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SENATE FLOOR VERSION
April 12, 2023
AS AMENDED
ENGROSSED HOUSE
BILL NO. 2863 By: Wallace and Moore of the
House
and
Kidd of the Senate
[ veterinary medicine - power to govern - Oklahoma
State University Veterinary Medicine Authority -
membership - powers and duties - reports -
contracting - property - grants - bonds - bonding
authority - interest rate - fees and expenses -
judgment - notices - audits - agreements - funds -
account - procedures - payroll - conditions -
codification - effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A n ew section of law to be codified
in the Oklahoma Statutes as Section 4001 of Title 2, unless there is
created a duplication in numbering, 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 c odified
in the Oklahoma Statutes as Section 4002 of Title 2, unless there is
created a duplication in numbering, reads as follows:
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As used in the Oklahoma State University Veterinary Medicine
Authority Act:
1. "Academic affiliation agreement" means an agreement between
the Oklahoma State University College of Veterinary Medicine and an
entity providing facilities, equipment , and support for the
veterinary medicine education programs of the Oklahoma State
University College of Veterinary Medicine ;
2. "Animal patient" means a large or small animal patient
receiving care from an Oklahoma State University Veterinary Medicine
trainee, intern, resident, or full-time or part-time veterinary
medicine trainer;
3. "Animal teaching hospital" means a hospital designated for
the training and preparation of veterinarians or a component of a
veterinary training program , affiliated with the Oklahoma State
University College of Veterinary Med icine;
4. "Declaration of necessity" means an official action of the
Oklahoma State University Veterinary Medicine Authority to fulfill
the terms of an academic affiliation, statutory provisions or other
agreement or to provide facilities, financing or an y other general
support to enhance the stability, quality or otherwise furtherance
of 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 di sease and testing; and
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5. "Veterinary medicine programs" means educational programs
meeting the guidelines of the American Veterinary Medical
Association (AVMA) Council on Education (COE) offered through or as
an extension of Oklahoma State University or the Oklahoma State
University College of Veterinary Medicine in cooperation with a n
animal teaching hospital, animal diagnostic testing center or
clinic, or other animal health care provider.
SECTION 3. NEW LAW A new section of law t o be codified
in the Oklahoma Statutes as Section 4003 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. The purposes of the Oklahoma State University Veterinary
Medicine Authority Act are to provide for an effective and efficient
administration, to ensure a dependable source of funding, and to
effectuate the mission and purposes of the Oklahoma State University
Veterinary Medicine Authority . The mission and purposes of the
Oklahoma State University Veterinary Medicine A uthority are to
support and upon a declaration of necessity, to serve as teaching
and training facilities for students enrolled at the Oklahoma State
University College of Veterinary Medicine , upon a declaration of
necessity, to acquire and provide a site for conducting veterinary
medical and biomedical research by faculty members of Ok lahoma State
University, to facilitate and upon a declaration of necessity , to
provide care for the animal patients of Oklahoma State University
College of Veterinary Medicin e veterinarian trainers and upon a
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declaration of necessity to provide support or the safety of the
public related to animal disease and testing. The Oklahoma State
University Veterinary Medicine Authority shall maintain a close
affiliation with the Oklah oma State University College of Veterinary
Medicine and shall coordinate their ope rations and activities in a
cooperative manner.
B. 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 animal 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.
C. The Board of Regents for the Oklahoma 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 s ection of law to be codified
in the Oklahoma Statutes as Section 4004 of Title 2, unless there is
created a duplication in numbering, reads as follows:
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A. Any hospital or clinic purchased, leased or constructed by
the Oklahoma State University Veterinary Medicine Authority shall be
operated as an animal hospital or clinic and shall be licensed or
accredited by the appropriate entities . Provided, the Secretary of
Agriculture may waive any such standards, requirements , and
essentials as the Secretary deems necessary.
B. Any such animal hospital or clinic may provide services and
receive payments from animal health care insurance companies and any
state or federal reimbursement programs.
