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STATE OF OKLAHOMA
1st Session of the 58th Le gislature (2021)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2896 By: Wallace and Hilbert of the
House
and
Thompson and Hall of the
Senate
COMMITTEE SUBSTITUTE
An Act relating to transportation infras tructure
finance; authorizing issuance of cer tain obligations
by the Oklahoma Capitol Improvement Authority;
authorizing the Oklahoma Capitol Improvement
Authority to enter into loan agreements with the
United States Department of Transportation; stating
amount of net proceeds; imposing certain restr ictions
related to timing of issuance; clarifying the
treatment of capitalized interest; requiring certain
deposit of proceeds; providing for use of net
proceeds; specifying authorized use of proceeds;
incorporating content of Construction Work Plan;
providing for priority of expenditures; providing for
disposition of certain earnings; authorizing
agreements between the Oklahoma Capitol Improvement
Authority and the Transportation Commission or the
Department of Transportation; specifying content of
agreements; providing for effect of redemption or
defeasance; authorizing borrowing of monies and
issuance of negotiable obligations; authorizing
issuance in series; sta ting legislative intent with
respect to appropria tions to the Department of
Transportation; authorizing payment of certain fees
and costs; authorizing the hiring of professionals to
perform certain services; authorizing utilization of
proceeds portion for certain purpose; authorizing the
pledging of revenues as security; providing
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obligations not general obligations of the State of
Oklahoma; providing full faith and credit not pledged
to repayment; requiring certain statement be
contained on the obligations face; prescribing
procedures for sale of obligat ions; authorizing
credit enhancement and liqu idity agreements;
requiring final maturation within certain period;
providing for disposition of interest earnings;
providing exemption from taxation; requiring i nitial
execution within certain time period; limi ting time
period for authorization; providing an exception;
providing for investment of proceeds; providing for
applicability of certain statutory provisions and
clarifying legislative intent with respect to such
applicability; authorizing Oklahoma Capitol
Improvement Authority to initiate certain ju dicial
proceedings; providing for codification; 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 codifie d
in the Oklahoma Statutes as Section 350.1 o f Title 73, unless there
is created a duplication in numbering, reads as follows:
A. Subject to the limitations with respect to the authorized
date of issuance provided by this subsection, the Oklahoma Capitol
Improvement Authority is authorized to issue notes, bonds or other
evidences of obligation, and to execute federal loans with the
United States Department of Transportation pursuant to the
Transportation Infrastructure Finance and Innovati on Act (codified
as 23 U.S.C., Sections 601-609), in an amount necessary to generate
net proceeds of Two Hundred Million Dollars ($200,000,000.00), no
earlier than July 1, 2021, after providing for costs of issuance,
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credit enhancement, reserves and other associated expens es related
to the financing. The principal am ount of any note, bond or other
evidence of obligation issued to the United States Department of
Transportation in connection with any federal loan authorized
hereunder may be increased following disbursement of loan proceeds
by the amount of interest that may be capitalized and added to
principal in accordance with the terms of the federal loan
agreement.
B. Net proceeds of the financing will be deposited into a
construction fund to provide for the financing of the acquisition of
real property, together w ith improvements located thereon, and
personal property, to construct, maintain and improve those state
highway and state bridge assets identified in the Oklahoma
Transportation Commission Construction Work Plan as represented in
the Appendix of this act, which is incorporated as if fully set out
herein.
C. The Transportation Commission or the Department of
Transportation shall use the proceeds identified in subse ction B of
this section according to the priority of the enumerated projects as
they appear for the applicable federal fiscal year in the
Construction Work Plan described in subsection B of this section in
order to facilitate the completion of the enumerat ed projects,
giving consideration to the ability to match federal funding and
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such other factors as the Transportation Commission or the
Department of Transportation shall deem fiscally prudent.
D. Earnings that result from the investment of the construct ion
fund may be used for the projects authorized in this section or for
other legal purposes a pproved by the Authority.
E. The Authority and the Transportation Commission or the
Department of Transportation are authorized to enter into such
agreements as may be necessary to authorize the Authority to ho ld
title to the real and personal property an d improvements until such
time as any obligations issued for the purpose set forth in
subsection B of this section are retired or defeased and the
Authority may lease the real property and improvements to the
Transportation Commission or the Department of Transportation for
the purposes authorized by this section. Upon final redemption or
defeasance of the obligations created pursuant to this section,
title to the real and personal property and improvements shal l be
transferred from the Oklahoma Capitol Im provement Authority to the
Transportation Commission or the Department of Transportation.
