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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 3995 By: Dobrinski
COMMITTEE SUBSTITUTE
An Act relating to cities and towns; amending 11 O.S.
2021, Section 24-104, which relates to members of the
Oklahoma Municipal Power Authority election
committee; clarifying language of applicability in
regards to filing date; amending 11 O.S. 2021,
Section 24-105, which relates to defini tions;
modifying terms; amending 11 O.S. 2021, Section 24-
107, which relates to the powers, rights, and
privileges of the Authority; changing office
responsible for approving actions taken b y the
Authority; modifying when the Authority may not sell
output; modifying applicability ; amending 11 O.S.
2021, Section 24-116, which relates to meetings and
records of the Authority; changing citation to
applicable statute; amending 11 O.S. 20 21, Section
24-117, which relates to construction of act;
modifying limitation on the Authority ; repealing 11
O.S. 2021, Section 24-105.1, which relates to joint
interest in Electric Generation Pro ject; repealing 11
O.S. 2021, Section 24-120, which relates to personnel
included in unclassified service ; repealing 11 O.S.
2021, Section 24-114, which relates to acquisition
and construction contracts; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
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SECTION 1. AMENDATORY 11 O.S. 2021, Section 24-104, is
amended to read as follow s:
(a) (i) Election Committee. The Authority shall be governed by
a Board of Directors c onsisting of seven members or such greater
number, but in no event more than eleven members, as provided in the
bylaws of the Authority as in effect from time to time . Members of
the Board of Directors of the Authority shall be eligible to succeed
themselves and shall be elected b y the election committee a s
hereinafter provided in this section. On or before the 90th day
following the effective date of this act, each of those eligible
public agencies which shall have, prior to such 90th day, by proper
resolution of its governing bo dy or its public trust, de clared its
intention to participate, or to have any public trust operating its
electric system participate, with t he Authority in the development
of power supply resources, shall designate one person as i ts
representative on the e lection committee. All su ch resolutions of
declaration of intention to participate with the Authority shall b e
filed with the Secretary of State and shall be presented to the
election committee at its first meeting which shall be held in the
office of the Municipal Electric System s of Oklahoma at 11:00 a.m.
on the first Tuesday following such 90th day. At such me eting the
election committee s hall organize and elect a chairman and such
other officers as may be desirable in the dete rmination of the
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election committee. The election c ommittee shall then determine the
sufficiency of the resolutions presented to it.
(ii) Election Committee Voting. For purposes of voting upon
any matter which may properly come before the election commi ttee,
each representative shall have one vote unless otherwise provided in
the bylaws of the Authority as in effect from time to time. The
presence at any meeting of the election committee of representatives
entitled to cast a majority of the total votes to which the election
committee shall be entitled sh all, unless otherwise provided in the
bylaws of the Authority as in effect from time to time, constitute a
quorum of the election committee.
(iii) Bylaws of the Authority.
(A) The bylaws of the Authorit y shall be adopted by the
election committee of the Authority by a majority vote of the
election committee and may thereafter be amended at any time and
from time to time in whole or in part by the election committee or
by the Board of Directors by a major ity of the total votes ent itled
to be cast at any pr operly called and constituted meeting thereof,
provided, however, that any such amend ment shall not violate the
provisions of Section 19 hereof 24-119 of this title.
(B) The bylaws of the Authority shall provide the following:
(1) the time, place, manner of calling, notice, quorum and
voting provisions, and other procedural rules for
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regular and special meeti ngs of the election committee
of the Authority;
(2) the time, place, manner of calling, notice, quorum and
voting provisions, and other procedural r ules for
regular and special meetings of the Board of Directors
of the Authority;
(3) provisions for the n umber, election, term of office
and removal of members of the Board of Directors and
for filling vacancies on the Board of Directors;
(4) the titles, duties and manner of election, removal and
replacement of officers of the Authority;
(5) provisions gove rning when the Authority may dissolve
and the disposition of property of the Authority and
the procedures to be followed in the event of such a
dissolution, provided, however, that any such
dissolution shall not violate the provisions of
Section 19 hereof 24-119 of this title; and
(6) such other rules for regulating the affairs of the
Authority as the election committee or th e Board of
Directors may deem necessary or advisable.
(iv) Board of Directors. The initial members of the Board of
Directors of the Authority shall be elected by the election
committee of the Authority. Members of the Board of Directors of
the Authority shall be residents of the State of Oklahoma. Members
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of the Board of Directors of the Authority may, but need not, be
members of the election commi ttee. Each member of the Board of
Directors of the Authority shall hold office u ntil the adjournment
of the annual meeting of the Bo ard of Directors held at, or nearest
to, the expiration of his the Director's term of office as provided
in the bylaws of the Authority and until his a successor is elected.
