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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
CONFERENCE COMMITTEE
SUBSTITUTE
FOR ENGROSSED
HOUSE BILL NO. 3567 By: McBride of the House
and
Thompson of the Senate
CONFERENCE COMMITTEE SUBSTITUTE
An Act relating to the Oklahoma Capitol Improvement
Authority; authorizing issuance of obligations;
providing for authorized use of proceeds; providing
for net proceeds amount; authorizing acqu isition of
title to certain assets by Oklaho ma Capitol
Improvement Authority; providing for transfer of
title upon redemption or defeasance; authorizing
Oklahoma Capitol Improvement Authority to borrow
monies on credit of certain income or revenues;
authorizing capitalization of interest for prescri bed
period of time; stating legislative in tent with
respect to appropriation of funds to the Office of
Management and Enterprise Services ; providing for
payment of professional fees and costs; authorizing
issuance of obligations in one or more series;
specifying net proceeds amount; authorizing
engagement of certain professional services;
providing for competitive or negot iated sale of
obligations; providing for agreements with credit
enhancers or liquidity pro viders; prescribing final
maturity; authorizing use of interest for certain
purposes; providing for exemption from state and
local taxation; providing for investment of funds;
providing for restrictions; pr oviding for
applicability of certain statutory pro visions;
imposing time limit for issuance of obligations;
providing for effect of termination of issuing
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capacity on previously issued obligat ions; 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 codified
in the Oklahoma Statutes as Section 384 of Title 73, unless there is
created a duplication in numbering, reads as follows:
A. In addition to any other authorizatio n provided by law, the
Oklahoma Capitol Improvement Authority is authorized to issue
obligations to acquire real property, together with improvements
located thereon, and personal property to construct improvements to
real property and to provide funding f or repairs, refurbishments ,
and improvements to real and personal property constituting the
tunnels underlying the State Capitol Office Complex and associated
fixtures and equipment in a total amount not to exceed Nineteen
Million Dollars ($19,000,000.00). The funds shall be used for the
renovation, repair, and remodeling of the tunnels underlying the
State Capitol Office Comple x.
B. The Authority may hold title to the property and
improvements until such time as any obligations issued for this
purpose are retired or defeased and may lease the property and
improvements to the Off ice of Management and Enterprise Services.
Upon final redemption or defeasance of the obliga tions created
pursuant to this section, title to the property and improvements
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shall be transferred from the Oklahoma Capitol Improvement Autho rity
to the Office of Management and Enterprise Services.
C. For the purposes of paying the costs for constructi on of the
real property and improvements, and providing funding for the
project authorized in subsection A of this section, and for the
purpose authorized in subsection D of this section, the Authority is
hereby authorized to borrow monies on the credit of the income and
revenues to be derived from the leasing of such property and
improvements and, in anticipation of the collection of such income
and revenues, to issue negotiable obligations in a total amount not
to exceed Nineteen Million Dollars ($19,000,000.00) whether issued
in one or more series. The Authority is authorized to capitalize
interest on the obligations issued pursuant to this se ction for a
period of not to exceed one (1) year from the date of issuance. For
subsequent fiscal years, it is th e intent of the Legislature to
appropriate to the Office of Management and Enterprise Services
sufficient monies to make rental payments for t he purpose of
retiring the obligations created pursuant to this section. To the
extent funds are available from t he proceeds of the borrowing
authorized by this subsection, the Oklahoma Capitol Improvement
Authority shall provide for the payment of profes sional fees and
associated costs related to the project authorized in subsection A
of this section; provided, that no such fees or costs may be paid if
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such payments would jeopardize the tax -advantaged status of the
bonds under federal law.
D. The Authority may issue obligations in one 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 and may utilize a portion of
the proceeds of any borrowing to create such reserves as m ay be
deemed necessary and to pay costs associated with the issuance and
administration of such obligations.
E. The obligations authoriz ed under this section may be sold at
either competitive or negotiated sale, as determined by the
Authority, and in such form and at such prices as may be authorized
by the Authority. The Authority may enter into agre ements with such
credit enhancers and l iquidity providers as may be determined
necessary to efficiently market the obligations. The obligatio ns
may mature and have such provisions for redemption as shall be
determined by the Authority, but in no event sha ll the final
maturity of such obligatio ns occur later than twenty-five (25) years
from the first principal maturit y date.
F. Any interest earnings on funds o r accounts created for the
purposes of this section may be utilized as partial payment of the
annual debt service or for the pu rposes directed by the Authority.
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G. The obligations issued under this section, the transfer
thereof, and the interest earned on such obligations, including any
profit derived from the sale thereof, shall not be subject to
taxation of any kind by the Stat e of Oklahoma, or by any county,
municipality, or political subdivision therein.
H. The Authority may direct the investment of a ll monies in any
funds or accounts created in connection with the offering of the
obligations authorized under this section. S uch investments shall
be made in a manner consistent with the investment guidelines o f the
State Treasurer. The Authority may pl ace additional restrictions on
the investment of such monies if necessary to enhance the
marketability of the obligations.
I. Insofar as they are not in conflict with the provisions of
this section, the provisio ns of Section 151 et seq. of Title 73 of
the Oklahoma Statutes shall apply to this section.
J. Unless at least fifty percent (50%) of the pro ceeds
authorized by the provisions of t his section have been obtained by
sale of obligations by the Authority with in three (3) years from the
effective date of this act, the provisions of this section shall
cease to have the force or effect of law with res pect to any further
issuance of obligations by the Authority otherwise authorized by
this section. The provisions of this subsection shall not be
construed to limit the liability of the Authority with respect to
obligations issued pursuant to this section if the obligations were
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issued prior to the termination of the remaining issuing capacity
nor shall the provision s of this subsection be construed in any way
to impair rights of any person or entity which has purchased any
obligations of the Authority pur suant to the provisions of this
section which were authorized at the time of such purchase.
SECTION 2. It being immediately necessary for the pre servation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take eff ect and
be in full force from and after its passage a nd approval.
58-2-11613 MAH 05/19/22