Oklahoma 2022 Regular Session

Oklahoma House Bill HB2046 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
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	3	+	ENGR. S. A. TO ENGR. H. B. NO. 2046 Page 1 1
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	28	+	ENGROSSED SENATE AMENDMENT
	29	+	TO
	30	+	ENGROSSED HOUSE
3	31		BILL NO. 2046 By: McCall of the House
4	32
5	33		and
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7	35		Simpson of the Senate
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	38	+
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	40	+	An Act relating to higher education funding
	41	+	districts; *** Section 9B of Article X of the
	42	+	Oklahoma Constitution; *** preparation of map
	43	+	depicting district boundary ; * millage rate; *
	44	+	revenues from being taken *** annexation or
	45	+	deannexation *** districts; providing for
	46	+	codification; and providing an effec tive date.
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	50	+	AMENDMENT NO. 1. Page 1, strike the title to read
	51	+
	52	+	"[ higher education funding districts - Higher
	53	+	Education Institution Local Funding Act -
	54	+	codification ]"
	55	+
	56	+	Passed the Senate the 28th day of April, 2022.
	57	+
	58	+
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	60	+	Presiding Officer of the Senate
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	63	+	Passed the House of Representatives the ____ day of __________,
	64	+	2022.
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	66	+
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	68	+	Presiding Officer of the House
	69	+	of Representatives
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	71	+	ENGR. H. B. NO. 2046 Page 1 1
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	96	+	ENGROSSED HOUSE
	97	+	BILL NO. 2046 By: McCall of the House
	98	+
	99	+	and
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	101	+	Simpson of the Senate
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13	105
14	106		An Act relating to higher education funding
15	107		districts; enacting the Higher Education Institution
16	108		Local Funding Act; making legislative findings;
17	109		providing for construction of act as amendment
18	110		pursuant to Section 9B of Article X of the Oklahoma
19	111		Constitution; providing procedures for certain
20	112		institutions within The Oklahoma State System of
21	113		Higher Education to form distri ct; providing for
22	114		creation of higher education funding district;
23	115		providing for resolution; prohibiting inclusion of
24	116		certain territory within higher education funding
25	117		districts; providing for election regarding formation
26	118		and boundary of district; requiring preparation of
27	119		map depicting district boundary ; requiring county
28	120		assessor to provide information regarding net
29	121		assessed values and exempt property; requiring county
30	122		election board to provide precinct boundary map;
31	123		providing for election procedures; requiri ng payment
32	124		of election costs by institution of higher education;
33	125		authorizing operational millage rate; prescribing
34	126		procedures for issuance of bonds and sinking fund
35	127		millage rate; providing for special elections;
36	128		providing for formation of district after ap proval at
37	129		election; providing for application of certain
38	130		millage rates; imposing duty on county treasurer with
39	131		respect to collection of revenues; prescribing
40	132		procedures for payment of revenues; prescribing
41	133		authorized purposes of expenditures; restricting u se
42	134		of revenues for certain purposes; prohibiti ng certain
43	135		revenues from being taken into consideration for
44	136		purposes of allocation by State Regents; providing
45	137		for expenditure of bond proceeds; providing for
46		-	applicability of Internal Revenue Code of 1986 with ~~ENR. H. B. NO. 2046 Page 2~~
	138	+	applicability of Internal Revenue Code of 1986 with
47	139		respect to certain proceeds; prescribing maxi mum
48	140		maturity of bonds; providing for procedures for sale
49	141		of bonds; prescribing procedures for elections to
50	142		modify millage rates for operational expenditures;
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51	169		prohibiting modification of sinking fund millage
52	170		rates; providing for annexation or deannexation
53	171		procedures with respect to territory of higher
54	172		education funding district; providing for
55	173		applicability of rules regarding annexation or
56	174		deannexation of territory with respect to career
57		-	technology districts; and providing for codification .
	175	+	technology districts; prov iding for codification; and
	176	+	providing an effective date.
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63		-	SUBJECT: Higher education funding districts
64	182
65	183		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
66		-
67	184		SECTION 1. NEW LAW A new section of law to be codified
68	185		in the Oklahoma Statutes as Section 9001 of Title 70, unless there
69	186		is created a duplication in numbering, reads as follows:
70		-
71	187		This act shall be known and may be cited as the "Higher
72	188		Education Institution Local Funding Act".
