STATE OF OKLAHOMA

1st Session of the 54th Legislature (2013)

SENATE BILL 482	By:	Loveless

AS INTRODUCED

An Act relating to public financing; authorizing the Oklahoma Capitol Improvement Authority to issue obligations to provide for completion of the American Indian Cultural Center for the Native American Cultural and Educational Authority; providing for debt retirement payments; directing how title is to be held; providing for transfer of title upon occurrence of certain events; stating legislative purpose; providing for certain expenses; providing for method of issuance of certain obligations; authorizing hiring certain professionals for certain purposes; providing for issuance of obligations; allowing use of funds to pay for associated costs; providing for sale of obligations; limiting maturity of obligations; providing for utilization of certain interest earnings; providing for tax exemption; providing for investment of certain monies; requiring compliance with certain statutory provisions; requiring certification of committed funds from certain sources prior to issuance of first series of bonds; providing for conditions for issuance of subsequent series of bonds; requiring certain financial instruments to meet certain requirements; providing minimum amount of certain issuance; providing that certain obligations are not debt of this state or its political subdivisions; 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 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 Thirty Two Million Dollars ($32,000,000.00) with debt retirement payments to be made as provided herein, subject to the commitment of matching funds from other funding sources as required by subsection J 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 Thirty Two Million Dollars ($32,000,000.00) 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. 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.  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 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 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.  In order to issue the first series of bonds, a bank that is chartered in this state shall certify to the OCIA and the Native American Cultural and Educational Authority that there exist irrevocable restricted letters of credit for outstanding pledges or cash on deposit or a combination of both in an amount equal to the amount of the first series for the purpose specified in subsection A of this section.  In order to issue subsequent series of bonds, a bank, as described above, shall certify to the OCIA and the Native American Cultural and Educational Authority that there exist irrevocable letters of credit for outstanding pledges or cash on deposit or a combination of both in amounts equal to the amount of each subsequent series.  Any irrevocable letter of credit required by this subsection shall be issued by a bank chartered in this state and insured by the Federal Deposit Insurance Corporation to the maximum limit available.  The Oklahoma Capitol Improvement Authority may issue such bonds in a series of no less than One Million Dollars ($1,000,000.00) each.
K.  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.
SECTION 2.  This act shall become effective November 1, 2013.

54-1-147	ALM	1/15/2013 4:12:03 PM