Oklahoma 2022 Regular Session

Oklahoma House Bill HB3995 Compare Versions

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29-SENATE FLOOR VERSION
30-March 31, 2022
31-
32-
3328 ENGROSSED HOUSE
3429 BILL NO. 3995 By: Dobrinski of the House
3530
3631 and
3732
3833 Leewright of the Senate
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4340 An Act relating to cities and towns; amending 11 O.S.
4441 2021, Section 24-104, which relates to members of the
4542 Oklahoma Municipal Power Authority election
4643 committee; clarifying language of applicability in
4744 regards to filing date; amending 11 O.S. 2021,
4845 Section 24-105, which relates to defini tions;
4946 modifying terms; amending 11 O.S. 2021, Section 24-
5047 107, which relates to the powers, rights, and
5148 privileges of the Authority; changing office
5249 responsible for approving actions taken b y the
5350 Authority; modifying when the Authority may not sell
5451 output; modifying applicability ; amending 11 O.S.
5552 2021, Section 24-116, which relates to meetings and
5653 records of the Authority; changing citation to
5754 applicable statute; amending 11 O.S. 20 21, Section
5855 24-117, which relates to construction of act;
5956 modifying limitation on the Authority ; repealing 11
6057 O.S. 2021, Section 24-105.1, which relates to joint
6158 interest in electric generation project; repealing 11
6259 O.S. 2021, Section 24 -114, which relates to
6360 acquisition and construction contracts; repealing 11
6461 O.S. 2021, Section 24-120, which relates to personnel
6562 included in unclassified service ; and providing an
6663 effective date.
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7168 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
7269 SECTION 1. AMENDATORY 11 O.S. 2021, Section 24-104, is
7370 amended to read as follow s:
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10197 Section 24-104. (a) (i) Election Committee. The Authority
10298 shall be governed by a Board of Directors c onsisting of seven
10399 members or such greater number, b ut in no event more than eleven
104100 members, as provided in the bylaws of the Authority as in effect
105101 from time to time. Members of the Board of Directors of the
106102 Authority shall be eligible to succeed themsel ves and shall be
107103 elected by the election committee a s hereinafter provided in this
108104 section. On or before the 90th day following the eff ective date of
109105 this act, each of those eligible public agencies which shall have,
110106 prior to such 90th day, by proper reso lution of its governing body
111107 or its public trust, de clared its intention to participate, or to
112108 have any public trust operating its elect ric system participate,
113109 with the Authority in the development of power supply resources,
114110 shall designate one person as i ts representative on the election
115111 committee. All such resolutions of declaration of intention to
116112 participate with the Authority shall b e filed with the Secretary of
117113 State and shall be presented to the election committee at its first
118114 meeting which shall be held in the office of the Municipal Electric
119115 Systems of Oklahoma at 11:00 a.m. on the first Tuesday following
120116 such 90th day. At such meeting the election committee s hall
121117 organize and elect a chairman and such other officers as may be
122118 desirable in the dete rmination of the election committee. The
123119 election committee shall then determine the sufficiency of the
124120 resolutions presented to it.
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152147 (ii) Election Committee Voting. For purposes of voting upon
153148 any matter which may properly come before the election commi ttee,
154149 each representative shall have one vote unless otherwise provided in
155150 the bylaws of the Authority as in effect from time to time. The
156151 presence at any meeting of the election committee of representatives
157152 entitled to cast a majority of the total votes to which the election
158153 committee shall be entitled sh all, unless otherwise provided in the
159154 bylaws of the Authority as in effect from time to time, constitute a
160155 quorum of the election committee.
161156 (iii) Bylaws of the Authority.
162157 (A) The bylaws of the Authorit y shall be adopted by the
163158 election committee of the Authority by a majority vote
164159 of the election committee and may thereafter be
165160 amended at any time and from time to t ime in whole or
166161 in part by the election committee or by the Board of
167162 Directors by a major ity of the total votes entitled to
168163 be cast at any properly called and constituted meeting
169164 thereof, provided, however, that any such amend ment
170165 shall not violate the pro visions of Section 19 hereof
171166 24-119 of this title.
