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SENATE FLOOR VERSION
February 22, 2023
AS AMENDED
SENATE BILL NO. 1005 By: Kidd of the Senate
and
Wallace of the House
[ animal health and public hea lth - Oklahoma State
University Veterinary Medicine Authority Act -
purposes - veterinary hospitals - authority - members
- report - funds - bonds - fund - audit - benefits -
judgment - notice - property - agreement -
codification -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3040 of Title 2, unless there is
created a duplication in nu mbering, reads as follows:
This act shall be known and may be cited as the “Oklahoma State
University Veterinary Medicine Authority Act”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3041 of Title 2, unless there is
created a duplication in numbering, reads as follows:
As used in the Oklahoma State University Veterinary Medicine
Authority Act:
1. “Veterinary medicine programs” means educational programs
meeting the guidelines of the A merican Veterinary Medical
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Association (AVMA) Council on Education (COE ) offered through or as
an extension of Oklahoma State University and/or the Oklahoma Stat e
University College of Veterinary Medicine in cooperation with an
animal teaching hospital , animal diagnostic testing center , clinic,
or other animal healthcare provider;
2. “Animal teaching hospital” means a hospital designated for
the training and pre paration of veterinarians affiliated with or a
component of a veterinary training program affili ated with the
Oklahoma State University College of Veterinary Medicine;
3. “Animal patient” means a large or small animal patient
receiving care from an Oklaho ma State University veterinary medicine
trainee, intern, resident , or full or part-time veterinary medicine
trainer;
4. “Declaration of necessity ” means an official action of the
Oklahoma State University V eterinary Medicine Authority to fulfill
the terms of an Academic Affiliation, statutory provisions , or other
agreement, to provide facilities, fi nancing, or any other general
support to enhance the stability, quality , or otherwise further the
veterinary medicine education programs of the Oklahoma State
University College of Veterinary Medicine , or to provide for the
safety of the public related to animal disease and testing; and
5. “Academic Affiliation Agreement” means an agreement between
the Oklahoma State University College of Veterinary Medicine an d an
entity providing facilities, equipment , and support for the
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veterinary medicine education pr ograms of the Oklahoma State
University College of Veterinary Medicine.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3042 of Title 2, unless there is
created a duplication in numberin g, reads as follows:
A. The purposes of the Oklahoma State University Veterinary
Medicine Authority Act are to :
1. Provide for an effective and efficient administration ;
2. Ensure a dependable source of funding ; and
3. Effectuate the mission and purpos es of the Oklahoma State
University Veterinary Medicine Authority.
B. The mission and purposes of the Oklahoma State University
Veterinary Medicine Authority are to :
1. Support and, upon a declaration of necessity , serve as
teaching and training faciliti es for students enrolled at the
Oklahoma State University College of Veterinary Medicine ;
2. Acquire and provide a site for conducting veterinary medical
and biomedical research by faculty members of Oklahoma State
University;
3. Facilitate and, upon a declaration of necessity, provide
care for the animal patients of Oklahoma State University College of
Veterinary Medicine veterinarian trainers; and
4. Provide support for the safety of the public related to
animal disease and testing. The Oklahoma State University
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Veterinary Medicine Authority shall maintain a close affiliation
with the Oklahoma State University College of Veterinary Medicine
and shall coordinate their operations and act ivities in a
cooperative manner.
C. The Legislature finds that the needs of the citizens of this
state and the needs of the Oklahoma State University College of
Veterinary Medicine will be best served by an Authority charged with
the mission of supporting the veterinary medicine education programs
of the Oklahoma State University College of Veterinary Medicine,
entering into Academic Affiliation Agreements in support of Oklahoma
State University veterinarian training programs, operating or
leasing the operations of the teaching hospital or hospitals for the
benefit of the Oklahoma State University College of Veterinary
Medicine, and providing care for the animal patients of Oklahoma
State University veterinarian trainers.
D. The Board of Regents for the Ok lahoma Agricultural and
Mechanical Colleges shall retain full power to govern the personnel,
curriculum, and facilities of the Oklahoma State University College
of Veterinary Medicine.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sectio n 3043 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. Any hospital or clinics purchased, leased , or constructed by
the Oklahoma State Univ ersity Veterinary Medicine Authority shall be
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operated as animal hospitals or c linics and shall be li censed and/or
accredited by the appropriate entities. Provided, the Secretary of
Agriculture may waive any such s tandards, requirements, and
essentials as the Secretary deems necessary .
B. Any such hospitals or clinics may pro vide services and
receive payments from animal healthcare insurance companies and any
state or federal reimbursement programs.
C. Any such hospitals or clinics shall be available as teaching
and training faciliti es for the Oklahoma State University Colleg e of
Veterinary Medicine, for other animal patient and educational
facilities, and may also provide animal patient care for research
purposes.
SECTION 5. NEW LAW A new sec tion of law to be codified
in the Oklahoma Statutes as Sect ion 3044 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. There is hereby created the Oklahoma State Univ ersity
Veterinary Medicine Authority, an agency of the State of Oklahoma, a
body corporate and politic, with power s of government and with the
authority to exercise the rights, privileges , and functions as
specified in the Oklahoma State University Veterin ary Medicine
Authority Act. The Oklahoma State Univer sity Veterinary Medicine
Authority is covered by The Governmental Tort Claims Act.
