An Act
ENROLLED SENATE
BILL NO. 86 By: Hall of the Senate
and
Moore of the House
An Act relating to higher education; amending 70 O.S.
2021, Section 3510, which relates to the Board of
Regents of Oklahoma Colleges; adding statutory
reference; allowing the Regional University System of
Oklahoma (RUSO) to issue certain obligations for
certain purposes; amending 70 O.S. 2021 , Sections
3980.2, 3980.3, and 3980.4, which relate to the
Oklahoma Higher Education Promise of Excellence Act
of 2005; adding statutory reference; stating
legislative intent that RUSO become an issuer of
certain obligations; modifying certain definitions;
modifying certain authority to issue certain
indebtedness; authorizing RUSO to issue indebtedness
for certain projects; providing for pledging of
certain revenue for repayment; updating references;
updating statutory language; and making language
gender neutral.
SUBJECT: Higher education
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 3510, is
amended to read as follows:
Section 3510. The Board of Regents of Oklahoma Colleges, also
known as the Regional University Sys tem of Oklahoma (RUSO) pursuant
to Section 3507.1 of this title, shall have the supervision,
management, and control of the Un iversity of Central Oklahoma, East
ENR. S. B. NO. 86 Page 2
Central University, North eastern State University, Northwestern
Oklahoma State University, Sout heastern Oklahoma State University,
and Southwestern Oklahoma State University; and i t shall have the
following additional powers and d uties:
(a) Adopt such rules and regula tions as it deems nece ssary to
govern each of the institutions under its jurisdicti on.
(b) Employ and fix the compensation and duties of such personnel
as it deems necessary, including architects, attorneys, engineers ,
and other professional and technical persons for its operat ion and
for the operation of the institutions under its juris diction. Any
of such personnel having custody of public funds or other public
property may be required to furnish corporate surety bon ds in such
amounts as may be deemed ne cessary by the Board, payable to the
State of Oklahoma this state and conditioned upon a faithful
accounting of all such funds and property.
(c) Enter into contracts, purchase supplies, materials and
equipment, and incur such oth er expenses as may be necessary to mak e
any of its powers effective.
(d) Authorize officials at the several in stitutions under its
jurisdiction to act in its behalf in the making of contracts, or in
carrying out the powers conferred upon it.
(e) Receive and make disposition of monies, grants , and property
from federal agencies, and administer the same in accordanc e with
federal requirements.
(f) Accept gifts of real and personal property, money, and other
things, and use or dispose of the same in accordance with the
directions of the donors or grantors thereof.
(g) Direct the disposition of all monies appropriated by the
Legislature or by the Congress or derived from the sale of bonds or
received from any other source by the institutions under its
jurisdiction.
(h) Acquire and take title to real and personal property in its
name, on behalf of any of the institutions under its jurisdiction,
and convey, exchange, or dispose of, or otherwise manage or control,
ENR. S. B. NO. 86 Page 3
such property in the interest of such institutions , including the
granting of leases, perm its, easements, and licenses over or upon
any such real property. The B oard shall have the power to institute
any legal action in the name of the Board before any court having
jurisdiction of such actions. The Board shall have custody of
abstracts of title and instruments affecting the ownership of or
title to real property acquired for or belonging to such
institutions.
(i) Have supervision and charge of the construction of all
buildings at institutions under its jur isdiction.
(j) Determine the need for and cause to be constructed
dormitories and other buildings, on a self -liquidating basis, at any
institution under its jurisdiction.
(k) Establish and maintain plans for tenure and retirement of
employees of the Board and of the institutions under its
jurisdiction, and for payment of deferred compensation of such
employees; and provide hospital and medical benefits, accident,
health, and life insurance, and annuity contracts, for such
employees and their dependents. Th e Board may pay for all or a part
of the cost thereof for employees, with funds available for the
operation of the institution. Amounts payable by an employee for
such insurance or annuity contracts may, with the consent of the
employee, be deducted from his or her salary.
(l) Maintain an inventory of all property belonging to each of
the institutions under its jurisdiction.
(m) Audit all accounts against the funds allocated to the
institutions under its jurisdiction.
(n) Provide penalties and forfeitures by way of damages and
otherwise for the viola tion of rules and regulations of the Board,
which may be sued for and collected in the name of the Board before
any court having jurisdiction of such actions.
(o) Do all things necessary or convenient to carry out the
powers expressly granted to it by Arti cle XIII-B of the Oklahoma
Constitution and the Statutes of Oklahoma, or to make institutions
ENR. S. B. NO. 86 Page 4
under its jurisdiction effective for the purposes for which they are
maintained or operated.
