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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
SENATE BILL 1529 By: Leewright
AS INTRODUCED
An Act relating to the Oklahoma Municipal Powe r
Authority Act; amending 11 O.S. 202 1, Section 24-104,
which relates to members; delet ing certain time
restraint; updating statutory language; amending 11
O.S. 2021, Section 24 -105, which relates to
definitions; modifying definitions; amending 11 O.S.
2021, Section 24-107, which relates to powers,
rights, and privileges of authority; updati ng
statutory language; deleting certain entities to
which the Authority may not sell output; amending 11
O.S. 2021, Section 24 -114, which relates to
acquisition and construction contracts; deleting
requirement that the Authority be sub ject to the
Competitive Bidding Act; amending 11 O.S. 2021, 24 -
116, which relates to meetings and records;
correcting statutory reference; amending 11 O.S.
2021, Section 24-117, which relates to construction;
modifying certain construction; repealing 11 O. S.
2021, Section 24-105.1, which relates to joint
interest in electric genera tion project; repealing 11
O.S. 2021, Section 24 -120, which relates to personnel
to be included in unclassified service; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF TH E STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 11 O.S. 2021, Section 24-104, is
amended to read as follows:
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Section 24-104. (a) (i) A. 1. Election Committee. The
Authority shall be governed by a Board of Directors consisting of
seven members or such greater number, but in no event more than
eleven members, as provide d 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 themselves and shall b e
elected by the election committee as hereinafter provided in this
section. On or befo re 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 resolution of its g overning body
or its public trust, declared its intention to participate, or to
have any public trust operating its elect ric system participate,
with the Authority in the development of power supp ly resources,
shall designate one person as its representati ve 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 of fice of the Municipal Electric
Systems of Oklahoma at 11:00 a.m. on the first Tuesday fo llowing
such 90th day. At such meeting the election committee shall
organize and elect a chairman and such other officers as may be
desirable in the determination of t he election committee. The
election committee shall then determine the sufficiency of th e
resolutions presented to it.
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(ii) 2. Election Committee Voting. For purposes of voting upon
any matter which may properly come before the election committee,
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 representative s
entitled to cast a majority of the total votes to which th e election
committee shall be entitled shall, unless otherwise provided in the
bylaws of the Authority as in effect from time to time, constitute a
quorum of the election committee.
(iii) 3. Bylaws of the Authority.
(A) a. The bylaws of the Authority shal l be adopted by
the election committee of the Authority by a majority
vote of the election committ ee and may thereafter be
amended at any time and from time to time in whole or
in part by the election committee or by the Board of
Directors by a majority 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 provisions of Section 19 hereof.
(B) 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, noti ce,
quorum and voting provisio ns, and other
procedural rules for regular and special meetings
of the Board of Directors of the Aut hority;,
(3) provisions for the n umber, election, term of
office and removal of members of the B oard of
Directors and for fill ing vacancies on the Board
of Directors;,
(4) the titles, duties and manner of election,
removal and replacement of officers of th e
Authority;,
(5) provisions governing when the Authority may
dissolve and the disposition of pr operty of the
Authority and the procedures to be followed in
the event of such a dissolution, 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 affair s of
the Authority as the election committee or the
Board of Directors may deem necessary or
advisable.
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(iv) 4. 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 this
state. Members of the Board of Directors of the Authority may, but
need not, be members of the election committee . Each member of the
Board of Directors of the Authority shall hold office until the
adjournment of the annual meeting of the Board 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 un til his a successor
is elected.
(b) B. Additional Members of Election 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 partici pate, 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 th e Authority
of the adoption of su ch resolution and shall then designate one
person as an additional member of the election committee whose term
shall begin with the first meeting of the election committee which
is held following the expiration of ten (10) days from the date of
receipt of notice of the adoption of such resolution by th e
Authority. Members of the election committee shall serve 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. Definitions. As used in this act Section 24-
101 et seq. of this title the following words shall have the
following meanings unless the context clearly indicates otherwise:
(a) A. "Authority" shall mean the Oklahoma Municipal P ower
Authority hereby created and any successor or successors thereto.
