. A physician, podiatrist, optometrist, or a

11 dentist who has complied with the registration requirements of the
11

12 Uniform Controlled Dangerous Substances Act, in good faith and in
12

13 the course of such person's professional practice only, may
13

14 prescribe and administer controlled dangerous substances, or may
14

15 cause the same to be administered by medical or paramedical
15

16 personnel acting under the direction and supervision of the
16

17 physician, podiatrist, optometrist, or dentist, and only may
17

18 dispense controlled dangerous substances pursuant to the provisions
18

19 of Sections 355.1 and 355.2 of Title 59 of the Oklahoma Statutes.
19

20 B. A veterinarian who has complied with the registration

21 requirements of the Uniform Controlled Dangerous Substances Act, in
21

22 good faith and in the course of the professional practice of the
22

23 veterinarian only, and not for use by a human being, may prescribe,
23

24 administer, and dispense controlled dangerous substances and may
24

Req. No. 3559 Page 375
1 cause them to be administered by an assistant or orderly under the
1

2 direction and supervision of the veterinarian.
2

3 C. An Advanced Practice Registered Nurse who is recognized to

4 prescribe by the Oklahoma Board of Nursing as a Certified Nurse
4

5 Practitioner, Clinical Nurse Specialist, or Certified Nurse-Midwife
5

6 and who has complied with the registration requirements of the
6

7 Uniform Controlled Dangerous Substances Act, in good faith and in
7

8 the course of professional practice only, may prescribe and
8

9 administer Schedule III, IV, and V controlled dangerous substances.
9

10 If the Advanced Practice Registered Nurse has not obtained
10

11 independent prescriptive authority under Section 1 of this act, he
11

12 or she may only prescribe and administer such controlled dangerous
12

13 substances under the supervision of a supervising physician in
13

14 accordance with the Oklahoma Nursing Practice Act and Section 4 of
14

15 this act and shall not prescribe or administer any controlled
15

16 dangerous substance in a schedule that the supervising physician is
16

17 not registered to prescribe and administer.
17

18 D. An Advanced Practice Registered Nurse who is recognized to

19 order, select, obtain, and administer drugs by the Oklahoma Board of
19

20 Nursing as a Certified Registered Nurse Anesthetist pursuant to
20

21 Section 353.1b of Title 59 of the Oklahoma Statutes and who has
21

22 complied with the registration requirements of the Uniform
22

23 Controlled Dangerous Substances Act, in good faith and in the course
23

24 of such practitioner's professional practice only, may order,
24

Req. No. 3559 Page 376
1 select, obtain, and administer Schedules II through V controlled
1

2 dangerous substances in a preanesthetic preparation or evaluation;
2

3 anesthesia induction, maintenance, or emergence; or postanesthesia
3

4 care setting only. A Certified Registered Nurse Anesthetist may
4

5 order, select, obtain, and administer such drugs only during the
5

6 perioperative or periobstetrical period.
6

7 E. A physician assistant who is recognized to prescribe by the

8 State Board of Medical Licensure and Supervision under the medical
8

9 direction of a supervising physician, pursuant to Section 519.6 of
9

10 Title 59 of the Oklahoma Statutes, and who has complied with the
10

11 registration requirements of the Uniform Controlled Dangerous
11

12 Substances Act, in good faith and in the course of professional
12

13 practice only, may prescribe and administer Schedule II through V
13

14 controlled dangerous substances subject to the restrictions in
14

15 Section 519.6 of Title 59 of the Oklahoma Statutes.
15

16 SECTION 113. REPEALER 63 O.S. 2021, Section 2-312, as

17 last amended by Section 9, Chapter 343, O.S.L. 2025 (63 O.S. Supp.
17

18 2025, Section 2-312), is hereby repealed.
18

19 SECTION 114. AMENDATORY 63 O.S. 2021, Section 427.17, as

20 last amended by Section 4, Chapter 447, O.S.L. 2024 (63 O.S. Supp.
20

21 2025, Section 427.17), is amended to read as follows:
21

22 Section 427.17. A. There is hereby created a medical marijuana

23 testing laboratory license as a category of the medical marijuana
23

24 business license. The Oklahoma Medical Marijuana Authority, the
24

Req. No. 3559 Page 377
1 Oklahoma State Bureau of Narcotics and Dangerous Drugs Control, the
1

2 Oklahoma State Bureau of Investigation, and the Attorney General are
2

3 hereby enabled to monitor, inspect and audit a licensed testing
3

4 laboratory under the Oklahoma Medical Marijuana and Patient
4

5 Protection Act.
5

6 B. The Authority is hereby authorized to operate a quality

7 assurance laboratory or to contract with a private laboratory for
7

8 the purpose of conducting compliance testing of medical marijuana
8

9 testing laboratories licensed in this state. Any such laboratory
9

10 under contract for compliance testing shall be prohibited from
10

11 conducting any other commercial medical marijuana testing in this
11

12 state. If the Authority contracts with a private laboratory to
12

13 implement the requirements of this section:
13

14 1. The laboratory shall not employ, or be owned by, the

15 following:
15

16 a. any individual that has a direct or indirect interest

17 in a licensed medical marijuana business, or

18 b. any individual or his or her spouse, parent, child,

19 spouse of a child, sibling or spouse of a sibling that

20 has an application for a medical marijuana business

21 license pending before the Authority or is a member of

22 the board of directors of a medical marijuana

23 business, or is an individual financially interested

Req. No. 3559 Page 378
1 in any licensee or medical marijuana business located

2 within this state; and

3 2. The laboratory and a board or committee comprised of

4 licensed Oklahoma medical marijuana laboratories currently
4

5 accredited by the International Organization for Standardization
5

6 (ISO) shall provide to the Authority its recommendations for all
6

7 equipment and standards to be utilized by licensed medical marijuana
7

8 testing laboratories when testing samples of medical marijuana,
8

9 medical marijuana concentrate, and medical marijuana products as
9

10 well as standard operating procedures when extracting and testing
10

11 medical marijuana, medical marijuana concentrate, and medical
11

12 marijuana products. The recommendations shall be submitted to the
12

13 Authority no later than June 1, 2023. The Authority shall have
13

14 ninety (90) days from the date it receives the recommendations to
14

15 promulgate new rules or modify its current rules for laboratory
15

16 standards and testing. Beginning June 1, 2024, medical marijuana
16

17 testing laboratories renewing their medical marijuana business
17

18 license shall be subject to and comply with any new or modified
18

19 rules relating to the testing of medical marijuana, medical
19

20 marijuana concentrate, and medical marijuana products. The refusal
20

21 or failure of a medical marijuana testing laboratory licensee to
21

22 comply with new or modified rules relating to laboratory standards
22

23 and testing procedures promulgated under the provisions of this
23

Req. No. 3559 Page 379
1 paragraph shall result in the permanent revocation of the medical
1

2 marijuana testing laboratory license.
2

3 C. The Authority shall develop acceptable testing practices

4 including, but not limited to, testing, standards, quality control
4

5 analysis, equipment certification and calibration, process
5

6 validation, and chemical identification and substances used.
6

7 D. A person who is a direct beneficial owner of a medical

8 marijuana dispensary, medical marijuana commercial grower or medical
8

9 marijuana processor shall not be an owner of a laboratory.
9

10 E. A laboratory and a laboratory applicant shall comply with

11 all applicable local ordinances including, but not limited to,
11

12 zoning, occupancy, licensing and building codes.
12

13 F. A separate license shall be required for each specific

14 laboratory.
14

15 G. A medical marijuana testing laboratory license may be issued

16 to a person who performs testing on medical marijuana and medical
16

17 marijuana products for medical marijuana businesses, medical
17

18 marijuana research facilities, medical marijuana education
18

19 facilities, and testing on marijuana and marijuana products grown or
19

20 produced by a patient or caregiver on behalf of a patient, upon
20

21 verification of registration. A medical marijuana testing
21

22 laboratory may also conduct research related to the development and
22

23 improvement of its testing practices and procedures. No state-
23

Req. No. 3559 Page 380
1 approved medical marijuana testing facility shall operate unless a
1

2 medical laboratory director is on site during operational hours.
2

3 H. Laboratory applicants and licensees shall comply with the

4 application requirements of this section and shall submit such other
4

5 information as required for a medical marijuana business applicant,
5

6 in addition to any information the Authority may request for initial
6

7 approval and periodic evaluations during the approval period.
7

8 I. A medical marijuana testing laboratory may accept samples of

9 medical marijuana, medical marijuana concentrate or medical
9

10 marijuana product from a medical marijuana business, medical
10

11 marijuana research facility or medical marijuana education facility
11

12 for testing purposes only, which purposes may include the provision
12

13 of testing services for samples submitted by a medical marijuana
13

14 business for product development. The Authority may require a
14

15 medical marijuana business to submit a sample of medical marijuana,
15

16 medical marijuana concentrate or medical marijuana product to a
16

17 medical marijuana testing or quality assurance laboratory upon
17

18 demand.
18

19 J. A medical marijuana testing laboratory may accept samples of

20 medical marijuana, medical marijuana concentrate or medical
20

21 marijuana product from an individual person for testing only under
21

22 the following conditions:
22

23 1. The individual person is a patient or caregiver pursuant to

24 the Oklahoma Medical Marijuana and Patient Protection Act or is a
24

Req. No. 3559 Page 381
1 participant in an approved clinical or observational study conducted
1

2 by a research facility; and
2

3 2. The medical marijuana testing laboratory shall require the

4 patient or caregiver to produce a valid patient license and current
4

5 and valid photo identification.
5

6 K. A medical marijuana testing laboratory may transfer samples

7 to another medical marijuana testing laboratory for testing. All
7

8 laboratory reports provided to or by a medical marijuana business or
8

9 to a patient or caregiver shall identify the medical marijuana
9

10 testing laboratory that actually conducted the test.
10

11 L. A medical marijuana testing laboratory may utilize a

12 licensed medical marijuana transporter to transport samples of
12

13 medical marijuana, medical marijuana concentrate and medical
13

14 marijuana product for testing, in accordance with the Oklahoma
14

15 Medical Marijuana and Patient Protection Act and the rules adopted
15

16 pursuant thereto, between the originating medical marijuana business
16

17 requesting testing services and the destination laboratory
17

18 performing testing services.
18

19 M. The medical marijuana testing laboratory shall establish

20 policies to prevent the existence of or appearance of undue
20

21 commercial, financial or other influences that may diminish the
21

22 competency, impartiality and integrity of the testing processes or
22

23 results of the laboratory, or that may diminish public confidence in
23

24 the competency, impartiality and integrity of the testing processes
24

Req. No. 3559 Page 382
1 or results of the laboratory. At a minimum, employees, owners or
1

2 agents of a medical marijuana testing laboratory who participate in
2

3 any aspect of the analysis and results of a sample are prohibited
3

4 from improperly influencing the testing process, improperly
4

5 manipulating data or improperly benefiting from any ongoing
5

6 financial, employment, personal or business relationship with the
6

7 medical marijuana business that provided the sample. A medical
7

8 marijuana testing laboratory shall not test samples for any medical
8

9 marijuana business in which an owner, employee or agent of the
9

10 medical marijuana testing laboratory has any form of ownership or
10

11 financial interest in the medical marijuana business.
11

12 N. The Authority, pursuant to rules promulgated by the

13 Executive Director of the Authority, shall develop standards,
13

14 policies and procedures as necessary for:
14

15 1. The cleanliness and orderliness of a laboratory premises and

16 the location of the laboratory in a secure location, and inspection,
16

17 cleaning and maintenance of any equipment or utensils used for the
17

18 analysis of test samples;
18

19 2. Testing procedures, testing standards for cannabinoid and

20 terpenoid potency and safe levels of contaminants, process
20

21 validation, and remediation procedures. Process validation shall be
21

22 voluntary, and no licensee shall be required to validate their
22

23 process. The Authority shall develop standards and requirements for
23

24 a licensee to achieve process validation by January 1, 2024. The
24

Req. No. 3559 Page 383
1 standards, policies, and procedures for process validation shall
1

2 include, but not be limited to:
2

3 a. initial requirements to achieve process validation and

4 ongoing minimum testing requirements once a licensee

5 has achieved process validation,

6 b. requiring licensees to track their marijuana and

7 marijuana product inventory with the Authority's

8 designated seed-to-sale system provided the Authority

9 has selected a seed-to-sale system. This requirement

10 for compliance with the seed-to-sale system shall be

11 mandatory for licensees seeking to achieve process

12 validation whether or not compliance with a seed-to-

13 sale system is mandatory for all licensees,

14 c. requiring licensees that are utilizing process

15 validation to use a laboratory that is certified as a

16 certified process validation testing laboratory,

17 d. requiring licensees to record and document retention

18 policies, which at a minimum shall require licensees

19 to retain all documents and records related to process

20 validation. Such records shall be maintained by the

21 licensee for as long as the licensee is continuing to

22 operate under that validated process. Licensees shall

23 retain all such documents and records for at least

24 four (4) years after the licensee has stopped using

Req. No. 3559 Page 384
1 the validated process or after the licensee has made a

2 significant process change to a validated process.

3 Any significant process change to the validated

4 processes of a licensee is subject to the same

5 document retention requirements and shall be retained

6 for as long as the significant process change is part

7 of an ongoing validated process, and for at least four

8 (4) years after the licensee has stopped using the

9 validated process or after the licensee has made a

10 subsequent significant process change to the validated

11 process. The Authority shall promulgate rules for any

12 modifications to the validated processes,

13 e. requiring licensees to keep all records and documents

14 related to their process validation ready and

15 accessible at the address listed on their marijuana

16 business license for inspection or audit by the

17 Authority without any notice from the Authority,

18 f. a process for biannual inspections by the Authority

19 that, at a minimum, includes random testing of

20 products being produced under process validation. The

21 Authority shall be the entity that obtains the random

22 sample during the biannual inspections and shall have

23 access to all products being produced or grown under

Req. No. 3559 Page 385
1 process validation. The Authority shall take samples

2 to the quality assurance laboratory,

3 g. a process to revoke the authority of licensees to

4 operate under process validation,

5 h. punishment for violations of process validation that,

6 at a minimum, would prohibit a licensee from operating

7 under process validation for five (5) years and the

8 assessment of a fine not to exceed Fifty Thousand

9 Dollars ($50,000.00). Any such fine levied against a

10 licensee found to have violated the laws or rules of

11 process validation shall be remitted to the Department

12 of Mental Health and Substance Abuse Services,

13 i. punishment for violations if an adulterated product

14 that was produced under process validation fails

15 testing and the batch or lot has been sold to a

16 dispensary, the first violation shall be the

17 assessment of a fine not to exceed Ten Thousand

18 Dollars ($10,000.00) and a public recall of the

19 product. The licensee shall further be required to

20 revalidate the process. A second violation within two

21 (2) years of a previous violation shall be the

22 assessment of a fine not to exceed Seventy-five

23 Thousand Dollars ($75,000.00) and a public recall of

24 the product. The licensee shall further be prohibited

Req. No. 3559 Page 386
1 from utilizing process validation for a minimum of

2 five (5) years. A third violation within two (2)

3 years of a previous violation shall be the assessment

4 of a fine of Two Hundred Fifty Thousand Dollars

5 ($250,000.00) and a public recall of the product. The

6 licensee shall further be prohibited from utilizing

7 process validation,

8 j. any willful violation of process validation shall

9 result in the assessment of a fine of Two Hundred

10 Fifty Thousand Dollars ($250,000.00) and a license

11 revocation hearing. A second willful violation of

12 process validation shall result in the assessment of a

13 fine of One Million Dollars ($1,000,000.00) and a

14 hearing to permanently revoke the license,

15 k. an annual registration fee of Five Thousand Dollars

16 ($5,000.00) per licensee, in addition to any other

17 fees due by the licensee, to be deposited in the

18 Oklahoma Medical Marijuana Authority Revolving Fund

19 for the enforcement of the laws and regulations of the

20 Authority,

21 l. establishing criteria for eligibility of testing

22 laboratories to be certified as a Certified Process

23 Validation Testing Laboratory and to conduct testing

24 for licensees pursuing or operating under process

Req. No. 3559 Page 387
1 validation. The criteria shall, at a minimum, pass

2 five (5) consecutive blind proficiency tests without a

3 failure over the course of six (6) months. The

4 proficiency tests shall be administered by the quality

5 assurance laboratory,

6 m. punishment for violations by a Certified Process

7 Validation Testing Laboratory that has been found to

8 have been falsifying data, providing misinformation,

9 or any unethical practices related to process

10 validation at a minimum shall prohibit a licensee from

11 operating under process validation for up to twenty-

12 five (25) years and the assessment of a fine not to

13 exceed One Million Dollars ($1,000,000.00). Any such

14 fine levied against a licensee shall be remitted to

15 the Authority for deposit into the Oklahoma Medical

16 Marijuana Authority Revolving Fund. In addition to

17 this fine, in response to a finding of a willful

18 violation of process validation by the Authority, the

19 Authority shall also be authorized to collect, levy,

20 or impose any other fee, fine, penalty, or action as

21 allowed by law, and

22 n. a process to revoke the certification of a testing

23 laboratory that is seeking to be a Certified Process

24 Validation Testing Laboratory;

Req. No. 3559 Page 388
1 3. Controlled access areas for storage of medical marijuana and

2 medical marijuana product test samples, waste and reference
2

3 standards;
3

4 4. Records to be retained and computer systems to be utilized

5 by the laboratory;
5

6 5. The possession, storage and use by the laboratory of

7 reagents, solutions and reference standards;
7

8 6. A certificate of analysis (COA) for each lot of reference

9 standard;
9

10 7. The transport and disposal of unused marijuana, marijuana

11 products and waste;
11

12 8. The mandatory use by a laboratory of an inventory tracking

13 system to ensure all harvest and production batches or samples
13

14 containing medical marijuana, medical marijuana concentrate or
14

15 medical marijuana products are identified and tracked from the point
15

16 they are transferred from a medical marijuana business, a patient or
16

17 a caregiver through the point of transfer, destruction or disposal.
17

18 The inventory tracking system reporting shall include the results of
18

19 any tests that are conducted on medical marijuana, medical marijuana
19

20 concentrate or medical marijuana product;
20

21 9. Standards of performance;

22 10. The employment of laboratory personnel;

23 11. A written standard operating procedure manual to be

24 maintained and updated by the laboratory;
24

Req. No. 3559 Page 389
1 12. The successful participation in a proficiency testing

2 program approved by the Executive Director for each testing category
2

3 listed in this section, in order to obtain and maintain
3

4 certification;
4

5 13. The establishment of and adherence to a quality assurance

6 and quality control program to ensure sufficient monitoring of
6

7 laboratory processes and quality of results reported;
7

8 14. The immediate recall of medical marijuana or medical

9 marijuana products that test above allowable thresholds or are
9

10 otherwise determined to be unsafe;
10

11 15. The establishment by the laboratory of a system to document

12 the complete chain of custody for samples from receipt through
12

13 disposal;
13

14 16. The establishment by the laboratory of a system to retain

15 and maintain all required records, including business records, and
15

16 processes to ensure results are reported in a timely and accurate
16

17 manner; and
17

18 17. Any other aspect of laboratory testing of medical marijuana

19 or medical marijuana product deemed necessary by the Executive
19

20 Director.
20

21 O. A medical marijuana testing laboratory shall promptly

22 provide the Authority or designee of the Authority access to a
22

23 report of a test and any underlying data that is conducted on a
23

24 sample at the request of a medical marijuana business or qualified
24

Req. No. 3559 Page 390
1 patient. A medical marijuana testing laboratory shall also provide
1

2 access to the Authority or designee of the Authority to laboratory
2

3 premises and to any material or information requested by the
3

4 Authority to determine compliance with the requirements of this
4

5 section.
5

6 P. A medical marijuana testing laboratory shall retain all

7 results of laboratory tests conducted on marijuana or products for a
7

8 period of at least seven (7) years and shall make them available to
8

9 the Authority upon request.
9

10 Q. A medical marijuana testing laboratory shall test samples

11 from each final product harvest batch or final product batch, or
11

12 samples consistent with the rules promulgated for process
12

13 validation, as appropriate, of medical marijuana, medical marijuana
13

14 concentrate and medical marijuana product for each of the following
14

15 categories of testing, consistent with standards developed by the
15

16 Executive Director:
16

17 1. Microbials;

18 2. Mycotoxins;

19 3. Residual solvents;

20 4. Pesticides;

21 5. Tetrahydrocannabinol (THC) and other cannabinoid potency;

22 6. Terpenoid type and concentration; and

23 7. Heavy metals.

Req. No. 3559 Page 391
1 R. A licensed medical marijuana testing laboratory shall test

2 each final product batch. A grower shall separate each harvest of
2

3 usable marijuana into final harvest batches containing no more than
3

4 fifteen (15) pounds, with the exception of any plant material to be
4

5 sold to a licensed processor for the purposes of turning the plant
5

6 material into concentrate which may be separated into final harvest
6

7 batches of no more than fifty (50) pounds. A processor shall
7

8 separate each medical marijuana production lot into final production
8

9 batches containing no more than four (4) liters of concentrate or
9

10 nine (9) pounds for nonliquid products, and for final edible
10

11 products, the Oklahoma Medical Marijuana Authority shall be
11

12 authorized to promulgate rules on final products as necessary.
12

13 Provided, however, the Authority shall not require testing of final
13

14 products less often than every one thousand (1,000) grams of THC.
14

15 As used in this subsection, "final edible products" shall include,
15

16 but not be limited to, cookies, brownies, candies, gummies,
16

17 beverages and chocolates.
17

18 S. Medical marijuana testing laboratory licensure shall be

19 contingent upon successful on-site inspection, successful
19

20 participation in proficiency testing and ongoing compliance with the
20

21 applicable requirements in this section.
21

22 T. A medical marijuana testing laboratory shall be inspected

23 prior to initial licensure and up to two (2) times per year
23

24 thereafter by an inspector approved by the Authority. The Authority
24

Req. No. 3559 Page 392
1 may enter the licensed premises of a testing laboratory to conduct
1

2 investigations and additional inspections when the Authority
2

3 believes an investigation or additional inspection is necessary due
3

4 to a possible violation of applicable laws, rules or regulations.
4

5 U. Medical marijuana testing laboratories shall obtain

6 accreditation by an accrediting body approved by the Executive
6

7 Director or the Authority's quality assurance laboratory within one
7

8 (1) year of the date the initial license is issued. Renewal of any
8

9 medical marijuana testing laboratory license shall be contingent
9

10 upon accreditation in accordance with this subsection. All medical
10

11 marijuana testing laboratories shall obtain accreditation prior to
11

12 applying for and receiving a medical marijuana testing laboratory
12

13 license.
13

14 V. Unless authorized by the provisions of this section, a

15 commercial grower shall not transfer or sell medical marijuana and a
15

16 processor shall not transfer, sell or process into a concentrate or
16

17 product any medical marijuana, medical marijuana concentrate or
17

18 medical marijuana product unless samples from each final harvest
18

19 batch or final production batch, or samples consistent with the
19

20 rules promulgated for process validation, from which that medical
20

21 marijuana, medical marijuana concentrate or medical marijuana
21

22 product was derived has been tested by a medical marijuana testing
22

23 laboratory and passed all contaminant tests required by the Oklahoma
23

24 Medical Marijuana and Patient Protection Act and applicable laws,
24

Req. No. 3559 Page 393
1 rules and regulations. A licensed commercial grower may transfer
1

2 medical marijuana that has failed testing to a licensed processor in
2

3 accordance with the provisions of the Oklahoma Medical Marijuana and
3

4 Patient Protection Act and the rules and regulations promulgated by
4

5 the Executive Director.
5

6 W. Kief shall not be transferred or sold except as authorized

7 in the rules and regulations promulgated by the Executive Director.
7

8 X. A licensed commercial grower or licensed processor shall not

9 transfer any product to a licensed medical marijuana dispensary
9

10 until the product has undergone final product testing. Laboratory
10

11 testing that meets all contaminant tests and applicable laws, rules,
11

12 and regulations required by the Oklahoma Medical Marijuana and
12

13 Patient Protection Act shall only be required when the final product
13

14 is completed and prior to transfer to a licensed medical marijuana
14

15 dispensary, licensed medical marijuana patient, or licensed medical
15

16 marijuana caregiver.
16

17 SECTION 115. REPEALER 63 O.S. 2021, Section 427.17, as

18 last amended by Section 142, Chapter 452, O.S.L. 2024 (63 O.S. Supp.
18

19 2025, Section 427.17), is hereby repealed.
19

20 SECTION 116. AMENDATORY 66 O.S. 2021, Section 304, as

21 amended by Section 1, Chapter 31, O.S.L. 2025 (66 O.S. Supp. 2025,
21

22 Section 304), is amended to read as follows:
22

23 Section 304. A. The Department of Transportation is hereby

24 authorized and empowered:
24

Req. No. 3559 Page 394
1 1. To acquire, construct, reconstruct, repair, replace,

2 operate, and maintain railroad rights-of-way and trackage projects
2

3 at such locations and on such routes as it shall determine to be
3

4 feasible and economically sound;
4

5 2. To enter into agreements with the owners of operating

6 railroads for the acquisition or use of railroad rights-of-way and
6

7 trackage on such terms, conditions, rates, or rentals as the
7

8 Department may consider to be in the best interests of the state;
8

9 3. To enter directly into agreements with owners of operating

10 railroads or persons intending to operate as common carriers by rail
10

11 to sell, lease, or sell by lease-purchase agreement any state-owned
11

12 railroad property on such terms, conditions, or amounts as the
12

13 Department may consider to be in the best interests of the state and
13

14 to promote the purposes of the Railroad Revitalization Act. If the
14

15 operator under a lease-purchase agreement exercises the purchase
15

16 option, the purchase shall be subject to the approval of the
16

17 Transportation Commission;
17

18 4. Prior to the sale of any railroad asset owned by this state

19 or the Department of Transportation, a process of request for
19

20 proposal shall be initiated by the Department of Transportation.
20

21 Upon the issue date of a request for proposal regarding the sale of
21

22 any railroad asset owned by this state or the Department of
22

23 Transportation, interested parties will have no less than one
23

24 hundred twenty (120) days to provide a response. Following the
24

Req. No. 3559 Page 395
1 close of the one-hundred-twenty-day response period, the Department
1

2 of Transportation will conduct an evaluation of all submitted
2

3 proposals, and the Department may conduct an economic impact or
3

4 activity study of all proposals. The Director of the Department of
4

5 Transportation shall be responsible for preparing a recommendation
5

6 to the Transportation Commission, based on its evaluation of all
6

7 submitted proposals including, if available, the results of an
7

8 economic impact or activity study, provided the recommendation meets
8

9 all other statutory requirements needed for action by the
9

10 Commission. The Director shall have up to ninety (90) days, upon
10

11 the closing date of the request for proposal, to present his or her
11

12 recommendation to the Transportation Commission. The Transportation
12

13 Commission will be responsible for determining if the sale of
13

14 railroad assets within its jurisdiction is in the best interests of
14

15 this state and for authorizing the sale of such assets. All
15

16 proceeds from the sale shall be deposited into the Oklahoma Railroad
16

17 Maintenance Revolving Fund;
17

18 5. To acquire and hold real or personal property in the

19 exercise of its powers for the performance of its duties as
19

20 authorized by Section 302.1 et seq. of this title. Surplus property
20

21 may be disposed of by the Department;
21

22 6. To acquire in the name of the Department, by purchase or

23 otherwise on such terms and conditions and in such manner as it may
23

24 deem proper, or by exercise of the right of condemnation, such
24

Req. No. 3559 Page 396
1 public or private lands and personalty, including public parks,
1

2 playgrounds, or reservations, or parts thereof or rights therein,
2

3 rights-of-way, trackage, property, rights, easements, and interests
3

4 as it may deem necessary for carrying out the provisions of the
4

5 Railroad Revitalization Act;
5

6 7. To make and enter into all contracts and agreements

7 necessary or incidental to the performance of its duties and the
7

8 execution of its powers under the Railroad Revitalization Act, and
8

9 to employ rail planning and management consultants, consulting
9

10 engineers, attorneys, accountants, construction and financial
10

11 consultants, superintendents, managers, and such other employees and
11

12 agents as may be necessary in its judgment, and to fix their
12

13 compensation; provided, that all such expenses shall be payable
13

14 solely from funds made available under and pursuant to the
14

15 provisions of the Railroad Revitalization Act or from revenues;
15

16 provided further, no attorney employed by the Department, nor any
16

17 member of any law firm of which the member may be connected, shall
17

18 ever be paid any fee or compensation for any special or
18

19 extraordinary services;
19

20 8. To receive, accept, and expend funds from the state, any

21 federal agency, or from private sources, for rail planning and for
21

22 administration of railroad assistance projects, and for or in aid of
22

23 the acquisition, construction, reconstruction, replacement, repair,
23

24 maintenance, and operation of railroad rights-of-way and trackage
24

Req. No. 3559 Page 397
1 and for rail service continuation payments to railroad companies for
1

2 operating losses sustained by reasons of continuing service on a
2

3 line which may otherwise be abandoned or which may experience a
3

4 reduced level of service not in the public interest, where such
4

5 continuation of service is carried out under a written agreement
5

6 with the Department establishing the terms and conditions for such
6

7 payments, and to receive and accept funds, aid or contributions from
7

8 any source of either money, property, labor, or other things of
8

9 value, to be held, used, and applied only for the purposes for which
9

10 such funds, aid, or contributions may be made;
10

11 9. To adopt such rules and to do any and all things necessary

12 to comply with rules, regulations, or requirements of the United
12

13 States Department of Transportation, any successor thereof, the
13

14 Surface Transportation Board or any federal agency administering any
14

15 law enacted by the United States Congress or having funds available
15

16 for the purpose of the Department that are not inconsistent with or
16

17 contrary to the prohibitions and restrictions of Oklahoma law or
17

18 public interest;
18

19 10. To expend, not to exceed twenty percent (20%) of the funds

20 available in the Oklahoma Railroad Maintenance Revolving Fund during
20

21 any one (1) year, at locations approved by the Corporation
21

22 Commission, such Oklahoma Railroad Maintenance Revolving Fund monies
22

23 as may be budgeted by the Department of Transportation for the
23

24 purposes of installing signal lights, gate arms, or other active
24

Req. No. 3559 Page 398
1 warning devices where any public road, street, or highway crosses a
1

2 railroad right-of-way; provided, however, nothing in the Railroad
2

3 Revitalization Act shall negate, change, or otherwise modify any
3

4 existing statutory or common law duty of a railroad company;
4

5 11. To expend income and funds from the Oklahoma Railroad

6 Maintenance Revolving Fund in the exercise of any or all of the
6

7 foregoing powers; and
7

8 12. To do all things necessary or convenient to carry out the

9 powers expressly granted in Section 302.1 et seq. of this title.
9

10 B. It shall be unlawful for any member, officer, or employee of

11 the Department to transact with the Department, either directly or
11

12 indirectly, any business for profit of such member, officer, or
12

13 employee; and any person, firm, or corporation knowingly
13

14 participating therein shall be equally liable for a violation of
14

15 this provision.
15

16 The term "business for profit" shall include, but not be limited

17 to, the acceptance or payment of any fee, commission, gift, or
17

18 consideration to such member, officer, or employee.
18

19 Violation of this provision shall constitute a Class D1 felony

20 offense and upon conviction shall be punishable by incarceration in
20

21 the Oklahoma State Penitentiary for a term not to exceed five (5)
21

22 years as provided for in subsections B through F of Section 20N of
22

23 Title 21 of the Oklahoma Statutes, or by a fine not less than Five
23

Req. No. 3559 Page 399
1 Hundred Dollars ($500.00) and not more than Five Thousand Dollars
1

2 ($5,000.00), or by both such imprisonment and fine.
2

3 C. All meetings of the Department shall be open public

4 meetings, and all records shall be public records, except when
4

5 considering personnel.
5

6 SECTION 117. REPEALER 66 O.S. 2021, Section 304, as

7 amended by Section 556, Chapter 486, O.S.L. 2025 (66 O.S. Supp.
7

8 2025, Section 304), is hereby repealed.
8

9 SECTION 118. AMENDATORY 68 O.S. 2021, Section 1353, as

10 last amended by Section 4, Chapter 441, O.S.L. 2024 (68 O.S. Supp.
10

11 2025, Section 1353), is amended to read as follows:
11

12 Section 1353. A. It is hereby declared to be the purpose of

13 the Oklahoma Sales Tax Code to provide funds for the financing of
13

14 the program provided for by the Oklahoma Social Security Act and to
14

15 provide revenues for the support of the functions of the state
15

16 government of Oklahoma, and for this purpose it is hereby expressly
16

17 provided that, revenues derived pursuant to the provisions of the
17

18 Oklahoma Sales Tax Code, subject to the apportionment requirements
18

19 for the Oklahoma Tax Commission and Office of Management and
19

20 Enterprise Services Joint Computer Enhancement Fund provided by
20

21 Section 265 of this title, and further subject to the apportionment
21

22 requirement provided in subsection D of this section, shall be
22

23 apportioned as follows:
23

Req. No. 3559 Page 400
1 1. Except as provided in subsection C, D, and E of this

2 section, the following amounts shall be paid to the State Treasurer
2

3 to be placed to the credit of the General Revenue Fund to be paid
3

4 out pursuant to direct appropriation by the Legislature:
4

5 Fiscal Year Amount

6 FY 2003 and FY 2004 86.04%

7 FY 2005 85.83%

8 FY 2006 85.54%

9 FY 2007 85.04%

10 FY 2008 through FY 2022 83.61%

11 FY 2023 through FY 2027 83.36%

12 FY 2028 and each fiscal year thereafter 83.61%;

13 2. The following amounts shall be paid to the State Treasurer

14 to be placed to the credit of the Education Reform Revolving Fund of
14

15 the State Department of Education:
15

16 a. for FY 2003, FY 2004 and FY 2005, ten and forty-two

17 one-hundredths percent (10.42%),

18 b. for FY 2006 through FY 2020, ten and forty-six one-

19 hundredths percent (10.46%),

20 c. for FY 2021:

21 (1) for the month beginning July 1, 2020, through the

22 month ending August 31, 2020, ten and forty-six

23 one-hundredths percent (10.46%), and

Req. No. 3559 Page 401
1 (2) for the month beginning September 1, 2020,

2 through the month ending June 30, 2021, eleven

3 and ninety-six one-hundredths percent (11.96%),

4 d. for FY 2022 and each fiscal year thereafter, ten and

5 forty-six one-hundredths percent (10.46%);

6 3. The following amounts shall be paid to the State Treasurer

7 to be placed to the credit of the Teachers' Retirement System
7

8 Dedicated Revenue Revolving Fund:
8

9 Fiscal Year Amount

10 FY 2003 and FY 2004 3.54%

11 FY 2005 3.75%

12 FY 2006 4.0%

13 FY 2007 4.5%

14 FY 2008 through FY 2020 5.0%

15 FY 2021:

16 a. for the month beginning July

17 1, 2020, through the month

18 ending August 31, 2020 5.0%

19 b. for the month beginning

20 September 1, 2020, through

21 the month ending June 30,

22 2021 3.5%

23 FY 2022 5.0%

24 FY 2023 through FY 2027 5.25%

Req. No. 3559 Page 402
1 FY 2028 and each fiscal year thereafter 5.0%;

2 4. a. except as otherwise provided in subparagraph b of this

3 paragraph, for the fiscal year beginning July 1, 2022,

4 and for each fiscal year thereafter, eighty-seven one-

5 hundredths percent (0.87%) shall be paid to the State

6 Treasurer to be further apportioned as follows:

7 (1) twenty-four percent (24%) shall be placed to the

8 credit of the Oklahoma Tourism Promotion

9 Revolving Fund, but in no event shall such

10 apportionment exceed Five Million Dollars

11 ($5,000,000.00) in any fiscal year,

12 (2) forty-four percent (44%) shall be placed to the

13 credit of the Oklahoma Tourism Capital

14 Improvement Revolving Fund, but in no event shall

15 such apportionment exceed Nine Million Dollars

16 ($9,000,000.00) in any fiscal year, and

17 (3) thirty-two percent (32%) shall be placed to the

18 credit of the Oklahoma Route 66 Commission

19 Revolving Fund, but in no event shall such

20 apportionment exceed Six Million Six Hundred

21 Thousand Dollars ($6,600,000.00) in any fiscal

22 year, and

Req. No. 3559 Page 403
1 b. any amounts which exceed the limitations of

2 subparagraph a of this paragraph shall be placed to

3 the credit of the General Revenue Fund; and

4 5. For the fiscal year beginning July 1, 2015, and for each

5 fiscal year thereafter, six one-hundredths percent (0.06%) shall be
5

6 placed to the credit of the Oklahoma Historical Society Capital
6

7 Improvement and Operations Revolving Fund, but in no event shall
7

8 such apportionment exceed the total amount apportioned pursuant to
8

9 this paragraph for the fiscal year ending on June 30, 2015. Any
9

10 amounts which exceed the limitations of this paragraph shall be
10

11 placed to the credit of the General Revenue Fund.
11

12 B. Provided, for the fiscal year beginning July 1, 2007, and

13 every fiscal year thereafter, an amount of revenue shall be
13

14 apportioned to each municipality or county which levies a sales tax
14

15 subject to the provisions of Section 1357.10 of this title and
15

16 subsection F of Section 2701 of this title equal to the amount of
16

17 sales tax revenue of such municipality or county exempted by the
17

18 provisions of Section 1357.10 of this title and subsection F of
18

19 Section 2701 of this title. The Oklahoma Tax Commission shall
19

20 promulgate and adopt rules necessary to implement the provisions of
20

21 this subsection.
21

22 C. From the monies that would otherwise be apportioned to the

23 General Revenue Fund pursuant to subsection A of this section, there
23

24 shall be apportioned the following amounts:
24

Req. No. 3559 Page 404
1 1. For the month ending August 31, 2019:

2 a. Nine Million Six Hundred Thousand Dollars

3 ($9,600,000.00) to the credit of the State Highway

4 Construction and Maintenance Fund created in Section

5 1501 of Title 69 of the Oklahoma Statutes, and

6 b. Two Million Dollars ($2,000,000.00) to the credit of

7 the Oklahoma Railroad Maintenance Revolving Fund

8 created in Section 309 of Title 66 of the Oklahoma

9 Statutes;

10 2. For the month ending September 30, 2019:

11 a. Twenty Million Dollars ($20,000,000.00) to the credit

12 of the State Highway Construction and Maintenance Fund

13 created in Section 1501 of Title 69 of the Oklahoma

14 Statutes, and

15 b. Two Million Dollars ($2,000,000.00) to the credit of

16 the Oklahoma Railroad Maintenance Revolving Fund

17 created in Section 309 of Title 66 of the Oklahoma

18 Statutes;

19 3. For the month ending October 31, 2019:

20 a. Twenty Million Dollars ($20,000,000.00) to the credit

21 of the State Highway Construction and Maintenance Fund

22 created in Section 1501 of Title 69 of the Oklahoma

23 Statutes, and

Req. No. 3559 Page 405
1 b. Two Million Dollars ($2,000,000.00) to the credit of

2 the Oklahoma Railroad Maintenance Revolving Fund

3 created in Section 309 of Title 66 of the Oklahoma

4 Statutes;

5 4. For the month ending November 30, 2019:

6 a. Twenty Million Dollars ($20,000,000.00) to the credit

7 of the State Highway Construction and Maintenance Fund

8 created in Section 1501 of Title 69 of the Oklahoma

9 Statutes, and

10 b. Two Million Dollars ($2,000,000.00) to the credit of

11 the Oklahoma Railroad Maintenance Revolving Fund

12 created in Section 309 of Title 66 of the Oklahoma

13 Statutes; and

14 5. For the month ending December 31, 2019:

15 a. Twenty Million Dollars ($20,000,000.00) to the credit

16 of the State Highway Construction and Maintenance Fund

17 created in Section 1501 of Title 69 of the Oklahoma

18 Statutes, and

19 b. Two Million Dollars ($2,000,000.00) to the credit of

20 the Oklahoma Railroad Maintenance Revolving Fund

21 created in Section 309 of Title 66 of the Oklahoma

22 Statutes.

23 D. For fiscal year 2029, and each subsequent fiscal year, Fifty

24 Million Dollars ($50,000,000.00) shall be placed to the credit of
24

Req. No. 3559 Page 406
1 the Oklahoma Capital Assets Maintenance and Protection Fund created
1

2 in Section 2 of this act.
2

3 E. For the fiscal year ending June 30, 2023, and for each

4 fiscal year thereafter, after the apportionment required by
4

5 subsection D of this section, but before any other apportionment to
5

6 the General Revenue Fund is made, there shall be apportioned to the
6

7 Municipal Road Drilling Activity Revolving Fund created pursuant to
7

8 Section 37-501 of Title 11 of the Oklahoma Statutes the amount of
8

9 Five Million Dollars ($5,000,000.00) for use by municipalities to
9

10 repair roads as prescribed pursuant to the requirements of Section
10

11 37-501 of Title 11 of the Oklahoma Statutes.
11

12 SECTION 119. REPEALER 68 O.S. 2021, Section 1353, as

13 amended by Section 1, Chapter 240, O.S.L. 2022 (68 O.S. Supp. 2025,
13

14 Section 1353), is hereby repealed.
14

15 SECTION 120. AMENDATORY 68 O.S. 2021, Section 1356, as

16 last amended by Section 1, Chapter 392, O.S.L. 2025 (68 O.S. Supp.
16

17 2025, Section 1356), is amended to read as follows:
17

18 Section 1356. Exemptions - Governmental and nonprofit entities.

19 There are hereby specifically exempted from the tax levied by

20 Section 1350 et seq. of this title:
20

21 1. Sale Sales of tangible personal property or services to the

22 United States government or to this state, any political subdivision
22

23 of this state, or any agency of a political subdivision of this
23

24 state; provided, all sales to contractors in connection with the
24

Req. No. 3559 Page 407
1 performance of any contract with the United States government, this
1

2 state, or any of its political subdivisions shall not be exempted
2

3 from the tax levied by Section 1350 et seq. of this title, except as
3

4 hereinafter provided;
4

5 2. Sales of property to agents appointed by or under contract

6 with agencies or instrumentalities of the United States government
6

7 if ownership and possession of such property transfers immediately
7

8 to the United States government;
8

9 3. Sales of property to agents appointed by or under contract

10 with a political subdivision of this state if the sale of such
10

11 property is associated with the development of a qualified federal
11

12 facility, as provided in the Oklahoma Federal Facilities Development
12

13 Act, and if ownership and possession of such property transfers
13

14 immediately to the political subdivision or the state;
14

15 4. Sales made directly by county, district, or state fair

16 authorities of this state, upon the premises of the fair authority,
16

17 for the sole benefit of the fair authority or sales of admission
17

18 tickets to such fairs or fair events at any location in the state
18

19 authorized by county, district, or state fair authorities; provided,
19

20 the exemption provided by this paragraph for admission tickets to
20

21 fair events shall apply only to any portion of the admission price
21

22 that is retained by or distributed to the fair authority. As used
22

23 in this paragraph, "fair event" shall be limited to an event held on
23

Req. No. 3559 Page 408
1 the premises of the fair authority in conjunction with and during
1

2 the time period of a county, district, or state fair;
2

3 5. Sale Sales of food in cafeterias or lunchrooms of elementary

4 schools, high schools, colleges, or universities which are operated
4

5 primarily for teachers and pupils and are not operated primarily for
5

6 the public or for profit;
6

7 6. Dues paid to fraternal, religious, civic, charitable, or

8 educational societies or organizations by regular members thereof,
8

9 provided, such societies or organizations operate under what is
9

10 commonly termed the lodge plan or system, and provided such
10

11 societies or organizations do not operate for a profit which inures
11

12 to the benefit of any individual member or members thereof to the
12

13 exclusion of other members and dues paid monthly or annually to
13

14 privately owned scientific and educational libraries by members
14

15 sharing the use of services rendered by such libraries with students
15

16 interested in the study of geology, petroleum engineering, or
16

17 related subjects;
17

18 7. Sale Sales of tangible personal property or services to or

19 by churches, except sales made in the course of business for profit
19

20 or savings, competing with other persons engaged in the same, or a
20

21 similar business or sale sales of tangible personal property or
21

22 services by an organization exempt from federal income tax pursuant
22

23 to Section 501(c)(3) of the Internal Revenue Code of 1986, as
23

24 amended, made on behalf of or at the request of a church or churches
24

Req. No. 3559 Page 409
1 if the sale of such property is conducted not more than once each
1

2 calendar year for a period not to exceed three (3) days by the
2

3 organization and proceeds from the sale of such property are used by
3

4 the church or churches or by the organization for charitable
4

5 purposes;
5

6 8. The amount of proceeds received from the sale sales of

7 admission tickets which is separately stated on the ticket of
7

8 admission for the repayment of money borrowed by any accredited
8

9 state-supported college or university or any public trust of which a
9

10 county in this state is the beneficiary, for the purpose of
10

11 constructing or enlarging any facility to be used for the staging of
11

12 an athletic event, a theatrical production, or any other form of
12

13 entertainment, edification or cultural cultivation to which entry is
13

14 gained with a paid admission ticket. Such facilities include, but
14

15 are not limited to, athletic fields, athletic stadiums, field
15

16 houses, amphitheaters, and theaters. To be eligible for this sales
16

17 tax exemption, the amount separately stated on the admission ticket
17

18 shall be a surcharge which is imposed, collected, and used for the
18

19 sole purpose of servicing or aiding in the servicing of debt
19

20 incurred by the college or university to effect the capital
20

21 improvements hereinbefore described;
21

22 9. Sales of tangible personal property or services to the

23 council organizations or similar state supervisory organizations of
23

24 the Boy Scouts of America, Girl Scouts of the U.S.A., and Camp Fire;
24

Req. No. 3559 Page 410
1 10. Sale Sales of tangible personal property or services to any

2 county, municipality, rural water district, public school district,
2

3 city-county library system, the institutions of The Oklahoma State
3

4 System of Higher Education, the Grand River Dam Authority, the
4

5 Northeast Oklahoma Public Facilities Authority, the Oklahoma
5

6 Municipal Power Authority, City of Tulsa-Rogers County Port
6

7 Authority, Muskogee City-County Port Authority, the Oklahoma
7

8 Department of Veterans Affairs, the Broken Bow Economic Development
8

9 Authority, Ardmore Development Authority, Durant Industrial
9

10 Authority, Oklahoma Ordnance Works Authority, Central Oklahoma
10

11 Master Conservancy District, Arbuckle Master Conservancy District,
11

12 Fort Cobb Reservoir Master Conservancy District, Foss Reservoir
12

13 Master Conservancy District, Mountain Park Master Conservancy
13

14 District, Waurika Lake Master Conservancy District and the Office of
14

15 Management and Enterprise Services only when carrying out a public
15

16 construction contract on behalf of the Oklahoma Department of
16

17 Veterans Affairs, the Oklahoma State University Medical Authority
17

18 and Trust, the Oklahoma State University Veterinary Medicine
18

19 Authority and Trust, and effective July 1, 2022, the University
19

20 Hospitals Trust, or to any person with whom any of the above-named
20

21 subdivisions or agencies of this state has duly entered into a
21

22 public contract pursuant to law, necessary for carrying out such
22

23 public contract or to any subcontractor to such a public contract.
23

24 Any person making purchases on behalf of such subdivision or agency
24

Req. No. 3559 Page 411
1 of this state shall certify, in writing, on the copy of the invoice
1

2 or sales ticket to be retained by the vendor that the purchases are
2

3 made for and on behalf of such subdivision or agency of this state
3

4 and set out the name of such public subdivision or agency. Any
4

5 person who wrongfully or erroneously certifies that purchases are
5

6 for any of the above-named subdivisions or agencies of this state or
6

7 who otherwise violates this section shall be guilty of a misdemeanor
7

8 and upon conviction thereof shall be fined an amount equal to double
8

9 the amount of sales tax involved or incarcerated for not more than
9

10 sixty (60) days or both;
10

11 11. Sales of tangible personal property or services to private

12 institutions of higher education and private elementary and
12

13 secondary institutions of education accredited by the State
13

14 Department of Education or registered by the State Board of
14

15 Education for purposes of participating in federal programs or
15

16 accredited as defined by the Oklahoma State Regents for Higher
16

17 Education which are exempt from taxation pursuant to the provisions
17

18 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
18

19 501(c)(3) including materials, supplies, and equipment used in the
19

20 construction and improvement of buildings and other structures owned
20

21 by the institutions and operated for educational purposes.
21

22 Any person, firm, agency, or entity making purchases on behalf

23 of any institution, agency or subdivision in this state, shall
23

24 certify in writing, on the copy of the invoice or sales ticket the
24

Req. No. 3559 Page 412
1 nature of the purchases, and violation of this paragraph shall be a
1

2 misdemeanor as set forth in paragraph 10 of this section;
2

3 12. Tuition and educational fees paid to private institutions

4 of higher education and private elementary and secondary
4

5 institutions of education accredited by the State Department of
5

6 Education or registered by the State Board of Education for purposes
6

7 of participating in federal programs or accredited as defined by the
7

8 Oklahoma State Regents for Higher Education which are exempt from
8

9 taxation pursuant to the provisions of the Internal Revenue Code of
9

10 1986, as amended, 26 U.S.C., Section 501(c)(3);
10

11 13. a. Sales of tangible personal property made by:

12 (1) a public school,

13 (2) a private school offering instruction for grade

14 levels kindergarten through twelfth grade,

15 (3) a public school district,

16 (4) a public or private school board,

17 (5) a public or private school student group or

18 organization,

19 (6) a parent-teacher association or organization

20 other than as specified in subparagraph b of this

21 paragraph, or

22 (7) public or private school personnel for purposes

23 of raising funds for the benefit of a public or

24 private school, public school district, public or

Req. No. 3559 Page 413
1 private school board, or public or private school

2 student group or organization, or

3 b. Sales of tangible personal property made by or to

4 nonprofit parent-teacher associations or organizations

5 exempt from taxation pursuant to the provisions of the

6 Internal Revenue Code of 1986, as amended, 26 U.S.C.,

7 Section 501(c)(3), nonprofit local public or private

8 school foundations which solicit money or property in

9 the name of any public or private school or public

10 school district.