F. For the purpose of paying the costs for acquisition and
construction of the real property and improvements and person al
property and making the repairs, refurbish ments and improvements to
real and personal property, and providing funding for the projects
authorized in this section, and for the purpose authorized in
subsection H of this section, the Authority is hereby au thorized to
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borrow monies on the credit of th e 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 one or more series.
G. It is the intent of the Legislature to appropriate to the
Department of Transportation sufficient monies to make rental
payments for the purposes of retiring the obligations created
pursuant to this section.
H. To the extent funds are available from the proceeds of the
borrowing authorized by subsection A of this section, the Oklahoma
Capitol Improvement Authority shall provide for the payment of
professional fees and associated costs re lated to the projects
authorized in this section.
I. The Authority may issue obligations in o ne or more series
and in conjunction with other issues of the Authority. The
Authority is authorized to hire bond counsel, financial consultants
and such other professionals as it may deem necessary to provide for
the efficient sale of the obligations or the issuance of obligations
to the United States Department of Transportation in connection with
federal loans, as described in subsection A of this section, and may
utilize a portion of the proceeds of any borr owing to create such
reserves as may be deeme d necessary and to pay costs associated with
the issuance and administration of such obligations.
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J. The bond indenture or other instrument pursuant to which the
Oklahoma Capitol Improvement Authority becomes o bligated for the
repayment of principal and i nterest of the proceeds from the sale of
obligations or the execution of a loan with the United States
Department of Transportation authorized in subsection A of this
section shall provide that all obligations a re to be repaid from the
source of revenue sp ecified in this section. Such bond indenture or
other instrument may provide for the pledge of such revenue and the
associated funds and accounts established ther eunder as security for
the payment of such obliga tions.
K. The bonds or other obligations iss ued pursuant to this
section shall not at any time be deemed to constitute a debt of the
state or of any political subdivision thereof or a pledge of the
faith and credit of the state or of any such political su bdivision.
L. Such bonds or other obligation s shall contain on the face
thereof a statement that neither the faith and credit nor the taxing
power of the state or any political subdivision thereof is pledge d,
or may hereafter be pledged, to the payment of the principal of or
the interest on such bon ds or other obligations.
M. The obligations authorized under this section may be sold at
either competitive, negotiated sale, or may be directly placed with
the United States Department of Transportation as det ermined by the
Authority, and in such form an d at such prices as may be authorized
by the Authority. The Authority may enter into agreements with such
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credit enhancers and liquidity providers as may be dete rmined
necessary to efficiently market the obliga tions. The obligations
may mature and have s uch provisions for redemption as shall be
determined by the Authority, but in no event shall the final
maturity of such obligations occur later than thirty (30) y ears from
the first principal maturity date.
N. Any interest earnings on funds or accounts cr eated 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.
O. The obligations issued under this section, the transfer
thereof and the interest earned on such obligati ons, 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 political subdivision therein.
P. Obligations authorized under this section shall have an
initial execution no later than five (5) years from the effective
date of this act. If no obligations have been issued by the end of
such five-year period, the auth orization provided by this section
shall be null and void. Provided that, an issuance of a po rtion of
the obligations authorized in subsection A of this section during
such five-year period shall satisfy the issuance requirement of this
subsection.
Q. The Authority may direct the investment of all moni es in any
funds or accounts created in connec tion with the offering of the
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obligations authorized under this section. Such investments shall
be made in a manner consistent with the investment guidelines of the
State Treasurer. The Authority may place add itional restrictions on
the investment of suc h monies if necessary, to enhance the
marketability of the obligations.
R. Insofar as they are not in conflict with the provisions of
this section, the provision s of Section 151 et seq. of Title 73 of
the Oklahoma Statutes shall apply to this section. It is the intent
of the Legislature that the Oklahoma Capitol Improvement Authority
shall have the same powers to require the Oklahoma Department of
Transportation to use and occupy the capital improvements and rea l
property financed by the Oklahoma Capitol I mprovement Authority, and
to pay rent for such use and occupancy, as the Oklahoma Capitol
Improvement Authority has under Sections 161(3) and 163 of Title 73
of the Oklahoma Statutes with respect to buildings.
S. The Oklahoma Capitol Improvement Authority may initiate
proceedings for purposes of validating the obligations authorized
pursuant to the provisions of this section according to the
provisions of Section 14.1 of Title 20 of the Oklahoma Statutes not
later than one hundred twenty (120) days after t he effective date of
this act.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof t his act shall take effect and
be in full force from and after its passage and approval.
58-1-8320 JM 05/17/21
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