An Act
ENROLLED SENATE
BILL NO. 1529 By: Leewright of the Senate
and
Dobrinski of the House
An Act relating to the Oklahoma Municipal Powe r
Authority Act; amending 11 O.S. 202 1, Section 24-104,
which relates to members; removing 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; updating
statutory language; removing certain entities to
which the Authority may not sell output; removing
requirement that the Authority be sub ject to the
Competitive Bidding Act; amending 1 1 O.S. 2021,
Section 24-116, which relates to meetings and
records; updating 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 gen eration
project; repealing 11 O.S. 2021, Section 24 -114,
which relates to acquisition and construction
contracts; repealing 11 O.S. 2021, Section 24 -120,
which relates to personnel to be included in
unclassified service; updating statutory references;
and providing an effective date.
SUBJECT: Oklahoma Municipal Power Authority
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
ENR. S. B. NO. 1529 Page 2
SECTION 1. AMENDATORY 11 O.S. 2021, Section 24-104, is
amended to read as follows:
Section 24-104. (a) (i) A. 1. Election Committee. The
Oklahoma Municipal Power Authority shall be governed by a Board of
Directors consisting of se ven 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 t ime. Members of the Board of
Directors of the Authority shall be eligible to succeed themselves
and shall be elected by the election committee as hereinafter
provided in this section. On or befo re the 90th day following the
effective date of this act June 2, 1981, each of those eligible
public agencies whic h shall have, prior to such 90th day, by proper
resolution of its governing body or its public trust, declared its
intention to participate, or to have any public trust operating its
electric system participate, with the Authority in the development
of power supply resources, shall designate one person as its
representative on the election committee. All such resolutions of
declaration of intention to parti cipate 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
office 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 the resolutions presented to it.
(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 represe ntatives
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.
ENR. S. B. NO. 1529 Page 3
(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
24-119 of this title.
(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
procedural rules for regular and special meetings
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 number, election, term of
office and removal of members of the Board 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 property of the
Authority and the procedures to be followed in
the event of such a dissolution ,; provided,
however, that any such dissolution shall not
ENR. S. B. NO. 1529 Page 4
violate the provisions of Section 19 hereof; 24-
119 of this title, and
(6) such other rules for regulating the affairs of
the Authority as the election committee or the
Board of Directors may deem necessary or
advisable.
(iv)
4. Board of Directors. The initial members of the B oard 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 until 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 par ticipate, or to have any public trust
operating its electric system participate, 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 the Authority
of the adoption of such 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
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:
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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 Section 24-101 et seq. of this title or impair the obligations
of any contracts existing under this act Section 24-101 et seq. of
this title.
(b) B. “Board of Directors” shall mean the Board of Directors
elected by the election committee as set forth in Section 4 24-104
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 bon ds, notes or other
evidences of obligations o f the Authority issued by the Authority
under the provisions of this act, the Oklahoma Municipal Power
Authority Act including, without limit ation, bond anticipation notes
and refunding bonds.
(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 Oklahom a on the date on which this act becomes
law this state.
(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, municipal corporation, unit of local
government, governmen tal unit or public corporation created 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 for profit
corporation, firm, partnership, cooperative association, electric
ENR. S. B. NO. 1529 Page 6
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 subdivision or governmental unit
of any foreign country or any corporation, not for pr ofit
corporation, firm, partnership, cooperative association, elect ric
cooperative or business trust of any nature whatsoever organized and
existing under the laws of any foreign country or of any political
subdivision or governmental entity thereof.
(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, located
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 inte rest 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 been placed for major
components of equipment or if the p lant is to consist 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 created and
existing under the provisions of the Trust s for Furtherance of
Public Functions Law, as provided by Sections Section 176 et seq. of
Title 60 of the Oklahoma Statutes, and the Oklahoma Trust Act, as
provided by Sections 175 Section 175.1 et seq. of Title 60 of the
Oklahoma Statutes, which has as it s beneficiary a municipality and
which 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 which
this act becomes law or creat ed hereafter with an eligible public
agency as the beneficiary.
ENR. S. B. NO. 1529 Page 7
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 enumerated
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, acquire, construct,
reconstruct, own, lease, operate, maintain, repair, i mprove, 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 one or more
persons, whether or not participating in a project, to ac t as its
agent, in connection with the planning, financing, acquisition,
construction, reconstruction, ownership, lease, operation,
maintenance, repair, extension or improvement of the project.
(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 determine 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 and equipment in any project.
(e) E. The Authority may apply to an y person for consents,
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
the Oklahoma Municipal Power Authority Act through, or by means of,
its officers, agents or employees or by contract with any person,
including, without limitation, t he employment of engineers,
architects, attorneys, appraisers, financial advisors and such oth er
consultants and employees as may be required in the judgment of the
ENR. S. B. NO. 1529 Page 8
Board of Directors, and fix and pay their compensation from funds
available to the Authorit y therefor.
(g) G. The Authority may acquire, hold, use and dispose of
income, revenues, fund s and money.