C. Any such animal hospital or clinic shall be available as
teaching and training facilities for the Oklahoma State University
College 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 se ction of law to be codified
in the Oklahoma Statutes as Section 4005 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. There is hereby cre ated the Oklahoma State University
Veterinary Medicine Authority, known and cited also as "OSUVMA", an
agency of the State of Oklahoma, a body corporate and politic, with
powers of government and with the authority to exercise the rights,
privileges, and functions as specified in the Oklahoma State
University Veterinary Medicine Authori ty Act. The Oklahoma State
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University Veterinary Medicine Authority is covered by the
Governmental Tort Claims Act.
B. The Authority shall consist of eight (8) members as follows:
1. One member shall be appointed by the Governor, with the
advice and consent of the Oklahoma State Senate;
2. One member shall be appointed by the Speaker of the Oklahoma
House of Representatives;
3. One member shall be appointed by the President Pro Tempore
of the Oklahoma State Senate;
4. One member shall be the Dean of the Oklahoma State
University College of Veterinary Medicine;
5. One member to 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 Mecha nical Colleges;
7. One member shall be appointed by the Chair of the Board of
Regents for the Oklahoma Agricultural and Mechanical Colleges ; and
8. One ex-officio, non-voting member shall be the Chief
Executive Officer of the Oklah oma State University Veterinary
Medicine Authority who shall be appointed by the Pres ident of
Oklahoma State University .
C. All appointed members shall be appointed by Ju ly 1, 2023.
Of the members of the Authority initially appointed, the member
appointed by the President Pro Tempore of the Senate shall serve a
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term of three (3) years; the member appointed by the Speaker of the
House of Representatives shall serve a term of two (2) years; and
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 Authority, prior to appointment, shall be
a resident of the state and a qualified elector. Each member of the
Authority shall possess dual office holding exemptio n privileges and
shall be exempt from any statutory dual office holding prohibition s.
E. Members shall be removable only for cause by the appointing
authority. Any vacancy occurring on the Authority s hall be filled
by the original appointing authority.
F. The members of the Authority shall serve without
compensation but may be reim bursed for all actual and necessary
travel expenses incurred in performance of their duties in
accordance with the provisi ons of the State Travel Reimbursement
Act.
G. All members of the Authority and administrative personnel of
the Authority shall be subject to the provisions of the Oklahoma
Ethics Commission Rules, Chapter 62 Appendix of Title 74 of the
Oklahoma Statutes.
H. A quorum of the Authority shall be four (4) voting members.
The Authority shall elect a chair and vice-chair from among its
members.
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I. The Authority shall be exempt from the Oklahoma Central
Purchasing Act but shall be subject to the purchasing polic ies of
Oklahoma State University and shall be subject to the Oklahoma Open
Meeting Act and the Oklahoma Open Records Act, except as otherwise
provided by this act. Any information submitted to or compiled by
the Authority except for budgetary information related to
appropriations or the appropriations proces s with respect to the
marketing plans, financial statements, trade secrets, research
concepts, methods or products, or any other proprietary information
of the Authority, persons, firms, associations, p artnerships,
agencies, corporations, institutions of h igher 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 m ay 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 4006 of Title 2, unless there is
created a duplication in numberin g, reads as follows:
A. On and after July 1, 2023, 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 busines s;
2. Adopt an official seal;
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3. Maintain an office at a location to be determined by the
Authority;
4. Sue and be sued, subject to the provision s of the
Governmental Tort Claims Act;
5. Enter into cooperative agreements with the Board of Regents
for the Oklahoma Agricultural and Mechanical Colleges and/or other
Oklahoma State University agencies, authorities, trusts or entities
for educational programs, professional staffing, research and other
veterinary activities;
6. Make and enter into all contrac ts necessary or incidental to
the performance of its d uties and the execution of its powers
pursuant to the Oklahoma State University Veterinary Medicine
Authority Act;
7. Purchase or lease equipment, furniture, materials and
supplies, and incur such othe r expenses as may be necessary to
maintain and operate animal hospitals or clinics, or to discharge
its duties and responsibilities or to ma ke any of its powers
effective;
8. Acquire by purchase, lease, gift, or by any other manner,
and to maintain, use a nd 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 therein unless otherwise
provided by the Oklahoma State University Veterinary Medicine
Authority Act;
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9. Appoint such officers, agents , and employees, including but
not limited to attorneys, as it deems necessary and to prescribe
their duties and to fix their compensation;
10. Accept grants from the United States of America, or from
any corporation or a gency created or designed by the United States
of America, and, in connection with any grant, to enter into such
agreements as the United States of America or such 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 Act.
