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ENGROSSED HOUSE
BILL NO. 1422 By: West (Josh) of the House
and
Woods of the Senate
An Act relating to the Grand River Dam Authority;
amending 82 O.S. 2021, Section 870, as amended by
Section 1, Chapter 364, O.S.L. 2022 (82 O.S. Supp.
2024, Section 870), which relates to authorization of
bonds; increasing maximum bond capacity; updating
statutory language; updating statutory references;
making language gender -neutral; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
SECTION 1. AMENDATORY 82 O.S. 2021, Section 870, as
amended by Section 1, Chapter 364, O.S.L. 2022 (82 O.S. Supp. 2024,
Section 870), is amended to read as follows:
Section 870. The district shall have power and is hereby
authorized to issue from time to time, as the need therefor arises,
revenue bonds for its corporate purposes in such amount or amounts
not to exceed One Billion Four Hundred Ten Million Dollars
($1,410,000,000.00), or in the event that the Oklahoma Departm ent of
Commerce has approved an application under the provisions of
division (1) of subparagraph a of paragraph 1 of subsection E of
Section 4 of the Large -scale Economic Activity and Development Act
of 2022 not to exceed Two Billion Dollars ($2,000,000,00 0.00), Three
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Billion Six Hundred Million Dollars ($3,600,000,000.00 ) outstanding
at any time as are necessary, incidental or convenient to the
exercise of the powers, rights, privileges and functions conf erred
upon it by this act Section 862 of this title , or any other act or
law, and without limitations of the generality of the powers, rights
and privileges heretofore granted, for acquiring a steam generating
plant or plants and related facilities, and to extend, improve and
reconstruct the same; and for c onstructing, installing and acquiring
dams, reservoirs, hydroelectric power plants, or any electrical
generating plant or plants or any other electrical power or
generating facilities; or any plant or pla nts for the production of
steam for heating and proc essing purposes; and all and any
facilities of every kind necessary, incidental or convenient for the
production and generation of electric power and energy; and for
acquiring, constructing and installing transmission lines,
substations and all facilities necessary, incidental or convenient
to the sale, resale, interchange and distribution of electric power
and energy; and for carrying on the business and functions of the
district, as is now or hereafter m ay be authorized by law; and for
acquiring additions and improvements to and extensions of
facilities, at any time existing, of the district; and for the
acquisition of lands and rights -of-way for such use as is now, or
may be, authorized by law for the construction, replacement and
repair of any dams, plan ts or other facilities of the district; and
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to enable it to finance, in cooperation with any “public agency”
public agency, as defined under the Interlocal Cooperation Act,
Sections 1001 through 1008 of T itle 74 of the Oklahoma Statutes, any
other agency of government, rural electric co-op cooperative
corporation, or any private or public corporation, the development
and utilization of electrical energy or the water resources and
rights in waters vested in said the district for such purposes as
are, or may be, authorized by the laws of Oklahoma, and for
financing and refinancing present outstanding obligations of the
district, including the payment of any claims, charges or interest
on bonds required to be paid. The bonds herein authorized may
either be (1) sold for cash, at public or private sale, at such
price or prices as the Board shall determine with the advice and
assistance of the State Bond Advisor, or (2) may be issued on such
terms as the Board shall determine in exchange for property of any
kind, real, personal or mixed, or any interest therein which the
Board shall deem necessary, incidental or convenient for any such
corporate purposes, or (3) may be issued in exchange for like
principal amounts of other obligations of the district, matured or
unmatured, or (4) may be issued in such principal amounts that when
the proceeds thereof are invested in legal and qualified
