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Oklahoma House Bill HB2896

Oklahoma 2022 Regular Session

Oklahoma House Bill HB2896 Compare Versions

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1-An Act
2-ENR. H. B. NO. 2896
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429 BILL NO. 2896 By: Wallace and Hilbert of the
530 House
631
732 and
833
934 Thompson and Hall of the
1035 Senate
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1742 An Act relating to transportation infrastructure
1843 finance; authorizing issuance of certain obligations
1944 by the Oklahoma Capitol Improvement Authority;
2045 authorizing the Oklahoma Capitol Improvement
2146 Authority to enter into loan agreements with the
2247 United States Department of Transportation; stating
2348 amount of net proceeds; imposing certain restrictions
2449 related to timing of issuance; clarifying the
2550 treatment of capitalized interest; requiring certain
2651 deposit of proceeds; providing for use of net
2752 proceeds; specifying authorized use of proceeds;
2853 incorporating content of Construction Work Plan;
2954 providing for priority of expenditures; providing for
3055 disposition of certain earnings; authorizing
3156 agreements between the Oklahoma Capitol Improvement
3257 Authority and the Transportation Commission or the
3358 Department of Transportation; specifying content of
3459 agreements; providing for effect of redemption or
3560 defeasance; authorizing borrowing of monies and
3661 issuance of negotiable obligations; authorizing
3762 issuance in series; stating legislative intent with
3863 respect to appropriations to the Department of
3964 Transportation; authorizing payment of certain fees
4065 and costs; authorizing the hiring of professionals to
4166 perform certain services; authorizing utilization of
4267 proceeds portion for certain purpose; authorizing the
4368 pledging of revenues as security; providing
4469 obligations not general obligations of the State of
4570 Oklahoma; providing full faith and credit not pledged
4671 to repayment; requiring certain statement be
47-contained on the obligations face; prescribing ENR. H. B. NO. 2896 Page 2
72+contained on the obligations face; prescribing
4873 procedures for sale of obligations; authorizing
4974 credit enhancement and liquidity agreements;
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50101 requiring final maturation within c ertain period;
51102 providing for disposition of interest earnings;
52103 providing exemption from taxation; requiring initial
53104 execution within certain time period; limiting time
54105 period for authorization; providing an exception;
55106 providing for investment of proceeds; providing for
56107 applicability of certain statutory provisions and
57108 clarifying legislative intent with respect to such
58109 applicability; authorizing Oklahoma Capitol
59110 Improvement Authority to initiate certain judicial
60111 proceedings; providing for codification; and
61112 declaring an emergency.
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65-SUBJECT: Transportation infrastructure finance
66116
67117 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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69118 SECTION 1. NEW LAW A new section of law to be codified
70119 in the Oklahoma Statutes as Section 350.1 of Title 73, unless there
71120 is created a duplication in numbering, reads as follows:
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73121 A. Subject to the limitations with respect to the authorized
74122 date of issuance provided by this subsection, the Oklahoma Capitol
75123 Improvement Authority is authorized to issue notes, bonds or other
76124 evidences of obligation, and to execute federal loans with the
77125 United States Department of Transportation pursuant to the
78126 Transportation Infrastructure Finance and Innovation Act (codified
79127 as 23 U.S.C., Sections 601 -609), in an amount necessary to generate
80128 net proceeds of Two Hundred Mi llion Dollars ($200,000,000.00), no
81129 earlier than July 1, 2021, after providing for costs of issuance,
82130 credit enhancement, reserves and other associated expenses related
83131 to the financing. The principal amount of any note, bond or other
84132 evidence of obligati on issued to the United States Department of
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85159 Transportation in connection with any federal loan authorized
86160 hereunder may be increased following disbursement of loan proceeds
87161 by the amount of interest that may be capitalized and added to
88162 principal in accordance with the terms of the federal loan
89163 agreement.
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91164 B. Net proceeds of the financing will be deposited into a
92-construction fund to provide for the financing of the acquisition of ENR. H. B. NO. 2896 Page 3
165+construction fund to provide for the financing of the acquisition of
93166 real property, together with improvements located thereon, and
94167 personal property, to construct, maintain and improve those state
95168 highway and state bridge assets identified in the Oklahoma
96169 Transportation Commission Construction Work Plan as represented in
97170 the Appendix of this act, which is incorporated as if fully set out
98171 herein.