73		-
74	189		SECTION 2. NEW LAW A new section of law to be codified
75	190		in the Oklahoma Statutes as Section 9002 of Title 70, unless there
76	191		is created a duplication in numbering, reads as follows:
77		-
78	192		The Legislature finds that providing access to additional
79	193		sources of revenue for certain institutions within The Oklahoma
80	194		State System of Higher Ed ucation is in furtherance of a policy for
81	195		making postsecondary education accessible to more persons, providing
82	196		increased educational opportunities, improved income -producing
83	197		potential and other positive outcomes. The provisions of this act
84	198		shall be considered an amendment authorized by subsection H o f
85	199		Section 9B of Article X of the Oklahoma Constitution.
86	200
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87	226		SECTION 3. NEW LAW A new section of law to be codified
88	227		in the Oklahoma Statutes as Section 9003 of Title 70, unless there
89	228		is created a duplication in numbering, reads as follow s:
90		-	ENR. H. B. NO. 2046 Page 3
91	229		An eligible two-year institution within The Oklahoma State
92	230		System of Higher Education that utilizes the procedures established
93	231		by this act shall be considered a higher education funding district
94	232		for purposes of establishing a district, organizing the di strict,
95	233		calling for operational millage rates or sinking fund millage rates
96	234		or both, in the same manner as provided by law pursuant to the
97	235		provisions of Section 9B of Article X of the Oklahoma Constitution
98	236		and the provisions of Title 70 of the Oklahoma Sta tutes which enable
99	237		Section 9B of Article X.
100		-
101	238		SECTION 4. NEW LAW A new section of law to be codified
102	239		in the Oklahoma Statutes as Section 9004 of Title 70, unless there
103	240		is created a duplica tion in numbering, reads as follows:
104		-
105	241		A. The board of regents of an eligible two -year college within
106	242		The Oklahoma State System of Higher Education may adopt a resolution
107	243		to cause the college to be included, for purposes of this act,
108	244		within a higher educati on funding district. The resolution shall
109	245		require the approval of a majority of the members of the board of
110	246		regents.
111		-
112	247		B. No higher education funding district shall be allowed to
113	248		include the territory or establish any levy of any career technology
114	249		district, including any existing college career techno logy district,
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115	276		that has been formed prior to the proposed formation of a higher
116	277		education funding district.
117		-
118	278		SECTION 5. NEW LAW A new section of law to be codified
119	279		in the Oklahoma Statute s as Section 9005 of Title 70, unless there
120	280		is created a duplication in numbering, reads as follows:
121		-
122	281		A. The board of regents of the eligible institution shall cause
123	282		a map to be prepared depicting the boundary of the proposed district
124	283		with the assets const ituting the main campus of the institution to
125	284		be located at some point within such boundary.
126		-
127	285		B. The county assessor of the county or counties within which
128	286		the district is proposed to be located shall provide information to
129	287		the board of regents regarding t he net assessed value of all taxable
130	288		property within the boundary of the proposed district, including the
131	289		identification of any real property exempt from taxation pursuant to
132	290		the provisions of Section 6 of Article X of the Oklahoma
133	291		Constitution, any other provision of the Oklahoma Constitution or
134	292		the provisions of Section 2887 of Title 68 of the Oklahoma Statutes.
135		-	ENR. H. B. NO. 2046 Page 4
136	293		SECTION 6. NEW LAW A new section of law to be codified
137	294		in the Oklahoma Statutes as Section 9006 of Title 70, unless there
138	295		is created a duplication in numbering, reads as follows:
139		-
140	296		The county election board of the county or counties within which
141	297		the proposed higher education funding district is to be located
142	298		shall provide a precinct boundary map of the proposed area to the
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143	325		board of regents which has approved the resolutio n to call for a
144	326		vote to form and organize a higher education funding district.
145		-
146	327		SECTION 7. NEW LAW A new section of law to be codified
147	328		in the Oklahoma Statutes as Section 9007 of Title 70 , unless there
148	329		is created a duplication in num bering, reads as follows:
149		-
150	330		A. An election may be conducted in November of any even -
151	331		numbered year in order to determine whether the proposed higher
152	332		education funding district shall be formed and its initial
153	333		operational millage rate, which shall not exceed t he number of mills
154	334		as prescribed by Section 9B of Article X of the Oklahoma
155	335		Constitution. If the certified election results show that a sixty
156	336		percent (60%) majority of all votes cast are in favor of the
157	337		creation of the higher education funding district, t he county
158	338		election board shall declare the district to have been established
159	339		and, if an initial operational millage was submitted to the voters
160	340		as part of the same ballot measure for creation of the district,
161	341		shall also declare such millage rate to be esta blished for the
162	342		district.
