1 STATE OF OKLAHOMA
1
2 2nd Session of the 59th Legislature (2024)
2
3 HOUSE BILL 4013 By: McBride
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to higher education capital
7 financing; creating the Higher Education Capital
8 Financing Act; creating the Higher Education Capital
8 Needs Evaluation Committee; providing for membership;
9 imposing duties; requiring certain annual reporting;
9 providing for the creation of a Higher Education
10 Capital Needs Five-Year Forecast; requiring certain
10 criteria for report; requiring certain delivery;
11 creating the Higher Education Capital Financing Fund;
11 establishing nature of fund; placing the fund under
12 the authority of the Oklahoma Capitol Improvement
12 Authority; establishing revolving fund
13 characteristics; authorizing and limiting uses;
13 requiring specific adherence; requiring certain
14 budgeting procedures; authorizing memoranda of
14 understanding; limiting memoranda of understanding;
15 clarifying legal status; requiring certain annual
15 reporting by the Oklahoma Capitol Improvement
16 Authority; amending 68 O.S. 2021, Section 2352, which
16 relates to apportionment of income tax collections;
17 providing for certain apportionment; authorizing
17 certain deposit installments; amending 70 O.S. 2021,
18 Section 3206, which relates to the powers and duties
18 of the Oklahoma State Regents for Higher Education;
19 establishing additional power and duty; amending 51
19 O.S. 2021, Section 6, which relates to dual office
20 holding; providing exemption for persons appointed to
20 the Oklahoma State System of Higher Education Capital
21 Needs Evaluation Committee; providing for
21 noncodification; providing for codification; and
22 providing an effective date.
22
23
23
24
24
Req. No. 9843 Page 1
 1 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
1
2 SECTION 1. NEW LAW A new section of law not to be
2
3 codified in the Oklahoma Statutes reads as follows:
3
4 This act shall be known and may be cited as the "Higher
4
5 Education Capital Financing Act".
5
6 SECTION 2. NEW LAW A new section of law to be codified
6
7 in the Oklahoma Statutes as Section 2244 of Title 70, unless there
7
8 is created a duplication in numbering, reads as follows:
8
9 A. There is hereby created the Oklahoma State System of Higher
9
10 Education Capital Needs Evaluation Committee.
10
11 B. The Committee shall consist of the following persons:
11
12 1. Three (3) persons to be appointed by the Governor;
12
13 2. One person to be appointed by the Speaker of the Oklahoma
13
14 House of Representatives, who shall have at least ten (10) years
14
15 demonstrated experience in the construction industry, whether as a
15
16 general contractor or a combination of experience as a general
16
17 contractor along with other construction-related experience;
17
18 3. One person to be appointed by the President Pro Tempore of
18
19 the Oklahoma State Senate, who shall have at least ten (10) years
19
20 demonstrated experience in the construction industry, whether as a
20
21 general contractor or a combination of experience as a general
21
22 contractor along with other construction-related experience;
22
23 4. One person to be appointed by the Board of Regents of the
23
24 University of Oklahoma;
24
Req. No. 9843 Page 2
 1 5. One person to be appointed by the Board of Regents of
1
2 Oklahoma State University;
2
3 6. One person to be appointed by the Board of Regents for the
3
4 Regional University System of Oklahoma; and
4
5 7. One person to be appointed by the board of regents for non-
5
6 system-affiliated public colleges.
6
7 C. The Committee shall be authorized to meet as often as
7
8 required in order to perform the duties imposed upon it pursuant to
8
9 law. The Committee shall select from among its membership a chair
9
10 and co-chair. A majority of the members of the Committee shall be
10
11 required to give final approval to the list of capital projects for
11
12 each funding period as prescribed by subsection D of this section.
12
13 D. The Committee shall evaluate the capital requirements for
13
14 The Oklahoma State System of Higher Education each year and shall
14
15 establish a schedule for the projects and make recommendations to
15
16 the Governor and to the Legislature according to the provisions of
16
17 subsection E of this section.
