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SENATE FLOOR VERSION
February 9, 2023
SENATE BILL NO. 704 By: Haste
An Act relating to the Oklahoma State Uni versity
Medical Authority; amending 63 O.S. 2021, Section
3275, which relates to members; modifying
qualifications; adding members; removing obsolete
language; authorizing v irtual meetings under certain
conditions; amending 63 O.S. 2021, Section 3276 ,
which relates to powers and duties of the Authority;
modifying and adding powers and duties; removing
certain prohibition; amending 63 O.S. 2021, Section
3283, which relates to revenue bonds; specifying
allowed payment sources for bonds ; amending 63 O.S.
2021, Section 3290, which relates to the Oklahoma
State University Medical Trust; increasing certain
asset limit for purpose of certain determination;
authorizing virtual meetings under certain
conditions; exempting the Authority from the Public
Competitive Bidding Act of 1974 ; defining term;
repealing 63 O.S. 2021, Sections 3287 a nd 3291, which
relate to the Oklahoma State Univers ity Medical
Authority; providing for codification; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 3275, is
amended to read as follows:
Section 3275. A. There is hereby created the Oklahoma State
University Medical Authority, a n agency of the State of Oklahoma, a
body corporate and politic, with powers of gove rnment and with the
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authority to exercise the rights, privileges and functions as
specified in the Oklahoma State University Medical Authority Act.
The Oklahoma State Univ ersity Medical Authority is covered by the
Governmental Tort Claims Act.
B. The Authority shall consist of seven (7) eight (8) members
as follows:
1. One member shall be appointed by the Governor, with 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 b e the Chief Executive Officer of the
Oklahoma Health Care Authority, or a designee;
5. One member shall be the President of the Oklahoma State
University Center for Health Sciences;
6. One member to shall be appointed by the President of
Oklahoma State University who shall be the Chief Executive Officer
of any entity, other than the Oklahom a State University Medical
Trust, with whom the Oklahom a State University College of
Osteopathic Medicine has entered into an Academic Affiliation
Agreement to serve as the primary site of practice and teaching
hospital for medical residency programs, or a designee; and;
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7. One member shall be a member of the Board of Regents for the
Oklahoma Agricultural and Mechanical Colleges, or his or her
designee, as selected by th e chair of the Board of Regents; and
8. One member shall be the Chief Executive Off icer of the
Oklahoma State University Medical Authority wh o shall be an ex
officio, nonvoting member.
C. All appointed members shall be appointed by June 1, 2006.
Of the members of the Authority initially appointed, the member
appointed by the President Pro Tempore of the Senate shall serve a
term of three (3) years; the member appointed b y the Speaker of the
House of Representatives shall serve a term of two (2) years; an d
the member appointed by the Governor shall serve a term of one (1)
year. Successors Members shall be appointed for terms of three (3)
years.
D. Each member of the Auth ority, prior to appointment, shall be
a resident of the state and a qualified elector .
E. Members shall be removable only for cause by the appointing
authority. Any vacancy oc curring on the Authority shall be filled
by the original appointing authority.
F. E. The members of the Authority shall serve without
compensation but may be reimb ursed for all actual and necessary
travel expenses incurred in performance of their duties i n
accordance with the provisions of the State Trav el Reimbursement
Act.
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G. F. All members of the Authority and administrative personnel
of the Authority shall be s ubject to the provisions of the Oklahoma
Ethics Commission Rules, Chapter 62 Appendix of Tit le 74 of the
Oklahoma Statutes.
H. G. A quorum of the Authority shall be four (4) voting
members. The Authority shall elect a chair and vice chair from
among its members. The chair must be an appointed member of the
Authority.
I. H. The Authority shall be exempt from the Oklahoma Central
Purchasing Act but shall be subject to the purchasing policies of
Oklahoma State University Center for Health Sciences and shal l be
subject to the Oklahoma Open Meeting Act and the Oklahoma Open
Records Act, except as o therwise 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, res earch concepts, methods or
products, or any other proprietary information of th e Authority,
persons, firms, associations, partnerships, agencies, corporations,
institutions of higher education, nonprofit research institutions or
other entities shall be con fidential, except to the extent that the
person or entity which provided the information or which is the
subject of the information consents to disclosure. Executi ve
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sessions may be held to discuss such materials if deemed necessary
by the Authority.