B. The Authority shall consist of eight (8) members as follows:
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1. One member shall be appointed by the Governor, wit h the
advice and consent of the Senate;
2. One member shall be appointed by the President Pro Tempore
of the Senate;
3. One member shall be appointed by the Speaker of the House of
Representatives;
4. One member shall be the Dean of the Oklahoma State
University College of Veterinary Medicine;
5. One member shall be appointed from the veterinarian
community by the President of Oklahoma State University;
6. One member shall be a member of the Board of Regents for the
Oklahoma Agricultural and Mechanical Colleges;
7. One member shall be appointed by the chair of the Board of
Regents for the Oklah oma Agricultural and Mechanical Colleges; and
8. One ex-officio, non-voting member shall be the Chief
Executive Officer of the Oklahoma State Univer sity Veterinary
Medicine Authority who shall be appointed by the President of
Oklahoma State University.
C. All appointed members shall be appointed by August 1, 2023.
Of the members of the Authority initially appointed, the member
appointed by the Presid ent Pro Tempore of the Senate shall serve a
term of three (3) years; the member a ppointed by the Speaker o f the
House of Representatives shall serve a term of two (2) years; and
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the member appointed by the Governor shall serve a term of one (1)
year. Successors shall be appointed for terms of three (3) years.
D. Each member of the Au thority, prior to appoint ment, shall be
a resident of the state and a qualifi ed elector. Each member of the
Authority shall possess dual office holding exemption privileges a nd
shall be exempt from any statutory dual office holding prohibitions.
E. Members shall be removable onl y for cause by the appointing
authority. Any vacanc y occurring in the Authority shall be filled
by the original appointing authority.
F. The members of the Authority shall serve without
compensation but may be reimbursed for all actual and necessary
travel expenses incurred in the performance of their dut ies in
accordance with the provisions of the State Travel Reimbursement Act
pursuant to Chapter 17 of Title 74 of the Oklahoma Statutes.
G. All members of the Authority and admin istrative personnel of
the Authority shall be subject to the provisions of th e Oklahoma
Ethics Commission Rules, Chapter 62 Appendix of Title 74 of the
Oklahoma Statutes.
H. A quorum of the Authority shall be four voting members. The
Authority shall elect a chair and vice chair from among its members.
I. The Authority shall be e xempt from the Oklahoma Central
Purchasing Act but shall be subject to the purchasing policies of
Oklahoma State University and shall be subject to the Oklahoma Open
Meeting Act and the Oklahoma Open Records Act, except as otherwise
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provided by this act. Any information submitted to or compiled by
the Authority except for budgetary information related to
appropriations or the appropriations process with respect to the
marketing plans, financial statements, trade secrets, research
concepts, methods or produ cts, or any other proprietary information
of the Authority, persons, firms, associations, partnerships,
agencies, corporations, institutions of higher education, nonprofit
research institutions or other entities shall be confidential,
except to the extent that the person or entity which provided the
information or which is the subject of the information consents to
disclosure. Executive sessions may be held to discuss such
materials if deemed necessary by the Authority.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3045 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. On and after July 1, 2022, the Authority shall have the
power and duty to:
1. Adopt bylaws and promulgate rules for the regulation of its
affairs and the conduct of its business;
2. Adopt an official seal;
3. Maintain an office at a location to be determined by the
Authority;
4. Sue and be sued, subject to the provisions of The
Governmental Tort Claims Act;
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5. Enter into cooperative agreements with the Board of Regents
for the Oklahoma Agri cultural and Mechanical Colleges and other
Oklahoma State University agencies, authorities, trusts, or entities
for educational programs, professio nal staffing, research , and other
medical activities;
6. Make and enter into all contracts necessary or inci dental to
the performance of its duties and the execution of its powers
pursuant to the Oklahoma State University Veteri nary Medicine
Authority Act;
7. Purchase or lease equipment, furniture, materials , and
supplies, and incur such other expenses as may b e necessary to
maintain and operate veterinary hospitals and clinics, to discharge
its duties and responsibilities, or to make any of its powers
effective;
8. Acquire by purchase, lease, gift, or by any other manner,
and to maintain, use , and operate or to contract for the
maintenance, use, and operation of or lease of any and all property
of any kind, real, personal, or mixed or any interest therei n unless
otherwise provided by the Oklahoma State University Veterinary
Medicine Authority Act;
9. Appoint such officers, agents, and employees, including but
not limited to attorneys, as it deems neces sary and to prescribe
their duties and to fix their c ompensation;
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10. Accept grants from the United States of America, or from
any corporation or agency created or designed by the United States
of America, and in connection with any grant, to enter into s uch
agreements as the United States of America or any corporation or
agency may require;
11. Make and issue bonds and to pledge revenues of the
Authority subject to the Oklahoma Bond Oversight and Reform Ac t.
Nothing in the Oklahoma State University Vete rinary Medicine
Authority Act shall authorize the iss uance of any bonds of the
Authority payable other than from revenues of the Authority.
