STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

SENATE BILL 985	By:	Myers and Jolley of the Senate

			and

		Sears and Martin (Scott) of the House

AS INTRODUCED

An Act relating to the Native American Cultural and Educational Authority; amending Section 1 of Enrolled Senate Bill No. 980 of the 1st Session of the 53rd Legislature, which relates to issuance of obligations; limiting purposes for which obligations may be issued; modifying definition; modifying revenues which may be pledged to payment of principal or interest of indebtedness; amending 68 O.S. 2001, Section 1353, as last amended by Section 1, Chapter 466, O.S.L. 2010 (68 O.S. Supp. 2010, Section 1353), which relates to sales taxes; modifying apportionment of certain revenues; creating the American Indian Cultural Center Indebtedness Retirement Revolving Fund; providing for deposits thereto and expenditures therefrom; amending 74 O.S. 2001, Section 1226.2, as last amended by Section 2, Chapter 146, O.S.L. 2005 (74 O.S. Supp. 2010, Section 1226.2), which relates to the Authority; subjecting Authority to provisions of Taxpayer Transparency Act; providing a conditional effective date; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     Section 1 of Enrolled Senate Bill No. 980 of the 1st Session of the 53rd Legislature is amended to read as follows:
SECTION 1.  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 capital improvements to real property and to provide funding for capital 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 Thirteen Million Dollars ($13,000,000.00) 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) of obligations shall not be issued prior to July 1, 2011;
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 Nine Million Dollars ($9,000,000.00) to the American Indian Cultural Center, and which additional Eight Million Dollars ($8,000,000.00) of obligations shall not be issued prior to January 1, 2012; and
3.  An additional Twenty Million Dollars ($20,000,000.00) 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 Million Dollars ($20,000,000.00) of obligations shall not be issued prior to July 1, 2012.  If any of the Forty Million Dollars ($40,000,000.00) of net proceeds of obligations authorized by this section have not been issued by June 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 Thirteen Million Dollars ($13,000,000.00), Nine Million Dollars ($9,000,000.00) 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 or any sales tax revenue apportioned to the American Indian Cultural Center Indebtedness Revolving Fund.  Before the issuance of any obligations pursuant to this section, the State Auditor and Inspector shall audit the accounts of the Native American Cultural and Educational Authority and verify to the OCIA that the monies required from other funding sources pursuant to this subsection exist and are committed to the American Indian Cultural Center.
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.
L.  The bonds or other obligations issued pursuant to this section 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 such political subdivision.  Such bonds or other obligations shall contain on the face thereof a statement 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; provided, revenues deposited to the American Indian Cultural Center Indebtedness Retirement Revolving Fund may be pledged to payment of the principal of or the interest on such bonds.
M.  After the implementation of this section, the State of Oklahoma shall not provide any further financing or funding for capital needs of the American Indian Cultural Center without a vote of the people.
SECTION 2.     AMENDATORY     68 O.S. 2001, Section 1353, as last amended by Section 1, Chapter 466, O.S.L. 2010 (68 O.S. Supp. 2010, Section 1353), is amended to read as follows:
Section 1353.  A.  It is hereby declared to be the purpose of the Oklahoma Sales Tax Code to provide funds for the financing of the program provided for by the Oklahoma Social Security Act and to provide revenues for the support of the functions of the state government of Oklahoma, and for this purpose it is hereby expressly provided that, revenues derived pursuant to the provisions of the Oklahoma Sales Tax Code, subject to the apportionment requirements for the Oklahoma Tax Commission and Office of State Finance Joint Computer Enhancement Fund provided by Section 265 of this title, shall be apportioned as follows:
1.	a.	the following amounts shall be paid to the State Treasurer to be placed to the credit of the General Revenue Fund to be paid out pursuant to direct appropriation by the Legislature:
Fiscal Year	Amount
FY 2003 and FY 2004	86.04%
FY 2005	85.83%
FY 2006	85.54%
FY 2007	85.04%
FY 2008 and each fiscal year thereafter	83.61%
b.	in the event that additional monies are necessary pursuant to paragraph 6 of this section, such additional monies shall be deducted in the proportion determined by the State Board of Equalization pursuant to paragraph 3 of Section 2355.1B of this title from the monies apportioned to the General Revenue Fund;
2.  For FY 2003, FY 2004 and FY 2005, ten and forty-two one-hundredths percent (10.42%), shall be paid to the State Treasurer to be placed to the credit of the Education Reform Revolving Fund of the State Department of Education and for FY 2006 and each fiscal year thereafter, ten and forty-six one-hundredths percent (10.46%) shall be paid to the State Treasurer to be placed to the credit of the Education Reform Revolving Fund of the State Department of Education;
3.  The following amounts shall be paid to the State Treasurer to be placed to the credit of the Teachers’ Retirement System Dedicated Revenue Revolving Fund:
Fiscal Year	Amount