11 The exemption provided by this paragraph for sales made by a

12 public or private school shall be limited to those public or private
12

13 schools accredited by the State Department of Education or
13

14 registered by the State Board of Education for purposes of
14

15 participating in federal programs. Sale Sales of tangible personal
15

16 property in this paragraph shall include sale sales of admission
16

17 tickets and concessions at athletic events;
17

18 14. Sales of tangible personal property by:

19 a. local 4-H clubs,

20 b. county, regional or state 4-H councils,

21 c. county, regional or state 4-H committees,

22 d. 4-H leader associations,

23 e. county, regional or state 4-H foundations, and

24 f. authorized 4-H camps and training centers.

Req. No. 3559 Page 414
1 The exemption provided by this paragraph shall be limited to

2 sales for the purpose of raising funds for the benefit of such
2

3 organizations. Sale Sales of tangible personal property exempted by
3

4 this paragraph shall include sale sales of admission tickets;
4

5 15. The first Seventy-five Thousand Dollars ($75,000.00) each

6 year from sale sales of tickets and concessions at athletic events
6

7 by each organization exempt from taxation pursuant to the provisions
7

8 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
8

9 501(c)(4);
9

10 16. Sales of tangible personal property or services to any

11 person with whom the Oklahoma Tourism and Recreation Department has
11

12 entered into a public contract and which is necessary for carrying
12

13 out such contract to assist the Department in the development and
13

14 production of advertising, promotion, publicity, and public
14

15 relations programs;
15

16 17. Sales of tangible personal property or services to fire

17 departments organized pursuant to Section 592 of Title 18 of the
17

18 Oklahoma Statutes, which items are to be used for the purposes of
18

19 the fire department. Any person making purchases on behalf of any
19

20 such fire department shall certify, in writing, on the copy of the
20

21 invoice or sales ticket to be retained by the vendor that the
21

22 purchases are made for and on behalf of such fire department and set
22

23 out the name of such fire department. Any person who wrongfully or
23

24 erroneously certifies that the purchases are for any such fire
24

Req. No. 3559 Page 415
1 department or who otherwise violates the provisions of this section
1

2 shall be deemed guilty of a misdemeanor and upon conviction thereof,
2

3 shall be fined an amount equal to double the amount of sales tax
3

4 involved or incarcerated for not more than sixty (60) days, or both;
4

5 18. Complimentary or free tickets for admission to places of

6 amusement, sports, entertainment, exhibition, display, or other
6

7 recreational events or activities which are issued through a box
7

8 office or other entity which is operated by a state institution of
8

9 higher education with institutional employees or by a municipality
9

10 with municipal employees;
10

11 19. The first Fifteen Thousand Dollars ($15,000.00) each year

12 from sales of tangible personal property by fire departments
12

13 organized pursuant to Title 11, 18, or 19 of the Oklahoma Statutes
13

14 for the purposes of raising funds for the benefit of the fire
14

15 department. Fire departments selling tangible personal property for
15

16 the purposes of raising funds shall be limited to no more than six
16

17 (6) days each year to raise such funds in order to receive the
17

18 exemption granted by this paragraph;
18

19 20. Sales of tangible personal property or services to any Boys

20 & Girls Clubs of America affiliate in this state which is not
20

21 affiliated with the Salvation Army and which is exempt from taxation
21

22 pursuant to the provisions of the Internal Revenue Code of 1986, as
22

23 amended, 26 U.S.C., Section 501(c)(3);
23

Req. No. 3559 Page 416
1 21. Sales of tangible personal property or services to any

2 organization, which takes court-adjudicated juveniles for purposes
2

3 of rehabilitation, and which is exempt from taxation pursuant to the
3

4 provisions of the Internal Revenue Code of 1986, as amended, 26
4

5 U.S.C., Section 501(c)(3), provided that at least fifty percent
5

6 (50%) of the juveniles served by such organization are court
6

7 adjudicated and the organization receives state funds in an amount
7

8 less than ten percent (10%) of the annual budget of the
8

9 organization;
9

10 22. Sales of tangible personal property or services to:

11 a. any health center as defined in Section 254b of Title

12 42 of the United States Code,

13 b. any clinic receiving disbursements of state monies

14 from the Indigent Health Care Revolving Fund pursuant

15 to the provisions of Section 66 of Title 56 of the

16 Oklahoma Statutes,

17 c. any community-based health center which meets all of

18 the following criteria:

19 (1) provides primary care services at no cost to the

20 recipient, and

21 (2) is exempt from taxation pursuant to the

22 provisions of Section 501(c)(3) of the Internal

23 Revenue Code of 1986, as amended, 26 U.S.C.,

24 Section 501(c)(3), and

Req. No. 3559 Page 417
1 d. any community mental health center as defined in

2 Section 3-302 of Title 43A of the Oklahoma Statutes;

3 23. Dues or fees including free or complimentary dues or fees

4 which have a value equivalent to the charge that could have
4

5 otherwise been made, to YMCAs, YWCAs, or municipally-owned
5

6 recreation centers for the use of facilities and programs;
6

7 24. The first Fifteen Thousand Dollars ($15,000.00) each year

8 from sales of tangible personal property or services to or by a
8

9 cultural organization established to sponsor and promote
9

10 educational, charitable, and cultural events for disadvantaged
10

11 children, and which organization is exempt from taxation pursuant to
11

12 the provisions of the Internal Revenue Code of 1986, as amended, 26
12

13 U.S.C., Section 501(c)(3);
13

14 25. Sales of tangible personal property or services to museums

15 or other entities which have been accredited by the American
15

16 Alliance of Museums. Any person making purchases on behalf of any
16

17 such museum or other entity shall certify, in writing, on the copy
17

18 of the invoice or sales ticket to be retained by the vendor that the
18

19 purchases are made for and on behalf of such museum or other entity
19

20 and set out the name of such museum or other entity. Any person who
20

21 wrongfully or erroneously certifies that the purchases are for any
21

22 such museum or other entity or who otherwise violates the provisions
22

23 of this paragraph shall be deemed guilty of a misdemeanor and, upon
23

24 conviction thereof, shall be fined an amount equal to double the
24

Req. No. 3559 Page 418
1 amount of sales tax involved or incarcerated for not more than sixty
1

2 (60) days, or by both such fine and incarceration;
2

3 26. Sales of tickets for admission by any museum accredited by

4 the American Alliance of Museums. In order to be eligible for the
4

5 exemption provided by this paragraph, an amount equivalent to the
5

6 amount of the tax which would otherwise be required to be collected
6

7 pursuant to the provisions of Section 1350 et seq. of this title
7

8 shall be separately stated on the admission ticket and shall be
8

9 collected and used for the sole purpose of servicing or aiding in
9

10 the servicing of debt incurred by the museum to effect the
10

11 construction, enlarging or renovation of any facility to be used for
11

12 entertainment, edification, or cultural cultivation to which entry
12

13 is gained with a paid admission ticket;
13

14 27. Sales of tangible personal property or services occurring

15 on or after June 1, 1995, to children's homes which are supported or
15

16 sponsored by one or more churches, members of which serve as
16

17 trustees of the home;
17

18 28. Sales of tangible personal property or services to the

19 organization known as the Disabled American Veterans, Department of
19

20 Oklahoma, Inc., and subordinate chapters thereof;
20

21 29. Sales of tangible personal property or services to youth

22 camps which are supported or sponsored by one or more churches,
22

23 members of which serve as trustees of the organization;
23

Req. No. 3559 Page 419
1 30. a. Until July 1, 2022, transfer of tangible personal

2 property made pursuant to Section 3226 of Title 63 of

3 the Oklahoma Statutes by the University Hospitals

4 Trust, and

5 b. Effective July 1, 2022, transfer of tangible personal

6 property or services to or by:

7 (1) the University Hospitals Trust created pursuant

8 to Section 3224 of Title 63 of the Oklahoma

9 Statutes, or

10 (2) nonprofit entities which are exempt from taxation

11 pursuant to the provisions of the Internal

12 Revenue Code of 1986, as amended, of the United

13 States, 26 U.S.C., Section 501(c)(3), which have

14 entered into a joint operating agreement with the

15 University Hospitals Trust;

16 31. Sales of tangible personal property or services to a

17 municipality, county, or school district pursuant to a lease or
17

18 lease-purchase agreement executed between the vendor and a
18

19 municipality, county, or school district. A copy of the lease or
19

20 lease-purchase agreement shall be retained by the vendor;
20

21 32. Sales of tangible personal property or services to any

22 spaceport user, as defined in the Oklahoma Space Industry
22

23 Development Act;
23

Req. No. 3559 Page 420
1 33. The sale, use, storage, consumption, or distribution in

2 this state, whether by the importer, exporter, or another person, of
2

3 any satellite or any associated launch vehicle including components
3

4 of, and parts and motors for, any such satellite or launch vehicle,
4

5 imported or caused to be imported into this state for the purpose of
5

6 export by means of launching into space. This exemption provided by
6

7 this paragraph shall not be affected by:
7

8 a. the destruction in whole or in part of the satellite

9 or launch vehicle,

10 b. the failure of a launch to occur or be successful, or

11 c. the absence of any transfer or title to, or possession

12 of, the satellite or launch vehicle after launch;

13 34. The sale, lease, use, storage, consumption, or distribution

14 in this state of any space facility, space propulsion system or
14

15 space vehicle, satellite, or station of any kind possessing space
15

16 flight capacity including components thereof;
16

17 35. The sale, lease, use, storage, consumption, or distribution

18 in this state of tangible personal property, placed on or used
18

19 aboard any space facility, space propulsion system or space vehicle,
19

20 satellite, or station possessing space flight capacity, which is
20

21 launched into space, irrespective of whether such tangible property
21

22 is returned to this state for subsequent use, storage, or
22

23 consumption in any manner;
23

Req. No. 3559 Page 421
1 36. The sale, lease, use, storage, consumption, or distribution

2 in this state of tangible personal property meeting the definition
2

3 of "section 38 property" as defined in Sections 48(a)(1)(A) and
3

4 (B)(i) of the Internal Revenue Code of 1986, as amended, that is an
4

5 integral part of and used primarily in support of space flight;
5

6 however, section 38 property used in support of space flight shall
6

7 not include general office equipment, any boat, mobile home, motor
7

8 vehicle, or other vehicle of a class or type required to be
8

9 registered, licensed, titled or documented in this state or by the
9

10 United States government, or any other property not specifically
10

11 suited to supporting space activity. The term "in support of space
11

12 flight", for purposes of this paragraph, means the altering,
12

13 monitoring, controlling, regulating, adjusting, servicing, or
13

14 repairing of any space facility, space propulsion systems or space
14

15 vehicle, satellite, or station possessing space flight capacity
15

16 including the components thereof;
16

17 37. The purchase or lease of machinery and equipment for use at

18 a fixed location in this state, which is used exclusively in the
18

19 manufacturing, processing, compounding, or producing of any space
19

20 facility, space propulsion system or space vehicle, satellite, or
20

21 station of any kind possessing space flight capacity. Provided, the
21

22 exemption provided for in this paragraph shall not be allowed unless
22

23 the purchaser or lessee signs an affidavit stating that the item or
23

24 items to be exempted are for the exclusive use designated herein.
24

Req. No. 3559 Page 422
1 Any person furnishing a false affidavit to the vendor for the
1

2 purpose of evading payment of any tax imposed by Section 1354 of
2

3 this title shall be subject to the penalties provided by law. As
3

4 used in this paragraph, "machinery and equipment" means "section 38
4

5 property" as defined in Sections 48(a)(1)(A) and (B)(i) of the
5

6 Internal Revenue Code of 1986, as amended, which is used as an
6

7 integral part of the manufacturing, processing, compounding, or
7

8 producing of items of tangible personal property. Such term
8

9 includes parts and accessories only to the extent that the exemption
9

10 thereof is consistent with the provisions of this paragraph;
10

11 38. The amount of a surcharge or any other amount which is

12 separately stated on an admission ticket which is imposed, collected
12

13 and used for the sole purpose of constructing, remodeling, or
13

14 enlarging facilities of a public trust having a municipality or
14

15 county as its sole beneficiary;
15

16 39. Sales of tangible personal property or services which are

17 directly used in or for the benefit of a state park in this state,
17

18 which are made to an organization which is exempt from taxation
18

19 pursuant to the provisions of the Internal Revenue Code of 1986, as
19

20 amended, 26 U.S.C., Section 501(c)(3) and which is organized
20

21 primarily for the purpose of supporting one or more state parks
21

22 located in this state;
22

23 40. The sale, lease, or use of parking privileges by an

24 institution of The Oklahoma State System of Higher Education;
24

Req. No. 3559 Page 423
1 41. Sales of tangible personal property or services for use on

2 campus or school construction projects for the benefit of
2

3 institutions of The Oklahoma State System of Higher Education,
3

4 private institutions of higher education accredited by the Oklahoma
4

5 State Regents for Higher Education, or any public school or school
5

6 district when such projects are financed by or through the use of
6

7 nonprofit entities which are exempt from taxation pursuant to the
7

8 provisions of the Internal Revenue Code of 1986, as amended, 26
8

9 U.S.C., Section 501(c)(3);
9

10 42. Sales of tangible personal property or services by an

11 organization which is exempt from taxation pursuant to the
11

12 provisions of the Internal Revenue Code of 1986, as amended, 26
12

13 U.S.C., Section 501(c)(3), in the course of conducting a national
13

14 championship sports event, but only if all or a portion of the
14

15 payment in exchange therefor would qualify as the receipt of a
15

16 qualified sponsorship payment described in Internal Revenue Code of
16

17 1986, as amended, 26 U.S.C., Section 513(i). Sales exempted
17

18 pursuant to this paragraph shall be exempt from all Oklahoma sales,
18

19 use, excise, and gross receipts taxes;
19

20 43. Sales of tangible personal property or services to or by an

21 organization which:
21

22 a. is exempt from taxation pursuant to the provisions of

23 the Internal Revenue Code of 1986, as amended, 26

24 U.S.C., Section 501(c)(3),

Req. No. 3559 Page 424
1 b. is affiliated with a comprehensive university within

2 The Oklahoma State System of Higher Education, and

3 c. has been organized primarily for the purpose of

4 providing education and teacher training and

5 conducting events relating to robotics;

6 44. The first Fifteen Thousand Dollars ($15,000.00) each year

7 from sales of tangible personal property to or by youth athletic
7

8 teams which are part of an athletic organization exempt from
8

9 taxation pursuant to the provisions of the Internal Revenue Code of
9

10 1986, as amended, 26 U.S.C., Section 501(c)(4), for the purposes of
10

11 raising funds for the benefit of the team;
11

12 45. Sales of tickets for admission to a collegiate athletic

13 event that is held in a facility owned or operated by a municipality
13

14 or a public trust of which the municipality is the sole beneficiary
14

15 and that actually determines or is part of a tournament or
15

16 tournament process for determining a conference tournament
16

17 championship, a conference championship, or a national championship;
17

18 46. Sales of tangible personal property or services to or by an

19 organization which is exempt from taxation pursuant to the
19

20 provisions of the Internal Revenue Code of 1986, as amended, 26
20

21 U.S.C., Section 501(c)(3) and is operating the Oklahoma City
21

22 National Memorial and Museum, an affiliate of the National Park
22

23 System;
23

Req. No. 3559 Page 425
1 47. Sales of tangible personal property or services to

2 organizations which are exempt from federal taxation pursuant to the
2

3 provisions of Section 501(c)(3) of the Internal Revenue Code of
3

4 1986, as amended, 26 U.S.C., Section 501(c)(3), the memberships of
4

5 which are limited to honorably discharged veterans, and which
5

6 furnish financial support to area veterans' organizations to be used
6

7 for the purpose of constructing a memorial or museum;
7

8 48. Sales of tangible personal property or services on or after

9 January 1, 2003, to an organization which is exempt from taxation
9

10 pursuant to the provisions of the Internal Revenue Code of 1986, as
10

11 amended, 26 U.S.C., Section 501(c)(3) that is expending monies
11

12 received from a private foundation grant in conjunction with
12

13 expenditures of local sales tax revenue to construct a local public
13

14 library;
14

15 49. Sales of tangible personal property or services to a state

16 that borders this state or any political subdivision of that state,
16

17 but only to the extent that the other state or political subdivision
17

18 exempts or does not impose a tax on similar sales of items to this
18

19 state or a political subdivision of this state;
19

20 50. Effective July 1, 2005, sales of tangible personal property

21 or services to the career technology student organizations under the
21

22 direction and supervision of the Oklahoma Department of Career and
22

23 Technology Education;
23

Req. No. 3559 Page 426
1 51. Sales of tangible personal property to a public trust

2 having either a single city, town or county or multiple cities,
2

3 towns or counties, or combination thereof as beneficiary or
3

4 beneficiaries or a nonprofit organization which is exempt from
4

5 taxation pursuant to the provisions of the Internal Revenue Code of
5

6 1986, as amended, 26 U.S.C., Section 501(c)(3) for the purpose of
6

7 constructing improvements to or expanding a hospital or nursing home
7

8 owned and operated by any such public trust or nonprofit entity
8

9 prior to July 1, 2008, in counties with a population of less than
9

10 one hundred thousand (100,000) persons, according to the most recent
10

11 Federal Decennial Census. As used in this paragraph, "constructing
11

12 improvements to or expanding" shall not mean any expense for routine
12

13 maintenance or general repairs and shall require a project cost of
13

14 at least One Hundred Thousand Dollars ($100,000.00). For purposes
14

15 of this paragraph, sales made to a contractor or subcontractor that
15

16 enters into a contractual relationship with a public trust or
16

17 nonprofit entity as described by this paragraph shall be considered
17

18 sales made to the public trust or nonprofit entity. The exemption
18

19 authorized by this paragraph shall be administered in the form of a
19

20 refund from the sales tax revenues apportioned pursuant to Section
20

21 1353 of this title and the vendor shall be required to collect the
21

22 sales tax otherwise applicable to the transaction. The purchaser
22

23 may apply for a refund of the sales tax paid in the manner
23

24 prescribed by this paragraph. Within thirty (30) days after the end
24

Req. No. 3559 Page 427
1 of each fiscal year, any purchaser that is entitled to make
1
2 application for a refund based upon the exempt treatment authorized
2

3 by this paragraph may file an application for refund of the sales
3
4 taxes paid during such preceding fiscal year. The Oklahoma Tax
4
5 Commission shall prescribe a form for purposes of making the
5
6 application for refund. The Tax Commission shall determine whether
6
7 or not the total amount of sales tax exemptions claimed by all
7

8 purchasers is equal to or less than Six Hundred Fifty Thousand
8
9 Dollars ($650,000.00). If such claims are less than or equal to
9

10 that amount, the Tax Commission shall make refunds to the purchasers
10
11 in the full amount of the documented and verified sales tax amounts.
11

12 If such claims by all purchasers are in excess of Six Hundred Fifty
12

13 Thousand Dollars ($650,000.00), the Tax Commission shall determine
13
14 the amount of each purchaser's claim, the total amount of all claims
14

15 by all purchasers, and the percentage each purchaser's claim amount
15
16 bears to the total. The resulting percentage determined for each
16

17 purchaser shall be multiplied by Six Hundred Fifty Thousand Dollars
17
18 ($650,000.00) to determine the amount of refundable sales tax to be
18
19 paid to each purchaser. The pro rata refund amount shall be the
19

20 only method to recover sales taxes paid during the preceding fiscal
20
21 year and no balance of any sales taxes paid on a pro rata basis
21

22 shall be the subject of any subsequent refund claim pursuant to this
22
23 paragraph;
23
24
24

Req. No. 3559 Page 428
1 52. Effective July 1, 2006, sales of tangible personal property

2 or services to any organization which assists, trains, educates, and
2

3 provides housing for physically and mentally disabled persons and
3

4 which is exempt from taxation pursuant to the provisions of the
4

5 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
5

6 501(c)(3) and that receives at least eighty-five percent (85%) of
6

7 its annual budget from state or federal funds. In order to receive
7

8 the benefit of the exemption authorized by this paragraph, the
8

9 taxpayer shall be required to make payment of the applicable sales
9

10 tax at the time of sale to the vendor in the manner otherwise
10

11 required by law. Notwithstanding any other provision of the Uniform
11

12 Tax Procedure Code to the contrary, the taxpayer shall be authorized
12

13 to file a claim for refund of sales taxes paid that qualify for the
13

14 exemption authorized by this paragraph for a period of one (1) year
14

15 after the date of the sale transaction. The taxpayer shall be
15

16 required to provide documentation as may be prescribed by the
16

17 Oklahoma Tax Commission in support of the refund claim. The total
17

18 amount of sales tax qualifying for exempt treatment pursuant to this
18

19 paragraph shall not exceed One Hundred Seventy-five Thousand Dollars
19

20 ($175,000.00) each fiscal year. Claims for refund shall be
20

21 processed in the order in which such claims are received by the
21

22 Oklahoma Tax Commission. If a claim otherwise timely filed exceeds
22

23 the total amount of refunds payable for a fiscal year, such claim
23

24 shall be barred;
24

Req. No. 3559 Page 429
1 53. The first Two Thousand Dollars ($2,000.00) each year of

2 sales of tangible personal property or services to, by, or for the
2

3 benefit of a qualified neighborhood watch organization that is
3

4 endorsed or supported by or working directly with a law enforcement
4

5 agency with jurisdiction in the area in which the neighborhood watch
5

6 organization is located. As used in this paragraph, "qualified
6

7 neighborhood watch organization" means an organization that is a
7

8 not-for-profit corporation under the laws of this state that was
8

9 created to help prevent criminal activity in an area through
9

10 community involvement and interaction with local law enforcement and
10

11 which is one of the first two thousand organizations which makes
11

12 application to the Oklahoma Tax Commission for the exemption after
12

13 March 29, 2006;
13

14 54. Sales of tangible personal property to a nonprofit

15 organization, exempt from taxation pursuant to the provisions of the
15

16 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
16

17 501(c)(3), organized primarily for the purpose of providing services
17

18 to homeless persons during the day and located in a metropolitan
18

19 area with a population in excess of five hundred thousand (500,000)
19

20 persons according to the latest Federal Decennial Census. The
20

21 exemption authorized by this paragraph shall be applicable to sales
21

22 of tangible personal property to a qualified entity occurring on or
22

23 after January 1, 2005;
23

Req. No. 3559 Page 430
1 55. Sales of tangible personal property or services to or by an

2 organization which is exempt from taxation pursuant to the
2

3 provisions of the Internal Revenue Code of 1986, as amended, 26
3

4 U.S.C., Section 501(c)(3) for events the principal purpose of which
4

5 is to provide funding for the preservation of wetlands and habitat
5

6 for wild ducks;
6

7 56. Sales of tangible personal property or services to or by an

8 organization which is exempt from taxation pursuant to the
8

9 provisions of the Internal Revenue Code of 1986, as amended, 26
9

10 U.S.C., Section 501(c)(3) for events the principal purpose of which
10

11 is to provide funding for the preservation and conservation of wild
11

12 turkeys;
12

13 57. Sales of tangible personal property or services to an

14 organization which:
14

15 a. is exempt from taxation pursuant to the provisions of

16 the Internal Revenue Code of 1986, as amended, 26

17 U.S.C., Section 501(c)(3), and

18 b. is part of a network of community-based, autonomous

19 member organizations that meets the following

20 criteria:

21 (1) serves people with workplace disadvantages and

22 disabilities by providing job training and

23 employment services, as well as job placement

24 opportunities and post-employment support,

Req. No. 3559 Page 431
1 (2) has locations in the United States and at least

2 twenty other countries,

3 (3) collects donated clothing and household goods to

4 sell in retail stores and provides contract labor

5 services to business and government, and

6 (4) provides documentation to the Oklahoma Tax

7 Commission that over seventy-five percent (75%)

8 of its revenues are channeled into employment,

9 job training and placement programs, and other

10 critical community services;

11 58. Sales of tickets made on or after September 21, 2005, and

12 complimentary or free tickets for admission issued on or after
12

13 September 21, 2005, which have a value equivalent to the charge that
13

14 would have otherwise been made, for admission to a professional
14

15 athletic event in which a team in the National Basketball
15

16 Association is a participant, which is held in a facility owned or
16

17 operated by a municipality, a county, or a public trust of which a
17

18 municipality or a county is the sole beneficiary, and sales of
18

19 tickets made on or after July 1, 2007, and complimentary or free
19

20 tickets for admission issued on or after July 1, 2007, which have a
20

21 value equivalent to the charge that would have otherwise been made,
21

22 for admission to a professional athletic event in which a team in
22

23 the National Hockey League is a participant, which is held in a
23

Req. No. 3559 Page 432
1 facility owned or operated by a municipality, a county, or a public
1

2 trust of which a municipality or a county is the sole beneficiary;
2

3 59. Sales of tickets for admission and complimentary or free

4 tickets for admission which have a value equivalent to the charge
4

5 that would have otherwise been made to a professional sporting event
5

6 involving ice hockey, baseball, basketball, football or arena
6

7 football, or soccer. As used in this paragraph, "professional
7

8 sporting event" means an organized athletic competition between
8

9 teams that are members of an organized league or association with
9

10 centralized management, other than a national league or national
10

11 association, that imposes requirements for participation in the
11

12 league upon the teams, the individual athletes, or both, and which
12

13 uses a salary structure to compensate the athletes;
13

14 60. Sales of tickets for admission to an annual event sponsored

15 by an educational and charitable organization of women which is
15

16 exempt from taxation pursuant to the provisions of the Internal
16

17 Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and
17

18 has as its mission promoting volunteerism, developing the potential
18

19 of women and improving the community through the effective action
19

20 and leadership of trained volunteers;
20

21 61. Sales of tangible personal property or services to an

22 organization, which is exempt from taxation pursuant to the
22

23 provisions of the Internal Revenue Code of 1986, as amended, 26
23

24 U.S.C., Section 501(c)(3), and which is itself a member of an
24

Req. No. 3559 Page 433
1 organization which is exempt from taxation pursuant to the
1

2 provisions of the Internal Revenue Code of 1986, as amended, 26
2

3 U.S.C., Section 501(c)(3), if the membership organization is
3

4 primarily engaged in advancing the purposes of its member
4

5 organizations through fundraising, public awareness, or other
5

6 efforts for the benefit of its member organizations, and if the
6

7 member organization is primarily engaged either in providing
7

8 educational services and programs concerning health-related diseases
8

9 and conditions to individuals suffering from such health-related
9

10 diseases and conditions or their caregivers and family members or
10

11 support to such individuals, or in health-related research as to
11

12 such diseases and conditions, or both. In order to qualify for the
12

13 exemption authorized by this paragraph, the member nonprofit
13

14 organization shall be required to provide proof to the Oklahoma Tax
14

15 Commission of its membership status in the membership organization;
15

16 62. Sales of tangible personal property or services to or by an

17 organization which is part of a national volunteer women's service
17

18 organization dedicated to promoting patriotism, preserving American
18

19 history, and securing better education for children and which has at
19

20 least one hundred sixty-eight thousand members in three thousand
20

21 chapters across the United States;
21

22 63. Sales of tangible personal property or services to or by a

23 YWCA or YMCA organization which is part of a national nonprofit
23

Req. No. 3559 Page 434
1 community service organization working to meet the health and social
1

2 service needs of its members across the United States;
2

3 64. Sales of tangible personal property or services to or by a

4 veteran's organization which is exempt from taxation pursuant to the
4

5 provisions of the Internal Revenue Code of 1986, as amended, 26
5

6 U.S.C., Section 501(c)(19) and which is known as the Veterans of
6

7 Foreign Wars of the United States, Oklahoma Chapters Department of
7

8 Oklahoma;
8

9 65. Sales of boxes of food by a church or by an organization,

10 which is exempt from taxation pursuant to the provisions of the
10

11 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
11

12 501(c)(3). To qualify under the provisions of this paragraph, the
12

13 organization must be organized for the primary purpose of feeding
13

14 needy individuals or to encourage volunteer service by requiring
14

15 such service in order to purchase food. These boxes shall only
15

16 contain edible staple food items;
16

17 66. Sales of tangible personal property or services to any

18 person with whom a church has duly entered into a construction
18

19 contract, necessary for carrying out such contract or to any
19

20 subcontractor to such a construction contract;
20

21 67. Sales of tangible personal property or services used

22 exclusively for charitable or educational purposes, to or by an
22

23 organization which:
23

Req. No. 3559 Page 435
1 a. is exempt from taxation pursuant to the provisions of

2 the Internal Revenue Code of 1986, as amended, 26

3 U.S.C., Section 501(c)(3),

4 b. has filed a Not-for-Profit Certificate of

5 Incorporation in this state, and

6 c. is organized for the purpose of:

7 (1) providing training and education to

8 developmentally disabled individuals,

9 (2) educating the community about the rights,

10 abilities, and strengths of developmentally

11 disabled individuals, and

12 (3) promoting unity among developmentally disabled

13 individuals in their community and geographic

14 area;

15 68. Sales of tangible personal property or services to any

16 organization which is a shelter for abused, neglected, or abandoned
16

17 children and which is exempt from taxation pursuant to the
17

18 provisions of the Internal Revenue Code of 1986, as amended, 26
18

19 U.S.C., Section 501(c)(3); provided, until July 1, 2008, such
19

20 exemption shall apply only to eligible shelters for children from
20

21 birth to age twelve (12) and after July 1, 2008, such exemption
21

22 shall apply to eligible shelters for children from birth to age
22

23 eighteen (18);
23

Req. No. 3559 Page 436
1 69. Sales of tangible personal property or services to a child

2 care center which is licensed pursuant to the Oklahoma Child Care
2

3 Facilities Licensing Act and which:
3

4 a. possesses a 3-star rating from the Department of Human

5 Services Reaching for the Stars Program or a national

6 accreditation, and

7 b. allows on-site universal prekindergarten education to

8 be provided to four-year-old children through a

9 contractual agreement with any public school or school

10 district.

11 For the purposes of this paragraph, sales made to any person,

12 firm, agency, or entity that has entered previously into a
12

13 contractual relationship with a child care center for construction
13

14 and improvement of buildings and other structures owned by the child
14

15 care center and operated for educational purposes shall be
15

16 considered sales made to a child care center. Any such person,
16

17 firm, agency, or entity making purchases on behalf of a child care
17

18 center shall certify, in writing, on the copy of the invoice or
18

19 sales ticket the nature of the purchase. Any such person, or person
19

20 acting on behalf of a firm, agency, or entity making purchases on
20

21 behalf of a child care center in violation of this paragraph shall
21

22 be guilty of a misdemeanor and upon conviction thereof shall be
22

23 fined an amount equal to double the amount of sales tax involved or
23

24 incarcerated for not more than sixty (60) days or both;
24

Req. No. 3559 Page 437
1 70. a. Sales of tangible personal property to a service

2 organization of mothers who have children who are

3 serving or who have served in the military, which

4 service organization is exempt from taxation pursuant

5 to the provisions of the Internal Revenue Code of

6 1986, as amended, 26 U.S.C., Section 501(c)(19) and

7 which is known as the Blue Star Mothers of America,

8 Inc. The exemption provided by this paragraph shall

9 only apply to the purchase of tangible personal

10 property actually sent to United States military

11 personnel overseas who are serving in a combat zone

12 and not to any other tangible personal property

13 purchased by the organization. Provided, this

14 exemption shall not apply to any sales tax levied by a

15 city, town, county, or any other jurisdiction in this

16 state.

17 b. The exemption authorized by this paragraph shall be

18 administered in the form of a refund from the sales

19 tax revenues apportioned pursuant to Section 1353 of

20 this title, and the vendor shall be required to

21 collect the sales tax otherwise applicable to the

22 transaction. The purchaser may apply for a refund of

23 the state sales tax paid in the manner prescribed by

24 this paragraph. Within sixty (60) days after the end

Req. No. 3559 Page 438
1 of each calendar quarter, any purchaser that is

2 entitled to make application for a refund based upon

3 the exempt treatment authorized by this paragraph may

4 file an application for refund of the state sales

5 taxes paid during such preceding calendar quarter.

6 The Tax Commission shall prescribe a form for purposes

7 of making the application for refund.

8 c. A purchaser who applies for a refund pursuant to this

9 paragraph shall certify that the items were actually

10 sent to military personnel overseas in a combat zone.

11 Any purchaser that applies for a refund for the

12 purchase of items that are not authorized for

13 exemption under this paragraph shall be subject to a

14 penalty in the amount of Five Hundred Dollars

15 ($500.00);

16 71. Sales of food and snack items to or by an organization

17 which is exempt from taxation pursuant to the provisions of the
17

18 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
18

19 501(c)(3), whose primary and principal purpose is providing funding
19

20 for scholarships in the medical field;
20

21 72. Sales of tangible personal property or services for use

22 solely on construction projects for organizations which are exempt
22

23 from taxation pursuant to the provisions of the Internal Revenue
23

24 Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and whose
24

Req. No. 3559 Page 439
1 purpose is providing end-of-life care and access to hospice services
1

2 to low-income individuals who live in a facility owned by the
2

3 organization. The exemption provided by this paragraph applies to
3

4 sales to the organization as well as to sales to any person with
4

5 whom the organization has duly entered into a construction contract,
5

6 necessary for carrying out such contract or to any subcontractor to
6

7 such a construction contract. Any person making purchases on behalf
7

8 of such organization shall certify, in writing, on the copy of the
8

9 invoice or sales ticket to be retained by the vendor that the
9

10 purchases are made for and on behalf of such organization and set
10

11 out the name of such organization. Any person who wrongfully or
11

12 erroneously certifies that purchases are for any of the above-named
12

13 organizations or who otherwise violates this section shall be guilty
13

14 of a misdemeanor and upon conviction thereof shall be fined an
14

15 amount equal to double the amount of sales tax involved or
15

16 incarcerated for not more than sixty (60) days or both;
16

17 73. Sales of tickets for admission to events held by

18 organizations exempt from taxation pursuant to the provisions of the
18

19 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
19

20 501(c)(3) that are organized for the purpose of supporting general
20

21 hospitals licensed by the State Department of Health;
21

22 74. Sales of tangible personal property or services:

23 a. to a foundation which is exempt from taxation pursuant

24 to the provisions of the Internal Revenue Code of

Req. No. 3559 Page 440
1 1986, as amended, 26 U.S.C., Section 501(c)(3) and

2 which raises tax-deductible contributions in support

3 of a wide range of firearms-related public interest

4 activities of the National Rifle Association of

5 America and other organizations that defend and foster

6 Second Amendment rights, and

7 b. to or by a grassroots fundraising program for sales

8 related to events to raise funds for a foundation

9 meeting the qualifications of subparagraph a of this

10 paragraph;

11 75. Sales by an organization or entity which is exempt from

12 taxation pursuant to the provisions of the Internal Revenue Code of
12

13 1986, as amended, 26 U.S.C., Section 501(c)(3) which are related to
13

14 a fundraising event sponsored by the organization or entity when the
14

15 event does not exceed any five (5) consecutive days and when the
15

16 sales are not in the organization's or the entity's regular course
16

17 of business. Provided, the exemption provided in this paragraph
17

18 shall be limited to tickets sold for admittance to the fundraising
18

19 event and items which were donated to the organization or entity for
19

20 sale at the event;
20

21 76. Effective November 1, 2017, sales of tangible personal

22 property or services to an organization which is exempt from
22

23 taxation pursuant to the provisions of the Internal Revenue Code of
23

24 1986, as amended, 26 U.S.C., Section 501(c)(3) and operates as a
24

Req. No. 3559 Page 441
1 collaborative model which connects community agencies in one
1

2 location to serve individuals and families affected by violence and
2

3 where victims have access to services and advocacy at no cost to the
3

4 victim;
4

5 77. Effective July 1, 2018, sales of tangible personal property

6 or services to or by an association which is exempt from taxation
6

7 pursuant to the provisions of the Internal Revenue Code of 1986, as
7

8 amended, 26 U.S.C., Section 501(c)(19) and which is known as the
8

9 National Guard Association of Oklahoma;
9

10 78. Effective July 1, 2018, sales of tangible personal property

11 or services to or by an association which is exempt from taxation
11

12 pursuant to the provisions of the Internal Revenue Code of 1986, as
12

13 amended, 26 U.S.C., Section 501(c)(4) and which is known as the
13

14 Marine Corps League Department of Oklahoma;
14

15 79. Sales of tangible personal property or services to the

16 American Legion, whether the purchase is made by the entity
16

17 chartered by the United States Congress or is an entity organized
17

18 under the laws of this or another state pursuant to the authority of
18

19 the national American Legion organization;
19

20 80. Sales of tangible personal property or services to or by an

21 organization which is:
21

22 a. exempt from taxation pursuant to the provisions of the

23 Internal Revenue Code of 1986, as amended, 26 U.S.C.,

24 Section 501(c)(3),

Req. No. 3559 Page 442
1 b. verified with a letter from the MIT Fab Foundation as

2 an official member of the Fab Lab Network in

3 compliance with the Fab Charter, and

4 c. able to provide documentation that its primary and

5 principal purpose is to provide community access to

6 advanced 21st century manufacturing and digital

7 fabrication tools for science, technology,

8 engineering, art and math (STEAM) learning skills,

9 developing inventions, creating and sustaining

10 businesses, and producing personalized products;

11 81. Effective November 1, 2021, sales of tangible personal

12 property or services used solely for construction and remodeling
12

13 projects to an organization which is exempt from taxation pursuant
13

14 to the provisions of the Internal Revenue Code of 1986, as amended,
14

15 26 U.S.C., Section 501(c)(3), and which meets the following
15

16 requirements:
16

17 a. its primary purpose is to construct or remodel and

18 sell affordable housing and provide homeownership

19 education to residents of Oklahoma that have an income

20 that is below one hundred percent (100%) of the Family

21 Median Income guidelines as defined by the U.S.

22 Department of Housing and Urban Development,

Req. No. 3559 Page 443
1 b. it conducts its activities in a manner that serves

2 public or charitable purposes, rather than commercial

3 purposes,

4 c. it receives funding and revenue and charges fees in a

5 manner that does not incentivize it or its employees

6 to act other than in the best interests of its

7 clients, and

8 d. it compensates its employees in a manner that does not

9 incentivize employees to act other than in the best

10 interests of its clients;

11 82. Effective November 1, 2021, sales of tangible personal

12 property or services to a nonprofit entity, organized pursuant to
12

13 Oklahoma law before January 1, 2022, exempt from federal income
13

14 taxation pursuant to Section 501(c) of the Internal Revenue Code of
14

15 1986, as amended, the principal functions of which are to provide
15

16 assistance to natural persons following a disaster, with program
16

17 emphasis on repair or restoration to single-family residential
17

18 dwellings or the construction of a replacement single-family
18

19 residential dwelling. As used in this paragraph, "disaster" means
19

20 damage to property with or without accompanying injury to persons
20

21 from heavy rain, high winds, tornadic winds, drought, wildfire,
21

22 snow, ice, geologic disturbances, explosions, chemical accidents or
22

23 spills, and other events causing damage to property on a large
23

24 scale. For purposes of this paragraph, an entity that expended at
24

Req. No. 3559 Page 444
1 least seventy-five percent (75%) of its funds on the restoration to
1

2 single-family housing following a disaster including related general
2

3 and administrative expenses, shall be eligible for the exemption
3

4 authorized by this paragraph;
4

5 83. Effective November 1, 2021, through December 31, 2024,

6 sales of tangible personal property or services to a museum that:
6

7 a. operates as a part of an organization which is exempt

8 from taxation pursuant to the provisions of the

9 Internal Revenue Code of 1986, as amended, 26 U.S.C.,

10 Section 501(c)(3),

11 b. is not accredited by the American Alliance of Museums,

12 and

13 c. operates on an annual budget of less than One Million

14 Dollars ($1,000,000.00);

15 84. Until July 1, 2022, sales of tangible personal property or

16 services for use in a clinical practice or medical facility operated
16

17 by an organization which is exempt from taxation pursuant to the
17

18 provisions of the Internal Revenue Code of 1986, as amended, of the
18

19 United States, 26 U.S.C., Section 501(c)(3), and which has entered
19

20 into a joint operating agreement with the University Hospitals Trust
20

21 created pursuant to Section 3224 of Title 63 of the Oklahoma
21

22 Statutes. The exemption provided by this paragraph shall be limited
22

23 to the purchase of tangible personal property and services for use
23

24 in clinical practices or medical facilities acquired or leased by
24

Req. No. 3559 Page 445
1 the organization from the University Hospitals Authority, University
1

2 Hospitals Trust, or the University of Oklahoma on or after June 1,
2

3 2021;
3

4 85. Sales of tangible personal property or services to or by a

5 women's veterans organization, and its subchapters in this state,
5

6 that is exempt from taxation pursuant to the provisions of the
6

7 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
7

8 501(c)(19) and is known as the Oklahoma Women Veterans Organization;
8

9 86. Sales of tangible personal property or services to a

10 nonprofit entity, organized pursuant to Oklahoma law before January
10

11 1, 2019, exempt from federal income taxation pursuant to Section
11

12 501(c) of the Internal Revenue Code of 1986, as amended, the
12

13 principal functions of which are to provide assistance to natural
13

14 persons following a disaster, with program emphasis on repair or
14

15 restoration to single-family residential dwellings or the
15

16 construction of a replacement single-family residential dwelling.
16

17 For purposes of this paragraph, an entity operated exclusively for
17

18 charitable and educational purposes through the coordination of
18

19 volunteers for the disaster recovery of homes (as derived from Part
19

20 III, Statement of Program Services, of Internal Revenue Service Form
20

21 990) and which offers its services free of charge to disaster
21

22 survivors statewide who are low income with no or limited means of
22

23 recovery on their own for the restoration to single-family housing
23

24 following a disaster including related general and administrative
24

Req. No. 3559 Page 446
1 expenses, shall be eligible for the exemption authorized by this
1

2 paragraph. The exemption provided by this paragraph shall only be
2

3 applicable to sales made on or after July 1, 2022. As used in this
3

4 paragraph, "disaster" means damage to property with or without
4

5 accompanying injury to persons from heavy rain, high winds, tornadic
5

6 winds, drought, wildfire, snow, ice, geologic disturbances,
6

7 explosions, chemical accidents or spills and other events causing
7

8 damage to property on a large scale;
8

9 87. Sales of tangible personal property or services to or by a

10 women's veterans organization, and its subchapters in this state,
10

11 that is exempt from taxation pursuant to the provisions of the
11

12 Internal Revenue Code, 26 U.S.C., Section 501(c)(19) and is known as
12

13 the Oklahoma Women Veterans Organization;
13

14 87. 88. Effective July 1, 2022, sales of tangible personal

15 property or services to an organization which is exempt from
15

16 taxation pursuant to the provisions of the Internal Revenue Code of
16

17 1986, as amended, 26 U.S.C., Section 501(c)(3) and which provides
17

18 support to veterans, active duty members of the Armed Forces,
18

19 reservists, and members of the National Guard to assist with the
19

20 transition to civilian life and which provides documentation to the
20

21 Oklahoma Tax Commission that over seventy percent (70%) of its
21

22 revenue is expended on support for transition to civilian life; and
22

23 88. 89. Sales of tangible personal property or services to or

24 by an organization in this state which:
24

Req. No. 3559 Page 447
1 a. is exempt from taxation pursuant to the provisions of

2 the Internal Revenue Code of 1986, as amended, 26

3 U.S.C., Section 501(c)(3), and

4 b. provides documentation to the Oklahoma Tax Commission

5 showing the organization's principal purpose is to

6 provide school supplies or articles of clothing for

7 underserved students attending grades prekindergarten

8 through twelve at public schools in this state.