Nothing in the Oklahoma State University Veterinary Medicine
Authority Act shall authorize the issuance of any bonds of the
Authority payable other than from revenues of the Authority.
Authority revenue bonds issued under the provisions of this act
shall not at any time be deemed to constitute a debt of the state or
of any political subdivision thereof , or a pledge of the faith and
credit of the state or of any political subdivision, but suc h bonds
shall be payable solely from the funds he rein provided. Such
revenue bonds shall contain on the face thereof a statement to the
effect that neither the state 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 issued and that ne ither
the faith and credit nor the taxing power of the state o r any
political subdivision thereof is pledged, or may hereafter be
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pledged, to the payment of the principal of or th e interest on such
bonds. The maximum amount of o utstanding bonds at any tim e shall
not exceed Fifty Million Dollars ($50,000,000.00) unle ss a greater
amount is expressly approved by the Legislature by a concurrent
resolution adopted prior to commencing a ny action in anticipation of
issuance of revenue b onds of the Oklahoma State University
Veterinary Medicine Authority for the greater amoun t;
12. Provide for complete financial audits on all accounts of
the Oklahoma State University Veterinary Medicine Au thority and to
authorize periodic audits by an in dependent external auditing
agency. Such audits shall be performed annually in a format
approved by the State Auditor and Inspector, and all such audits
shall be submitted to the State Auditor and Inspector for review.
Such audits shall be made in accorda nce with generally accepted
auditing standards and government auditing standards. Financ ial
statements shall be prepared 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 appropriate
accounting procedures and controls;
15. Contract with national manufacturers and distributors of
drugs and medical supplies when appro priate to carry out the
purposes of this act;
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16. Do all other things necess ary and proper to implement the
provisions of the Oklahoma State University Veterinary Medicine
Authority Act;
17. Provide funding to other entities related to public health,
animal 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 inc ome taxation of interest on the
Authority's bonds provided by the Internal Revenue Code of 1986, as
amended, or any other federal statute providing a similar exemption;
19. Arrange for guaranties or insur ance of its bonds by the
federal government or by a ny private insurer, and to pay any
premiums therefor; a nd
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 deemed necessary
to effectuate the purposes of the Oklahoma State Univer sity
Veterinary Medicine Authority Act.
B. The Oklahoma State University Veterinary Medicine Authority
shall be subject to the Oklahoma State Finance Act.
C. The Authority shall prepare monthly a "budget vs. actual"
report which shows by budget activit y the monthly and year -to-date
revenues and expenditures compared to budgeted revenues and
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expenditures. Such report shall be submitted to the Offi ce of
Management and Enterprise Services and to the Directors of the House
of Representatives Fiscal Divisio n and the Senate Fiscal Division.
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 co dified
in the Oklahoma Statutes as Section 4007 of Title 2, unless there is
created a duplication in numbering, reads as follows:
All agreements and obligations undertaken, as permitted under
this section, by the Oklahoma 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 fun ds shall be accounted for separately;
and
2. The state shall not assume any liability for private
entities.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4008 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
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subsection B of this section s hall be invested by the State
Treasurer in the manner provided for by law. The return on such
investments shall be credited to the accounts of the Authority.
B. There is hereby created in the State Treasury an official
depository account for the Oklahoma State University Veterinary
Medicine Authority, to be designated the Oklaho ma State University
Veterinary Medicine Authority Agency Special Account. The account
shall consist of an agency clearing account and an agency special
account. All revenues, exc ept federal entitlements an d state
appropriations, gene rated by the Oklahoma State University
Veterinary Medicine Authority shall be deposited in these a ccounts.