163		-
164	343		B. If there are to be any bonds or other evidence of
165	344		indebtedness issued by the district contemporaneously approved at
166	345		the election calling for the formation of the district or at any
167	346		subsequent election called for the purposes o f approving such bonds
168	347		or other evidence of indebtedness, such information as may be
169	348		required for the approval of a sinking fund millage rate as provided
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170	375		by law shall also be included on the ballot, but the pri ncipal
171	376		amount of debt to be incurred, the proj ects to be constructed or
172	377		improved or acquired with the proceeds of the bonds, the maximum
173	378		maturity of the bonds and other information shall be included as
174	379		part of the ballot title if that question is submitted to the
175	380		voters.
176		-
177	381		C. A special election may be conducted in the manner prescribed
178	382		by Section 12-116 of Title 26 of the Oklahoma Statutes if the
179	383		question of the creation of the higher education funding district is
180		-	to be submitted at any other time than a General Electio n. ENR. H. B. NO. 2046 Page 5
181		-
	384	+	to be submitted at any other time than a Gen eral Election.
182	385		D. All costs for elections rel ated to higher education funding
183	386		districts shall be paid for by the institution of higher education
184	387		for the benefit of which the district is being created or, after
185	388		approval of such district, for the benefit of which the district was
186	389		created.
187		-
188	390		SECTION 8. NEW LAW A new section of law to be codified
189	391		in the Oklahoma Statutes as Section 9008 of Title 70, unless there
190	392		is created a duplication in numbering, reads as follows:
191		-
192	393		If approved by sixty percent (60%) or more of the voters at the
193	394		election provided for by Section 7 of this act, there shall be
194	395		created a higher education funding district which shall be governed
195	396		by the board of regents for the institution within The Oklahoma
196	397		State System of Higher Education that has managerial control fo r the
197	398		institution for the benefit of which the district has been created.
198	399
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199	425		SECTION 9. NEW LAW A new section of law to be codified
200	426		in the Oklahoma Statutes as Section 9009 of Title 70, unl ess there
201	427		is created a duplication in numberin g, reads as follows:
202		-
203	428		The millage levied by a higher education funding district shall
204	429		be applied to the net assessed value of all taxable property located
205	430		within the district each year in the same manner as prov ided by law
206	431		for millage imposed by other ad va lorem taxing jurisdictions. The
207	432		county treasurer shall include the tax due resulting from such
208	433		millage in the same manner as provided by law for other ad valorem
209	434		taxes.
210		-
211	435		SECTION 10. NEW LAW A new section of law to be codified
212	436		in the Oklahoma Statutes as Section 9010 of Title 70, unless there
213	437		is created a duplication in numbering, reads as follows:
214		-
215	438		A. All revenues derived from the net assessed value of property
216	439		located within the boundary of the higher education funding district
217	440		shall be paid by the county treasurer to the general fund of the
218	441		eligible institution or to such fund as may be specified by the
219	442		board of regents for the institution, and the board of regents for
220	443		the institution shall be authorized to expend such revenues in
221	444		support of the operational expenses of the institution, including,
222	445		without limitation, employee salaries, employee benefits, including
223	446		retirement benefits and health care benefits, federal or state
224	447		income or withholding taxes or related payroll taxes, utilit y costs,
225		-	insurance expenses, books, electronic instructional materials, ENR. H. B. NO. 2046 Page 6
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226	475		supplies for classrooms, upkeep of grounds and landscaping,
227	476		maintenance of physical plants such as heating and air conditioning
228	477		units, acquisition and maintenance of motor vehicles and such other
229	478		expenditures as may be approved by the board of regents pursuant to
230	479		such standards and procedures as the board of regents may establish.
231		-
232	480		B. None of the revenues derived from any millage rate impose d
233	481		within the boundary of a higher education fu nding district may be
234	482		used by an institution within The Oklahoma State System of Higher
235	483		Education to compete with the services or programs offered by any
236	484		existing career technology district which is either cont iguous to
237	485		the boundary of the higher education funding district or located in
238	486		sufficiently close proximity to the higher education funding
239	487		district that the programs or services offered by such career
240	488		technology district would be duplicated or adversely im pacted by the
241	489		expenditure of funds by the inst itution which causes the formation
242	490		of the higher education funding district pursuant to the provisions
243	491		of this act.
244		-
245	492		C. The Oklahoma State Regents for Higher Education shall not
246	493		take into consideration revenues derived from any millage levy
247	494		imposed pursuant to the provisions of the Higher Education
248	495		Institution Local Funding Act when allocating state -appropriated
249	496		funds for support of the institution which established a higher
250	497		education funding district pursuant t o the provisions of this act.