9 SECTION 121. REPEALER 68 O.S. 2021, Section 1356, as

10 last amended by Section 1, Chapter 444, O.S.L. 2024 (68 O.S. Supp.
10

11 2025, Section 1356), is hereby repealed.
11

12 SECTION 122. AMENDATORY 68 O.S. 2021, Section 1357, as

13 last amended by Section 1, Chapter 391, O.S.L. 2025 (68 O.S. Supp.
13

14 2025, Section 1357), is amended to read as follows:
14

15 Section 1357. Exemptions � General. There are hereby

16 specifically exempted from the tax levied by the Oklahoma Sales Tax
16

17 Code:
17

18 1. Transportation of school pupils to and from elementary

19 schools or high schools in motor or other vehicles;
19

20 2. Transportation of persons where the fare of each person does

21 not exceed One Dollar ($1.00), or local transportation of persons
21

22 within the corporate limits of a municipality except by taxicabs;
22

23 3. Sales for resale to persons engaged in the business of

24 reselling the articles purchased, whether within or without the
24

Req. No. 3559 Page 448
1 state, provided that such sales to residents of this state are made
1

2 to persons to whom sales tax permits have been issued as provided in
2

3 the Oklahoma Sales Tax Code. This exemption shall not apply to the
3

4 sales of articles made to persons holding permits when such persons
4

5 purchase items for their use and which they are not regularly
5

6 engaged in the business of reselling; neither shall this exemption
6

7 apply to sales of tangible personal property to peddlers, solicitors
7

8 and other salespersons who do not have an established place of
8

9 business and a sales tax permit. The exemption provided by this
9

10 paragraph shall apply to sales of motor fuel or diesel fuel to a
10

11 Group Five vendor, but the use of such motor fuel or diesel fuel by
11

12 the Group Five vendor shall not be exempt from the tax levied by the
12

13 Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel
13

14 is exempt from sales tax when the motor fuel is for shipment outside
14

15 this state and consumed by a common carrier by rail in the conduct
15

16 of its business. The sales tax shall apply to the purchase of motor
16

17 fuel or diesel fuel in Oklahoma by a common carrier by rail when
17

18 such motor fuel is purchased for fueling, within this state, of any
18

19 locomotive or other motorized flanged wheel equipment;
19

20 4. Sales of advertising space in newspapers and periodicals;

21 5. Sales of programs relating to sporting and entertainment

22 events, and sales of advertising on billboards (including signage,
22

23 posters, panels, marquees or on other similar surfaces, whether
23

24 indoors or outdoors) or in programs relating to sporting and
24

Req. No. 3559 Page 449
1 entertainment events, and sales of any advertising, to be displayed
1

2 at or in connection with a sporting event, via the Internet,
2

3 electronic display devices or through public address or broadcast
3

4 systems. The exemption authorized by this paragraph shall be
4

5 effective for all sales made on or after January 1, 2001;
5

6 6. Sales of any advertising, other than the advertising

7 described by paragraph 5 of this section, via the Internet,
7

8 electronic display devices or through the electronic media including
8

9 radio, public address or broadcast systems, television (whether
9

10 through closed circuit broadcasting systems or otherwise), and cable
10

11 and satellite television, and the servicing of any advertising
11

12 devices;
12

13 7. Eggs, feed, supplies, machinery, and equipment purchased by

14 persons regularly engaged in the business of raising worms, fish,
14

15 any insect, or any other form of terrestrial or aquatic animal life
15

16 and used for the purpose of raising same for marketing. This
16

17 exemption shall only be granted and extended to the purchaser when
17

18 the items are to be used and in fact are used in the raising of
18

19 animal life as set out above. Each purchaser shall certify, in
19

20 writing, on the invoice or sales ticket retained by the vendor that
20

21 the purchaser is regularly engaged in the business of raising such
21

22 animal life and that the items purchased will be used only in such
22

23 business. The vendor shall certify to the Oklahoma Tax Commission
23

24 that the price of the items has been reduced to grant the full
24

Req. No. 3559 Page 450
1 benefit of the exemption. Violation hereof by the purchaser or
1

2 vendor shall be a misdemeanor;
2

3 8. Sale of natural or artificial gas and electricity, and

4 associated delivery or transmission services, when sold exclusively
4

5 for residential use. Provided, this exemption shall not apply to
5

6 any sales tax levied by a city or town, or a county or any other
6

7 jurisdiction in this state;
7

8 9. In addition to the exemptions authorized by Section 1357.6

9 of this title, sales of drugs sold pursuant to a prescription
9

10 written for the treatment of human beings by a person licensed to
10

11 prescribe the drugs, and sales of insulin and medical oxygen.
11

12 Provided, this exemption shall not apply to over-the-counter drugs;
12

13 10. Transfers of title or possession of empty, partially

14 filled, or filled returnable oil and chemical drums to any person
14

15 who is not regularly engaged in the business of selling, reselling
15

16 or otherwise transferring empty, partially filled or filled
16

17 returnable oil drums;
17

18 11. Sales of one-way utensils, paper napkins, paper cups,

19 disposable hot containers, and other one-way carry out materials to
19

20 a vendor of meals or beverages;
20

21 12. Sales of food or food products for home consumption which

22 are purchased in whole or in part with coupons issued pursuant to
22

23 the federal food stamp program as authorized by Sections 2011
23

24 through 2036d of Title 7 of the United States Code, as to that
24

Req. No. 3559 Page 451
1 portion purchased with such coupons. The exemption provided for
1

2 such sales shall be inapplicable to such sales upon the effective
2

3 date of any federal law that removes the requirement of the
3

4 exemption as a condition for participation by the state in the
4

5 federal food stamp program;
5

6 13. Sales of food or food products, or any equipment or

7 supplies used in the preparation of the food or food products to or
7

8 by an organization which:
8

9 a. is exempt from taxation pursuant to the provisions of

10 Section 501(c)(3) of the Internal Revenue Code of

11 1986, as amended, 26 U.S.C., Section 501(c)(3), and

12 which provides and delivers prepared meals for home

13 consumption to elderly or homebound persons as part of

14 a program commonly known as "Meals on Wheels" or

15 "Mobile Meals", or

16 b. is exempt from taxation pursuant to the provisions of

17 Section 501(c)(3) of the Internal Revenue Code of

18 1986, as amended, 26 U.S.C., Section 501(c)(3), and

19 which receives federal funding pursuant to the Older

20 Americans Act of 1965, as amended, for the purpose of

21 providing nutrition programs for the care and benefit

22 of elderly persons;

23 14. a. Sales of tangible personal property or services to or

24 by organizations which are exempt from taxation

Req. No. 3559 Page 452
1 pursuant to the provisions of Section 501(c)(3) of the

2 Internal Revenue Code of 1986, as amended, 26 U.S.C.,

3 Section 501(c)(3), and:

4 (1) are primarily involved in the collection and

5 distribution of food and other household products

6 to other organizations that facilitate the

7 distribution of such products to the needy and

8 such distributee organizations are exempt from

9 taxation pursuant to the provisions of Section

10 501(c)(3) of the Internal Revenue Code of 1986,

11 as amended, 26 U.S.C., Section 501(c)(3), or

12 (2) facilitate the distribution of such products to

13 the needy.

14 b. Sales made in the course of business for profit or

15 savings, competing with other persons engaged in the

16 same or similar business shall not be exempt under

17 this paragraph;

18 15. Sales of tangible personal property or services to

19 children's homes which are located on church-owned property and are
19

20 operated by organizations exempt from taxation pursuant to the
20

21 provisions of the Internal Revenue Code of 1986, as amended, 26
21

22 U.S.C., Section 501(c)(3);
22

23 16. Sales of computers, data processing equipment, related

24 peripherals, and telephone, telegraph or telecommunications service
24

Req. No. 3559 Page 453
1 and equipment for use in a qualified aircraft maintenance or
1

2 manufacturing facility. For purposes of this paragraph, "qualified
2

3 aircraft maintenance or manufacturing facility" means a new or
3

4 expanding facility primarily engaged in aircraft repair, building or
4

5 rebuilding, whether or not on a factory basis, whose total cost of
5

6 construction exceeds the sum of Five Million Dollars ($5,000,000.00)
6

7 and which employs at least two hundred fifty new full-time-
7

8 equivalent employees, as certified by the Oklahoma Employment
8

9 Security Commission, upon completion of the facility. In order to
9

10 qualify for the exemption provided for by this paragraph, the cost
10

11 of the items purchased by the qualified aircraft maintenance or
11

12 manufacturing facility shall equal or exceed the sum of Two Million
12

13 Dollars ($2,000,000.00);
13

14 17. Sales of tangible personal property consumed or

15 incorporated in the construction or expansion of a qualified
15

16 aircraft maintenance or manufacturing facility as defined in
16

17 paragraph 16 of this section. For purposes of this paragraph, sales
17

18 made to a contractor or subcontractor that has previously entered
18

19 into a contractual relationship with a qualified aircraft
19

20 maintenance or manufacturing facility for construction or expansion
20

21 of such a facility shall be considered sales made to a qualified
21

22 aircraft maintenance or manufacturing facility;
22

23 18. Sales of the following telecommunications services:

Req. No. 3559 Page 454
1 a. interstate and international 800 service. "800

2 service" means a telecommunications service that

3 allows a caller to dial a toll-free number without

4 incurring a charge for the call. The service is

5 typically marketed under the name "800", "855", "866",

6 "877" and "888" toll-free calling, and any subsequent

7 numbers designated by the Federal Communications

8 Commission,

9 b. interstate and international 900 service. "900

10 service" means an inbound toll telecommunications

11 service purchased by a subscriber that allows the

12 subscriber's customers to call in to the subscriber's

13 prerecorded announcement or live service. 900 service

14 does not include the charge for: collection services

15 provided by the seller of the telecommunications

16 services to the subscriber, or service or product sold

17 by the subscriber to the subscriber's customer. The

18 service is typically marketed under the name "900"

19 service, and any subsequent numbers designated by the

20 Federal Communications Commission,

21 c. interstate and international private communications

22 service. "Private communications service" means a

23 telecommunications service that entitles the customer

24 to exclusive or priority use of a communications

Req. No. 3559 Page 455
1 channel or group of channels between or among

2 termination points, regardless of the manner in which

3 such channel or channels are connected, and includes

4 switching capacity, extension lines, stations and any

5 other associated services that are provided in

6 connection with the use of such channel or channels,

7 d. value-added nonvoice data service. "Value-added

8 nonvoice data service" means a service that otherwise

9 meets the definition of telecommunications services in

10 which computer processing applications are used to act

11 on the form, content, code or protocol of the

12 information or data primarily for a purpose other than

13 transmission, conveyance, or routing,

14 e. interstate and international telecommunications

15 service which is:

16 (1) rendered by a company for private use within its

17 organization, or

18 (2) used, allocated or distributed by a company to

19 its affiliated group,

20 f. regulatory assessments and charges including charges

21 to fund the Oklahoma Universal Service Fund, the

22 Oklahoma Lifeline Fund and the Oklahoma High Cost

23 Fund, and

Req. No. 3559 Page 456
1 g. telecommunications nonrecurring charges including but

2 not limited to the installation, connection, change,

3 or initiation of telecommunications services which are

4 not associated with a retail consumer sale;

5 19. Sales of railroad track spikes manufactured and sold for

6 use in this state in the construction or repair of railroad tracks,
6

7 switches, sidings, and turnouts;
7

8 20. Sales of aircraft and aircraft parts provided such sales

9 occur at a qualified aircraft maintenance facility. As used in this
9

10 paragraph, "qualified aircraft maintenance facility" means a
10

11 facility operated by an air common carrier including one or more
11

12 component overhaul support buildings or structures in an area owned,
12

13 leased, or controlled by the air common carrier, at which there were
13

14 employed at least two thousand full-time-equivalent employees in the
14

15 preceding year as certified by the Oklahoma Employment Security
15

16 Commission and which is primarily related to the fabrication,
16

17 repair, alteration, modification, refurbishing, maintenance,
17

18 building, or rebuilding of commercial aircraft or aircraft parts
18

19 used in air common carriage. For purposes of this paragraph, "air
19

20 common carrier" shall also include members of an affiliated group as
20

21 defined by Section 1504 of the Internal Revenue Code of 1986, as
21

22 amended, 26 U.S.C., Section 1504. Beginning July 1, 2012, the
22

23 exemption shall include sales of machinery, tools, supplies,
23

24 equipment, and related tangible personal property and services used
24

Req. No. 3559 Page 457
1 or consumed in the repair, remodeling, or maintenance of aircraft,
1

2 aircraft engines or aircraft component parts which occur at a
2

3 qualified aircraft maintenance facility;
3

4 21. Sales of machinery and equipment purchased and used by

5 persons and establishments primarily engaged in computer services
5

6 and data processing:
6

7 a. as defined under Industry Group Numbers 7372 and 7373

8 of the Standard Industrial Classification (SIC)

9 Manual, latest version, which derive at least fifty

10 percent (50%) of their annual gross revenues from the

11 sale of a product or service to an out-of-state buyer

12 or consumer, and

13 b. as defined under Industry Group Number 7374 of the SIC

14 Manual, latest version, which derive at least eighty

15 percent (80%) of their annual gross revenues from the

16 sale of a product or service to an out-of-state buyer

17 or consumer.

18 Eligibility for the exemption set out in this paragraph shall be

19 established, subject to review by the Tax Commission, by annually
19

20 filing an affidavit with the Tax Commission stating that the
20

21 facility so qualifies and such information as required by the Tax
21

22 Commission. For purposes of determining whether annual gross
22

23 revenues are derived from sales to out-of-state buyers or consumers,
23

Req. No. 3559 Page 458
1 all sales to the federal government shall be considered to be to an
1

2 out-of-state buyer or consumer;
2

3 22. Sales of prosthetic devices to an individual for use by

4 such individual. For purposes of this paragraph, "prosthetic
4

5 device" shall have the same meaning as provided in Section 1357.6 of
5

6 this title, but shall not include corrective eye glasses, contact
6

7 lenses, or hearing aids;
7

8 23. Sales of tangible personal property or services to a motion

9 picture or television production company to be used or consumed in
9

10 connection with an eligible production. For purposes of this
10

11 paragraph, "eligible production" means a documentary, special, music
11

12 video or a television commercial or television program that will
12

13 serve as a pilot for or be a segment of an ongoing dramatic or
13

14 situation comedy series filmed or taped for network or national or
14

15 regional syndication or a feature-length motion picture intended for
15

16 theatrical release or for network or national or regional
16

17 syndication or broadcast. The provisions of this paragraph shall
17

18 apply to sales occurring on or after July 1, 1996. In order to
18

19 qualify for the exemption, the motion picture or television
19

20 production company shall file any documentation and information
20

21 required to be submitted pursuant to rules promulgated by the Tax
21

22 Commission;
22

23 24. Sales of diesel fuel sold for consumption by commercial

24 vessels, barges and other commercial watercraft;
24

Req. No. 3559 Page 459
1 25. Sales of tangible personal property or services to tax-

2 exempt independent nonprofit biomedical research foundations that
2

3 provide educational programs for Oklahoma science students and
3

4 teachers and to tax-exempt independent nonprofit community blood
4

5 banks headquartered in this state;
5

6 26. Effective May 6, 1992, sales of wireless telecommunications

7 equipment to a vendor who subsequently transfers the equipment at no
7

8 charge or for a discounted charge to a consumer as part of a
8

9 promotional package or as an inducement to commence or continue a
9

10 contract for wireless telecommunications services;
10

11 27. Effective January 1, 1991, leases of rail transportation

12 cars to haul coal to coal-fired plants located in this state which
12

13 generate electric power;
13

14 28. Beginning July 1, 2005, sales of aircraft engine repairs,

15 modification, and replacement parts, sales of aircraft frame repairs
15

16 and modification, aircraft interior modification, and paint, and
16

17 sales of services employed in the repair, modification, and
17

18 replacement of parts of aircraft engines, aircraft frame and
18

19 interior repair and modification, and paint;
19

20 29. Sales of materials and supplies to the owner or operator of

21 a ship, motor vessel, or barge that is used in interstate or
21

22 international commerce if the materials and supplies:
22

Req. No. 3559 Page 460
1 a. are loaded on the ship, motor vessel, or barge and

2 used in the maintenance and operation of the ship,

3 motor vessel, or barge, or

4 b. enter into and become component parts of the ship,

5 motor vessel, or barge;

6 30. Sales of tangible personal property made at estate sales at

7 which such property is offered for sale on the premises of the
7

8 former residence of the decedent by a person who is not required to
8

9 be licensed pursuant to the Transient Merchant Licensing Act, or who
9

10 is not otherwise required to obtain a sales tax permit for the sale
10

11 of such property pursuant to the provisions of Section 1364 of this
11

12 title; provided:
12

13 a. such sale or event may not be held for a period

14 exceeding three (3) consecutive days,

15 b. the sale must be conducted within six (6) months of

16 the date of death of the decedent, and

17 c. the exemption allowed by this paragraph shall not be

18 allowed for property that was not part of the

19 decedent's estate;

20 31. Beginning January 1, 2004, sales of electricity and

21 associated delivery and transmission services, when sold exclusively
21

22 for use by an oil and gas operator for reservoir dewatering projects
22

23 and associated operations commencing on or after July 1, 2003, in
23

24 which the initial water-to-oil ratio is greater than or equal to
24

Req. No. 3559 Page 461
1 five-to-one water-to-oil, and such oil and gas development projects
1

2 have been classified by the Corporation Commission as a reservoir
2

3 dewatering unit;
3

4 32. Sales of prewritten computer software that is delivered

5 electronically. For purposes of this paragraph, "delivered
5

6 electronically" means delivered to the purchaser by means other than
6

7 tangible storage media;
7

8 33. Sales of modular dwelling units when built at a production

9 facility and moved in whole or in parts, to be assembled on-site,
9

10 and permanently affixed to the real property and used for
10

11 residential or commercial purposes. The exemption provided by this
11

12 paragraph shall equal forty-five percent (45%) of the total sales
12

13 price of the modular dwelling unit. For purposes of this paragraph,
13

14 "modular dwelling unit" means a structure that is not subject to the
14

15 motor vehicle excise tax imposed pursuant to Section 2103 of this
15

16 title;
16

17 34. Sales of tangible personal property or services to:

18 a. persons who are residents of Oklahoma and have been

19 honorably discharged from active service in any branch

20 of the Armed Forces of the United States or Oklahoma

21 National Guard and who have been certified by the

22 United States Department of Veterans Affairs or its

23 successor to be in receipt of disability compensation

24 at the one-hundred-percent rate and the disability

Req. No. 3559 Page 462
1 shall be permanent and have been sustained through

2 military action or accident or resulting from disease

3 contracted while in such active service and registered

4 with the veterans registry created by the Oklahoma

5 Department of Veterans Affairs; provided, that if the

6 veteran has previously received the sales tax

7 exemption pursuant to this subparagraph, no

8 registration with the veterans registry shall be

9 required, or

10 b. the surviving spouse of the person in subparagraph a

11 of this paragraph if the person is deceased and the

12 spouse has not remarried and the surviving spouse of a

13 person who is determined by the United States

14 Department of Defense or any branch of the United

15 States military to have died while in the line of duty

16 if the spouse has not remarried. Sales for the

17 benefit of an eligible person to a spouse of the

18 eligible person or to a member of the household in

19 which the eligible person resides and who is

20 authorized to make purchases on the person's behalf,

21 when such eligible person is not present at the sale,

22 shall also be exempt for purposes of this paragraph.

23 The Oklahoma Tax Commission shall issue a separate

24 exemption card to a spouse of an eligible person or to

Req. No. 3559 Page 463
1 a member of the household in which the eligible person

2 resides who is authorized to make purchases on the

3 person's behalf, if requested by the eligible person.

4 Sales qualifying for the exemption authorized by this

5 paragraph shall not exceed Twenty-five Thousand

6 Dollars ($25,000.00) per year per individual while the

7 disabled veteran is living. Sales qualifying for the

8 exemption authorized by this paragraph shall not

9 exceed One Thousand Dollars ($1,000.00) per year for

10 an unremarried surviving spouse. Upon request of the

11 Tax Commission, a person asserting or claiming the

12 exemption authorized by this paragraph shall provide a

13 statement, executed under oath, that the total sales

14 amounts for which the exemption is applicable have not

15 exceeded Twenty-five Thousand Dollars ($25,000.00) per

16 year per living disabled veteran or One Thousand

17 Dollars ($1,000.00) per year for an unremarried

18 surviving spouse. If the amount of such exempt sales

19 exceeds such amount, the sales tax in excess of the

20 authorized amount shall be treated as a direct sales

21 tax liability and may be recovered by the Tax

22 Commission in the same manner provided by law for

23 other taxes including penalty and interest. The Tax

24 Commission shall promulgate any rules necessary to

Req. No. 3559 Page 464
1 implement the provisions of this paragraph, which

2 shall include rules providing for the disclosure of

3 information about persons eligible for the exemption

4 authorized in this paragraph to the Oklahoma

5 Department of Veterans Affairs, as authorized in

6 Section 205 of this title. For purposes of the

7 exemption authorized by this subparagraph, if the

8 disability determination that would have been made

9 while the disabled veteran was still living is not

10 made final until after the death of the disabled

11 veteran, the exemption authorized by this subparagraph

12 may still be claimed by the surviving spouse;

13 35. Sales of electricity to the operator, specifically

14 designated by the Corporation Commission, of a spacing unit or lease
14

15 from which oil is produced or attempted to be produced using
15

16 enhanced recovery methods including, but not limited to, increased
16

17 pressure in a producing formation through the use of water or
17

18 saltwater if the electrical usage is associated with and necessary
18

19 for the operation of equipment required to inject or circulate
19

20 fluids in a producing formation for the purpose of forcing oil or
20

21 petroleum into a wellbore for eventual recovery and production from
21

22 the wellhead. In order to be eligible for the sales tax exemption
22

23 authorized by this paragraph, the total content of oil recovered
23

24 after the use of enhanced recovery methods shall not exceed one
24

Req. No. 3559 Page 465
1 percent (1%) by volume. The exemption authorized by this paragraph
1

2 shall be applicable only to the state sales tax rate and shall not
2

3 be applicable to any county or municipal sales tax rate;
3

4 36. Sales of intrastate charter and tour bus transportation.

5 As used in this paragraph, "intrastate charter and tour bus
5

6 transportation" means the transportation of persons from one
6

7 location in this state to another location in this state in a motor
7

8 vehicle which has been constructed in such a manner that it may
8

9 lawfully carry more than eighteen persons, and which is ordinarily
9

10 used or rented to carry persons for compensation. Provided, this
10

11 exemption shall not apply to regularly scheduled bus transportation
11

12 for the general public;
12

13 37. Sales of vitamins, minerals, and dietary supplements by a

14 licensed chiropractor to a person who is the patient of such
14

15 chiropractor at the physical location where the chiropractor
15

16 provides chiropractic care or services to such patient. The
16

17 provisions of this paragraph shall not be applicable to any drug,
17

18 medicine, or substance for which a prescription by a licensed
18

19 physician is required;
19

20 38. Sales of goods, wares, merchandise, tangible personal

21 property, machinery, and equipment to a web search portal located in
21

22 this state which derives at least eighty percent (80%) of its annual
22

23 gross revenue from the sale of a product or service to an out-of-
23

24 state buyer or consumer. For purposes of this paragraph, "web
24

Req. No. 3559 Page 466
1 search portal" means an establishment classified under North
1

2 American Industry Classification System (NAICS) code 519130 which
2

3 operates websites that use a search engine to generate and maintain
3

4 extensive databases of Internet addresses and content in an easily
4

5 searchable format;
5

6 39. Sales of tangible personal property consumed or

7 incorporated in the construction or expansion of a facility for a
7

8 corporation organized under Section 437 et seq. of Title 18 of the
8

9 Oklahoma Statutes as a rural electric cooperative. For purposes of
9

10 this paragraph, sales made to a contractor or subcontractor that has
10

11 previously entered into a contractual relationship with a rural
11

12 electric cooperative for construction or expansion of a facility
12

13 shall be considered sales made to a rural electric cooperative;
13

14 40. Sales of tangible personal property or services to a

15 business primarily engaged in the repair of consumer electronic
15

16 goods including, but not limited to, cell phones, compact disc
16

17 players, personal computers, MP3 players, digital devices for the
17

18 storage and retrieval of information through hard-wired or wireless
18

19 computer or Internet connections, if the devices are sold to the
19

20 business by the original manufacturer of such devices and the
20

21 devices are repaired, refitted or refurbished for sale by the entity
21

22 qualifying for the exemption authorized by this paragraph directly
22

23 to retail consumers or if the devices are sold to another business
23

24 entity for sale to retail consumers;
24

Req. No. 3559 Page 467
1 41. On or after July 1, 2019, and prior to July 1, 2024 July 1,

2 2029, sales or leases of rolling stock when sold or leased by the
2

3 manufacturer, regardless of whether the purchaser is a public
3

4 services corporation engaged in business as a common carrier of
4

5 property or passengers by railway, for use or consumption by a
5

6 common carrier directly in the rendition of public service. For
6

7 purposes of this paragraph, "rolling stock" means locomotives,
7

8 autocars, and railroad cars and "sales or leases" includes railroad
8

9 car maintenance and retrofitting of railroad cars for their further
9

10 use only on the railways;
10

11 42. Sales of gold, silver, platinum, palladium or other bullion

12 items such as coins and bars and legal tender of any nation, which
12

13 legal tender is sold according to its value as precious metal or as
13

14 an investment. As used in the paragraph, "bullion" means any
14

15 precious metal including, but not limited to, gold, silver,
15

16 platinum, and palladium, that is in such a state or condition that
16

17 its value depends upon its precious metal content and not its form.
17

18 The exemption authorized by this paragraph shall not apply to
18

19 fabricated metals that have been processed or manufactured for
19

20 artistic use or as jewelry;
20

21 43. Subject to the other requirements of this paragraph and the

22 requirements of Section 1357.21 of this title, sale, lease, rental,
22

23 storage, use or other consumption of qualifying broadband equipment
23

24 by providers of Internet service or subsidiaries if the property is
24

Req. No. 3559 Page 468
1 directly used or consumed by the provider or subsidiary in or during
1

2 the distribution of broadband Internet service. The Legislature
2

3 finds that pursuant to the provisions of subsection H of Section
3

4 1357.21 of this title, the provisions of this paragraph were
4

5 originally made contingent upon the enactment of an incentive award
5

6 formula. Notwithstanding the failure to fulfill the condition as
6

7 prescribed by subsection H of Section 1357.21 of this title, as
7

8 originally enacted, the provisions of this paragraph shall be
8

9 operative on and after June 2, 2023;
9

10 44. Until January 2027, sales of commercial forestry service

11 equipment, limited to forwarders, fellers, bunchers, track skidders,
11

12 wheeled skidders, hydraulic excavators, delimbers, soil compactors
12

13 and skid steer loaders, to businesses engaged in logging, timber and
13

14 tree farming;
14

15 45. Recovery fees on the rental charge from any item of heavy

16 equipment property rental as provided for in Section 2807.11 of this
16

17 title; and
17

18 44. 46. Sales of firearm safety devices and gun safety devices.

19 As used in this paragraph:
19

20 a. "firearm safety device" means a gun safe, gun case,

21 gun lock box, trigger lock, barrel lock, or other

22 device that is designed to be used to store a firearm

23 and that is designed to be unlocked only by means of a

24 key, combination, or other similar means, and

Req. No. 3559 Page 469
1 b. "gun safety device" means any integral device to be

2 equipped or installed on a firearm that permits a user

3 to program the firearm to operate only for specified

4 persons designated by the user through computerized

5 locking devices or other means integral to and

6 permanently part of the firearm.

7 SECTION 123. REPEALER 68 O.S. 2021, Section 1357, as

8 amended by Section 10, Chapter 229, O.S.L. 2017, is hereby repealed.
8

9 SECTION 124. REPEALER 68 O.S. 2021, Section 1357, as

10 amended by Section 1, Chapter 68, O.S.L. 2021, is hereby repealed.
10

11 SECTION 125. REPEALER 68 O.S. 2021, Section 1357, as

12 last amended by Section 1, Chapter 193, O.S.L. 2023 (68 O.S. Supp.
12

13 2025, Section 1357), is hereby repealed.
13

14 SECTION 126. REPEALER 68 O.S. 2021, Section 1357, as

15 amended by Section 1, Chapter 44, 1st Extraordinary Session, O.S.L.
15

16 2023 (68 O.S. Supp. 2025, Section 1357), is hereby repealed.
16

17 SECTION 127. AMENDATORY 68 O.S. 2021, Section 2357.22,

18 as last amended by Section 1, Chapter 143, O.S.L. 2024 (68 O.S.
18

19 Supp. 2025, Section 2357.22), is amended to read as follows:
19

20 Section 2357.22. A. For tax years 2028 and before, there shall

21 be allowed a one-time credit against the income tax imposed by
21

22 Section 2355 of this title for investments in qualified clean-
22

23 burning motor vehicle fuel property placed in service on or after
23

Req. No. 3559 Page 470
1 January 1, 1991, or with respect to a hydrogen fuel cell, on or
1

2 after July 1, 2023.
2

3 B. As used in this section, "qualified clean-burning motor

4 vehicle fuel property" means:
4

5 1. Equipment installed to modify a motor vehicle which is

6 propelled by gasoline or diesel fuel so that the vehicle may be
6

7 propelled by compressed natural gas, a hydrogen fuel cell, liquefied
7

8 natural gas, or liquefied petroleum gas. The equipment covered by
8

9 this paragraph must:
9

10 a. be new, not previously used to modify or retrofit any

11 vehicle propelled by gasoline or diesel fuel and be

12 installed by an alternative fuels equipment technician

13 who is certified in accordance with the Alternative

14 Fuels Technician Certification Act,

15 b. meet all Federal Motor Vehicle Safety Standards set

16 forth in 49 CFR 571, or

17 c. for any commercial motor vehicle (CMV), follow the

18 Federal Motor Carrier Safety Regulations or Oklahoma

19 Intrastate Motor Carrier Regulations;

20 2. A motor vehicle originally equipped so that the vehicle may

21 be propelled by compressed natural gas, a hydrogen fuel cell, or
21

22 liquefied natural gas or liquefied petroleum gas but only to the
22

23 extent of the portion of the basis of such motor vehicle which is
23

24 attributable to the storage of such fuel, the delivery to the engine
24

Req. No. 3559 Page 471
1 of such motor vehicle of such fuel, and the exhaust of gases from
1

2 combustion of such fuel;
2

3 3. Property, not including a building and its structural

4 components, which is:
4

5 a. directly related to the delivery of compressed natural

6 gas, liquefied natural gas or liquefied petroleum gas,

7 or hydrogen for commercial purposes or for a fee or

8 charge, into the fuel tank of a motor vehicle

9 propelled by such fuel including compression equipment

10 and storage tanks for such fuel at the point where

11 such fuel is so delivered but only if such property is

12 not used to deliver such fuel into any other type of

13 storage tank or receptacle and such fuel is not used

14 for any purpose other than to propel a motor vehicle,

15 or

16 b. a metered-for-fee, public access recharging system for

17 motor vehicles propelled in whole or in part by

18 electricity. The property covered by this paragraph

19 must be new, and must not have been previously

20 installed or used to refuel vehicles powered by

21 compressed natural gas, liquefied natural gas or

22 liquefied petroleum gas, hydrogen, or electricity.

Req. No. 3559 Page 472
1 Any property covered by this paragraph which is related to the
1

2 delivery of hydrogen into the fuel tank of a motor vehicle shall
2

3 only be eligible for tax years 2010 and 2023 through 2028;
3

4 4. Property which is directly related to the compression and

5 delivery of natural gas from a private home or residence, for
5

6 noncommercial purposes, into the fuel tank of a motor vehicle
6

7 propelled by compressed natural gas. The property covered by this
7

8 paragraph must be new and must not have been previously installed or
8

9 used to refuel vehicles powered by natural gas; or
9

10 5. For tax years 2010 and 2023 through 2028, a motor vehicle

11 originally equipped so that the vehicle may be propelled by a
11

12 hydrogen fuel cell electric fueling system.
12

13 C. As used in this section, "motor vehicle" means a motor

14 vehicle originally designed by the manufacturer to operate lawfully
14

15 and principally on streets and highways.
15

16 D. The credit provided for in subsection A of this section

17 shall be as follows:
17

18 1. For the qualified clean-burning motor vehicle fuel property

19 defined in paragraphs 1, 2, or 5 of subsection B of this section,
19

20 the amount of the credit shall be as follows based upon gross
20

21 vehicle weight of the qualified vehicle:
21

22 a. for vehicles up to or below six thousand (6,000)

23 pounds, the credit shall be a maximum of Five Thousand

24 Five Hundred Dollars ($5,500.00),

Req. No. 3559 Page 473
1 b. for vehicles between six thousand one (6,001) pounds

2 to ten thousand (10,000) pounds, the credit shall be a

3 maximum amount of Nine Thousand Dollars ($9,000.00),

4 c. for vehicles of ten thousand one (10,001) pounds, but

5 not in excess of twenty-six thousand five hundred

6 (26,500) pounds, the credit shall be a maximum amount

7 of Twenty-six Thousand Dollars ($26,000.00), and

8 d. for vehicles in excess of twenty-six thousand five

9 hundred one (26,501) pounds, the credit shall be a

10 maximum amount of One Hundred Thousand Dollars

11 ($100,000.00);

12 2. For qualified clean-burning motor vehicle fuel property

13 defined in paragraph 3 of subsection B of this section, a per-
13

14 location credit of forty-five percent (45%) of the cost of the
14

15 qualified clean-burning motor vehicle fuel property; and
15

16 3. For qualified clean-burning motor vehicle fuel property

17 defined in paragraph 4 of subsection B of this section, a per-
17

18 location credit of the lesser of fifty percent (50%) of the cost of
18

19 the qualified clean-burning motor vehicle fuel property or Two
19

20 Thousand Five Hundred Dollars ($2,500.00).
20

21 E. In cases where no credit has been claimed pursuant to

22 paragraph 1 of subsection D of this section by any prior owner and
22

23 in which a motor vehicle is purchased by a taxpayer with qualified
23

24 clean-burning motor vehicle fuel property installed by the
24

Req. No. 3559 Page 474
1 manufacturer of such motor vehicle and the taxpayer is unable or
1

2 elects not to determine the exact basis which is attributable to
2

3 such property, the taxpayer may claim a credit in an amount not
3

4 exceeding the lesser of ten percent (10%) of the cost of the motor
4

5 vehicle or One Thousand Five Hundred Dollars ($1,500.00).
5

6 F. If the tax credit allowed pursuant to subsection A of this

7 section exceeds the amount of income taxes due or if there are no
7

8 state income taxes due on the income of the taxpayer, the amount of
8

9 the credit not used as an offset against the income taxes of a
9

10 taxable year may be carried forward, in order, as a credit against
10

11 subsequent income tax liability for a period not to exceed five (5)
11

12 years. The tax credit authorized pursuant to the provisions of this
12

13 section shall not be used to reduce the tax liability of the
13

14 taxpayer to less than zero (0).
14

15 G. A husband and wife who file separate returns for a taxable

16 year in which they could have filed a joint return may each claim
16

17 only one-half (1/2) of the tax credit that would have been allowed
17

18 for a joint return.
18

19 H. The Oklahoma Tax Commission is herein empowered to

20 promulgate rules by which the purpose of this section shall be
20

21 administered including the power to establish and enforce penalties
21

22 for violations thereof.
22

23 I. Notwithstanding the provisions of Section 2352 of this

24 title, for the fiscal year beginning on July 1, 2014, through fiscal
24

Req. No. 3559 Page 475
1 year 2023, the Tax Commission shall calculate an amount that equals
1

2 five percent (5%) of the cost of qualified clean-burning motor
2

3 vehicle fuel property as provided for in paragraph 1 of subsection D
3

4 of this section for tax year 2012. For each subsequent fiscal year
4

5 thereafter, the Tax Commission shall perform the same computation
5

6 with respect to the second tax year preceding the beginning of each
6

7 subsequent fiscal year. For fiscal year 2024, the Tax Commission
7

8 shall calculate an amount that equals twelve percent (12%) of the
8

9 credit for qualified clean-burning motor vehicle fuel property as
9

10 provided in paragraph 1 of subsection D of this section for tax year
10

11 2021. For each subsequent fiscal year, the Tax Commission shall
11

12 perform the same calculation for credits claimed in the second
12

13 preceding tax year. The Tax Commission shall then transfer an
13

14 amount equal to the amount calculated in this subsection from the
14

15 revenue derived pursuant to the provisions of subsections A, B and E
15

16 of Section 2355 of this title to the Compressed Natural Gas
16

17 Conversion Safety and Regulation Fund created in Section 130.25 of
17

18 Title 74 of the Oklahoma Statutes.
18

19 J. For the tax years 2020 through 2022, the total amount of

20 credits authorized by this section used to offset tax shall be
20

21 adjusted annually to limit the annual amount of credits to Twenty
21

22 Million Dollars ($20,000,000.00). The Tax Commission shall annually
22

23 calculate and publish by the first day of the affected taxable year
23

24 a percentage by which the credits authorized by this section shall
24

Req. No. 3559 Page 476
1 be reduced so the total amount of credits used to offset tax does
1

2 not exceed Twenty Million Dollars ($20,000,000.00) per year. The
2

3 formula to be used for the percentage adjustment shall be Twenty
3

4 Million Dollars ($20,000,000.00) divided by the credits claimed in
4

5 the second preceding year, with respect to any changes to the future
5

6 of the credit.
6

7 K. Pursuant to subsection J of this section, in the event the

8 total tax credits authorized by this section exceed Twenty Million
8

9 Dollars ($20,000,000.00) in any calendar year, the Tax Commission
9

10 shall permit any excess over Twenty Million Dollars ($20,000,000.00)
10

11 but shall factor such excess into the percentage adjustment formula
11

12 for subsequent years with respect to any changes to the future of
12

13 the credit.
13

14 L. Except as otherwise provided by this subsection, for the tax

15 years 2023 through 2028, the total amount of credits authorized by
15

16 this section used to offset tax shall be adjusted annually to limit
16

17 the annual amount of credits to:
17

18 1. Ten Million Dollars ($10,000,000.00) for qualified clean

19 burning fuel property propelled by compressed natural gas, liquefied
19

20 natural gas, or liquefied petroleum gas, property related to the
20

21 delivery of compressed natural gas, liquefied natural gas or
21

22 liquefied petroleum gas, and property directly related to the
22

23 compression and delivery of natural gas;
23

Req. No. 3559 Page 477
1 2. Ten Million Dollars ($10,000,000.00) for property originally

2 equipped so that the vehicle may be propelled by a hydrogen fuel
2

3 cell electric fueling system and property directly related to the
3

4 delivery of hydrogen; and
4

5 3. Ten Million Dollars ($10,000,000.00) for property which is a

6 metered-for-fee, public access recharging system for motor vehicles
6

7 propelled in whole or in part by electricity.
7

8 If one of the tax credit pools as described in paragraphs 1

9 through 3 of this subsection is not fully utilized for the
9

10 applicable tax year, the remaining balance of that pool shall be
10

11 allocated to each of the two remaining tax credit pools in equal
11

12 amounts. If two of the tax credit pools as described in paragraphs
12

13 1 through 3 of this subsection are not fully utilized for the
13

14 applicable tax year, the remaining balances in both pools shall be
14

15 added together and the sum of those amounts shall be allocated to
15

16 the remaining tax credit pool.
16

17 The Tax Commission shall annually calculate and publish by the

18 first day of the affected taxable year a percentage by which the
18

19 credits authorized by this section shall be reduced so the total
19

20 amount of credits used to offset tax does not exceed each of the
20

21 limits provided in paragraphs 1 through 3 of this subsection. The
21

22 formula to be used for the percentage adjustment shall be Ten
22

23 Million Dollars ($10,000,000.00) divided by the credits claimed in
23

Req. No. 3559 Page 478
1 the second preceding year, with respect to any changes to the future
1

2 of the credit.
2

3 M. Pursuant to subsection L of this section, in the event the

4 tax credits authorized by this section exceed any of the limits
4

5 provided in paragraphs 1 through 3 of subsection L of this section
5

6 in any year, the Tax Commission shall permit any excess over Ten
6

7 Million Dollars ($10,000,000.00) but shall factor such excess into
7

8 the percentage adjustment formula for subsequent years with respect
8

9 to any changes to the future of the credit.
9

10 N. The Tax Commission shall notify the Office of the State

11 Secretary of Energy and Environment at any time when the amount of
11

12 claims for credits allowed pursuant to this section reaches eighty
12

13 percent (80%) of the total annual limit provided in subsection J of
13

14 this section. Upon such notification, the Secretary shall provide
14

15 notice to the Governor, President Pro Tempore of the Senate and
15

16 Speaker of the House of Representatives.
16

17 SECTION 128. REPEALER 68 O.S. 2021, Section 2357.22, as

18 last amended by Section 153, Chapter 452, O.S.L. 2024 (68 O.S. Supp.
18

19 2025, Section 2357.22), is hereby repealed.
19

20 SECTION 129. AMENDATORY 68 O.S. 2021, Section 2358, as

21 last amended by Section 155, Chapter 452, O.S.L. 2024 (68 O.S. Supp.
21

22 2025, Section 2358), is amended to read as follows:
22

23 Section 2358. For all tax years beginning after December 31,

24 1981, taxable income and adjusted gross income shall be adjusted to
24

Req. No. 3559 Page 479
1 arrive at Oklahoma taxable income and Oklahoma adjusted gross income
1

2 as required by this section.
2

3 A. The taxable income of any taxpayer shall be adjusted to

4 arrive at Oklahoma taxable income for corporations and Oklahoma
4

5 adjusted gross income for individuals, as follows:
5

6 1. There shall be added interest income on obligations of any

7 state or political subdivision thereto which is not otherwise
7

8 exempted pursuant to other laws of this state, to the extent that
8

9 such interest is not included in taxable income and adjusted gross
9

10 income.
10

11 2. There shall be deducted amounts included in such income that

12 the state is prohibited from taxing because of the provisions of the
12

13 Federal Constitution, the State Constitution, federal laws or laws
13

14 of Oklahoma.
14

15 3. The amount of any federal net operating loss deduction shall

16 be adjusted as follows:
16

17 a. For carryovers and carrybacks to taxable years

18 beginning before January 1, 1981, the amount of any

19 net operating loss deduction allowed to a taxpayer for

20 federal income tax purposes shall be reduced to an

21 amount which is the same portion thereof as the loss

22 from sources within this state, as determined pursuant

23 to this section and Section 2362 of this title, for

Req. No. 3559 Page 480
1 the taxable year in which such loss is sustained is of

2 the total loss for such year;

3 b. For carryovers and carrybacks to taxable years

4 beginning after December 31, 1980, the amount of any

5 net operating loss deduction allowed for the taxable

6 year shall be an amount equal to the aggregate of the

7 Oklahoma net operating loss carryovers and carrybacks

8 to such year. Oklahoma net operating losses shall be

9 separately determined by reference to Section 172 of

10 the Internal Revenue Code, 26 U.S.C., Section 172, as

11 modified by the Oklahoma Income Tax Act, Section 2351

12 et seq. of this title, and shall be allowed without

13 regard to the existence of a federal net operating

14 loss. For tax years beginning after December 31,

15 2000, and ending before January 1, 2008, the years to

16 which such losses may be carried shall be determined

17 solely by reference to Section 172 of the Internal

18 Revenue Code, 26 U.S.C., Section 172, with the

19 exception that the terms "net operating loss" and

20 "taxable income" shall be replaced with "Oklahoma net

21 operating loss" and "Oklahoma taxable income". For

22 tax years beginning after December 31, 2007, and

23 ending before January 1, 2009, years to which such

24 losses may be carried back shall be limited to two (2)

Req. No. 3559 Page 481
1 years. For tax years beginning after December 31,

2 2008, the years to which such losses may be carried

3 back shall be determined solely by reference to

4 Section 172 of the Internal Revenue Code, 26 U.S.C.,

5 Section 172, with the exception that the terms "net

6 operating loss" and "taxable income" shall be replaced

7 with "Oklahoma net operating loss" and "Oklahoma

8 taxable income".

