An Act
ENROLLED SENATE
BILL NO. 587 By: Howard and Hall of the
Senate
and
Boles of the House
An Act relating to the Oklahoma Community Econo mic
Development Pooled Finance Act; amend ing 62 O.S.
2011, Section 891.3, as last amended by Section 1,
Chapter 260, O.S.L. 2019 (62 O.S. Supp. 20 20, Section
891.3), which relates to definitions; modifying
definitions; updating statutory references; and
providing an effective date .
SUBJECT: Oklahoma Community Econo mic Development Pooled Finance Act
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2011, Section 891.3, as
last amended by Section 1, Chapter 260, O.S.L. 2019 (62 O.S. Supp.
2020, Section 891.3), is amended to read as follows:
Section 891.3. 1. "Authority" means the Oklahoma Development
Finance Authority;
2. "Bonds" means any form of obligation issued by the Oklahoma
Development Finance Authority pursuant to this act the Oklahoma
Community Economic Development Pooled Fin ance Act;
3. "Business entity" means a corporation, limit ed liability
company, general partnership, limited partnership , or such other
entity conducting a lawful activity which is organized pursuant to
ENR. S. B. NO. 587 Page 2
the laws of the state or which is authorized to do business i n the
state if organized under the law of another jurisdiction;
4. "Community Economic Development Pooled Finance Revolving
Fund" means the fund created pursuant to Section 891.15 of this
title;
5. "Conduit issuer" means the Oklahoma Development Finance
Authority acting for the benefit of either a combi nation of local
government entities or a local government entity or entities in
conjunction with a for -profit business entity pursuant to the
provisions of this act the Oklahoma Community Economic Developme nt
Pooled Finance Act;
6. "Credit Enhancement Reserve Fund " means that fund created
pursuant to Section 5063.3 o f Title 74 of the Oklahoma Statutes;
7. "Debt" means bonds, notes, or other evidence of indebtedness
issued by the Oklahoma Development Financ e Authority;
8. "Department" means the Oklahoma Department of Commerce;
9. "Economic Development Pool " means proceeds of obligations
sold by the Authority to provide resources for eligible local
government entities or a local government entity in conju nction with
a for-profit business entity to finance an eligibl e economic
development project or other purposes auth orized by this act the
Oklahoma Community Economic Development Pooled Fin ance Act;
10. "Eligible local government entity" means:
a. a city,
b. a town,
c. a county,
d. any combination of cities, towns , or counties, or
e. a public trust with a beneficiary or beneficiary which
is a city, town, county or some combination of such
ENR. S. B. NO. 587 Page 3
entities as authorized by Section 176 of Title 60 of
the Oklahoma Statutes, or
f. an entity subject to the jurisdiction of the State
Board of Career and Technology Education or the
Oklahoma State Regents for High er Education;
11. "Federal government defense entities " means U.S. Department
of Defense installations i n the State of Oklahoma including Fort
Sill, Tinker Air Force Base, Al tus Air Force Base, Vance Air Force
Base and McAlester Army Ammunition Plant;
12. "For-profit business" means any lawful activity conducted
by a business entity with the goal or expect ation of selling goods,
services or other property at a price greater t han the actual costs
incurred by the business;
13. "Infrastructure" means:
a. county roads,
b. county bridges,
c. municipal streets,
d. municipal bridges,
e. any railway or utili ty system owned by an eligible
local government entity,
f. water treatment facilities,
g. solid waste management facilities,
h. water treatment and distribution systems, or
i. any asset or project identified by the eligible loc al
government entities ne cessary for essential government
functions if the asset is owned by a local gover nment
entity or entities, or
ENR. S. B. NO. 587 Page 4
j. any asset or project that is owned or operated by an
eligible local government enti ty that provides a
specific industry focused training program that:
(1) is collaboratively developed with major industry
employers in this state to meet the occupational
and skill demands in its workforce, and
(2) the delivery of instruction may be a collaboration
between or among entities under the jurisdiction
of the State Department of Education, the State
Board of Career and Technology Education and the
Oklahoma State Regents for Higher Education;
14. "Infrastructure Pool" means proceeds of obligations sold by
the Authority to provide resources for eligible local government
entities to provide financing for infrastructure or other purposes
authorized by this act the Oklahoma Community Economic Development
Pooled Finance Act;
15. "Pooled financing" means an agreement, pursuant t o the
provisions of this act the Oklahoma Community Economic Development
Pooled Finance Act or pursuant to the Inte rlocal Cooperation Act,
among two or more eligible local governmental entities or involving
a local government entity or entities in conjunct ion with a for-
profit business entity to use proceeds from a tax levy or other
authorized source of revenue to make payments of principal,
interest, and other related costs in connection with an obligation
issued by the Oklahoma Development Finance Authori ty for the benefit
of the entities entering into such agreement according to the terms
of the agreement and accordi ng to the requirements of any ballot
submitted to the voters of the respective eligible local
governmental entities. Pooled financing does n ot mean or include
the use of any ad valorem tax revenues derived from a levy imposed
pursuant to Section 26 of Art icle X of the Oklahoma Constitution;
16. "Private activity bonds " means those obligations the
interest income from which may be exempt from federal income tax
pursuant to the provisions of the Internal Revenue Code of 1986, as
amended; and
ENR. S. B. NO. 587 Page 5
17. "Public-Private Partner Development Pool" means proceeds of
obligations sold by the Oklahoma Development Finance Authority to
provide resources for eli gible local government enti ties to provide
financing for infrastructure in conjunction with for -profit business
entities and federal government defense entities or any other
purpose authorized by this act the Oklahoma Community Economic
Development Pooled Finance Act.
SECTION 2. This act shall become effective November 1, 2021.
ENR. S. B. NO. 587 Page 6
Passed the Senate the 10th day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the 22nd day of April, 2021.
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 Ok lahoma 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: _______________________________ __