FY 2003 and FY 2004	3.54%
FY 2005	3.75%
FY 2006	4.0%
FY 2007	4.5%
FY 2008 and each fiscal year thereafter	5.0%
4.  For the fiscal year beginning July 1, 2010, and for each fiscal year thereafter, eighty-seven one-hundredths percent (0.87%) shall be paid to the State Treasurer to be further apportioned as follows:
a.	thirty-six percent (36%) shall be placed to the credit of the Oklahoma Tourism Promotion Revolving Fund, and
b.	sixty-four percent (64%) shall be placed to the credit of the Oklahoma Tourism Capital Improvement Revolving Fund; and
5.  For the fiscal year beginning July 1, 2010, and for each fiscal year thereafter, six one-hundredths percent (0.06%) shall be placed to the credit of the Oklahoma Historical Society Capital Improvement and Operations Revolving Fund.
6.  During the first fiscal year after the State Board of Equalization has made a determination as provided in Section 2355.1B of this title, regarding a baseline amount of revenue apportioned pursuant to paragraph 3 of this section, and for each fiscal year thereafter, in no event shall monies apportioned pursuant to paragraph 3 of this section, paragraph 3 of Section 1403 of this title and subparagraph c of paragraph 1 of Section 2352 of this title be less than such baseline amount.
B.  Provided, for the fiscal year beginning July 1, 2007, and every fiscal year thereafter, an amount of revenue shall be apportioned to each municipality or county which levies a sales tax subject to the provisions of Section 1357.10 of this title and subsection F of Section 2701 of this title equal to the amount of sales tax revenue of such municipality or county exempted by the provisions of Section 1357.10 of this title and subsection F of Section 2701 of this title.  The Oklahoma Tax Commission shall promulgate and adopt rules necessary to implement the provisions of this subsection.
C.  Notwithstanding any other provision of this section, any revenues derived pursuant to the provisions of the Oklahoma Sales Tax Code from sales occurring on any property owned or leased by the Native American Cultural and Educational Authority shall be apportioned to the American Indian Cultural Center Indebtedness Retirement Revolving Fund created in Section 3 of this act, until such time as all indebtedness of the Authority shall be retired.
SECTION 3.  There is hereby created in the State Treasury a revolving fund for the Native American Cultural and Educational Authority to be designated the “American Indian Cultural Center Indebtedness Retirement Revolving Fund”.  The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Authority pursuant to the provisions of subsection C of Section 1353 of Title 68 of the Oklahoma Statutes.  All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the Authority for the purpose of retiring indebtedness issued for the benefit of the Authority pursuant to the provisions of Section 1 of Enrolled Senate Bill No. 980 of the 1st Session of the 53rd Legislature or as otherwise provided by law.  Expenditures from the fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of State Finance for approval and payment.
SECTION 4.     AMENDATORY     74 O.S. 2001, Section 1226.2, as last amended by Section 2, Chapter 146, O.S.L. 2005 (74 O.S. Supp. 2010, Section 1226.2), is amended to read as follows:
Section 1226.2.  A.  There is hereby created a body corporate and politic to be known as the "Native American Cultural and Educational Authority", and by that name the Authority may sue and be sued, and plead and be impleaded.  The Authority is hereby constituted an agency of the state, and the exercise by the Authority of the powers conferred by Section 1226 et seq. of this title shall be deemed to be essential governmental functions of the state with all the attributes thereof.  Provided, however, the Authority is authorized to carry liability insurance to the extent authorized by the Authority, and in addition thereto it shall be subject to the workers' compensation laws of the State of Oklahoma the same as a private employer.  The Department of Commerce shall assist the Authority in fulfilling the responsibilities of Section 1226 et seq. of this title, as requested by the authority.
B.  The Authority shall consist of seven appointed members who are members of a federally recognized American Indian Tribe located within this state, six ex officio members and four appointed members from the business community.  Each appointed member, excluding ex officio members, shall have one vote for purposes of conducting the business of the Authority.  Except for the members appointed pursuant to paragraph 3 of this subsection, the appointed members shall be residents of the state, and shall have been qualified electors therein for a period of at least one (1) year preceding their appointment.  Any member of the Authority shall be eligible for reappointment, and no member shall be removed from office except for good cause shown.  Good cause may be shown in evidence of excessive failure to attend three consecutive regular Board meetings of the Authority.  The chair of the Authority shall have the right to remove any member pursuant to good cause.  At the expiration of any term, the person holding such office shall continue to serve until such person's duly appointed successor shall be appointed and qualified.
