Oklahoma 2022 Regular Session

Oklahoma House Bill HB2601 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	HB2601 HFLR Page 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31	28		STATE OF OKLAHOMA
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33	30		1st Session of the 58th Legislature (2021)
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35		-	COMMITTEE SUBSTITUTE
36		-	FOR
37		-	HOUSE BILL NO. 2601 By: Roberts (Sean)
	32	+	HOUSE BILL 2601 By: Roberts (Sean)
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43		-	~~COMMITTEE SUBSTITUTE~~
	38	+	AS INTRODUCED
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45		-	An Act relating to public trusts; amending 60 O.S.
46		-	2011, Section 176, as last amended by Section 1,
47		-	Chapter 405, O.S.L. 2019 (60 O.S. Supp. 2020, Section
48		-	176), which relates to formation of certain public
49		-	trusts; modifying provisions related to appointment
50		-	by board of county commissioners; providing for
51		-	method of selection; restricting appointment of
52		-	certain county commissioners based upon trust
53		-	indenture provisions; and declaring an emergency.
54		-
	40	+	An Act relating to counties and county officers;
	41	+	creating the County Development Act of 2021;
	42	+	providing for noncodification; and providing an
	43	+	effective date.
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59	48		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
60		-	SECTION 1. AMENDATORY 60 O.S. 2011, Section 176, as last
61		-	amended by Section 1, Chapter 405, O.S.L. 2019 (60 O.S. Supp. 2020,
62		-	Section 176), is amended to read as follows:
63		-	Section 176. A. Express trusts may be created to issue
64		-	obligations, enter into financing arrangements incl uding, but not
65		-	limited to, lease-leaseback, sale-leaseback, interest rate swaps and
66		-	other similar transactions and to provide funds for the furtherance
67		-	and accomplishment of any authorized and proper public function or
	49	+	SECTION 1. NEW LAW A new section of law not to be
	50	+	codified in the Oklahoma Statutes reads as follows:
	51	+	This act shall be known and may be c ited as the "County
	52	+	Development Act of 2021".
	53	+	SECTION 2. This act shall become effective November 1, 2021.
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69		-	HB2601 HFLR Page 2
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95		-	purpose of the state or of any county or municipality or any and all
96		-	combinations thereof, in real or personal property, or either or
97		-	both, or in any estate or interest in either or both, with the
98		-	state, or any county or municipality or any and all combinations
99		-	thereof, as the beneficiary the reof by:
100		-	1. The express approval of the Legislature and the Governor if
101		-	the State of Oklahoma is the beneficiary;
102		-	2. The express approval of two -thirds (2/3) of the membership
103		-	of the governing body of the beneficiary if a county is a
104		-	beneficiary;
105		-	3. The express approval of two -thirds (2/3) of the membership
106		-	of the governing body of the beneficiary if a municipality is a
107		-	beneficiary; or
108		-	4. The express approval of two -thirds (2/3) of the membership
109		-	of the governing body of each beneficiary in the event a trust has
110		-	more than one beneficiary; provided, that no funds of a beneficiary
111		-	derived from sources other than the trust property, or the operation
112		-	thereof, shall be charged with or expended for the execution of the
113		-	trust, except by express action of the le gislative authority of the
114		-	beneficiary prior to the charging or expending of the funds. The
115		-	officers or any other governmental agencies or authorities having
116		-	the custody, management, or control of any property, real or
117		-	personal or mixed, of the beneficiar y of the trust, or of a proposed
118		-	trust, which property shall be needful for the execution of the
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146		-	trust purposes, are authorized and empowered to lease the property
147		-	for those purposes, after the acceptance of the beneficial interest
148		-	therein by the beneficia ry as hereinafter provided.
149		-	B. Any trust created pursuant to the provisions of this
150		-	section, in whole or in part, may engage in activities outside of
151		-	the geographic boundaries of its beneficiary, so long as the
152		-	activity provides a benefit to a large class of the public within
153		-	the beneficiary's geographic area or lessens the burdens of
154		-	government of the beneficiary and which does not solely provide a
155		-	benefit by generating administrative fees.
156		-	C. A municipality may convey title to real property which is
157		-	used for an airport to the trustees of an industrial development
158		-	authority trust whose beneficiary is the municipality. The
159		-	industrial development authority trust must already have the
160		-	custody, management, or control of the real property. The
161		-	conveyance must be approved by a majority of the governing body of
162		-	the municipality. A conveyance pursuant to this section may be made
163		-	only for the sole purpose of allowing the authority to sell the
164		-	property for fair market value when the property is to be used for
165		-	industrial development purposes. Conveyances made pursuant to this
166		-	subsection shall be made subject to any existing reversionary
167		-	interest or other restrictions burdening the property and subject to
168		-	any reversionary interest or other restriction considered pr udent by
169		-	the municipality.