Authority revenue bon ds issued under the provisions of this act
shall not at any time b e deemed to constitute a deb t of the state or
of any political subdivision thereo f or a pledge of the faith and
credit of the state or of any political subdivision, but such bonds
shall be payable solely from the funds herein provided. Such
revenue bonds shall contain on the face th ereof a statement to the
effect that neither the stat e nor the Authority shall be obligated
to pay the same or the interest thereon except from the revenues of
the project or projects for which they are issue d and that neither
the faith and credit nor the taxing power of the state or any
political subdivisio n thereof is pledged, or may hereafter be
pledged, to the payment of the principal of or the interest on such
bonds. The maximum amount of outstanding bond s at any time shall
not exceed Fifty Million Do llars ($50,000,000.00) unless a greater
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amount is expressly approved by the Legislature by a concurrent
resolution adopted prior to commencing any action in antic ipation of
issuance of revenue bonds of the Okl ahoma State University
Veterinary Medicine Auth ority for the greater amount;
12. Provide for comple te financial audits on all accounts of
the Oklahoma State University Veterinary Medicine Authority and to
authorize periodic audits by an independent extern al auditing
agency. Such audits shall be perfo rmed annually in a format
approved by the State Audit or and Inspector, and all such audits
shall be submitted to the State Auditor and Inspector for review.
Such audits shall be made in accordance with generall y accepted
auditing standards and government auditing standards. Financial
statements shall be pr epared in accordance with generally accepted
accounting principles;
13. Engage in long-term planning for the operation and
management of the Authority;
14. Establish petty cash funds and provide for ap propriate
accounting procedures and controls;
15. Contract with national manufacturers and distributors of
drugs and medical supplies when appropriate to carry o ut the
purposes of this act;
16. Do all other thi ngs necessary and proper to implement the
provisions of the Oklahoma State University Veterinary Medicine
Authority Act;
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17. Provide funding to other entities re lated to public health,
teaching, research, and the purposes of the Oklahoma State
Veterinary Medicine Authority Act when provided funding for such
purposes by the Legislature;
18. Waive, by such means as the Authority deems appropriate,
the exemption from federal income taxation of interest on the
Authority’s bonds provided by the Internal Revenue Code of 1986, as
amended, or any other fed eral statute providing a similar exemption;
19. Arrange for guaranties or insurance of its bonds by the
federal government or by any private insurer, and to pay any
premiums therefor; and
20. Make a declaration of necessity as provided in Section 3 of
this act. The Authority may, in its exclusive judgment , make a
declaration of necessity when such a declaration is d eemed necessary
to effectuate the purposes of t he Oklahoma State University
Veterinary Medicine Au thority Act.
B. The Oklahoma State Univers ity Veterinary Medicine Authority
shall be subject to the Oklahoma State Finance Act.
C. The Authority shall pr epare a “budget vs. actual” report on
a monthly basis which shows by budget activity the monthly and year-
to-date revenues and expenditures comp ared to budgeted revenues and
expenditures. Such report shall be submitted to the Office of
Management and Enterprise Serv ices and to the Directors of the House
of Representatives Fiscal Division and the Se nate Fiscal Division.
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D. The Authority shall be subject to the professional risk
management program provided for in Section 85.58A of Title 74 of the
Oklahoma Statutes.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3046 of Title 2, unless there is
created a duplication in numbering, re ads as follows:
All agreements and obligations undertaken, as permitted under
this section, by the Oklaho ma State University Veterinary Medicine
Authority shall be for a public purpose. In addition to any other
limitations, conditions, or restrictions provided by law, the
following conditions shall apply to contractual agreements entered
into pursuant to this section:
1. Private and public funds shall be a ccounted for separately;
and
2. The state shall not assume any liability f or private
entities.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Secti on 3047 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. The funds deposited in the Oklahoma State University
Veterinary Medicine Authority Agency Special Account created in
subsection B of this section shall be investe d by the State
Treasurer in the manner provide d for by law. The return on such
investments shall be credited to the accounts of the Authority.
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B. There is hereby created in the State Treasury an Official
Depository Account for the Oklahoma State Universi ty Veterinary
Medicine Authority, to be design ated the “Oklahoma State University
Veterinary Medicine Authority Agency Special Account”. The Official
Depository Account shall con sist of an agency clearing account and
an agency special account. All revenues, except federal
entitlements and state approp riations, generated by the Oklahoma
State University Veterinary Me dicine Authority shall be deposit ed in
these accounts.
C. The Authority shall be subject to blanket bond coverage as
provided in Sections 85. 58Q through 85.58V of Title 74 of the
Oklahoma Statutes, provided the Authority shall be authorized to
purchase increased amounts of fidelity bond coverage for employees
for whom it is deemed necessary by the Authority. When the amount
listed in Section 85.58T of Title 74 of the Oklahoma Statutes is
deemed inadequate, the cost of increased coverage shall be borne by
the Authority.