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, provi ded the Authority sha ll be authorized to
purchase increased amounts of fidelity bond coverage for e mployees
for whom it is deemed necessary by the Authority. When the amount
listed in Section 85. 58T of Title 74 of the Oklahoma St atutes is
deemed inadequate, the cost of increa sed coverage shall be borne by
the Authority.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4009 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. Subject to the provisions of paragraph 11 of subsection A of
Section 6 of this act, the Oklahoma State University Veterinary
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Medicine Authority may provide by resolution, from time to time, for
the issuance of revenue bonds for its lawful purposes, in such
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 i ndebtedness
shall be payable solely from the revenues of the Authority and such
other funds as may be provided by law for such paymen t. The
Authority may provide for credit enhanc ement as additional security
or liquidity for its bonds and enter into such agreements as may be
necessary or appropriate to provide for the repayment of any funds
advanced by the provider of any such credit e nhancement including
the payment of any fees an d expenses incurred in conne ction
therewith. The bonds of each issue shall bear interest at fixed or
variable rates and shall bear an average interest rate not to exceed
eleven percent (11%) per annum, shall mature at such time or times
not exceeding thirty (30) years from their dat e or dates of issue,
as may be determined by the Authority, and may be made redeemable
before maturity at the option of the Authority, at such time or
times and at such price or pri ces and pursuant to such terms and
conditions as may be fixed by the Author ity prior to the issuance o f
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 principal and
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interest, which may be at any bank and trust company wit hin or
without this state. If any officer whose signature or facsimile of
whose signature appears on any bonds shall cease to be said officer
before the delivery of the bonds, the signature or the fac simile
shall nevertheless be valid and sufficient for a ll purposes, the
same as if the person had remained in office until such delivery.
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 ins truments subject to t he
laws of this state. The Authority may sell the bonds in such
amounts and in such manner, either at public or private sale, 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 sales must be approved by the
State Bond Advisor and the Bond Oversight Commission. Prior to the
preparation of definit ive bonds, the Authority, su bject to like
restrictions, may issue interim receipts or temporary bonds, with or
without coupons, exchangeable for definitive bonds which have been
executed and are available for delivery. The Autho rity may also
provide for the replacement of any bonds which have become mut ilated
or which have been destroyed or lost. Except as otherwise provided
by Section 14 of this act, bonds may be issued pursuant t o the
provisions of the Oklahoma State Universit y Veterinary Medicine
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Authority Act without obtaining t he consent of any dep artment,
division, commission, board, bureau, or agency of this state, and
without any other proceedings or the occurrence of any ot her
conditions or things than those proceedings, conditions, or things
that are specifically required b y the Oklahoma State University
Veterinary Medicine Authority.
C. The Authority may, by resolution, provide for the issuance
of refunding bonds then ou tstanding, including the payment of any
redemption premium, any interest ac crued to the date of redempti on
of such bonds, and for incurring additional 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 Section 4010 of Title 2, unless there is
created a duplication in numbering, reads as follows:
Before any bond shall be issued and del ivered by the Oklahoma
State University Veterinary Medicine Authority, a certified copy of
the proceedings for the issuance thereof, together with any other
information which the Attorney General of th e State of Oklahoma may
require as the Bond Commissione r of the State of Oklahom a, shall be
submitted to the Attorney General. If the Attorney General shall
find that such bonds have been issued in accordance with law, the
Attorney General shall approve such bonds and exec ute a certificate
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to that effect. The Attorney General shall file such certific ates
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, an d issued in accordance
with the 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 Stat utes as Section 4011 of Title 2, unless there is
created a duplication in n umbering, reads as follows:
The Oklahoma State University Veterinary Medicine Authority or
the Oklahoma State University Veterinary Medical Trust may file an
application with the Su preme Court of the State of Oklahoma for
approval of any bonds to be issued under the provisions of the
Oklahoma State University Veterinary Medicine Authority Act, and
exclusive original jurisdiction is hereby conferred upon the Supreme
Court to hear and determine such application. The Supreme C ourt
shall give such applications precedence over the other business of
the Court and consider and determine the validity of the bonds and
consider the application and any protest which may be filed thereto.
Notice of the hearing on each application shall be given by notice
published in a newspaper of general circulation in this state that
on a day named the Authority or the Trust will ask the Court to hear
the application and approve the bonds. Such notice shall inform all
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interested parties that they ma y file a protest against the issu ance
of the bonds, may be present at the hearing, and may contest the
legality thereof. Such notice shall be published one time, not less
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 properly
authorized in accordance with the Oklahoma State University
Veterinary Medicine Authority Act, and that when issued such bonds
will constitute valid obligations in accordance with their terms,
the Court shall render its written opinion approving the bonds and
shall fix the time within which the petition for rehearing may be
filed. The decision of t he Court shall be a judicial determination
of the validity of the bonds, shall be conclusive as to the
Authority of the Trust, its officers and agents, and thereafter the
bonds so approved and the revenues pledged to their payment shall be
incontestable in any court in the State of Oklahoma.