I. The Authority may hold meetings by videoconference where
each member of the Authority is visible and audible to each other
and the public through a video monitor at the designated meeting
site and online website, subject to the following:
1. Each public meeting held by videoconference shall be
recorded either by written, electronic, or other means;
2. The meeting notice and agenda prepared in advance of the
meeting, as required by law, shall indicate at least one
videoconferencing location and shall state the location, address,
and telephone number of ea ch available videoconference site and
provide the online website address to view the meeting ; and
3. The meeting agenda prepared in advance of the meeting, as
required by law, shall indicate which members of the Authority will
appear by video conference a nd which will be present at the
designated meeting site.
SECTION 2. AMENDATORY 63 O.S. 2 021, Section 3276, is
amended to read as follows:
Section 3276. A. On and after July 1, 2006, the The Authority
shall have the power and dut y to:
1. Adopt bylaws and pr omulgate rules for the regulation of its
affairs and the conduct of its bus iness;
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 Cl aims Act;
5. Enter into cooperative agreements with th e Board of Regents
for the Oklahoma Agricultural and Mechanical Colleges for
educational programs, professional staffing, research and other
medical activities;
6. Make and enter into all contracts ne cessary or incidental to
the performance of its duties and the execution of its powers
pursuant to the Oklahoma State University Medical Authority Act;
7. Purchase or lease equipment, furniture, materials and
supplies, and incur such other expenses as may be necessary to
maintain and operate hospitals or clin ics, or 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 contrac t 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 Medical Authority Act;
9. Appoint such officers, agents a nd employees, including but
not limited to attorneys, a s it deems necessary and to prescribe
their duties and to fix their compensation;
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10. Accept grants from the United States of America, or from
any corporation or agency cr eated or designed by the Unit ed 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 Stat e University Medical Authority Act shall
authorize the issuance of any bonds of the Authority payable other
than from revenues of the Authority . Funds appropriated to the
Authority shall not be used for issuance of bonds. Authority
revenue bonds issued u nder 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 cred it of
the state or of any pol itical subdivision, but such 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 obliga ted to pay the
same or the interest thereon except from the revenues of the project
or projects for which they are issued and that neither the faith and
credit nor the taxing power of the state or any political
subdivision thereof is pledged, or may hereaf ter be pledged, to the
payment of the principal of or the interest on such bonds. Th e
maximum amount of outstanding bonds at any time shall not exceed
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Fifty Million Dollars ($50,000,000.00) unless a greater amount is
expressly approved by the Legislature by a concurrent resolution
adopted prior to commencing any action in anticipation of issuance
of revenue bonds of the Oklahoma State University Medical Authority
for the greater amount;
12. Provide for complet e financial audits on all accounts of
the Oklahoma State University Medical Authority and to authorize
periodic audits by an independent external auditing agenc y. 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 Inspec tor for review. Such audits shall be made
in accordance with generally accepted audi ting standards and
government auditing standards. Financial statements shall be
prepared in accordance with generally accepted accounting
principles. In addition to said audits, whenever the State Aud itor
and Inspector deems it appropriate, and at least once each five (5)
years, or upon receipt of a request to do so from the Governor, the
Attorney General, the President Pro Tempore of the Senat e, the
Speaker of the House of Representatives or the Autho rity, the State
Auditor and Inspector shall conduct a special audit of the
Authority;
13. Engage in long-term planning for the operation and
management of the Authority;
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14. Establish petty cash funds and provide for approp riate
accounting procedures and controls;
15. Contract with national manufacturers a nd distributors of
drugs and medical supplies when appropriate to carry out the
purposes of this act;
16. Provide funding to other entities for purposes related to
public health, teaching, research, an d the purposes of the Oklahoma
State University Medica l Authority Act when provided funding for
such purposes by the Legislature;
17. Do all other things necessary and proper to implement the
provisions of the Oklahoma State University Medical Authority A ct;
17. 18. Waive, by such means as the Authority dee ms
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;
18. 19. Arrange for guaranties or insura nce of its bonds by the
federal government or by any private insurer, and to pay any
premiums therefor; and
19. 20. Make a declaration of nece ssity as provided in Section
3273 of this title. 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 Okl ahoma State
University Medical Authority Act.