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197		-	D. The trustees of a public trust having the State of Oklahoma
198		-	as beneficiary shall make and adopt bylaws for the due and orderly
199		-	administration and regulation of the affairs of the public trust.
200		-	All bylaws of a public trust ha ving the State of Oklahoma as
201		-	beneficiary shall be submitted in writing to the Governor of the
202		-	State of Oklahoma. The Governor must approve the proposed bylaws
203		-	before they take effect.
204		-	E. No public trust in which the State of Oklahoma is the
205		-	beneficiary may be amended without a two -thirds (2/3) vote of
206		-	approval of the trustees of the trust; provided, that any amendment
207		-	is subject to the approval of the Governor of the State of Oklahoma.
208		-	Any amendments shall be sent to the Governor within fifteen (15)
209		-	days of their adoption.
210		-	F. No trust in which a county or municipality is the
211		-	beneficiary shall hereafter create an indebtedness or obligation
212		-	until the indebtedness or obligation has been approved by a two -
213		-	thirds (2/3) vote of the governing body of the benef iciary. In the
214		-	event a trust has more than one beneficiary, as authorized by this
215		-	section, the trust shall not incur an indebtedness or obligation
216		-	until the indebtedness or obligation has been approved by a two -
217		-	thirds (2/3) vote of the governing body of t wo-thirds (2/3) of the
218		-	beneficiaries of the trust. Provided, however, a municipality with
219		-	a governing body consisting of fewer than seven (7) members shall be
220		-	required to approve the creation of an indebtedness or obligation
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222		-	HB2601 HFLR Page 5
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248		-	under this subsection by a thr ee-fifths (3/5) vote of the governing
249		-	body.
250		-	G. All bonds described in subsection F of this section, after
251		-	December 1, 1976, except bonds sold to the federal government or any
252		-	agency thereof or to any agency of the State of Oklahoma, shall be
253		-	awarded to the lowest and best bidder based upon open competitive
254		-	public offering, advertised at least once a week for two (2)
255		-	successive weeks in a newspaper of general circulation in the county
256		-	where the principal office of the trust is located prior to the date
257		-	on which bids are received and opened; provided, competitive bidding
258		-	may be waived on bond issues with the approval of three -fourths
259		-	(3/4) of the trustees, and a three -fourths (3/4) vote of the
260		-	governing body of the beneficiary, unless the beneficiary is a
261		-	county in which case a two -thirds (2/3) vote of the members of the
262		-	governing body shall be required, or three -fourths (3/4) vote of the
263		-	governing bodies of each of the beneficiaries of the trust, unless
264		-	one of the beneficiaries is a county in which case a two -thirds
265		-	(2/3) vote of the members of the governing body of such county shall
266		-	be required. No bonds shall be sold for less than par value, except
267		-	upon approval of three -fourths (3/4) of the trustees, unless the
268		-	beneficiary is a county in which case a two -thirds (2/3) vote of the
269		-	members of the governing body shall be required. In no event shall
270		-	bonds be sold for less than sixty -five percent (65%) of par value;
271		-	provided, however, in no event shall the original purchaser from the
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273		-	HB2601 HFLR Page 6
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299		-	issuer of any bonds issued b y any public trust for any purpose
300		-	receive directly or indirectly any fees, compensation, or other
301		-	remuneration in excess of four percent (4%) of the price paid for
302		-	the bonds by the purchaser of the bonds from the original purchaser;
303		-	and further provided, that the average coupon rate thereon shall in
304		-	no event exceed fourteen percent (14%) per annum. No public trust
305		-	shall sell bonds for less than ninety -six percent (96%) of par value
306		-	until the public trust has received from the underwriter or
307		-	financial advisor or, in the absence of an underwriter or financial
308		-	advisor, the initial purchaser of the bonds, an estimated
309		-	alternative financing structure or structures showing the estimated
310		-	total interest and principal cost of each alternative. At least one
311		-	alternative financing structure shall include bonds sold to the
312		-	public at par. Any estimates shall be considered a public record of
313		-	the public trust. Bonds, notes or other evidences of indebtedness
314		-	issued by any public trust shall be eligible for purchase by an y
315		-	state banking association or corporation subject to such limitations
316		-	as to investment quality as may be imposed by regulations, rules or
317		-	rulings of the State Banking Commissioner.
318		-	H. Public trusts created pursuant to this section shall file
319		-	annually, with their respective beneficiaries, copies of financial
320		-	documents and reports sufficient to demonstrate the fiscal activity
321		-	of such trust, including, but not limited to, budgets, financial
322		-	reports, bond indentures, and audits. Amendments to the adopted
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350		-	budget shall be approved by the trustees of the public trust and
351		-	recorded as such in the official minutes of such trust.
