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ENGROSSED SENATE
BILL NO. 1083 By: Thompson and Hall of the
Senate
and
Wallace and Hilbert of the
House
An Act relating to public finance; amending Section
1, Chapter 338, O.S.L. 2017 (73 O.S. Supp. 2020,
Section 347), which relates to financing authority
for construction of the State Health Laboratory;
providing certain deadline for authorized actions;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 1, Chapter 338, O.S.L.
2017 (73 O.S. Supp. 2020, Section 347), is amended to read as
follows:
Section 347. A. The Oklahoma Capitol Improvement Authority is
authorized to issue notes, bonds , or other evidences o f obligation
in an amount necessary to generate net proceeds of Fifty -eight
Million Five Hundred and Fifty-five Thousand Dollars
($58,555,000.00) after pro viding for costs of issuance, credit
enhancement, reserves , and other associated expenses related to
financing. Net proceeds of the financing will be deposited into a
construction fund to provide for the financing of acquisition of
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real property, together with improvements located thereon, and
personal property, to construct buildings and other improveme nts to
real property and to acquire property for office space and to
provide funding for the construction of a new State Health
Laboratory for the State De partment of Health with debt retirement
payments to be made as provided in this section.
B. The Authority may hold title to the real and personal
property and improvements unti l such time as any obligations issued
for this purpose are retired or defeased and may lease the real
property and improvements to the State Department of Health. Upon
final redemption or defeasance of the obligations created pursuant
to this section, tit le to the real and personal property and
improvements shall be transferred from the Authority to the
Department.
C. For the purpose of paying the costs for acquisition and
construction of the real property and improvements and personal
property and providing funding for the project authorized in
subsection A of this section, and for the purpose authorized in
subsection D of this section, the Authority is hereby authorized to
borrow monies on the credit of the income and revenues to be derived
from the leasing of such real and personal property and improvements
and, in anticipation of the collection of such income and revenues,
to issue negotiable obligations in one or more series. The
Authority is authorized to capitalize interest on the obligations
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issued pursuant to this section for a period of time not to exceed
one (1) year from the date of issuance. Excluding any capitalized
interest period, it is the intent of the Legislature to appropriate
to the State Department of Health sufficient monies to make rental
payments for the purposes of retiring obligations created pursuant
to this section.
D. To the extent funds are available from the proceeds of the
borrowing authorized by su bsection C of this section, the Authority
shall provide for the payment of p rofessional fees and associated
costs related to the project authorized in subs ection A of this
section.
E. The Authority may issue obligations in one or more series
and in conjunction with other issues of Authority. The Authority is
authorized to hire b ond counsel, financial consultants, and other
professionals as it may deem nece ssary to provide for the efficient
sale of the obligations and may utilize a portion of the proceeds of
any borrowing to create such reserves as may be deemed necessary and
to pay costs associated with the issuance and administration of such
obligations.
F. The obligations authorized under this section 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
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necessary to efficiently market th e obligations. The obligations
may mature and have such provisions for rede mption as shall be
determined by the Authority, but in no event shall the final
maturity of such obligations occur later than twenty (20) years from
the first principal maturity da te.
G. 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 o r for the purposes directed by the Authority.
H. The obligations issued under this section, the tran sfer
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 State of Oklahoma, or by any county,
municipality or political subdivision therein.
I. The Authority may direct the investment of all monies in any
funds created in conn ection with the offering of the obligations
authorized under this section. The 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.
J. Insofar as they are not in conflict with the provisions of
this section, the provisions of Section 151 e t seq. of Title 73 of
the Oklahoma Statutes shall apply to this section.
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K. Upon the effective date of this act, if the O klahoma Capitol
Improvement Authority has not issued notes, bonds or other evide nces
of obligation authorized pursuant to this section on or before July
1, 2025, the provisions of this section shall cease to be operative
after July 1, 2025.
SECTION 2. This act shall becom e effective July 1, 2021.
SECTION 3. It being immediately necessary for the preserva tion
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason wh ereof this act shall take effect and
be in full force fro m and after its passage and approval.
Passed the Senate the 18th day of May, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2021.
Presiding Officer of the House
of Representatives