(h) H. The Authority may, individually or jointly wi th other
persons, acquire, own, hire, use, operate and dispose of personal
property and any inte rest 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 interests in real property, including
projects existing, proposed or under construct ion, 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 fac ility
owned or controlled by it.
(k) K. The Authority may borrow money and issue negotiable
bonds, secured or unsecured, in accordance with this act Section 24-
101 et seq. of this title , and may enter into interest rate swaps
and other derivative produ cts, and other financial instrum ents
intended to hedge interest rate risk or man age 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, o r after entering
into such arrangement, and cont aining such terms and provisions, and
may be with such parties, as determ ined by the Authority. Provided,
any action taken by the Authority pursuant to this subsection must
first be approved by the Office of the State Bond Advisor Deputy
Treasurer for Debt 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 eminent domain
in accordance with the provisions of Section 24-110 of this title.
ENR. S. B. NO. 1529 Page 9
(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, effectuate, 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 project 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
supply of a specific quantity of output or a percentage of the
output of a specific project or o ther specific facility or may be
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 i ncidental to the effectuation of its
lawful purposes and the exercise of the powers granted by this act,
the Oklahoma Municipal Power Authority Act including, without
limitation, contracts or agreements for the purchase, sale,
exchange, interchange, wheeli ng, pooling, transmission or storage of
electric power and energy, and fuel 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
instruments intended to hedge fuel cost risk associated with any
projects or power purchases or supply arrangements of the Authority,
or to hedge fixed or variable interest rate exposure associated with
permitted investments, including any option to enter in to or
terminate any of them, that the Authority deems to be necessary or
ENR. S. B. NO. 1529 Page 10
desirable, and containing such terms and provisions, and m ay be with
such parties, as determined by the Authority.
(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 or agreements with respect to such project
with the other person or persons participating therein, and any such
agreement may contain such 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, provisions defining what
constitutes a default thereunder and providing for the rights and
remedies of the parties thereto upon the occurrence of such a
default deemed appropriate by the Board of Directors including, t o
the extent deemed appropriate, the acquisition by nondefaulting
parties of all or any part of the defaulting party ’s interest;
provisions setting forth such restraints on alienation of the
interests of the parties in the project as the Board of Directors
deems appropriate; provisions for the construction, operation and
maintenance of such electric 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 agreem ent as
agent or parties thereto or by such 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, replacements,
improvements and disposals with respect to such project. In
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 proje ct; provided,
however, the appropriate allocations of the costs of construction,
operation, maintenance, renewals, replacements, improvements and
disposals with respect to such project between the A uthority and
such persons shall not be a loan of credit by the Authority to such
persons. In carrying out its functions and activities as such agent
with respect to construction, operat ion and maintenance of a
project, such agent shall be governed by the laws and regulations
applicable to such agent as a separat e legal entity and not by any
laws or regulations which may be applicable to any of the other
participating parties. Notwithsta nding anything contained in any
other law to the contrary, pursuant to the terms of any such
agreement, the Authority may delega te its powers and duties with
ENR. S. B. NO. 1529 Page 11
respect to the construction, operation and maintenance of such
project to the person acting as age nt; and all actions taken by such
agent in accordance with the provisi ons of such agreement may be
made binding upon the Authori ty without further action or approval
by the Authority.
(s) S. The Authority may procure insurance 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.
(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 provisions
of this act the Oklahoma Municipal Power Authority Act, with the
terms and conditions thereof.
(u) U. The Authority may adopt a corporate seal and may sue or
be sued.
(v) V. The Authority may exercise all other powers not
inconsistent with the Oklahoma Constitution of the State of Oklahoma
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 the Oklahoma Municipal Power Authority Act.
(w) W. Notwithstanding any other provision herein seemingly to
the contrary, the Authority may not sell output (i) at retail to the
ultimate consumers thereof, or (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 under 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 Statutes, which does not qualify as a public
trust under the definition set forth in subsection (g) of Section
24-105 of this title own an electrical energy distribution system.
SECTION 4. AMENDATORY 11 O.S. 2021, Section 24-116, is
amended to read as follo ws:
ENR. S. B. NO. 1529 Page 12
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 Section 301 et seq. of Title 2 5
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 Section 24A.1 et seq. of Title 51 of the
Oklahoma Statutes.
SECTION 5. AMENDATORY 11 O.S. 2021, Section 24-117, is
amended to read as follows:
Section 24-117. Construction. This act Section 24-101 et seq.
of this title and all the terms and provisions hereof shall be
liberally construed to effectuate the purposes set forth herein;
provided, however, nothing in this act the Oklahoma Municipal Power
Authority 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 6. REPEALER 11 O.S. 2021, Section 24-105.1, is
hereby repealed.
SECTION 7. REPEALER 11 O.S. 2021, Section 24-114, 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.
ENR. S. B. NO. 1529 Page 13
Passed the Senate the 9th day of March, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the 20th day of April, 2022.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _____ ____
day of _________________ __, 20_______, at _______ o'clock ___ ____ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this _______ ___
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _______________________________ __