17
18 E. Beginning December 31, 2024, and no later than December 31
18
19 each year thereafter, the Higher Education Capital Needs Evaluation
19
20 Committee shall submit in written or electronic format to the
20
21 Governor, the Speaker of the Oklahoma House of Representatives, the
21
22 President Pro Tempore of the Oklahoma State Senate, the
22
23 Appropriations and Budget Chair of the Oklahoma House of
23
24 Representatives, and the Appropriations Chair of the Oklahoma State
24
Req. No. 9843 Page 3
 1 Senate an annual report on the infrastructure and construction needs
1
2 of The Oklahoma State System of Higher Education. The annual report
2
3 shall be known and may be cited as the Higher Education Capital
3
4 Needs Five-Year Forecast, and shall include:
4
5 1. Infrastructure and construction projects listed in order of
5
6 priority and critical need;
6
7 2. Cost estimates for each specific project listed in paragraph
7
8 1 of this subsection;
8
9 3. Completion timeline for each specific project listed in
9
10 paragraph 1 of this subsection; and
10
11 4. A summary of the status of projects previously funded and
11
12 currently being funded pursuant to the provisions of the Higher
12
13 Education Capital Financing Act.
13
14 F. Each funding cycle beginning with the report submitted not
14
15 later than December 31, 2024, shall provide an allocation of Two
15
16 Hundred Million Dollars ($200,000,000.00) for the capital projects
16
17 submitted for approval by the Committee.
17
18 SECTION 3. NEW LAW A new section of law to be codified
18
19 in the Oklahoma Statutes as Section 188B of Title 73, unless there
19
20 is created a duplication in numbering, reads as follows:
20
21 There is hereby created in the State Treasury a revolving fund
21
22 for the Oklahoma Capitol Improvement Authority to be designated the
22
23 "Higher Education Capital Financing Fund". The fund shall be a
23
24 continuing fund, not subject to fiscal year limitations, and shall
24
Req. No. 9843 Page 4
 1 consist of all monies received by the Oklahoma Capitol Improvement
1
2 Authority eligible under law and directed for deposit. All monies
2
3 accruing to the credit of said fund are hereby appropriated and may
3
4 be budgeted and expended by the Oklahoma Capitol Improvement
4
5 Authority for capital projects specifically and exclusively as
5
6 authorized by law. Such budgeting and expenditure shall strictly
6
7 adhere to the specific terms, limitations, purposes, and
7
8 requirements described in such authorizations and in this act.
8
9 Expenditures from said fund shall be made upon warrants issued by
9
10 the State Treasurer against claims filed as prescribed by law with
10
11 the Director of the Office of Management and Enterprise Services for
11
12 approval and payment.
12
13 SECTION 4. NEW LAW A new section of law to be codified
13
14 in the Oklahoma Statutes as Section 188C of Title 73, unless there
14
15 is created a duplication in numbering, reads as follows:
15
16 A. The Oklahoma Capitol Improvement Authority shall be
16
17 authorized to enter into memoranda of understanding with the
17
18 Oklahoma State Regents for Higher Education as provided by law and
18
19 with the board of regents for non-system-affiliated public colleges
19
20 and as deemed necessary by the Authority to administer expenditures
20
21 from and deposits to the Higher Education Capital Financing Fund;
21
22 provided that such memoranda of understanding do not conflict with
22
23 or impede the administration of capital projects specifically
23
24
24
Req. No. 9843 Page 5
 1 authorized by law. Such memoranda of understanding shall not
1
2 constitute a legal obligation of the State of Oklahoma.
2
3 B. Limited to the extent required for projects specifically
3
4 authorized through the Higher Education Capital Financing Act, the
4
5 Oklahoma Capitol Improvement Authority shall be authorized to:
5
6 1. Acquire real property together with improvements located
6
7 thereon and personal property;
7
8 2. Provide for the construction of improvements to real
8
9 property and provide funding for repairs, refurbishments, and
9
10 improvements to real and personal property;
10
11 3. Hold title to property and improvements as necessary to
11
12 comply with legal directives and authorizations; and
12
13 4. Lease, transfer, and otherwise legally dispose of property
13
14 and improvements as necessary to comply with legal directives and
14
15 authorizations.
