§ 73-177.1. Buildings for the Oklahoma Department of Corrections.

A.  The Oklahoma Capitol Improvement Authority is authorized to acquire real property, together with improvements located thereon, and personal property for the construction of:

1.  A two hundred (200) bed medium security housing unit at the Lexington Assessment and Reception Center;

2.  A two hundred (200) bed medium security housing unit at the Oklahoma State Reformatory; and

3.  A two hundred (200) bed medium security housing unit at the Joseph Harp Correctional Center.

B.  The Authority may hold title to the real 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 Oklahoma Department of Corrections.  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 Oklahoma Department of Corrections.

C.  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 D 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-one Million Dollars ($21,000,000.00).  An amount not to exceed Eighteen Million Dollars ($18,000,000.00) of the total proceeds from the sale of such obligations shall be expended for construction of the housing units specified in subsection A of this section.  The balance of the proceeds may be used for the payment of issuance costs and the establishment of a fund for reserves.  It is the intent of the Legislature to appropriate to the Oklahoma Department of Corrections sufficient monies to make rental payments for the purposes of retiring the obligations created pursuant to this section.  The Oklahoma Capitol Improvement Authority shall, as soon as practical after issuance of the obligations authorized by this section, pay to the Oklahoma Department of Corrections from proceeds of the issuance an amount equal to the amount actually expended by the Oklahoma Department of Corrections for construction of housing units pursuant to the appropriation made by Section 3 of this act as of the date upon which the payment is made by the Oklahoma Capitol Improvement Authority.

D.  To the extent funds are available from the proceeds of the borrowing authorized by subsection C of this section, the Oklahoma Capitol Improvement Authority shall provide for the payment of professional fees and associated costs approved by the Oklahoma Department of Corrections.

E.  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.

F.  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 twenty (20) years from the first principal maturity date.

G.  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.

H.  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.

I.  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.

Added by Laws 1997, c. 121, § 5, emerg. eff. April 16, 1997.