(b) Additional Members of Ele ction Committee. Each eligible
public agency declaring its intention, by proper resolution of its
governing body, to participate, or to have any public trust
operating its electric system participate, with the Authority in the
development of power supply resources after the 90th day following
the effective date of this act shall promptly file such resolution
with the Secretary of State and give written notice to the Authority
of the adoption of such resolution and shall then designate one
person as an additional member of the election committee who se term
shall begin with the first meeting of the election committee which
is held following the expiration of ten (10) days from th e date of
receipt of notice of the adoption of such resolution by the
Authority. Members of the election committee shall se rve at the
pleasure of the governing body of the eligible public agency by
which they were appointed.
SECTION 2. AMENDATORY 11 O.S. 2021, Section 24-105, is
amended to read as follows :
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As used in this act the following words shall h ave the following
meanings unless the context clearly indicates otherwise:
(a) "Authority" shall mean the Oklahoma Municipal Power
Authority hereby created and any successor or successors thereto.
Any change in name or composition of the Authority shall i n no way
affect the vested rights of any person under the provisions of this
act or impair the obligations of any contracts existing under this
act.
(b) "Board of Directors" shall mean the Board of Directors
elected by the election committee as set forth in Section 4 24-104
of this act title which shall exercise all the powers and manage and
control all the affairs and property of the Authority unless
otherwise specifically provided herein or in the bylaws of the
Authority as in effect from time to time.
(c) "Bonds" shall mean any revenue bonds, notes or other
evidences of obligations of the Authority issued by the Authority
under the provisions of this act, including, without limitation,
bond anticipation notes and refunding bonds.
(d) "Eligible public agency" shall mean any municipality,
authority or other public body which owns, maintains or operates an
electrical energy generation , transmission or distribution system
within the State of Oklahoma on the date on which this act becomes
law.
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(e) "Person" shall mean (i) any natural person; (ii) any
eligible public agency as defined herein; (iii) any public trust as
defined herein; (iv) the United States, any state, any municipality,
political subdivision, municipal corporation, unit of local
government, governmental unit or public corporation created by or
pursuant to the laws of the United States or any state, or any
board, corporation or other entity or body declared by the laws of
the United States or any state to be a department, agency or
instrumentality thereof; (v) any corporation, not for profit
corporation, firm, partnership, cooperative association, electric
cooperative or business trust of any nature whatsoever organized and
existing under the laws of the United States or any state; or (vi)
any foreign country, any political subdivision or governmental unit
of any foreign country or any corporation, not for profit
corporation, firm, partnership, cooperative association, electric
cooperative or business trust of any nature whatsoever organized and
existing under the laws of any foreign country or of any political
subdivision or governmental entity thereof.
(f) "Project" shall mean any plant, works, system, facilities
and real and personal property of any nature whatsoever, together
with all parts thereof and appurtenances thereto, located within or
without the State of Oklahoma, used or useful in the generation,
production, transmission, purchase, sale, exchange or interchange of
electrical energy and in the acquisition, extraction, processing,
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transportation or storage or of fuel of any kind for any such
purposes or any interest in, or right to the use, services, output
or capacity, of any such plant, works, system or facilities;
provided, however, a project shall not include (i) any interest in
any plant for the generation of electrical energy which is to be
owned jointly with any investor -owned utility if such plant is not
existing on May 10, 1981, or (ii) any interest in any nuclear
powered generating plant. For purposes of this definition, a plant
shall be considered to be existing if construction shall have been
commenced at the plant site, if orders have been placed for majo r
components of equipment or if the plant is to consist of an
additional unit at the site of an already existing unit which will
use in common any of the existing facilities at such site .
(g) "Public trust" shall mean any public trust created and
existing under the provisions of the Trusts for Furtherance of
Public Functions Law, as provided by Sections 176 et seq. of Title
60 of the Oklahoma Statutes, and the Oklahoma Trust Act, as provided
by Sections 175 et seq. of Title 60 of the Oklahoma Statutes, whi ch
has as its beneficiary a municipality and which owns, maintains or
operates an electrical energy generation, transmission or
distribution system serving the residents and consumers of such
municipality and existing on the date on which this act becomes law
or created hereafter with an eligible public agency as the
beneficiary.
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SECTION 3. AMENDATORY 11 O.S. 2021, Section 24-107, is
amended to read as follows :
(a) The Authority shall have and is her eby authorized to
exercise all powers, rights and privileges enumerated in this
section. Such powers, rights and privileges shall be exercised by
its Board of Directors unless otherwise specifically provided herein
or by the bylaws of the Authority as in effect from time to time.