SECTION 12. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4012 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 Veterinary Medicine Authority shall not constitute
a debt of the state or of any political subdivision thereof, or a
pledge of the full faith and credit of the state, or o f any
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political subdivision thereof, but such bonds shall be payable
solely from the funds provided therefor. The forms of the bonds so
issued shall contain on the face thereof a statement to the effect
that neither the state nor the Authority shall be ob ligated to pay
the same or the interest thereon except from the revenues of the
Authority pledged to the payment of such bo nds and that neither the
faith and credit nor the taxing power of the state or any politica l
subdivision thereof is pledged, or may h ereafter be pledged, to the
payment of the principal of or interest on such bonds. The bonds so
issued shall be exempt fro m taxation by the State of Oklahoma and
any political subdivision thereof, including the in come therefrom,
and any gain from the sale thereof.
SECTION 13. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4013 of Title 2, unless there is
created a duplication in numbering, reads as follows:
Bonds issued pursuant to provisions of the Oklahoma State
University Veterinary Medicine Authority Act are hereby made
securities in which all public officers and public boards, agencies
and instrumentalities of the state and its political subdivisions,
all banks, trust companies, trust and loan as sociations, investment
companies, and others carrying on a banking business, and all
insurance companies and insurance associations, and others carrying
on an insurance business, may legally and properly invest. Su ch
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bonds are also approved as collateral security for the deposit of
any public funds and for the investment of trust funds.
SECTION 14. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4014 of Title 2, unless there is
created a duplication i n numbering, reads as follows:
The Oklahoma State University Veterinary Medicine Authority
shall submit an annual report to the Governor, the Speaker of the
Oklahoma House of Representatives , and the President Pro Tempore of
the Oklahoma State Senate. Such report shall b e submitted in
accordance with the requirements for financial statement audits in
Section 212A of Title 74 of the Oklahoma Statutes and shall include
an account of the operations and actions of the Au thority and an
accounting of all revenue received and di sbursed by the Authority
for the previous fiscal year. The report shall include an
accounting of expenses related to each of the following:
1. Education and training of students of the Oklahoma Stat e
University College of Veterinary Medicine, resident veterinarians
and others;
2. Care and treatment of animal patients for whom the Authority
receives any form of state or federal reimbursement; and
3. Research.
SECTION 15. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4015 of Title 2, unless there is
created a duplication in numbering, reads as follows:
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A. There is hereby created in the State Treasury a revolving
fund for the Oklahoma State Univ ersity Veterinary Medicine
Authority, to be designated t he "Oklahoma State University
Veterinary Medicine Authority Disbursing Fund". The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of appropriated revenues a nd federal entitlements. All
monies accruing to the cre dit of said fund are hereby appropriated
and may be budgeted and expended by the Oklahoma State University
Veterinary Medicine Authority as provided in subsection B of this
section.
B. Following the execution of a lease of real properties under
the jurisdiction of the Oklahoma State University Veterinary
Medicine Authority to the Oklahoma State University Veterinary
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 Oklahoma State University
Veterinary Medical Trust 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 the
Authority.
SECTION 16. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4016 of Title 2, unless there is
created a duplication in numberin g, reads as follows:
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A. There is hereby created in the State Treasury a revolving
fund for the Oklahoma State University Veterinary Medicine
Authority, to be designated the "Oklahoma State University
Veterinary Medicine Authority Marketing Revolving Fund ". The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all monies received by the Oklahoma State
University Veterinary Medicine Authority pursuant to the provisions
of this section. All monies accruing to the credit of said fund are
hereby appropriated and may be budgeted and expended by the Oklahoma
State University Veterinary Medicine Authority for the purpose of
marketing research and planning, public e ducation, 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 authoriz ed by the Legislature.
Expenditures from said fund shal l be made upon warrants issued by
the State Treasurer against claims filed as prescribed by law with
the Director of the Office of Management and Enterprise Serv ices for
approval and payment.