investments, the proceeds together with the resulting proceeds of
such investments will be sufficient to retire the outstanding
indebtedness or any portion thereof at maturity or at prior
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redemption or upon purchase or tender for purchase. The proceeds of
sale of such bonds shall be deposited in such bank or banks or trust
company or trust companies, and shall be paid out pursuant to s uch
terms and conditions as may be agreed upon between the district and
the purchasers of such bonds. All such bonds shall be authorized by
resolutions of the Board concurred in by at least four of the
members thereof, and shall bear such date or dates, m ature at such
time or times, bear interest at such rate or rates, at such time or
times, be in such denominations, be in such form, either coupon or
registered, carry such registration privileges as to pr incipal only
or as to both principal and interest, a nd as to exchange of coupon
bonds for registered bonds or vice versa, and exchange of bonds of
one denomination for bonds of other denominations, be executed in
such manner and be payable at such place or places within or without
the State of Oklahoma this state as such resolution or resolutions
may provide. Any resolution or resolutions, including any related
trust indenture or indentures, authorizing any bonds may contain
provisions which shall be part of the contract between the district
and the holders thereof from time to time (a) reserving the right to
redeem such bonds at such time or times, in such amounts and at such
prices as may be provided, (b) providing for the setting aside of
sinking funds or reserve funds and the regulation and disposition
thereof, (c) pledging to secure the payment of the principal of and
interest on such bonds and of the sinking fund or reserve fund
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payments agreed to be made in respect of such bonds all or any part
of the gross or net revenues thereafter received by the di strict in
respect of the property, real, personal or mixed, to be acquired or
constructed with such bonds or the proceeds thereof, or all or any
part of the gross or net revenues thereafter received by the
district from whatever source derived and monies a nd securities held
under such resolutions or indentures or contract rights with respect
to any of the foregoing, (d) prescribing the purposes to which such
bonds or any bonds thereafter to be issued, or t he proceeds thereof,
may be applied, (e) agreeing to fix and collect rates and charges
sufficient to produce revenues adequate to pay the items specified
in subparagraphs (a), (b), (c), (d) and (e) of Section 868 of this
title and prescribing the use and disposition of all revenues, and
the investment of su ch revenues and other monies pending their
expenditures in investments authorized or permitted by law, (f)
prescribing limitations upon the issuance of additional bonds and
upon the agreements which may b e made with the purchasers and
successive holders th ereof, (g) with regard to the construction,
extension, improvement, reconstruction, operation, maintenance and
repair of the properties of the district, carrying of insurance upon
all or any part of said the properties covering loss or damage or
loss of use and occupancy resulting from specified risk, (h) fixing
the procedure, if any, by which, if the district shall so desire,
the terms of any contract with the holders of such bonds may be
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amended or abrogated, the amount of bonds the holders of which must
consent thereto, and the manner in which such consent may be given,
(i) for the execution and delivery by the district to a bank or
trust company authorized by law to accept trusts, or to the United
States of America or any office or agency thereof, of ind entures and
agreements for the benefit of the holders of such bonds setting
forth any or all of the agreements herein authorized to be made with
or from the benefit of the holders of such bonds and such o ther
provisions as may be customary in such indentur es or agreements, and
(j) such other provisions, not inconsistent with the provisions of
the act Section 861 et seq. of this title , as the Board may approve.