9 4. Items of the following nature shall be allocated as

10 indicated. Allowable deductions attributable to items separately
10

11 allocable in subparagraphs a, b and c of this paragraph, whether or
11

12 not such items of income were actually received, shall be allocated
12

13 on the same basis as those items:
13

14 a. Income from real and tangible personal property, such

15 as rents, oil and mining production or royalties, and

16 gains or losses from sales of such property, shall be

17 allocated in accordance with the situs of such

18 property;

19 b. Income from intangible personal property, such as

20 interest, dividends, patent or copyright royalties,

21 and gains or losses from sales of such property, shall

22 be allocated in accordance with the domiciliary situs

23 of the taxpayer, except that:

Req. No. 3559 Page 482
1 (1) where such property has acquired a nonunitary

2 business or commercial situs apart from the

3 domicile of the taxpayer such income shall be

4 allocated in accordance with such business or

5 commercial situs; interest income from

6 investments held to generate working capital for

7 a unitary business enterprise shall be included

8 in apportionable income; a resident trust or

9 resident estate shall be treated as having a

10 separate commercial or business situs insofar as

11 undistributed income is concerned, but shall not

12 be treated as having a separate commercial or

13 business situs insofar as distributed income is

14 concerned,

15 (2) for taxable years beginning after December 31,

16 2003, capital or ordinary gains or losses from

17 the sale of an ownership interest in a publicly

18 traded partnership, as defined by Section 7704(b)

19 of the Internal Revenue Code, shall be allocated

20 to this state in the ratio of the original cost

21 of such partnership's tangible property in this

22 state to the original cost of such partnership's

23 tangible property everywhere, as determined at

24 the time of the sale; if more than fifty percent

Req. No. 3559 Page 483
1 (50%) of the value of the partnership's assets

2 consists of intangible assets, capital or

3 ordinary gains or losses from the sale of an

4 ownership interest in the partnership shall be

5 allocated to this state in accordance with the

6 sales factor of the partnership for its first

7 full tax period immediately preceding its tax

8 period during which the ownership interest in the

9 partnership was sold; the provisions of this

10 division shall only apply if the capital or

11 ordinary gains or losses from the sale of an

12 ownership interest in a partnership do not

13 constitute qualifying gain receiving capital

14 treatment as defined in subparagraph a of

15 paragraph 2 of subsection F of this section,

16 (3) income from such property which is required to be

17 allocated pursuant to the provisions of paragraph

18 5 of this subsection shall be allocated as herein

19 provided;

20 c. Net income or loss from a business activity which is

21 not a part of business carried on within or without

22 the state of a unitary character shall be separately

23 allocated to the state in which such activity is

24 conducted;

Req. No. 3559 Page 484
1 d. In the case of a manufacturing or processing

2 enterprise the business of which in Oklahoma this

3 state consists solely of marketing its products by:

4 (1) sales having a situs without this state, shipped

5 directly to a point from without the state to a

6 purchaser within the state, commonly known as

7 interstate sales,

8 (2) sales of the product stored in public warehouses

9 within the state pursuant to "in transit"

10 tariffs, as prescribed and allowed by the

11 Interstate Commerce Commission, to a purchaser

12 within the state,

13 (3) sales of the product stored in public warehouses

14 within the state where the shipment to such

15 warehouses is not covered by "in transit"

16 tariffs, as prescribed and allowed by the

17 Interstate Commerce Commission, to a purchaser

18 within or without the state,

19 the Oklahoma net income shall, at the option of the

20 taxpayer, be that portion of the total net income of

21 the taxpayer for federal income tax purposes derived

22 from the manufacture and/or processing and sales

23 everywhere as determined by the ratio of the sales

24 defined in this section made to the purchaser within

Req. No. 3559 Page 485
1 the state to the total sales everywhere. The term

2 "public warehouse" as used in this subparagraph means

3 a licensed public warehouse, the principal business of

4 which is warehousing merchandise for the public;

5 e. In the case of insurance companies, Oklahoma taxable

6 income shall be taxable income of the taxpayer for

7 federal tax purposes, as adjusted for the adjustments

8 provided pursuant to the provisions of paragraphs 1

9 and 2 of this subsection, apportioned as follows:

10 (1) except as otherwise provided by division (2) of

11 this subparagraph, taxable income of an insurance

12 company for a taxable year shall be apportioned

13 to this state by multiplying such income by a

14 fraction, the numerator of which is the direct

15 premiums written for insurance on property or

16 risks in this state, and the denominator of which

17 is the direct premiums written for insurance on

18 property or risks everywhere. For purposes of

19 this subsection, the term "direct premiums

20 written" means the total amount of direct

21 premiums written, assessments and annuity

22 considerations as reported for the taxable year

23 on the annual statement filed by the company with

24 the Insurance Commissioner in the form approved

Req. No. 3559 Page 486
1 by the National Association of Insurance

2 Commissioners, or such other form as may be

3 prescribed in lieu thereof,

4 (2) if the principal source of premiums written by an

5 insurance company consists of premiums for

6 reinsurance accepted by it, the taxable income of

7 such company shall be apportioned to this state

8 by multiplying such income by a fraction, the

9 numerator of which is the sum of (a) direct

10 premiums written for insurance on property or

11 risks in this state, plus (b) premiums written

12 for reinsurance accepted in respect of property

13 or risks in this state, and the denominator of

14 which is the sum of (c) direct premiums written

15 for insurance on property or risks everywhere,

16 plus (d) premiums written for reinsurance

17 accepted in respect of property or risks

18 everywhere. For purposes of this paragraph,

19 premiums written for reinsurance accepted in

20 respect of property or risks in this state,

21 whether or not otherwise determinable, may at the

22 election of the company be determined on the

23 basis of the proportion which premiums written

24 for insurance accepted from companies

Req. No. 3559 Page 487
1 commercially domiciled in Oklahoma this state

2 bears to premiums written for reinsurance

3 accepted from all sources, or alternatively in

4 the proportion which the sum of the direct

5 premiums written for insurance on property or

6 risks in this state by each ceding company from

7 which reinsurance is accepted bears to the sum of

8 the total direct premiums written by each such

9 ceding company for the taxable year.

10 5. The net income or loss remaining after the separate

11 allocation in paragraph 4 of this subsection, being that which is
11

12 derived from a unitary business enterprise, shall be apportioned to
12

13 this state on the basis of the arithmetical average of three factors
13

14 consisting of property, payroll and sales or gross revenue
14

15 enumerated as subparagraphs a, b and c of this paragraph. Net
15

16 income or loss as used in this paragraph includes that derived from
16

17 patent or copyright royalties, purchase discounts, and interest on
17

18 accounts receivable relating to or arising from a business activity,
18

19 the income from which is apportioned pursuant to this subsection,
19

20 including the sale or other disposition of such property and any
20

21 other property used in the unitary enterprise. Deductions used in
21

22 computing such net income or loss shall not include taxes based on
22

23 or measured by income. Provided, for corporations whose property
23

24 for purposes of the tax imposed by Section 2355 of this title has an
24

Req. No. 3559 Page 488
1 initial investment cost equaling or exceeding Two Hundred Million
1

2 Dollars ($200,000,000.00) and such investment is made on or after
2

3 July 1, 1997, or for corporations which expand their property or
3

4 facilities in this state and such expansion has an investment cost
4

5 equaling or exceeding Two Hundred Million Dollars ($200,000,000.00)
5

6 over a period not to exceed three (3) years, and such expansion is
6

7 commenced on or after January 1, 2000, the three factors shall be
7

8 apportioned with property and payroll, each comprising twenty-five
8

9 percent (25%) of the apportionment factor and sales comprising fifty
9

10 percent (50%) of the apportionment factor. The apportionment
10

11 factors shall be computed as follows:
11

12 a. The property factor is a fraction, the numerator of

13 which is the average value of the taxpayer's real and

14 tangible personal property owned or rented and used in

15 this state during the tax period and the denominator

16 of which is the average value of all the taxpayer's

17 real and tangible personal property everywhere owned

18 or rented and used during the tax period.

19 (1) Property, the income from which is separately

20 allocated in paragraph 4 of this subsection,

21 shall not be included in determining this

22 fraction. The numerator of the fraction shall

23 include a portion of the investment in

24 transportation and other equipment having no

Req. No. 3559 Page 489
1 fixed situs, such as rolling stock, buses, trucks

2 and trailers, including machinery and equipment

3 carried thereon, airplanes, salespersons'

4 automobiles and other similar equipment, in the

5 proportion that miles traveled in Oklahoma this

6 state by such equipment bears to total miles

7 traveled,

8 (2) Property owned by the taxpayer is valued at its

9 original cost. Property rented by the taxpayer

10 is valued at eight times the net annual rental

11 rate. Net annual rental rate is the annual

12 rental rate paid by the taxpayer, less any annual

13 rental rate received by the taxpayer from

14 subrentals,

15 (3) The average value of property shall be determined

16 by averaging the values at the beginning and

17 ending of the tax period but the Oklahoma Tax

18 Commission may require the averaging of monthly

19 values during the tax period if reasonably

20 required to reflect properly the average value of

21 the taxpayer's property;

22 b. The payroll factor is a fraction, the numerator of

23 which is the total compensation for services rendered

24 in the state during the tax period, and the

Req. No. 3559 Page 490
1 denominator of which is the total compensation for

2 services rendered everywhere during the tax period.

3 "Compensation", as used in this subsection means those

4 paid-for services to the extent related to the unitary

5 business but does not include officers' salaries,

6 wages and other compensation.

7 (1) In the case of a transportation enterprise, the

8 numerator of the fraction shall include a portion

9 of such expenditure in connection with employees

10 operating equipment over a fixed route, such as

11 railroad employees, airline pilots, or bus

12 drivers, in this state only a part of the time,

13 in the proportion that mileage traveled in

14 Oklahoma this state bears to total mileage

15 traveled by such employees,

16 (2) In any case the numerator of the fraction shall

17 include a portion of such expenditures in

18 connection with itinerant employees, such as

19 traveling salespersons, in this state only a part

20 of the time, in the proportion that time spent in

21 Oklahoma this state bears to total time spent in

22 furtherance of the enterprise by such employees;

23 c. The sales factor is a fraction, the numerator of which

24 is the total sales or gross revenue of the taxpayer in

Req. No. 3559 Page 491
1 this state during the tax period, and the denominator

2 of which is the total sales or gross revenue of the

3 taxpayer everywhere during the tax period. "Sales",

4 as used in this subsection does not include sales or

5 gross revenue which are separately allocated in

6 paragraph 4 of this subsection.

7 (1) Sales of tangible personal property have a situs

8 in this state if the property is delivered or

9 shipped to a purchaser other than the United

10 States government, within this state regardless

11 of the FOB point or other conditions of the sale;

12 or the property is shipped from an office, store,

13 warehouse, factory or other place of storage in

14 this state and (a) the purchaser is the United

15 States government or (b) the taxpayer is not

16 doing business in the state of the destination of

17 the shipment.

18 (2) In the case of a railroad or interurban railway

19 enterprise, the numerator of the fraction shall

20 not be less than the allocation of revenues to

21 this state as shown in its annual report to the

22 Corporation Commission.

23 (3) In the case of an airline, truck or bus

24 enterprise or freight car, tank car, refrigerator

Req. No. 3559 Page 492
1 car or other railroad equipment enterprise, the

2 numerator of the fraction shall include a portion

3 of revenue from interstate transportation in the

4 proportion that interstate mileage traveled in

5 Oklahoma bears to total interstate mileage

6 traveled.

7 (4) In the case of an oil, gasoline or gas pipeline

8 enterprise, the numerator of the fraction shall

9 be either the total of traffic units of the

10 enterprise within Oklahoma or the revenue

11 allocated to Oklahoma based upon miles moved, at

12 the option of the taxpayer, and the denominator

13 of which shall be the total of traffic units of

14 the enterprise or the revenue of the enterprise

15 everywhere as appropriate to the numerator. A

16 "traffic unit" is hereby defined as the

17 transportation for a distance of one (1) mile of

18 one (1) barrel of oil, one (1) gallon of gasoline

19 or one thousand (1,000) cubic feet of natural or

20 casinghead gas, as the case may be.

21 (5) In the case of a telephone or telegraph or other

22 communication enterprise, the numerator of the

23 fraction shall include that portion of the

24 interstate revenue as is allocated pursuant to

Req. No. 3559 Page 493
1 the accounting procedures prescribed by the

2 Federal Communications Commission; provided that

3 in respect to each corporation or business entity

4 required by the Federal Communications Commission

5 to keep its books and records in accordance with

6 a uniform system of accounts prescribed by such

7 Commission, the intrastate net income shall be

8 determined separately in the manner provided by

9 such uniform system of accounts and only the

10 interstate income shall be subject to allocation

11 pursuant to the provisions of this subsection.

12 Provided further, that the gross revenue factors

13 shall be those as are determined pursuant to the

14 accounting procedures prescribed by the Federal

15 Communications Commission.

16 In any case where the apportionment of the three factors

17 prescribed in this paragraph attributes to Oklahoma this state a
17

18 portion of net income of the enterprise out of all appropriate
18

19 proportion to the property owned and/or business transacted within
19

20 this state, because of the fact that one or more of the factors so
20

21 prescribed are not employed to any appreciable extent in furtherance
21

22 of the enterprise; or because one or more factors not so prescribed
22

23 are employed to a considerable extent in furtherance of the
23

24 enterprise; or because of other reasons, the Tax Commission is
24

Req. No. 3559 Page 494
1 empowered to permit, after a showing by taxpayer that an excessive
1

2 portion of net income has been attributed to Oklahoma this state, or
2

3 require, when in its judgment an insufficient portion of net income
3

4 has been attributed to Oklahoma this state, the elimination,
4

5 substitution, or use of additional factors, or reduction or increase
5

6 in the weight of such prescribed factors. Provided, however, that
6

7 any such variance from such prescribed factors which has the effect
7

8 of increasing the portion of net income attributable to Oklahoma
8

9 this state must not be inherently arbitrary, and application of the
9

10 recomputed final apportionment to the net income of the enterprise
10

11 must attribute to Oklahoma this state only a reasonable portion
11

12 thereof.
12

13 6. For calendar years 1997 and 1998, the owner of a new or

14 expanded agricultural commodity processing facility in this state
14

15 may exclude from Oklahoma taxable income, or in the case of an
15

16 individual, the Oklahoma adjusted gross income, fifteen percent
16

17 (15%) of the investment by the owner in the new or expanded
17

18 agricultural commodity processing facility. For calendar year 1999,
18

19 and all subsequent years, the percentage, not to exceed fifteen
19

20 percent (15%), available to the owner of a new or expanded
20

21 agricultural commodity processing facility in this state claiming
21

22 the exemption shall be adjusted annually so that the total estimated
22

23 reduction in tax liability does not exceed One Million Dollars
23

24 ($1,000,000.00) annually. The Tax Commission shall promulgate rules
24

Req. No. 3559 Page 495
1 for determining the percentage of the investment which each eligible
1

2 taxpayer may exclude. The exclusion provided by this paragraph
2

3 shall be taken in the taxable year when the investment is made. In
3

4 the event the total reduction in tax liability authorized by this
4

5 paragraph exceeds One Million Dollars ($1,000,000.00) in any
5

6 calendar year, the Tax Commission shall permit any excess over One
6

7 Million Dollars ($1,000,000.00) and shall factor such excess into
7

8 the percentage for subsequent years. Any amount of the exemption
8

9 permitted to be excluded pursuant to the provisions of this
9

10 paragraph but not used in any year may be carried forward as an
10

11 exemption from income pursuant to the provisions of this paragraph
11

12 for a period not exceeding six (6) years following the year in which
12

13 the investment was originally made.
13

14 For purposes of this paragraph:

15 a. "Agricultural commodity processing facility" means

16 building buildings, structures, fixtures and

17 improvements used or operated primarily for the

18 processing or production of marketable products from

19 agricultural commodities. The term shall also mean a

20 dairy operation that requires a depreciable investment

21 of at least Two Hundred Fifty Thousand Dollars

22 ($250,000.00) and which produces milk from dairy cows.

23 The term does not include a facility that provides

Req. No. 3559 Page 496
1 only, and nothing more than, storage, cleaning, drying

2 or transportation of agricultural commodities, and

3 b. "Facility" means each part of the facility which is

4 used in a process primarily for:

5 (1) the processing of agricultural commodities,

6 including receiving or storing agricultural

7 commodities, or the production of milk at a dairy

8 operation,

9 (2) transporting the agricultural commodities or

10 product before, during or after the processing,

11 or

12 (3) packaging or otherwise preparing the product for

13 sale or shipment.

14 7. Despite any provision to the contrary in paragraph 3 of this

15 subsection, for taxable years beginning after December 31, 1999, in
15

16 the case of a taxpayer which has a farming loss, such farming loss
16

17 shall be considered a net operating loss carryback in accordance
17

18 with and to the extent of the Internal Revenue Code, 26 U.S.C.,
18

19 Section 172(b)(G). However, the amount of the net operating loss
19

20 carryback shall not exceed the lesser of:
20

21 a. Sixty Thousand Dollars ($60,000.00), or

22 b. the loss properly shown on Schedule F of the Internal

23 Revenue Service Form 1040 reduced by one-half (1/2) of

Req. No. 3559 Page 497
1 the income from all other sources other than reflected

2 on Schedule F.

3 8. In taxable years beginning after December 31, 1995, all

4 qualified wages equal to the federal income tax credit set forth in
4

5 26 U.S.C.A., Section 45A, shall be deducted from taxable income.
5

6 The deduction allowed pursuant to this paragraph shall only be
6

7 permitted for the tax years in which the federal tax credit pursuant
7

8 to 26 U.S.C.A., Section 45A, is allowed. For purposes of this
8

9 paragraph, "qualified wages" means those wages used to calculate the
9

10 federal credit pursuant to 26 U.S.C.A., Section 45A.
10

11 9. In taxable years beginning after December 31, 2005, an

12 employer that is eligible for and utilizes the Safety Pays OSHA
12

13 Consultation Service provided by the Oklahoma Department of Labor
13

14 shall receive an exemption from taxable income in the amount of One
14

15 Thousand Dollars ($1,000.00) for the tax year that the service is
15

16 utilized.
16

17 10. For taxable years beginning on or after January 1, 2010,

18 there shall be added to Oklahoma taxable income an amount equal to
18

19 the amount of deferred income not included in such taxable income
19

20 pursuant to Section 108(i)(1) of the Internal Revenue Code of 1986
20

21 as amended by Section 1231 of the American Recovery and Reinvestment
21

22 Act of 2009 (P.L. No. 111-5). There shall be subtracted from
22

23 Oklahoma taxable income an amount equal to the amount of deferred
23

24 income included in such taxable income pursuant to Section 108(i)(1)
24

Req. No. 3559 Page 498
1 of the Internal Revenue Code by Section 1231 of the American
1

2 Recovery and Reinvestment Act of 2009 (P.L. No. 111-5).
2

3 11. For taxable years beginning on or after January 1, 2019,

4 there shall be subtracted from Oklahoma taxable income or adjusted
4

5 gross income any item of income or gain, and there shall be added to
5

6 Oklahoma taxable income or adjusted gross income any item of loss or
6

7 deduction that in the absence of an election pursuant to the
7

8 provisions of the Pass-Through Entity Tax Equity Act of 2019 would
8

9 be allocated to a member or to an indirect member of an electing
9

10 pass-through entity pursuant to Section 2351 et seq. of this title,
10

11 if (i) the electing pass-through entity has accounted for such item
11

12 in computing its Oklahoma net entity income or loss pursuant to the
12

13 provisions of the Pass-Through Entity Tax Equity Act of 2019, and
13

14 (ii) the total amount of tax attributable to any resulting Oklahoma
14

15 net entity income has been paid. The Oklahoma Tax Commission shall
15

16 promulgate rules for the reporting of such exclusion to direct and
16

17 indirect members of the electing pass-through entity. As used in
17

18 this paragraph, "electing pass-through entity", "indirect member",
18

19 and "member" shall be defined in the same manner as prescribed by
19

20 Section 2355.1P-2 of this title. Notwithstanding the application of
20

21 this paragraph, the adjusted tax basis of any ownership interest in
21

22 a pass-through entity for purposes of Section 2351 et seq. of this
22

23 title shall be equal to its adjusted tax basis for federal income
23

24 tax purposes.
24

Req. No. 3559 Page 499
1 12. For tax year 2025 and subsequent tax years, an employer

2 providing paid leave to an employee for the purpose of volunteering
2

3 as a poll worker with a county election board in this state shall
3

4 receive an exemption from taxable income in the amount of One
4

5 Hundred Dollars ($100.00) for each day of leave provided in the tax
5

6 year. The employer shall provide documentation from the applicable
6

7 county election board showing the employee volunteered, upon request
7

8 of the Oklahoma Tax Commission.
8

9 B. 1. The taxable income of any corporation shall be further

10 adjusted to arrive at Oklahoma taxable income, except those
10

11 corporations electing treatment as provided in subchapter S of the
11

12 Internal Revenue Code, 26 U.S.C., Section 1361 et seq., and Section
12

13 2365 of this title, deductions pursuant to the provisions of the
13

14 Accelerated Cost Recovery System as defined and allowed in the
14

15 Economic Recovery Tax Act of 1981, Public Law 97-34, 26 U.S.C.,
15

16 Section 168, for depreciation of assets placed into service after
16

17 December 31, 1981, shall not be allowed in calculating Oklahoma
17

18 taxable income. Such corporations shall be allowed a deduction for
18

19 depreciation of assets placed into service after December 31, 1981,
19

20 in accordance with provisions of the Internal Revenue Code, 26
20

21 U.S.C., Section 1 et seq., in effect immediately prior to the
21

22 enactment of the Accelerated Cost Recovery System. The Oklahoma tax
22

23 basis for all such assets placed into service after December 31,
23

24 1981, calculated in this section shall be retained and utilized for
24

Req. No. 3559 Page 500
1 all Oklahoma income tax purposes through the final disposition of
1

2 such assets.
2

3 Notwithstanding any other provisions of the Oklahoma Income Tax

4 Act, Section 2351 et seq. of this title, or of the Internal Revenue
4

5 Code to the contrary, this subsection shall control calculation of
5

6 depreciation of assets placed into service after December 31, 1981,
6

7 and before January 1, 1983.
7

8 For assets placed in service and held by a corporation in which

9 accelerated cost recovery system the Accelerated Cost Recovery
9

10 System was previously disallowed, an adjustment to taxable income is
10

11 required in the first taxable year beginning after December 31,
11

12 1982, to reconcile the basis of such assets to the basis allowed in
12

13 the Internal Revenue Code. The purpose of this adjustment is to
13

14 equalize the basis and allowance for depreciation accounts between
14

15 that reported to the Internal Revenue Service and that reported to
15

16 Oklahoma this state.
16

17 2. For tax years beginning on or after January 1, 2009, and

18 ending on or before December 31, 2009, there shall be added to
18

19 Oklahoma taxable income any amount in excess of One Hundred Seventy-
19

20 five Thousand Dollars ($175,000.00) which has been deducted as a
20

21 small business expense under Internal Revenue Code, Section 179 as
21

22 provided in the American Recovery and Reinvestment Act of 2009.
22

23 C. 1. For taxable years beginning after December 31, 1987, the

24 taxable income of any corporation shall be further adjusted to
24

Req. No. 3559 Page 501
1 arrive at Oklahoma taxable income for transfers of technology to
1

2 qualified small businesses located in Oklahoma this state. Such
2

3 transferor corporation shall be allowed an exemption from taxable
3

4 income of an amount equal to the amount of royalty payment received
4

5 as a result of such transfer; provided, however, such amount shall
5

6 not exceed ten percent (10%) of the amount of gross proceeds
6

7 received by such transferor corporation as a result of the
7

8 technology transfer. Such exemption shall be allowed for a period
8

9 not to exceed ten (10) years from the date of receipt of the first
9

10 royalty payment accruing from such transfer. No exemption may be
10

11 claimed for transfers of technology to qualified small businesses
11

12 made prior to January 1, 1988.
12

13 2. For purposes of this subsection:

14 a. "Qualified small business" means an entity, whether

15 organized as a corporation, partnership, or

16 proprietorship, organized for profit with its

17 principal place of business located within this state

18 and which meets the following criteria:

19 (1) Capitalization of not more than Two Hundred Fifty

20 Thousand Dollars ($250,000.00),

21 (2) Having at least fifty percent (50%) of its

22 employees and assets located in Oklahoma this

23 state at the time of the transfer, and

Req. No. 3559 Page 502
1 (3) Not a subsidiary or affiliate of the transferor

2 corporation;

3 b. "Technology" means a proprietary process, formula,

4 pattern, device or compilation of scientific or

5 technical information which is not in the public

6 domain;

7 c. "Transferor corporation" means a corporation which is

8 the exclusive and undisputed owner of the technology

9 at the time the transfer is made; and

10 d. "Gross proceeds" means the total amount of

11 consideration for the transfer of technology, whether

12 the consideration is in money or otherwise.

13 D. 1. For taxable years beginning after December 31, 2005, the

14 taxable income of any corporation, estate or trust, shall be further
14

15 adjusted for qualifying gains receiving capital treatment. Such
15

16 corporations, estates or trusts shall be allowed a deduction from
16

17 Oklahoma taxable income for the amount of qualifying gains receiving
17

18 capital treatment earned by the corporation, estate or trust during
18

19 the taxable year and included in the federal taxable income of such
19

20 corporation, estate or trust.
20

21 2. As used in this subsection:

22 a. "qualifying gains receiving capital treatment" means

23 the amount of net capital gains, as defined in Section

24 1222(11) of the Internal Revenue Code, included in the

Req. No. 3559 Page 503
1 federal income tax return of the corporation, estate

2 or trust that result from:

3 (1) the sale of real property or tangible personal

4 property located within Oklahoma this state that

5 has been directly or indirectly owned by the

6 corporation, estate or trust for a holding period

7 of at least five (5) years prior to the date of

8 the transaction from which such net capital gains

9 arise,

10 (2) the sale of stock or on the sale of an ownership

11 interest in an Oklahoma company, limited

12 liability company, or partnership where such

13 stock or ownership interest has been directly or

14 indirectly owned by the corporation, estate or

15 trust for a holding period of at least three (3)

16 years prior to the date of the transaction from

17 which the net capital gains arise, or

18 (3) the sale of real property, tangible personal

19 property or intangible personal property located

20 within Oklahoma as part of the sale of all or

21 substantially all of the assets of an Oklahoma

22 company, limited liability company, or

23 partnership where such property has been directly

24 or indirectly owned by such entity owned by the

Req. No. 3559 Page 504
1 owners of such entity, and used in or derived

2 from such entity for a period of at least three

3 (3) years prior to the date of the transaction

4 from which the net capital gains arise,

5 b. "holding period" means an uninterrupted period of

6 time. The holding period shall include any additional

7 period when the property was held by another

8 individual or entity, if such additional period is

9 included in the taxpayer's holding period for the

10 asset pursuant to the Internal Revenue Code,

11 c. "Oklahoma company", "limited liability company", or

12 "partnership" means an entity whose primary

13 headquarters have been located in Oklahoma for at

14 least three (3) uninterrupted years prior to the date

15 of the transaction from which the net capital gains

16 arise,

17 d. "direct" means the taxpayer directly owns the asset,

18 and

19 e. "indirect" means the taxpayer owns an interest in a

20 pass-through entity (or chain of pass-through

21 entities) that sells the asset that gives rise to the

22 qualifying gains receiving capital treatment.

23 (1) With respect to sales of real property or

24 tangible personal property located within

Req. No. 3559 Page 505
1 Oklahoma this state, the deduction described in

2 this subsection shall not apply unless the pass-

3 through entity that makes the sale has held the

4 property for not less than five (5) uninterrupted

5 years prior to the date of the transaction that

6 created the capital gain, and each pass-through

7 entity included in the chain of ownership has

8 been a member, partner, or shareholder of the

9 pass-through entity in the tier immediately below

10 it for an uninterrupted period of not less than

11 five (5) years.

12 (2) With respect to sales of stock or ownership

13 interest in or sales of all or substantially all

14 of the assets of an Oklahoma company, limited

15 liability company, or partnership, the deduction

16 described in this subsection shall not apply

17 unless the pass-through entity that makes the

18 sale has held the stock or ownership interest or

19 the assets for not less than three (3)

20 uninterrupted years prior to the date of the

21 transaction that created the capital gain, and

22 each pass-through entity included in the chain of

23 ownership has been a member, partner or

24 shareholder of the pass-through entity in the

Req. No. 3559 Page 506
1 tier immediately below it for an uninterrupted

2 period of not less than three (3) years.

3 E. The Oklahoma adjusted gross income of any individual

4 taxpayer shall be further adjusted as follows to arrive at Oklahoma
4

5 taxable income:
5

6 1. a. In the case of individuals, there shall be added or

7 deducted, as the case may be, the difference necessary

8 to allow personal exemptions of One Thousand Dollars

9 ($1,000.00) in lieu of the personal exemptions allowed

10 by the Internal Revenue Code.

11 b. There shall be allowed an additional exemption of One

12 Thousand Dollars ($1,000.00) for each taxpayer or

13 spouse who is blind at the close of the tax year. For

14 purposes of this subparagraph, an individual is blind

15 only if the central visual acuity of the individual

16 does not exceed 20/200 in the better eye with

17 correcting lenses, or if the visual acuity of the

18 individual is greater than 20/200, but is accompanied

19 by a limitation in the fields of vision such that the

20 widest diameter of the visual field subtends an angle

21 no greater than twenty (20) degrees.

22 c. There shall be allowed an additional exemption of One

23 Thousand Dollars ($1,000.00) for each taxpayer or

24 spouse who is sixty-five (65) years of age or older at

Req. No. 3559 Page 507
1 the close of the tax year based upon the filing status

2 and federal adjusted gross income of the taxpayer.

3 Taxpayers with the following filing status may claim

4 this exemption if the federal adjusted gross income

5 does not exceed:

6 (1) Twenty-five Thousand Dollars ($25,000.00) if

7 married and filing jointly,

8 (2) Twelve Thousand Five Hundred Dollars ($12,500.00)

9 if married and filing separately,

10 (3) Fifteen Thousand Dollars ($15,000.00) if single,

11 and

12 (4) Nineteen Thousand Dollars ($19,000.00) if a

13 qualifying head of household.

14 Provided, for taxable years beginning after December

15 31, 1999, amounts included in the calculation of

16 federal adjusted gross income pursuant to the

17 conversion of a traditional individual retirement

18 account to a Roth individual retirement account shall

19 be excluded from federal adjusted gross income for

20 purposes of the income thresholds provided in this

21 subparagraph.

22 2. a. For taxable years beginning on or before December 31,

23 2005, in the case of individuals who use the standard

24 deduction in determining taxable income, there shall

Req. No. 3559 Page 508
1 be added or deducted, as the case may be, the

2 difference necessary to allow a standard deduction in

3 lieu of the standard deduction allowed by the Internal

4 Revenue Code, in an amount equal to the larger of

5 fifteen percent (15%) of the Oklahoma adjusted gross

6 income or One Thousand Dollars ($1,000.00), but not to

7 exceed Two Thousand Dollars ($2,000.00), except that

8 in the case of a married individual filing a separate

9 return such deduction shall be the larger of fifteen

10 percent (15%) of such Oklahoma adjusted gross income

11 or Five Hundred Dollars ($500.00), but not to exceed

12 the maximum amount of One Thousand Dollars

13 ($1,000.00).

14 b. For taxable years beginning on or after January 1,

15 2006, and before January 1, 2007, in the case of

16 individuals who use the standard deduction in

17 determining taxable income, there shall be added or

18 deducted, as the case may be, the difference necessary

19 to allow a standard deduction in lieu of the standard

20 deduction allowed by the Internal Revenue Code, in an

21 amount equal to:

22 (1) Three Thousand Dollars ($3,000.00), if the filing

23 status is married filing joint, head of household

24 or qualifying widow, or

Req. No. 3559 Page 509
1 (2) Two Thousand Dollars ($2,000.00), if the filing

2 status is single or married filing separate.

3 c. For the taxable year beginning on January 1, 2007, and

4 ending December 31, 2007, in the case of individuals

5 who use the standard deduction in determining taxable

6 income, there shall be added or deducted, as the case

7 may be, the difference necessary to allow a standard

8 deduction in lieu of the standard deduction allowed by

9 the Internal Revenue Code, in an amount equal to:

10 (1) Five Thousand Five Hundred Dollars ($5,500.00),

11 if the filing status is married filing joint or

12 qualifying widow, or

13 (2) Four Thousand One Hundred Twenty-five Dollars

14 ($4,125.00) for a head of household, or

15 (3) Two Thousand Seven Hundred Fifty Dollars

16 ($2,750.00), if the filing status is single or

17 married filing separate.

18 d. For the taxable year beginning on January 1, 2008, and

19 ending December 31, 2008, in the case of individuals

20 who use the standard deduction in determining taxable

21 income, there shall be added or deducted, as the case

22 may be, the difference necessary to allow a standard

23 deduction in lieu of the standard deduction allowed by

24 the Internal Revenue Code, in an amount equal to:

Req. No. 3559 Page 510
1 (1) Six Thousand Five Hundred Dollars ($6,500.00), if

2 the filing status is married filing joint or

3 qualifying widow,

4 (2) Four Thousand Eight Hundred Seventy-five Dollars

5 ($4,875.00) for a head of household, or

6 (3) Three Thousand Two Hundred Fifty Dollars

7 ($3,250.00), if the filing status is single or

8 married filing separate.

9 e. For the taxable year beginning on January 1, 2009, and

10 ending December 31, 2009, in the case of individuals

11 who use the standard deduction in determining taxable

12 income, there shall be added or deducted, as the case

13 may be, the difference necessary to allow a standard

14 deduction in lieu of the standard deduction allowed by

15 the Internal Revenue Code, in an amount equal to:

16 (1) Eight Thousand Five Hundred Dollars ($8,500.00),

17 if the filing status is married filing joint or

18 qualifying widow,

19 (2) Six Thousand Three Hundred Seventy-five Dollars

20 ($6,375.00) for a head of household, or

21 (3) Four Thousand Two Hundred Fifty Dollars

22 ($4,250.00), if the filing status is single or

23 married filing separate.

Req. No. 3559 Page 511
1 Oklahoma adjusted gross income shall be increased by

2 any amounts paid for motor vehicle excise taxes which

3 were deducted as allowed by the Internal Revenue Code.

4 f. For taxable years beginning on or after January 1,

5 2010, and ending on December 31, 2016, in the case of

6 individuals who use the standard deduction in

7 determining taxable income, there shall be added or

8 deducted, as the case may be, the difference necessary

9 to allow a standard deduction equal to the standard

10 deduction allowed by the Internal Revenue Code, based

11 upon the amount and filing status prescribed by such

12 Code for purposes of filing federal individual income

13 tax returns.

14 g. For taxable years beginning on or after January 1,

15 2017, in the case of individuals who use the standard

16 deduction in determining taxable income, there shall

17 be added or deducted, as the case may be, the

18 difference necessary to allow a standard deduction in

19 lieu of the standard deduction allowed by the Internal

20 Revenue Code, as follows:

21 (1) Six Thousand Three Hundred Fifty Dollars

22 ($6,350.00) for single or married filing

23 separately,

Req. No. 3559 Page 512
1 (2) Twelve Thousand Seven Hundred Dollars

2 ($12,700.00) for married filing jointly or

3 qualifying widower with dependent child, and

4 (3) Nine Thousand Three Hundred Fifty Dollars

5 ($9,350.00) for head of household.

6 3. a. In the case of resident and part-year resident

7 individuals having adjusted gross income from sources

8 both within and without the state, the itemized or

9 standard deductions and personal exemptions shall be

10 reduced to an amount which is the same portion of the

11 total thereof as Oklahoma adjusted gross income is of

12 adjusted gross income. To the extent itemized

13 deductions include allowable moving expense, proration

14 of moving expense shall not be required or permitted

15 but allowable moving expense shall be fully deductible

16 for those taxpayers moving within or into Oklahoma

17 this state and no part of moving expense shall be

18 deductible for those taxpayers moving without or out

19 of Oklahoma this state. All other itemized or

20 standard deductions and personal exemptions shall be

21 subject to proration as provided by law.

22 b. For taxable years beginning on or after January 1,

23 2018, the net amount of itemized deductions allowable

24 on an Oklahoma income tax return, subject to the

Req. No. 3559 Page 513
1 provisions of paragraph 24 of this subsection, shall

2 not exceed Seventeen Thousand Dollars ($17,000.00).

3 For purposes of this subparagraph, charitable

4 contributions and medical expenses deductible for

5 federal income tax purposes shall be excluded from the

6 amount of Seventeen Thousand Dollars ($17,000.00) as

7 specified by this subparagraph.

8 4. A resident individual with a physical disability

9 constituting a substantial handicap to employment may deduct from
9

10 Oklahoma adjusted gross income such expenditures to modify a motor
10

11 vehicle, home or workplace as are necessary to compensate for his or
11

12 her handicap. A veteran certified by the Department of Veterans
12

13 Affairs of the federal government as having a service-connected
13

14 disability shall be conclusively presumed to be an individual with a
14

15 physical disability constituting a substantial handicap to
15

16 employment. The Tax Commission shall promulgate rules containing a
16

17 list of combinations of common disabilities and modifications which
17

18 may be presumed to qualify for this deduction. The Tax Commission
18

19 shall prescribe necessary requirements for verification.
19

20 5. a. Before July 1, 2010, the first One Thousand Five

21 Hundred Dollars ($1,500.00) received by any person

22 from the United States as salary or compensation in

23 any form, other than retirement benefits, as a member

Req. No. 3559 Page 514
1 of any component of the Armed Forces of the United

2 States shall be deducted from taxable income.

3 b. On or after July 1, 2010, one hundred percent (100%)

4 of the income received by any person from the United

5 States as salary or compensation in any form, other

6 than retirement benefits, as a member of any component

7 of the Armed Forces of the United States shall be

8 deducted from taxable income.

9 c. Whenever the filing of a timely income tax return by a

10 member of the Armed Forces of the United States is

11 made impracticable or impossible of accomplishment by

12 reason of:

13 (1) absence from the United States, which term

14 includes only the states and the District of

15 Columbia,

16 (2) absence from the State of Oklahoma this state

17 while on active duty, or

18 (3) confinement in a hospital within the United

19 States for treatment of wounds, injuries or

20 disease,

21 the time for filing a return and paying an income tax

22 shall be and is hereby extended without incurring

23 liability for interest or penalties, to the fifteenth

24 day of the third month following the month in which:

Req. No. 3559 Page 515
1 (a) Such individual shall return to the United

2 States if the extension is granted pursuant

3 to subparagraph a of this paragraph, return

4 to the State of Oklahoma this state if the

5 extension is granted pursuant to

6 subparagraph b of this paragraph or be

7 discharged from such hospital if the

8 extension is granted pursuant to

9 subparagraph c of this paragraph, or

10 (b) An executor, administrator, or conservator

11 of the estate of the taxpayer is appointed,

12 whichever event occurs the earliest.

13 Provided, that the Tax Commission may, in its discretion, grant

14 any member of the Armed Forces of the United States an extension of
14

15 time for filing of income tax returns and payment of income tax
15

16 without incurring liabilities for interest or penalties. Such
16

17 extension may be granted only when in the judgment of the Tax
17

18 Commission a good cause exists therefor and may be for a period in
18

19 excess of six (6) months. A record of every such extension granted,
19

20 and the reason therefor, shall be kept.
20

21 6. Before July 1, 2010, the salary or any other form of

22 compensation, received from the United States by a member of any
22

23 component of the Armed Forces of the United States, shall be
23

24 deducted from taxable income during the time in which the person is
24

Req. No. 3559 Page 516
1 detained by the enemy in a conflict, is a prisoner of war or is
1

2 missing in action and not deceased; provided, after July 1, 2010,
2

3 all such salary or compensation shall be subject to the deduction as
3

4 provided pursuant to paragraph 5 of this subsection.
4

5 7. a. An individual taxpayer, whether resident or

6 nonresident, may deduct an amount equal to the federal

7 income taxes paid by the taxpayer during the taxable

8 year.

9 b. Federal taxes as described in subparagraph a of this

10 paragraph shall be deductible by any individual

11 taxpayer, whether resident or nonresident, only to the

12 extent they relate to income subject to taxation

13 pursuant to the provisions of the Oklahoma Income Tax

14 Act. The maximum amount allowable in the preceding

15 paragraph shall be prorated on the ratio of the

16 Oklahoma adjusted gross income to federal adjusted

17 gross income.

18 c. For the purpose of this paragraph, "federal income

19 taxes paid" shall mean federal income taxes, surtaxes

20 imposed on incomes or excess profits taxes, as though

21 the taxpayer was on the accrual basis. In determining

22 the amount of deduction for federal income taxes for

23 tax year 2001, the amount of the deduction shall not

24 be adjusted by the amount of any accelerated ten

Req. No. 3559 Page 517
1 percent (10%) tax rate bracket credit or advanced

2 refund of the credit received during the tax year

3 provided pursuant to the federal Economic Growth and

4 Tax Relief Reconciliation Act of 2001, P.L. No. 107-

5 16, and the advanced refund of such credit shall not

6 be subject to taxation.

7 d. The provisions of this paragraph shall apply to all

8 taxable years ending after December 31, 1978, and

9 beginning before January 1, 2006.

10 8. Retirement benefits not to exceed Five Thousand Five Hundred

11 Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five
11

12 Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand
12

13 Dollars ($10,000.00) for the 2006 tax year and all subsequent tax
13

14 years, which are received by an individual from the civil service of
14

15 the United States, the Oklahoma Public Employees Retirement System,
15

16 the Teachers' Retirement System of Oklahoma, the Oklahoma Law
16

17 Enforcement Retirement System, the Oklahoma Firefighters Pension and
17

18 Retirement System, the Oklahoma Police Pension and Retirement
18

19 System, the employee retirement systems created by counties pursuant
19

20 to Section 951 et seq. of Title 19 of the Oklahoma Statutes, the
20

21 Uniform Retirement System for Justices and Judges, the Oklahoma
21

22 Wildlife Conservation Department Retirement Fund, the Oklahoma
22

23 Employment Security Commission Retirement Plan, or the employee
23

24 retirement systems created by municipalities pursuant to Section 48-
24

Req. No. 3559 Page 518
1 101 et seq. of Title 11 of the Oklahoma Statutes shall be exempt
1

2 from taxable income.
2

3 9. In taxable years beginning after December 3l, 1984, Social

4 Security benefits received by an individual shall be exempt from
4

5 taxable income, to the extent such benefits are included in the
5

6 federal adjusted gross income pursuant to the provisions of Section
6

7 86 of the Internal Revenue Code, 26 U.S.C., Section 86.
7

8 10. For taxable years beginning after December 31, 1994, lump-

9 sum distributions from employer plans of deferred compensation,
9

10 which are not qualified plans within the meaning of Section 401(a)
10

11 of the Internal Revenue Code, 26 U.S.C., Section 401(a), and which
11

12 are deposited in and accounted for within a separate bank account or
12

13 brokerage account in a financial institution within this state,
13

14 shall be excluded from taxable income in the same manner as a
14

15 qualifying rollover contribution to an individual retirement account
15

16 within the meaning of Section 408 of the Internal Revenue Code, 26
16

17 U.S.C., Section 408. Amounts withdrawn from such bank or brokerage
17

18 account, including any earnings thereon, shall be included in
18

19 taxable income when withdrawn in the same manner as withdrawals from
19

20 individual retirement accounts within the meaning of Section 408 of
20

21 the Internal Revenue Code.
21

22 11. In taxable years beginning after December 31, 1995,

23 contributions made to and interest received from a medical savings
23

Req. No. 3559 Page 519
1 account established pursuant to Sections 2621 through 2623 of Title
1

2 63 of the Oklahoma Statutes shall be exempt from taxable income.
2

3 12. For taxable years beginning after December 31, 1996, the

4 Oklahoma adjusted gross income of any individual taxpayer who is a
4

5 swine or poultry producer may be further adjusted for the deduction
5

6 for depreciation allowed for new construction or expansion costs
6

7 which may be computed using the same depreciation method elected for
7

8 federal income tax purposes except that the useful life shall be
8

9 seven (7) years for purposes of this paragraph. If depreciation is
9

10 allowed as a deduction in determining the adjusted gross income of
10

11 an individual, any depreciation calculated and claimed pursuant to
11

12 this section shall in no event be a duplication of any depreciation
12

13 allowed or permitted on the federal income tax return of the
13

14 individual.
14

15 13. a. In taxable years beginning before January 1, 2005,

16 retirement benefits not to exceed the amounts

17 specified in this paragraph, which are received by an

18 individual sixty-five (65) years of age or older and

19 whose Oklahoma adjusted gross income is Twenty-five

20 Thousand Dollars ($25,000.00) or less if the filing

21 status is single, head of household, or married filing

22 separate, or Fifty Thousand Dollars ($50,000.00) or

23 less if the filing status is married filing joint or

24 qualifying widow, shall be exempt from taxable income.