172167 (B) The bylaws of the Authority shall provide the
173168 following:
174169 (1) the time, place, manner of calling, notice,
175170 quorum and voting provisions, and other
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203197 procedural rules for regular and special meeti ngs
204198 of the election committee of the Authority;
205199 (2) the time, place, manner of calling, notice,
206200 quorum and voting provisions, and other
207201 procedural rules for regular and special meetings
208202 of the Board of Directors of the Authority;
209203 (3) provisions for the n umber, election, term of
210204 office and removal of members of the Board of
211205 Directors and for filling vacancies on the Board
212206 of Directors;
213207 (4) the titles, duties and manner of election,
214208 removal and replacement of officers of the
215209 Authority;
216210 (5) provisions governing when the Authority may
217211 dissolve and the disposition of property of the
218212 Authority and the pr ocedures to be followed in
219213 the event of such a disso lution, provided,
220214 however, that any such dissolution shall not
221215 violate the provisions of Section 19 hereof 24-
222216 119 of this title; and
223217 (6) such other rules for regulating the affairs of
224218 the Authority as the election committee or the
225219 Board of Directors may d eem necessary or
226220 advisable.
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254247 (iv) Board of Directors. The initial members of the Board of
255248 Directors of the Authority shall be elected by the election
256249 committee of the Authority. Members of the Board of Directors of
257250 the Authority shall be residents of the State of Oklahoma. Members
258251 of the Board of Directors of the Authority may, but need not, be
259252 members of the election commi ttee. Each member of the Board of
260253 Directors of the Authority shall hold office u ntil the adjournment
261254 of the annual meeting of the Bo ard of Directors held at, or nearest
262255 to, the expiration of his the Director's term of office as provided
263256 in the bylaws of the Authority and until his a successor is elected.
264257 (b) Additional Members of Ele ction Committee. Each eligible
265258 public agency declaring its intention, by proper resolution of its
266259 governing body, to participate, or to have any public trust
267260 operating its electric system participate, with the Authority in the
268261 development of power supply resources after the 90th day following
269262 the effective date of this act shall promptly file such resolution
270263 with the Secretary of State and give written notice to the Authority
271264 of the adoption of such resolution and shall then designate one
272265 person as an additional member of the election committee who se term
273266 shall begin with the first meeting of the election committee which
274267 is held following the expiration of ten (10) days from th e date of
275268 receipt of notice of the adoption of such resolution by the
276269 Authority. Members of the election committee shall se rve at the
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304296 pleasure of the governing body of the eligible public agency by
305297 which they were appointed.
306298 SECTION 2. AMENDATORY 11 O.S. 2021, Section 24-105, is
307299 amended to read as follows :
308300 Section 24-105. As used in this act the f ollowing words shall
309301 have the following meanings unless the context clearly indicates
310302 otherwise:
311303 (a) "Authority" shall mean the Oklahoma Municipal Power
312304 Authority hereby created and any successor or successors thereto.
313305 Any change in name or composition of the Authority shall i n no way
314306 affect the vested rights of any person under the provisions of this
315307 act or impair the obligations of any contracts existing under this
316308 act.
317309 (b) "Board of Directors" shall mean the Board of Director s
318310 elected by the election c ommittee as set forth in Section 4 24-104
319311 of this act title which shall exercise all the powers and manage and
320312 control all the affairs and property of the Authority unless
321313 otherwise specifically provided herein or in the bylaws of the
322314 Authority as in effec t from time to time.
323315 (c) "Bonds" shall mean any revenue bonds, notes or other
324316 evidences of obligations of the Authority issued by the Authority
325317 under the provisions of this act, including, without limitation,
326318 bond anticipation notes and refunding bonds.
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354345 (d) "Eligible public agency" shall mean any municipality,
355346 authority or other public body which owns, maintains or operates an
356347 electrical energy generation , transmission or distribution system
357348 within the State of Oklahoma on the date on which this act becom es
358349 law.
359350 (e) "Person" shall mean (i) any natural person; (ii) any
360351 eligible public agency as defined herein; (iii) any public trust as
361352 defined herein; (iv) the United States, any state, any municipality,
362353 political subdivision, municipal corporation, unit of local
363354 government, governmental unit or public corporation created by or
364355 pursuant to the laws of the United States or any state, or any
365356 board, corporation or other entity or body declared by the laws of
366357 the United States or any state to be a department, ag ency or
367358 instrumentality thereof; (v) any corporation, not for profit
368359 corporation, firm, partnership, cooperative association, electric
369360 cooperative or business trust of any nature whatsoever organized and
370361 existing under the laws of the United States or any state; or (vi)
371362 any foreign country, any political subdivision or governmental unit
372363 of any foreign country or any corporation, not for profit
373364 corporation, firm, partnership, cooperative association, electric
374365 cooperative or business trust of any nature whats oever organized and
375366 existing under the laws of any foreign country or of any political
376367 subdivision or governmental entity thereof.
