ENGROSSED SENATE
BILL NO. 286	By:	Anderson of the Senate

			and

		Sullivan of the House

An Act relating to tax administration; amending 68 O.S. 2001, Section 113, as last amended by Section 1, Chapter 434, O.S.L. 2009 (68 O.S. Supp. 2010, Section 113), which relates to Oklahoma Tax Commission revolving funds; clarifying language; modifying type of funds to be deposited in Tax Commission Reimbursement Fund; deleting obsolete language; creating Municipal Tax Enforcement Fund and providing for types of funds deposited therein; requiring establishment of specified accountability protocols by certain parties; authorizing certain expenses to be paid out of Fund; authorizing Tax Commission to hire certain employees for specified purpose; providing for support and termination of such employees under certain circumstances; providing that such employees are in unclassified service and not subject to certain act; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     68 O.S. 2001, Section 113, as last amended by Section 1, Chapter 434, O.S.L. 2009 (68 O.S. Supp. 2010, Section 113), is amended to read as follows:
Section 113.  A.  There is hereby created in the State Treasury a revolving fund for the Oklahoma Tax Commission to be known as the "Tax Commission Reimbursement Fund".  Said revolving fund shall consist of any funds:
1.  Funds received by the Tax Commission for data processing services or equipment rental and any funds;
2.  Funds received by the Tax Commission from any incorporated city, town, or county pursuant to a contractual agreement for the augmentation of the enforcement and collection of municipal or county taxes entered into pursuant to the provisions of Sections Section 1371 or 2702 of this title.  The Tax Commission is authorized to hire full-time-equivalent employees as necessary to perform such duties as to fulfill contractual agreements authorized pursuant to Sections Section 1371 and 2702 of this title, however, such employees hired to perform such contractual duties shall be supported solely by funds in the Tax Commission Reimbursement Fund which are collected by the Tax Commission from incorporated cities, towns, and counties pursuant to such contractual agreements and such employees shall be terminated upon the discontinuation of such funds or inadequate funds to support such positions.  Such full-time-equivalent employees shall be in the unclassified service and shall not be subject to any provisions of the Oklahoma Personnel Act or to any of the rules or regulations promulgated by the Office of Personnel Management except leave regulations.  All fees; and
3.  Fees collected and apportioned to this fund under the Oklahoma Vehicle License and Registration Act, Section 1101 et seq. of Title 47 of the Oklahoma Statutes, which may be used by the Motor Vehicle Division of the Oklahoma Tax Commission to pay all costs incurred in the issuance of certificates of title and inspection of vehicles, including, but not limited to, additional computer costs for the Tax Commission and motor license agents and the check verification system authorized pursuant to the provisions of paragraph 1 of subsection A of Section 1144 of Title 47 of the Oklahoma Statutes or be used for capital expenditures as authorized by the Oklahoma State Legislature.  For the fiscal year beginning July 1, 2004, disbursements from the fund shall be exempt from all agency budget limits.
B.  Notwithstanding any other provision in the Oklahoma Statutes except subsection F of Section 316 and subsection D of Section 418 of this title, beginning July 1, 2009, all revenue from fees and penalties collected pursuant to Sections 304, 316, 415 and 418 of this title shall be apportioned to the Tax Commission Reimbursement Fund for administrative and data processing expenses incurred in connection with electronic reporting requirements pursuant to the provisions of Section 301 et seq., Section 346 et seq., Section 401 et seq. and Section 424 et seq. of this title.
C.  There is hereby created in the State Treasury a revolving fund for the Oklahoma Tax Commission to be known as the “Municipal Tax Enforcement Fund”.  Said revolving fund shall consist of any funds received by the Tax Commission from any incorporated city or town pursuant to a contractual agreement entered into pursuant to the provisions of Section 2702 of this title for the augmentation of the enforcement and collection of municipal sales or use taxes.  The Tax Commission, in consultation with representatives of a statewide nonprofit organization which supports the functions of such municipalities and whose membership consists primarily of municipalities organized under the laws of the State of Oklahoma, shall develop accountability protocols for the Municipal Tax Enforcement Fund.  Expenses for developing, implementing and updating such protocols may be paid out of the Municipal Tax Enforcement Fund.  The Tax Commission is authorized to hire full-time-equivalent employees as necessary to perform such duties as to fulfill contractual agreements authorized pursuant to Section 2702 of this title, however, such employees hired to perform such contractual duties shall be supported solely by funds in the Municipal Tax Enforcement Fund which are collected by the Tax Commission from incorporated cities and towns pursuant to such contractual agreements and such employees shall be terminated upon the discontinuation of such funds or inadequate funds to support such positions.  Such full-time-equivalent employees shall be in the unclassified service and shall not be subject to any provisions of the Oklahoma Personnel Act or to any of the rules or regulations promulgated by the Office of Personnel Management except leave regulations.
SECTION 2.  This act shall become effective January 1, 2012.
Passed the Senate the 7th day of March, 2011.

	
Presiding Officer 	of the Senate

Passed the House of Representatives the ____ day of __________, 2011.

	
Presiding Officer of the House
	of Representatives