Req. No. 3559 Page 520
1 In taxable years beginning after December 31, 2004,

2 retirement benefits not to exceed the amounts

3 specified in this paragraph, which are received by an

4 individual whose Oklahoma adjusted gross income is

5 less than the qualifying amount specified in this

6 paragraph, shall be exempt from taxable income.

7 b. For purposes of this paragraph, the qualifying amount

8 shall be as follows:

9 (1) in taxable years beginning after December 31,

10 2004, and prior to January 1, 2007, the

11 qualifying amount shall be Thirty-seven Thousand

12 Five Hundred Dollars ($37,500.00) or less if the

13 filing status is single, head of household, or

14 married filing separate, or Seventy-five Thousand

15 Dollars ($75,000.00) or less if the filing status

16 is married filing jointly or qualifying widow,

17 (2) in the taxable year beginning January 1, 2007,

18 the qualifying amount shall be Fifty Thousand

19 Dollars ($50,000.00) or less if the filing status

20 is single, head of household, or married filing

21 separate, or One Hundred Thousand Dollars

22 ($100,000.00) or less if the filing status is

23 married filing jointly or qualifying widow,

Req. No. 3559 Page 521
1 (3) in the taxable year beginning January 1, 2008,

2 the qualifying amount shall be Sixty-two Thousand

3 Five Hundred Dollars ($62,500.00) or less if the

4 filing status is single, head of household, or

5 married filing separate, or One Hundred Twenty-

6 five Thousand Dollars ($125,000.00) or less if

7 the filing status is married filing jointly or

8 qualifying widow,

9 (4) in the taxable year beginning January 1, 2009,

10 the qualifying amount shall be One Hundred

11 Thousand Dollars ($100,000.00) or less if the

12 filing status is single, head of household, or

13 married filing separate, or Two Hundred Thousand

14 Dollars ($200,000.00) or less if the filing

15 status is married filing jointly or qualifying

16 widow, and

17 (5) in the taxable year beginning January 1, 2010,

18 and subsequent taxable years, there shall be no

19 limitation upon the qualifying amount.

20 c. For purposes of this paragraph, "retirement benefits"

21 means the total distributions or withdrawals from the

22 following:

Req. No. 3559 Page 522
1 (1) an employee pension benefit plan which satisfies

2 the requirements of Section 401 of the Internal

3 Revenue Code, 26 U.S.C., Section 401,

4 (2) an eligible deferred compensation plan that

5 satisfies the requirements of Section 457 of the

6 Internal Revenue Code, 26 U.S.C., Section 457,

7 (3) an individual retirement account, annuity or

8 trust or simplified employee pension that

9 satisfies the requirements of Section 408 of the

10 Internal Revenue Code, 26 U.S.C., Section 408,

11 (4) an employee annuity subject to the provisions of

12 Section 403(a) or (b) of the Internal Revenue

13 Code, 26 U.S.C., Section 403(a) or (b),

14 (5) United States Retirement Bonds which satisfy the

15 requirements of Section 86 of the Internal

16 Revenue Code, 26 U.S.C., Section 86, or

17 (6) lump-sum distributions from a retirement plan

18 which satisfies the requirements of Section

19 402(e) of the Internal Revenue Code, 26 U.S.C.,

20 Section 402(e).

21 d. The amount of the exemption provided by this paragraph

22 shall be limited to Five Thousand Five Hundred Dollars

23 ($5,500.00) for the 2004 tax year, Seven Thousand Five

24 Hundred Dollars ($7,500.00) for the 2005 tax year and

Req. No. 3559 Page 523
1 Ten Thousand Dollars ($10,000.00) for the tax year

2 2006 and for all subsequent tax years. Any individual

3 who claims the exemption provided for in paragraph 8

4 of this subsection shall not be permitted to claim a

5 combined total exemption pursuant to this paragraph

6 and paragraph 8 of this subsection in an amount

7 exceeding Five Thousand Five Hundred Dollars

8 ($5,500.00) for the 2004 tax year, Seven Thousand Five

9 Hundred Dollars ($7,500.00) for the 2005 tax year and

10 Ten Thousand Dollars ($10,000.00) for the 2006 tax

11 year and all subsequent tax years.

12 14. In taxable years beginning after December 31, 1999, for an

13 individual engaged in production agriculture who has filed a
13

14 Schedule F form with the taxpayer's federal income tax return for
14

15 such taxable year, there shall be excluded from taxable income any
15

16 amount which was included as federal taxable income or federal
16

17 adjusted gross income and which consists of the discharge of an
17

18 obligation by a creditor of the taxpayer incurred to finance the
18

19 production of agricultural products.
19

20 15. In taxable years beginning December 31, 2000, an amount

21 equal to one hundred percent (100%) of the amount of any scholarship
21

22 or stipend received from participation in the Oklahoma Police Corps
22

23 Program, as established in Section 2-140.3 of Title 47 of the
23

24 Oklahoma Statutes shall be exempt from taxable income.
24

Req. No. 3559 Page 524
1 16. a. In taxable years beginning after December 31, 2001,

2 and before January 1, 2005, there shall be allowed a

3 deduction in the amount of contributions to accounts

4 established pursuant to the Oklahoma College Savings

5 Plan Act. The deduction shall equal the amount of

6 contributions to accounts, but in no event shall the

7 deduction for each contributor exceed Two Thousand

8 Five Hundred Dollars ($2,500.00) each taxable year for

9 each account.

10 b. In taxable years beginning after December 31, 2004,

11 each taxpayer shall be allowed a deduction for

12 contributions to accounts established pursuant to the

13 Oklahoma College Savings Plan Act. The maximum annual

14 deduction shall equal the amount of contributions to

15 all such accounts plus any contributions to such

16 accounts by the taxpayer for prior taxable years after

17 December 31, 2004, which were not deducted, but in no

18 event shall the deduction for each tax year exceed Ten

19 Thousand Dollars ($10,000.00) for each individual

20 taxpayer or Twenty Thousand Dollars ($20,000.00) for

21 taxpayers filing a joint return. Any amount of a

22 contribution that is not deducted by the taxpayer in

23 the year for which the contribution is made may be

24 carried forward as a deduction from income for the

Req. No. 3559 Page 525
1 succeeding five (5) years. For taxable years

2 beginning after December 31, 2005, deductions may be

3 taken for contributions and rollovers made during a

4 taxable year and up to April 15 of the succeeding

5 year, or the due date of a taxpayer's state income tax

6 return, excluding extensions, whichever is later.

7 Provided, a deduction for the same contribution may

8 not be taken for two (2) different taxable years.

9 c. In taxable years beginning after December 31, 2006,

10 deductions for contributions made pursuant to

11 subparagraph b of this paragraph shall be limited as

12 follows:

13 (1) for a taxpayer who qualified for the five-year

14 carryforward election and who takes a rollover or

15 nonqualified withdrawal during that period, the

16 tax deduction otherwise available pursuant to

17 subparagraph b of this paragraph shall be reduced

18 by the amount which is equal to the rollover or

19 nonqualified withdrawal, and

20 (2) for a taxpayer who elects to take a rollover or

21 nonqualified withdrawal within the same tax year

22 in which a contribution was made to the

23 taxpayer's account, the tax deduction otherwise

24 available pursuant to subparagraph b of this

Req. No. 3559 Page 526
1 paragraph shall be reduced by the amount of the

2 contribution which is equal to the rollover or

3 nonqualified withdrawal.

4 d. If a taxpayer elects to take a rollover on a

5 contribution for which a deduction has been taken

6 pursuant to subparagraph b of this paragraph within

7 one (1) year of the date of contribution, the amount

8 of such rollover shall be included in the adjusted

9 gross income of the taxpayer in the taxable year of

10 the rollover.

11 e. If a taxpayer makes a nonqualified withdrawal of

12 contributions for which a deduction was taken pursuant

13 to subparagraph b of this paragraph, such nonqualified

14 withdrawal and any earnings thereon shall be included

15 in the adjusted gross income of the taxpayer in the

16 taxable year of the nonqualified withdrawal.

17 f. As used in this paragraph:

18 (1) "non-qualified withdrawal" means a withdrawal

19 from an Oklahoma College Savings Plan account

20 other than one of the following:

21 (a) a qualified withdrawal,

22 (b) a withdrawal made as a result of the death

23 or disability of the designated beneficiary

24 of an account,

Req. No. 3559 Page 527
1 (c) a withdrawal that is made on the account of

2 a scholarship or the allowance or payment

3 described in Section 135(d)(1)(B) or (C) or

4 by the Internal Revenue Code, received by

5 the designated beneficiary to the extent the

6 amount of the refund does not exceed the

7 amount of the scholarship, allowance, or

8 payment, or

9 (d) a rollover or change of designated

10 beneficiary as permitted by subsection F of

11 Section 3970.7 of Title 70 of the Oklahoma

12 Statutes, and

13 (2) "rollover" means the transfer of funds from the

14 Oklahoma College Savings Plan to any other plan

15 under Section 529 of the Internal Revenue Code.

16 17. For tax years 2006 through 2021, retirement benefits

17 received by an individual from any component of the Armed Forces of
17

18 the United States in an amount not to exceed the greater of seventy-
18

19 five percent (75%) of such benefits or Ten Thousand Dollars
19

20 ($10,000.00) shall be exempt from taxable income but in no case less
20

21 than the amount of the exemption provided by paragraph 13 of this
21

22 subsection. For tax year 2022 and subsequent tax years, retirement
22

23 benefits received by an individual from any component of the Armed
23

24 Forces of the United States shall be exempt from taxable income.
24

Req. No. 3559 Page 528
1 18. For taxable years beginning after December 31, 2006,

2 retirement benefits received by federal civil service retirees,
2

3 including survivor annuities, paid in lieu of Social Security
3

4 benefits shall be exempt from taxable income to the extent such
4

5 benefits are included in the federal adjusted gross income pursuant
5

6 to the provisions of Section 86 of the Internal Revenue Code, 26
6

7 U.S.C., Section 86, according to the following schedule:
7

8 a. in the taxable year beginning January 1, 2007, twenty

9 percent (20%) of such benefits shall be exempt,

10 b. in the taxable year beginning January 1, 2008, forty

11 percent (40%) of such benefits shall be exempt,

12 c. in the taxable year beginning January 1, 2009, sixty

13 percent (60%) of such benefits shall be exempt,

14 d. in the taxable year beginning January 1, 2010, eighty

15 percent (80%) of such benefits shall be exempt, and

16 e. in the taxable year beginning January 1, 2011, and

17 subsequent taxable years, one hundred percent (100%)

18 of such benefits shall be exempt.

19 19. a. For taxable years beginning after December 31, 2007, a

20 resident individual may deduct up to Ten Thousand

21 Dollars ($10,000.00) from Oklahoma adjusted gross

22 income if the individual, or the dependent of the

23 individual, while living, donates one or more human

24 organs of the individual to another human being for

Req. No. 3559 Page 529
1 human organ transplantation. As used in this

2 paragraph, "human organ" means all or part of a liver,

3 pancreas, kidney, intestine, lung, or bone marrow. A

4 deduction that is claimed under this paragraph may be

5 claimed in the taxable year in which the human organ

6 transplantation occurs.

7 b. An individual may claim this deduction only once, and

8 the deduction may be claimed only for unreimbursed

9 expenses that are incurred by the individual and

10 related to the organ donation of the individual.

11 c. The Oklahoma Tax Commission shall promulgate rules to

12 implement the provisions of this paragraph which shall

13 contain a specific list of expenses which may be

14 presumed to qualify for the deduction. The Tax

15 Commission shall prescribe necessary requirements for

16 verification.

17 20. For taxable years beginning after December 31, 2009, there

18 shall be exempt from taxable income any amount received by the
18

19 beneficiary of the death benefit for an emergency medical technician
19

20 or a registered emergency medical responder provided by Section 1-
20

21 2505.1 of Title 63 of the Oklahoma Statutes.
21

22 21. For taxable years beginning after December 31, 2008,

23 taxable income shall be increased by any unemployment compensation
23

Req. No. 3559 Page 530
1 exempted under Section 85(c) of the Internal Revenue Code, 26
1

2 U.S.C., Section 85(c)(2009).
2

3 22. For taxable years beginning after December 31, 2008, there

4 shall be exempt from taxable income any payment in an amount less
4

5 than Six Hundred Dollars ($600.00) received by a person as an award
5

6 for participation in a competitive livestock show event. For
6

7 purposes of this paragraph, the payment shall be treated as a
7

8 scholarship amount paid by the entity sponsoring the event and the
8

9 sponsoring entity shall cause the payment to be categorized as a
9

10 scholarship in its books and records.
10

11 23. For taxable years beginning on or after January 1, 2016,

12 taxable income shall be increased by any amount of state and local
12

13 sales or income taxes deducted under 26 U.S.C., Section 164 of the
13

14 Internal Revenue Code. If the amount of state and local taxes
14

15 deducted on the federal return is limited, taxable income on the
15

16 state return shall be increased only by the amount actually deducted
16

17 after any such limitations are applied.
17

18 24. For taxable years beginning after December 31, 2020, each

19 taxpayer shall be allowed a deduction for contributions to accounts
19

20 established pursuant to the Achieving a Better Life Experience
20

21 (ABLE) Program as established in Section 4001.1 et seq. of Title 56
21

22 of the Oklahoma Statutes. For any tax year, the deduction provided
22

23 for in this paragraph shall not exceed Ten Thousand Dollars
23

24 ($10,000.00) for an individual taxpayer or Twenty Thousand Dollars
24

Req. No. 3559 Page 531
1 ($20,000.00) for taxpayers filing a joint return. Any amount of
1

2 contribution not deducted by the taxpayer in the tax year for which
2

3 the contribution is made may be carried forward as a deduction from
3

4 income for up to five (5) tax years. Deductions may be taken for
4

5 contributions made during the tax year and through April 15 of the
5

6 succeeding tax year, or through the due date of a taxpayer's state
6

7 income tax return excluding extensions, whichever is later.
7

8 Provided, a deduction for the same contribution may not be taken in
8

9 more than one (1) tax year.
9

10 25. For tax year 2024 and subsequent tax years, tax credits

11 received pursuant to the Oklahoma Parental Choice Tax Credit Act in
11

12 Section 28-101 of Title 70 of the Oklahoma Statutes shall be exempt
12

13 from taxable income.
13

14 F. 1. For taxable years beginning after December 31, 2004, a

15 deduction from the Oklahoma adjusted gross income of any individual
15

16 taxpayer shall be allowed for qualifying gains receiving capital
16

17 treatment that are included in the federal adjusted gross income of
17

18 such individual taxpayer during the taxable year.
18

19 2. As used in this subsection:

20 a. "qualifying gains receiving capital treatment" means

21 the amount of net capital gains, as defined in Section

22 1222(11) of the Internal Revenue Code, included in an

23 individual taxpayer's federal income tax return that

24 result from:

Req. No. 3559 Page 532
1 (1) the sale of real property or tangible personal

2 property located within Oklahoma that has been

3 directly or indirectly owned by the individual

4 taxpayer for a holding period of at least five

5 (5) years prior to the date of the transaction

6 from which such net capital gains arise,

7 (2) the sale of stock or the sale of a direct or

8 indirect ownership interest in an Oklahoma

9 company, limited liability company, or

10 partnership where such stock or ownership

11 interest has been directly or indirectly owned by

12 the individual taxpayer for a holding period of

13 at least two (2) years prior to the date of the

14 transaction from which the net capital gains

15 arise, or

16 (3) the sale of real property, tangible personal

17 property or intangible personal property located

18 within Oklahoma this state as part of the sale of

19 all or substantially all of the assets of an

20 Oklahoma company, limited liability company, or

21 partnership or an Oklahoma proprietorship

22 business enterprise where such property has been

23 directly or indirectly owned by such entity or

24 business enterprise or owned by the owners of

Req. No. 3559 Page 533
1 such entity or business enterprise for a period

2 of at least two (2) years prior to the date of

3 the transaction from which the net capital gains

4 arise,

5 b. "holding period" means an uninterrupted period of

6 time. The holding period shall include any additional

7 period when the property was held by another

8 individual or entity, if such additional period is

9 included in the taxpayer's holding period for the

10 asset pursuant to the Internal Revenue Code,

11 c. "Oklahoma company," "limited liability company," or

12 "partnership" means an entity whose primary

13 headquarters have been located in Oklahoma this state

14 for at least three (3) uninterrupted years prior to

15 the date of the transaction from which the net capital

16 gains arise,

17 d. "direct" means the individual taxpayer directly owns

18 the asset,

19 e. "indirect" means the individual taxpayer owns an

20 interest in a pass-through entity (or chain of pass-

21 through entities) that sells the asset that gives rise

22 to the qualifying gains receiving capital treatment.

23 (1) With respect to sales of real property or

24 tangible personal property located within

Req. No. 3559 Page 534
1 Oklahoma this state, the deduction described in

2 this subsection shall not apply unless the pass-

3 through entity that makes the sale has held the

4 property for not less than five (5) uninterrupted

5 years prior to the date of the transaction that

6 created the capital gain, and each pass-through

7 entity included in the chain of ownership has

8 been a member, partner, or shareholder of the

9 pass-through entity in the tier immediately below

10 it for an uninterrupted period of not less than

11 five (5) years.

12 (2) With respect to sales of stock or ownership

13 interest in or sales of all or substantially all

14 of the assets of an Oklahoma company, limited

15 liability company, partnership or Oklahoma

16 proprietorship business enterprise, the deduction

17 described in this subsection shall not apply

18 unless the pass-through entity that makes the

19 sale has held the stock or ownership interest for

20 not less than two (2) uninterrupted years prior

21 to the date of the transaction that created the

22 capital gain, and each pass-through entity

23 included in the chain of ownership has been a

24 member, partner or shareholder of the pass-

Req. No. 3559 Page 535
1 through entity in the tier immediately below it

2 for an uninterrupted period of not less than two

3 (2) years. For purposes of this division,

4 uninterrupted ownership prior to July 1, 2007,

5 shall be included in the determination of the

6 required holding period prescribed by this

7 division, and

8 f. "Oklahoma proprietorship business enterprise" means a

9 business enterprise whose income and expenses have

10 been reported on Schedule C or F of an individual

11 taxpayer's federal income tax return, or any similar

12 successor schedule published by the Internal Revenue

13 Service and whose primary headquarters have been

14 located in Oklahoma this state for at least three (3)

15 uninterrupted years prior to the date of the

16 transaction from which the net capital gains arise.

17 G. 1. For purposes of computing its Oklahoma taxable income

18 under this section, the dividends-paid deduction otherwise allowed
18

19 by federal law in computing net income of a real estate investment
19

20 trust that is subject to federal income tax shall be added back in
20

21 computing the tax imposed by this state under this title if the real
21

22 estate investment trust is a captive real estate investment trust.
22

23 2. For purposes of computing its Oklahoma taxable income under

24 this section, a taxpayer shall add back otherwise deductible rents
24

Req. No. 3559 Page 536
1 and interest expenses paid to a captive real estate investment trust
1

2 that is not subject to the provisions of paragraph 1 of this
2

3 subsection. As used in this subsection:
3

4 a. the term "real estate investment trust" or "REIT"

5 means the meaning ascribed to such term in Section 856

6 of the Internal Revenue Code,

7 b. the term "captive real estate investment trust" means

8 a real estate investment trust, the shares or

9 beneficial interests of which are not regularly traded

10 on an established securities market and more than

11 fifty percent (50%) of the voting power or value of

12 the beneficial interests or shares of which are owned

13 or controlled, directly or indirectly, or

14 constructively, by a single entity that is:

15 (1) treated as an association taxable as a

16 corporation under the Internal Revenue Code, and

17 (2) not exempt from federal income tax pursuant to

18 the provisions of Section 501(a) of the Internal

19 Revenue Code.

20 The term shall not include a real estate investment

21 trust that is intended to be regularly traded on an

22 established securities market, and that satisfies the

23 requirements of Section 856(a)(5) and (6) of the U.S.

Req. No. 3559 Page 537
1 Internal Revenue Code by reason of Section 856(h)(2)

2 of the Internal Revenue Code,

3 c. the term "association taxable as a corporation" shall

4 not include the following entities:

5 (1) any real estate investment trust as defined in

6 paragraph a of this subsection other than a

7 "captive real estate investment trust" captive

8 real estate investment trust,

9 (2) any qualified real estate investment trust

10 subsidiary under Section 856(i) of the Internal

11 Revenue Code, other than a qualified REIT

12 subsidiary of a "captive real estate investment

13 trust" captive real estate investment trust,

14 (3) any Listed listed Australian Property Trust

15 property trust (meaning an Australian unit trust

16 registered as a "Managed Investment Scheme"

17 "managed investment scheme" under the Australian

18 Corporations Act 2001 in which the principal

19 class of units is listed on a recognized stock

20 exchange in Australia and is regularly traded on

21 an established securities market), or an entity

22 organized as a trust, provided that a Listed

23 listed Australian Property Trust property trust

24 owns or controls, directly or indirectly,

Req. No. 3559 Page 538
1 seventy-five percent (75%) or more of the voting

2 power or value of the beneficial interests or

3 shares of such trust, or

4 (4) any Qualified Foreign Entity qualified foreign

5 entity, meaning a corporation, trust, association

6 or partnership organized outside the laws of the

7 United States and which satisfies the following

8 criteria:

9 (a) at least seventy-five percent (75%) of the

10 entity's total asset value at the close of

11 its taxable year is represented by real

12 estate assets, as defined in Section

13 856(c)(5)(B) of the Internal Revenue Code,

14 thereby including shares or certificates of

15 beneficial interest in any real estate

16 investment trust, cash and cash equivalents,

17 and U.S. Government securities,

18 (b) the entity receives a dividend-paid

19 deduction comparable to Section 561 of the

20 Internal Revenue Code, or is exempt from

21 entity level tax,

22 (c) the entity is required to distribute at

23 least eighty-five percent (85%) of its

24 taxable income, as computed in the

Req. No. 3559 Page 539
1 jurisdiction in which it is organized, to

2 the holders of its shares or certificates of

3 beneficial interest on an annual basis,

4 (d) not more than ten percent (10%) of the

5 voting power or value in such entity is held

6 directly or indirectly or constructively by

7 a single entity or individual, or the shares

8 or beneficial interests of such entity are

9 regularly traded on an established

10 securities market, and

11 (e) the entity is organized in a country which

12 has a tax treaty with the United States.

13 3. For purposes of this subsection, the constructive ownership

14 rules of Section 318(a) of the Internal Revenue Code, as modified by
14

15 Section 856(d)(5) of the Internal Revenue Code, shall apply in
15

16 determining the ownership of stock, assets, or net profits of any
16

17 person.
17

18 4. A real estate investment trust that does not become

19 regularly traded on an established securities market within one (1)
19

20 year of the date on which it first becomes a real estate investment
20

21 trust shall be deemed not to have been regularly traded on an
21

22 established securities market, retroactive to the date it first
22

23 became a real estate investment trust, and shall file an amended
23

24 return reflecting such retroactive designation for any tax year or
24

Req. No. 3559 Page 540
1 part year occurring during its initial year of status as a real
1

2 estate investment trust. For purposes of this subsection, a real
2

3 estate investment trust becomes a real estate investment trust on
3

4 the first day it has both met the requirements of Section 856 of the
4

5 Internal Revenue Code and has elected to be treated as a real estate
5

6 investment trust pursuant to Section 856(c)(1) of the Internal
6

7 Revenue Code.
7

8 SECTION 130. REPEALER 68 O.S. 2021, Section 2358, as

9 last amended by Section 1, Chapter 166, O.S.L. 2024 (68 O.S. Supp.
9

10 2025, Section 2358), is hereby repealed.
10

11 SECTION 131. REPEALER 68 O.S. 2021, Section 2358, as

12 last amended by Section 2, Chapter 277, O.S.L. 2024 (68 O.S. Supp.
12

13 2025, Section 2358), is hereby repealed.
13

14 SECTION 132. AMENDATORY 68 O.S. 2021, Section 2902, as

15 last amended by Section 1, Chapter 411, O.S.L. 2025 (68 O.S. Supp.
15

16 2025, Section 2902), is amended to read as follows:
16

17 Section 2902. A. Except as otherwise provided by subsection H

18 of Section 3658 of this title pursuant to which the exemption
18

19 authorized by this section may not be claimed, a qualifying
19

20 manufacturing concern, as defined by Section 6B of Article X of the
20

21 Oklahoma Constitution, and as further defined herein, shall be
21

22 exempt from the levy of any ad valorem taxes upon new, expanded or
22

23 acquired manufacturing facilities including facilities engaged in
23

24 research and development, for a period of five (5) years. The
24

Req. No. 3559 Page 541
1 provisions of Section 6B of Article X of the Oklahoma Constitution
1

2 requiring an existing facility to have been unoccupied for a period
2

3 of twelve (12) months prior to acquisition shall be construed as a
3

4 qualification for a facility to initially receive an exemption, and
4

5 shall not be deemed to be a qualification for that facility to
5

6 continue to receive an exemption in each of the four (4) years
6

7 following the initial year for which the exemption was granted.
7

8 Such facilities are hereby classified for the purposes of taxation
8

9 as provided in Section 22 of Article X of the Oklahoma Constitution.
9

10 B. For purposes of this section, the following definitions

11 shall apply:
11

12 1. "Manufacturing facilities" means facilities engaged in the

13 mechanical or chemical transformation of materials or substances
13

14 into new products and except as provided by paragraph 6 of
14

15 subsection C of this section shall include:
15

16 a. establishments which have received a manufacturer

17 exemption permit pursuant to the provisions of Section

18 1359.2 of this title,

19 b. facilities including repair and replacement parts,

20 primarily engaged in aircraft repair, building and

21 rebuilding whether or not on a factory basis,

22 c. establishments primarily engaged in computer services

23 and data processing as defined under Industrial Group

24 Numbers 5112 and 5415, and U.S. Industry Number 334611

Req. No. 3559 Page 542
1 and 519130 of the NAICS Manual, latest revision, and

2 which derive at least fifty percent (50%) of their

3 annual gross revenues from the sale of a product or

4 service to an out-of-state buyer or consumer, and as

5 defined under Industrial Group Number 5182 of the

6 NAICS Manual, latest revision, which derive at least

7 eighty percent (80%) of their annual gross revenues

8 from the sale of a product or service to an out-of-

9 state buyer or consumer. Eligibility as a

10 manufacturing facility pursuant to this subparagraph

11 shall be established, subject to review by the

12 Oklahoma Tax Commission, by annually filing an

13 affidavit with the Tax Commission stating that the

14 facility so qualifies and such other information as

15 required by the Tax Commission. For purposes of

16 determining whether annual gross revenues are derived

17 from sales to out-of-state buyers, all sales to the

18 federal government shall be considered to be an out-

19 of-state buyer,

20 d. facilities that the investment cost of the

21 construction, acquisition or expansion is Five Hundred

22 Thousand Dollars ($500,000.00) or more with respect to

23 assets placed into service during calendar year 2022.

24 For subsequent calendar years, the investment required

Req. No. 3559 Page 543
1 shall be increased annually by a percentage equal to

2 the previous year's increase in the Consumer Price

3 Index-All Urban Consumers ("CPI-U") and such adjusted

4 amount shall be the required investment cost in order

5 to qualify for the exemption authorized by this

6 section. The Oklahoma Department of Commerce shall

7 determine the amount of the increase, if any, on

8 January 1 of each year. The Oklahoma Tax Commission

9 shall publish on its website at least annually the

10 adjusted dollar amount in order to qualify for the

11 exemption authorized by this section and shall include

12 the adjusted dollar amount in any of its relevant

13 forms or publications with respect to the exemption.

14 Provided, "investment cost" shall not include the cost

15 of direct replacement, refurbishment, repair or

16 maintenance of existing machinery or equipment, except

17 that investment cost shall include capital

18 expenditures for direct replacement, refurbishment,

19 repair or maintenance of existing machinery or

20 equipment that qualifies for depreciation and/or

21 amortization pursuant to the Internal Revenue Code of

22 1986, as amended, and such expenditures shall be

23 eligible as a part of an expansion that otherwise

24 qualifies under this section,

Req. No. 3559 Page 544
1 e. establishments primarily engaged in distribution as

2 defined under Industry Numbers 49311, 49312, 49313 and

3 49319 and Industry Sector Number 42 of the NAICS

4 Manual, latest revision, and which meet the following

5 qualifications:

6 (1) construction with an initial capital investment

7 of at least Five Million Dollars ($5,000,000.00),

8 (2) employment of at least one hundred (100) full-

9 time-equivalent employees, as certified by the

10 Oklahoma Employment Security Commission,

11 (3) payment of wages or salaries to its employees at

12 a wage which equals or exceeds the average wage

13 requirements in the Oklahoma Quality Jobs Program

14 Act for the year in which the real property was

15 placed into service, and

16 (4) commencement of construction on or after November

17 1, 2007, with construction to be completed within

18 three (3) years from the date of the commencement

19 of construction,

20 f. facilities engaged in the manufacturing, compounding,

21 processing or fabrication of materials into articles

22 of tangible personal property according to the special

23 order of a customer (custom order manufacturing) by

24 manufacturers classified as operating in North

Req. No. 3559 Page 545
1 American Industry Classification System (NAICS)

2 Sectors 32 and 33, but does not include such custom

3 order manufacturing by manufacturers classified in

4 other NAICS code sectors, and

5 g. with respect to any entity making an application for

6 the exemption authorized by this section on or after

7 January 1, 2023, the establishment making application

8 for exempt treatment of real or personal property

9 acquired or improved beginning January 1, 2022, and

10 for any calendar year thereafter, the entity shall be

11 required to pay new direct jobs, as defined by Section

12 3603 of this title for purposes of the Oklahoma

13 Quality Jobs Program Act, an average annualized wage

14 which equals or exceeds the average wage requirement

15 in the Oklahoma Quality Jobs Program Act for the year

16 in which the real or personal property was placed into

17 service. The Oklahoma Tax Commission may request

18 verification from the Oklahoma Department of Commerce

19 that an establishment seeking an exemption for real or

20 personal property pays an average annualized wage that

21 equals or exceeds the average wage requirement in

22 effect for the year in which the real or personal

23 property was placed into service. For purposes of

24 this subparagraph, it shall not be necessary for the

Req. No. 3559 Page 546
1 establishment to qualify for incentive payments

2 pursuant to the Oklahoma Quality Jobs Program Act, but

3 the establishment shall be subject to the wage

4 requirements of the Oklahoma Quality Jobs Program Act

5 with respect to new direct jobs in order to qualify

6 for the exempt treatment authorized by this section.

7 Eligibility as a manufacturing facility pursuant to this

8 subparagraph shall be established, subject to review by the Tax
8

9 Commission, by annually filing an affidavit with the Tax Commission
9

10 stating that the facility so qualifies and containing such other
10

11 information as required by the Tax Commission.
11

12 Provided, eating and drinking places, as well as other retail

13 establishments, shall not qualify as manufacturing facilities for
13

14 purposes of this section, nor shall centrally assessed properties.
14

15 Eligibility as a manufacturing facility pursuant to this

16 subparagraph shall be established, subject to review by the Tax
16

17 Commission, by annually filing an application with the Tax
17

18 Commission stating that the facility so qualifies and containing
18

19 such other information as required by the Tax Commission;
19

20 2. "Facility" and "facilities", except as otherwise provided by

21 this section, means and includes the land, buildings, structures and
21

22 improvements used directly and exclusively in the manufacturing
22

23 process. Effective January 1, 2022, and for each calendar year
23

24 thereafter, for establishments which have received a manufacturer
24

Req. No. 3559 Page 547
1 exemption permit pursuant to the provisions of Section 1359.2 of
1

2 this title, or facilities engaged in manufacturing activities
2

3 defined or classified in the NAICS Manual under Industry Nos. 311111
3

4 through 339999, inclusive, but for no other establishments, facility
4

5 and facilities means and includes the land, buildings, structures,
5

6 improvements, machinery, fixtures, equipment and other personal
6

7 property used directly and exclusively in the manufacturing process;
7

8 and
8

9 3. "Research and development" means activities directly related

10 to and conducted for the purpose of discovering, enhancing,
10

11 increasing or improving future or existing products or processes or
11

12 productivity.
12

13 C. The following provisions shall apply:

14 1. A manufacturing concern shall be entitled to the exemption

15 herein provided for each new manufacturing facility constructed,
15

16 each existing manufacturing facility acquired and the expansion of
16

17 existing manufacturing facilities on the same site, as such terms
17

18 are defined by Section 6B of Article X of the Oklahoma Constitution
18

19 and by this section;
19

20 2. No manufacturing concern shall receive more than one five-

21 year exemption for any one manufacturing facility unless the
21

22 expansion which qualifies the manufacturing facility for an
22

23 additional five-year exemption meets the requirements of paragraph 4
23

Req. No. 3559 Page 548
1 of this subsection and the employment level established for any
1

2 previous exemption is maintained;
2

3 3. Any exemption as to the expansion of an existing

4 manufacturing facility shall be limited to the increase in ad
4

5 valorem taxes directly attributable to the expansion;
5

6 4. All initial applications for any exemption for a new,

7 acquired or expanded manufacturing facility shall be granted only
7

8 if:
8

9 a. there is a net increase in annualized base payroll

10 over the initial payroll of at least Two Hundred Fifty

11 Thousand Dollars ($250,000.00) if the facility is

12 located in a county with a population of fewer than

13 seventy-five thousand (75,000), according to the most

14 recent Federal Decennial Census, while maintaining or

15 increasing base payroll in subsequent years, or at

16 least One Million Dollars ($1,000,000.00) if the

17 facility is located in a county with a population of

18 seventy-five thousand (75,000) or more, according to

19 the most recent Federal Decennial Census, while

20 maintaining or increasing base payroll in subsequent

21 years; provided, the payroll requirement of this

22 subparagraph shall be waived for claims for exemptions

23 including claims previously denied or on appeal on

24 March 3, 2010, for all initial applications for

Req. No. 3559 Page 549
1 exemption filed on or after January 1, 2004, and on or

2 before March 31, 2009, and all subsequent annual

3 exemption applications filed related to the initial

4 application for exemption, for an applicant, if the

5 facility has been located in Oklahoma for at least

6 fifteen (15) years engaged in marine engine

7 manufacturing as defined under U.S. Industry Number

8 333618 of the NAICS Manual, latest revision, and has

9 maintained an average employment of five hundred (500)

10 or more full-time-equivalent employees over a ten-year

11 period. Any applicant that qualifies for the payroll

12 requirement waiver as outlined in the previous

13 sentence and subsequently closes its Oklahoma

14 manufacturing plant prior to January 1, 2012, may be

15 disqualified for exemption and subject to recapture.

16 For an applicant engaged in paperboard manufacturing

17 as defined under U.S. Industry Number 322130 of the

18 NAICS Manual, latest revision, union master payouts

19 paid by the buyer of the facility to specified

20 individuals employed by the facility at the time of

21 purchase, as specified under the purchase agreement,

22 shall be excluded from payroll for purposes of this

23 section.

Req. No. 3559 Page 550
1 In order to provide certainty with respect to

2 investments in manufacturing facilities pertaining to

3 all initial applications for exemption filed on or

4 after January 1, 2016, the following definitions shall

5 apply:

6 (1) "base payroll" shall mean total payroll adjusted

7 for any nonrecurring bonuses, exercise of stock

8 option or stock rights and other nonrecurring,

9 extraordinary items included in total payroll,

10 and

11 (2) "initial payroll" shall mean base payroll for the

12 year immediately preceding the initial

13 construction, acquisition or expansion.

14 The Tax Commission shall verify payroll

15 information through the Oklahoma Employment

16 Security Commission by using reports from the

17 Oklahoma Employment Security Commission for the

18 calendar year immediately preceding the year for

19 which initial application is made for base-line

20 payroll, which must be maintained or increased

21 for each subsequent year; provided, a

22 manufacturing facility shall have the option of

23 excluding from its payroll, for purposes of this

24 section:

Req. No. 3559 Page 551
1 i. payments to sole proprietors, members
1 of a partnership, members of a limited
2 liability company who own at least ten
2 percent (10%) of the capital of the
3 limited liability company or
3 stockholder-employees of a corporation
4 who own at least ten percent (10%) of
4 the stock in the corporation, and
5
5 ii. any nonrecurring bonuses, exercise of
6 stock option or stock rights or other
6 nonrecurring, extraordinary items
7 included in total payroll numbers as
7 reported by the Oklahoma Employment
8 Security Commission. A manufacturing
8 facility electing either option shall
9 indicate such election upon its
9 application for an exemption under this
10 section. Any manufacturing facility
10 electing either option shall submit
11 such information as the Tax Commission
11 may require in order to verify payroll
12 information. Payroll information
12 submitted pursuant to the provisions of
13 this paragraph shall be submitted to
13
14 Page 552
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24

Req. No. 3559
1 the Tax Commission and shall be subject

2 to the provisions of Section 205 of

3 this title, and

4 b. the facility offers, or will offer within one hundred

5 eighty (180) days of the date of employment, a basic

6 health benefits plan to the full-time-equivalent

7 employees of the facility, which is determined by the

8 Oklahoma Department of Commerce to consist of the

9 elements specified in subparagraph b of paragraph 1 of

10 subsection A of Section 3603 of this title or elements

11 substantially equivalent thereto.

12 For purposes of this section, calculation of the amount of

13 increased base payroll shall be measured from the start of initial
13

14 construction or expansion to the completion of such construction or
14

15 expansion or for three (3) years from the start of initial
15

16 construction or expansion, whichever occurs first. The amount of
16

17 increased base payroll shall include payroll for full-time-
17

18 equivalent employees in this state who are employed by an entity
18

19 other than the facility which has previously or is currently
19

20 qualified to receive an exemption pursuant to the provisions of this
20

21 section and who are leased or otherwise provided to the facility, if
21

22 such employment did not exist in this state prior to the start of
22

23 initial construction or expansion of the facility. The
23

24 manufacturing concern shall submit an affidavit to the Tax
24

Req. No. 3559 Page 553
1 Commission, signed by an officer, stating that the construction,
1

2 acquisition or expansion of the facility will result in a net
2

3 increase in the annualized base payroll as required by this
3

4 paragraph and that full-time-equivalent employees of the facility
4

5 are or will be offered a basic health benefits plan as required by
5

6 this paragraph. If, after the completion of such construction or
6

7 expansion or after three (3) years from the start of initial
7

8 construction or expansion, whichever occurs first, the construction,
8

9 acquisition or expansion has not resulted in a net increase in the
9

10 amount of annualized base payroll, if required, or any other
10

11 qualification specified in this paragraph has not been met, the
11

12 manufacturing concern shall pay an amount equal to the amount of any
12

13 exemption granted including penalties and interest thereon, to the
13

14 Tax Commission for deposit to the Ad Valorem Reimbursement Fund;
14

15 5. Except as otherwise provided by this paragraph, any new,

16 acquired or expanded computer data processing, data preparation or
16

17 information processing services provider classified in U.S. Industry
17

18 Number 518210 of the North American Industrial Classification System
18

19 (NAICS) Manual, 2017 revision, may apply for exemptions under this
19

20 section for each year in which new, acquired, or expanded capital
20

21 improvements to the facility are made for assets placed in service
21

22 not later than December 31, 2021, if:
22

23 a. there is a net increase in annualized payroll of the

24 applicant at any facility or facilities of the

Req. No. 3559 Page 554
1 applicant in this state of at least Two Hundred Fifty

2 Thousand Dollars ($250,000.00), which is attributable

3 to the capital improvements, or a net increase of

4 Seven Million Dollars ($7,000,000.00) or more in

5 capital improvements, while maintaining or increasing

6 payroll at the facility or facilities in this state

7 which are included in the application, and

8 b. the facility offers, or will offer within one hundred

9 eighty (180) days of the date of employment of new

10 employees attributable to the capital improvements, a

11 basic health benefits plan to the full-time-equivalent

12 employees of the facility, which is determined by the

13 Oklahoma Department of Commerce to consist of the

14 elements specified in subparagraph b of paragraph 1 of

15 subsection A of Section 3603 of this title or elements

16 substantially equivalent thereto.

17 An establishment described by this paragraph, the primary

18 business activity of which is described by Industry No. 518210 of
18

19 the North American Industry Classification System (NAICS) Manual,
19

20 2017 revision, that has applied for and been granted an exemption
20

21 for personal property at any time within five (5) years prior to
21

22 November 1, 2021, may apply for exemptions for items of eligible
22

23 personal property to be located within improvements to real property
23

24 and such real property and improvements having been exempt from ad
24

Req. No. 3559 Page 555
1 valorem taxation prior to November 1, 2021, pursuant to the
1

2 provisions of this section if such personal property is placed in
2

3 service not later than December 31, 2036. No additional personal
3

4 property of such establishment placed in service after such date
4

5 shall qualify for the exempt treatment otherwise authorized pursuant
5

6 to this paragraph;
6

7 6. Effective January 1, 2017, an entity engaged in electric

8 power generation by means of wind, as described by the North
8

9 American Industry Classification System, No. 221119, shall not be
9

10 defined as a qualifying manufacturing concern for purposes of the
10

11 exemption otherwise authorized pursuant to Section 6B of Article X
11

12 of the Oklahoma Constitution or qualify as a manufacturing facility
12

13 as defined in this section. No initial application for exemption
13

14 shall be filed by or accepted from an entity engaged in electric
14

15 power generation by means of wind on or after January 1, 2018;
15

16 7. An entity or applicant engaged in an industry as defined

17 under U.S. Industry Number 324110 of the NAICS Manual, latest
17

18 revision, which has applied for or been granted an exemption for a
18

19 time period which began on or after calendar year 2012 and before
19

20 calendar year 2016 but which did not meet the payroll requirements
20

21 of subparagraph a of paragraph 4 of this subsection because of
21

22 nonrecurring bonuses, exercise of stock option or stock rights or
22

23 other nonrecurring, extraordinary items included in total payroll in
23

24 the previous year, shall be allowed an exemption, beginning with
24

Req. No. 3559 Page 556
1 calendar year 2016, for the number of years including the calendar
1

2 year for which the exemption was denied, remaining in the entity's
2

3 five-year exemption period, provided such entity attains or
3

4 increases payroll at or above the initial or base payroll
4

5 established for the exemption;
5

6 8. A facility engaged in manufacturing defined under U.S.

7 Industry Number 327310 of the NAICS Manual shall have the payroll
7

8 requirements of paragraph 4 of this subsection waived for tax year
8

9 2021, which is based in part on the 2020 calendar year payroll
9

10 reported to the Oklahoma Employment Security Commission, and may
10

11 continue to receive the exemption for the five-year period provided
11

12 in this section only if all other requirements of this section are
12

13 met; and
13

14 9. A facility engaged in manufacturing which otherwise

15 qualifies for the exemption or exemptions pursuant to the provisions
15

16 of this section shall have the payroll requirements of paragraph 4
16

17 of this subsection waived for tax year 2021, which is based in part
17

18 on the 2020 calendar year payroll reported to the Oklahoma
18

19 Employment Security Commission, and for tax year 2022, which is
19

20 based in part on the 2021 calendar year payroll reported to the
20

21 Oklahoma Employment Security Commission, and may continue to receive
21

22 the exemption for the five-year period provided in this section only
22

23 if all other requirements of this section are met. Provided, a
23

24 facility engaged in manufacturing as defined under Industrial Group
24

Req. No. 3559 Page 557
1 Number 3364 of the NAICS Manual, latest revision, which otherwise
1

2 qualifies or qualified to receive the exemption for the five-year
2

3 period provided in this section, including claims previously denied,
3

4 shall have the payroll requirements of paragraph 4 of this
4

5 subsection waived for the five-year exemption period of those
5

6 initial exemption applications filed after January 1, 2020, and
6

7 before March 16, 2021.
7

8 D. 1. Except as provided in paragraph 2 of this subsection,

9 the five-year period of exemption from ad valorem taxes for any
9

10 qualifying manufacturing facility property shall begin on January 1
10

11 following the initial qualifying use of the property in the
11

12 manufacturing process.
12

13 2. The five-year period of exemption from ad valorem taxes for

14 any qualifying manufacturing facility, as specified in subparagraphs
14

15 a and b of this paragraph, which is located within a tax incentive
15

16 district created pursuant to the Local Development Act by a county
16

17 having a population of at least five hundred thousand (500,000),
17

18 according to the most recent Federal Decennial Census, shall begin
18

19 on January 1 following the expiration or termination of the ad
19

20 valorem exemption, abatement, or other incentive provided through
20

21 the tax incentive district. Facilities qualifying pursuant to this
21

22 subsection shall include:
22

23 a. a manufacturing facility as defined in subparagraph c

24 of paragraph 1 of subsection B of this section, and

Req. No. 3559 Page 558
1 b. an establishment primarily engaged in distribution as

2 defined under Industry Number 49311 of the North

3 American Industry Classification System for which the

4 initial capital investment was at least One Hundred

5 Eighty Million Dollars ($180,000,000.00); provided,

6 that the qualifying job creation and depreciable

7 property investment occurred prior to calendar year

8 2017 but not earlier than calendar year 2013.