SECTION 9. NEW LAW A ne w section of law to be c odified
in the Oklahoma Statutes as Section 3048 of Title 2, unless there is
created a duplication in num bering, reads as follows:
A. Subject to the provisions of paragraph 11 of subsection A of
Section 6 of this act, the Oklahom a State University Veterin ary
Medicine Authority may provide by resolution, from time to time, for
the issuance of revenue bonds fo r its lawful purposes, in such
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amount or amounts as are necessary, incidental, or convenient to the
exercise of powers, rights , privileges, and functions conferred upon
it by the Oklahoma State University Veterinary Medicine Authority
Act or other law. The principal of and interest on any inde btedness
shall be payable solely from the revenues of the Authority and such
other funds as may be provided by law for such payment. The
Authority may provide for cr edit enhancement as additional security
or liquidity for its bonds and enter into such agr eements as may be
necessary or appropriate to provide for the repayment of any funds
advanced by the provider of any such credit enhancement , including
the payment of any fees and expenses incurred in connection
therewith. The bonds of each issue shall be ar interest at fixed or
variable rates and shall bear an average interest rate not to exc eed
eleven percent (11%) per annum, shall mature at such time or times
not exceeding thirty (30) years from their date or dates of issue,
as may be determined by the A uthority, and may be made redeemable
before maturity at the option of the Authority, at s uch time or
times and at such price or prices and pursuant to such terms and
conditions as may be fixed by the Authority prior t o the issuance of
the bonds. The Authority shall determine the form of the bonds and
the manner of execution thereof, and shall fix the denominations of
the bonds and the place or places of payment of pri ncipal and
interest, which may be at any bank and t rust company within or
without this state. If any officer whose signature or facsimile of
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whose signature appears on any bonds shall cease to be the officer
before the delivery of the bonds, the signature or the facsimile
shall nevertheless be valid and s ufficient for all purposes, the
same as if the person had remained in office until such de livery.
All bonds issued pursuant to the provisions of the Oklahoma State
University Veterinary Medicine Authority Act shall have all the
qualities and incidences of negotiable instruments subject to the
laws of this state. The Authority may sell the bonds in such
amounts and in such manner , either at public or private sal e, and
for such price, as it may determine to be in the best interests of
the state. If the bonds are not sold by competitive bid, the sale
must be approved by the State Bond Advisor.
B. All fees and expenses of bond sal es must be approved by the
Council of Bond Oversight . Prior to the preparation of definitive
bonds, the Authority, subject to like restrictio ns, may issue
interim receipts or temporary bonds, with or without coupons,
exchangeable for definitive bonds which have be en executed and are
available for delivery. The Authority may also pr ovide for the
replacement of any bonds which have become mutila ted or which have
been destroyed or lost. Except as otherwise provided in this act,
bonds may be issued pursua nt to the provisions of the Oklahoma State
University Veterinary Medicine Authorit y Act without obtaining the
consent of any depart ment, division, commission, board, bureau, or
agency of this state, and without any oth er proceedings or the
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occurrence of any other conditions than those proceedings or
conditions that are specifically requ ired by the Oklahoma State
University Veterinary Medicine Authority.
C. The Authority may, by resolution, provide for the issuance
of refunding bonds then outstanding, including the payment of any
redemption premium, any interest accrued to the date of re demption
of such bonds, and for incurring additio nal indebtedness for its
lawful purposes. The issuance of such bonds shall be governed by
the provisions of the Oklahoma State University Veterinary Medicine
Authority Act.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sec tion 3049 of Title 2, unless there is
created a duplication in numbering, reads as follows:
Before any bond shall be issued and delivered by the Oklahoma
State University Veteri nary Medicine Authority, a certified copy of
the proceedings for the issuance t hereof, together with any other
information which the Attorney General may require as the Bond
Commissioner, shall be submitted to the Attorney General. If the
Attorney General finds that such bonds have been issued in
accordance with law, the Attorney General shall approve such bonds
and execute a certificate to that eff ect. The Attorney General
shall file such certificates in the office of the State Auditor and
Inspector, and the certificates shall be recorded in a record kept
for that purpose. All bonds approved by the Attorney General, and
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issued in accordance with t he approved proceedings, shall be valid
and binding obligations of the Authority , and shall be incontestable
for any course from and after the date of such approval.
SECTION 11. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3050 of Title 2, unless there is
created a duplication in numbering, reads as foll ows:
The Oklahoma State University Veterinary Medicine Authority or
the Oklahoma State University Veterinary Medical Trust, pursuant to
Section 19 of this act, may file an application with the Supreme
Court of this state for approval of any bonds to be iss ued under the
provisions of the Oklahoma State University Veterinary Med icine
Authority Act, and exclusive original j urisdiction is hereby
conferred upon the Supreme Court to hear and determine such
application. The Supreme Court shall give such applicati ons
precedence over the other business of the C ourt except habeas corpus
proceedings, consider and determine the vali dity of the bonds, and
consider the application and any protest which may be fil ed thereto.