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100172 C. The Transportation Commission or the Department of
101173 Transportation shall use the proceeds identified in subsection B of
102174 this section according to the priority of the enumerated projects as
103175 they appear for the applicable federal fiscal year in the
104176 Construction Work Plan described in subsection B of this section in
105177 order to facilitate the completion of the enumerated projects,
106178 giving consideration to the ability to match federal funding and
107179 such other factors as the Transportation Commission or the
108180 Department of Transportation shall deem fiscally prudent.
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110207 D. Earnings that result from the investment of the construction
111208 fund may be used for the projects authorized in this section or for
112209 other legal purposes approved by the Authority.
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114210 E. The Authority and the Transportation Commission or the
115211 Department of Transportation are authorized to enter into such
116212 agreements as may be necessary to authorize the Authority to hold
117213 title to the real and personal property and improvements until such
118214 time as any obligations is sued for the purpose set forth in
119215 subsection B of this section are retired or defeased and the
120216 Authority may lease the real property and improvements to the
121217 Transportation Commission or the Department of Transportation for
122218 the purposes authorized by this s ection. Upon final redemption or
123219 defeasance of the obligations created pursuant to this section,
124220 title to the real and personal property and improvements shall be
125221 transferred from the Oklahoma Capitol Improvement Authority to the
126222 Transportation Commission or the Department of Transportation.
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128223 F. For the purpose of paying the costs for acquisition and
129224 construction of the real property and improvements and personal
130225 property and making the repairs, refurbishments and improvements to
131226 real and personal property , and providing funding for the projects
132227 authorized in this section, and for the purpose authorized in
133228 subsection H of this section, the Authority is hereby authorized to
134229 borrow monies on the credit of the income and revenues to be derived
135230 from the leasing of such real and personal property and improvements
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136257 and, in anticipation of the collection of such income and revenues,
137-to issue negotiable obligations in one or more series. ENR. H. B. NO. 2896 Page 4
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258+to issue negotiable obligations in one or more series.
139259 G. It is the intent of the Legislature to appropriate to the
140260 Department of Transportation sufficient monies to make rental
141261 payments for the purposes of retiring the obligations created
142262 pursuant to this section.
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144263 H. To the extent funds are available from the proceeds of the
145264 borrowing authorized by subsection A of this section, the Okl ahoma
146265 Capitol Improvement Authority shall provide for the payment of
147266 professional fees and associated costs related to the projects
148267 authorized in this section.
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150268 I. The Authority may issue obligations in one or more series
151269 and in conjunction with other issu es of the Authority. The
152270 Authority is authorized to hire bond counsel, financial consultants
153271 and such other professionals as it may deem necessary to provide for
154272 the efficient sale of the obligations or the issuance of obligations
155273 to the United States Dep artment of Transportation in connection with
156274 federal loans, as described in subsection A of this section, and may
157275 utilize a portion of the proceeds of any borrowing to create such
158276 reserves as may be deemed necessary and to pay costs associated with
159277 the issuance and administration of such obligations.
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161278 J. The bond indenture or other instrument pursuant to which the
162279 Oklahoma Capitol Improvement Authority becomes obligated for the
163280 repayment of principal and interest of the proceeds from the sale of
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164307 obligations or the execution of a loan with the United States
165308 Department of Transportation authorized in subsection A of this
166309 section shall provide that all obligations are to be repaid from the
167310 source of revenue specified in this section. Such bond indenture or
168311 other instrument may provide for the pledge of such revenue and the
169312 associated funds and accounts established thereunder as security for
170313 the payment of such obligations.
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172314 K. The bonds or other obligations issued pursuant to this
173315 section shall not at any time be deemed to constitute a debt of the
174316 state or of any political subdivision thereof or a pledge of the
175317 faith and credit of the state or of any such political subdivision.
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177318 L. Such bonds or other obligations shall contain on the face
178319 thereof a statement tha t neither the faith and credit nor the taxing
179320 power of the state or any political subdivision thereof is pledged,
180321 or may hereafter be pledged, to the payment of the principal of or
181322 the interest on such bonds or other obligations.