15
16 C. No later than January 15 annually, the Oklahoma Capitol
16
17 Improvement Authority shall submit electronically to the Governor,
17
18 the Speaker of the Oklahoma House of Representatives, the President
18
19 Pro Tempore of the Oklahoma State Senate, the Appropriations and
19
20 Budget Chair of the Oklahoma House of Representatives, and the
20
21 Appropriations Chair of the Oklahoma State Senate a report detailing
21
22 impacts to the balance of the Higher Education Capital Financing
22
23 Fund occurring in the prior calendar year, including, but not
23
24 limited to, all distributions, expenditures, collections, deposits,
24
Req. No. 9843 Page 6
 1 and investment returns of the Higher Education Capital Financing
1
2 Fund.
2
3 SECTION 5. AMENDATORY 68 O.S. 2021, Section 2352, is
3
4 amended to read as follows:
4
5 Section 2352. It is hereby declared to be the purpose of
5
6 Section 2351 et seq. of this title to provide revenue for general
6
7 governmental functions of state government; and, for that purpose
7
8 and to that end, it is expressly declared that the revenue derived
8
9 herefrom and penalties and interest thereon, subject to the
9
10 apportionment requirements for the Rebuilding Oklahoma Access and
10
11 Driver Safety Fund, the Oklahoma Tourism and Passenger Rail
11
12 Revolving Fund, the Public Transit Revolving Fund and the Education
12
13 Reform Revolving Fund to be derived from income tax revenue that
13
14 would otherwise be apportioned to the General Revenue Fund as
14
15 provided by Section 1521 of Title 69 of the Oklahoma Statutes,
15
16 subject to the apportionment requirements for the Oklahoma Tax
16
17 Commission and Office of Management and Enterprise Services Joint
17
18 Computer Enhancement Fund provided by Section 265 of this title, and
18
19 subject to the apportionment requirements for the Oklahoma State
19
20 Capitol Building Repair and Restoration Fund provided by Section 19
20
21 of Title 73 of the Oklahoma Statutes, shall be distributed as
21
22 follows:
22
23 1. For the fiscal year beginning July 1, 2002, the first Five
23
24 Million Eight Hundred Thousand Dollars ($5,800,000.00) of revenue
24
Req. No. 9843 Page 7
 1 derived pursuant to the provisions of subsections A, B and E of
1
2 Section 2355 of this title shall be apportioned to the Education
2
3 Reform Revolving Fund; and for the fiscal year beginning July 1,
3
4 2024, and for each of the four (4) succeeding fiscal years, the sum
4
5 of Two Hundred Million Dollars ($200,000,000.00) shall be
5
6 apportioned to the Higher Education Capital Financing Fund, created
6
7 pursuant to Section 3 of this act, provided that such amount may be
7
8 deposited to the fund in equal installments over the course of the
8
9 fiscal year. The remainder of such revenue for the fiscal year
9
10 beginning July 1, 2002, and all such revenue for each fiscal year
10
11 thereafter shall be apportioned monthly as follows:
11
12 a. the following amounts shall be paid to the State
12
13 Treasurer to be placed to the credit of the General
13
14 Revenue Fund of the state for such fiscal year for the
14
15 support of the state government to be paid out only
15
16 pursuant to appropriation by the Legislature:
16
17 Fiscal Year Amount
17
18 FY 2003 and FY 2004 87.12%
18
19 FY 2005 86.91%
19
20 FY 2006 86.66%
20
21 FY 2007 86.16%
21
22 FY 2008 through FY 2022 85.66%
22
23 FY 2023 through FY 2027 85.41%
23
24 FY 2028 and each fiscal year thereafter 85.66%
24
Req. No. 9843 Page 8
 1 Of the funds apportioned to the General Revenue Fund
1
2 pursuant to this subparagraph, until the expiration of
2
3 the Filmed in Oklahoma Act of 2021 as provided in
3
4 Section 11 of this act, Thirty Million Dollars
4
5 ($30,000,000.00) shall be transferred to the Oklahoma
5
6 Tax Commission for deposit in the Filmed in Oklahoma
6
7 Program Revolving Fund,
7
8 b. the following amounts shall be paid to the State
8
9 Treasurer to be placed to the credit of the Education
9
10 Reform Revolving Fund of the State Department of
10
11 Education:
11
12 (1) for FY 2003 through FY 2020, eight and thirty-
12
13 four one-hundredths percent (8.34%),
13
14 (2) for FY 2021:
14
15 (a) for the month beginning July 1, 2020,
15
16 through the month ending August 31, 2020,
16
17 eight and thirty-four one-hundredths percent
17
18 (8.34%), and
18
19 (b) for the month beginning September 1, 2020,
19
20 through the month ending June 30, 2021, nine
20
21 and eighty-four one-hundredths percent
21
22 (9.84%),
22
23 (3) for FY 2022 and each fiscal year thereafter,
23
24 eight and thirty-four one-hundredths percent
24
Req. No. 9843 Page 9
 1 (8.34%) shall be paid to the State Treasurer to
1
2 be placed to the credit of the Education Reform
2
3 Revolving Fund,
3
4 c. the following amounts shall be paid to the State
4
5 Treasurer to be placed to the credit of the Teachers'
5
6 Retirement System Dedicated Revenue Revolving Fund:
6
7 Fiscal Year Amount
7
8 FY 2003 and FY 2004 3.54%
8
9 FY 2005 3.75%
9
10 FY 2006 4.0%
10
11 FY 2007 4.5%
11
12 FY 2008 through FY 2020 5.0%
12
13 FY 2021:
13
14 (1) for the month beginning
14
15 July 1, 2020, through
15
16 the month ending August
16
17 31, 2020