Any change in name or composition of the Authority shall in no way
affect the vested rights of any person under the provisions of this
act or impair the obl igations of any contracts ex isting under this
act Section 24-101 et seq. of this title.
(b) B. "Board of Directors" shall mean the Board of Di rectors
elected by the election committee as set forth in Section 4 24-101
of this act title which shall exercise all the powers and manage a nd
control all the affairs and property of the Authority unless
otherwise specifically provided herein or in the bylaws of the
Authority as in effect from time to time.
(c) C. "Bonds" shall mean any revenue bonds, notes or othe r
evidences of obligations o f the Authority issued by the Authority
under the provisions of this act , including, without limit ation,
bond anticipation notes and refunding bonds.
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(d) D. "Eligible public agency " shall mean any municipality,
authority or other public body which owns, m aintains or operates an
electrical energy generation, transmission or distribution system
within the State of Oklahoma this state on the date on which this
act becomes law.
(e) 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, m unicipal corporation, unit of local
government, governmen tal unit or public corporation c reated 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, agency or
instrumentality ther eof; (v) any corporation, not fo r 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 subdivisio n or governmental unit
of any foreign country or any corporation, not for pr ofit
corporation, firm, partnership, cooperative association, elect ric
cooperative or busin ess trust of any nature whatsoever organized and
existing under the laws of any foreign c ountry or of any political
subdivision or governmental entity thereof.
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(f) F. "Project" shall mean any plant, works, system,
facilities and real and personal property of any nature whatsoever,
together with all parts thereof a nd appurtenances thereto, loc ated
within or without the State of Oklahoma this state, used or useful
in the generation, production, transmission, purchase, sale,
exchange or interchange of electrical energy and in the acquisition,
extraction, processing, transportati on 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 f or 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 this definition, a plant
shall be considered to be existing if construction shall have been
commenced at the plant site, if orders have be en placed for major
components of equipment or if the plant is to c onsist of an
additional unit at the site of an already existing unit which will
use in common any of the existing facilities at such site.
(g) G. "Public trust" shall mean any public trust cr eated and
existing under the provisions of the Trusts for Furtheran ce of
Public Functions Law, as provided by Sections 176 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 Okla homa Statutes, which
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has as its beneficiary a municipality and whic h owns, maintains or
operates an electrical energy generation, transmission or
distribution system serving the residents and consumers of such
municipality and existing on the date on w hich 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) A. The Authority shall have and is hereby
authorized to exercise all powers, rights and privileges enumerate d
in this section. Such powers, rights and privileges shall be
exercised by its Board of Directors unless oth erwise specifically
provided herein or by the bylaws of the Authority as in effect from
time to time.
(b) B. The Authority may plan, finance, acquir e, construct,
reconstruct, own, lease, operate, 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 on e or more
persons, whether or not participating 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 proj ect.
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(c) 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 purpose, and make
studies, surveys and estimates as may be necessary to de termine the
feasibility and cost thereof.
(d) D. The Authority may cooperate 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 a nd equipment in any project.
(e) E. The Authority may apply to any person for cons ents,
authorizations or approvals required for any project within its
powers and take all actions necessary to comply with the conditions
thereof.
(f) F. The Authority may perform any act authorized by this act
through, or by means of, its officers, agent s or employees or by
contract with any person, including, without limitation, the
employment of engineers, architects, attorneys, appraisers,
financial advisors and such oth er consultants and employees as may
be required in the judgment of the Board of Dir ectors, and fix and
pay their compensation from funds available to the Authority
therefor.
(g) G. The Authority may acquire, hold, use and dispose of
income, revenues, fund s and money.
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(h) H. The Authority may, individually or jointly with other
persons, acquire, own, hire, use, operate and dispose of personal
property and any interest therein.