Notice of the hearing on each application shal l be given by notice
published in a newspaper o f general circulation in this state that
on a day named the Authority or the Trust will ask the Cour t to hear
the application and approve the bonds. Such notice shall inform all
interested parties that they m ay file a protest against the issuance
of the bonds, may be present at t he hearing, and may contest the
legality thereof. Such notice shall be pub lished one time, not less
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than ten (10) days prior to the date named for the hearing and the
hearing may be adjourned from time to time in the discretion of the
Court. If the Court is satisfied that the bonds have been proper ly
authorized in accordance wi th the Oklahoma Stat e University
Veterinary Medicine A uthority Act, and that when issued such bonds
will constitute valid obligations in accordance with the ir terms,
the Court shall render its written opinion approving the bon ds and
shall fix the time with in which the petitio n for rehearing may be
filed. The decision of the Court shall be a judicial determinatio n
of the validity of the bonds, shall be conclu sive as to the
Authority of the Trust, its officers and agents, and th ereafter the
bonds so approved and the revenues pledged to their payment shall be
incontestable in any court in th is state.
SECTION 12. NEW LAW A new section of law to be codified
in the Oklahoma Stat utes as Section 3051 of Title 2, unless there is
created a duplication in numbering, reads as follows:
Revenue bonds of the Oklahoma State University Veterinary
Medicine Authority issued pursuant to the provisions of the Oklahoma
State University Veterinar y Medicine Authority Act shall not
constitute a debt of the s tate or of any political su bdivision
thereof, or a pledge of the full faith and credit of the state, or
of any political subdivision thereof, but such bonds sha ll be
payable solely from the funds p rovided therefor. The forms of the
bonds so issued shall c ontain on the face thereof a statement to the
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effect that neither the state n or the Authority shall be obliga ted
to pay the same or the interest thereon except from the revenues of
the Authority pledged to the payment of such bonds and that neither
the faith and credit nor the taxin g power of the state or any
political subdivision thereof is pledged, or may herea fter be
pledged, to the payment of the principal of or interest on such
bonds. The bonds so issued shall be exempt f rom taxation by this
state and any political subdivision thereof, including the income
therefrom, and any gain from the sale thereof.
SECTION 13. NEW LAW A new secti on of law to be codified
in the Oklahoma Statutes as Sectio n 3052 of Title 2, unless there is
created a duplication in numbering, reads as follows:
Bonds issued pursuant to provisi ons of the Oklahoma State
University Veterinary Medicine Authority Act are h ereby made
securities in which all p ublic officers and publ ic boards, agencies
and instrumentalities of the state and its political subdivisions,
all banks, trust companies, trust and loan associations, in vestment
companies and others carrying on a banking business, and all
insurance companies, insurance associations, and others carrying on
an insurance business, may legally and properly invest. Such bonds
are also approved as c ollateral security for the d eposit of any
public funds and for the investment o f trust funds.
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SECTION 14. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3053 of Title 2, unless there is
created a duplication in numb ering, reads as follows:
The Oklahoma State University Veterin ary Medicine Authority
shall submit an annual report to the Govern or, the President Pro
Tempore of the Senate, and the Speaker of the House of
Representatives of this state. Such report shall be submitted in
accordance with the requirements for financial statement audits in
Section 212A of Title 74 of the Oklahoma Statu tes and shall include
an account of the operations and actions of th e Authority and an
accounting of all revenue received and dis bursed by the Authority
for the previous fiscal year. The report shall include an
accounting of expenses related to each of th e following:
1. Education and training of students of the Oklahoma S tate
University College of Veterinary, resident veterinarians , and
others;
2. Care and treatment of animal patients for whom the Authority
receives any form of state or federal reimburse ment; and
3. Research.
SECTION 15. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sectio n 3054 of Title 2, unless there is
created a duplication in numbering, reads as follo ws:
A. There is hereby created in the State Treasury a rev olving
fund for the Oklahoma State University Veterinary Me dicine
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Authority, to be designated the “Oklahoma State University
Veterinary Medicine Authority Disb ursing Fund”. The fund shall be a
continuing fund, not subject to fis cal year limitations, and s hall
consist of appropriated revenues and federal entitlemen ts. All
monies accruing to the credit of the fund are hereby appropriated
and may be budgeted and expended by the Oklahoma State Univers ity
Veterinary Medicine Authorit y.
B. Following the execu tion of a lease of real properties under
the jurisdiction of the Oklahoma State University Veterinary
Medicine Authority to the Oklahoma State University Vete rinary
Medical Trust pursuant to Section 22 of this act, monies from the
fund may be expended by the Authority for the fiscal year ending in
the year the lease is executed, for the operations of the Authority
after the execution of the lease to the Oklahom a State University
Veterinary Medical Tr ust for payment of any costs to the Authority
associated with the transfer of operations of facilities under the
jurisdiction of the Authority, and legal obligations of th e
Authority.
SECTION 16. NEW LAW A new section of law to be codified
in the Oklahoma Statute s as Section 3055 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. There is hereby created in the Stat e Treasury a revolving
fund for the Oklahoma State University Veterinary Medicine
Authority, to be designated the “Oklahoma State University
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Veterinary Medicine Authority Marketing Revolving Fund ”. The fund
shall be a continuing fund, not subject to fisca l year limitations,
and shall consist of all monies received by the Oklahoma State
University Veterinary Medicine Aut hority pursuant to the provisi ons
of this section. All monies accruing to the credit of the fund are
hereby appropriated and may be budget ed and expended by the Oklahoma
State University Veterinary Medicine Authority for t he purpose of
marketing research and planning, public education , special events
customary to the veterinary care industry, advertising and promotion
of special and general services provided or sponsored by the
Oklahoma State University Veterinary Medicine Authority, and such
other purposes specifically authorized by t he Legislature.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Chief Financial Officer for approval and payment.