(b) The Authority may plan, finance, acquire, construct,
reconstruct, own, lease, opera te, maintain, repair, improve, extend
or otherwise participate, individually or jointly with other
persons, in one or more projects, proposed, existing or under
construction, and may act as agent, or designate one or more
persons, whether or not participat ing in a project, to act as its
agent, in connection with the planning, financing, acquisition,
construction, reconstruction, ownership, lease , operation,
maintenance, repair, extension or improvement of the project.
(c) The Authority may investigate the desirability of and
necessity for additional sources and supplies of electrical energy
and fuel and other supplies of any kind for such purpos e, and make
studies, surveys and estimates as may be necessary to determine the
feasibility and cost thereof.
(d) The Authority may cooperate with other persons in the
development of sources and supplies of electrical energy and fuel
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and other supplies of any kind for such purposes, and give
assistance with personnel and equipment in any project.
(e) The Authority m ay apply to any person for consents,
authorizations or approvals required for any project within its
powers and take all actions necessary to comply with the conditions
thereof.
(f) The Authority may perform any act authorized by this act
through, or by means of, its officers, agents or employ ees or by
contract with any person, including, without limitation, the
employment of engineers, archite cts, attorneys, appraisers,
financial advisors and such other consultants and employees as may
be required in the judgment of the Board of Directors, and fix and
pay their compensation from funds available to the Authority
therefor.
(g) The Authority may acquire, hold, use and dispose of income,
revenues, funds and money.
(h) The Authority may, individually or joint ly with other
persons, acquire, own, hi re, use, operate and dispose of personal
property and any interest therein.
(i) The Authority may, ind ividually or jointly with other
persons, acquire, own, use, lease as lessor or lessee, operate and
dispose of real property and interests in real propert y, including
projects existing, proposed or under construction, and make
improvements thereon.
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(j) The Authority may grant the use by f ranchise, lease or
otherwise and make charges for the use of any property or faci lity
owned or controlled by it.
(k) The Authority may borrow money and issue negotiable bonds,
secured or unsecured, in accordance with this act, and may enter
into interest rate swaps and other derivative products, and other
financial instruments intende d to hedge interest rate risk or manage
interest rate costs, including any option to enter into or terminate
any of them, that the Authority d eems to be necessary or desirable
in connection with any bonds issued prior to, at the same time as,
or after entering into such arrangement, and contain ing such terms
and provisions, and may be with such parties, as determined by the
Authority. Provided, any action taken by the Authorit y pursuant to
this subsection must first be approved by the Office of the State
Bond Advisor Deputy Treasurer for Debt M anagement and the Council of
Bond Oversight pursuant to the provisions of the Oklahoma Bond
Oversight and Reform Act.
(l) The Authority may invest money of the Authority not
required for immediate use, including proc eeds from the sale of any
bonds.
(m) The Authority may exercise the power of eminent domain in
accordance with the provisions of Section 24-110 of this title.
(n) The Authority may determine the location and character of,
and all other matters in connect ion with, any and all projects it is
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authorized to acquire, hold, establish, effectuate, operate or
control.
(o) The Authority may contract w ith any person for the
planning, development, construction, operation, sale or lease as
lessor or lessee of any pr oject or for any interest therein, on s uch
terms and for such period of time as its Board of Directors shall
determine.
(p) The Authority may contract with any eligible publi c agency,
any public trust, or any other person for the sale of power and
energy, transmission services, power supply de velopment services or
other services within or without the State of Oklahoma on such terms
and conditions as the Board of Directors shal l approve. Any such
contract may be for the sale of output and services of a par ticular
project or may be for output an d services generally without regard
to a specific project and may be for the supply of a specific
quantity of output or a percentage of the output of a specific
project or other specific facility or may be based on th e
requirements of the purchaser or may be on such other terms and
conditions as the Board of Directors deems appropriate.
(q) The Authority m ay enter into any contract or agr eement
necessary, appropriate or incidental to the effectuation of its
lawful purposes and the exercise of the powers gr anted by this act,
including, without limitation, contracts or agreements for the
purchase, sale, excha nge, interchange, wheeling, pooli ng,
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transmission or storage of electric power and energy, and fuel and
other supplies of any kind for any such purposes, within and without
the State of Oklahoma, in such amounts as it shall determine to be
necessary and appropriate to make the most effect ive use of its
powers and to meet its responsibilities, on such terms and for suc h
period of time as the Board of Direct ors determines, and derivative
or other instruments intended to hedge fuel cost risk associated
with any projects or power purchases or supply arrangements of the
Authority, or to hedge fixed or variable interest rate exposure
associated with permitted inv estments, including any option to enter
into or terminate any of them, that the Authority deems to be
necessary or desirable, and contai ning such terms and provisions,
and may be with such parties, as determined by th e Authority.
