STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

HOUSE BILL 1515	By:	Liebmann

AS INTRODUCED

An Act relating to public finance; authorizing the Oklahoma Capitol Improvement Authority to issue obligations for the Native American cultural center and museum for the Native American Cultural and Educational Authority; stating purpose; providing for transfer of title upon occurrence of certain events; authorizing the borrowing of money for certain purposes; stating legislative intent; providing for payment of certain fees and costs; authorizing procedure for issuance and hiring of certain professionals; authorizing certain agreements; limiting maturity of certain obligations; providing for use of certain interest earnings; exempting certain obligations, transfers, and interest from taxation; providing for investment and oversight; providing conditions and restrictions to the authority to issue obligations; providing certain restrictions on use of state appropriations; providing for principal and interest requirements until certain date; providing for codification; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 304.2 of Title 73, unless there is created a duplication in numbering, reads as follows:
A.  In addition to any other authorization provided by law, the Oklahoma Capitol Improvement Authority (OCIA) is authorized to issue obligations to acquire real property, together with improvements located thereon, and personal property, to construct buildings and other improvements to real property and to provide funding for improvements to real and personal property and for funding of further construction, improvements, development and enhancement of a Native American cultural center and museum for the Native American Cultural and Educational Authority (“American Indian Cultural Center”), to include personal property and exhibits in a total amount not to exceed Forty Million Dollars ($40,000,000.00) with debt retirement payments to be made as provided herein, subject to the following:
1.  The commitment of matching funds from other funding sources as required by subsection J of this section; and
2.  Prohibition of the use of state appropriated funds to pay debt service on the obligations authorized by this section until the fiscal year beginning July 1, 2016, as provided by subsection K of this section.
B.  The OCIA may hold title to or a leasehold interest in the real and personal property and improvements until such time as any obligations issued for this purpose are retired or defeased and may lease the real property and improvements to the Native American Cultural and Educational Authority.  Upon final redemption or defeasance of the obligations created pursuant to this section, title to the real and personal property and improvements shall be transferred from the OCIA to the Native American Cultural and Educational Authority.
C.  For the purpose of paying the costs for acquisition and construction of the real property and improvements and personal property and making the improvements to real and personal property, and providing funding for the project authorized in subsection A of this section, the OCIA is hereby authorized to borrow monies on the credit of the income and revenues to be derived from the leasing of such real and personal property and improvements and, in anticipation of the collection of such income and revenues, to issue negotiable obligations, in one or more series, in an amount sufficient to generate net proceeds of Forty Million Dollars ($40,000,000.00) after providing for costs of issuance, credit enhancement, reserves, and other associated expenses related to the financing.  Net proceeds of the financing will be deposited into a construction fund to provide for the construction and acquisition of improvements described herein, or shall be deposited in a debt service or other fund to satisfy the requirements of subsection K of this section.  It is the intent of the Legislature to appropriate to the Native American Cultural and Educational Authority sufficient monies to make rental payments for the purposes of retiring the obligations created pursuant to this section, subject to the provisions of subsection K of this section.  To the extent funds are available from the proceeds of the borrowing authorized by this subsection, the OCIA shall provide for the payment of professional fees and associated costs related to the projects authorized in subsection A of this section.
D.  The OCIA may issue obligations in one or more series and in conjunction with other issues of the OCIA.  The OCIA is authorized to hire bond counsel, financial consultants, and such other professionals as it may deem necessary to provide for the efficient sale of the obligations and may utilize a portion of the proceeds of any borrowing to create such reserves as may be deemed necessary and to pay costs associated with the issuance and administration of such obligations.
E.  The obligations authorized under this section may be sold at either competitive or negotiated sale, as determined by the OCIA, and in such form and at such prices as may be authorized by the OCIA.  The OCIA may enter into agreements with such credit enhancers and liquidity providers as may be determined necessary to efficiently market the obligations.  The obligations may mature and have such provisions for redemption as shall be determined by the OCIA, but in no event shall the final maturity of such obligations occur later than twenty-five (25) years from the first principal maturity date.
F.  Any interest earnings on funds or accounts created for the purposes of this section may be utilized as partial payment of the annual debt service or for the purposes directed by the OCIA.
G.  The obligations issued under this section, the transfer thereof and the interest earned on such obligations, including any profit derived from the sale thereof, shall not be subject to taxation of any kind by the State of Oklahoma, or by any county, municipality or political subdivision therein.
H.  The OCIA may direct the investment of all monies in any funds or accounts created in connection with the offering of the obligations authorized under this section.  Such investments shall be made in a manner consistent with the investment guidelines of the State Treasurer.  The OCIA may place additional restrictions on the investment of such monies if necessary to enhance the marketability of the obligations.
I.  Insofar as they are not in conflict with the provisions of this section, the provisions of Section 151 et seq. of Title 73 of the Oklahoma Statutes shall apply to this section.
J.  The authorization to borrow money and issue negotiable obligations granted by this section is subject to the following restrictions:
1.  Twelve Million Dollars ($12,000,000.00) of obligations shall be issued only after the Native American Cultural and Educational Authority has caused to be committed Fifteen Million Dollars ($15,000,000.00) to the American Indian Cultural Center, from other funding sources, to include funds received for the benefit of the American Indian Cultural Center beginning January 1, 2008, and which Twelve Million Dollars ($12,000,000.00) shall not be issued prior to October 1, 2010;
2.  An additional Eight Million Dollars ($8,000,000.00) of obligations shall be issued only after the Native American Cultural and Educational Authority has caused to be committed, from other funding sources, an additional Ten Million Dollars ($10,000,000.00) to the American Indian Cultural Center, and which additional Eight Million Dollars ($8,000,000.00) of obligations shall not be issued prior to October 1, 2011; and
3.  An additional Twenty-three Million Dollars ($23,000,000.00) of obligations shall be issued only after the Native American Cultural and Educational Authority has caused to be committed, from other funding sources, an additional Twenty Million Dollars ($20,000,000.00) to the American Indian Cultural Center, and which additional Twenty-three Million Dollars ($23,000,000.00) of obligations shall not be issued prior to October 1, 2012.  If any of the Forty Million ($40,000,000.00) of net proceeds of obligations authorized by this section have not been issued by September 30, 2012, such obligations may thereafter be issued provided that the Native American Cultural and Educational Authority has caused to be committed to the American Indian Cultural Center the above amounts of Fifteen Million Dollars ($15,000,000.00), Ten Million Dollars ($10,000,000.00) and Twenty Million Dollars ($20,000,000.00), respectively, each exclusive of state appropriated funds.
For purposes of this section, other funding sources means any funding source excluding state appropriated funds or any obligation to be repaid by state appropriated funds.
K.  No state appropriated funds shall be provided for payment of obligations authorized under this section until the fiscal year beginning July 1, 2016.  Obligations issued under this section shall include the borrowing of funds sufficient to pay all principal and interest owing in connection with the obligations through the fiscal year ending June 30, 2016, or shall otherwise be structured so that no principal or interest payments shall be due on the obligations until the fiscal year beginning July 1, 2016.
SECTION 2.  It being immediately necessary for the preservation of the public peace, health and 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.

53-1-5230	MAH	01/18/11