9 E. Any person, firm or corporation claiming the exemption

10 herein provided for shall file each year for which exemption is
10

11 claimed, an application therefor with the county assessor of the
11

12 county in which the new, expanded or acquired facility is located.
12

13 The application shall be on a form or forms prescribed by the Tax
13

14 Commission, and shall be filed on or before March 15, except as
14

15 provided in Section 2902.1 of this title, of each year in which the
15

16 facility desires to take the exemption or within thirty (30) days
16

17 from and after receipt by such person, firm or corporation of notice
17

18 of valuation increase, whichever is later. In a case where
18

19 completion of the facility or facilities will occur after January 1
19

20 of a given year, a facility may apply to claim the ad valorem tax
20

21 exemption for that year. If such facility is found to be qualified
21

22 for exemption, the ad valorem tax exemption provided for herein
22

23 shall be granted for that entire year and shall apply to the ad
23

24 valorem valuation as of January 1 of that given year. For
24

Req. No. 3559 Page 559
1 applicants who qualify under the provisions of subparagraph b of
1

2 paragraph 1 of subsection B of this section, the application shall
2

3 include a copy of the affidavit and any other information required
3

4 to be filed with the Tax Commission.
4

5 F. The application shall be examined by the county assessor and

6 approved or rejected in the same manner as provided by law for
6

7 approval or rejection of claims for homestead exemptions. The
7

8 taxpayer shall have the same right of review by and appeal from the
8

9 county board of equalization, in the same manner and subject to the
9

10 same requirements as provided by law for review and appeals
10

11 concerning homestead exemption claims. Approved applications shall
11

12 be filed by the county assessor with the Tax Commission no later
12

13 than June 15, except as provided in Section 2902.1 of this title, of
13

14 the year in which the facility desires to take the exemption.
14

15 Incomplete applications and applications filed after June 15 will be
15

16 declared null and void by the Tax Commission. In the event that a
16

17 taxpayer qualified to receive an exemption pursuant to the
17

18 provisions of this section shall make payment of ad valorem taxes in
18

19 excess of the amount due, the county treasurer shall have the
19

20 authority to credit the taxpayer's real or personal property tax
20

21 overpayment against current taxes due. The county treasurer may
21

22 establish a schedule of up to five (5) years of credit to resolve
22

23 the overpayment.
23

Req. No. 3559 Page 560
1 G. Nothing herein shall in any manner affect, alter or impair

2 any law relating to the assessment of property, and all property,
2

3 real or personal, which may be entitled to exemption hereunder shall
3

4 be valued and assessed as is other like property and as provided by
4

5 law. The valuation and assessment of property for which an
5

6 exemption is granted hereunder shall be performed by the Tax
6

7 Commission using one or more of the cost, income and expense and
7

8 sales comparison approaches to estimate fair cash value in
8

9 accordance with the Uniform Standards of Professional Appraisal
9

10 Practice.
10

11 H. For each year that a new, expanded, or acquired

12 manufacturing facility receives an exemption pursuant to Section 6B
12

13 of Article X of the Oklahoma Constitution, the entity shall provide
13

14 to the Tax Commission a report detailing the number of new jobs
14

15 created and the payroll data for new jobs created since the
15

16 exemption was provided. The Tax Commission shall provide the data
16

17 collected pursuant to this subsection to the Incentive Evaluation
17

18 Commission for only evaluation purposes by the Commission or a
18

19 designee.
19

20 I. The Tax Commission shall have the authority and duty to

21 prescribe forms and to promulgate rules as may be necessary to carry
21

22 out and administer the terms and provisions of this section.
22

Req. No. 3559 Page 561
1 SECTION 133. REPEALER 68 O.S. 2021, Section 2902, as

2 last amended by Section 1, Chapter 204, O.S.L. 2025 (68 O.S. Supp.
2

3 2025, Section 2902), is hereby repealed.
3

4 SECTION 134. AMENDATORY 70 O.S. 2021, Section 6-194, as

5 last amended by Section 5, Chapter 101, O.S.L. 2025 (70 O.S. Supp.
5

6 2025, Section 6-194), is amended to read as follows:
6

7 Section 6-194. A. The district boards of education of this

8 state shall establish professional development programs for the
8

9 certified teachers and administrators of the district. Programs
9

10 shall be adopted by each board based upon recommendations of a
10

11 professional development committee appointed by the board of
11

12 education for the district.
12

13 B. Each professional development committee shall include

14 classroom teachers, administrators, school counselors or licensed
14

15 mental health providers, and parents, guardians, or custodians of
15

16 children in the school district and shall consult with a higher
16

17 education faculty. A majority of the members of the professional
17

18 development committee shall be composed of classroom teachers. The
18

19 teacher members shall be selected by a designated administrator of
19

20 the school district from a list of names submitted by the teachers
20

21 in the school district. The members selected shall be subject to
21

22 the approval of a majority vote of the teachers in the district.
22

23 C. In developing program recommendations, each professional

24 development committee shall annually utilize a data-driven approach
24

Req. No. 3559 Page 562
1 to analyze student data and determine district and school
1

2 professional development needs. The professional development
2

3 programs adopted shall be directed toward development of
3

4 competencies and instructional strategies in the core curriculum
4

5 areas for the following goals:
5

6 1. Increasing the academic performance data scores for the

7 district and each school site;
7

8 2. Closing achievement gaps among student subgroups;

9 3. Increasing student achievement as demonstrated on state-

10 mandated tests and the ACT nationally norm-referenced college
10

11 entrance exams;
11

12 4. Increasing high school graduation rates; and

13 5. Decreasing college remediation rates.

14 Each program may also include components on classroom management

15 and student discipline strategies, outreach to parents, guardians,
15

16 or custodians of students, special education, and racial and ethnic
16

17 education, which all personnel defined as teachers in Section 1-116
17

18 of this title shall be required to complete at a frequency as
18

19 determined by the board of education. The State Board of Education
19

20 shall provide guidelines to assist school districts in developing
20

21 and implementing racial and ethnic education components into
21

22 professional development programs.
22

Req. No. 3559 Page 563
1 D. A program which includes the following information shall be

2 completed the first year a certified teacher is employed by a school
2

3 district, and then once every fifth academic year:
3

4 1. Training on recognition of child abuse and neglect;

5 2. Recognition of child sexual abuse;

6 3. Proper reporting of suspected abuse including the reporting

7 requirements of Section 1-2-101 of Title 10A of the Oklahoma
7

8 Statutes and Section 1210.163 of this title and associated penalties
8

9 for failure to report; and
9

10 4. Available resources.

11 E. One time per year, beginning in the 2009-2010 school year,

12 training in the area of autism shall be offered and all resident
12

13 teachers of students in early childhood programs through grade three
13

14 shall be required to complete the autism training during the
14

15 resident year and at least one time every three (3) years
15

16 thereafter. All other teachers and education support professionals
16

17 of students in early childhood programs through grade three shall be
17

18 required to complete the autism training at least one time every
18

19 three (3) years. The autism training shall include a minimum
19

20 awareness of the characteristics of autistic children, resources
20

21 available and an introduction to positive behavior supports to
21

22 challenging behavior. Each adopted program shall allow school
22

23 counselors to receive at least one-third (1/3) of the hours or
23

Req. No. 3559 Page 564
1 credit required each year through programs or courses specifically
1

2 designed for school counselors.
2

3 Districts are authorized to utilize any means for professional

4 development that is not prohibited by law including, but not limited
4

5 to, professional development provided by the district, any state
5

6 agency, institution of higher education, or any private entity.
6

7 F. One time per year, beginning in the 2020-2021 school year, a

8 dyslexia awareness program shall be offered. Beginning in the 2023-
8

9 2024 school year, the program shall include information and training
9

10 in dysgraphia. At a minimum, the program shall include:
10

11 1. Training in awareness of dyslexia characteristics in

12 students;
12

13 2. Training in effective classroom instruction to meet the

14 needs of students with dyslexia; and
14

15 3. Available dyslexia resources for teachers, students and

16 parents.
16

17 G. Except as otherwise provided for in this subsection, each

18 certified teacher in this state shall be required by the district
18

19 board of education to meet the professional development requirements
19

20 established by the board, or established through the negotiation
20

21 process. Except as otherwise provided for in this subsection, the
21

22 professional development requirements established by each board of
22

23 education shall require every teacher to annually complete a minimum
23

24 number of the total number of points required to maintain
24

Req. No. 3559 Page 565
1 employment; provided, no more than a total of one hundred fifty
1

2 (150) hours of local, state, or federal professional development or
2

3 training shall be required for classroom teachers during any five-
3

4 year period. Failure of any teacher to meet district board of
4

5 education professional development requirements may be grounds for
5

6 nonrenewal of such teacher's contract by the board. Such failure
6

7 may also be grounds for nonconsideration of salary increments
7

8 affecting the teacher. Teachers shall maintain written
8

9 documentation of all their completed professional development.
9

10 H. Each district shall annually submit a report to the State

11 Department of Education on the district level professional
11

12 development needs, activities completed, expenditures, and results
12

13 achieved for each school year by each goal as provided in subsection
13

14 C of this section. If a school district elects not to adopt and
14

15 offer a professional development program as provided for in
15

16 subsection A of this section, the district shall not be required to
16

17 submit an annual report as required pursuant to this subsection but
17

18 shall report to the State Department of Education its election not
18

19 to offer a program and all professional development activities
19

20 completed by teachers and administrators of the school district.
20

21 I. Subject to the availability of funds, the Department shall

22 develop an online system for reporting as required in subsection H
22

23 of this section. The Department shall also make such information
23

24 available on its website.
24

Req. No. 3559 Page 566
1 SECTION 135. REPEALER 70 O.S. 2021, Section 6-194, as

2 last amended by Section 1, Chapter 277, O.S.L. 2025 (70 O.S. Supp.
2

3 2025, Section 6-194), is hereby repealed.
3

4 SECTION 136. AMENDATORY 70 O.S. 2021, Section 1210.163,

5 as last amended by Section 3, Chapter 260, O.S.L. 2025 (70 O.S.
5

6 Supp. 2025, Section 1210.163), is amended to read as follows:
6

7 Section 1210.163. A. Every school employee having reason to

8 believe that a student under the age of eighteen (18) years is a
8

9 victim of abuse or neglect shall report the matter immediately to
9

10 the Department of Human Services and local law enforcement. Reports
10

11 to the Department shall be made to the hotline provided for in
11

12 Section 1-2-101 of Title 10A of the Oklahoma Statutes. Any
12

13 allegation of abuse or neglect reported in any manner to a county
13

14 office shall immediately be referred to the hotline by the
14

15 Department.
15

16 B. Every school employee having reason to believe that a

17 student age eighteen (18) years or older is a victim of abuse or
17

18 neglect shall report the matter immediately to local law
18

19 enforcement.
19

20 C. In reports required by subsection A or B of this section,

21 local law enforcement shall keep confidential and redact any
21

22 information identifying the reporting school employee unless
22

23 otherwise ordered by the court. A school employee with knowledge of
23

24 a report required by subsection A or B of this section shall not
24

Req. No. 3559 Page 567
1 disclose information identifying the reporting school employee
1

2 unless otherwise ordered by the court or as part of an investigation
2

3 by local law enforcement or the Department.
3

4 D. Any superintendent or school administrator of a private

5 school or public school district who knowingly and willfully fails
5

6 to promptly report or interferes with the prompt reporting of abuse
6

7 or neglect shall be subject to the penalties provided for in Section
7

8 2 of this act. As used in this subsection, "school administrator"
8

9 means a principal, assistant principal, or any other person who
9

10 serves in a supervisory or administrative capacity in a private
10

11 school or public school district.
11

12 E. Every school employee shall annually sign an attestation

13 acknowledging his or her responsibility to report suspected child
13

14 abuse or neglect pursuant to this section and Section 1-2-101 of
14

15 Title 10A of the Oklahoma Statutes.
15

16 F. For the purposes of this section, "child abuse and neglect"

17 shall include, but not be limited to:
17

18 1. Child abuse as defined in Section 843.5 of Title 21 of the

19 Oklahoma Statutes;
19

20 2. Sexual abuse or sexual exploitation as defined in Section 1-

21 1-105 of Title 10A of the Oklahoma Statutes;
21

22 3. Contributing to the delinquency of a minor as defined

23 described in Section 856 of Title 21 of the Oklahoma Statutes;
23

Req. No. 3559 Page 568
1 4. Trafficking in children, as defined in Section 866 of Title

2 21 of the Oklahoma Statutes;
2

3 5. Incest as described in Section 885 of Title 21 of the

4 Oklahoma Statutes;
4

5 6. Forcible sodomy, as described in Section 888 of Title 21 of

6 the Oklahoma Statutes;
6

7 7. Maliciously, forcibly or fraudulently taking or enticing a

8 child away, as described in Section 891 of Title 21 of the Oklahoma
8

9 Statutes;
9

10 8. Soliciting or aiding a minor child to perform or showing,

11 exhibiting, loaning or distributing obscene material or child sexual
11

12 abuse material, as described in Section 1021 of Title 21 of the
12

13 Oklahoma Statutes;
13

14 9. Procuring or causing the participation of any minor child in

15 any child sexual abuse material or knowingly possessing, procuring
15

16 or manufacturing child sexual abuse material, as described in
16

17 Section 1021.2 of Title 21 of the Oklahoma Statutes;
17

18 10. Permitting or consenting to the participation of a minor

19 child in any child sexual abuse material, as described in Section
19

20 1021.3 of Title 21 of the Oklahoma Statutes;
20

21 11. Facilitating, encouraging, offering or soliciting sexual

22 conduct with a minor, as described in Section 1040.13a of Title 21
22

23 of the Oklahoma Statutes;
23

Req. No. 3559 Page 569
1 12. Offering or offering to secure a minor child for the

2 purposes of prostitution or any other lewd or indecent act, as
2

3 described in Section 1087 of Title 21 of the Oklahoma Statutes;
3

4 13. Causing, inducing, persuading or encouraging a minor child

5 to engage or continue to engage in prostitution, as described in
5

6 Section 1088 of Title 21 of the Oklahoma Statutes;
6

7 14. Rape or rape by instrumentation, as described in Sections

8 1111.1 and 1114 of Title 21 of the Oklahoma Statutes;
8

9 15. Making any oral, written or electronically or computer-

10 generated lewd or indecent proposals to a minor child under the age
10

11 of sixteen (16) as described in Section 1123 of Title 21 of the
11

12 Oklahoma Statutes; and
12

13 16. Sexual battery, when committed upon a person who is at

14 least sixteen (16) years of age and is less than twenty (20) years
14

15 of age and is a student, or in the legal custody or supervision of
15

16 any public or private elementary or secondary school, or technology
16

17 center school, by a person who is eighteen (18) years of age or
17

18 older and is an employee of a private school or public school
18

19 system.
19

20 SECTION 137. REPEALER 70 O.S. 2021, Section 1210.163, as

21 last amended by Section 6, Chapter 101, O.S.L. 2025 (70 O.S. Supp.
21

22 2025, Section 1210.163), is hereby repealed.
22

Req. No. 3559 Page 570
1 SECTION 138. AMENDATORY 70 O.S. 2021, Section 2403, as

2 amended by Section 3, Chapter 482, O.S.L. 2025 (70 O.S. Supp. 2025,
2

3 Section 2403), is amended to read as follows:
3

4 Section 2403. A. No person shall be eligible to participate in

5 the Oklahoma Rising Scholars Award Program unless the person:
5

6 1. Has complied with all of the rules promulgated by the

7 Oklahoma State Regents for Higher Education pursuant to the
7

8 provisions of the Oklahoma Rising Scholars Award Act, Section 2401
8

9 et seq. of this title, for the award, regulation, and administration
9

10 of scholarships; and
10

11 2. Qualifies as one of the following:

12 a. an Individual Applicant Qualified Student, which shall

13 mean a student who is a resident of the State of

14 Oklahoma this state whose American College Testing

15 Program score or whose Scholastic Aptitude Test score

16 on a nationally norm-referenced college entrance exam

17 falls within the 99.5 to 100.0 percentile levels as

18 administered in the State of Oklahoma this state and

19 whose grade point average and/or class rank is

20 exceptional, as determined by the State Regents,

21 b. a Presidential Scholar, which shall mean a student

22 selected by the Commission on Presidential Scholars

23 administered by the United States Department of

24 Education,

Req. No. 3559 Page 571
1 c. a National Merit Scholar, which shall mean a student

2 designated as a National Merit Scholar by the National

3 Merit Scholarship Corporation,

4 d. a National Merit Finalist, which shall mean a student

5 designated as a National Merit Finalist by the

6 National Merit Scholarship Corporation, or

7 e. after October 1, 1999, an Institutional Nominee, which

8 shall mean a student nominated by an institution in

9 The Oklahoma State System of Higher Education:

10 (1) whose American College Testing Program or

11 Scholastic Aptitude Test score on a nationally

12 norm-referenced college entrance exam falls

13 within the 95.0 to 99.49 percentile levels, or

14 (2) who shows exceptional academic achievement as

15 evidenced by factors, including, but not limited

16 to, grade point average, class rank, national

17 awards, scholastic achievements, honors, and who

18 shows exceptional promise based on documentation

19 that may include, but not be limited to, teacher

20 recommendations, extracurricular activities, and

21 evidence of overcoming economic and social

22 obstacles as determined by the State Regents.

23 The State Regents shall ensure that standards of

24 high academic ability are documented.

Req. No. 3559 Page 572
1 Scholarship awards to Institutional Nominees

2 shall become effective when appropriate

3 documentation is verified by the State Regents.

4 B. No person shall be eligible to receive a scholarship

5 pursuant to the provisions of the Oklahoma Rising Scholars Award
5

6 Program unless the person is enrolled as a full-time student at a
6

7 public or private accredited institution of higher education in
7

8 Oklahoma.
8

9 C. For a student who qualifies pursuant to subparagraphs a

10 through d of paragraph 2 of subsection A of this section and subject
10

11 to the availability of funds, the Oklahoma Rising Scholars Award
11

12 Program shall provide a scholarship in an amount not to exceed the
12

13 costs of all enrollment fees, tuition and other fees, room and
13

14 board, and all required textbooks or materials for up to five (5)
14

15 years of undergraduate and/or graduate study at an accredited public
15

16 or private institution of higher education in Oklahoma. The State
16

17 Regents may establish separate scholarship award levels for each
17

18 qualifying category.
18

19 1. If the student is attending an institution within The

20 Oklahoma State System of Higher Education, the total funding for the
20

21 scholarship provided in this subsection, exclusive of any
21

22 internships, shall not exceed the costs for items specified in this
22

23 subsection at the institution attended as determined annually by the
23

24 Oklahoma State Regents for Higher Education.
24

Req. No. 3559 Page 573
1 2. If the student is attending a private institution of higher

2 education, the total funding for the scholarship provided in this
2

3 subsection, exclusive of any internships, shall not exceed the costs
3

4 for items specified in this subsection at an institution of The
4

5 Oklahoma State System of Higher Education of comparable type which
5

6 has the highest general enrollment fees of its type of institution
6

7 in The Oklahoma State System of Higher Education as determined
7

8 annually by the Oklahoma State Regents for Higher Education.
8

9 D. For a student who qualifies pursuant to subparagraph e of

10 paragraph 2 of subsection A of this section and subject to the
10

11 availability of funds, the Oklahoma Rising Scholars Award Program
11

12 shall provide a scholarship in an amount not to exceed the average
12

13 costs of all enrollment fees and other fees, room and board, and all
13

14 required textbooks or materials for up to five (5) years of
14

15 undergraduate and/or graduate study at an accredited public or
15

16 private institution of higher education in Oklahoma. The State
16

17 Regents may establish separate scholarship award levels for each
17

18 qualifying category.
18

19 1. If the student is attending an institution within The

20 Oklahoma State System of Higher Education, the institution shall
20

21 provide a tuition waiver not to exceed the average cost of tuition.
21

22 The total funding for the scholarship and waiver provided for
22

23 students attending an institution within The Oklahoma State System
23

24 of Higher Education as provided in this subsection, exclusive of any
24

Req. No. 3559 Page 574
1 internships, shall not exceed the costs for items specified in this
1

2 subsection at the institution attended as determined annually by the
2

3 Oklahoma State Regents for Higher Education.
3

4 2. If the student is attending a private institution of higher

5 education in Oklahoma, the scholarship shall include an amount not
5

6 to exceed the average cost of tuition. The total funding for
6

7 scholarships for students attending a private institution as
7

8 provided in this subsection, exclusive of any internships, shall not
8

9 exceed the costs for items specified in this subsection at an
9

10 institution within The Oklahoma State System of Higher Education of
10

11 comparable type which has the highest general enrollment fees of its
11

12 type of institution in The Oklahoma State System of Higher Education
12

13 as determined annually by the Oklahoma State Regents for Higher
13

14 Education.
14

15 E. If a person identifies himself or herself as a student with

16 a disability and requests consideration for a scholarship under the
16

17 Oklahoma Rising Scholars Award Program by means other than standard
17

18 testing procedures, the State Regents shall determine what means of
18

19 assessment are appropriate and upon the basis of said such
19

20 assessment results, determine what level of award, if any, shall be
20

21 made.
21

22 SECTION 139. REPEALER 70 O.S. 2021, Section 2403, as

23 amended by Section 6, Chapter 277, O.S.L. 2025 (70 O.S. Supp. 2025,
23

24 Section 2403), is hereby repealed.
24

Req. No. 3559 Page 575
1 SECTION 140. AMENDATORY 74 O.S. 2021, Section 62.3, as

2 amended by Section 1, Chapter 384, O.S.L. 2025 (74 O.S. Supp. 2025,
2

3 Section 62.3), is amended to read as follows:
3

4 Section 62.3. A. The Director of the Office of Management and

5 Enterprise Services shall promulgate rules for use by state agencies
5

6 and the Office of Management and Enterprise Services to dispose of
6

7 surplus property. The rules shall include standards for
7

8 recordkeeping, methods for removal or disposal of surplus property,
8

9 and acquisition by state agencies and authorized entities of surplus
9

10 property, and for Office management of surplus property programs.
10

11 B. A state agency selling, trading, redistributing or otherwise

12 disposing of surplus property shall comply with the rules
12

13 promulgated by the Director.
13

14 C. The Office shall make surplus property available to state

15 agencies and authorized entities, which shall include political
15

16 subdivisions, school districts, and nonprofit entities of this
16

17 state.
17

18 D. The provisions of the Oklahoma Surplus Property Act shall

19 not apply to institutions of higher education in this state, the
19

20 Oklahoma Historical Society, the University Hospitals Authority or
20

21 University Hospitals Trust or the Northeast Oklahoma Public
21

22 Facilities Authority. The Grand River Dam Authority shall be exempt
22

23 from the provisions of the Oklahoma Surplus Property Act for any
23

24 surplus property disposed of prior to November 1, 2006. CompSource
24

Req. No. 3559 Page 576
1 Oklahoma shall be exempt from the provisions of the Oklahoma Surplus
1

2 Property Act if CompSource Oklahoma is operating pursuant to a pilot
2

3 program authorized by Sections 3316 and 3317 of this title.
3

4 E. Notwithstanding the provisions of the Oklahoma Surplus

5 Property Act, the Oklahoma State Bureau of Investigation may,
5

6 pursuant to rules promulgated by the Oklahoma State Bureau of
6

7 Investigation Commission for that purpose, donate any surplus
7

8 property, as defined in Section 62.2 of this title, to any law
8

9 enforcement agency of any political subdivision of the State of
9

10 Oklahoma. The use of such donated equipment shall be limited to
10

11 valid and authorized law enforcement efforts by the receiving
11

12 agency.
12

13 F. Notwithstanding the provisions of the Oklahoma Surplus

14 Property Act, the Oklahoma Highway Patrol may, pursuant to rules
14

15 promulgated by the Director of the Office of Management and
15

16 Enterprise Services, donate surplus Oklahoma Highway Patrol vehicles
16

17 driven over ninety thousand (90,000) miles to any law enforcement
17

18 agency of any political subdivision of the State of Oklahoma in a
18

19 county with a population of no more than one hundred thousand
19

20 (100,000) residents. The use of such donated vehicles shall be
20

21 limited to valid and authorized law enforcement efforts by the
21

22 receiving agency.
22

Req. No. 3559 Page 577
1 SECTION 141. REPEALER 74 O.S. 2021, Section 62.3, as

2 amended by Section 6, Chapter 199, O.S.L. 2025 (74 O.S. Supp. 2025,
2

3 Section 62.3), is hereby repealed.
3

4 SECTION 142. REPEALER 74 O.S. 2021, Section 85.58A, as

5 amended by Section 4, Chapter 245, O.S.L. 2024 (74 O.S. Supp. 2025,
5

6 Section 85.58A), is hereby repealed.
6

7 SECTION 143. AMENDATORY 74 O.S. 2021, Section 902, as

8 last amended by Section 1, Chapter 139, O.S.L. 2024 (74 O.S. Supp.
8

9 2025, Section 902), is amended to read as follows:
9

10 Section 902. As used in Section 901 et seq. of this title:

11 (1) "System" means the Oklahoma Public Employees Retirement

12 System as established by Section 901 et seq. of this title and as it
12

13 may hereafter be amended;
13

14 (2) "Accumulated contributions" means the sum of all

15 contributions by a member to the System which shall be credited to
15

16 the member's account;
16

17 (3) "Act" means Sections 901 to 932, inclusive, of this title;

18 (4) "Actuarial equivalent" means a deferred income benefit of

19 equal value to the accumulated deposits or benefits when computed
19

20 upon the basis of the actuarial tables in use by the System;
20

21 (5) "Actuarial tables" means the actuarial tables approved and

22 in use by the Board at any given time;
22

23 (6) "Actuary" means the actuary or firm of actuaries employed

24 by the Board at any given time;
24

Req. No. 3559 Page 578
1 (7) "Beneficiary" means any person named by a member to receive

2 any benefits as provided for by Section 901 et seq. of this title.
2

3 If there is no beneficiary living at time of member employee's
3

4 death, the member's estate shall be the beneficiary;
4

5 (8) "Board" means the Oklahoma Public Employees Retirement

6 System Board of Trustees;
6

7 (9) "Compensation" means all salary and wages, as defined by

8 the Board of Trustees, including amounts deferred under deferred
8

9 compensation agreements entered into between a member and a
9

10 participating employer. Compensation shall not mean payment for
10

11 overtime, payable to a member of the System for personal services
11

12 performed for a participating employer, compensation or
12

13 reimbursement for traveling, moving expenses, or any compensation in
13

14 excess of the maximum compensation level, provided:
14

15 (a) For compensation for service prior to January 1, 1988,

16 the maximum compensation level shall be Twenty-five

17 Thousand Dollars ($25,000.00) per annum.

18 For compensation for service on or after January 1,

19 1988, through June 30, 1994, the maximum compensation

20 level shall be Forty Thousand Dollars ($40,000.00) per

21 annum.

22 For compensation for service on or after July 1, 1994,

23 through June 30, 1995, the maximum compensation level

24 shall be Fifty Thousand Dollars ($50,000.00) per

Req. No. 3559 Page 579
1 annum; for compensation for service on or after July

2 1, 1995, through June 30, 1996, the maximum

3 compensation level shall be Sixty Thousand Dollars

4 ($60,000.00) per annum; for compensation for service

5 on or after July 1, 1996, through June 30, 1997, the

6 maximum compensation level shall be Seventy Thousand

7 Dollars ($70,000.00) per annum; and for compensation

8 for service on or after July 1, 1997, through June 30,

9 1998, the maximum compensation level shall be Eighty

10 Thousand Dollars ($80,000.00) per annum. For

11 compensation for services on or after July 1, 1998,

12 there shall be no maximum compensation level for

13 retirement purposes.

14 (b) Compensation for retirement purposes shall include any

15 amount of elective salary reduction under Section 457

16 of the Internal Revenue Code of 1986 and any amount of

17 nonelective salary reduction under Section 414(h) of

18 the Internal Revenue Code of 1986.

19 (c) Notwithstanding any provision to the contrary, the

20 compensation taken into account for any employee in

21 determining the contribution or benefit accruals for

22 any plan year is subject to the annual compensation

23 limit under Section 401(a)(17) of the federal Internal

24 Revenue Code.

Req. No. 3559 Page 580
1 (d) Current appointed members of the Oklahoma Tax

2 Commission whose salary is constitutionally limited

3 and is less than the highest salary allowed by law for

4 his or her position shall be allowed, within ninety

5 (90) days from March 21, 2001, to make an election to

6 use the highest salary allowed by law for the position

7 to which the member was appointed for the purposes of

8 making contributions and determination of retirement

9 benefits. Such election shall be irrevocable and in

10 writing. Reappointment to the same office shall not

11 permit a new election. Members appointed to the

12 Oklahoma Tax Commission after March 21, 2001, shall

13 make such election, pursuant to this subparagraph,

14 within ninety (90) days of taking office;

15 (10) "Credited service" means the sum of participating service,

16 prior service and elected service;
16

17 (11) "Dependent" means a parent, child, or spouse of a member

18 who is dependent upon the member for at least one-half (1/2) of the
18

19 member's support;
19

20 (12) "Effective date" means the date upon which the System

21 becomes effective by operation of law;
21

22 (13) "Eligible employer" means the state and any county, county

23 hospital, city or town, conservation districts, circuit engineering
23

24 districts and any public or private trust in which a county, city or
24

Req. No. 3559 Page 581
1 town participates and is the primary beneficiary, whose employees
1

2 are covered by Social Security and are not covered by or eligible
2

3 for another retirement plan authorized under the laws of this state
3

4 which is in operation on the initial entry date. Emergency medical
4

5 service districts may join the System upon proper application to the
5

6 Board. Provided, affiliation by a county hospital shall be in the
6

7 form of a resolution adopted by the board of control.
7

8 (a) If a class or several classes of employees of any

9 above-defined employers are covered by Social Security

10 and are not covered by or eligible for and will not

11 become eligible for another retirement plan authorized

12 under the laws of this state, which is in operation on

13 the effective date, such employer shall be deemed an

14 eligible employer, but only with respect to that class

15 or those classes of employees as defined in this

16 section.

17 (b) A class or several classes of employees who are

18 covered by Social Security and are not covered by or

19 eligible for and will not become eligible for another

20 retirement plan authorized under the laws of this

21 state, which is in operation on the effective date,

22 and when the qualifications for employment in such

23 class or classes are set by state law; and when such

24 class or classes of employees are employed by a county

Req. No. 3559 Page 582
1 or municipal government pursuant to such

2 qualifications; and when the services provided by such

3 employees are of such nature that they qualify for

4 matching by or contributions from state or federal

5 funds administered by an agency of state government

6 which qualifies as a participating employer, then the

7 agency of state government administering the state or

8 federal funds shall be deemed an eligible employer,

9 but only with respect to that class or those classes

10 of employees as defined in this subsection; provided,

11 that the required contributions to the retirement plan

12 may be withheld from the contributions of state or

13 federal funds administered by the state agency and

14 transmitted to the System on the same basis as the

15 employee and employer contributions are transmitted

16 for the direct employees of the state agency. The

17 retirement or eligibility for retirement under the

18 provisions of law providing pensions for service as a

19 volunteer firefighter shall not render any person

20 ineligible for participation in the benefits provided

21 for in Section 901 et seq. of this title. An employee

22 of any public or private trust in which a county, city

23 or town participates and is the primary beneficiary

Req. No. 3559 Page 583
1 shall be deemed to be an eligible employee for the

2 purpose of Section 901 et seq. of this title only.

3 (c) All employees of the George Nigh Rehabilitation

4 Institute who elected to retain membership in the

5 System, pursuant to Section 913.7 of this title, shall

6 continue to be eligible employees for the purposes of

7 Section 901 et seq. of this title. The George Nigh

8 Rehabilitation Institute shall be considered a

9 participating employer only for such employees.

10 (d) All employees of CompSource Mutual Insurance Company

11 who retain membership in the Oklahoma Public Employees

12 Retirement System pursuant to Section 913.9 of this

13 title shall continue to be eligible employees for the

14 purposes of the Oklahoma Public Employees Retirement

15 System. CompSource Mutual Insurance Company shall be

16 considered a participating employer only for such

17 employees.

18 (e) All employees of a successor organization, as defined

19 by Section 5-60.12 of Title 2 of the Oklahoma

20 Statutes, who retain membership in the Oklahoma Public

21 Employees Retirement System pursuant to Section 5-

22 60.35 of Title 2 of the Oklahoma Statutes shall

23 continue to be eligible employees for the purposes of

24 the Oklahoma Public Employees Retirement System. A

Req. No. 3559 Page 584
1 successor organization shall be considered a

2 participating employer only for such employees.

3 (f) A participating employer of the Teachers' Retirement

4 System of Oklahoma, who has one or more employees who

5 have made an election pursuant to enabling legislation

6 to retain membership in the System as a result of

7 change in administration, shall be considered a

8 participating employer of the Oklahoma Public

9 Employees Retirement System only for such employees;

10 (14) "Employee" means any officer or employee of a

11 participating employer, whose employment is not seasonal or
11

12 temporary and whose employment requires at least one thousand
12

13 (1,000) hours of work per year and whose salary or wage is equal to
13

14 the hourly rate of the monthly minimum wage for state employees.
14

15 For those eligible employers outlined in Section 910 of this title,
15

16 the rate shall be equal to the hourly rate of the monthly minimum
16

17 wage for that employer. Each employer, whose minimum wage is less
17

18 than the state's minimum wage, shall inform the System of the
18

19 minimum wage for that employer. This notification shall be by
19

20 resolution of the governing body.
20

21 (a) Any employee of the county extension agents who is not

22 currently participating in the Teachers' Retirement

23 System of Oklahoma shall be a member of this System.

Req. No. 3559 Page 585
1 (b) Eligibility shall not include any employee who is a

2 contributing member of the United States Civil Service

3 Retirement System.

4 (c) It shall be mandatory for an officer, appointee or

5 employee of the office of district attorney to become

6 a member of this System if he or she is not currently

7 participating in a county retirement system. Provided

8 further, that if an officer, appointee or employee of

9 the office of district attorney is currently

10 participating in such county retirement system, he or

11 she is ineligible for this System as long as he or she

12 is eligible for such county retirement system. Any

13 eligible officer, appointee or employee of the office

14 of district attorney shall be given credit for prior

15 service as defined in this section. The provisions

16 outlined in Section 917 of this title shall apply to

17 those employees who have previously withdrawn their

18 contributions.

19 (d) Eligibility shall also not include any officer or

20 employee of the Oklahoma Employment Security

21 Commission, except for those officers and employees of

22 the Commission electing to transfer to this System

23 pursuant to the provisions of Section 910.1 of this

24 title or any other class of officers or employees

Req. No. 3559 Page 586
1 specifically exempted by the laws of this state,

2 unless there be a consolidation as provided by Section

3 912 of this title. Employees of the Oklahoma

4 Employment Security Commission who are ineligible for

5 enrollment in the Oklahoma Employment Security

6 Commission Retirement Plan, that was in effect on

7 January 1, 1964, shall become members of this System.

8 (e) Any employee employed by the Legislative Service

9 Bureau, Senate or House of Representatives for the

10 full duration of a regular legislative session shall

11 be eligible for membership in the System regardless of

12 classification as a temporary employee and may

13 participate in the System during the regular

14 legislative session at the option of the employee.

15 For purposes of this subparagraph, the determination

16 of whether an employee is employed for the full

17 duration of a regular legislative session shall be

18 made by the Legislative Service Bureau if such

19 employee is employed by the Legislative Service

20 Bureau, the Senate if such employee is employed by the

21 Senate, or by the House of Representatives if such

22 employee is employed by the House of Representatives.

23 Each regular legislative session during which the

24 legislative employee or an employee of the Legislative

Req. No. 3559 Page 587
1 Service Bureau participates full time shall be counted

2 as six (6) months of full-time participating service.

3 (i) Except as otherwise provided by this

4 subparagraph, once a temporary session employee

5 makes a choice to participate or not, the choice

6 shall be binding for all future legislative

7 sessions during which the employee is employed.

8 (ii) Notwithstanding the provisions of division (i) of

9 this subparagraph, any employee, who is eligible

10 for membership in the System because of the

11 provisions of this subparagraph and who was

12 employed by the Senate or House of

13 Representatives after January 1, 1989, may file

14 an election, in a manner specified by the Board,

15 to participate as a member of the System prior to

16 September 1, 1989.

17 (iii) Notwithstanding the provisions of division (i) of

18 this subparagraph, a temporary legislative

19 session employee who elected to become a member

20 of the System may withdraw from the System

21 effective the day such employee elected to

22 participate in the System upon written request to

23 the Board. Any such request must be received by

24 the Board prior to October 1, 1990. All employee

Req. No. 3559 Page 588
1 contributions made by the temporary legislative

2 session employee shall be returned to the

3 employee without interest within four (4) months

4 of receipt of the written request.

5 (iv) A member of the System who did not initially

6 elect to participate as a member of the System

7 pursuant to this subparagraph shall be able to

8 acquire service performed as a temporary

9 legislative session employee for periods of

10 service performed prior to the date upon which

11 the person became a member of the System if:

12 a. the member files an election with the System

13 not later than December 31, 2000, to

14 purchase the prior service; and

15 b. the member makes payment to the System of

16 the actuarial cost of the service credit

17 pursuant to subsection A of Section 913.5 of

18 this title. The provisions of Section 913.5

19 of this title shall be applicable to the

20 purchase of the service credit, including

21 the provisions for determining service

22 credit in the event of incomplete payment

23 due to cessation of payments, death,

24 termination of employment or retirement, but

Req. No. 3559 Page 589
1 the payment may extend for a period not to

2 exceed ninety-six (96) months;

3 (15) "Entry date" means the date on which an eligible employer

4 joins the System. The first entry date pursuant to Section 901 et
4

5 seq. of this title shall be January 1, 1964;
5

6 (16) "Executive Director" means the managing officer of the

7 System employed by the Board under Section 901 et seq. of this
7

8 title;
8

9 (17) "Federal Internal Revenue Code" means the federal Internal

10 Revenue Code of 1954 or 1986, as amended and as applicable to a
10

11 governmental plan as in effect on July 1, 1999;
11

12 (18) "Final average compensation" means the average annual

13 compensation, including amounts deferred under deferred compensation
13

14 agreements entered into between a member and a participating
14

15 employer, up to, but not exceeding the maximum compensation levels
15

16 as provided in paragraph (9) of this section received during the
16

17 highest three (3) of the last ten (10) years of participating
17

18 service immediately preceding retirement or termination of
18

19 employment and with respect to members whose first participating
19

20 service occurs on or after July 1, 2013, the compensation received
20

21 during the highest five (5) of the last ten (10) years of
21

22 participating service immediately preceding retirement or
22

23 termination of employment. Provided, no member shall retire with a
23

24 final average compensation unless the member has made the required
24

Req. No. 3559 Page 590
1 contributions on such compensation, as defined by the Board of
1

2 Trustees;
2

3 (19) "Fiscal year" means the period commencing July 1 of any

4 year and ending June 30 of the next year. The fiscal year is the
4

5 plan year for purposes of the federal Internal Revenue Code;
5

6 however, the calendar year is the limitation year for purposes of
6

7 Section 415 of the federal Internal Revenue Code;
7

8 (20) "Fund" means the Oklahoma Public Employees Retirement Fund

9 as created by Section 901 et seq. of this title;
9

10 (21) "Leave of absence" means a period of absence from

11 employment without pay, authorized and approved by the employer and
11

12 acknowledged to the Board, and which after the effective date does
12

13 not exceed two (2) years;
13

14 (22) "Member" means an eligible employee or elected official

15 who is in the System and is making the required employee or elected
15

16 official contributions, or any former employee or elected official
16

17 who shall have made the required contributions to the System and
17

18 shall have not received a refund or withdrawal;
18

19 (23) "Military service" means service in the Armed Forces of

20 the United States by an honorably discharged person during the
20

21 following time periods, as reflected on such person's Defense
21

22 Department Form 214, not to exceed five (5) years for combined
22

23 participating and/or prior service, as follows:
23

Req. No. 3559 Page 591
1 (a) during the following periods, including the beginning

2 and ending dates, and only for the periods served,

3 from:

4 (i) April 6, 1917, to November 11, 1918, commonly

5 referred to as World War I,

6 (ii) September 16, 1940, to December 7, 1941, as a

7 member of the 45th Division,

8 (iii) December 7, 1941, to December 31, 1946, commonly

9 referred to as World War II,

10 (iv) June 27, 1950, to January 31, 1955, commonly

11 referred to as the Korean Conflict or the Korean

12 War,

13 (v) February 28, 1961, to May 7, 1975, commonly

14 referred to as the Vietnam era, except that:

15 a. for the period from February 28, 1961, to

16 August 4, 1964, military service shall only

17 include service in the Republic of Vietnam

18 during that period, and

19 b. for purposes of determining eligibility for

20 education and training benefits, such period

21 shall end on December 31, 1976, or

22 (vi) August 1, 1990, to December 31, 1991, commonly

23 referred to as the Gulf War, the Persian Gulf

24 War, or Operation Desert Storm, but excluding any

Req. No. 3559 Page 592
1 person who served on active duty for training

2 only, unless discharged from such active duty for

3 a service-connected disability;

4 (b) during a period of war or combat military operation

5 other than a conflict, war or era listed in

6 subparagraph (a) of this paragraph, beginning on the

7 date of Congressional authorization, Congressional

8 resolution, or Executive Order of the President of the

9 United States, for the use of the Armed Forces of the

10 United States in a war or combat military operation,

11 if such war or combat military operation lasted for a

12 period of ninety (90) days or more, for a person who

13 served, and only for the period served, in the area of

14 responsibility of the war or combat military

15 operation, but excluding a person who served on active

16 duty for training only, unless discharged from such

17 active duty for a service-connected disability, and

18 provided that the burden of proof of military service

19 during this period shall be with the member, who must

20 present appropriate documentation establishing such

21 service.