(p) Issue, on behalf of the institutions supervised and managed
by RUSO, special and limited ob ligations for purposes of such
capital projects as RUSO may deem proper.
SECTION 2. AMENDATORY 70 O.S. 2021, Secti on 3980.2, is
amended to read as follows :
Section 3980.2. A. It is the intent of the Legislature t o
authorize the Board of Regents of the University of Oklahoma, acting
for the benefit of the University of Oklahoma, the Board of Regents
for the Oklahoma Agricultural and Mechanical Colleges, ac ting for
the benefit of Oklahoma State University, the Oklah oma State Regents
for Higher Education, acting for the benefit of other institutions
within The Oklahoma State System of Higher Education, the Board of
Regents of Oklahoma Colleges, also known as the Regional University
System of Oklahoma ( RUSO) pursuant to Section 3507.1 of this title,
acting for the benefit of the institutions supervise d and managed by
RUSO, and the Oklahoma Capitol Improvement Authority to become
issuers of obligations according to the provisions and for the
purposes authorized by this act the Oklahoma Higher Education
Promise of Excellence Act of 2005.
B. Obligations issued by any of the authorized issuers pursuant
to this act the Oklahoma Higher Education Promise of Excellence Act
of 2005 supported by appropriation of reven ues from the Oklahoma
Education Lottery Trust Fund pursuant to Section 41 of Article X of
the Oklahoma Constitution shall be considered and deemed to have
been authorized for the purposes of construction or acquisition of
educational facilities or equipment owned by or under the contr ol of
the Oklahoma State Regents for Higher Education within the meaning
of paragraph 4 of subsection B of Section 41 of Article X of the
Oklahoma Constitution and/or capital outlay projects within the
meaning of paragraph 5 of subsection B of Section 41 o f Article X of
the Oklahoma Constitution.
C. Obligations issued pursuant to the authority of this act the
Oklahoma Higher Education Promise of Excellence Act of 2005 shall
not be deemed or considered to be general obligat ions of the State
of Oklahoma this state, but shall be limited and special obligations
ENR. S. B. NO. 86 Page 5
of the authorized issuer for the benefit of the applicable
institutions within The Okl ahoma State System of Higher Education
under their respective auspices and control.
D. Neither the appropriations po wers of the Legislature
pursuant to Article V of the Oklahoma Constitution nor the powers
described by Section 3 of Article XIII -A of the Oklahoma
Constitution with respect to monies lawfully app ropriated to the
Oklahoma State Regent s for Higher Education nor the power of the
Legislature to impose taxes, generally, shall be pledged to the
repayment of any obligations issued pursuant to the pr ovisions of
this act the Oklahoma Higher Education Promise of Excellence Act of
2005 and any obligation issued by any authorized issuer hereunder
shall affirmatively state this restriction.
E. It is the intent of the Legislature to improve the ability
of the Oklahoma State Regents for Higher Education and the other
specifically designated Boards of Regents within The Ok lahoma State
System of Higher Education to finance capital improvements and to
provide a method by which the total revenues available to ea ch
respective authorized issuer of obligations, or revenues available
within The Oklahoma State System of Higher Educ ation as prescribed
by this act the Oklahoma Higher Education Promise of Excellence Act
of 2005, may be pledged to the repayment of the obl igations,
resulting in a higher credit rating and an interest cost savings to
The Oklahoma State System of Higher Edu cation.
SECTION 3. AMENDATORY 70 O.S. 2021, Section 3980.3, is
amended to read as follows:
Section 3980.3. As used in this act the Oklahoma Higher
Education Promise of Excellence Act of 2005, and unless the context
clearly requires otherwise:
1. “Authorized issuer” means:
a. the Oklahoma State Regents for Higher Education acting
for the benefit of any insti tution within The Oklahoma
State System of Higher Education other than the
University of Oklahoma or Oklahoma State Universit y,
ENR. S. B. NO. 86 Page 6
b. the Board of Regents of the University of Oklahoma
acting for the benefit of the University of Oklahoma,
c. the Board of Regents for the Oklahoma Agricultural and
Mechanical Colleges, acting for the benefit of
Oklahoma State University , and
d. the Board of Regents of Oklahoma Colleges, also known
as the Regional Univ ersity System of Oklahoma (RUSO)
pursuant to Section 3507.1 of this title, acting for
the benefit of the institutions supervised and managed
by RUSO, and
e. the Oklahoma Capitol Improvemen t Authority;
2. “Bonds” means any bonds, notes, obligations, debent ures,
interim certificates, grant and revenue anticipation notes, i nterest
in a lease, lease certificates of participation, lease purchase
agreements, commercial paper, variable interest r ate obligations of
any kind, or other evidences of indebtedness, whe ther or not the
interest on which is includable in the gross income of the
recipients thereof for federal income tax purposes, issued by an
authorized issuer pursuant to this act the Oklahoma Higher Education
Promise of Excellence Act of 2005;
3. “Regents” means either the Oklahoma State Regents for Higher
Education, the Board of Regents of the University of Oklahoma or,
the Board of Regents for the Oklahoma Agricultural and Mechanical
Colleges, or RUSO; and
4. “State Regents” means the Oklahoma State Reg ents for Higher
Education.
