Req. No. 6892 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 1852 By: Fugate
AS INTRODUCED
An Act relating to the Oklahoma Capitol Improvement
Authority; authorizing issuance of indebtedness;
stating purpose of issuance; providi ng for allocation
of bond proceeds to the University of Oklahoma and
Oklahoma State University; authorizing Authority to
hold title to certain assets; providing for transfer
of title upon occurrence of certain events;
authorizing borrowing of monies based upon certain
revenues; stating legislative intent with respect to
appropriations; providing for payment of professional
fees and costs; prescribing procedures for sale and
issuance of obligations; authorizing contracts for
liquidity enhancement; prescribi ng maximum maturity;
providing for exemption from certain state and local
taxes; providing for use of certain interest
earnings; providing for authorized investments;
providing for applicability of statutory procedures
with respect to the Oklahoma Capitol Improvement
Authority; providing for codification; providing an
effective date; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 401 of Title 73, unless there is
created a duplication in numbering, reads as follows:
Req. No. 6892 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
A. The Oklahoma Capitol Improvement Authority is authorized to
issue notes, bonds, or other evidences of obligation in an amount
necessary to generate net proceeds of Two Hundred Seventy Million
Dollars ($270,000,000.00) after providing for costs of issuance,
credit enhancement, reserves, and other associated expenses related
to financing. Net proceeds of the financing will be deposited into
a construction fund to provide for the financing of acquisition of
real property, together with improvements located thereon, and
personal property, to construct buildings and other improvements to
real property and to acquire property for office spa ce and to
provide funding for the construction of facilities located on the
campus of the University of Oklahoma and Oklahoma State University
suitable for research, development and manufacturing of generic
drugs, including but not limited to insulin , with debt retirement
payments to be made as provided in this section. The total net
proceeds shall be allocated by The Oklahoma State Regents for Higher
Education equally between the University of Oklahoma and Oklahoma
State University.
B. The Authority may hold title to the real and personal
property and improvements until such time as any obligations issued
for this purpose are retired or defeased and may lease the real
property and improvements to the Oklahoma State Regents for Higher
Education or the Boa rd of Regents for the University of Oklahoma
with respect to assets located on that campus or the Board of
Req. No. 6892 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Regents for the Oklahoma Agricultural and Mechanical Colleges with
respect to assets located on th e Oklahoma State University campus.
Upon final redemption or defeasance of the obligations created
pursuant to this section, title to the real and personal property
and improvements shall be transferred from the Authority to the
applicable Board of Regents.
C. For the purpose of paying the costs for acqu isition and
construction of the real property and improvements and personal
property and providing funding for the project authorized in
subsection A of this section, and for the purpose authorized in
subsection D of this section, the Authority is hereby a uthorized to
borrow monies on the credit of the income and revenues to be derived
from the leasing of such real and personal property and improvements
and, in anticipation of the collection of such income and revenues,
to issue negotiable obligations in on e or more series. The
Authority is authorized to capitalize interest on the obligations
issued pursuant to this section for a period of time not to exceed
one (1) year from the date of issuance. Excluding any capitalized
interest period, it is the intent of the Legislature to appropriate
to the Oklahoma State Regents for Higher Education sufficient monies
to make rental payments for the purposes of retiring obligations
created pursuant to this section.
D. To the extent funds are available from the procee ds of the
borrowing authorized by subsection C of this section, the Authority
Req. No. 6892 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
shall provide for the payment of professional fees and associated
costs related to the project authorized in subsection A of this
section.
E. The Authority may issue obligations in one or more series
and in conjunction with other issues of Authority. The Authority is
authorized to hire bond counsel, financial consultants, and other
professionals as it may deem necessary to provide for the efficient
sale of the obligations and ma y utilize a portion of the proceeds of
any borrowing to create such reserves as may be deemed necessary and
to pay costs associated with the issuance and administration of such
obligations.
F. The obligations authorized under this section may be sold at
either competitive or negotiated sale, as determined by the
Authority, and in such form and at such prices as may be authorized
by the Authority. The Authority may enter into agreements with such
credit enhancers and liquidity providers as may be determine d
necessary to efficiently market the obligations. The obligations
may mature and have such provisions for redemption as shall be
determined by the Authority, but in no event shall the final
maturity of such obligations occur later than twenty (20) years from
the first principal maturity date.
G. Any interest earnings on funds or accounts created for the
purposes of this section may be utilized as partial payment of the
annual debt service or for the purposes directed by the Authority.
Req. No. 6892 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
H. The obligations issued under this section, the transfer
thereof and the interest earned on such obligations, including any
profit derived from the sale thereof, shall not be subject to
taxation of any kind by the State of Oklahoma, or by any county,
municipality or polit ical subdivision therein.
I. The Authority may direct the investment of all monies in any
funds created in connection with the offering of the obligations
authorized under this section. The investments shall be made in a
manner consistent with the invest ment guidelines of the State
Treasurer. The Authority may place additional restrictions on the
investment of such monies if necessary to enhance the marketability
of the obligations.
J. Insofar as they are not in conflict with the provisions of
this section, the provisions of Section 151 et seq. of Title 73 of
the Oklahoma Statutes shall apply to this section.
SECTION 2. This act shall become effective July 1, 2021.
SECTION 3. It being immediately necessary for the preser vation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
58-1-6892 MAH 01/16/21