B. An amount equal t o one-tenth of one percent (1/10 of 1%) of
the total annual operating budget of the Oklahoma State Un iversity
Veterinary Medicine Authority a nd such other funds as may be
specifically designated for deposit to the fund shall be deposited
in the Oklahoma State University Veterinary Medici ne Authority
Marketing Revolving Fund.
C. The Oklahoma State Univers ity Veterinary Medicine Authority
Marketing Revolving Fund shall be audited annually by t he State
Auditor and Inspector. The Oklahoma State University Vet erinary
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Medicine Authority shall reimburse the State Auditor and Inspector
from the Oklahoma State Uni versity Veterinary Medicine Authority
Marketing Revolving Fund for any expenses inc urred in auditing the
fund.
SECTION 17. NEW LAW A new section of law to be cod ified
in the Oklahoma Statutes as Section 3056 of Title 2, unless there is
created a duplication in number ing, reads as follows:
A. The Oklahoma State University Veteri nary Medicine Authority
may regulate traffic and the parking of vehicles on property us ed by
or for the Oklahoma State Universit y Veterinary Medicine Authority.
Such regulations shall be in wri ting, and copies thereof, including
amendments thereto, shall b e filed in the Office of the Secretary of
State, and in the office of the city clerk o f the City of
Stillwater. The municipal court of the City of Stillwater shall
have jurisdiction to hear and determine prosecutions for violations
of such regulations, whi ch may be prosecuted and shall be punishable
as violations of ordinances of the City of Stillwater. The
Authority may cause t o be removed, and may enter into contracts for
such purpose, any veh icle parked in violation of such regulations.
B. The Authority may appoint campus police officers and guard s
for buildings and grounds of the Okla homa State University
Veterinary Medicine Authority in the same manner and with the same
powers as campus pol ice appointed by governing boards of state
institutions for hig her education under the provisions of Section
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360.15 et seq. of Title 74 of the Okla homa Statutes, and who may
prevent or stop improper conduct and trespass in and upon such
buildings and grounds, and make arrests and prosecute any and all
persons arrested for such improper conduct and trespassing.
Employees of the Authority serving as p olice officers shall be
certified as provided for in Section 3311 of Title 70 of the
Oklahoma Statutes.
C. The Authority and the City of Stillwater may enter into a
cooperative agreement to effectuate the provisions of this section.
SECTION 18. NEW LAW A new section of law to be codifie d
in the Oklahoma Statutes as Section 3057 of Title 2, unless there is
created a duplication in numbering, reads as follo ws:
The Oklahoma State University Veter inary Medicine Authority is
authorized to place resident veterinarians of the Oklahoma State
University College of Veterinary Medicine on the Oklaho ma State
University Veterinary Medicine Authority payroll, and is fur ther
authorized to acquire health, life , and dental insurance for such
residents. Such residents shall not be considered employees of the
Authority and shall not be eligible to participa te in the Oklahoma
Public Employees Retirement System. This section shall not preclude
the right of the Okl ahoma State University Veterinary Medic ine
Authority to terminate, for cause, the practicing pri vileges of any
resident veterinarian within the Okla homa State University
Veterinary Medicine Authority.
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SECTION 19. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3058 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. The State of Oklahoma expressly approves the creation of a
public trust to be named the “Oklahoma State University Veterinary
Medical Trust”, of which the State of Oklahoma shall be the
beneficiary, provided such app roval shall be contingent upon
satisfaction of the following conditions:
1. Finalization of the declaration of trus t;
2. Adoption of the declaration of trust by an official action
of the trustees of the Trust;
3. Submission of the Trust for acceptance o f the beneficial
interest and approval as required by Section 177 of Tit le 60 of the
Oklahoma Statutes; and
4. The approved declaration of trust shall:
a. clearly state that the principal purpose of the
Oklahoma State University Veterinary Medical Trust i s
to effectuate the purposes of the Oklahoma State
University Veterinary Medicine Authority as
established in the Ok lahoma State University
Veterinary Medicine Authority Act,
b. except as otherwise provided by law, provide that the
title to real property h eld by the Oklahoma State
University Veterinary Medicine Authority shall not be
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transferred, conveyed, or assigned t o the Oklahoma
State University Veterinary Medical Trust without the
express consent of the Legislature as the governing
entity of the beneficiary pursuant to Section 176 of
Title 60 of the Oklahoma Statutes,
c. provide that any indebtedness incurred by th e Oklahoma
State University Veterinary Medical Trust or the
trustees of the Trust shall not be secured with or
create a lien upon real prope rty to which title is
held by the Oklahoma State University Veterinary
Medicine Authority, and shall not involve the bonding
capacity of the Oklahoma State University Veterinary
Medicine Authority,
d. provide that the trust estate of the Oklahoma State
University Veterinary Medical Trust sh all not include
the fee simple title to r eal property owned by the
Oklahoma State University Veterinary Medicine
Authority,
e. clearly state that the creation of the Oklahoma State
University Veterinary Medical Trust shall no t in any
way reduce, limit, or interfere with the power granted
to the Oklahoma State University Veterinary Medi cine
Authority in the Oklahoma State University Veterinary
Medicine Authority Act,
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f. provide that any lease or contractual agreement
involving use of the real property to whi ch title is
held by the Oklahoma State Un iversity Veterinary
Medicine Authority a nd any improvements thereto shall
contain a provision and covenants requiring the proper
maintenance and upkeep of the real property and
improvements,
g. provide that the trus tees of the Oklahoma State
University Veterinary Medical Trust shall be the
acting members of the Oklahoma State University
Veterinary Medicine Authority as provided in the
Oklahoma State University Veterinary Medicine
Authority Act, and
h. provide that the trustees of the Oklahoma State
University Veterinary Medical Trust shall have t he
duty to submit an annual report to the Governor, the
President Pro Tempore of the Senate, and the Speaker
of the House of Representatives of this state. The
report shall be submitted by January 1 of each year
and shall include an account of all operati ons,
actions of the Trust, and an account of all revenue
received and disbursed by the Trust for the prev ious
fiscal year. The report shall als o provide a complete
accounting of how the Trust meets its primary functio n
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of effectuating the purposes of the Oklahoma State
University Veterinary Medicine Authority, as
established in the Oklahoma State University
Veterinary Medicine Authority Act.
