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SENATE FLOOR VERSION
March 1, 2022
SENATE BILL NO. 1343 By: Howard and Hall of the
Senate
and
Moore of the House
An Act relating to municipal and county bonds ;
amending 19 O.S. 2021, S ection 781, which relates to
authorization of county bonds; providing exception;
updating statutory language; amending 63 O.S. 2021,
Section 1-719, which relates to bonds of counties,
cities, and towns; providing exception; amending 62
O.S. 2021, Section 802, which relates to definitions;
modifying definition of qualified economic or
community development purpose to include certain
governmental and public health faci lities; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
SECTION 1. AMENDATORY 19 O.S. 2021, Section 781, is
amended to read as follows:
Section 781. All counties in the State of Oklahoma this state
are hereby authorized to issue bonds for the purpose of purchasing
sites, erecting and c onstructing county hospitals , including
alterations, additions to, and enlargements of existing hospi tal
buildings in such the county, such bonds to be issued as hereinafter
provided, except as provided in the Municipal and County Economic
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and Community Development Bonds Act pursuant to Section 800 et seq.
of Title 62 of the Oklahoma Statutes .
SECTION 2. AMENDATORY 63 O.S. 2021, Section 1 -719, is
amended to read as follows:
Section 1-719. Any county, city, or town is hereby author ized
to issue bonds for construct ing and equipping a hospital, community
mental health facility, public health center, or related health
facility, to be owned and o perated by such county, city, or town in
accordance with standards approved by the State Com missioner of
Health; provided, th at such bonds may be issued to construct a
jointly owned and ope rated hospital, community mental health
facility, public health cen ter, or related health facility, by two
or more counties, or by one or more counties and a c ity or cities,
or by two or more cities. Such Except as provided in the Municipal
and County Economic and Community Development Bonds Act pursuant to
Section 800 et seq. of Title 62 of the Oklahoma Statutes , the bonds
shall be issued upon the assent there to of three-fifths (3/5) of the
voters of the subdivision issuing the bonds , voting at an election
held for that purpose. The proposition voted on shall state
specifically the type of h ospital facility to be constructed. Such
election shall be called by t he governing board or managing b ody of
such subdivision. Notice of the ele ction shall be published for two
(2) successive weeks in a weekly or daily newspaper, having a
general circulation in the subdivision. The bonds shall be made to
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mature serially as now provided by law, and shall be sold at an
advertised sale under existin g laws. The rate of interest shall not
exceed eight percent (8%) per annum. The bonds shall be submitted
to the Attorney General for his approval as ex officio B ond
Commissioner of the state.
SECTION 3. AMENDATORY 62 O.S. 2021, Section 802, is
amended to read as follows:
Section 802. As used in the Municipal and County Economic and
Community Development Bonds Act:
1. “Amortization” means the reduction of bonded indebtedness by
making annual or fiscal year payments of principal and interest
sufficient to pay off bonds by their stated maturity;
2. “Annual maturing principal plus interest shall be as nearly
equal as practicable throughout the term of the is sue” means that
the total annual or fiscal year debt service, except for short
periods, must be approximately equal for every annual or fiscal
period, provided each net annual or fiscal year debt service payment
in relation to all other net annual or fisca l year payments must be
made within a dollar amount range not to exceed twice the stated
denomination of the bonds;
3. “Debt service” means money required, pursuant to the terms
of issuance, for payments of principal and int erest due on
outstanding bonds;
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4. “Level principal debt servi ce payments” means the amount of
principal retired annually or during a fisca l year with respect to
outstanding bonds shall be equal;
5. “Qualified economic or community development purpose ” means
the use of bond proceeds f or the acquisition, construction ,
development and/or equipping of the following projects or programs:
a. industrial facilities, including manufacturing,
maintenance, servicing, warehouse , wholesale
distribution, and transport ation facilities,
b. tourism facilities, including recreation o r
entertainment facilities, theme parks, cultural and
historic sites,
c. sports facilities, including arenas, stadiums,
ballparks, and golf courses,
d. agricultural facilities , including grain elevators,
cotton gins, compres ses, livestock barns, and other
commodity processing facilities,
e. defense industry facilities , including office
facilities, security facilities, and the acquisition
of land for clear zones or to implement noise
abatement zoning,
f. redevelopment programs , including the acquisition of
real property in a designated blighted area and the
rehabilitation of such pro perty, the clearing and
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preparation of land for redevelopment, the transfer o f
interests in the property to nongover nmental persons
for fair market value, and the relocation of oc cupants
of the real property acquired,
g. governmental facilities , including city halls,
courthouses, administration buildings, and police and
fire stations, county jails, detention facilities, and
emergency or first respons e facilities,
h. community facilities, including parks, senior citizens
centers, shelters for homeless or abused persons, and
juvenile centers,
i. public infrastructure facilities , including highways,
roads, streets, bridges, sewers, traffic control
systems and devices, telecommunication s systems,
wastewater and water distribution and supply systems,
curbing, sidewalks and any similar public
improvements, gas and electric production,
distribution and transmission facilities, c ommon
utility or service facili ties, landscaping, parking,
and water detention/retention systems, and
j. economic development programs , including but not
limited to job creation payments, low interest , and/or
forgivable loans, and
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k. public health faciliti es including but not limited to
county or public hospitals, cli nics, emergency medical
service facilities, and county health department
facilities;
6. “Short periods” means the period of time preceding the
beginning of full amortization of principal and interest due on
bonds;
7. “True interest cost” means the rate used to discount the
amounts payable on the respective principal and interest ma turity
dates which yields a result equal to the purchase price received fo r
bonds; and
8. “Ultimate user” means the industry on whose behalf bon ds are
issued.
SECTION 4. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
March 1, 2022 - DO PASS