STATE OF OKLAHOMA

1st Session of the 54th Legislature (2013)

SENATE BILL 558	By:	Crain

AS INTRODUCED

An Act relating to public finance; authorizing the Oklahoma Capitol Improvement Authority to issue obligations for the purpose of constructing a teaching hospital for the University of Oklahoma; directing how title is to be held when it is transferred; authorizing Board of Regents of the University of Oklahoma to enter into certain agreements with the Authority; authorizing issuance of obligations; expressing legislative intent; providing for payment of certain fees and costs by the Authority; prescribing certain terms and conditions for issuance of obligations; providing for use of interest earnings; exempting certain items from taxation; providing for investment of certain monies; providing for codification; and providing an effective date.

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 345 of Title 73, unless there is created a duplication in numbering, reads as follows:
A.  The Oklahoma Capitol Improvement Authority is authorized to acquire the real property together with improvements located thereon, for purposes of constructing a teaching hospital in Tulsa, Oklahoma on behalf of the University of Oklahoma.  The Authority may hold title to the real property and improvements until such time as any obligations issued for this purpose are retired or deceased and may lease the real property and improvements to the Board of Regents of the University of Oklahoma.  Upon final redemption or defeasance of the obligations created pursuant to this section, title to the real property and improvements shall be transferred from the Oklahoma Capitol Improvement Authority to the Board of Regents of the University of Oklahoma.
B.  For the purpose of paying the costs for acquisition of the real property and improvements authorized in subsection A of this section, and for the purpose authorized in subsection C of this section, the Authority is hereby authorized to borrow monies on the credit of the income and revenues to be derived from the leasing of such real property and improvements and, in anticipation of the collection of such income and revenues, to issue negotiable obligations in an amount not to exceed Twenty-five Million Dollars ($25,000,000.00).  It is the intent of the Legislature to appropriate to the State Board of Regents sufficient monies to make rental payments for the purposes of retiring the obligations created pursuant to this section.
C.  To the extent funds are available from the proceeds of the borrowing authorized by subsection B of this section, the Oklahoma Capitol Improvement Authority shall provide for the payment of professional fees and associated costs approved by the Board of Regents of the University of Oklahoma and the State Bond Advisor.
D.  The Authority may issue obligations in one or more series and in conjunction with other issues of the Authority.  The Authority 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 Authority, and in such form and at such prices as may be authorized by the Authority.  The Authority 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 Authority, but in no event shall the final maturity of such obligations occur later than thirty (30) 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 Authority.  Any earnings in the construction fund created for the purposes of this section may be used to pay the costs of the projects until such projects are completed.  Any amounts remaining in the construction fund following completion of the projects shall be utilized as partial payment of the annual debt service.
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 Authority 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 Authority may place additional restrictions on the investment of such monies if necessary to enhance the marketability of the obligations.
SECTION 2.  This act shall become effective November 1, 2013.

54-1-377	 AM	1/16/2013 11:16:34 AM