SECTION 4. AMENDATORY 70 O.S. 2021, Section 3980.4, is
amended to read as follows:
Section 3980.4. A. The Oklahoma State Regents for Higher
Education shall be authorized to issue indebtedness for capit al
projects to benefit each and every institution within The Oklahoma
State System of Higher Education except the Unive rsity of Oklahoma
and Oklahoma State University .
ENR. S. B. NO. 86 Page 7
B. The Board of Reg ents of the University of Oklahoma shall be
authorized to issue indebtedness for capital projects to benefit the
University of Oklahom a as provided by paragraph (n) of Section 3305
of this title. The Board of Regents of the University of Oklahoma,
acting for the benefit of the University of Oklahoma, shall be
authorized to pledge any lawfully available source of revenue other
than revenues appropriated by the Legislature from tax receipts, but
inclusive of revenues derived from the Oklahoma Education Lotte ry
Act accruing to the credit of the University of Oklahoma to the
repayment of obligations issued pursuant to this subsection and,
with respect to obligations issued for the purpose specified in
Section 160.1 of Title 62 of the Oklahoma Statutes, inclusiv e of
monies accruing to the credit of the Comprehensive Can cer Center
Debt Service Revolving Fund.
C. The Board of Regents for the Ok lahoma Agricultural and
Mechanical Colleges shall be authorized to issue indebtedness for
capital projects to benefit Okla homa State University pursuant to
paragraph 16 of Section 3 412 of this title. The Board of Regents
for the Oklahoma Agricultural and Mechanical Colleges, acting for
the benefit of Oklahoma State University, shall be authorized to
pledge any lawfully avail able source of revenue, other than revenues
appropriated by the Legislature from tax receipts, but inclusive of
revenues derived from the Oklahoma Education Lottery Act, accruing
to the credit of Oklahoma State University to the repayment of
obligations issued pursuant to this subsection.
D. The Board of Regents of Oklahoma Colleges, also known as the
Regional University System of Oklahoma ( RUSO) pursuant to Section
3507.1 of this title, shall be authorized to issue indebtedness for
capital projects to benefit the institutions supervised and managed
by RUSO. RUSO shall be authorized to pledge any lawfully available
source of revenue, other t han revenue appropriated by the
Legislature from tax receipts, but inclusive of revenues derived
from the Oklahoma Education Lottery Act, accruing to the credit of
institutions supervis ed and managed by RUSO to the repayment of
obligations issued pursuant to this subsection.
E. The Oklahoma State Regents for Higher Educ ation shall be
required to affirmatively approve th e issuance of obligations
pursuant to the provisions of this act the Oklahoma Higher Education
Promise of Excellence Act of 2005 by either the Board of Regents of
ENR. S. B. NO. 86 Page 8
the University of Oklahoma, act ing for the benefit of the University
of Oklahoma or, the Board of Regents for the Oklahoma Agricultural
and Mechanical Colleges, acting for the benefit of Oklahoma State
University, or RUSO, acting for the benefit of institutions
supervised and managed by RUSO. For each of the proposed bond
issues authorized pursua nt to this act the Oklahoma Higher Education
Promise of Excellence Act of 2005, a Statement of Essential Facts
shall be prepared by the issuing Board of Regents for the use and
information of prospective bond purchasers. It shall be the duty of
the Oklahoma State Regents for Higher Education to examine such
Statement of Essential Facts and determine that, based upon such
facts and projections, the projected revenue will satisfy the
financial obligation to be incurred under the proposed bond issue.
If the facts are found by the State Regents to be substantially
accurate and if the State Regents find that, based upon such facts
and projections, the projected revenue will satisfy the fina ncial
obligation to be incurred under the proposed bond issue, then the
Oklahoma State Regents for Higher Education shall certify such to
the Governor, the Speaker of the Oklahoma House of Representative s,
and the President Pro Tempore of the Oklahoma State Senate. The
certificate shall be made in substantially the following form:
The Oklahoma State Regents for Higher Education do hereby
certify that the provisions of this section have been complied with
in proper order, for the bond issue mentioned above.