B. The Oklahoma State University V eterinary Medical Trust shall
require any agreements which it enters into with an y entity for the
operations of facilities leased by the Oklahoma S tate University
Veterinary Medicine Aut hority to the Trust to include, but not be
limited to:
1. The inclusion of all the members of the Trust, representing
this state in a governing committee;
2. Binding arbitration shall not be required by su ch agreements
for resolving issues und er consideration by the governing committee;
and
3. Major decisions shall be resolved by the governing
committee, and approval of any major decision by the governing
committee must include the approval of a majority of the state
appointees and the approva l of a majority of the private entity
appointees to the governing committe e. Major decisions shall
include:
a. approval of the operating and capital budgets,
b. sale or disposition of assets over Two Hundred Fifty
Thousand Dollars ($250,000.00),
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c. the termination, transfer, or material addition or
material diminution of animal medical services at the
Oklahoma State University Boren Veterinary Medical
Teaching Hospital related to and part of a teaching
program of the Oklahoma St ate University College of
Veterinary Medicine,
d. other major decisions as may be agreed upon by the
Trust and the private entity, and
e. to the extent it is determined by legislative
enactment that the Trust has expended funds in
contravention of its miss ion as set forth in this
section, the Trust shall remit, upon thirty (30) days ’
written notice from the Oklah oma State University
Veterinary Medicine Authority, such sum or sums to the
Oklahoma State University Veterinary Medicine
Authority.
SECTION 20. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3059 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. Contingent upon the creation of the Oklahoma State
University Veterinary Medical Trust as provided in Section 19 of
this act, the Trust, prior to acceptance, shall submit to the
Contingency Review Board for review the proposed agreement regarding
the lease and operations of any hospital or hospitals owned by the
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Oklahoma State University Veterinary Medicine Authority to any
entity authorized to transact business in th is state and an
independent statement as to the fairness of the proposed agreement
for this state. The Contingency Review Board shall upon receipt of
the proposed agreement meet within fifteen (15) business days to
review the proposed agreement; upon approval by the Contingency
Review Board of the proposed agreement, the agree ment may be
executed but no lease of the hospital or hospitals shall become
effective until after Supreme Court approval pursuant to subsection
B of this section.
B. 1. If a proposed agre ement is approved by the Contingency
Review Board pursuant to subsection A of th is section, the Oklahoma
State University Veterinary Medicine Autho rity and Oklahoma State
University Veterinary Medical Trust, withi n thirty (30) calendar
days after the time for Contingency Review Board action has expired,
may file a petition with the Su preme Court of Oklahoma for a
declaratory judgment determining the validity of the proposed
agreement. The review of the Court shall be based upon the exercise
of any of the powers, rights, privileges, and functions conferred
upon the Authority or the Oklahoma State University Veterinary
Medical Trust, as applicable, und er the Oklahoma State University
Veterinary Medicine Authority Act and Oklahoma laws. Exclusive
original jurisdiction is conferred upon the Supreme Court to hear
and determine such petitio ns. The Supreme Court shall give such
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petitions precedence over ot her business of the Court except habeas
corpus proceedings.
2. Notice of the hearing of such a petition shal l be given by a
notice published in a newspaper of general circulation in this s tate
that on a day specified the Supreme Court will hear the petiti on to
approve the proposed agreement and enter a declaratory judgm ent.
The notice shall be published one tim e not less than ten (10) days
prior to the date specified for the hearing. The notice shall
inform property owners, taxpayers, citizens, and all persons having
or claiming any right, title, or interest in the propos ed agreement
or properties or funds to b e affected by the implementation of the
proposed agreement, or affected in any way thereby, that they may
file protests against the approval of the proposed agreement, and be
present at the hearing to contest the leg ality of the proposed
agreement. The hearing may be adjourned from time to time a t the
discretion of the Court.