B. An amount equal to one -tenth of one percent (1/10 of 1%) of
the total annual operating budget of the Oklahoma State University
Veterinary Medicine Authority and such other funds as may be
specifically designated for deposit to the fund shall be deposited
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in the Oklahoma State University Veterinary Medicine Authority
Marketing Revolving Fund.
C. The Oklahoma State University Veterinary Medicine Authority
Marketing Revolving Fund shall be audited annually by the State
Auditor and Inspector. The Oklahoma State University Veterinary
Medicine Authority shall reimburse the State Auditor a nd Inspector
from the Oklahoma State University Authority Marketing Revolving
Fund for any expenses incurred in auditing said fund.
SECTION 17. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4017 of Title 2, unless there is
created a duplication in numbering, reads as follows:
A. The Oklahoma State University Veterinary Medicine Authority
may regulate traffic and the parking of vehicles on property used by
or for the Oklahoma State University Veterinary Medicine Authority.
Such regulations shall be in writing, and copies thereof, including
amendments thereto, shall be filed in the office of the Secretary of
State, and in the office of the city clerk of the City of
Stillwater. The municipal court of t he City of Stillwater shall
have jurisdiction to hear and determine prosecutions for violations
of such regulations, which may be prosecuted and shall be punishable
as violations of ordinances of the City of Stillwater. The
Authority may cause to be remov ed, and may enter into contracts for
such purpose, any vehicle parked in violation of such regulations.
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B. The Authority may appoint campus police officers and guards
for buildings and grounds of the Oklahoma State University
Veterinary Medicine Authority in the same manner and with the same
powers as campus police appointed by governing boards of state
institutions for higher education under the provisions of Section
360.15 et seq. of Title 74 of the Oklahoma Statut es, 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 police offic ers shall be
certified as provided for i n 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 cod ified
in the Oklahoma Statutes as Section 4018 of Title 2, unless there is
created a duplication in numbering, reads as follows:
The Oklahoma State University Veterinary Medicine Authority is
authorized to place r esident veterinarians of the Oklahoma State
University College of Veterinary Medicine on the Oklahoma State
University Veterinary Medicine Authority payroll, and is further
authorized to acquire health, life, and dental insurance for such
residents. Such res idents shall not be considered employees of the
Authority and shall not be eligible to participate in the Oklahoma
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Public Employees Retirement System. This section shall not preclude
the right of the Oklahoma State University Veterinary Medicine
Authority to terminate, for cause, the practicing privileges of any
resident veterinarian within the Oklahoma State University
Veterinary Medicine Authority.
SECTION 19. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4019 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 approval shall be contingent upon
satisfaction of the following conditions:
1. Finalizing of the declaration of trust;
2. Adoption of the declaration of trust by an official action
of the trustees of the Trust;
3. Submission of the Trust for acceptance of the beneficial
interest and approval as required by Section 177 of Title 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 Veterinar y Medical Trust is
to effectuate the purposes of the Oklahoma State
University Veterinary Medicine Authority as
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established in the Oklahoma State University
Veterinary Medicine Authority Act,
b. except as otherwise p rovided by law, provide that the
title to real property held by the Oklahoma State
University Veterinary Medicine Authority shall not be
transferred, conveyed, or assigned to 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 the Oklahoma
State University Veterinary Medical Trust or the
trustees of the Trust s hall not be secured with or
create a lien upon real property 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 shall not include
fee simple title to real property owned by the
Oklahoma State University Veterinary Medicine
Authority,
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e. clearly state that the creation of the Oklahoma State
University Veterinary Medica l Trust shall not in any
way reduce, limit or interfere with the power granted
to the Oklahoma State University Veterinary Medicine
Authority in the Oklahoma State University Veterinary
Medicine Authority Act,
f. provide that any lease or contractual agree ment
involving use of the real property to which title is
held by the Oklahoma State University Veterinary
Medicine Authority and any improvements thereto shall
contain a provision and covenants requiring the proper
maintenance and upkeep of the real prope rty and
improvements,
g. provide that the trustees 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 the
duty to submit an annual report to the Governor, the
Speaker of the House of Represent atives, and the
President Pro Tempore of the Senate. The report shall
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be submitted by January 1 of each year and shall
include an account of all operations, actions of the
Trust, and an account of all revenue received and
disbursed by the Trust for the pr evious fiscal year.
