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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
HOUSE BILL 3571 By: McBride
AS INTRODUCED
An Act relating to the Oklahoma Capitol Improvement
Authority; authorizing issuance of obligations;
providing for authorized use of proc eeds; providing
for net proceeds amount; authorizing acqu isition of
title to certain assets by Oklahoma Capitol
Improvement Authority; providing for transfer of
title upon redemption o r defeasance; authorizing
Oklahoma Capitol Improvement Authority to borrow
monies on credit of certain income or revenues;
authorizing capitalization of interest for prescribed
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;
authorizing engagement of certain professional
services; providing for competitive or negotiated
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 issui ng
capacity on previously issued obligations; providing
for codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 382 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 improveme nts
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 of the Jim Thorpe
Office Building and associated furniture, fixtures , and equipment in
a total amount not to exceed Seventy Million Dollars
($70,000,000.00). The funds shall be used for the renovation,
repair, and remodeling of the Jim Thorpe Office Building .
B. The Authority may hold title to the property and
improvements until such time as any obligations issued for this
purpose are retired or defease d and may lease the property and
improvements to the Off ice of Management and Enterprise Services.
Upon final redemption or defeasance of the obligations created
pursuant to this section, title to the property and improvements
shall be transferred from th e Oklahoma Capitol Improvement Authority
to the Office of Management and Enterprise Services.
C. For the purposes of paying the costs for construction of the
real property and improvements, and providing funding for the
project authorized in subsection A of this section, and for the
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purpose authorized in subs ection D of this section, the Authority is
hereby authorized to borro w monies on the credit of the income and
revenues to be derived from the leasing of such property and
improvements and, in anticipat ion of the collection of such income
and revenues, to issue negotiable obligations in a total amount not
to exceed Seventy Million Dollars ( $70,000,000.00) whether issued in
one or more series. The Authority is authorized to capitalize
interest on the obligations issued pursuant to this section for a
period of not to exceed one (1) year from the date of issuance. For
subsequent fiscal years, it is the intent of the Legislature to
appropriate to the Office of Management and Enterprise Services
sufficient monies to make rental payments for the purpose of
retiring the obligations created pursuant to this section. To the
extent funds are available from th e proceeds of the borrowing
authorized by this subsection, the Oklahoma Capitol Improvement
Authority shall provide for the payment of professional 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
such payments would jeopardize the tax -advantaged status of the
bonds under federal law.
D. The Authority may issue obliga tions 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 n ecessary to provide for
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the efficient sale of the obli gations 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 authorized under this section m ay 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 agreements wi th such
credit enhancers and liquidity providers as m ay 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 shall the fi nal
maturity of such obligations occur later than t wenty-five (25) years
from the first principal maturity date.
F. Any interest earnings on funds or 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 .
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 all monies in any
funds or accounts created in connection with the offering of the
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obligations authorized un der this section. S uch investments shall
be made in a manner consistent with the investment guidelines of the
State Treasurer. The Authority may place additional restrictions on
the investment of such monies if necessary to enhance the
marketability of the obligations.
I. Insofar as they are not in conf lict with the provisions of
this section, the provisions 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 proceeds
authorized by the provisions of this section have bee n obtained by
sale of obligations by the Authority within 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 respect to a ny further
issuance of obligations by the Authorit y otherwise authorized by
this section. The provisions of this subsection shall not be
construed to limit the liab ility of the Authority with respect to
obligations issued pursuant to this section if the o bligations were
issued prior to the termination of the remaining issuing capacity
nor shall the provisions of this subsection be construed in any way
to impair rights of any person or entity which has purchased any
obligations of the Authority pursuant to the provisions of this
section which were authoriz ed at the time of such purchase.
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SECTION 2. This act shall become effective November 1, 2022.
58-2-10205 JM 01/12/22