ENROLLED HOUSE
BILL NO. 2046 By: McCall of the House
and
Simpson of the Senate
An Act relating to higher education funding districts; enacting
the Higher Education Institution Local Funding Act; making legislative
findings; providing for construction of act as amendment pursuant to Section 9B
of Article X of the Oklahoma Constitution; providing procedures for certain
institutions within The Oklahoma State System of Higher Education to form
district; providing for creation of higher education funding district;
providing for resolution; prohibiting inclusion of certain territory within
higher education funding districts; providing for election regarding formation
and boundary of district; requiring preparation of map depicting district
boundary; requiring county assessor to provide information regarding net assessed
values and exempt property; requiring county election board to provide precinct
boundary map; providing for election procedures; requiring payment of election
costs by institution of higher education; authorizing operational millage rate;
prescribing procedures for issuance of bonds and sinking fund millage rate;
providing for special elections; providing for formation of district after
approval at election; providing for application of certain millage rates;
imposing duty on county treasurer with respect to collection of revenues;
prescribing procedures for payment of revenues; prescribing authorized purposes
of expenditures; restricting use of revenues for certain purposes; prohibiting
certain revenues from being taken into consideration for purposes of allocation
by State Regents; providing for expenditure of bond proceeds; providing for
applicability of Internal Revenue Code of 1986 with respect to certain
proceeds; prescribing maximum maturity of bonds; providing for procedures for
sale of bonds; prescribing procedures for elections to modify millage rates for
operational expenditures; prohibiting modification of sinking fund millage
rates; providing for annexation or deannexation procedures with respect to
territory of higher education funding district; providing for applicability of
rules regarding annexation or deannexation of territory with respect to career
technology districts; and providing for codification.
SUBJECT:
Higher education funding districts
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 9001 of Title 70, unless
there is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Higher
Education Institution Local Funding Act".
SECTION 2.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9002 of Title 70, unless
there is created a duplication in numbering, reads as follows:
The Legislature finds that providing access to additional
sources of revenue for certain institutions within The Oklahoma State System of
Higher Education is in furtherance of a policy for making postsecondary
education accessible to more persons, providing increased educational
opportunities, improved income-producing potential and other positive
outcomes. The provisions of this act
shall be considered an amendment authorized by subsection H of Section 9B of
Article X of the Oklahoma Constitution.
SECTION 3.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9003 of Title 70, unless
there is created a duplication in numbering, reads as follows:
An eligible two-year institution within The Oklahoma State
System of Higher Education that utilizes the procedures established by this act
shall be considered a higher education funding district for purposes of
establishing a district, organizing the district, calling for operational
millage rates or sinking fund millage rates or both, in the same manner as
provided by law pursuant to the provisions of Section 9B of Article X of the
Oklahoma Constitution and the provisions of Title 70 of the Oklahoma Statutes
which enable Section 9B of Article X.
SECTION 4.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9004 of Title 70, unless
there is created a duplication in numbering, reads as follows:
A. The board of regents
of an eligible two-year college within The Oklahoma State System of Higher
Education may adopt a resolution to cause the college to be included, for
purposes of this act, within a higher education funding district. The resolution shall require the approval of
a majority of the members of the board of regents.
B. No higher education
funding district shall be allowed to include the territory or establish any
levy of any career technology district, including any existing college career
technology district, that has been formed prior to the proposed formation of a
higher education funding district.
SECTION 5.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9005 of Title 70, unless
there is created a duplication in numbering, reads as follows:
A. The board of regents
of the eligible institution shall cause a map to be prepared depicting the
boundary of the proposed district with the assets constituting the main campus
of the institution to be located at some point within such boundary.
B. The county assessor of
the county or counties within which the district is proposed to be located
shall provide information to the board of regents regarding the net assessed
value of all taxable property within the boundary of the proposed district,
including the identification of any real property exempt from taxation pursuant
to the provisions of Section 6 of Article X of the Oklahoma Constitution, any
other provision of the Oklahoma Constitution or the provisions of Section 2887
of Title 68 of the Oklahoma Statutes.
SECTION 6.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9006 of Title 70, unless
there is created a duplication in numbering, reads as follows:
The county election board of the county or counties within which
the proposed higher education funding district is to be located shall provide a
precinct boundary map of the proposed area to the board of regents which has
approved the resolution to call for a vote to form and organize a higher
education funding district.
SECTION 7.
NEW LAW A new section of law to be codified in the
Oklahoma Statutes as Section 9007 of Title 70, unless there is created a
duplication in numbering, reads as follows:
A. An election may be
conducted in November of any even-numbered year in order to determine whether
the proposed higher education funding district shall be formed and its initial
operational millage rate, which shall not exceed the number of mills as
prescribed by Section 9B of Article X of the Oklahoma Constitution. If the certified election results show that
a sixty percent (60%) majority of all votes cast are in favor of the creation
of the higher education funding district, the county election board shall
declare the district to have been established and, if an initial operational
millage was submitted to the voters as part of the same ballot measure for
creation of the district, shall also declare such millage rate to be
established for the district.
B. If there are to be any
bonds or other evidence of indebtedness issued by the district
contemporaneously approved at the election calling for the formation of the
district or at any subsequent election called for the purposes of approving
such bonds or other evidence of indebtedness, such information as may be
required for the approval of a sinking fund millage rate as provided by law
shall also be included on the ballot, but the principal amount of debt to be
incurred, the projects to be constructed or improved or acquired with the
proceeds of the bonds, the maximum maturity of the bonds and other information
shall be included as part of the ballot title if that question is submitted to
the voters.
