An Act
ENROLLED SENATE
BILL NO. 704 By: Haste of the Senate
and
Roe of the House
An Act relating to the Oklahoma State University
Medical Authority; amending 63 O.S. 2021, Secti on
3275, which relates to members; modifying
qualifications; adding member; removing obsolete
language; amending 63 O.S. 2021, Section 3276, which
relates to powers and duties of the Authority; adding
certain power and duty; amending 63 O.S. 2021,
Section 3290, which relates to the Oklahoma State
University Medical Tru st; increasing certain asset
limit for purpose of certain determination; repealing
63 O.S. 2021, Section 3287, which relates to the
Oklahoma State University Medical Authority;
providing for codification; and providing an
effective date.
SUBJECT: Oklahoma State University Medical Authority
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 Autho rity, an agency of the State of Oklahoma, a
body corporate and politic, with powers of government and with the
authority to exercise the rights, pr ivileges and functions as
specified in the Oklahoma State University Medical Authority Act.
The Oklahoma State University Medical Authority is covered by the
Governmental Tort Claims Act.
ENR. S. B. NO. 704 Page 2
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 Oklahoma State Senate;
3. One member shall be appointed by the Speaker of the Oklahoma
House of Representatives;
4. One member shall be 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 Oklahoma State University Medical
Trust, with whom the Oklahoma State University College of
Osteopathic Medicine has entere d into an Academic Affiliation
Agreement to serve as the primary site of practice and teaching
hospital for medical residency programs, or a designee; and;
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 the chair of the Board of Regents; and
8. One member shall be the Chief Executive Officer of the
Oklahoma State University Me dical Authority who 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; and
the member appointed by the Governor shall serve a term of one (1)
ENR. S. B. NO. 704 Page 3
year. Successors Members shall be appointed for terms of three (3)
years.
D. Each member of the Auth ority, prior to appointment, sha ll be
a resident of the state and a qualified elector.
E. Members shall be removable only for cause by the appointing
authority. Any vacancy occurring on the Authority shall b e filled
by the original appointing authority.
F. The members of the Authority shall serve without
compensation but may be reimbursed for all actual and necessary
travel expenses incurred in performance of their duties in
accordance with the provisions of the State Travel Reimbursement
Act.
G. All members of the Authority and admin istrative 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 am ong its
members. The chair must be an appointed member of the Authority.
I. The Authority shall be exempt from the Oklahoma Central
Purchasing Act but shall be subject to the purchasing policies of
Oklahoma State Unive rsity Center for Health Sciences 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 process with respect to the marketing plans,
financial statements, trade secrets, research concepts, methods or
products, or any other proprietary information of th e Authority,
persons, firms, associations, p artnerships, agencies, corporations,
institutions of higher education, nonprofit research institutions or
other entities shall be confidential, except to the extent that the
person or entity which provided the information or which is the
subject of the information consents to disclosure. Ex ecutive
sessions may be held to discuss such materials if deemed necessary
by the Authority.
ENR. S. B. NO. 704 Page 4
SECTION 2. AMENDATORY 63 O .S. 2021, Section 3276, is
amended to read as follows:
Section 3276. A. On and after July 1, 2006, the The Oklahoma
State University Medic al 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 bus iness;
2. Adopt an official seal;
3. Maintain an office at a location to be determined by the
Authority;
4. Sue and be sued, subject to the provisions of The
Governmental Tort Claims Act;
5. Enter into cooperative agreements with th e Board of Regents
for the Oklahoma Agricultural and Mechanical Colleges for
educational programs, professional staffing, rese arch and other
medical activities;
6. Make and enter into all contracts necessary 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 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 Medical Authority Act;
9. Appoint such officers, agents and employees, including but
not limited to attorneys, a s it deems necessary and to prescribe
their duties and to fix their compensation;
ENR. S. B. NO. 704 Page 5
10. Accept grants from the United States of America, or from
any corporation or agency created or designed by the United States
of America, and, in connection with any grant , to enter into 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 Sta te 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 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 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 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 neither the faith and
credit nor the taxing power of the state or any political
subdivision thereof is pledged, or may hereafter be pledged, to the
payment of the principal of or the interest on such bonds. T he
maximum amount of outstanding bonds at any time shall not exceed
Fifty Million Dollars ($50,000,000.00) unless a greater amount is
expressly approved by the Legislature by a concurrent resol ution
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 complete financial audits on all accounts of
the Oklahoma State University Medical Authority and to authorize
periodic audits by an independent 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 accordance with generally accepted auditing 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 l east once each five (5)
ENR. S. B. NO. 704 Page 6
years, or upon receipt of a request to do so from the Governor, the
Attorney General, the President Pro Tempore of the Oklahoma State
Senate, the Speaker of the Oklahoma House of Representatives or the
Authority, 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;
14. Establish petty cash funds and provide for approp riate
accounting procedures and controls;
15. Contract with national manufacturers and distributors of
drugs and medical suppl ies 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 Medical Authority Act when provided funding for
such purposes by the Legislature;
17. Do all other things necessary and proper to implement t he
provisions of the Oklahoma State University Medical Authority A ct;
17. 18. Waive, by such means as the Authority deems
appropriate, the exemption from federal income taxation of interest
on the Authority’s bonds provided by the Internal Revenue Code of
1986, as amended, or any other fed eral statute providing a similar
exemption;
18. 19. Arrange for guaranties or insurance of its bonds by the
federal government or by any private insurer, and to pay any
premiums therefor; and
19. 20. Make a declaration of necessity 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 pu rposes of the Oklahoma State
University Medical Authority Act.