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B. The Oklahoma State Univer sity Medical Authority shall be
subject to the Oklahoma Budget Law of 1947.
C. The Authority shall prepare monthly a “budget vs. actual”
report which shows by budget activity the m onthly and year-to-date
revenues and expenditur es compared to budgeted reve nues and
expenditures. Such report shall b e submitted to the Office of
Management and Enterprise Services and to the Directors of the House
of Representatives Fiscal Division and t he Senate Fiscal Division.
D. The Authority sh all be subject to the profes sional risk
management program provided for in Section 85.58A of Title 74 of the
Oklahoma Statutes.
SECTION 3. AMENDATORY 63 O.S. 2021, Section 3283, is
amended to read as follows:
Section 3283. Revenue bonds of the Oklahoma Stat e University
Medical Authority issued pursuant to the provisions of the Oklahoma
State University Medical Authority shall not constitute a debt of
the state or of any political subd ivision thereof, or a pledge of
the full faith and credit of the state, or of any political
subdivision thereof, but such bonds shall be payable solely from the
funds provided therefor from the Authority’s revenues or
appropriated by the Legislature . 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 obligated to pay the
same or the interest thereon except from the revenues of the
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Authority pledged to the payment of such bonds and that neither the
faith and credit nor the taxing power of t he state or any political
subdivision thereof is pledged, or may hereafter be pledged , to the
payment of the principal of or interest on such bonds. The bonds so
issued shall be exempt from taxation by the State of Oklahoma and
any political subdivision t hereof, including the inc ome therefrom,
and any gain from the sale thereof.
SECTION 4. AMENDATORY 63 O.S. 2021, Section 3290, is
amended to read as follows :
Section 3290. A. The State of Oklahoma expressly ap proves the
creation of a public trust to be named the “Oklahoma State
University Medical Trust ”, of which the State of Oklahoma shall be
the beneficiary, provided suc h approval shall be contingent upon
satisfaction of the following conditions:
1. Finalizing of the declaratio n 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 acceptanc e 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 shal l:
a. clearly state that the principal pur pose of the
Oklahoma State University Medical Trust is to
effectuate the purposes of the Oklahoma State
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University Medical Authority as established in the
Oklahoma State University Medical Authority Act,
b. except as otherwise provided by law, provide that the
title to real property held by the Oklahoma State
University Medical Authority shall not be transferred,
conveyed, or assigned to the Oklahoma Sta te University
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 Oklah oma
Statutes,
c. provide that any indebtedness incurred by the Oklahoma
State University Medical Trust or the trustees of the
Trust shall not be secured with or create a lien upon
real property to which title is held by the Oklahoma
State University Medica l Authority and shall not
involve the bonding capacity of the Oklahoma State
University Medical Authority,
d. provide that the trust estate of the Oklaho ma State
University Medical Trust shall no t include fee simple
title to real property owned by the Okla homa State
University Medical Authority,
e. clearly state that the creation of the Oklahom a State
University Medical Trust shall not in any way reduce,
limit or interfere with the power granted t o the
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Oklahoma State University Medical Authority in the
Oklahoma State University Medical Authority Act,
f. provide that any lease or contractual agre ement
involving use of the real property to which title is
held by the Oklahoma State University Medical
Authority and 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 trustees of the Oklahoma State
University Medical Trust shall be the actin g members
of the Oklahoma State University Medical Authority as
provided in the Oklahoma State University Medical
Authority Act, and
h. provide that the trustees of the Ok lahoma State
University Medical Trust shall have the duty to submit
an annual report to the Governor, the President Pro
Tempore of the Senate and the Speaker of the House of
Representatives. The report shall be submitted by
January 1 of each year and shal l include an account of
all operations, actions of the Trust, account of all
revenue received and disbursed by the Trust for the
previous fiscal year. The report shall also provide a
complete accounting of how the Trust meets its prima ry
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function of effectuating the purposes of the Oklahoma
State University Medical Authority, as establish ed in
the Oklahoma State University Medical Authority Act.