C. A special election may
be conducted in the manner prescribed by Section 12-116 of Title 26 of the
Oklahoma Statutes if the question of the creation of the higher education
funding district is to be submitted at any other time than a General Election.
D. All costs for
elections related to higher education funding districts shall be paid for by
the institution of higher education for the benefit of which the district is
being created or, after approval of such district, for the benefit of which the
district was created.
SECTION 8.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9008 of Title 70, unless
there is created a duplication in numbering, reads as follows:
If approved by sixty percent (60%) or more of the voters at the
election provided for by Section 7 of this act, there shall be created a higher
education funding district which shall be governed by the board of regents for
the institution within The Oklahoma State System of Higher Education that has
managerial control for the institution for the benefit of which the district
has been created.
SECTION 9.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9009 of Title 70, unless
there is created a duplication in numbering, reads as follows:
The millage levied by a higher education funding district shall
be applied to the net assessed value of all taxable property located within the
district each year in the same manner as provided by law for millage imposed by
other ad valorem taxing jurisdictions.
The county treasurer shall include the tax due resulting from such millage
in the same manner as provided by law for other ad valorem taxes.
SECTION 10.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9010 of Title 70, unless
there is created a duplication in numbering, reads as follows:
A. All revenues derived
from the net assessed value of property located within the boundary of the
higher education funding district shall be paid by the county treasurer to the
general fund of the eligible institution or to such fund as may be specified by
the board of regents for the institution, and the board of regents for the
institution shall be authorized to expend such revenues in support of the
operational expenses of the institution, including, without limitation, employee
salaries, employee benefits, including retirement benefits and health care
benefits, federal or state income or withholding taxes or related payroll
taxes, utility costs, insurance expenses, books, electronic instructional
materials, supplies for classrooms, upkeep of grounds and landscaping,
maintenance of physical plants such as heating and air conditioning units,
acquisition and maintenance of motor vehicles and such other expenditures as
may be approved by the board of regents pursuant to such standards and
procedures as the board of regents may establish.
B. None of the revenues
derived from any millage rate imposed within the boundary of a higher education
funding district may be used by an institution within The Oklahoma State System
of Higher Education to compete with the services or programs offered by any
existing career technology district which is either contiguous to the boundary
of the higher education funding district or located in sufficiently close
proximity to the higher education funding district that the programs or
services offered by such career technology district would be duplicated or
adversely impacted by the expenditure of funds by the institution which causes
the formation of the higher education funding district pursuant to the provisions
of this act.
C. The Oklahoma State
Regents for Higher Education shall not take into consideration revenues derived
from any millage levy imposed pursuant to the provisions of the Higher
Education Institution Local Funding Act when allocating state-appropriated
funds for support of the institution which established a higher education
funding district pursuant to the provisions of this act.
SECTION 11.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9011 of Title 70, unless
there is created a duplication in numbering, reads as follows:
A. Proceeds from bonds or
other evidence of indebtedness issued by the higher education funding district
may be expended on such assets as authorized by the provisions of the Internal
Revenue Code of 1986, as amended, or other provisions of federal or state law
based on whether the interest income paid to bondholders is exempt from federal
or state income tax.
B. Final maturity of any
obligation issued by the higher education funding district shall not exceed
twenty-five (25) years.
C. Bonds or other
evidence of indebtedness issued by a higher education funding district may be
sold using such procedures as may be established by the board of regents of the
institution for whose benefit the higher education funding district has been
created.
SECTION 12.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9012 of Title 70, unless
there is created a duplication in numbering, reads as follows:
After the formation of a higher education funding district
authorized by this act, the question of modification of an operational millage
rate may be submitted to the voters of the district by resolution of the board
of regents of the institution within The Oklahoma State System of Higher
Education for the benefit of which the district has been created or upon a
petition signed by ten percent (10%) or more of the eligible voters residing
within the boundary of a district. No
millage rate in excess of that provided for in Section 9B of Article X of the
Oklahoma Constitution may be approved and no sinking fund millage rate for
repayment of bonds or other evidence of indebtedness may be modified pursuant
to the provisions of this section. The
question of modification of an operational millage rate may be submitted at
either a General Election or a special election with notice of the question to
be provided in advance of the election date in the same manner as provided by
law for similar questions pursuant to Section 9B of Article X of the Oklahoma
Constitution or enabling legislation enacted pursuant to authority of that
section.
SECTION 13.
NEW LAW A new section of law
to be codified in the Oklahoma Statutes as Section 9013 of Title 70, unless
there is created a duplication in numbering, reads as follows:
After the formation of a higher education funding district
authorized by this act, the question of annexation or deannexation of territory
comprising the district may be submitted either by resolution of the board of
regents for the institution within The Oklahoma State System of Higher
Education for whose benefit the district was created or by a petition signed by
ten percent (10%) or more of the eligible voters of the district. The procedures for conducting the vote and
implementing any changes in the boundary of the higher education funding
district shall be the same as those prescribed by Section 9B of Article X of
the Oklahoma Constitution or enabling legislation enacted or administrative
rules adopted pursuant thereto.
Passed the
House of Representatives the 19th day of May, 2022.
Presiding
Officer of the House
of
Representatives
Passed the Senate the 20th day of
May, 2022.
Presiding
Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office
of the Governor this ____________________ day of ___________________,
20_______, at _______ o'clock _______ M.
By:
_________________________________
Approved by the
Governor of the State of Oklahoma this _________ day of ___________________,
20_______, at _______ o'clock _______ M.
_________________________________
Governor of
the State of Oklahoma
OFFICE
OF THE SECRETARY OF STATE
Received by the Office
of the Secretary of State this __________ day of ___________________, 20_______,
at _______ o'clock _______ M.
By:
_________________________________