22 An eligible member under this paragraph shall include only those
22

23 persons who shall have served during the times or in the areas
23

24 prescribed in this paragraph, and only if such person provides
24

Req. No. 3559 Page 593
1 appropriate documentation in such time and manner as required by the
1

2 System to establish such military service prescribed in this
2

3 paragraph, or for service pursuant to subdivision a of division (v)
3

4 of subparagraph (a) of this paragraph those persons who were awarded
4

5 service medals, as authorized by the United States Department of
5

6 Defense as reflected in the veteran's Defense Department Form 214,
6

7 related to the Vietnam Conflict for service prior to August 5, 1964;
7

8 (24) "Normal retirement date" means the date on which a member

9 may retire with full retirement benefits as provided in Section 901
9

10 et seq. of this title, such date being whichever occurs first:
10

11 (a) the first day of the month coinciding with or

12 following a member's:

13 (1) sixty-second birthday with respect to members

14 whose first participating service occurs prior to

15 November 1, 2011, or

16 (2) sixty-fifth birthday with respect to members

17 whose first participating service occurs on or

18 after November 1, 2011, or with respect to

19 members whose first participating service occurs

20 on or after November 1, 2011, who reach a minimum

21 age of sixty (60) years and who also reach a

22 normal retirement date pursuant to subparagraph c

23 of this paragraph,

Req. No. 3559 Page 594
1 (b) for any person who initially became a member prior to

2 July 1, 1992, and who does not reach a normal

3 retirement date pursuant to division (1) of

4 subparagraph (a) of this paragraph, the first day of

5 the month coinciding with or following the date at

6 which the sum of a member's age and number of years of

7 credited service total eighty (80); such a normal

8 retirement date will also apply to any person who

9 became a member of the sending system as defined in

10 Section 901 et seq. of this title, prior to July 1,

11 1992, regardless of whether there were breaks in

12 service after July 1, 1992,

13 (c) for any person who became a member after June 30,

14 1992, but prior to November 1, 2011, and who does not

15 reach a normal retirement date pursuant to division

16 (1) of subparagraph (a) of this paragraph, the first

17 day of the month coinciding with or following the date

18 at which the sum of a member's age and number of years

19 of credited service total ninety (90),

20 (d) in addition to subparagraphs (a), (b) and (c) of this

21 paragraph, the first day of the month coinciding with

22 or following a member's completion of at least twenty

23 (20) years of full-time-equivalent employment as:

Req. No. 3559 Page 595
1 (i) a correctional or probation and parole officer

2 with the Department of Corrections and at the

3 time of retirement, the member was a correctional

4 or probation and parole officer with the

5 Department of Corrections,

6 (ii) a correctional officer, probation and parole

7 officer or fugitive apprehension agent with the

8 Department of Corrections who is in such position

9 on June 30, 2004, or who is hired after June 30,

10 2004, and who receives a promotion or change in

11 job classification after June 30, 2004, to

12 another position in the Department of

13 Corrections, so long as such officer or agent has

14 at least five (5) years of service as a

15 correctional officer, probation and parole

16 officer or fugitive apprehension agent with the

17 Department, has twenty (20) years of full-time-

18 equivalent employment with the Department and was

19 employed by the Department at the time of

20 retirement,

21 (iii) a firefighter with the Military Department of the

22 State of Oklahoma either employed for the first

23 time on or after July 1, 2002, or who was

24 employed prior to July 1, 2002, in such position

Req. No. 3559 Page 596
1 and who makes the election authorized by division

2 (2) of subparagraph b of paragraph (9) of

3 subsection A of Section 915 of this title and at

4 the time of retirement, the member was a

5 firefighter with the Military Department of the

6 State of Oklahoma, and such member has at least

7 twenty (20) years of credited service upon which

8 the two and one-half percent (2 1/2%) multiplier

9 will be used in calculating the retirement

10 benefit,

11 (iv) a public safety officer employed by the Grand

12 River Dam Authority for the first time on or

13 after July 1, 2016,

14 (v) a deputy sheriff or jailer employed by any county

15 that is a participating employer in the System

16 for the first time as a deputy sheriff or jailer

17 on or after November 1, 2020, or

18 (vi) licensed emergency medical personnel, as defined

19 pursuant to Section 1-2503 of Title 63 of the

20 Oklahoma Statutes, holding a license issued by

21 the State Department of Health pursuant to

22 Section 1-2505 of Title 63 of the Oklahoma

23 Statutes, including emergency medical responders,

24 emergency medical technicians, intermediate

Req. No. 3559 Page 597
1 emergency medical technicians, advanced emergency

2 medical technicians, and paramedics employed by

3 any participating employer as a licensed

4 emergency medical personnel for the first time on

5 or after the effective date of this act, or

6 (vii) beginning November 1, 2024, a deputy sheriff or

7 jailer employed by any county that is a

8 participating employer in the System for the

9 first time as a deputy sheriff or jailer before

10 November 1, 2020, including those who make the

11 election authorized by division (2) of

12 subparagraph b of paragraph (10) of subsection A

13 of Section 915 of this title, and at the time of

14 retirement, if the member was a deputy sheriff or

15 jailer employed by the participating county, and

16 such member has at least twenty (20) years of

17 credited service upon which the two and one-half

18 percent (2 1/2%) multiplier will be used in

19 calculating the retirement benefit,

20 (e) for those fugitive apprehension agents who retire on

21 or after July 1, 2002, the first day of the month

22 coinciding with or following a member's completion of

23 at least twenty (20) years of full-time-equivalent

24 employment as a fugitive apprehension agent with the

Req. No. 3559 Page 598
1 Department of Corrections and at the time of

2 retirement, the member was a fugitive apprehension

3 agent with the Department of Corrections, or

4 (f) for any member who was continuously employed by an

5 entity or institution within The Oklahoma State System

6 of Higher Education and whose initial employment with

7 such entity or institution was prior to July 1, 1992,

8 and who without a break in service of more than thirty

9 (30) days became employed by an employer participating

10 in the Oklahoma Public Employees Retirement System,

11 the first day of the month coinciding with or

12 following the date at which the sum of the member's

13 age and number of years of credited service total

14 eighty (80);

15 (25) "Participating employer" means an eligible employer who

16 has agreed to make contributions to the System on behalf of its
16

17 employees;
17

18 (26) "Participating service" means the period of employment

19 after the entry date for which credit is granted a member.
19

20 Provided, on or after the effective date of this act, military
20

21 service credit purchased under Section 913.8 of this title shall
21

22 only be considered "participating service" if such service is
22

23 immediately preceded by a period of employment with a participating
23

24 employer and followed by a return to service as an employee with the
24

Req. No. 3559 Page 599
1 same or another participating employer within ninety (90) days
1

2 immediately following discharge from such military service;
2

3 (27) "Prior service" means the period of employment of a member

4 by an eligible employer prior to the member's entry date for which
4

5 credit is granted a member under Section 901 et seq. of this title.
5

6 Provided, on or after the effective date of this act, "prior
6

7 service" shall also include service purchased under Section 913.8 of
7

8 this title which does not meet the requirements of paragraph 26 of
8

9 this section;
9

10 (28) "Retirant" or "retiree" means a member who has retired

11 under the System;
11

12 (29) "Retirement benefit" means a monthly income with benefits

13 accruing from the first day of the month coinciding with or
13

14 following retirement and ending on the last day of the month in
14

15 which death occurs or the actuarial equivalent thereof paid in such
15

16 manner as specified by the member pursuant to Section 901 et seq. of
16

17 this title or as otherwise allowed to be paid at the discretion of
17

18 the Board;
18

19 (30) "Retirement coordinator" means the individual designated

20 by each participating employer through whom System transactions and
20

21 communication shall be directed;
21

22 (31) "Social Security" means the old-age survivors and

23 disability section of the federal Social Security Act;
23

Req. No. 3559 Page 600
1 (32) "Total disability" means a physical or mental disability

2 accepted for disability benefits by the federal Social Security
2

3 System;
3

4 (33) "Service-connected disability benefits" means military

5 service benefits which are for a service-connected disability rated
5

6 at twenty percent (20%) or more by the Veterans Administration or
6

7 the Armed Forces of the United States;
7

8 (34) "Elected official" means a person elected to a state

9 office in the legislative or executive branch of state government or
9

10 a person elected to a county office for a definite number of years
10

11 and shall include an individual who is appointed to fill the
11

12 unexpired term of an elected state official;
12

13 (35) "Elected service" means the period of service as an

14 elected official;
14

15 (36) "Limitation year" means the year used in applying the

16 limitations of Section 415 of the Internal Revenue Code of 1986,
16

17 which year shall be the calendar year; and
17

18 (37) "Public safety officers of the Grand River Dam Authority"

19 means those persons hired by the Grand River Dam Authority on or
19

20 after March 21, 2001, who are certified by the Council on Law
20

21 Enforcement Education and Training or an equivalent certifying
21

22 entity for law enforcement personnel training and who perform law
22

23 enforcement functions as part of their regularly assigned duties and
23

24 responsibilities on a full-time basis. With respect to any public
24

Req. No. 3559 Page 601
1 safety officer hired by the Grand River Dam Authority on or after
1

2 March 21, 2001, any earned benefits or credits toward retirement
2

3 benefits from previous participation within the Oklahoma Public
3

4 Employees Retirement System or the Oklahoma Law Enforcement
4

5 Retirement System shall remain within that system.
5

6 SECTION 144. REPEALER 74 O.S. 2021, Section 902, as last

7 amended by Section 1, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2025,
7

8 Section 902), is hereby repealed.
8

9 SECTION 145. AMENDATORY 74 O.S. 2021, Section 915, as

10 amended by Section 2, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2025,
10

11 Section 915), is amended to read as follows:
11

12 Section 915. A. (1) Except as otherwise provided in this

13 subsection and as provided for elected officials in Section 913.4 of
13

14 this title, any member who shall retire on or after the member's
14

15 normal retirement date shall be entitled to receive an annual
15

16 retirement benefit equal to two percent (2%) of the member's final
16

17 average compensation as determined pursuant to paragraph (18) of
17

18 Section 902 of this title, multiplied by the number of years of
18

19 credited service that has been credited to the member in accordance
19

20 with the provisions of Section 913 of this title other than years
20

21 credited pursuant to paragraph (2) of this subsection.
21

22 (2) Effective January 1, 2004, except as otherwise provided for

23 elected officials in Section 913.4 of this title and except for
23

24 those members making contributions pursuant to paragraphs (c), (d),
24

Req. No. 3559 Page 602
1 (e) and, (f), (g) and (h) of subsection (1) of Section 919.1 of this
1
2 title, any member who shall retire shall be entitled to receive an
2

3 annual retirement benefit equal to two and one-half percent (2 1/2%)
3
4 of the member's final average compensation as determined pursuant to
4
5 paragraph (18) of Section 902 of this title, multiplied by the
5
6 number of full years of participating service after January 1, 2004,
6
7 that have been credited to the member in accordance with the
7

8 provisions of Section 913 of this title and only for those full
8
9 years of participating service for which contributions have been
9

10 made pursuant to paragraph (g) of subsection (1) of Section 919.1 of
10
11 this title. The two and one-half percent (2 1/2%) multiplier shall
11

12 not apply to purchased service, purchased or granted military
12

13 service or transferred service. In order to receive the two and
13
14 one-half percent (2 1/2%) multiplier in computing retirement
14

15 benefits, an active member shall make an irrevocable written
15
16 election to pay the contributions pursuant to paragraph (g) of
16

17 subsection (1) of Section 919.1 of this title. The two and one-half
17
18 percent (2 1/2%) multiplier pursuant to this paragraph shall not
18
19 apply to additional years of service credit attributed to sick leave
19

20 pursuant to paragraph 7 of subsection B of Section 913 of this title
20
21 and fractional years pursuant to subsection C of Section 913 of this
21

22 title and shall be attributable only to the participating service
22
23 credited after the election of the member.
23
24
24

Req. No. 3559 Page 603
1 (3) The minimum final average compensation for any person who

2 becomes a member of the Oklahoma Public Employees Retirement System
2

3 on or after July 1, 1995, and who had:
3

4 a. and who had twenty (20) or more years of credited

5 service within the System as of the member's

6 retirement date shall be no less than Thirteen

7 Thousand Eight Hundred Dollars ($13,800.00) per annum,

8 b. and who had at least fifteen (15) but not more than

9 nineteen (19) years of credited service within the

10 System as of the member's retirement date shall be no

11 less than Six Thousand Nine Hundred Dollars

12 ($6,900.00) per annum,

13 c. and who had less than fifteen (15) years of credited

14 service within the System as of the member's

15 retirement date shall not be eligible for any minimum

16 amount of final average compensation and the member's

17 final average compensation shall be the final average

18 compensation as defined by paragraph (18) of Section

19 902 of this title.

20 (4) Provided, further, any member who has elected a vested

21 benefit pursuant to Section 917 of this title shall be entitled to
21

22 receive benefits as outlined in this section except the percent
22

23 factor and the member's maximum compensation level in effect the
23

Req. No. 3559 Page 604
1 date the member's employment was terminated with a participating
1

2 employer shall be applicable.
2

3 (5) Any member who is a correctional officer or a probation and

4 parole officer employed by the Department of Corrections at the time
4

5 of retirement and who retires on or before June 30, 2000, shall be
5

6 entitled to receive an annual retirement benefit equal to two and
6

7 one-half percent (2 1/2%) of the final average compensation of the
7

8 member not to exceed Twenty-five Thousand Dollars ($25,000.00) and
8

9 two percent (2%) of the final average salary in excess of Twenty-
9

10 five Thousand Dollars ($25,000.00) but not exceeding the maximum
10

11 compensation level as provided in paragraph (9) of Section 902 of
11

12 this title, multiplied by the number of years of service as a
12

13 correctional officer or a probation and parole officer; provided,
13

14 any years accrued prior to July 1, 1990, as a correctional officer
14

15 or a probation and parole officer by a member who is employed as a
15

16 correctional officer or a probation and parole officer on July 1,
16

17 1990, shall be calculated for retirement purposes at two and one-
17

18 quarter percent (2 1/4%) of the final average compensation of the
18

19 member not to exceed Twenty-five Thousand Dollars ($25,000.00) and
19

20 two percent (2%) of the final average salary in excess of Twenty-
20

21 five Thousand Dollars ($25,000.00) but not exceeding the maximum
21

22 compensation level as provided in paragraph (9) of Section 902 of
22

23 this title, multiplied by the number of years of such service and
23

24 any years in excess of twenty (20) years as such an officer or years
24

Req. No. 3559 Page 605
1 credited to the member in accordance with the provisions of Section
1
2 913 of this title shall be calculated for retirement purposes at two
2

3 percent (2%) of the final average compensation of the member
3
4 multiplied by the number of years of such service. Any person who
4
5 contributes to the System as a correctional officer or a probation
5
6 and parole officer as provided in paragraph (b) or (c) of subsection
6
7 (1) of Section 919.1 of this title, on or before June 30, 2000, but
7

8 who does not make such contributions after June 30, 2000, and who
8
9 does not qualify for normal retirement under subparagraph (c) of
9

10 paragraph (24) of Section 902 of this title shall have retirement
10
11 benefits for each year of full-time-equivalent participating service
11

12 as a correctional or a probation and parole officer after July 1,
12

13 1990, computed on two and one-half percent (2 1/2%) of the final
13
14 average compensation based upon those years as a correctional
14

15 officer or a probation and parole officer. Provided, further, any
15
16 fugitive apprehension agent shall be entitled to receive benefits as
16

17 outlined in this act Section 901 et seq. of this title for service
17
18 as a fugitive apprehension agent prior to July 1, 2002, only upon
18
19 payment to the System of the employee contributions which would have
19

20 been paid if such fugitive apprehension agent had been covered by
20
21 this section prior to the effective date of this act July 1, 2002,
21

22 plus interest of not to exceed ten percent (10%) as determined by
22
23 the Oklahoma Public Employees Retirement Board of Trustees. The
23
24
24

Req. No. 3559 Page 606
1 Department of Corrections may make the employee contribution and
1

2 interest payment on behalf of such member.
2

3 (6) Any member who is a correctional officer, a probation and

4 parole officer or a fugitive apprehension agent employed by the
4

5 Department of Corrections at the time of retirement and who retires
5

6 on or after July 1, 2002, shall be entitled to receive an annual
6

7 retirement benefit equal to two and one-half percent (2 1/2%) of the
7

8 final average compensation of the member, but not exceeding the
8

9 maximum compensation level as provided in paragraph (18) of Section
9

10 902 of this title, multiplied by the number of years of service as a
10

11 correctional officer, a probation and parole officer or a fugitive
11

12 apprehension agent, and any years in excess of twenty (20) years as
12

13 such an officer or agent, or years credited to the member in
13

14 accordance with the provisions of Section 913 of this title, shall
14

15 be calculated for retirement purposes at two percent (2%) of the
15

16 final average compensation of the member multiplied by the number of
16

17 years of such service. For purposes of this paragraph, "final
17

18 average compensation" shall be determined by computing the average
18

19 annual salary, in the manner prescribed by paragraph (18) of Section
19

20 902 of this title, for the highest three (3) years of the last ten
20

21 (10) years of participating service immediately preceding retirement
21

22 or termination of employment for all years of service performed by
22

23 such member, both for years of service performed as a correctional
23

24 officer, probation and parole officer or fugitive apprehension
24

Req. No. 3559 Page 607
1 agent, not in excess of twenty (20) years, and for years of service
1

2 performed in excess of twenty (20) years, whether as a correctional
2

3 officer, probation and parole officer, fugitive apprehension agent
3

4 or other position unless the computation of benefits would result in
4

5 a lower retirement benefit amount than if final average compensation
5

6 were to be computed as otherwise provided by this paragraph. "Final
6

7 average compensation" Final average compensation shall be determined
7

8 by computing the average annual salary for the highest five (5) of
8

9 the last ten (10) years of participating service immediately
9

10 preceding retirement or termination of employment, with respect to
10

11 members whose first participating service occurs on or after July 1,
11

12 2013.
12

13 (7) Any member who is a correctional officer, a probation and

14 parole officer or a fugitive apprehension agent who has at least
14

15 five (5) years of service as a correctional officer, a probation and
15

16 parole officer or a fugitive apprehension agent who is in such
16

17 position on June 30, 2004, or who is hired after June 30, 2004, in
17

18 such position, and who receives a promotion or change in job
18

19 classification after June 30, 2004, to another position in the
19

20 Department of Corrections, and who is employed by the Department of
20

21 Corrections at the time of retirement and who retires on or after
21

22 July 1, 2004, shall be entitled to receive an annual retirement
22

23 benefit equal to two and one-half percent (2 1/2%) of the final
23

24 average compensation of the member, but not exceeding the maximum
24

Req. No. 3559 Page 608
1 compensation level as provided in paragraph (18) of Section 902 of
1

2 this title, multiplied by the number of years of service with the
2

3 Department of Corrections and any years in excess of twenty (20)
3

4 years with the Department or years credited to the member in
4

5 accordance with the provisions of Section 913 of this title, shall
5

6 be calculated for retirement purposes at two percent (2%) of the
6

7 final average compensation of the member multiplied by the number of
7

8 years of such service. For purposes of this paragraph, "final
8

9 average compensation" shall be determined by computing the average
9

10 annual salary, in the manner prescribed by paragraph (18) of Section
10

11 902 of this title, for the highest three (3) years of the last ten
11

12 (10) years of participating service immediately preceding retirement
12

13 or termination of employment for all years of service performed by
13

14 such member with the Department. "Final average compensation" Final
14

15 average compensation shall be determined by computing the average
15

16 annual salary for the highest five (5) of the last ten (10) years of
16

17 participating service immediately preceding retirement or
17

18 termination of employment, with respect to members whose first
18

19 participating service occurs on or after July 1, 2013.
19

20 (8) Any person who contributed to the System as a correctional

21 officer, a probation and parole officer or a fugitive apprehension
21

22 agent as provided in paragraph (b) or (c) of subsection (1) of
22

23 Section 919.1 of this title, and who retires under normal retirement
23

24 or early retirement on or after January 1, 2004, under paragraph
24

Req. No. 3559 Page 609
1 (24) of Section 902 of this title, and any public safety officer
1

2 described by paragraph (37) of Section 902 of this title hired on or
2

3 after the effective date of this act July 1, 2016, by the Grand
3

4 River Dam Authority and who retires on or after the effective date
4

5 of this act July 1, 2016, shall have retirement benefits for each
5

6 year of full-time-equivalent participating service as a correctional
6

7 officer, a probation and parole officer or a fugitive apprehension
7

8 agent, or Grand River Dam public safety officer computed on two and
8

9 one-half percent (2 1/2%) of the final average compensation based
9

10 upon those years as a correctional officer, a probation and parole
10

11 officer, a fugitive apprehension agent or a Grand River Dam public
11

12 safety officer. For purposes of this paragraph, "final average
12

13 compensation" shall be determined by computing the average annual
13

14 salary, in the manner prescribed by paragraph (18) of Section 902 of
14

15 this title, for the highest three (3) years of the last ten (10)
15

16 years of participating service immediately preceding retirement or
16

17 termination of employment for all years of service performed by such
17

18 member, both for years of service performed as a correctional
18

19 officer, probation and parole officer or fugitive apprehension
19

20 agent, or years of service performed as a Grand River Dam public
20

21 safety officer, not in excess of twenty (20) years, and for years of
21

22 service performed in excess of twenty (20) years, whether as a
22

23 correctional officer, probation and parole officer, fugitive
23

24 apprehension agent, Grand River Dam public safety officer, or other
24

Req. No. 3559 Page 610
1 position unless the computation of benefits would result in a lower
1

2 retirement benefit amount than if final average compensation were to
2

3 be computed as otherwise provided by this paragraph. "Final average
3

4 compensation" Final average compensation shall be determined by
4

5 computing the average annual salary for the highest five (5) of the
5

6 last ten (10) years of participating service immediately preceding
6

7 retirement or termination of employment, with respect to members
7

8 whose first participating service occurs on or after July 1, 2013,
8

9 or with respect to Grand River Dam public safety officers whose
9

10 first participating service occurs on or after the effective date of
10

11 this act July 1, 2016.
11

12 (9) Any member who is:

13 a. initially on or after July 1, 2002, employed as a

14 firefighter for the Oklahoma Military Department of

15 the State of Oklahoma and who retires on or after the

16 member's normal retirement date shall be entitled to

17 receive an annual retirement benefit equal to two and

18 one-half percent (2 1/2%) of the final average

19 compensation of the member multiplied by the number of

20 years of service in such service,

21 b. (1) a firefighter who performs firefighting services

22 for the Oklahoma Military Department of the State

23 of Oklahoma prior to July 1, 2002, and who makes

24 an election in writing on a form prescribed for

Req. No. 3559 Page 611
1 this purpose by the System not later than

2 December 31, 2002, shall be entitled to receive a

3 retirement benefit based upon two and one-half

4 percent (2 1/2%) of the final average

5 compensation of the member multiplied by the

6 number of years of service as a firefighter with

7 the Oklahoma Military Department on or after July

8 1, 2002. The election authorized by this

9 subdivision shall be irrevocable once the

10 election is filed with the System,

11 (2) a firefighter who performs firefighting services

12 for the Oklahoma Military Department of the State

13 of Oklahoma prior to July 1, 2002, and who makes

14 the election in division (1) of this subparagraph

15 may also make an election in writing on a form

16 prescribed for this purpose by the System not

17 later than December 31, 2002, to receive a

18 retirement benefit based upon two and one-half

19 percent (2 1/2%) of the final average

20 compensation of the member multiplied by the

21 number of years of service as a firefighter with

22 the Oklahoma Military Department of the State of

23 Oklahoma prior to July 1, 2002. The election

24 authorized by this subdivision shall be

Req. No. 3559 Page 612
1 irrevocable once the election is filed with the

2 System. Retirement benefits shall be calculated

3 based upon the two and one-half percent (2 1/2%)

4 multiplier upon payment being made pursuant to

5 Section 913.5 of this title.

6 (10) Any person who contributes to the System as a deputy

7 sheriff or county jailer as provided in paragraph (f) of subsection
7

8 (1) of Section 919.1 of this title, and who was:
8

9 a. employed by a participating employer in the System

10 for the first time as a deputy sheriff or jailer on

11 or after November 1, 2020, and who retires under

12 normal retirement or early retirement under division

13 (v) of subparagraph (d) of paragraph (24) of Section

14 902 of this title, shall have retirement benefits for

15 each year of full-time-equivalent participating

16 service as a deputy sheriff or county jailer computed

17 on two and one-half percent (2 1/2%) of the final

18 average compensation based upon those years as a

19 deputy sheriff or county jailer, and any years in

20 excess of twenty (20) years as a deputy sheriff or

21 county jailer, or years credited to the member in

22 accordance with the provisions of Section 913 of this

23 title, shall be calculated for retirement purposes at

24 two percent (2%) of the final average compensation of

Req. No. 3559 Page 613
1 the member multiplied by the number of years of such

2 service, or

3 b. (1) employed by a participating employer in the

4 System for the first time as a deputy sheriff or

5 county jailer before November 1, 2020, and who

6 retires under the normal retirement or early

7 retirement under division (vi) of subparagraph

8 (d) of paragraph (24) of Section 902 of this

9 title, shall be entitled to receive a retirement

10 benefit based on two and one-half percent (2

11 1/2%) of the final average compensation of the

12 member multiplied based on the number of years of

13 service as a deputy sheriff or county jailer with

14 any county participating in the System on or

15 after November 1, 2024,

16 (2) employed by a participating employer in the

17 System for the first time as a deputy sheriff or

18 county jailer before November 1, 2020, and who

19 retires under the normal retirement or early

20 retirement under division (vi) of subparagraph

21 (d) of paragraph (24) of Section 902 of this

22 title, and who makes an election in writing not

23 later than July 1, 2026, on a form prescribed for

24 this purpose by the System, shall be entitled to

Req. No. 3559 Page 614
1 a retirement benefit based upon two and one-half
1 percent (2 1/2%) of the final average
2 compensation of the member multiplied by the
2 number of years of service prior to November 1,
3 2024, as a deputy sheriff or county jailer
3 employed by any county that is a participating
4 employer in the System. The election authorized
4 by this subparagraph shall be irrevocable once
5 the election is filed with the System.
5 Retirement benefits shall be calculated based
6 upon the two and one-half percent (2 1/2%)
6 multiplier upon payment being made pursuant to
7 Section 913.5 of this title. Any person
7 otherwise qualifying under this subparagraph, but
8 who is not employed as a deputy sheriff or county
8 jailer on November 1, 2024, and who is reemployed
9 as a deputy sheriff or county jailer with a
9 county that is a participating employer in the
10 System after November 1, 2024, shall have six (6)
10 months from the initial date of reemployment to
11 make the election authorized in this
11 subparagraph. The actuarial purchase of any
12 service credit accrued prior to November 1, 2024,
12 as a deputy sheriff or county jailer employed by
13
13 Page 615
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24

Req. No. 3559
1 a county that is a participating employer in the

2 System as set forth in this subparagraph shall

3 cancel such corresponding service and shall not

4 be used to compute the retirement benefit under

5 any other provision except as provided in this

6 subparagraph. In no event shall the service

7 purchased under this subparagraph cause the

8 member to receive a retirement benefit for the

9 same service in any other plan. Any purchased

10 service under this subparagraph shall comply with

11 the applicable provisions of the Internal Revenue

12 Code and rules adopted by the Board of Trustees.

13 c. For purposes of paragraph (10), "final average

14 compensation" shall be determined by computing the

15 average annual salary, in the manner prescribed by

16 paragraph (18) of Section 902 of this title, both for

17 years of service performed as a deputy sheriff or

18 county jailer not in excess of twenty (20) years, and

19 for years of service performed in excess of twenty

20 (20) years, whether as a deputy sheriff or county

21 jailer.

22 (11) Any person who contributes to the System as an emergency

23 medical service personnel as provided in paragraph (h) of subsection
23

24 (1) of Section 919.1 of this title, and who retires under normal
24

Req. No. 3559 Page 616
1 retirement or early retirement under division (vii) of subparagraph
1

2 (d) of paragraph (24) of Section 902 of this title, shall have
2

3 retirement benefits for each year of full-time-equivalent
3

4 participating service as an emergency medical service personnel
4

5 computed on two and one-half percent (2 1/2%) of the final average
5

6 compensation based upon those years as an emergency medical service
6

7 personnel. Any years of full-time-equivalent participating service
7

8 in excess of twenty (20) years as an emergency medical personnel, or
8

9 years credited to the member in accordance with the provisions of
9

10 Section 913 of this title, shall be calculated for retirement
10

11 purposes at two percent (2%) of the final average compensation of
11

12 the member multiplied by the number of years of such service. For
12

13 the purposes of this paragraph, "final average compensation" shall
13

14 be determined by computing the average annual salary, in the manner
14

15 prescribed by paragraph 18 of Section 902 of this title, both for
15

16 years of service performed as an emergency medical personnel not in
16

17 excess of twenty (20) years, and for years of service performed in
17

18 excess of twenty (20) years, as an emergency medical service
18

19 personnel.
19

20 (12) Upon death of a retiree, there shall be paid to his or her

21 beneficiary an amount equal to the excess, if any, of his or her
21

22 accumulated contributions over the sum of all retirement benefit
22

23 payments made.
23

Req. No. 3559 Page 617
1 (12) (13) Such annual retirement benefits shall be paid in

2 equal monthly installments, except that the Board may provide for
2

3 the payment of retirement benefits which total less than Two Hundred
3

4 Forty Dollars ($240.00) a year on other than a monthly basis.
4

5 (13) (14) Pursuant to the rules established by the Board, a

6 retiree receiving monthly benefits from the System may authorize
6

7 warrant deductions for any products currently offered to active
7

8 state employees through the Employees Benefits Council Oklahoma
8

9 Employee Insurance and Benefits Board, provided that product is
9

10 offered to state retirees as a group and has a minimum participation
10

11 of five hundred state retirees. The System has no responsibility
11

12 for the marketing, enrolling or administration of such products, but
12

13 shall retain a processing fee of two percent (2%) of the gross
13

14 deductions for the products. Retirement benefit deductions shall be
14

15 made for membership dues for any statewide association for which
15

16 payroll deductions are authorized pursuant to subsection B of
16

17 Section 34.70 of Title 62 of the Oklahoma Statutes for retired
17

18 members of any state-supported retirement system, upon proper
18

19 authorization given by the member to the board from which the member
19

20 or beneficiary is currently receiving retirement benefits.
20

21 B. A member shall be considered disabled if such member

22 qualifies for the payment of Social Security disability benefits, or
22

23 the payment of benefits pursuant to the Railroad Retirement Act of
23

24 1974, Section 231 et seq. of Title 45 of the United States Code, and
24

Req. No. 3559 Page 618
1 shall be eligible for benefits hereunder upon proof of such
1

2 disability, provided such member is an active regularly scheduled
2

3 employee with a participating employer at the time of injury or
3

4 inception of illness or disease resulting in subsequent
4

5 certification of eligibility for Social Security disability benefits
5

6 by reason of such injury, illness or disease, providing such
6

7 disability is certified by the Social Security Administration within
7

8 one (1) year after the last date physically on the job and after
8

9 completion of at least eight (8) years of participating service or
9

10 combined prior and participating service or resulting in subsequent
10

11 certification of eligibility of disability by the Railroad
11

12 Retirement Board providing such certification is made by the
12

13 Railroad Retirement Board within one (1) year after the last date
13

14 physically on the job and after completion of at least eight (8)
14

15 years of participating service or combined prior and participating
15

16 service. The member shall submit to the Retirement System the
16

17 Social Security Award Notice or the Railroad Retirement Award Notice
17

18 certifying the date of entitlement for disability benefits, as
18

19 issued by the Social Security Administration, Department of Health
19

20 and Human Services or the Railroad Retirement Board. Disability
20

21 benefits shall become effective on the date of entitlement as
21

22 established by the Social Security Administration or the Railroad
22

23 Retirement Board, but not before the first day of the month
23

24 following removal from the payroll, whichever is later, and final
24

Req. No. 3559 Page 619
1 approval by the Retirement System. Benefits shall be based upon
1

2 length of service and compensation as of the date of disability,
2

3 without actuarial reduction because of commencement prior to the
3

4 normal retirement date. The only optional form of benefit payment
4

5 available for disability benefits is Option A as provided for in
5

6 Section 918 of this title. Option A must be elected in accordance
6

7 with the provisions of Section 918 of this title. Benefit payments
7

8 shall cease upon the member's recovery from disability prior to the
8

9 normal retirement date. Future benefits, if any, shall be paid
9

10 based upon length of service and compensation as of the date of
10

11 disability. In the event that disability ceases and the member
11

12 returns to employment within the System credited service to the date
12

13 of disability shall be restored, and future benefits shall be
13

14 determined accordingly.
14

15 C. A member who incurred a disability pursuant to subsection B

16 of this section on or after July 1, 1999, and who has retired from
16

17 the System with an early retirement benefit pending certification
17

18 from the Social Security Administration or the Railroad Retirement
18

19 Board shall receive a retirement benefit not less than the
19

20 disability retirement benefit provided by subsection B of this
20

21 section once the System receives a Social Security Award Notice or a
21

22 Railroad Retirement Award Notice pursuant to subsection B of this
22

23 section and a completed Application for Disability Benefits
23

24 application for disability benefits. In addition, such member shall
24

Req. No. 3559 Page 620
1 receive the difference, if any, between the early retirement benefit
1

2 and the disability benefit from the date the Social Security
2

3 Administration or the Railroad Retirement Board establishes
3

4 disability entitlement.
4

5 D. Any actively participating member of the System on or after

6 July 1, 1998, except for those employees provided in subparagraph
6

7 (e) of paragraph (14) of Section 902 of this title, whose employment
7

8 is less than full-time, shall have his or her final average
8

9 compensation calculated on an annualized basis using his or her
9

10 hourly wage subject to the maximum compensation limits; provided,
10

11 however, any such member whose first participating service occurred
11

12 before July 1, 2013, and who has at least three (3) years of full-
12

13 time employment during the last ten (10) years immediately preceding
13

14 termination or retirement shall not be eligible for the
14

15 annualization provisions contained herein; and provided further, any
15

16 such member whose first participating service occurred on or after
16

17 July 1, 2013, and who has at least five (5) years of full-time
17

18 employment during the last ten (10) years immediately preceding
18

19 termination or retirement shall not be eligible for the
19

20 annualization provisions contained herein. The Board of Trustees
20

21 shall promulgate such administrative rules as are necessary to
21

22 implement the provisions of this subsection.
22

Req. No. 3559 Page 621
1 SECTION 146. REPEALER 74 O.S. 2021, Section 915, as

2 amended by Section 2, Chapter 139, O.S.L. 2024 (74 O.S. Supp. 2025,
2

3 Section 915), is hereby repealed.
3

4 SECTION 147. AMENDATORY 74 O.S. 2021, Section 916.3, as

5 amended by Section 3, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2025,
5

6 Section 916.3), is amended to read as follows:
6

7 Section 916.3. A. Notwithstanding the provisions of Sections

8 901 through 932 of this title, a monthly pension, as provided in
8

9 subsection B of this section, shall be paid on behalf of any member
9

10 who is a:
10

11 1. Correctional officer or probation and parole officer of the

12 Department of Corrections and who is killed or mortally wounded on
12

13 or after January 1, 2000, during the performance of the member's
13

14 duties for the Department or any employee of the Department of
14

15 Corrections who is killed or mortally wounded after June 30, 2004,
15

16 during the performance of the member's duties for the Department;
16

17 2. Deputy sheriff or county jailer first hired on or after

18 November 1, 2020, by any county that is a participating member in
18

19 the System, and who is killed or mortally wounded during the
19

20 performance of the member's duties as a deputy sheriff or jailer;
20

21 and
21

22 3. Deputy sheriff or county jailer first hired before November

23 1, 2020, by any county that is a participating employer in the
23

24 System, and who is killed or mortally wounded during the performance
24

Req. No. 3559 Page 622
1 of the member's duties for the participating county on or after
1

2 November 1, 2024; and
2

3 4. The monthly pension described in this section shall be paid

4 on behalf of a licensed emergency medical personnel hired by any
4

5 participating employer for the first time as a licensed emergency
5

6 medical personnel on or after November 1, 2024, and who is killed or
6

7 mortally wounded during the performance of the member's duties as an
7

8 emergency medical personnel.
8

9 B. The monthly benefit shall be equal to:

10 1. Two and one-half percent (2 1/2%);

11 2. Multiplied by twenty (20) years of service, regardless of

12 the actual number of years of credited service performed by the
12

13 member prior to death, if the member had performed less than twenty
13

14 (20) years of credited service, or the actual number of years of
14

15 credited service of the member if greater than twenty (20) years;
15

16 3. Multiplied by the member's final average compensation; and

17 4. Divided by 12.

18 C. The pension provided for in subsection A of this section

19 shall be paid:
19

20 1. Except as provided in subsection D of this section, to the

21 surviving spouse for life; or
21

22 2. If there is no surviving spouse or upon the death of the

23 surviving spouse:
23

Req. No. 3559 Page 623
1 a. to the surviving child or children of said member or

2 legal guardian of such child or children for such time

3 as such child or children are under the age of

4 eighteen (18) years, or

5 b. to the surviving child or children between the age of

6 eighteen (18) and twenty-two (22) years if the child

7 is enrolled full time in and is regularly attending a

8 public or private school or any institution of higher

9 education.

10 D. No surviving spouse shall receive benefits from this

11 section, Section 49-113 of Title 11 of the Oklahoma Statutes,
11

12 Section 50-117 of Title 11 of the Oklahoma Statutes, or Section 2-
12

13 306 of Title 47 of the Oklahoma Statutes as the surviving spouse of
13

14 more than one member of the Oklahoma Firefighters Pension and
14

15 Retirement System, the Oklahoma Police Pension and Retirement
15

16 System, the Oklahoma Law Enforcement Retirement System, or the
16

17 Oklahoma Public Employees Retirement System. The surviving spouse
17

18 of more than one member shall elect which member's benefits he or
18

19 she will receive.
19

20 E. In addition to the pension above provided for, if said

21 member leaves one or more children under the age of eighteen (18)
21

22 years or under the age of twenty-two (22) years if the child is
22

23 enrolled full-time in and is regularly attending a public or private
23

24 school or any institution of higher education, Four Hundred Dollars
24

Req. No. 3559 Page 624
1 ($400.00) a month shall be paid to the surviving spouse or to the
1

2 person having the care and custody of such children if there is no
2

3 surviving spouse or if the surviving spouse dies and until each
3

4 child reaches the age of eighteen (18) years or reaches the age of
4

5 twenty-two (22) years if the child is enrolled full-time in and is
5

6 regularly attending a public or private school or any institution of
6

7 higher education.
7

8 F. The pension benefit provided in this section shall be made

9 prospectively only from the effective date of this act July 1, 2000.
9

10 The benefits shall be payable beginning the later of the first day
10

11 of the month following the date that such employee was killed or
11

12 dies from a mortal wound, as provided in this section, or the
12

13 effective date of this act July 1, 2000.
13

14 G. The Board of Trustees of the Oklahoma Public Employees

15 Retirement System shall promulgate such rules as are necessary to
15

16 implement the provisions of this section.
16

17 SECTION 148. REPEALER 74 O.S. 2021, Section 916.3, as

18 amended by Section 3, Chapter 139, O.S.L. 2024 (74 O.S. Supp. 2025,
18

19 Section 916.3), is hereby repealed.
19

20 SECTION 149. AMENDATORY 74 O.S. 2021, Section 919.1, as

21 amended by Section 4, Chapter 139, O.S.L. 2024 (74 O.S. Supp. 2025,
21

22 Section 919.1), is amended to read as follows:
22

23 Section 919.1. (1) Employee contributions to the Oklahoma

24 Public Employees Retirement System shall be:
24

Req. No. 3559 Page 625
1 (a) for employees except as otherwise provided in

2 paragraphs (b), (c), (d), (e), (f), (g), and (h) of

3 this subsection: beginning July 1, 2006, and

4 thereafter, three and one-half percent (3.5%) of

5 allowable annual compensation,

6 (b) for correctional officers and probation and parole

7 officers employed by the Department of Corrections:

8 beginning July 1, 1998, and thereafter, and for

9 correctional officers or probation and parole officers

10 who are in such position on June 30, 2004, or who are

11 hired after June 30, 2004, and who receive a promotion

12 or change in job classification after June 30, 2004,

13 to another position in the Department of Corrections,

14 so long as such officers have at least five (5) years

15 of service as a correctional officer or probation and

16 parole officer, eight percent (8%) of allowable

17 compensation as provided in paragraph (9) of Section

18 902 of this title,

19 (c) for fugitive apprehension agents who are employed with

20 the Department of Corrections on or after July 1,

21 2002, and for fugitive apprehension agents who are in

22 such position on June 30, 2004, or who are hired after

23 June 30, 2004, and who receive a promotion or change

24 in job classification after June 30, 2004, to another

Req. No. 3559 Page 626
1 position in the Department of Corrections, so long as

2 such agents have at least five (5) years of service as

3 a fugitive apprehension agent, eight percent (8%) of

4 allowable compensation as provided in paragraph (9) of

5 Section 902 of this title,

6 (d) for firefighters of the Military Department of the

7 State of Oklahoma first employed beginning July 1,

8 2002, and thereafter, and such firefighters who

9 performed service prior to July 1, 2002, for the

10 Military Department of the State of Oklahoma and who

11 make the election authorized by division (1) of

12 subparagraph b of paragraph (9) of subsection A of

13 Section 915 of this title who perform service on or

14 after July 1, 2002, in such capacity, eight percent

15 (8%) of allowable compensation as provided in

16 paragraph (9) of Section 902 of this title,

17 (e) for all public safety officers of the Grand River Dam

18 Authority as defined by paragraph (37) of Section 902

19 of this title, eight percent (8%) of allowable

20 compensation as provided in paragraph (9) of Section

21 902 of this title,

22 (f) for deputy sheriffs and county jailers employed by any

23 county that is a participating employer in the System

24 for the first time as a deputy sheriff or jailer on or

Req. No. 3559 Page 627
1 after November 1, 2020, or beginning November 1, 2024,

2 those deputy sheriffs and county jailers employed by

3 any county that is a participating employer in the

4 System for the first time as a deputy sheriff or

5 county jailer before November 1, 2020, eight percent

6 (8%) of allowable compensation as provided in

7 paragraph (9) of Section 902 of this title,

8 (g) for licensed emergency medical personnel employed by

9 any participating employer as a licensed emergency

10 medical personnel for the first time on or after the

11 effective date of this act, eight percent (8%) of

12 allowable compensation as provided in paragraph (9) of

13 Section 902 of this title, and

14 (h) for all employees except those who make contributions

15 pursuant to paragraphs (b), (c), (d), (e), (f), and

16 (g) of this subsection who make an irrevocable written

17 election pursuant to paragraph (2) of subsection A of

18 Section 915 of this title: six and forty-one one-

19 hundredths percent (6.41%) of allowable annual

20 compensation.

21 The contributions required by paragraphs (b), (c), (e), (f),

22 (g), and (h) of this subsection shall be made by a member for not
22

23 more than twenty (20) years and thereafter shall be as provided in
23

24 paragraph (a) of this subsection.
24

Req. No. 3559 Page 628
1 (2) Contributions shall be deducted by each state agency by the

2 participating employer for such benefits as the Board is authorized
2

3 to administer as provided for by law. Employee and employer
3

4 contributions shall be remitted monthly, or as the Board may
4

5 otherwise provide, to the Executive Director for deposit in the
5

6 Oklahoma Public Employees Retirement Fund.
6

7 (3) Each participating employer shall pick up under the

8 provisions of Section 414(h)(2) of the Internal Revenue Code of 1986
8

9 and pay the contribution which the member is required by law to make
9

10 to the System for all compensation earned after December 31, 1988.
10

11 Although the contributions so picked up are designated as member
11

12 contributions, such contributions shall be treated as contributions
12

13 being paid by the participating employer in lieu of contributions by
13

14 the member in determining tax treatment under the Internal Revenue
14

15 Code of 1986 and such picked up contributions shall not be
15

16 includable in the gross income of the member until such amounts are
16

17 distributed or made available to the member or the beneficiary of
17

18 the member. The member, by the terms of this System, shall not have
18

19 any option to choose to receive the contributions so picked up
19

20 directly and the picked up contributions must be paid by the
20

21 participating employer to the System.
21

22 Member contributions which are picked up shall be treated in the

23 same manner and to the same extent as member contributions made
23

24 prior to the date on which member contributions were picked up by
24

Req. No. 3559 Page 629
1 the participating employer. Member contributions so picked up shall
1

2 be included in gross salary for purposes of determining benefits and
2

3 contributions under the System.
3

4 The participating employer shall pay the member contributions

5 from the same source of funds used in paying salary to the member,
5

6 by effecting an equal cash reduction in gross salary of the member.
6

7 (4) By September 1, 1989, the System shall refund the

8 accumulated employee contributions of any member who elects to
8

9 retain the member's membership in the Teachers' Retirement System of
9

10 Oklahoma, in accordance with Section 17-104 of Title 70 of the
10

11 Oklahoma Statutes, to such member. Upon the refund of the
11

12 accumulated employee contributions referred to in this subsection,
12

13 all benefits and rights accrued to such member are terminated.
13

14 SECTION 150. REPEALER 74 O.S. 2021, Section 919.1, as

15 amended by Section 4, Chapter 280, O.S.L. 2024 (74 O.S. Supp. 2025,
15

16 Section 919.1), is hereby repealed.
16

17 SECTION 151. AMENDATORY 74 O.S. 2021, Section 1321, as

18 last amended by Section 29, Chapter 379, O.S.L. 2025 (74 O.S. Supp.
18

19 2025, Section 1321), is amended to read as follows:
19

20 Section 1321. A. The Oklahoma Health Care Authority shall have

21 the authority to determine all rates and life, dental and health
21

22 benefits for state sponsored plans. All rates shall be compiled in
22

23 a comprehensive Schedule of Benefits. The Schedule of Benefits
23

24 shall be available for inspection during regular business hours at
24

Req. No. 3559 Page 630
1 the Oklahoma Health Care Authority. The Authority shall have the
1

2 authority to annually adjust the rates and benefits based on claim
2

3 experience.
3

4 B. The premiums for such insurance plans offered for the next

5 plan year shall be established as follows:
5

6 1. For active employees and their dependents, the Authority's

7 premium determination shall be made no later than the bid submission
7

8 date for health maintenance organizations set by the Oklahoma
8

9 Employees Insurance and Benefits Board, which shall be set in August
9

10 no later than the third Friday of that month; and
10

11 2. For all other covered members and dependents, the

12 Authority's and the health maintenance organizations' premium
12

13 determinations shall be no later than the fourth Friday of
13

14 September.
14

15 C. The CEO of the Authority shall review for approval all rates

16 and life, dental, and health benefits for the state sponsored plans
16

17 recommended by the Oklahoma Employees Insurance and Benefits Board.
17

18 If approved by the CEO of the Authority, those rates and benefits
18

19 along with the final health maintenance organizations' rates and
19

20 benefits shall be sent to the Director of the Office of Management
20

21 and Enterprise Services for final approval.
21

22 D. The Office may approve a mid-year adjustment requested by

23 the Authority provided the need for an adjustment is substantiated
23

24 by an actuarial determination or more current experience rating.
24

Req. No. 3559 Page 631
1 The only publication or notice requirements that shall apply to the
1

2 Schedule of Benefits shall be those requirements provided in the
2

3 Oklahoma Open Meeting Act and within this section. It is the intent
3

4 of the Legislature that the benefits provided not include cosmetic
4

5 dental procedures except for certain orthodontic procedures as
5

6 adopted by the Chief Executive Officer of the Authority.
6

7 SECTION 152. REPEALER 74 O.S. 2021, Section 1321, as

8 amended by Section 5, Chapter 123, O.S.L. 2024 (74 O.S. Supp. 2025,
8

9 Section 1321), is hereby repealed.
9

10 SECTION 153. AMENDATORY 75 O.S. 2021, Section 250.3, as

11 last amended by Section 5, Chapter 258, O.S.L. 2025 (75 O.S. Supp.
11

12 2025, Section 250.3), is amended to read as follows:
12

13 Section 250.3. As used in the Administrative Procedures Act:

14 1. "Administrative head" means an official or agency body

15 responsible pursuant to law for issuing final agency orders;
15

16 2. "Adopted" means a proposed emergency rule which has been

17 approved by the agency but has not been approved or disapproved by
17

18 the Governor as an emergency rule as provided by Section 253 of this
18

19 title, or a proposed permanent rule which has been approved by the
19

20 agency and not disapproved by the Governor pursuant to paragraph 6
20

21 of subsection A of Section 303 of this title, but has not been
21

22 finally approved or disapproved by the Legislature or the Governor;
22

23 3. "Agency" includes, but is not limited to, any

24 constitutionally or statutorily created state agency, board, bureau,
24

Req. No. 3559 Page 632
1 commission, office, authority, institution, public trust in which
1

2 the state is a beneficiary, interstate commission, or any
2

3 instrumentality thereof, except:
3

4 a. the Legislature or any branch, committee, or officer

5 thereof, and

6 b. the courts;

7 4. "Emergency rule" means a rule that is made pursuant to

8 Section 253 of this title;
8

9 5. "Final rule" or "finally adopted rule" means a rule other

10 than an emergency rule, which has not been published pursuant to
10

11 Section 255 of this title but is otherwise in compliance with the
11

12 requirements of the Administrative Procedures Act, and is:
12

13 a. approved by the Legislature pursuant to Section 308.3

14 of this title, provided that any such joint resolution

15 becomes law in accordance with Section 11 of Article

16 VI of the Oklahoma Constitution,

17 b. approved by the Governor pursuant to subsection C of

18 Section 308.3 of this title,

19 c. approved by a joint resolution pursuant to subsection

20 B of Section 308 of this title, provided that any such

21 resolution becomes law in accordance with Section 11

22 of Article VI of the Oklahoma Constitution, or

23 d. b. disapproved by a joint resolution pursuant to

24 subsection B of Section 308 of this title or Section

Req. No. 3559 Page 633
1 308.3 of this title, which has been vetoed by the

2 Governor in accordance with Section 11 of Article VI

3 of the Oklahoma Constitution and the veto has not been

4 overridden;

5 6. "Final agency order" means an order that includes findings

6 of fact and conclusions of law pursuant to Section 312 of this
6

7 title, is dispositive of an individual proceeding unless there is a
7

8 request for rehearing, reopening, or reconsideration pursuant to
8

9 Section 317 of this title, and which is subject to judicial review;
9

10 7. "Hearing examiner" means a person meeting the qualifications

11 specified by Article II of the Administrative Procedures Act and who
11

12 has been duly appointed by an agency to hold hearings and, as
12

13 required, render orders or proposed orders;
13

14 8. "Implementation and compliance costs" means direct costs

15 that are readily ascertainable based upon standard business
15

16 practices, including, but not limited to, fees, the cost to obtain a
16

17 license or registration, the cost of equipment required to be
17

18 installed or used, additional operating costs incurred, the cost of
18

19 monitoring and reporting, and any other costs to comply with the
19

20 requirements of the proposed rule;
20

21 9. "Individual proceeding" means the formal process employed by

22 an agency having jurisdiction by law to resolve issues of law or
22

23 fact between parties and which results in the exercise of discretion
23

24 of a judicial nature;
24

Req. No. 3559 Page 634
1 10. "License" includes the whole or part of any agency permit,

2 certificate, approval, registration, charter, or similar form of
2

3 permission required by law;
3

4 11. "Major rule" means any administrative rule, whether

5 emergency or permanent in nature, that will result in or is likely
5

6 to result in One Million Dollars ($1,000,000.00) or more over the
6

7 initial five-year period in implementation and compliance costs that
7

8 are reasonably expected to be incurred by or passed along to
8

9 businesses, state or local government units, and individuals as a
9

10 result of the proposed rule following the promulgation of such rule;
10

11 12. "Nonmajor rule" means any rule that is not a major rule;

12 13. "Office" means the Office of the Secretary of State;

13 14. "Order" means all or part of a formal or official decision

14 made by an agency including, but not limited to, final agency
14

15 orders;
15

16 15. "Party" means a person or agency named and participating,

17 or properly seeking and entitled by law to participate, in an
17

18 individual proceeding;
18

19 16. "Permanent rule" means a rule that is made pursuant to

20 Section 303 of this title;
20

21 17. "Person" means any individual, partnership, corporation,

22 association, governmental subdivision, or public or private
22

23 organization of any character other than an agency;
23

Req. No. 3559 Page 635
1 18. "Political subdivision" means a county, city, incorporated

2 town, or school district within this state;
2

3 19. "Promulgated" means a finally adopted rule which has been

4 filed and published in accordance with the provisions of the
4

5 Administrative Procedures Act, or an emergency rule or preemptive
5

6 rule which has been approved by the Governor;
6

7 20. "Rule" means any agency statement or group of related

8 statements of general applicability and future effect that
8

9 implements, interprets, or prescribes law or policy, or describes
9

10 the procedure or practice requirements of the agency. The term rule
10

11 includes the amendment or revocation of an effective rule but does
11

12 not include:
12

13 a. the issuance, renewal, denial, suspension or

14 revocation or other sanction of an individual specific

15 license,

16 b. the approval, disapproval, or prescription of rates.

