STATE OF OKLAHOMA

1st Session of the 52nd Legislature (2009)

SENATE BILL 952	By:	Myers

AS INTRODUCED

An Act relating to the Oklahoma Development Finance Authority and the Oklahoma Aeronautics Commission; authorizing the Oklahoma Development Finance Authority to issue obligations for the Oklahoma Aeronautics Commission; authorizing the Authority to acquire certain property for certain purposes; 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 of obligations and hiring of certain professionals; providing for use of certain interest earnings; exempting certain obligations, transfers, and interest from taxation; providing for investment and oversight; providing for codification; providing effective date; 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 5062.23 of Title 74, unless there is created a duplication in numbering, reads as follows:
A.  The Oklahoma Development Finance Authority is authorized to acquire real property, together with improvements located thereon, and personal property for purposes of construction, improvement, maintenance, and protection of general aviation regional business airports including the construction, installation, equipping, maintenance, and operation at such airports of hangars and terminals for the protection and servicing of aircraft and the accommodation and comfort of air travelers/passengers.  The projects will be done in accordance with promulgated rules of the Oklahoma Aeronautics Commission, which provide for coordination with local governments affected by the projects and the Federal Aviation Administration.  The said projects herein described will further the viability, growth and development of the economy of the state and the economies of local communities throughout the state by ensuring that regional business airports are meeting the needs of air passengers, particularly those that use aviation and regional business airports to further their business interests, and are hereby determined to be in the best interests of the state and will accomplish an important public purpose.  The Authority may acquire and hold title to the real property and improvements, or any interest therein, until such time as any obligations issued for this purpose are retired or defeased and may lease the real property and improvements to the Oklahoma Aeronautics Commission.  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 Authority, to the Oklahoma Aeronautics Commission.
B.  For the purpose of paying the costs for acquisition of the real property and improvements and personal property 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 one or more series, in an amount sufficient to generate net proceeds of Twenty Million Dollars ($20,000,000.00) after providing for costs of issuance, credit enhancement, reserves and other associated expenses related to the financing.  It is the intent of the Legislature to appropriate to the Oklahoma Aeronautics Commission 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 Authority shall provide for the payment of professional fees and associated costs approved by the Authority.
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 fifteen (15) 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.
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 July 1, 2009.
SECTION 3.  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.

52-1-456	JK	1/15/2009 12:38:32 PM