ENGR. H. B. NO. 2046 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
ENGROSSED HOUSE
BILL NO. 2046 By: McCall of the House
and
Simpson of the Senate
An Act relating to higher education funding
districts; enacting the Higher Education Institution
Local Funding Act; making legislative findings;
providing for construction of act as amendment
pursuant to Section 9B of Article X of the Oklahoma
Constitution; providing procedures for certain
institutions within The Oklahoma State System of
Higher Education to form district; providing for
creation of higher education funding district;
providing for resolution; prohibiting inclusion of
certain territory within higher education funding
districts; providing for election regarding formation
and boundary of district; requiring preparation of
map depicting district boundary ; requiring county
assessor to provide information regarding net
assessed values and exempt property; requiring county
election board to provide precinct boundary map;
providing for election procedures; requiring payment
of election costs by institution of higher education;
authorizing operational millage rate; prescribing
procedures for issuance of bonds and sinking fund
millage rate; providing for special elections;
providing for formation of district after approval at
election; providing for application of certain
millage rates; imposing duty on county treasurer with
respect to collection of revenues; prescribing
procedures for payment of revenues; prescribing
authorized purposes of expenditures; restricting use
of revenues for certain purposes; prohibiti ng certain
revenues from being taken into consideration for
purposes of allocation by State Regents; providing
for expenditure of bond proceeds; providing for
applicability of Internal Revenue Code of 1986 with
respect to certain proceeds; prescribing maxi mum
maturity of bonds; providing for procedures for sale
of bonds; prescribing procedures for elections to
modify millage rates for operational expenditures;
ENGR. H. B. NO. 2046 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
prohibiting modification of sinking fund millage
rates; providing for annexation or deannexation
procedures with respect to territory of higher
education funding district; providing for
applicability of rules regarding annexation or
deannexation of territory with respect to career
technology districts; providing for codification; and
providing an effective date.
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 9001 of Title 70, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Higher
Education Institution Local Funding Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9002 of Title 70, unless there
is created a duplication in numbering, reads as follows:
The Legislature finds that providing access to additional
sources of revenue for certain institutions within The Oklahoma
State System of Higher Education is in furtherance of a policy for
making postsecondary education accessible to more persons, providing
increased educational opportunities, improved income -producing
potential and other positive outcomes. The provisions of this act
shall be considered an amendment authorized by subsection H o f
Section 9B of Article X of the Oklahoma Constitution.
ENGR. H. B. NO. 2046 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
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9003 of Title 70, unless there
is created a duplication in numbering, reads as follow s:
An eligible two-year institution within The Oklahoma State
System of Higher Education that utilizes the procedures established
by this act shall be considered a higher education funding district
for purposes of establishing a district, organizing the di strict,
calling for operational millage rates or sinking fund millage rates
or both, in the same manner as provided by law pursuant to the
provisions of Section 9B of Article X of the Oklahoma Constitution
and the provisions of Title 70 of the Oklahoma Sta tutes which enable
Section 9B of Article X.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9004 of Title 70, unless there
is created a duplication in numbering, reads as follows:
A. The board of regents of an eligible two -year college within
The Oklahoma State System of Higher Education may adopt a resolution
to cause the college to be included, for purposes of this act,
within a higher education funding district. The resolution shall
require the approval of a majority of the members of the board of
regents.
B. No higher education funding district shall be allowed to
include the territory or establish any levy of any career technology
district, including any existing college career techno logy district,
ENGR. H. B. NO. 2046 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
that has been formed prior to the proposed formation of a higher
education funding district.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9005 of Title 70, unless there
is created a duplication in numbering, reads as follows:
A. The board of regents of the eligible institution shall cause
a map to be prepared depicting the boundary of the proposed district
with the assets constituting the main campus of the institution to
be located at some point within such boundary.
B. The county assessor of the county or counties within which
the district is proposed to be located shall provide information to
the board of regents regarding the net assessed value of all taxable
property within the boundary of the proposed district, including the
identification of any real property exempt from taxation pursuant to
the provisions of Section 6 of Article X of the Oklahoma
Constitution, any other provision of the Oklahoma Constitution or
the provisions of Section 2887 of Title 68 of the Oklahoma Statutes.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9006 of Title 70, unless there
is created a duplication in numbering, reads as follows:
The county election board of the county or counties within which
the proposed higher education funding district is to be located
shall provide a precinct boundary map of the proposed area to the
ENGR. H. B. NO. 2046 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
board of regents which has approved the resolutio n to call for a
vote to form and organize a higher education funding district.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9007 of Title 70, unless there
is created a duplication in num bering, reads as follows:
A. An election may be conducted in November of any even -
numbered year in order to determine whether the proposed higher
education funding district shall be formed and its initial
operational millage rate, which shall not exceed t he number of mills
as prescribed by Section 9B of Article X of the Oklahoma
Constitution. If the certified election results show that a sixty
percent (60%) majority of all votes cast are in favor of the
creation of the higher education funding district, t he county
election board shall declare the district to have been established
and, if an initial operational millage was submitted to the voters
as part of the same ballot measure for creation of the district,
shall also declare such millage rate to be esta blished for the
district.
B. If there are to be any bonds or other evidence of
indebtedness issued by the district contemporaneously approved at
the election calling for the formation of the district or at any
subsequent election called for the purposes o f approving such bonds
or other evidence of indebtedness, such information as may be
required for the approval of a sinking fund millage rate as provided
ENGR. H. B. NO. 2046 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
by law shall also be included on the ballot, but the principal
amount of debt to be incurred, the proj ects to be constructed or
improved or acquired with the proceeds of the bonds, the maximum
maturity of the bonds and other information shall be included as
part of the ballot title if that question is submitted to the
voters.
