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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
HOUSE BILL 4099 By: Frix
AS INTRODUCED
An Act relating to public finance; authorizing
issuance of certain net amount of obli gations by
Oklahoma Capitol Improvement Authority for funding of
certain projects for the Oklahoma Historical Society;
providing for debt retirement payments; directing how
title is to be held and w hen it is to be transferred;
authorizing capitalization of certain interest for
specified period of time; statin g legislative intent;
requiring Authority to pay certain fees and costs
under certain circumstances; providing methods of
issuance for obligatio ns; authorizing hiring of
certain professionals; authorizi ng payment of certain
costs by creating reserves; limi ting maturity of
obligations; providing for utilization of certain
interest earnings; providing tax exemption; providing
for investment of certa in monies; requiring
compliance with certain statutory pro visions;
providing for codification; and providing an
effective date.
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 Statu tes as Section 391 of Title 73, unless there is
created a duplication in num bering, reads as follows:
A. In addition to any other authorization provided by law, the
Oklahoma Capitol Improvement Authority is authorized to issue
obligations to acquire real property, together with improvements
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located thereon, and personal pro perty, for purposes of
construction, repair and rehabilitation and improvements to real and
personal property, of existing Oklahoma Historical Society
facilities in a total amount necessary to generate net proceeds of
Forty-six Million Dollars ($46,000,000.00) after providing for cost
of issuance, credit enhancement, reserves, and other associated
expenses related to th e financing. Provided, no proceeds authorized
by this section shall be expended on the Oklahoma Museum of Popular
Culture created by Section 2294 of Title 74 of the Oklahoma
Statutes.
B. The Authority may hold title to the real and p ersonal
property and improvements until such time any obligations issue d for
this purpose are retire d or defeased and may lease the real proper ty
and improvements to the Oklahoma Historical Society. Upon final
redemption or defeasance of the obligations created pursuant to this
section, title to the real and personal property and improvements
shall be transferred from the Authority to the Oklahoma Historical
Society.
C. For the purpose of paying costs for acquisition and
construction of the real property and improvements and personal
property and making the repairs, planning, staging, refurbishments,
and improvements to real and personal property, and providing
funding for the project authorized in subsection A of this section,
and for the purpose authorized in subsecti on D of this section, the
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Authority is hereby authorized to b orrow monies on the credit of the
income and revenues to be der ived from the leasing of such real and
personal property, parking facilities, and im provements and, in
anticipation of the collection of such income and revenues, to issue
negotiable obligations in a total amount necessary to generate
Forty-six Million Dollars ($46,000,000.00) in project funds, whether
issued in one or more series. The Authority is authorized to
capitalize interest on the obligations issue d pursuant to the
authority granted by this section for a period not to exceed two (2)
years from the date of issuance.
D. For the fiscal year ending June 30, 2023, and subsequent
fiscal years, it is the intent of the Legislature to appropr iate to
the Oklahoma Historical Society sufficient mon ies to make rental
payments for the purposes of retiring the obli gations created
pursuant to this section. To the extent funds are available from
the proceeds of the borrowing authorized by subsection C , the
Authority shall provi de for the payment of professional fees an d
associated costs related to the projects authorized i n subsection A
of this section.
E. The Authority may issue obligations in one or more series
and in conjunction with other issues of the Authorit y. The
Authority is authorized to hire bond coun sel, financial consultants,
and other such other professionals as it may deem necessary to
provide for the efficient sale of the obligations and may utilize a
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portion of the proceeds of any borrowing to create such reserves as
may be deemed necessary and to pay costs associa ted with the
issuance and administration of such obligations.
F. The obligations authorized under this sec tion 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 agreements with such
credit enhancers and liquidity providers as may be determined
necessary to efficiently market the obligation s. The obligations
may mature and have such provisions as sha ll be determined by the
Authority, but in no event shall the final maturity of su ch
obligations occur later than tw enty-five (25) years from the first
principal maturity date.
G. Any interest earnings on funds or accounts created for the
purposes of this section may be u tilized as partial payment of the
annual debt service or fo r the purposes directed by the Authority .
H. The obligations issued under this section, the transfer
thereof, and the interest earned on such obligations, in cluding any
profit derived from the sale thereof, shall not be subject to
taxation of any kind by the State of Oklahoma, or by a ny county,
municipality, or political subdivision therein.
I. The Authority may direct the inve stment of all monies in any
funds or accounts created in connection with the offering of the
obligations authorized under this section. Such investments shall
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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.
J. Insofar as they are not in conflict with the provisions of
this section, the provisions of Se ction 151 et seq. of Title 73 of
the Oklahoma Statutes shall apply to this section.
SECTION 2. This act shall become effective November 1, 2022.
58-2-10218 KN 01/18/22