(r) In any case in which the Authority participates in a
project as a joint owner with one or more persons, the Authority may
enter into an agreement or agreemen ts with respect to such project
with the other person or persons participating th erein, and any such
agreement may contain such terms, conditions and provisions
consistent with the provisions of the act as the parties there to
shall deem to be in their best interest. Any such agreement may
include, but need not be limited to, provision s defining what
constitutes a default t hereunder and providing for the rights and
remedies of the parties thereto upon the occurrence of such a
default deemed appropriate by t he Board of Directors including, to
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the extent deemed appropriate, the acquisitio n by nondefaulting
parties of all or an y part of the defaulting party's interest;
provisions setting forth such restraints on alienation of th e
interests of the parties in the project as the Board of Directors
deems appropriate; provisions for the construc tion, operation and
maintenance of such electric generation or transmission facility by
any one or more of the parties to such agreement which party or
parties shall be design ated in or pursuant to such agreement as
agent or parties thereto or by such othe r means as may be determined
by the parties thereto; and provisions for a method or methods of
determining and allocating, among or between th e parties, costs of
construction, operation, maintenance, renewals, replacements,
improvements and disposals with respect to such project. In
exercising its power to participate in a project as a joint owner
with one or more persons, the Authority may not loan its credit to
any person which is a joint owner of such project; provided,
however, the appropriate allocati ons of the costs of construction,
operation, maintenance, renewals, replacements, improvements and
disposals with respect to such project betw een the Authority and
such persons shall not be a loan of credit by the Authority to such
persons. In carrying ou t its functions and activities as such agent
with respect to construction, operation and maintenance of a
project, such agent shall be governe d by the laws and regulations
applicable to such agent as a separate legal entity and not by any
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laws or regulations which may be applicable to any of th e other
participating parties. Notwithstanding anything contained in any
other law to the contrary, pu rsuant to the terms of any such
agreement, the Authority may delegate its powers and duties with
respect to the construction, operation and maintenance o f such
project to the person acting as agent; and all actions taken by such
agent in accordance with th e provisions of such agreement ma y be
made binding upon the Authority without further action or approval
by the Authority.
(s) The Authority may procure insurance against any losses in
connection with its property, operations or assets in such amounts
and from such insurers as it deems d esirable, or may self-insure
against such losses.
(t) The Authority may contract for and accept any gifts, grants
or loans of funds or property or financial or other aid in any form
from any person, and may comply, subject to the provisions of this
act, with the terms and conditions thereof.
(u) The Authority may adopt a corporate se al and may sue or be
sued.
(v) The Authority may exercise all other powers not
inconsistent with the Constitution of the State of Oklahoma or the
United States Constitution, which powers may be reasonably necessary
or appropriate for or incidental to effe ctuate its authorized
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purposes or to the exercise of any of the powers enumerated in this
act.
(w) Notwithstanding any other provision herein seemingly to the
contrary, the Authority may not sell output (i) at retail to the
ultimate consumers thereof , (ii) to any municipality which does not
qualify as an eligible public agency under the definition set forth
in subsection (d) of Section 24-105 of this title, or (iii) to any
trust created and existing under the provisions of the Local
Industrial Development Act, as provided by Sections 651 et seq . of
Title 62 of the Oklahoma Statutes, or the Trusts for Furtherance of
Public Functions Law, as provi ded by Sections 176 et seq. of Ti tle
60 of the Oklahoma Statutes, which does not qualify as a public
trust under the definition set forth in subsection (g) of Section
24-105 of this title own an electrical energy distribution system .
SECTION 4. AMENDATORY 11 O.S. 2021, Section 24-116, is
amended to read as follows:
All meetings of the Authority shall be subject to the provisions
of the Oklahoma Open Meeting Act, as provided by Sections 301 et
seq. of Title 25 of the Oklahoma Statutes. All records of the
Authority shall be subject to the provisions of Section 24 the
Oklahoma Open Records Act, as provided by Section 24A.1 et seq. of
Title 51 of the Oklahoma Statutes.
SECTION 5. AMENDATORY 11 O.S. 2021, Section 24-117, is
amended to read as foll ows:
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This act and all the terms and provisions hereof shall be
liberally construed to effectuate the purposes set forth herein ;
provided however, nothing in this act shall be construed to
authorize the Authority to loa n its credit to any investor -owned
utility nor to acquire or subsidize any nuclear powered generating
plant.
SECTION 6. REPEALER 11 O.S. 2021, Section 24-105.1, is
hereby repealed.
SECTION 7. REPEALER 11 O.S. 2021, Section 24-114, is
hereby repealed.
SECTION 8. REPEALER 11 O.S. 2021, Section 24-120, is
hereby repealed.
SECTION 9. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON UTILITIES, dated 03/01/2022 - DO
PASS, As Amended.