E. F. All obligations except refunding or defeasance
obligations proposed to be issued by an authorized issuer pursuant
to the Oklahoma Higher Education Promise of Excellence Act of 2005
shall be subject to final approval by the Legislature as provided b y
this subsection. The authorized issuer shall communicate the
proposed projects and the terms of the financing to the Governor,
the Speaker of the House of Representatives, and the President Pro
Tempore of the State Senate prior to the time any such obli gations
are sold. The communication required by this subsection shall b e
made not later than April 1 each year. The communication to such
elected officials shall occur upon the same date for purposes o f
computing the time within which action must be take n as further
prescribed by this subsection. The Legislature shall have a period
of forty-five calendar days from the date as of which the
information is communicated to the presiding officers of both
chambers in order to pass a Concurrent Resolution disap proving the
ENR. S. B. NO. 86 Page 9
proposed issuance. If the Concurrent Resolution has not rec eived a
majority of votes of those elected to and constituting both the
Oklahoma House of Representatives and the Oklahoma State Senate by
the end of the forty-fifth day following the date upon which the
proposed issuance is communicated to the presiding o fficers of both
chambers, the proposed issuance shall be deemed to h ave been
approved by the Legislature.
F. G. With the approval of the Oklahoma State Regents for
Higher Education, the total revenues described by subsection B and
subsection C of this section may be pledged to the repayment of
obligations issued by either the Board of Regents of the University
of Oklahoma or obligations issued by the Board of Regents for the
Oklahoma Agricultural and Mechanical Colleges in order to obtain the
highest possible credit rating. If the Board of Regents of the
University of Oklahoma and the Board of Regents for the Ok lahoma
Agricultural and Mechanical Colleges agree to the use of the total
revenues available to each such Board of Regents pu rsuant to this
subsection for a project that benefits either the Uni versity of
Oklahoma or Oklahoma State University or both such c omprehensive
universities, there shall be an agreement executed by both such
Boards of Regents describing the project, the pr incipal amount of
the indebtedness, the terms of the financing , and such other matters
as the two Boards of Regents may mutually ag ree. Such agreement
shall be executed prior to the sale of any obligations by either
Board of Regents with respect to the pr oposed project or projects.
The agreement shall provide for one or the other Board of Regents to
be the authorized issuer with res pect to the project or projects.
The agreement shall also provide for the ownership or control of any
real or personal prope rty to be improved or acquired with the
proceeds from the sale of an y such obligations, including any
requirements for the transfer of real or personal property from one
comprehensive university to the other comprehensive university if
such transfer is req uired in order to promote or ensure the
marketability of any obligat ions sold by either Board of Regents.
G. H. The Oklahoma State Regents for Higher Education may
pledge all lawfully available revenues, other than revenues
appropriated by the Legislature from tax receipts, but inclusive of
revenues derived from the Oklah oma Education Lottery Act, and other
than the revenues describe d by subsection B or subsection, C, or D
ENR. S. B. NO. 86 Page 10
of this section, to the repayment of obligations issued by the State
Regents.
H. I. The authorized issuers shall be subject to the following
restrictions governing the issuance of the obligations authorized by
this act the Oklahoma Higher Education Promise of Excellence Act of
2005:
1. Obligations used to pay for the following assets shall be
repaid in a period not to exceed five (5) years:
a. computers,
b. portable telecommunications equipment costing less
than Fifty Thousand Dollars ($50,000.00),
c. motor vehicles, and
d. any other item of tangible personal property with an
original useful life of six (6) years or less;
2. Obligations used to pay for the following assets shall be
repaid in a period not to exceed ten (10) years:
a. equipment with an original cost of less than One
Hundred Thousand Dollars ($100,000.00 ), per item, and
b. renovation of existing structures, unless the cost of
the renovation exceeds the fair market value of the
existing structure or unl ess the improvement extends
the useful life of the existing stru cture, but in no
case shall the maturity period exceed the period by
which the life of the existing structure is extended;
and
3. Obligations used to pay for all other assets shall be repaid
in a period not to exceed thirty (30) years and in no case shall the
latest maturity date of an obligatio n exceed the expected useful
life of the asset.
ENR. S. B. NO. 86 Page 11
Passed the Senate the 7th day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the 25th day of April, 2023.
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: _______________________________ __