251	498
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252	524		SECTION 11. NEW LAW A new section of law to be codified
253	525		in the Oklahoma Statutes as Section 9011 of Title 70, unless there
254	526		is created a duplication in numbering, reads as follows:
255		-
256	527		A. Proceeds from bonds or other evidence of indebtedness issued
257	528		by the higher education funding district may be expended on such
258	529		assets as authorized by the provisions of the Internal Revenue Code
259	530		of 1986, as amended, or other provisions of federal or state law
260	531		based on whether the interest income paid to bondholders is ex empt
261	532		from federal or state income tax.
262		-
263	533		B. Final maturity of any obligation issued by the higher
264	534		education funding district shall not exceed twenty -five (25) years.
265		-
266	535		C. Bonds or other evidence of indebtedness i ssued by a higher
267	536		education funding district m ay be sold using such procedures as may
268	537		be established by the board of regents of the institution for whose
269	538		benefit the higher education funding district has been created.
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271	539		SECTION 12. NEW LAW A new section of law to be codified
272	540		in the Oklahoma Statutes as Section 9012 of Title 70, unless there
273	541		is created a duplication in numbering, reads as follows:
274		-
275	542		After the formation of a higher education funding district
276	543		authorized by this act, the ques tion of modification of an
277	544		operational millage rate may be submitted to the voters of the
278	545		district by resolution of the board of regents of the institution
279	546		within The Oklahoma State System of Higher Education for the benefit
280	547		of which the district has been created or upon a petition signed by
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281	574		ten percent (10%) or more of the eligible voters residing within the
282	575		boundary of a district. No millage rate in excess of that provided
283	576		for in Section 9B of Article X of the Oklahoma Constitution may be
284	577		approved and no sinking fund millage rate for repayment of bo nds or
285	578		other evidence of indebtedness may be modified pursuant to the
286	579		provisions of this section. The question of modification of an
287	580		operational millage rate may be submitted at either a General
288	581		Election or a special election with notice of the question t o be
289	582		provided in advance of the election date in the same manner as
290	583		provided by law for similar questions pursuant to Section 9B of
291	584		Article X of the Oklahoma Constitution or enabling legislation
292	585		enacted pursuant to authority of that section.
293		-
294	586		SECTION 13. NEW LAW A new section of law to be codified
295	587		in the Oklahoma Statutes as Section 9013 of Title 70, unless there
296	588		is created a duplication in numbering, reads as follows:
297		-
298	589		After the formation o f a higher education funding district
299	590		authorized by this act, the question of annexation or deannexation
300	591		of territory comprising the district may be submitted either by
301	592		resolution of the board of regents for the institution within The
302	593		Oklahoma State System of Higher Education for whose benefit the
303	594		district was created or by a petition signed by ten percent (10%) or
304	595		more of the eligible voters of the district. The procedures for
305	596		conducting the vote and implementing any changes in the boundary of
306	597		the higher education funding district shall be the same a s those
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	609	+	11
	610	+	12
	611	+	13
	612	+	14
	613	+	15
	614	+	16
	615	+	17
	616	+	18
	617	+	19
	618	+	20
	619	+	21
	620	+	22
	621	+	23
	622	+	24
	623	+
307	624		prescribed by Section 9B of Article X of the Oklahoma Constitution
308	625		or enabling legislation enacted or administrative rules adopted
309	626		pursuant thereto.
310		-	~~ENR~~. ~~H. B. NO. 2046 Page 8~~
311		-	Passed the House of R epresentatives the ~~19th~~ day of ~~May~~, ~~2022~~.
	627	+	SECTION 14. This act shall become eff ective November 1, 2021.
	628	+	Passed the House of R epresentatives the 9th day of March, 2021.
312	629
313	630
314	631
315	632
316	633		Presiding Officer of the House
317	634		of Representatives
318	635
319	636
320		-	Passed the Senate the ~~20th~~ day of ~~May~~, ~~2022~~.
	637	+	Passed the Senate the ___ day of __________, 2021.
321	638
322	639
323	640
324	641
325	642		Presiding Officer of the Senate
326	643
327	644
328	645
329		-	OFFICE OF THE GOVERNOR
330		-	Received by the Office of the Governor this ____________________
331		-	day of ___________________, 20_______, at _______ o'clock _______ M.
332		-	By: _________________________________
333		-	Approved by the Governor of the State of Oklahoma this _____ ____
334		-	day of ___________________, 20_______, at _______ o'clock _______ M.
335		-
336		-
337		-	_________________________________
338		-	Governor of the State of Oklahoma
339		-
340		-	OFFICE OF THE SECRETARY OF STATE
341		-	Received by the Office of the Secretary of State this __________
342		-	day of ___________________, 20_______, at _______ o'clock _______ M.
343		-	By: _________________________________
344		-