The report shall also provide a complete accounting of
how the Trust meets its primary function of
effectuating the purposes of the Oklahoma State
University Veterinary Medicine Authority , as
established in the Oklahoma State Universit y
Veterinary Medicine Authority Act.
B. The Oklahoma State University Veterinary Medical Trust shall
require any agreements which it enters into with any entity pursuant
to Section 22 of this act for the operations of facilities leased by
the Oklahoma State University Veterinary Medicine Author ity to the
Trust to include, but not be limited to:
1. The inclusion of all the members of the Trust, representing
the State of Oklahoma in a governing committee;
2. Binding arbitration shall not be required by such agreements
for resolving issues under 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 majori ty of the state
appointees and the approval o f a majority of the private entity
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appointees to the governing committee. Major decisions shall
include:
a. approval of the operating and capital budgets,
b. sale or disposition of assets over Two Hundred Fif ty
Thousand Dollars ($250,000.00),
c. the termination, transfer, material addition, or
material diminution of animal medical services at the
Oklahoma State University Veterinary Hospital related
to and part of a teaching program of the Oklahoma
State University College of Veterinary Medicine , and
d. other major decisions as may be agreed upon by the
Trust and the private entity.
C. To the extent it is determined by legislative enactment that
the Trust has expended funds in contravention of its missio n as set
forth in this section, the Trust shall remit , upon a thirty (30) day
written notice from the Oklahoma 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 4020 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 20 of
this act, the Trust, prior to acceptance, shall submit to the
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Contingency Review Board for review the proposed agreement regarding
the lease and operations of any animal hospital or hospitals owned
by the Oklahoma State University Veterinary Medicine Authorit y to
any entity authorized to transact business in the state and an
independent statement as to the fairness of said proposed agreement
for the State of Oklahoma. The Contingency Review Board shall upon
receipt of the proposed agreement meet within fiftee n (15) business
days to review the proposed agreement; and unless the Contingency
Review Board disapproves the proposed agreement, the agreement may
be executed but no lease of the animal hospital or hospitals s hall
become effective until after Supreme Cou rt approval pursuant to
subsection B of this section.
B. 1. If a proposed agreement is not disapprov ed by the
Contingency Review Board pursuant to subsection A of this section,
the Oklahoma State University Veterinary Medicine Authority and
Oklahoma State University Veterinary Medical Trust, within thirty
(30) calendar days after the time for Contingency Review Board
action has expired, may file a petition with the Supreme Court of
Oklahoma for a declaratory j udgment 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 T rust, as applicable, under the Oklahoma State
University Veterinary Medicine Authority Act and Oklahoma Statutes.
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Exclusive original jurisdiction is co nferred upon the Supreme Court
to hear and determine such petitions. The Supreme Court shall give
such petitions precedence over other business of th e Court except
habeas corpus proceedings.
2. Notice of the hearing of such a petition shall be given by a
notice published in a newspaper of general circulation in this state
that on a day specified the Supreme C ourt will hear the petition to
approve the proposed agreement and enter a declaratory judgment.
The notice shall be published one time not less than ten (10) days
prior to the date specified for the hearing. The notice shall
inform property owners, taxpayer s, citizens and all persons having
or claiming any right, title, or interest in the proposed agreement
or properties or funds to be affected by th e implementation of the
proposed agreement, or affected in any way thereby, that they may
file protests agains t the approval of the proposed agreement , and be
present at the hearing to contest the legality of the proposed
agreement. The hearing may be adj ourned from time to time at the
discretion of the Court.
