Okla. Stat. tit. 82, § 82-861A

A. The Grand River Dam Authority, created pursuant to the

provisions of the Grand River Dam Authority Act, Section 861 et seq.

of this title, is a nonappropriated agency of the State of Oklahoma.

The Grand River Dam Authority herein referred to as the "district"

is subject to the laws of the state as they apply to state agencies

except as specifically exempted by statute. All funds generated,

received and expended by the district are public funds and subject

to state laws and regulations governing the receipt and expenditure

of public funds in the same manner as all other state agencies

except as otherwise provided by statute. The employees of the

district are both classified and unclassified state employees

subject to the same benefits and restrictions applicable to all

state agencies except as otherwise provided by statute.

B. Recognizing that the district is a unique agency of this

state, whose mission requires the ability of the district to

function in competition with private industry within the competitive

power market, the Legislature hereby requires the Grand River Dam

Authority Board of Directors as the rulemaking authority for the

district to:

1. Promulgate appropriate rules governing operations of the

district pursuant to the provisions of Article I of the

Administrative Procedures Act, with the exception of rules dealing

with the waters of the Grand River and its tributaries; and

2. Set fees for services performed by the district; provided

that such fees shall not exceed the cost to the district of

providing such services;

3. Develop written policies and procedures governing the

district's activities including purchasing, procurement and bidding,

Oklahoma Statutes - Title 82. Waters and Water Rights Page 138

purchase and disposition of real and personal property, fleet

management marketing, consumer education, community relations and

customer service functions performed by the district to the extent

it deems necessary; and

4. Develop written hiring and compensation policies of

employees of the district, subject to the provisions of Section 864

of this title.

C. The district is required to document business expenses

necessary to carry out the business of the district. Expenses shall

meet current State of Oklahoma and Internal Revenue Service

guidelines for business expense deductibility.

D. If necessary to comply with the provisions of this act, the

Board may, by majority vote, employ an independent audit firm to

assist it in its duties. Funds required for this purpose shall be

borne by the district with approval by the Board.

E. The Board of Directors or the management of the district may

seek advice from the State Treasurer or the State Bond Advisor as it

deems necessary.

F. After the effective date of this act, the district shall not

provide retail electric power or retail electric service to electric

consuming facilities except to:

1. An existing electric consuming facility if such electric

power was being provided by the district on the effective date of

August 29, 2003; and

2. Any entity located within the boundary of the Oklahoma

Ordnance Works Authority/Mid-America Industrial Park or within a

two-mile radius of the boundary.

Retail distribution of electric power shall be defined as any

sale not for resale.