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ENGROSSED HOUSE
BILL NO. 3995 By: Dobrinski of the House
and
Leewright of the Senate
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 project; repealing 11
O.S. 2021, Section 24 -114, which relates to
acquisition and construction contracts; repealing 11
O.S. 2021, Section 24-120, which relates to personnel
included in unclassified service ; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 11 O.S. 2021, Section 24-104, is
amended to read as follow s:
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Section 24-104. (a) (i) Election Committee. The Authority
shall be governed by a Board of Directors c onsisting of seven
members or such greater number, b ut 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 themsel ves and shall be
elected by the election committee a s hereinafter provided in this
section. On or before the 90th day following the eff ective date of
this act, each of those eligible public agencies which shall have,
prior to such 90th day, by proper reso lution of its governing body
or its public trust, de clared its intention to participate, or to
have any public trust operating its elect ric system participate,
with the Authority in the development of power supply resources,
shall designate one person as i ts representative on the election
committee. All such 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
Systems of Oklahoma at 11:00 a.m. on the first Tuesday following
such 90th day. At such meeting the election committee s hall
organize and elect a chairman and such other officers as may be
desirable in the dete rmination of the election committee. The
election committee shall then determine the sufficiency of the
resolutions presented to it.
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(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 t ime in whole or
in part by the election committee or by the Board of
Directors by a major ity of the total votes entitled to
be cast at any properly called and constituted meeting
thereof, provided, however, that any such amend ment
shall not violate the pro visions 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
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procedural rules for 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 rules 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 governing when the Authority may
dissolve and the disposition of property of the
Authority and the pr ocedures to be followed in
the event of such a disso lution, 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 the
Board of Directors may d eem necessary or
advisable.
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(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
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
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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 :
Section 24-105. As used in this act the f ollowing words shall
have 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 Director s
elected by the election c ommittee 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 effec t 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.
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(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 becom es
law.
(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, ag ency 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 whats oever organized and
existing under the laws of any foreign country or of any political
subdivision or governmental entity thereof.
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(f) "Project" shall mean any plant, works, system, facilities
and real and personal property of any nature whatsoever, toget her
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, extracti on, processing,
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 th is 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 alread y 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 1 76 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
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has as its beneficiary a municipality and which owns, maintains or
operates an electrical energy ge neration, 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.
SECTION 3. AMENDATORY 11 O.S. 2021, Section 24-107, is
amended to read as follows :
Section 24-107. (a) The Authority shall have and is her eby
authorized to exercise all po wers, 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.
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(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 co operate with other persons in the
development of sources and supplies of electrical energy and fuel
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 perso n 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 employees 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.
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(h) The Authority may, individually or joint ly with other
persons, acquire, own, hire, 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 interes ts in real property, including
projects existing, proposed or under construction, and make
improvements thereon.
(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 r ate 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 arrang ement, and containing 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 Management and the Council of
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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
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 inte rest therein, on such
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 service s, power supply development 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 and services generally without regard
to a specific project and may be for the supply of a specific
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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 exercis e of the powers granted by this act,
including, without limitation, contracts or agreements for the
purchase, sale, excha nge, interchange, wheeling, pooli ng,
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 Directors 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 investments, 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
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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 thereunder 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
the extent deemed appropriate, the acquisitio n by nondefaulting
parties of all or any 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 det ermined
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 proje ct. 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
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any person which is a joint owner of such project; provided,
however, the appropriate allocati ons of the costs of c onstruction,
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 a ctivities 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
laws or regulations which may be appli cable to any of the 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 of 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 g ifts, grants
or loans of funds or property or financial or other aid in any form
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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
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, or (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 S ections 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 for th 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:
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Section 24-116. All meetings of the Authority shall be subject
to the provisions of the Ok lahoma 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:
Section 24-117. This act and all the terms and provisions
hereof shall be liberally construed to effectuate the p urposes 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.
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Passed the House of Representatives the 10th day of March, 2022.
Presiding Officer of the Hou se
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senate