352		-	I. Contracts for construction, labor, equipment, material or
353		-	repairs in excess of Fifty Thousand Dollars ($50,000.00) shall be
354		-	awarded by public trusts to the lowest and best competitive bidder,
355		-	pursuant to public invitation to bid, which shall be published in
356		-	the manner provided in subsection G of this section; the
357		-	advertisements shall appear in the county where the work, or the
358		-	major part of it, is to be done, or the equipment or materials are
359		-	to be delivered, or the services are to be rendered; provided,
360		-	however, should the trustee or the trustees find that an immediate
361		-	emergency exists, which findings shall be entered in the journal of
362		-	the trust proceedings, by reason of which an immediate outlay of
363		-	trust funds in an amount exceeding Seventy -five Thousand Dollars
364		-	($75,000.00) is necessary in order to avoid loss of life,
365		-	substantial damage to property, or damage to the public peace or
366		-	safety, then the contracts may be made and entered into without
367		-	public notice or competitive bids; provided that the provisions of
368		-	this subsection shall not apply to contracts of industrial and
369		-	cultural trusts. Notwithstanding the provisions of this subsectio n,
370		-	equipment or materials may be purchased by a public trust directly
371		-	from any contract duly awarded by this state or any state agency
372		-	under The Oklahoma Central Purchasing Act, or from any contract duly
373		-	awarded by a governmental entity which is the benefi ciary of the
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375		-	HB2601 HFLR Page 8
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401		-	public trust. Furthermore, any construction contract issued under
402		-	this section may provide for a local bid preference of not more than
403		-	five percent (5%) of the bid price if the public trust governing
404		-	body determines that there is an economic benefit to the local area
405		-	or economy. Provided, however, the local bidder or contractor must
406		-	agree to perform the contract for the same price and terms as the
407		-	bid proposed by the nonlocal bidder or contractor. Any bid
408		-	preference granted hereunder must be in accordance with an
409		-	established policy adopted by the governing body of the trust to
410		-	clearly demonstrate the economic benefit to the local area or
411		-	economy. Provided, further, no local bid preference shall be
412		-	granted unless the local bidding entity is t he second lowest
413		-	qualified bid on the contract. The bid specifications shall clearly
414		-	state that the bid is subject to a local bidder preference law. For
415		-	purposes of this section, "local bid" means the bidding person is
416		-	authorized to transact business in this state and maintains a bona
417		-	fide establishment for transacting such business within this state.
418		-	This provision does not apply to any construction contract for which
419		-	federal funds are available for expenditure when its provisions may
420		-	be in conflict with federal law or regulation.
421		-	J. Any public trust created pursuant to the provisions of this
422		-	section shall have the power to acquire lands by use of eminent
423		-	domain in the same manner and according to the procedures provided
424		-	for in Sections 51 through 65 of Title 66 of the Oklahoma Statutes.
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452		-	Any exercise of the power of eminent domain by a public trust
453		-	pursuant to the provisions of this section shall be limited to the
454		-	furtherance of public purpose projects involving revenue -producing
455		-	utility projects of whi ch the public trust retains ownership;
456		-	provided, for public trusts in which the State of Oklahoma is the
457		-	beneficiary the exercise of the power of eminent domain may also be
458		-	used for public purpose projects involving air transportation.
459		-	Revenue-producing utility projects shall be limited to projects for
460		-	the transportation, delivery, treatment, or furnishing of water for
461		-	domestic purposes or for power, including, but not limited to, the
462		-	construction of lakes, pipelines, and water treatment plants or for
463		-	projects for rail transportation. Any public trust formed pursuant
464		-	to this section which has a county as its beneficiary shall have the
465		-	power to acquire, by use of eminent domain, any lands located either
466		-	inside the county, or contiguous to the county pursuan t to the
467		-	limitations imposed pursuant to this section.
468		-	K. Provisions of this section shall not apply to entities
469		-	created under Sections 1324.1 through 1324.26 of Title 82 of the
470		-	Oklahoma Statutes.
471		-	L. Any trust created under Section 176 et seq. of this ti tle,
472		-	in whole or in part, to operate, administer or oversee any county
473		-	jail facility shall consist of not less than five members and
474		-	include a county commissioner and the county sheriff, or their
475		-	designee, and one member appointed by each of the county
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503		-	commissioners at least three members chosen at large by the board of
504		-	county commissioners . The appointed members shall not be elected
505		-	officials. Notwithstanding any provision to the contrary in the
506		-	trust indenture, no individual county commissioner shall ha ve the
507		-	right to any appointment to the trust.
508		-	SECTION 2. It being immediately necessary for the preservation
509		-	of the public peace, health or safety, an emergency is hereby
510		-	declared to exist, by reason whereof this act shall take effect and
511		-	be in full force from and after its passage and approval.
512		-
513		-	COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT, dated
514		-	02/25/2021 - DO PASS, As Amended.
	55	+	58-1-7084 AMM 01/10/21