(i) I. The Authority may, individually or jointly with other
persons, acquire, own, use, lease as l essor or lessee, operate and
dispose of real property and inter ests in real property , including
projects existing, proposed or under construction, and make
improvements thereon.
(j) J. The Authority may grant the use by franchise, leas e or
otherwise and make charges for the use of any property or facility
owned or controlled by it.
(k) 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 produ cts, and
other financial instruments intended to hedge in terest rate risk or
manage interest rate costs, including any option to enter into or
terminate any of them, that the Authority deems to be necessary or
desirable in connect ion with any bonds issued prior to, at the same
time as, or after entering into suc h arrangement, and cont aining
such terms and provisions, and may be with such parties, as
determined by the Authority. Provided, any action taken by the
Authority pursuant to this subsection must fi rst be approved by the
Office of the State Bond Advisor Deputy Treasurer for Debt
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Management and the Council of Bond Oversight pursuant to the
provisions of the Oklahoma Bond Oversight and Reform Act .
(l) L. The Authority may inv est money of the Authority no t
required for immediate use , including proceeds from the sale of any
bonds.
(m) M. The Authority may exercise the power of emi nent domain
in accordance with the provisions of Section 24-110 of this title.
(n) N. The Authority may determine the location and ch aracter
of, and all other matters in connection with, any and all proje cts
it is authorized to acquire, hold, establish, effe ctuate, operate or
control.
(o) O. The Authority may contract with any person for the
planning, development, construction, operation, sale or lease as
lessor or lessee of any pro ject or for any interes t therein, on such
terms and for such period of time as i ts Board of Directors shall
determine.
(p) P. The Authority may contract with any eligible p ublic
agency, any public trust, or any ot her person for the sale of power
and energy, transmission service s, power supply development services
or other services withi n or without the State of Oklahoma this state
on such terms and conditions as the Board of Directors shall
approve. Any such contract may be for the sale of output and
services of a particular pr oject or may be for output and services
generally without regard to a s pecific project and may be for the
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supply of a specific quantity of output or a percentage of the
output of a specific project or o ther specific facility or may b e
based on the requirem ents of the purchaser or may be on such other
terms and conditions as t he Board of Directors deems appropriate.
(q) Q. The Authority may enter into any contract or agreement
necessary, appropriate or inci dental to the effectuation o f its
lawful purposes and the exercise of the powers granted by this act,
including, without limi tation, contracts or agreements for the
purchase, sale, exchange, interchange, wheeling , pooling,
transmission or storage of electr ic power and energy, and fue l and
other supplies of any kind for any such purposes, within and without
the State of Oklahoma this state, in such amounts as it shall
determine to be necessary and appropriate to make the most effective
use of its powers and to meet its responsibilities, on such terms
and for such period of time as the Board of Directors determines,
and derivative or other in struments intended to hedge fuel cost risk
associated with any projects or power purcha ses or supply
arrangements of the Authority, or to hedge fixed or variable
interest rate exposure associated with permitted investm ents,
including any option to enter in to or terminate any of them, that
the Authority deems to be necessary or desirable, and containing
such terms and provisions, and m ay be with such parties, as
determined by the Authority.