Any such resolution and any indenture or agreement entered into
pursuant thereto may provide that in the event that (a) default
shall be made in the payment of the interest on any or all bonds
when and as the same shall become due and payable, or (b) default
shall be made in the payment of the princip al of any or all bonds
when and as the same shall be come due and payable, whether at the
maturity thereof, by call for redemption or otherwise, or (c)
default shall be made in the performance for any agreement made with
the purchasers or successive holders of any bonds, and such default
shall have continued such period, if any, as may be prescribed by
said the resolution in respect thereof, the trustee under the
indenture or indentures entered into in respect of the bonds
authorized thereby, or if there sha ll be no such indenture, a
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trustee appointed in the manner provided in such resolution or
resolutions by the holders of twenty -five percent (25%) in aggregate
principal amount of the bonds authorized thereby and at the time
outstanding may, and, upon the written request of the holders of
twenty-five percent (25%) in aggregate principal amount of the bonds
authorized by such resolution or resolutions at the time
outstanding, shall, in his , her, or its own name, but for the equal
and proportionate benefit of the holders of all of such bonds, and
with or without possession thereof,
(1) By mandamus or other suit, action or proceeding at law
or in equity, enforce all rights of the holders of
such bonds,
(2) Bring suit upon such bonds and/or the appurtenant
coupons,
(3) By action or suit in equity, require the d istrict to
account as if it were the trustee of an express trust
for the bondholders,
(4) By action or suit in equity, enjoin any acts or things
which may be unlawful or in violation of the rights of
the holders of such bonds, and/or
(5) After such notic e to the district as such resolution
may provide, declare the principal of all of such
bonds due and payable, and if all defaults shall have
been made good, then with the written consent of the
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holder or holders of twenty -five percent (25%) in
aggregate principal amount of such bonds at the time
outstanding annul such declaration and its
consequence; provided, however, that the holders of
more than a majority in principal amount of the bonds
authorized thereby and at the time outstanding by
instrument or instruments in writing delivered to such
trustee have the right to direct and control any and
all action taken or to be taken by such trustee under
this paragraph. Any such resolution, indenture or
agreement may provide that in any such suit, action or
proceeding, any such trustee, whether or not all of
such bonds shall have been declared due and payable,
and with or without possession of any thereof, shall
be entitled as of right to the appointment of a
receiver who may enter and take possession of all or
any part of the properties of the district and operate
and maintain the same, and fix, collect and receive
rates and charges sufficient to provide revenues
adequate to pay the items set forth in subparagraphs
(a), (b), (c), (d) and (e) of Section 868 of thi s
title and the costs and disbursements of such suit,
action or proceeding, and to apply such revenues in
conformity with the provisions of Section 861 et seq.
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of this title and the resolution or resoluti ons
authorizing such bonds. In any suit, action or
proceeding by any such trustee, the reasonable fees,
counsel fees and expense of such trustee and of the
receiver or receivers, if any, shall constitute
taxable disbursements and all costs and disbursements,
and all costs and disbursements allowed by the c ourt
shall be a first charge upon any revenues pledged to
secure the payment of such bonds. Subject to the
provisions of the Oklahoma Constitution of the State
of Oklahoma, the courts of the County of Cr aig, or
other county wherein the domicile may be sit uated,
shall have jurisdiction of any such suit, action or
proceeding by any such trustee on behalf of the
bondholders and of all property involved therein. In
addition to the powers hereinabove specifically
provided for, each such trustee shall have and possess
all powers necessary or appropriate for the exercise
of any thereof, or incident to the general
representation of the bondholders in the enforcement
of their right.
Before any bonds shall be sold by the district, a certified copy
of the proceedings for the issuance thereof, including the form of
such bonds, together with any other information which the Attorney
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General of the State of Oklahoma this state may require, shall be
submitted to the Attorney General and if he or she shall find that
such bonds have been issued in accordance with law he or she shall
approve such bonds and execute a certificate to that effect which
shall be filed in the Office of the State Auditor and Inspector of
the State of Oklahoma this state and be recorded in a record ke pt
for that purpose. No bonds shall be issued until the same shall
have been registered by the State Auditor and Inspector, who shall
so register the same if the Attorney General shall have filed with
the State Auditor and Inspector his or her certificate approving the
bonds and the proceedings for the issuance thereof as hereinabove
provided. All bonds approved by the Attorney General as aforesaid,
and registered by the State Auditor and Inspector as af oresaid, and
issued in accordance with the proceedin gs so approved shall be valid
and binding obligations of the district and shall be incontestable
for any cause from and after the time of such registration.
SECTION 2. 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 approval.
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Passed the House of Representatives the 11th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the ____ day of _________, 2025.
Presiding Officer of the Senate