B. The Oklahoma State University Medical Trust shall require
any agreements which it enters into with any entity pursuant to
Section 22 of this act for th e operations of facilities leased by
the Oklahoma State University Medical Authority to the Trust to
include, but not be limited to:
1. The inclusion of all the members of the Trust, except th e
Chief Executive Officer of the Oklahoma Health Care Authority , as
five of the six members representing the State of Oklahoma in a
governing committee, and the sixth member of the governing committee
representing the State of Oklahoma to be designated by the President
of Oklahoma State University;
2. Binding arbitration shall not be required by such agreeme nts
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 de cision by the governing
committee must include the approval of a majority of the stat e
appointees and the approval of a majority of the private en tity
appointees to the governing committee. Major decisions shall
include:
a. approval of the operating and capital budgets,
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b. sale or disposition of a ssets over Two Hundred Fifty
Thousand Dollars ($250,000.00) Five Hundred Thousand
Dollars ($500,000.00),
c. the termination or transfer or material addition or
material diminution of medical se rvices at the
Oklahoma State University Medical Center related to
and part of a teaching program of the O klahoma State
University Center for Health Sciences, and
d. other major decision s 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 i ts mission as set
forth in this section, the Trust shall remit, upon thirty (30) days’
written notice from the Oklahoma State University Medical Author ity,
such sum or sums to the Oklahoma State University Medical Authority.
D. In the event the Trust ente rs into a joint venture or
acquires an interest in a not -for-profit entity to effectuate the
administration of the mission of the Trust, that entity sh all not be
subject to the Oklahoma Open Meeting Act and the Okl ahoma Open
Records Act. Any information s ubmitted to or compiled by the Trust
with respect to marketing plans, financial statements, trade
secrets, research concepts, methods or products or an y other
proprietary information submitted to or compiled by the Trust,
persons, firms, associations, part nerships, agencies, corporations,
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institutions of higher education, nonprofit re search institutions or
other entities shall be confidential, except to the extent that the
person or entity which provided such inform ation or which is the
subject of such info rmation consents to disclosure. Executive
sessions may be held to discuss such materials if deemed necessary
by the Trust. The provisions of this sub section shall not ap ply to
budgetary information related to app ropriations or the
appropriations process.
E. The Trust may hold meetings by videoconference where each
member of the Trust is visible and audible to each other and the
public through a video monitor at the designated meeting site and
online website, subj ect to the following:
1. Each public meeting held by videoconference shall be
recorded either by written, electronic, or other means;
2. The meeting notice and agenda prepared in advance of t he
meeting, as required by law, shall indicate at least one
videoconferencing location and shall state th e location, address,
and telephone number of each available videoconference site and
provide the online website address to view the meeting ; and
3. The meeting agenda pre pared in advance of the meeting, as
required by law, shall indicate which members of the Trust will
appear by video conference and which will be present at the
designated meeting site.
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SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as S ection 3294 of Title 63, unless there
is created a duplication in numbering, reads as follows:
A. The Oklahoma State University Medical Authori ty and the
Oklahoma State University Medical Trust shall be, to the extent not
already authorized by law, exemp t from the Public Competitive
Bidding Act of 1974 for the purposes of the constructing of clinical
facilities in furtherance of the purposes auth orized by the Oklahoma
State University Medical Authority Act.
B. As used in this section, “clinical facilities” means any
facility where the majority of the a ctivity occurring is the
delivery of direct patient care services either in person or via
telehealth technology.
SECTION 6. NEW LAW A new section o f law to be codified
in the Oklahoma Statutes as Section 103.9 of Title 61, unless there
is created a duplication in numbering, reads as follows:
A. The Oklahoma State University M edical Authority and the
Oklahoma State University Medical Trust shall be, to the extent not
already authorized by law, exempt from the Public Competitive
Bidding Act of 1974 for the purposes of the constructing of clinical
facilities in furtherance of the purposes authorized by the Oklahoma
State University Medical Authority Act .
B. As used in this section, “clinical facilities” means any
facility where the maj ority of the activity occurring is the
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delivery of direct patient care services either in person or via
telehealth technology .
SECTION 7. REPEALER 63 O.S. 2021, Sections 3287 and
3291, are hereby repealed.
SECTION 8. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON HEALTH AND HUMAN SERVICES
February 9, 2023 - DO PASS