C. A special election may be conducted in the manner prescribed
by Section 12-116 of Title 26 of the Oklahoma Statutes if the
question of the creation of the higher education funding district is
to be submitted at any other time than a General Election.
D. All costs for elections rel ated to higher education funding
districts shall be paid for by the institution of higher education
for the benefit of which the district is being created or, after
approval of such district, for the benefit of which the district was
created.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9008 of Title 70, unless there
is created a duplication in numbering, reads as follows:
If approved by sixty percent (60%) or more of the voters at the
election provided for by Section 7 of this act, there shall be
created a higher education funding district which shall be governed
by the board of regents for the institution within The Oklahoma
State System of Higher Education that has managerial control fo r the
institution for the benefit of which the district has been created.
ENGR. H. B. NO. 2046 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9009 of Title 70, unless there
is created a duplication in numberin g, reads as follows:
The millage levied by a higher education funding district shall
be applied to the net assessed value of all taxable property located
within the district each year in the same manner as provided by law
for millage imposed by other ad va lorem taxing jurisdictions. The
county treasurer shall include the tax due resulting from such
millage in the same manner as provided by law for other ad valorem
taxes.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9010 of Title 70, unless there
is created a duplication in numbering, reads as follows:
A. All revenues derived from the net assessed value of property
located within the boundary of the higher education funding district
shall be paid by the county treasurer to the general fund of the
eligible institution or to such fund as may be specified by the
board of regents for the institution, and the board of regents for
the institution shall be authorized to expend such revenues in
support of the operational expenses of the institution, including,
without limitation, employee salaries, employee benefits, including
retirement benefits and health care benefits, federal or state
income or withholding taxes or related payroll taxes, utilit y costs,
insurance expenses, books, electronic instructional materials,
ENGR. H. B. NO. 2046 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
supplies for classrooms, upkeep of grounds and landscaping,
maintenance of physical plants such as heating and air conditioning
units, acquisition and maintenance of motor vehicles and such other
expenditures as may be approved by the board of regents pursuant to
such standards and procedures as the board of regents may establish.
B. None of the revenues derived from any millage rate imposed
within the boundary of a higher education fu nding district may be
used by an institution within The Oklahoma State System of Higher
Education to compete with the services or programs offered by any
existing career technology district which is either contiguous to
the boundary of the higher education funding district or located in
sufficiently close proximity to the higher education funding
district that the programs or services offered by such career
technology district would be duplicated or adversely impacted by the
expenditure of funds by the inst itution which causes the formation
of the higher education funding district pursuant to the provisions
of this act.
C. The Oklahoma State Regents for Higher Education shall not
take into consideration revenues derived from any millage levy
imposed pursuant to the provisions of the Higher Education
Institution Local Funding Act when allocating state -appropriated
funds for support of the institution which established a higher
education funding district pursuant to the provisions of this act.
ENGR. H. B. NO. 2046 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
SECTION 11. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9011 of Title 70, unless there
is created a duplication in numbering, reads as follows:
A. Proceeds from bonds or other evidence of indebtedness issued
by the higher education funding district may be expended on such
assets as authorized by the provisions of the Internal Revenue Code
of 1986, as amended, or other provisions of federal or state law
based on whether the interest income paid to bondholders is ex empt
from federal or state income tax.
B. Final maturity of any obligation issued by the higher
education funding district shall not exceed twenty -five (25) years.
C. Bonds or other evidence of indebtedness issued by a higher
education funding district m ay be sold using such procedures as may
be established by the board of regents of the institution for whose
benefit the higher education funding district has been created.
SECTION 12. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9012 of Title 70, unless there
is created a duplication in numbering, reads as follows:
After the formation of a higher education funding district
authorized by this act, the question of modification of an
operational millage rate may be submitted to the voters of the
district by resolution of the board of regents of the institution
within The Oklahoma State System of Higher Education for the benefit
of which the district has been created or upon a petition signed by
ENGR. H. B. NO. 2046 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
ten percent (10%) or more of the eligible voters residing within the
boundary of a district. No millage rate in excess of that provided
for in Section 9B of Article X of the Oklahoma Constitution may be
approved and no sinking fund millage rate for repayment of bo nds or
other evidence of indebtedness may be modified pursuant to the
provisions of this section. The question of modification of an
operational millage rate may be submitted at either a General
Election or a special election with notice of the question t o be
provided in advance of the election date in the same manner as
provided by law for similar questions pursuant to Section 9B of
Article X of the Oklahoma Constitution or enabling legislation
enacted pursuant to authority of that section.
SECTION 13. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9013 of Title 70, unless there
is created a duplication in numbering, reads as follows:
After the formation of a higher education funding district
authorized by this act, the question of annexation or deannexation
of territory comprising the district may be submitted either by
resolution of the board of regents for the institution within The
Oklahoma State System of Higher Education for whose benefit the
district was created or by a petition signed by ten percent (10%) or
more of the eligible voters of the district. The procedures for
conducting the vote and implementing any changes in the boundary of
the higher education funding district shall be the same a s those
ENGR. H. B. NO. 2046 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
prescribed by Section 9B of Article X of the Oklahoma Constitution
or enabling legislation enacted or administrative rules adopted
pursuant thereto.
SECTION 14. This act shall become effective November 1, 2021.
Passed the House of R epresentatives the 9th day of March, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2021.
Presiding Officer of the Senate