1.  Seven members appointed to serve shall serve overlapping terms and shall be chosen as follows:  three members shall be appointed by the Governor; two members shall be appointed by the President Pro Tempore of the Senate; and two members shall be appointed by the Speaker of the House of Representatives.  Each of these members shall be a member of a federally recognized American Indian tribe located within this state.  Such tribal membership shall be determined by the respective tribes.  Appointments shall be made from names provided by tribal governments, councils or other recognized tribal entities.  Appointments shall be restricted to not more than one representative of any tribe.  Such appointed members initially appointed shall continue in office for terms of from three (3) to seven (7) years, respectively, from the date of their appointment, with the term of each initially appointed member to be designated by the Governor at the time of the appointment, with one member to be appointed to a three-year term, two members to be appointed to a four-year term, one member to be appointed to a five-year term, one member to be appointed to a six-year term, and two members to be appointed to a seven-year term.  Any person appointed to fill a vacancy shall serve only for the unexpired term.  Upon the expiration of a term, on or after July 1, 2000, any succeeding term shall be for four (4) years.
2.  The six ex officio members shall be as follows:  the Executive Director of the Oklahoma Indian Affairs Commission, or the designee of the same; the Lieutenant Governor, or the designee of same; the Director of the Oklahoma Historical Society, or the designee of same; the Secretary of Commerce, or the designee of same; the Executive Director of the Oklahoma Arts Council, or the designee of same; and the Executive Director of the Oklahoma Tourism and Recreation Department, or the designee of the same.
3.  The four appointed members from the business community shall be chosen as follows:  two members shall be appointed by the Governor; one member shall be appointed by the Speaker of the House of Representatives; and one member shall be appointed by the President Pro Tempore of the Senate.  Each member shall have at least fifteen (15) years of experience in business, banking, finance or corporate law, and shall have demonstrated outstanding ability in business or industry.  However, in lieu of appointing a member with such experience, one of the two members appointed by the Governor may be a person who has exhibited at least three (3) years of outstanding leadership and involvement in recognized Native American organizations and activities.  Upon the expiration of a term, on or after July 1, 2000, any succeeding term shall be for four (4) years.  Any person appointed to fill a vacancy shall serve only for the unexpired term.
C.  The Authority shall elect one of its members as chairperson, and another as vice-chairperson, and also shall elect a secretary, treasurer and such other officers as the Authority may deem appropriate.  A majority of the members of the Authority (exclusive of vacancies) shall constitute a quorum and the vote of a majority of the members (exclusive of vacancies) shall be necessary for any action taken by the Authority.  No vacancy in the membership of the Authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the Authority.
D.  Before the issuance of any revenue bonds under the provisions of Section 1226 et seq. of this title, each member of the Authority shall execute a surety bond in the penal sum of Twenty-five Thousand Dollars ($25,000.00) and the secretary and treasurer shall execute a surety bond in the penal sum of One Hundred Thousand Dollars ($100,000.00), each such surety bond to be conditioned upon the faithful performance of the duties of his or her office, to be executed by a surety company authorized to transact business in the State of Oklahoma as surety, and to be filed in the office of the Secretary of State.
E.  The members of the Authority shall not be entitled to compensation for their services, but each member shall be reimbursed for actual expenses necessarily incurred in the performance of duties on behalf of the Authority, provided that members of the Authority shall be compensated for their travel expenses pursuant to the State Travel Reimbursement Act.  All expenses incurred in carrying out the provisions of Section 1226 et seq. of this title shall be payable solely from funds provided under the authority of Section 1226 et seq. of this title and no liability or obligation shall be incurred by the Authority hereunder beyond the extent to which monies shall have been provided under the authority of Section 1226 et seq. of this title.
F.  The Authority is authorized to establish subcommittees as necessary to perform its functions and duties.  A subcommittee may be composed of Authority members and/or nonmembers and shall not have more than five members.  Nonmembers of a subcommittee shall be reimbursed by the Authority in accordance with the State Travel Reimbursement Act.
G.  Members of the Authority shall be exempt from the provisions of Section 6 of Title 51 of the Oklahoma Statutes, which prohibits the holding of any other office during the member’s term of office on the Authority.
H.  The Directors and staff of the Authority employed to perform the duties of Sections 1226 et seq. of this title shall be considered employees of the Authority.  The employees of the Authority shall be entitled to be reimbursed for actual and necessary expenses incurred in the performance of duties on behalf of the Authority.  Such compensation for travel expenses shall be paid pursuant to the State Travel Reimbursement Act.
I.  The Authority shall be subject to the provisions of the Taxpayer Transparency Act.
SECTION 5.  The provisions of this act shall not become effective as law unless Enrolled Senate Bill No. 980 of the 1st Session of the 53rd Oklahoma Legislature becomes effective as law.
SECTION 6.  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.

53-1-1795	CD	5/13/2011 4:22:25 PM