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(r) R. In any case in which the Authority participates in a
project as a joint owner with one or more persons, the Authority may
enter into an agreement o r agreements with respect to such project
with the other person or persons participa ting therein, and any such
agreement may contain s uch terms, conditions and provisions
consistent with the provisions of the act as the parties thereto
shall deem to be in their best interest. Any such agreement may
include, but need not be limited to, pr ovisions defining what
constitutes a default there under and providing for the rights and
remedies of the parties thereto upon the occurrence of such a
default deemed approp riate by the Board of Directors including, to
the extent deemed appropriate, the acq uisition by nondefaulting
parties of all or any pa rt of the defaulting party 's interest;
provisions setting forth such restraints on alienation of the
interests of the part ies in the project as the Board of Directors
deems appropriate; provisions for the c onstruction, operation and
maintenance of such ele ctric generation or transmission facil ity by
any one or more of the parties to such agreement which party or
parties shall be designated in or pursuant to such agreement as
agent or parties thereto or by su ch other means as may be determined
by the parties thereto; and provisions for a method or methods of
determining and allocating, among or between the parties, costs of
construction, operation, maintenance, renewals, re placements,
improvements and disposal s with respect to such project. In
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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
any person which is a joint owner of such project; provided,
however, the appropriate a llocations of the costs of construction,
operation, maintenance, renewals, replacements, improvements and
disposals with respect to such project between the Authority and
such persons shall not be a loan of credit by th e Authority to such
persons. In carrying out its functions and activities as such agen t
with respect to construction, operat ion and maintenance of a
project, such agent shall be governed by the laws and regul ations
applicable to such agent as a separate l egal entity and not by any
laws or regulations which may be applicable to any of the ot her
participating parties. Notwithsta nding anything contained in any
other law to the contrary, pursuant to the terms of any such
agreement, the Authority may delegate its powers and duties with
respect to the construction, operation and maintenance of su ch
project to the person acting as age nt; and all actions taken by such
agent in accordance with the provisions of such ag reement may be
made binding upon the Authority without further action or approval
by the Authority.
(s) S. The Authority may procure ins urance against any losses
in connection with its property, operations or assets in such
amounts and from such insurers as it deems desirable, or may self -
insure against such losses.
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(t) T. The Authority may contract for and accept any gifts,
grants or loans of funds or property or financial or o ther aid in
any form from any person, and may comply, subject to the provision s
of this act, with the terms and conditions thereof.
(u) U. The Authority may adop t a corporate seal and may sue or
be sued.
(v) V. The Authority may exercise all other powers not
inconsistent with the Constitution of the State of Oklahoma this
state or the United States Constitution, which powers may be
reasonably necessary or appropriate for or incidental to effectuate
its authorized purposes or to the ex ercise of any of the powers
enumerated in this act.
(w) W. Notwithstanding any other provision herein seeming ly to
the contrary, the Authority may not sell output (i) at retail to the
ultimate consumers thereof, (ii) to any municipality which does not
qualify as an eligible public agency under t he definition set forth
in subsection (d) of Section 24-105 of this title, or (iii) to any
trust created and existing u nder the provisions of the Local
Industrial Development Act, as provided by Sections 651 et seq. of
Title 62 of the Oklahoma Statutes, or the Trusts for Furtherance of
Public Functions Law, as provided by S ections 176 et seq. of Title
60 of the Oklahoma St atutes, which does not qualify as a public
trust under the definition set forth in subsection (g) of Section
24-105 of this title.
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SECTION 4. AMENDATORY 11 O.S. 2021, Section 24 -114, is
amended to read as follows:
Section 24-114. The Authority shall be subject to the
provisions of the Public Competitive Bidding Act, as provided by
Sections 101 et seq. of exempt from Title 61 of the Oklahoma
Statutes, provided, however, where the Au thority is purchasing an
undivided interest in a p roject that is being constructed or
operated by another person, the initial purchase of such interest by
the Authority and any contracts entered into by such person while
acting as agent for the Authority i n connection with such project
shall not be subject to the provisions of such act.
SECTION 5. AMENDATORY 11 O.S. 2021, Section 24 -116, is
amended to read as follows:
Section 24-116. Meetings and Records. 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 Auth ority shall be subject to
the provisions of Section 24 of the Oklahoma Open Records Act, as
provided by Sections 24A.1, et seq. of Title 51 of the Oklahoma
Statutes.
SECTION 6. AMENDATORY 11 O.S. 2021, Section 24 -117, is
amended to read as foll ows:
Section 24-117. Construction. This act and all the terms and
provisions hereof shall be liberally construed to e ffectuate the
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purposes 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 7. REPEALER 11 O.S. 2021, Section 24-105.1, 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.
58-2-3061 KR 1/20/2022 9:03:29 AM