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404394 (f) "Project" shall mean any plant, works, system, facilities
405395 and real and personal property of any nature whatsoever, toget her
406396 with all parts thereof and appurtenances thereto, located within or
407397 without the State of Oklahoma, used or useful in the generation,
408398 production, transmission, purchase, sale, exchange or interchange of
409399 electrical energy and in the acquisition, extracti on, processing,
410400 transportation or storage or of fuel of any kind for any such
411401 purposes or any interest in, or right to the use, services, output
412402 or capacity, of any such plant, works, system or facilities;
413403 provided, however, a project shall not include (i) any interest in
414404 any plant for the generation of electrical energy which is to be
415405 owned jointly with any investor -owned utility if such plant is not
416406 existing on May 10, 1981, or (ii) any interest in any nuclear
417407 powered generating plant. For purposes of th is definition, a plant
418408 shall be considered to be existing if construction shall have been
419409 commenced at the plant site, if orders have been placed for majo r
420410 components of equipment or if the plant is to consist of an
421411 additional unit at the site of an alread y existing unit which will
422412 use in common any of the existing facilities at such site .
423413 (g) "Public trust" shall mean any public trust created and
424414 existing under the provisions of the Trusts for Furtherance of
425415 Public Functions Law, as provided by Sections 1 76 et seq. of Title
426416 60 of the Oklahoma Statutes, and the Oklahoma Trust Act, as provided
427417 by Sections 175 et seq. of Title 60 of the Oklahoma Statutes, whi ch
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455444 has as its beneficiary a municipality and which owns, maintains or
456445 operates an electrical energy ge neration, transmission or
457446 distribution system serving the residents and consumers of such
458447 municipality and existing on the date on which this act becomes law
459448 or created hereafter with an eligible public agency as the
460449 beneficiary.
461450 SECTION 3. AMENDATORY 11 O.S. 2021, Section 24-107, is
462451 amended to read as follows :
463452 Section 24-107. (a) The Authority shall have and is her eby
464453 authorized to exercise all po wers, rights and privileges enumerated
465454 in this section. Such powers, rights and privileges shall be
466455 exercised by its Board of Directors unless otherwise specifically
467456 provided herein or by the bylaws of the Authority as in effect from
468457 time to time.
469458 (b) The Authority may plan, finance, acquire, construct,
470459 reconstruct, own, lease, opera te, maintain, repair, improve, extend
471460 or otherwise participate, individually or jointly with other
472461 persons, in one or more projects, proposed, existing or under
473462 construction, and may act as agent, or designate one or more
474463 persons, whether or not participat ing in a project, to act as its
475464 agent, in connection with the planning, financing, acquisition,
476465 construction, reconstruction, ownership, lease , operation,
477466 maintenance, repair, extension or improvement of the project.
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505493 (c) The Authority may investigate the desirability of and
506494 necessity for additional sources and supplies of electrical energy
507495 and fuel and other supplies of any kind for such purpos e, and make
508496 studies, surveys and estimates as may be necessary to determine the
509497 feasibility and cost thereof.
510498 (d) The Authority may co operate with other persons in the
511499 development of sources and supplies of electrical energy and fuel
512500 and other supplies of any kind for such purposes, and give
513501 assistance with personnel and equipment in any project.
514502 (e) The Authority m ay apply to any perso n for consents,
515503 authorizations or approvals required for any project within its
516504 powers and take all actions necessary to comply with the conditions
517505 thereof.
518506 (f) The Authority may perform any act authorized by this act
519507 through, or by means of, its officers , agents or employees or by
520508 contract with any person, including, without limitation, the
521509 employment of engineers, archite cts, attorneys, appraisers,
522510 financial advisors and such other consultants and employees as may
523511 be required in the judgment of the Board of Directors, and fix and
524512 pay their compensation from funds available to the Authority
525513 therefor.
526514 (g) The Authority may acquire, hold, use and dispose of income,
527515 revenues, funds and money.
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555542 (h) The Authority may, individually or joint ly with other
556543 persons, acquire, own, hire, use, operate and dispose of personal
557544 property and any interest therein.
558545 (i) The Authority may, ind ividually or jointly with other
559546 persons, acquire, own, use, lease as lessor or lessee, operate and
560547 dispose of real property and interes ts in real property, including
561548 projects existing, proposed or under construction, and make
562549 improvements thereon.
563550 (j) The Authority may grant the use by f ranchise, lease or
564551 otherwise and make charges for the use of any property or faci lity
565552 owned or controlled by it.