3. If the Court is satisfied that the proposed agreement is in
accordance with the Oklahoma State University Veterinary Medicine
Authority Act and laws of this state, the Court shall enter a
declaratory judgment approving an d declaring the proposed agreement
to be valid and conclusive as to the Authority, the Trust, and all
other parties to the proposed agreement . Upon petition of the
Authority, the Court shall issue an order permane ntly enjoining all
persons described in the notice required by this subs ection from
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thereafter instituting any action or proceeding contesting the
validity of the proposed agreement. A declaratory judgment rendered
pursuant to this subsection shall have f orce and effect of a final
judgment or decree and shall be incontestable in any court in this
state.
4. As used in the Oklahoma State University V eterinary Medicine
Authority Act, “proposed agreement” means one or more contracts
regarding the lease and op erations of any hospital or hospitals
owned by the Oklahoma State Unive rsity Veterinary Medicine
Authority, and all other agreements contemplated b y or referred to
in the contract regarding such lease and operations.
SECTION 21. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3060 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. Contingent upon the creation of the Oklahoma State
University Veterinary Medical Trust as provided in Section 19 of
this act, the Oklahoma State Uni versity Veterinary Medicine
Authority is hereby authorized to lease, for a term not more than
fifty (50) years, renewable at the option of the Authority, all real
property owned by the Authority and any other sites under the
control of the Authority to the Oklahoma State Un iversity Veterinary
Medical Trust. Any lease agreement made pursuant to this section
shall be contingent upon:
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1. Prior review by the Attorney Genera l of any contractual
agreement between the Oklahoma State University Veterinary Medic al
Trust and any entity authorized to transa ct business in this state
regarding the lease and operations. The Attorney General shall
disapprove the agreement i f it is determined that provisions of the
agreement are not consistent with state law; and
2. The execution of an operating and lease agree ment between
the Oklahoma State University V eterinary Medical Trust and any
entity authorized to transact business i n this state.
B. Concurrent with the execution of a lease of real property
from the Oklahoma State University Veter inary Medicine Authority to
the Oklahoma State University Veterinary Medical Trust as provided
in subsection A of this section, the Authorit y is authorized to
transfer title to and possession of all tangible and intangible
personal property under its contr ol to the Trust. In any
contractual agreement regarding the lease a nd operations of a
hospital or hospitals between the Oklahoma State Univ ersity
Veterinary Medical Trust and a ny entity authorized to transact
business in this state, the Trust is authorize d to sell or otherwise
convey to such entity all tangible and intang ible personal property
the Trust may receive from the Oklahoma State Uni versity Veterinary
Medicine Authority. Any contract or other agreement which purpor ts
to exercise the powers author ized by this subsection is subject to
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review by the Contingency Revi ew Board, as specified in Section 21
of this act.
C. If a contracting entity fails to take possession of the
leased premises, or abandons or surrenders po ssession of the leased
premises other than to a state age ncy, at any time during the term
of the lease between the Oklahoma State University Veterinary
Medical Trust and the contracting entity, the interest in the real
property leased to the Oklahoma State University Veterinary Medical
Trust by the Oklahoma Stat e University Veterinary Medicine Authority
shall revert to and be the sole and exclusive property of the
Oklahoma State University Veterinary Medicine Au thority.
D. Contingent upon the execution of an agreement between the
Oklahoma State University Veteri nary Medical Trust and any entity
authorized to transact business in this state, as specified in
subsection A of this section, the Oklahoma State Univers ity
Veterinary Medicine Authority is authorized to enter into an
agreement for such entity to provide a nimal patient care services
and perform other related duties imposed upon the Oklahoma State
University Veterinary Medicine Authority by law. Such an agreement
between the Oklahoma State University Veterinary Medicine Authority
and such entity is exempt f rom the requirements of the Oklahoma
Central Purchasing Act and any rules adopted by the Oklahoma Sta te
University Veterinary Medicine Authority pursuant to the
Administrative Procedures Act. The governing committee created by
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the agreement and the Oklaho ma State University Veterinary Medical
Trust shall be subject to the Oklahoma Open Meeting Act and the
Oklahoma Open Records Act to the same extent and w ith the same
exceptions as provided to for the Oklah oma State University
Veterinary Medicine Authority in Section 5 of this act and shall be
exempt from the Oklahoma Central Purchasing Act.
SECTION 22. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3061 of Title 2, unless there is
created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the Oklahoma State University Veterinary Medical Tr ust to be
designated the “Oklahoma State University Veterinary Med ical Trust
Revolving Fund”. The fund shall be a continuing fund, not subj ect
to fiscal year limitations, and shall consist of appropriated
revenues. All monies accruing to the credit of th e fund are hereby
appropriated and may be budgeted and expended by the Oklahoma State
University Veterinary Medical Trust.
SECTION 23. It being immediately necessary for the preservation
of the public peace, health and safety, an eme rgency is hereby
declared to exist, by reason whereof this act shall take effect an d
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
February 22, 2023 - DO PASS AS AMENDED