B. The Oklahoma State Univer sity Medical Authority shall be
subject to the Oklahoma Budget Law of 1947.
ENR. S. B. NO. 704 Page 7
C. The Authority shall prepare monthly a “budget vs. actual”
report which shows by budget activity the monthly and year-to-date
revenues and expenditures 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 Fisc al Division and the Senate Fiscal Division.
D. The Authority shall 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 3290, is
amended to read as follows:
Section 3290. A. The State of Oklahoma expressly approves 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 such approval shall be contingent upon
satisfaction of the following condition s:
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 acceptance of the beneficial
interest and approval as required by Section 177 of Tit le 60 of the
Oklahoma Statutes; and
4. The approved declaration of trust shal l:
a. clearly state that the principal purpose of the
Oklahoma State University Medical Trust is to
effectuate the purposes of the Oklahoma State
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 t he Oklahoma State University
ENR. S. B. NO. 704 Page 8
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 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 Medical Authority and shall not
involve the bonding capacity of the Oklahoma Stat e
University Medical Authority,
d. provide that the trust estate of the Oklaho ma State
University Medical Trust shall not include fee simple
title to real property owned by the Oklahoma State
University Medical Authority,
e. clearly state that the creation of the Oklahoma State
University Medical Trust shall not in any way reduce,
limit or interfere with the power granted to the
Oklahoma State University Medical Authority in the
Oklahoma State University Medical Authority Act,
f. provide that any lease or c ontractual agreement
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 p roperty and
improvements,
g. provide that the trustees of the Oklahoma State
University Medical Trust shall be the acting 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 Oklahoma State Senate and the Speaker
ENR. S. B. NO. 704 Page 9
of the Oklahoma House of Representatives. The report
shall be submitted by January 1 of each year and shal l
include an account of all operations, act ions 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 primary function of effec tuating the
purposes of the Oklahoma State University Medical
Authority, as established 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 3292 of this act title for the 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 T rust, except the
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 Universit y;
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 de cision by the governi ng
committee must include the approval of a majority of the state
appointees and the approval of a majority of the private entity
appointees to the governing committee. Major decisions shall
include:
a. approval of the operating and capital budgets,
b. sale or disposition of a ssets over Two Hundred Fifty
Thousand Dollars ($250,000.00) Five Hundred Thousand
Dollars ($500,000.00),
ENR. S. B. NO. 704 Page 10
c. the termination or transfer or material addition or
material diminution of medical services at the
Oklahoma State University M edical Center related to
and part of a teaching program of the Oklahoma State
University Center for Health Sciences, and
d. other major decision s as may be agreed upon by the
Trust and the private ent ity.
C. To the extent it is determined by legislative e nactment that
the Trust has expended funds in contravention of its mission as set
forth in this section, the Trust shall remit, upon thirty (30) days’
written notice from the Oklahoma State University Medical Authority,
such sum or sums to the Oklahoma Sta te University Medical Authority.
D. In the event the Trust enters 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 shall not be
subject to the Oklahoma Open M eeting Act and the Okl ahoma Open
Records Act. Any informat ion submitted to or compiled by the Trust
with respect to marketing plans, financial statements, trade
secrets, research concepts, methods or products or any other
proprietary information submitted to or compiled by the Trust,
persons, firms, associations, partnerships, agencies, corporations,
institutions of higher education, nonprofit re search institutions or
other entities shall be confident ial, except to the extent that the
person or entity whic h provided such inform ation or which is the
subject of such information consents to disclosure. Executive
sessions may be held to discuss such materials if deemed necessary
by the Trust. The provisi ons of this subsection shall not ap ply to
budgetary information related to app ropriations or the
appropriations process.
SECTION 4. REPEALER 63 O.S. 2021, Section 3287, is
hereby repealed.
SECTION 5. This act shall become effective November 1, 2023.
ENR. S. B. NO. 704 Page 11
Passed the Senate the 24th day of May, 2023.
Presiding Officer of the Sena te
Passed the House of Representatives the 26th 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: _______________________________ __