566553 (k) The Authority may borrow money and issue negotiable bonds,
567554 secured or unsecured, in accordance with this act, and may enter
568555 into interest rate swaps and other derivative products, and other
569556 financial instruments intende d to hedge interest r ate risk or manage
570557 interest rate costs, including any option to enter into or terminate
571558 any of them, that the Authority d eems to be necessary or desirable
572559 in connection with any bonds issued prior to, at the same time as,
573560 or after entering into such arrang ement, and containing such terms
574561 and provisions, and may be with such parties, as determined by the
575562 Authority. Provided, any action taken by the Authorit y pursuant to
576563 this subsection must first be approved by the Office of the State
577564 Bond Advisor Deputy Treasurer for Debt Management and the Council of
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605591 Bond Oversight pursuant to the provisions of the Oklahoma Bond
606592 Oversight and Reform Act.
607593 (l) The Authority may invest money of the Authority not
608594 required for immediate use, including proc eeds from the sale of any
609595 bonds.
610596 (m) The Authority may exercise the power of eminent domain in
611597 accordance with the provisions of Section 24-110 of this title.
612598 (n) The Authority may determine the location and character of,
613599 and all other matters in connect ion with, any and all projects it is
614600 authorized to acquire, hold, establish, effectuate, operate or
615601 control.
616602 (o) The Authority may contract w ith any person for the
617603 planning, development, construction, operation, sale or lease as
618604 lessor or lessee of any pr oject or for any inte rest therein, on such
619605 terms and for such period of time as its Board of Directors shall
620606 determine.
621607 (p) The Authority may contract with any eligible publi c agency,
622608 any public trust, or any other person for the sale of power and
623609 energy, transmission service s, power supply development services or
624610 other services within or without the State of Oklahoma on such terms
625611 and conditions as the Board of Directors shal l approve. Any such
626612 contract may be for the sale of output and services of a par ticular
627613 project or may be for output and services generally without regard
628614 to a specific project and may be for the supply of a specific
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656641 quantity of output or a percentage of the output of a specific
657642 project or other specific facility or may be based on th e
658643 requirements of the purchaser or may be on such other terms and
659644 conditions as the Board of Directors deems appropriate.
660645 (q) The Authority m ay enter into any contract or agr eement
661646 necessary, appropriate or incidental to the effectuation of its
662647 lawful purposes and the exercis e of the powers granted by this act,
663648 including, without limitation, contracts or agreements for the
664649 purchase, sale, excha nge, interchange, wheeling, pooli ng,
665650 transmission or storage of electric power and energy, and fuel and
666651 other supplies of any kind for any such purposes, within and without
667652 the State of Oklahoma, in such amounts as it shall determine to be
668653 necessary and appropriate to make the most effect ive use of its
669654 powers and to meet its responsibilities, on such terms and for suc h
670655 period of time as the Board of Directors determines, and derivative
671656 or other instruments intended to hedge fuel cost risk associated
672657 with any projects or power purchases or supply arrangements of the
673658 Authority, or to hedge fixed or variable interest rate exposure
674659 associated with permitted investments, including any option to enter
675660 into or terminate any of them, that the Authority deems to be
676661 necessary or desirable, and contai ning such terms and provisions,
677662 and may be with such parties, as determined by th e Authority.
678663 (r) In any case in which the Authority participates in a
679664 project as a joint owner with one or more persons, the Authority may
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707691 enter into an agreement or agreemen ts with respect to such project
708692 with the other person or persons participating th erein, and any such
709693 agreement may contain such terms, conditions and provisions
710694 consistent with the provisions of the act as the parties there to
711695 shall deem to be in their best interest. Any such agreement may
712696 include, but need not be limited to, provision s defining what
713697 constitutes a default thereunder and providing for the rights and
714698 remedies of the parties thereto upon the occurrence of such a
715699 default deemed appropriate by t he Board of Directors including, to
716700 the extent deemed appropriate, the acquisitio n by nondefaulting
717701 parties of all or any part of the defaulting party's interest;
718702 provisions setting forth such restraints on alienation of th e
719703 interests of the parties in the project as the Board of Directors
720704 deems appropriate; provisions for the construc tion, operation and
721705 maintenance of such electric generation or transmission facility by
722706 any one or more of the parties to such agreement which party or
723707 parties shall be design ated in or pursuant to such agreement as
724708 agent or parties thereto or by such othe r means as may be det ermined
725709 by the parties thereto; and provisions for a method or methods of
726710 determining and allocating, among or between th e parties, costs of
727711 construction, operation, maintenance, renewals, replacements,
728712 improvements and disposals with respect to such proje ct. In
729713 exercising its power to participate in a project as a joint owner
730714 with one or more persons, the Authority may not loan its credit to
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758741 any person which is a joint owner of such project; provided,
759742 however, the appropriate allocati ons of the costs of c onstruction,
760743 operation, maintenance, renewals, replacements, improvements and
761744 disposals with respect to such project betw een the Authority and
762745 such persons shall not be a loan of credit by the Authority to such
763746 persons. In carrying ou t its functions and a ctivities as such agent
764747 with respect to construction, operation and maintenance of a
765748 project, such agent shall be governe d by the laws and regulations
766749 applicable to such agent as a separate legal entity and not by any
767750 laws or regulations which may be appli cable to any of the other
768751 participating parties. Notwithstanding anything contained in any
769752 other law to the contrary, pu rsuant to the terms of any such
770753 agreement, the Authority may delegate its powers and duties with
771754 respect to the construction, operation and maintenance of such
772755 project to the person acting as agent; and all actions taken by such
773756 agent in accordance with th e provisions of such agreement ma y be
774757 made binding upon the Authority without further action or approval
775758 by the Authority.