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183323 M. The obligations author ized under this section may be sold at
184324 either competitive, negotiated sale, or may be directly placed with
185325 the United States Department of Transportation as determined by the
186326 Authority, and in such form and at such prices as may be authorized
187327 by the Authority. The Authority may enter into agreements with such
188328 credit enhancers and liquidity providers as may be determined
189329 necessary to efficiently market the obligations. The obligations
190330 may mature and have such provisions for redemption as shall be
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191357 determined by the Authority, but in no event shall the final
192358 maturity of such obligations occur later than thirty (30) years from
193359 the first principal maturity date.
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195360 N. Any interest earnings on funds or accounts created for the
196361 purposes of this section may be utili zed as partial payment of the
197362 annual debt service or for the purposes directed by the Authority.
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199363 O. The obligations issued under this section, the transfer
200364 thereof and the interest earned on such obligations, including any
201365 profit derived from the sale the reof, shall not be subject to
202366 taxation of any kind by the State of Oklahoma, or by any county,
203367 municipality or political subdivision therein.
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205368 P. Obligations authorized under this section shall have an
206369 initial execution no later than five (5) years from th e effective
207370 date of this act. If no obligations have been issued by the end of
208371 such five-year period, the authorization provided by this section
209372 shall be null and void. Provided that, an issuance of a portion of
210373 the obligations authorized in subsection A of this section during
211374 such five-year period shall satisfy the issuance requirement of this
212375 subsection.
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214376 Q. The Authority may direct the investment of all monies in any
215377 funds or accounts created in connection with the offering of the
216378 obligations authorize d under this section. Such investments shall
217379 be made in a manner consistent with the investment guidelines of the
218380 State Treasurer. The Authority may place additional restrictions on
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219407 the investment of such monies , if necessary, to enhance the
220408 marketability of the obligations.
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222409 R. Insofar as they are not in conflict with the provisions of
223410 this section, the provisions of Section 151 et seq. of Title 73 of
224411 the Oklahoma Statutes shall apply to this section. It is the intent
225412 of the Legislature that the Oklahom a Capitol Improvement Authority
226413 shall have the same powers to require the Oklahoma Department of
227-Transportation to use and occupy the capital improvements and real ENR. H. B. NO. 2896 Page 6
414+Transportation to use and occupy the capital improvements and real
228415 property financed by the Oklahoma Capitol Improvement Authority, and
229416 to pay rent for such us e and occupancy, as the Oklahoma Capitol
230417 Improvement Authority has under Sections 161(3) and 163 of Title 73
231418 of the Oklahoma Statutes with respect to buildings.
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233419 S. The Oklahoma Capitol Improvement Authority may initiate
234420 proceedings for purposes of validat ing the obligations authorized
235421 pursuant to the provisions of this section according to the
236422 provisions of Section 14.1 of Title 20 of the Oklahoma Statutes not
237423 later than one hundred twenty (120) days after the effective date of
238424 this act.
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240425 SECTION 2. It being immediately necessary for the preservation
241426 of the public peace, health or safety, an emergency is hereby
242427 declared to exist, by reason whereof this act shall take effect and
243428 be in full force from and after its passage and approval.
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245455 Passed the House of Representatives the 18th day of May, 2021.
246456
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250460 Presiding Officer of the House
251461 of Representatives
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254-Passed the Senate the 20th day of May, 2021.
464+Passed the Senate the ___ day of __________, 2021.
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259469 Presiding Officer of the Senate
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263-OFFICE OF THE GOVERNOR
264-Received by the Office of the Governor this ____________________
265-day of ___________________, 20_______, at _______ o'clock _______ M.
266-By: _________________________________
267-Approved by the Governor of the State of Oklah oma this _________
268-day of ___________________, 20_______, at _______ o'clock _______ M.
474+ENGR. H. B. NO. 2896 (Appendix)
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271- _________________________________
272- Governor of the State of Oklahoma
273-
274-OFFICE OF THE SECRETARY OF STATE
275-Received by the Office of the Secretary of State this ________ __
276-day of ___________________, 20_______, at _______ o'clock _______ M.
277-By: _________________________________
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