17 For purposes of this subparagraph, the term "rates"

18 shall not include fees or charges fixed by an agency

19 for services provided by that agency including, but

20 not limited to, fees charged for licensing,

21 permitting, inspections, or publications,

22 c. statements and memoranda concerning only the internal

23 management of an agency and not affecting private

24 rights or procedures available to the public,

Req. No. 3559 Page 636
1 d. declaratory rulings issued pursuant to Section 307 of

2 this title,

3 e. orders by an agency, or

4 f. press releases or "agency news releases", provided

5 such releases are not for the purpose of interpreting,

6 implementing, or prescribing law or agency policy;

7 21. "Rulemaking" means the process employed by an agency for

8 the formulation of a rule;
8

9 22. "Secretary" means the Secretary of State; and

10 23. "Small business" means a for-profit enterprise consisting

11 of fifty or fewer full-time or part-time employees; and
11

12 24. "Technical legal defect" means an error that would

13 otherwise invalidate an action by a court of law.
13

14 SECTION 154. REPEALER 75 O.S. 2021, Section 250.3, as

15 last amended by Section 1, Chapter 420, O.S.L. 2025 (75 O.S. Supp.
15

16 2025, Section 250.3), is hereby repealed.
16

17 SECTION 155. AMENDATORY 75 O.S. 2021, Section 303, as

18 amended by Section 7, Chapter 258, O.S.L. 2025 (75 O.S. Supp. 2025,
18

19 Section 303), is amended to read as follows:
19

20 Section 303. A. Prior to the adoption of any rule or amendment

21 or revocation of a rule, the agency shall:
21

22 1. Cause notice of any intended action to be published in "The

23 Oklahoma Register" pursuant to subsection B of this section;
23

Req. No. 3559 Page 637
1 2. For at least thirty (30) days after publication of the

2 notice of the intended rulemaking action, afford a comment period
2

3 for all interested persons to submit data, views, or arguments,
3

4 orally or in writing. The agency shall consider fully all written
4

5 and oral submissions respecting the proposed rule;
5

6 3. Hold a hearing, if required, as provided by subsection C of

7 this section;
7

8 4. Consider the effect its intended action may have on the

9 various types of business and governmental entities. Except where
9

10 such modification or variance is prohibited by statute or
10

11 constitutional constraints, if an agency finds that its actions may
11

12 adversely affect any such entity, the agency may modify its actions
12

13 to exclude that type of entity, or may "tier" its actions to allow
13

14 rules, penalties, fines, or reporting procedures and forms to vary
14

15 according to the size of a business or governmental entity or its
15

16 ability to comply or both. For business entities, the agency shall
16

17 include a description of the probable quantitative and qualitative
17

18 impact of the proposed rule, economic or otherwise, and use
18

19 quantifiable data to the extent possible, taking into account both
19

20 short-term and long-term consequences;
20

21 5. Consider the effect its intended action may have on the

22 various types of consumer groups. If an agency finds that its
22

23 actions may adversely affect such groups, the agency may modify its
23

24 actions to exclude that type of activity; and
24

Req. No. 3559 Page 638
1 6. When an agency provides notice pursuant to paragraph 1 of

2 this subsection, the agency shall provide one electronic copy of the
2

3 complete text of the proposed rule, amendment or revocation and a
3

4 copy of the notice to the Governor and to the appropriate cabinet
4

5 secretary. No agency may shall adopt any proposed rule, amendment
5

6 or revocation if unless, within thirty (30) days from providing
6

7 notice to the Governor and the appropriate cabinet secretary, the
7

8 agency receives express written disapproval approval from the
8

9 Governor or the cabinet secretary. If the Governor or the cabinet
9

10 secretary disapproves a rule, the affected agency shall be notified
10

11 in writing of the reasons for disapproval. If, after thirty (30)
11

12 days of providing the notice to the Governor and the cabinet
12

13 secretary, the agency has not received an express written
13

14 disapproval approval, the agency may shall not proceed with the
14

15 rulemaking process.
15

16 B. The notice required by paragraph 1 of subsection A of this

17 section shall include, but not be limited to:
17

18 1. In simple language, a brief summary of the rule;

19 2. The proposed action being taken;

20 3. The circumstances which created the need for the rule;

21 4. The specific legal authority, including statutory citations,

22 authorizing the proposed rule;
22

23 5. The intended effect of the rule;

Req. No. 3559 Page 639
1 6. If the agency determines that the rule affects business

2 entities, a request that such entities provide the agency, within
2

3 the comment period, in dollar amounts if possible, the increase in
3

4 the level of direct costs such as fees, and indirect costs such as
4

5 reporting, recordkeeping, equipment, construction, labor,
5

6 professional services, revenue loss, or other costs expected to be
6

7 incurred by a particular entity due to compliance with the proposed
7

8 rule;
8

9 7. The time when, the place where, and the manner in which

10 interested persons may present their views thereon pursuant to
10

11 paragraph 3 of subsection A of this section;
11

12 8. Whether or not the agency intends to issue a rule impact

13 statement according to subsection D of this section and where copies
13

14 of such impact statement may be obtained for review by the public;
14

15 9. The time when, the place where, and the manner in which

16 persons may demand a hearing on the proposed rule if the notice does
16

17 not already provide for a hearing. If the notice provides for a
17

18 hearing, the time and place of the hearing shall be specified in the
18

19 notice; and
19

20 10. Where copies of the proposed rules may be obtained for

21 review by the public. An agency may charge persons for the actual
21

22 cost of mailing a copy of the proposed rules to such persons.
22

23 The number of copies of such notice as specified by the

24 Secretary of State shall be submitted to the Secretary of State who
24

Req. No. 3559 Page 640
1 shall publish the notice in "The Oklahoma Register" pursuant to the
1

2 provisions of Section 255 of this title.
2

3 Prior to or within three (3) days after publication of the

4 notice in "The Oklahoma Register", the agency shall cause a copy of
4

5 the notice of the proposed rule adoption and the rule impact
5

6 statement, if available, to be mailed to all persons who have made a
6

7 timely request of the agency for advance notice of its rulemaking
7

8 proceedings. Provided, in lieu of mailing copies, an agency may
8

9 electronically notify interested persons that a copy of the proposed
9

10 rule and the rule impact statement, if available, may be viewed on
10

11 the agency's website. If an agency posts a copy of the proposed
11

12 rule and rule impact statement on its website, the agency shall not
12

13 charge persons for the cost of downloading or printing the proposed
13

14 rule or impact statement. Each agency shall maintain a listing of
14

15 persons or entities requesting such notice.
15

16 C. 1. If the published notice does not already provide for a

17 hearing, an agency shall schedule a hearing on a proposed rule if,
17

18 within thirty (30) days after the published notice of the proposed
18

19 rule adoption, a written request for a hearing is submitted by:
19

20 a. at least ten persons,

21 b. a political subdivision,

22 c. an agency, or

23 d. an association having not less than twenty-five

24 members.

Req. No. 3559 Page 641
1 At that hearing persons may present oral argument, data, and

2 views on the proposed rule.
2

3 2. A hearing on a proposed rule may not be held earlier than

4 thirty (30) days after notice of the hearing is published pursuant
4

5 to subsection B of this section.
5

6 3. The provisions of this subsection shall not be construed to

7 prevent an agency from holding a hearing or hearings on the proposed
7

8 rule although not required by the provisions of this subsection;
8

9 provided, that notice of such hearing shall be published in "The
9

10 Oklahoma Register" at least thirty (30) days prior to such hearing.
10

11 D. 1. Except as otherwise provided in this subsection, an

12 agency shall issue a rule impact statement of a proposed rule prior
12

13 to or within fifteen (15) days after the date of publication of the
13

14 notice of proposed rule adoption. The rule impact statement may be
14

15 modified after any hearing or comment period afforded pursuant to
15

16 the provisions of this section.
16

17 2. The agency shall consult with counties, municipalities, and

18 school boards, as necessary, when preparing the rule impact
18

19 statement of a proposed rule which increases or decreases the
19

20 revenue of counties, cities, or school districts, or imposes
20

21 functions or responsibilities on such entities which may increase
21

22 the expenditures or fiscal liability of the entity. The agency
22

23 shall consult and solicit information from businesses, business
23

24 associations, local government units, state agencies, or members of
24

Req. No. 3559 Page 642
1 the public that may be affected by the proposed rule or that may
1

2 provide relevant information to the agency.
2

3 3. Except as otherwise provided in this subsection, the rule

4 impact statement shall include, but not be limited to:
4

5 a. a statement of the need for the rule and legal basis

6 supporting it,

7 b. a classification of the rule as major or nonmajor,

8 with a justification for the classification, including

9 an estimate of the total annual implementation and

10 compliance costs that are reasonably expected to be

11 incurred by or passed along to businesses, state or

12 local government units, or individuals and a

13 determination of whether those costs will exceed One

14 Million Dollars ($1,000,000.00) over the initial five-

15 year period following the promulgation of the proposed

16 rule. Provided, if the costs exceed One Million

17 Dollars ($1,000,000.00), the agency shall classify the

18 rule as a major rule,

19 c. a description of the purpose of the proposed rule,

20 including a determination of whether the proposed rule

21 is mandated by federal law, or as a requirement for

22 participation in or implementation of a federally

23 subsidized or assisted program, and whether the

Req. No. 3559 Page 643
1 proposed rule exceeds the requirements of the

2 applicable federal law,

3 d. a description of the classes of persons who most

4 likely will be affected by the proposed rule,

5 including classes that will bear the costs of the

6 proposed rule, and any information on cost impacts

7 received by the agency from any private or public

8 entities,

9 e. a description of the classes of persons who will

10 benefit from the proposed rule,

11 f. a comprehensive analysis of the rule's economic

12 impact, including any anticipated impacts on the full-

13 time-employee count of the agency, any costs or

14 benefits, and a detailed quantification of

15 implementation and compliance costs on the affected

16 businesses, business sectors, public utility

17 ratepayers, individuals, state or local government

18 units, and on the state economy as a whole. The

19 analysis shall include a listing of all fee changes

20 and, whenever possible, a separate justification for

21 each fee change,

22 g. a detailed explanation of the methodology and

23 assumptions used to determine the economic impact,

24 including the dollar amounts calculated,

Req. No. 3559 Page 644
1 h. a determination of whether implementation of the

2 proposed rule will have an economic impact on any

3 political subdivisions or require their cooperation in

4 implementing or enforcing the rule,

5 i. a determination of whether implementation of the

6 proposed rule may have an adverse economic effect on

7 small business as provided by the Oklahoma Small

8 Business Regulatory Flexibility Act,

9 j. any measures taken by the agency to minimize the cost

10 and impact of the proposed rule on business and

11 economic development in this state, local government

12 units of this state, and individuals,

13 k. a determination of the effect of the proposed rule on

14 the public health, safety, and environment and, if the

15 proposed rule is designed to reduce significant risks

16 to the public health, safety, and environment, an

17 explanation of the nature of the risk and to what

18 extent the proposed rule will reduce the risk,

19 l. a determination of any detrimental effect on the

20 public health, safety, and environment if the proposed

21 rule is not implemented, and

22 m. the date the rule impact statement was prepared and,

23 if modified, the date modified,

24 n. an analysis of alternatives to adopting the rule,

Req. No. 3559 Page 645
1 o. estimates of the amount of time that would be spent by

2 state employees to develop the rule and of the amount

3 of other resources that would be utilized to develop

4 the rule, and

5 p. a summary and preliminary comparison of any existing

6 or proposed federal regulations that are intended to

7 address activities to be regulated by the proposed

8 rule.

9 4. To the extent an agency for good cause finds the preparation

10 of a rule impact statement or the specified contents thereof are
10

11 unnecessary or contrary to the public interest in the process of
11

12 adopting a nonmajor rule, the agency may request the Governor to
12

13 waive such requirement. Such request shall be in writing and shall
13

14 state the agency's findings and the justification for such findings.
14

15 Upon request by an agency, the Governor may also waive the rule
15

16 impact statement requirements for a nonmajor rule if the agency is
16

17 required to implement a statute or federal requirement that does not
17

18 require an agency to interpret or describe the requirements, such as
18

19 federally mandated provisions which afford the agency no discretion
19

20 to consider less restrictive alternatives. If the Governor fails to
20

21 waive such requirement, in writing, prior to publication of the
21

22 notice of the intended rulemaking action, the rule impact statement
22

23 shall be completed. The determination to waive the rule impact
23

24 statement shall not be subject to judicial review.
24

Req. No. 3559 Page 646
1 E. Upon completing the requirements of this section, an agency

2 may adopt a proposed rule. No rule is valid unless adopted in
2

3 substantial compliance with the provisions of this section.
3

4 SECTION 156. REPEALER 75 O.S. 2021, Section 303, as

5 amended by Section 1, Chapter 267, O.S.L. 2025 (75 O.S. Supp. 2025,
5

6 Section 303), is hereby repealed.
6

7 SECTION 157. AMENDATORY 75 O.S. 2021, Section 308, as

8 last amended by Section 8, Chapter 258, O.S.L. 2025 (75 O.S. Supp.
8

9 2025, Section 308), is amended to read as follows:
9

10 Section 308. A. Upon receipt of any proposed permanent rules,

11 the Speaker of the House of Representatives and the President Pro
11

12 Tempore of the Senate shall assign such rules to the appropriate
12

13 committees of each house of the Legislature for review. Except as
13

14 otherwise provided by this section:
14

15 1. If such rules are received on or before February 1, the

16 Legislature shall have until the last day of the regular legislative
16

17 session of that year to review such rules; and
17

18 2. If such rules are received after the date established

19 pursuant to paragraph 1 of this subsection, the Legislature shall
19

20 have until the last day of the regular legislative session of the
20

21 next year to act on such rules.
21

22 B. By the adoption of joint resolutions during the review

23 period specified in subsection A of this section, the Legislature
23

24 may disapprove or approve any rule and disapprove all or part of a
24

Req. No. 3559 Page 647
1 rule or rules. Any rules not acted upon by the adoption of a joint
1

2 resolution shall be deemed disapproved.
2

3 C. Unless otherwise authorized by the Legislature, whenever a

4 rule is disapproved as provided in subsection B of this section, the
4

5 agency adopting such rules shall not have authority to resubmit an
5

6 identical rule, except during the first sixty (60) calendar days of
6

7 the next regular legislative session. Any effective emergency rule
7

8 which would have been superseded by a disapproved permanent rule
8

9 shall be deemed null and void on the date the Legislature
9

10 disapproves the permanent rule. Rules may be disapproved in part or
10

11 in whole by the Legislature. Upon enactment of any joint resolution
11

12 disapproving a rule, the agency shall file notice of such
12

13 legislative disapproval with the Secretary of State for publication
13

14 in "The Oklahoma Register".
14

15 D. Unless otherwise provided by specific vote of the

16 Legislature, joint resolutions introduced for purposes of
16

17 disapproving or approving a rule or the omnibus joint resolution
17

18 shall not be subject to regular legislative cutoff dates, shall be
18

19 limited to such provisions as may be necessary for disapproval or
19

20 approval of a rule, and any such other direction or mandate
20

21 regarding the rule deemed necessary by the Legislature. The
21

22 resolution shall contain no other provisions.
22

23 E. A proposed permanent rule shall be deemed finally adopted

24 if:
24

Req. No. 3559 Page 648
1 1. Approved by the Legislature pursuant to Section 308.3 of

2 this title, provided that any such joint resolution becomes law in
2

3 accordance with Section 11 of Article VI of the Oklahoma
3

4 Constitution;
4

5 2. Approved by a joint resolution pursuant to subsection B of

6 this section, provided that any such resolution becomes law in
6

7 accordance with Section 11 of Article VI of the Oklahoma
7

8 Constitution; or
8

9 3. 2. Disapproved by a joint resolution pursuant to subsection

10 B of this section or Section 308.3 of this title which has been
10

11 vetoed by the Governor in accordance with Section 11 of Article VI
11

12 of the Oklahoma Constitution and the veto has not been overridden.
12

13 Provided, major rules shall be addressed in one or more joint

14 resolutions only addressing major rules, regardless of if the joint
14

15 resolution is to approve or disapprove such rules.
15

16 F. Prior to final adoption of a rule, an agency may withdraw a

17 rule from legislative review. Notice of such withdrawal shall be
17

18 given to the Governor, the Speaker of the House of Representatives,
18

19 the President Pro Tempore of the Senate, and to the Secretary of
19

20 State for publication in "The Oklahoma Register".
20

21 G. An agency may promulgate an emergency rule only pursuant to

22 Section 253 of this title.
22

23 H. Any rights, privileges, or interests gained by any person by

24 operation of an emergency rule shall not be affected by reason of
24

Req. No. 3559 Page 649
1 any subsequent disapproval or rejection of such rule by either house
1

2 of the Legislature.
2

3 SECTION 158. REPEALER 75 O.S. 2021, Section 308, as last

4 amended by Section 2, Chapter 420, O.S.L. 2025 (75 O.S. Supp. 2025,
4

5 Section 308), is hereby repealed.
5

6 SECTION 159. AMENDATORY 85A O.S. 2021, Section 2, as

7 amended by Section 1, Chapter 135, O.S.L. 2025 (85A O.S. Supp. 2025,
7

8 Section 2), is amended to read as follows:
8

9 Section 2. As used in the Administrative Workers' Compensation

10 Act:
10

11 1. "Actually dependent" means a surviving spouse, a child or

12 any other person who receives one-half (1/2) or more of his or her
12

13 support from the employee;
13

14 2. "Carrier" means any stock company, mutual company, or

15 reciprocal or interinsurance exchange authorized to write or carry
15

16 on the business of workers' compensation insurance in this state.
16

17 Whenever required by the context, the term carrier shall be deemed
17

18 to include duly qualified self-insureds or self-insured groups;
18

19 3. "Case management" means the ongoing coordination, by a case

20 manager, of health care services provided to an injured or disabled
20

21 worker, including but not limited to systematically monitoring the
21

22 treatment rendered and the medical progress of the injured or
22

23 disabled worker; ensuring that any treatment plan follows all
23

24 appropriate treatment protocols, utilization controls and practice
24

Req. No. 3559 Page 650
1 parameters; assessing whether alternative health care services are
1

2 appropriate and delivered in a cost-effective manner based upon
2

3 acceptable medical standards; and ensuring that the injured or
3

4 disabled worker is following the prescribed health care plan;
4

5 4. "Case manager" means a person who is a registered nurse with

6 a current, active unencumbered license from the Oklahoma Board of
6

7 Nursing, or possesses one or more of the following certifications
7

8 which indicate the individual has a minimum number of years of case
8

9 management experience, has passed a national competency test and
9

10 regularly obtains continuing education hours to maintain
10

11 certification:
11

12 a. Certified Disability Management Specialist (CDMS),

13 b. Certified Case Manager (CCM),

14 c. Certified Rehabilitation Registered Nurse (CRRN),

15 d. Case Manager - Certified (CMC),

16 e. Certified Occupational Health Nurse (COHN), or

17 f. Certified Occupational Health Nurse Specialist (COHN-

18 S);

19 5. "Certified workplace medical plan" means an organization of

20 health care providers or any other entity, certified by the State
20

21 Commissioner of Health, that is authorized to enter into a
21

22 contractual agreement with an employer, a group self-insurance
22

23 association plan, an employer's workers' compensation insurance
23

24 carrier, a third-party administrator or an insured to provide
24

Req. No. 3559 Page 651
1 medical care under the Administrative Workers' Compensation Act.
1

2 Certified plans shall only include plans which provide medical
2

3 services and payment for services on a fee-for-service basis to
3

4 medical providers;
4

5 6. "Child" means a natural or adopted son or daughter of the

6 employee under eighteen (18) years of age; or a natural or adopted
6

7 son or daughter of an employee eighteen (18) years of age or over
7

8 who is physically or mentally incapable of self-support; or any
8

9 natural or adopted son or daughter of an employee eighteen (18)
9

10 years of age or over who is actually dependent; or any natural or
10

11 adopted son or daughter of an employee between eighteen (18) and
11

12 twenty-three (23) years of age who is enrolled as a full-time
12

13 student in any accredited educational institution. The term child
13

14 includes a posthumous child, a child legally adopted or one for whom
14

15 adoption proceedings are pending at the time of death, an actually
15

16 dependent stepchild or an actually dependent acknowledged child born
16

17 out of wedlock;
17

18 7. "Claimant" means a person who claims benefits for an injury

19 or occupational disease pursuant to the provisions of the
19

20 Administrative Workers' Compensation Act;
20

21 8. "Commission" means the Oklahoma Workers' Compensation

22 Commission;
22

23 9. a. "Compensable injury" means damage or harm to the

24 physical structure of the body, or damage or harm to

Req. No. 3559 Page 652
1 prosthetic appliances, including eyeglasses, contact

2 lenses, or hearing aids, of which the major cause is

3 either an accident, cumulative trauma or occupational

4 disease arising out of the course and scope of

5 employment. An "accident" means an event involving

6 factors external to the employee that:

7 (1) was unintended, unanticipated, unforeseen,

8 unplanned and unexpected,

9 (2) occurred at a specifically identifiable time and

10 place,

11 (3) occurred by chance or from unknown causes, or

12 (4) was independent of sickness, mental incapacity,

13 bodily infirmity or any other cause.

14 b. Compensable injury does not include:

15 (1) injury to any active participant in assaults or

16 combats which, although they may occur in the

17 workplace, are the result of non-employment-

18 related hostility or animus of one, both, or all

19 of the combatants and which assault or combat

20 amounts to a deviation from customary duties;

21 provided, however, injuries caused by horseplay

22 shall not be considered to be compensable

23 injuries, except for innocent victims,

Req. No. 3559 Page 653
1 (2) injury incurred while engaging in or performing

2 or as the result of engaging in or performing any

3 recreational or social activities for the

4 employee's personal pleasure,

5 (3) injury which was inflicted on the employee at a

6 time when employment services were not being

7 performed or before the employee was hired or

8 after the employment relationship was terminated,

9 (4) injury if the accident was caused by the use of

10 alcohol, illegal drugs, or prescription drugs

11 used in contravention of physician's orders. If

12 a biological specimen is collected within twenty-

13 four (24) hours of the employee being injured or

14 reporting an injury, or if at any time after the

15 injury a biological specimen is collected by the

16 Office of the Chief Medical Examiner if the

17 injured employee does not survive for at least

18 twenty-four (24) hours after the injury and the

19 employee tests positive for intoxication, an

20 illegal controlled substance, or a legal

21 controlled substance used in contravention to a

22 treating physician's orders, or refuses to

23 undergo the drug and alcohol testing, there shall

24 be a rebuttable presumption that the injury was

Req. No. 3559 Page 654
1 caused by the use of alcohol, illegal drugs, or

2 prescription drugs used in contravention of

3 physician's orders. This presumption may only be

4 overcome if the employee proves by clear and

5 convincing evidence that his or her state of

6 intoxication had no causal relationship to the

7 injury,

8 (5) any strain, degeneration, damage or harm to, or

9 disease or condition of, the eye or

10 musculoskeletal structure or other body part

11 resulting from the natural results of aging,

12 osteoarthritis, arthritis, or degenerative

13 process including, but not limited to,

14 degenerative joint disease, degenerative disc

15 disease, degenerative

16 spondylosis/spondylolisthesis and spinal

17 stenosis, or

18 (6) any preexisting condition except when the

19 treating physician clearly confirms an

20 identifiable and significant aggravation incurred

21 in the course and scope of employment.

22 c. A compensable injury shall be established by medical

23 evidence supported by objective findings as defined in

24 paragraph 31 of this section.

Req. No. 3559 Page 655
1 d. The injured employee shall prove by a preponderance of

2 the evidence that he or she has suffered a compensable

3 injury.

4 e. Benefits shall not be payable for a condition which

5 results from a non-work-related independent

6 intervening cause following a compensable injury which

7 causes or prolongs disability or aggravation or

8 requires treatment. A non-work-related independent

9 intervening cause does not require negligence or

10 recklessness on the part of a claimant.

11 f. An employee who suffers a compensable injury shall be

12 entitled to receive compensation as prescribed in the

13 Administrative Workers' Compensation Act.

14 Notwithstanding other provisions of law, if it is

15 determined that a compensable injury did not occur,

16 the employee shall not be entitled to compensation

17 under the Administrative Workers' Compensation Act;

18 10. "Compensation" means the money allowance payable to the

19 employee or to his or her dependents and includes the medical
19

20 services and supplies provided for in Section 50 of this title and
20

21 funeral expenses;
21

22 11. "Consequential injury" means injury or harm to a part of

23 the body that is a direct result of the injury or medical treatment
23

24 to the part of the body originally injured in the claim. The
24

Req. No. 3559 Page 656
1 Commission shall not make a finding of a consequential injury unless
1

2 it is established by objective medical evidence that medical
2

3 treatment for such part of the body is required;
3

4 12. "Continuing medical maintenance" means medical treatment

5 that is reasonable and necessary to maintain a claimant's condition
5

6 resulting from the compensable injury or illness after reaching
6

7 maximum medical improvement. Continuing medical maintenance shall
7

8 not include diagnostic tests, surgery, injections, counseling,
8

9 physical therapy, or pain management devices or equipment;
9

10 13. "Course and scope of employment" means an activity of any

11 kind or character for which the employee was hired and that relates
11

12 to and derives from the work, business, trade or profession of an
12

13 employer, and is performed by an employee in the furtherance of the
13

14 affairs or business of an employer. The term includes activities
14

15 conducted on the premises of an employer or at other locations
15

16 designated by an employer and travel by an employee in furtherance
16

17 of the affairs of an employer that is specifically directed by the
17

18 employer. This term does not include:
18

19 a. an employee's transportation to and from his or her

20 place of employment,

21 b. travel by an employee in furtherance of the affairs of

22 an employer if the travel is also in furtherance of

23 personal or private affairs of the employee,

Req. No. 3559 Page 657
1 c. any injury occurring in a parking lot or other common

2 area adjacent to an employer's place of business

3 before the employee clocks in or otherwise begins work

4 for the employer or after the employee clocks out or

5 otherwise stops work for the employer unless the

6 employer owns or maintains exclusive control over the

7 area, or

8 d. any injury occurring while an employee is on a work

9 break, unless the injury occurs while the employee is

10 on a work break inside the employer's facility or in

11 an area owned by or exclusively controlled by the

12 employer and the work break is authorized by the

13 employee's supervisor;

14 14. "Cumulative trauma" means an injury to an employee that is

15 caused by the combined effect of repetitive physical activities
15

16 extending over a period of time in the course and scope of
16

17 employment. Cumulative trauma shall not mean fatigue, soreness or
17

18 general aches and pain that may have been caused, aggravated,
18

19 exacerbated or accelerated by the employee's course and scope of
19

20 employment. Cumulative trauma shall have resulted directly and
20

21 independently of all other causes;
21

22 15. "Death" means only death resulting from compensable injury

23 as defined in paragraph 9 of this section;
23

Req. No. 3559 Page 658
1 16. "Disability" means incapacity because of compensable injury

2 to earn, in the same or any other employment, substantially the same
2

3 amount of wages the employee was receiving at the time of the
3

4 compensable injury;
4

5 17. "Drive-away operations" includes every person engaged in

6 the business of transporting and delivering new or used vehicles by
6

7 driving, either singly or by towbar, saddle-mount or full-mount
7

8 method, or any combination thereof, with or without towing a
8

9 privately owned vehicle;
9

10 18. a. "Employee" means any person, including a minor, in the

11 service of an employer under any contract of hire or

12 apprenticeship, written or oral, expressed or implied,

13 but excluding one whose employment is casual and not

14 in the course of the trade, business, profession, or

15 occupation of his or her employer and excluding one

16 who is required to perform work for a municipality or

17 county or the state or federal government on having

18 been convicted of a criminal offense or while

19 incarcerated. Employee shall also include a member of

20 the Oklahoma National Guard while in the performance

21 of duties only while in response to state orders and

22 any authorized voluntary or uncompensated worker,

23 rendering services as a firefighter, law enforcement

24 officer or emergency management worker. Travel by a

Req. No. 3559 Page 659
1 police officer, fireman, or a member of a first aid or

2 rescue squad, in responding to and returning from an

3 emergency, shall be deemed to be in the course of

4 employment.

5 b. The term employee shall not include:

6 (1) any person for whom an employer is liable under

7 any Act of Congress for providing compensation to

8 employees for injuries, disease or death arising

9 out of and in the course of employment including,

10 but not limited to, the Federal Employees'

11 Compensation Act, the Federal Employers'

12 Liability Act, the Longshore and Harbor Workers'

13 Compensation Act and the Jones Act, to the extent

14 his or her employees are subject to such acts,

15 (2) any person who is employed in agriculture,

16 ranching, or horticulture by an employer who had

17 a gross annual payroll in the preceding calendar

18 year of less than One Hundred Fifty Thousand

19 Dollars ($150,000.00) wages for agricultural,

20 ranching or horticultural workers, or any person

21 who is employed in agriculture, ranching or

22 horticulture who is not engaged in operation of

23 motorized machines. This exemption applies to

24 any period of time for which such employment

Req. No. 3559 Page 660
1 exists, irrespective of whether or not the person

2 is employed in other activities for which the

3 exemption does not apply. If the person is

4 employed for part of a year in exempt activities

5 and for part of a year in nonexempt activities,

6 the employer shall be responsible for providing

7 workers' compensation only for the period of time

8 for which the person is employed in nonexempt

9 activities,

10 (3) any person who is a licensed real estate sales

11 associate or broker, paid on a commission basis,

12 (4) any person employed by an employer with five or

13 fewer total employees, all of whom are related

14 within the second degree by blood or marriage to

15 the employer, all of whom are dependents living

16 in the household of the employer, or all of whom

17 are a combination of such relatives and

18 dependents. If the employer is not a natural

19 person such relative shall be related within the

20 second degree by blood or marriage to a person

21 who owns fifty percent (50%) or more of the

22 employer, or such dependent shall be in the

23 household of a person who owns fifty percent

24 (50%) or more of the employer,

Req. No. 3559 Page 661
1 (5) any person employed by an employer which is a

2 youth sports league which qualifies for exemption

3 from federal income taxation pursuant to federal

4 law,

5 (6) sole proprietors, members of a partnership,

6 individuals who are party to a franchise

7 agreement as set out by the Federal Trade

8 Commission franchise disclosure rule, 16 CFR

9 436.1 through 436.11, members of a limited

10 liability company who own at least ten percent

11 (10%) of the capital of the limited liability

12 company or any stockholder-employees of a

13 corporation who own ten percent (10%) or more

14 stock in the corporation, unless they elect to be

15 covered by a policy of insurance covering

16 benefits under the Administrative Workers'

17 Compensation Act,

18 (7) any person providing or performing voluntary

19 service who receives no wages for the services

20 other than meals, drug or alcohol rehabilitative

21 therapy, transportation, lodging or reimbursement

22 for incidental expenses except for volunteers

23 specifically provided for in subparagraph a of

24 this paragraph,

Req. No. 3559 Page 662
1 (8) a person, commonly referred to as an owner-

2 operator, who owns or leases a truck-tractor or

3 truck for hire, if the owner-operator actually

4 operates the truck-tractor or truck and if the

5 person contracting with the owner-operator is not

6 the lessor of the truck-tractor or truck.

7 Provided, however, an owner-operator shall not be

8 precluded from workers' compensation coverage

9 under the Administrative Workers' Compensation

10 Act if the owner-operator elects to participate

11 as a sole proprietor,

12 (9) a person referred to as a drive-away owner-

13 operator who privately owns and utilizes a tow

14 vehicle in drive-away operations and operates

15 independently for hire, if the drive-away owner-

16 operator actually utilizes the tow vehicle and if

17 the person contracting with the drive-away owner-

18 operator is not the lessor of the tow vehicle.

19 Provided, however, a drive-away owner-operator

20 shall not be precluded from workers' compensation

21 coverage under the Administrative Workers'

22 Compensation Act if the drive-away owner-operator

23 elects to participate as a sole proprietor,

Req. No. 3559 Page 663
1 (10) any person who is employed as a domestic servant

2 or as a casual worker in and about a private home

3 or household, which private home or household had

4 a gross annual payroll in the preceding calendar

5 year of less than Fifty Thousand Dollars

6 ($50,000.00) for such workers, and

7 (11) any person engaging in a temporary work

8 arrangement that allows the individual to observe

9 a work environment and gain work experience

10 without the expectation of financial

11 compensation, and

12 (12) any person who is a dependent child of an owner

13 of a farm, ranch, livestock market, or other

14 agricultural business and the dependent child is

15 employed by such;

16 19. "Employer" means a natural person, partnership,

17 association, limited liability company, corporation, and the legal
17

18 representatives of a deceased employer, or the receiver or trustee
18

19 of a person, partnership, association, corporation, or limited
19

20 liability company, departments, instrumentalities and institutions
20

21 of this state and divisions thereof, counties and divisions thereof,
21

22 public trusts, boards of education and incorporated cities or towns
22

23 and divisions thereof, employing a person included within the term
23

24 employee as defined in this section. Employer may also mean the
24

Req. No. 3559 Page 664
1 employer's workers' compensation insurance carrier, if applicable.
1

2 Except as provided otherwise, the Administrative Workers'
2

3 Compensation Act applies to all public and private entities and
3

4 institutions;
4

5 20. "Employment" includes work or labor in a trade, business,

6 occupation or activity carried on by an employer or any authorized
6

7 voluntary or uncompensated worker rendering services as a
7

8 firefighter, peace officer or emergency management worker;
8

9 21. "Evidence-based" means expert-based, literature-supported

10 and outcomes validated by well-designed randomized trials when such
10

11 information is available and which uses the best available evidence
11

12 to support medical decision making;
12

13 22. "Gainful employment" means the capacity to perform

14 employment for wages for a period of time that is not part-time,
14

15 occasional or sporadic;
15

16 23. "Impaired self-insurer" means a private self-insurer or

17 group self-insurance association that fails to pay its workers'
17

18 compensation obligations, or is financially unable to do so and is
18

19 the subject of any proceeding under the Federal Bankruptcy Reform
19

20 Act of 1978, and any subsequent amendments or is the subject of any
20

21 proceeding in which a receiver, custodian, liquidator,
21

22 rehabilitator, trustee or similar officer has been appointed by a
22

23 court of competent jurisdiction to act in lieu of or on behalf of
23

24 the self-insurer;
24

Req. No. 3559 Page 665
1 24. "Incapacity" means inadequate strength or ability to

2 perform a work-related task;
2

3 25. "Insurance Commissioner" means the Insurance Commissioner

4 of this state;
4

5 26. "Insurance Department" means the Insurance Department of

6 this state;
6

7 27. "Major cause" means more than fifty percent (50%) of the

8 resulting injury, disease or illness. A finding of major cause
8

9 shall be established by a preponderance of the evidence. A finding
9

10 that the workplace was not a major cause of the injury, disease or
10

11 illness shall not adversely affect the exclusive remedy provisions
11

12 of the Administrative Workers' Compensation Act and shall not create
12

13 a separate cause of action outside the Administrative Workers'
13

14 Compensation Act;
14

15 28. "Maximum medical improvement" means that no further

16 material improvement would reasonably be expected from medical
16

17 treatment or the passage of time;
17

18 29. "Medical services" means those services specified in

19 Section 50 of this title;
19

20 30. "Misconduct" shall include the following:

21 a. unexplained absenteeism or tardiness,

22 b. willful or wanton indifference to or neglect of the

23 duties required,

Req. No. 3559 Page 666
1 c. willful or wanton breach of any duty required by the

2 employer,

3 d. the mismanagement of a position of employment by

4 action or inaction,

5 e. actions or omissions that place in jeopardy the

6 health, life, or property of self or others,

7 f. dishonesty,

8 g. wrongdoing,

9 h. violation of a law, or

10 i. violation of a policy or rule adopted to ensure

11 orderly work or the safety of self or others;

12 31. a. (1) "Objective findings" are those findings which

13 cannot come under the voluntary control of the

14 patient.

15 (2) (a) When determining permanent disability, a

16 physician, any other medical provider, an

17 administrative law judge, the Commission or

18 the courts shall not consider complaints of

19 pain.

20 (b) For the purpose of making permanent

21 disability ratings to the spine, physicians

22 shall use criteria established by the Sixth

23 Edition of the American Medical Association

Req. No. 3559 Page 667
1 "Guides to the Evaluation of Permanent

2 Impairment".

3 (3) (a) Objective evidence necessary to prove

4 permanent disability in occupational hearing

5 loss cases may be established by medically

6 recognized and accepted clinical diagnostic

7 methodologies, including, but not limited

8 to, audiological tests that measure air and

9 bone conduction thresholds and speech

10 discrimination ability.

11 (b) Any difference in the baseline hearing

12 levels shall be confirmed by subsequent

13 testing; provided, however, such test shall

14 be given within four (4) weeks of the

15 initial baseline hearing level test but not

16 before five (5) days after being adjusted

17 for presbycusis.

18 b. Medical opinions addressing compensability and

19 permanent disability shall be stated within a

20 reasonable degree of medical certainty;

21 32. "Official Disability Guidelines" or "ODG" means the current

22 edition of the Official Disability Guidelines and the ODG Treatment
22

23 in Workers' Comp as published by the Work Loss Data Institute;
23

Req. No. 3559 Page 668
1 33. "Permanent disability" means the extent, expressed as a

2 percentage, of the loss of a portion of the total physiological
2

3 capabilities of the human body as established by competent medical
3

4 evidence and based on the Sixth Edition of the American Medical
4

5 Association "Guides to the Evaluation of Permanent Impairment", if
5

6 the impairment is contained therein;
6

7 34. "Permanent partial disability" means a permanent disability

8 or loss of use after maximum medical improvement has been reached
8

9 which prevents the injured employee, who has been released to return
9

10 to work by the treating physician, from returning to his or her pre-
10

11 injury or equivalent job. All evaluations of permanent partial
11

12 disability must be supported by objective findings;
12

13 35. "Permanent total disability" means, based on objective

14 findings, incapacity, based upon accidental injury or occupational
14

15 disease, to earn wages in any employment for which the employee may
15

16 become physically suited and reasonably fitted by education,
16

17 training, experience or vocational rehabilitation provided under the
17

18 Administrative Workers' Compensation Act. Loss of both hands, both
18

19 feet, both legs, or both eyes, or any two thereof, shall constitute
19

20 permanent total disability;
20

21 36. "Preexisting condition" means any illness, injury, disease,

22 or other physical or mental condition, whether or not work-related,
22

23 for which medical advice, diagnosis, care or treatment was
23

24 recommended or received preceding the date of injury;
24

Req. No. 3559 Page 669
1 37. "Pre-injury or equivalent job" means the job that the

2 claimant was working for the employer at the time the injury
2

3 occurred or any other employment offered by the claimant's employer
3

4 that pays at least one hundred percent (100%) of the employee's
4

5 average weekly wage;
5

6 38. "Private self-insurer" means a private employer that has

7 been authorized to self-insure its workers' compensation obligations
7

8 pursuant to the Administrative Workers' Compensation Act, but does
8

9 not include group self-insurance associations authorized by the
9

10 Administrative Workers' Compensation Act, or any public employer
10

11 that self-insures pursuant to the Administrative Workers'
11

12 Compensation Act;
12

13 39. "Prosthetic" means an artificial device used to replace a

14 part or joint of the body that is lost or injured in an accident or
14

15 illness covered by the Administrative Workers' Compensation Act;
15

16 40. "Scheduled member" or "member" means hands, fingers, arms,

17 legs, feet, toes, and eyes. In addition, for purposes of the
17

18 Multiple Injury Trust Fund only, scheduled member means hearing
18

19 impairment;
19

20 41. "Scientifically based" involves the application of

21 rigorous, systematic, and objective procedures to obtain reliable
21

22 and valid knowledge relevant to medical testing, diagnoses and
22

23 treatment; is adequate to justify the general conclusions drawn; and
23

24 has been accepted by a peer-review journal or approved by a panel of
24

Req. No. 3559 Page 670
1 independent experts through a comparably rigorous, objective, and
1

2 scientific review;
2

3 42. "State average weekly wage" means the state average weekly

4 wage determined by the Oklahoma Employment Security Commission in
4

5 the preceding calendar year. If such determination is not
5

6 available, the Commission shall determine the wage annually after
6

7 reasonable investigation;
7

8 43. "Subcontractor" means a person, firm, corporation or other

9 legal entity hired by the general or prime contractor to perform a
9

10 specific task for the completion of a work-related activity;
10

11 44. "Surgery" does not include an injection, or the forcing of

12 fluids beneath the skin, for treatment or diagnosis;
12

13 45. "Surviving spouse" means the employee's spouse by reason of

14 a legal marriage recognized by this state or under the requirements
14

15 of a common law marriage in this state, as determined by the
15

16 Oklahoma Workers' Compensation Commission;
16

17 46. "Temporary partial disability" means an injured employee

18 who is temporarily unable to perform his or her job, but may perform
18

19 alternative work offered by the employer;
19

20 47. "Time of accident" or "date of accident" means the time or

21 date of the occurrence of the accidental incident from which
21

22 compensable injury, disability, or death results; and
22

23 48. "Wages" means money compensation received for employment at

24 the time of the accident, including the reasonable value of board,
24

Req. No. 3559 Page 671
1 rent, housing, lodging, or similar advantage received from the
1

2 employer and includes the amount of tips required to be reported by
2

3 the employer under Section 6053 of the Internal Revenue Code and the
3

4 regulations promulgated pursuant thereto or the amount of actual
4

5 tips reported, whichever amount is greater.
5

6 SECTION 160. REPEALER 85A O.S. 2021, Section 2, as

7 amended by Section 1, Chapter 67, O.S.L. 2025 (85A O.S. Supp. 2025,
7

8 Section 2), is hereby repealed.
8

9 SECTION 161. It being immediately necessary for the

10 preservation of the public peace, health or safety, an emergency is
10

11 hereby declared to exist, by reason whereof this act shall take
11

12 effect and be in full force from and after its passage and approval.
12

14 60-2-3559 MD 3/4/2026 3:42:41 PM

Req. No. 3559 Page 672

Every fact on this page links to its source, starting with the official bill record.