776759 (s) The Authority may procure insurance against any losses in
777760 connection with its property, operations or assets in such amounts
778761 and from such insurers as it deems d esirable, or may self-insure
779762 against such losses.
780763 (t) The Authority may contract for and accept any g ifts, grants
781764 or loans of funds or property or financial or other aid in any form
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809791 from any person, and may comply, subject to the provisions of this
810792 act, with the terms and conditions thereof.
811793 (u) The Authority may adopt a corporate se al and may sue or be
812794 sued.
813795 (v) The Authority may exercise all other powers not
814796 inconsistent with the Constitution of the State of Oklahoma or the
815797 United States Constitution, which powers may be reasonably necessary
816798 or appropriate for or incidental to effe ctuate its authorized
817799 purposes or to the exercise of any of the powers enumerated in this
818800 act.
819801 (w) Notwithstanding any other provision herein seemingly to the
820802 contrary, the Authority may not sell output (i) at retail to the
821803 ultimate consumers thereof, or (ii) to any municipality which does
822804 not qualify as an eligible public agency under the definition set
823805 forth in subsection (d) of Section 24-105 of this title, or (iii) to
824806 any trust created and existing under the provisions of the Local
825807 Industrial Development Act, as provided by S ections 651 et seq. of
826808 Title 62 of the Oklahoma Statutes, or the Trusts for Furtherance of
827809 Public Functions Law, as provi ded by Sections 176 et seq. of Ti tle
828810 60 of the Oklahoma Statutes, which does not qualify as a public
829811 trust under the definition set for th in subsection (g) of Section
830812 24-105 of this title own an electrical energy distribution system .
831813 SECTION 4. AMENDATORY 11 O.S. 2021, Section 24-116, is
832814 amended to read as follows:
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860841 Section 24-116. All meetings of the Authority shall be subject
861842 to the provisions of the Ok lahoma Open Meeting Act, as provided by
862843 Sections 301 et seq. of Title 25 of the Oklahoma Statutes. All
863844 records of the Authority shall be subject to the provisions of
864845 Section 24 the Oklahoma Open Records Act, as provided by Section
865846 24A.1 et seq. of Title 51 of the Oklahoma Statutes.
866847 SECTION 5. AMENDATORY 11 O.S. 2021, Section 24-117, is
867848 amended to read as foll ows:
868849 Section 24-117. This act and all the terms and provisions
869850 hereof shall be liberally construed to effectuate the p urposes set
870851 forth herein; provided, however, nothing in this act shall be
871852 construed to authorize the Authority to loa n its credit to any
872853 investor-owned utility nor to acquire or subsidize any nuclear
873854 powered generating plant.
874855 SECTION 6. REPEALER 11 O.S. 2021, Section 24-105.1, is
875856 hereby repealed.
876857 SECTION 7. REPEALER 11 O.S. 2021, Section 24-114, is
877858 hereby repealed.
878859 SECTION 8. REPEALER 11 O.S. 2021, Section 24-120, is
879860 hereby repealed.
880861 SECTION 9. This act shall become effective November 1, 2022.
881-COMMITTEE REPORT BY: COMMITTEE ON ENERGY
882-March 31, 2022 - DO PASS
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888+Passed the House of Representatives the 10th day of March, 2022.
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893+ Presiding Officer of the Hou se
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897+Passed the Senate the ___ day of __________, 2022.
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