3. If the Court is satisfied that the proposed agre ement is in
accordance with the Oklahoma State University Veterinary Medicine
Authority Act and Oklahoma Statutes, the Court shall enter a
declaratory judgment approving and declaring the proposed agreement
to be valid and conclusive as to the Authority, the T rust, and all
other parties to the pr oposed agreement; and, upon petition of the
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Authority, shall issue an order permanently enjoining all persons
described in the notice required by this subsection from thereafter
instituting any action or proceeding cont esting the validity of the
proposed agreement. A declaratory judgment rendered pursuant to
this subsection shall have force 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 Univer sity Veterinary Medicine
Authority Act, "proposed agreement" means one or more contracts
regarding the lease and operations of any animal hospital or
hospitals owned by the Oklahoma State University Veterinary Medicine
Authority and all other agreements co ntemplated by 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 4021 of Title 2, unless there is
created a duplication in n umbering, reads as follows:
A. Contingent upon the creation of the Oklahoma State
University Veterinary Medical Trust as provided in Section 20 of
this act, the Oklaho ma State University Veterinary Medicine
Authority is hereby authorized to lease, for a t erm of 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 University 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 General of any contractual
agreement between the Oklahoma State University Vet erinary Medical
Trust and any entity authorized to transact business in the State of
Oklahoma regarding the lease and op erations. The Attorney General
shall disapprove the agreement if it is determined that provisions
of the agreement are not consistent w ith state law; and
2. The execution of an operating and lease agreement between
the Oklahoma State University Veterinar y Medical Trust and any
entity authorized to transact business in the State of Oklahoma.
B. Concurrent with t he execution of a lease of real property
from the Oklahoma State University Veterinary Medicine Authority to
the Oklahoma State University Veterin ary Medical Trust as provided
in subsection A of this section, the Authority is authorized to
transfer title to and possession of all ta ngible and intangible
personal property under its control to the Trust. In any
contractual agreement regarding the leas e and operations of an
animal hospital or hospitals between the Oklahoma State University
Veterinary Medical T rust and any entity authorized to transact
business in the State of Oklahoma, the Trust is authorized to sell
or otherwise convey to such entity a ll tangible and intangible
personal property the Trust may receive from the Oklahoma State
University Veterinary Medicine Authority . Any contract or other
agreement which purports to exercise the powers authorized by this
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subsection is subject to review b y the Contingency Review Board, as
specified in Section 21 of this act.
C. If a contracting entity fails to t ake possession of the
leased premises, or abandons or s urrenders possession of the leased
premises other than to a state agency, at any time durin g the term
of the lease between the Oklahoma State University Veterinary
Medical Trust and the contracting ent ity, the interest in the real
property leased to the Oklahoma State University Veterinary Medical
Trust by the Oklahoma State University Veterinary Medicine Authority
shall revert to and be the sole and exclusive property of the
Oklahoma State University Veterinary Medicine Authority .
D. Contingent upon the execution of an agreement between the
Oklahoma State Univers ity Veterinary Medical Trust and any entity
authorized to transact business in the State of Oklahoma, as
specified in subsection A of this sec tion, the Oklahoma State
University Veterinary Medicine Authority is authorized to enter into
an agreement for suc h entity to provide animal patient care services
and perform other related duties imposed upon the Oklahoma State
University Veterinary Medicine Authority by law. Such an agre ement
between the Oklahoma State University Veterinary Medicine Authority
and such entity is exempt from the req uirements of the Oklahoma
Central Purchasing Act and any rules adopted by the Oklahoma State
University Veterinary Medicine Authority pursuant to the
Administrative Procedures Act. The governing committee created by
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the agreement and the Oklahoma State University Veterinary Medical
Trust shall be subject to the Open Meeting Act and the Oklahoma Open
Records Act to the sam e extent and with the same excepti ons as
provided for the Oklahoma State University Veterinary Medicine
Authority in Section 5 of this ac t and shall be exempt from the
Oklahoma Central Purchasing Act.
SECTION 22. NEW LAW A new sec tion of law to be codified
in the Oklahoma Statutes as Section 4022 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 Veterinar y Medical Trust to be
designated the "Oklahoma State University Veterinary Medical Trust
Revolving Fund". The fund shall be a continuing fu nd, not subject
to fiscal year limitations, and shall consist of all monies directed
for deposit to the fund by law . All monies accruing to the credi t
of the fund are hereby appropriated and m ay be budgeted and expended
by the Oklahoma State University Ve terinary Medical Trust in
accordance with the provisions of this act. Expenditures from said
fund shall be made upo n warrants issued by the State Tre asurer
against claims filed as prescribed by law with the Director of the
Office of Management and Enterpr ise Services for approval and
payment.
SECTION 23. This act shall become effective July 1, 2023.
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SECTION 24. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and a pproval.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 12, 2023 - DO PASS AS AMENDED