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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 963 By: Standridge
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6 AS INTRODUCED
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7 An Act relating to the Oklahoma Turnpike Authority;
7 amending 69 O.S. 2021, Section 1709, which relates to
8 turnpike revenue bonds; establishing a bond debt
8 ceiling; updating statutory language; updating
9 statutory references; and providing an effective
9 date.
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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13 SECTION 1. AMENDATORY 69 O.S. 2021, Section 1709, is
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14 amended to read as follows:
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15 Section 1709. A. The Oklahoma Turnpike Authority may provide
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16 by resolution, at one time or from time to time, for the issuance of
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17 turnpike revenue bonds of the Authority for the purpose of paying
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18 all or any part of the cost of any one or more turnpike projects in
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19 such amount or amounts not to exceed Two Billion Seven Hundred Ten
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20 Million Dollars ($2,710,000,000.00) in total aggregate indebtedness
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21 outstanding at any time. The Authority, when it finds that it would
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22 be economical and beneficial to do so, may combine two or more, or
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23 any part thereof, or all of its proposed projects into one unit and
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24 consider the same as one project to the same extent and with like
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Req. No. 1337 Page 1
1 effect as if the same were a single project. The principal of and
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2 the interest on the bonds shall be payable solely from the funds
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3 provided for such payment. The bonds of each issue shall be dated,
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4 shall bear interest at such rate or rates not exceeding the
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5 limitations pertaining to public trust indebtedness from time to
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6 time expressed in subsection E F of Section 176 of Title 60 of the
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7 Oklahoma Statutes, shall mature at such time or times not exceeding
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8 forty (40) years from their date or dates, as may be determined by
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9 the Authority, and may be made redeemable before maturity at the
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10 option of the Authority at such price or prices and pursuant to such
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11 terms and conditions as may be fixed by the Authority prior to the
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12 issuance of the bonds. The Authority shall determine the form of
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13 the bonds, including any interest coupons to be attached thereto,
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14 and the manner of execution of the bonds, and shall fix the
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15 denomination or denominations of the bonds and the place or places
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16 of payment of principal and interest, which may be at any bank or
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17 trust company within or without the state. If any officer whose
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18 signature or facsimile of whose signature appears on any bonds or
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19 coupons shall cease to be said such officer before the delivery of
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20 the bonds, the signature or the facsimile shall nevertheless be
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21 valid and sufficient for all purposes the same as if the person had
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22 remained in office until such delivery. All bonds issued pursuant
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23 to the provisions of this article shall have all the qualities and
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24 incidents of negotiable instruments subject to the negotiable
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Req. No. 1337 Page 2
1 instruments law of this state. The bonds may be issued in coupon or
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2 in registered form, or both, as the Authority may determine, and
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3 provisions may be made for the registration of any coupon bonds as
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4 to principal alone and also as to both principal and interest, and
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5 for the reconversion into coupon bonds of any bonds registered as to
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6 both principal and interest. The Authority may sell the bonds in
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7 such amounts and in such manner, either at public or private sale,
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8 and for such price, as it may determine to be in the best interest
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9 of this state, but in no event at a discount in excess of that from
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10 time to time expressed in said subsection E G of Section 176 of
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11 Title 60 of the Oklahoma Statutes.
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12 B. The proceeds of the bonds of each issue shall be used solely
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13 for the payment of the cost of the turnpike project for which such
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14 bonds have been issued, and shall be disbursed in such manner and
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15 pursuant to such restrictions, if any, as the Authority may provide
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16 in the resolution authorizing the issuance of such bonds or in the
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17 trust agreement securing the same. If the proceeds of the bonds of
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18 any issue, by error of estimates or otherwise, shall be less than
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19 such cost, additional bonds may in like manner be issued to provide
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20 the amount of such deficit, and, unless otherwise provided for in
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21 the resolution authorizing the issuance of such bonds or in the
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22 trust agreement securing the same, shall be deemed to be of the same
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23 issue and shall be entitled to payment from the same fund without
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24 preference or priority of the bonds first issued. If the proceeds
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Req. No. 1337 Page 3
1 of the bonds of any issue shall exceed such cost, the surplus shall
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2 be deposited to the credit of the sinking fund for such bonds, or
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3 shall be used by the Authority in implementing any other power
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4 expressly granted to the Authority in this article.
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5 C. Prior to the preparation of definitive bonds, the Authority,
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6 subject to like restrictions, may issue interim receipts or
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7 temporary bonds, with or without coupons, exchangeable for
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8 definitive bonds when such bonds have been executed and are
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9 available for delivery. The Authority may also provide for the
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10 replacement of any bonds which have become mutilated or were
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11 destroyed or lost. Bonds may be issued pursuant to the provisions
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12 of this article without obtaining the consent of any department,
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13 division, commission, board, bureau, or agency of this state, and
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14 without any other proceedings or the occurrence of any other
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15 conditions or things than those proceedings, conditions, or things
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16 that are specifically required by this article.
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17 D. The Authority is hereby authorized to provide that the
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18 bonds:
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19 1. Be made payable from time to time on demand or tender for
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20 purchase by the owner, provided a credit facility supports such
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21 bonds, unless the Authority specifically determines that a credit
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22 facility is not required;
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23 2. Be additionally supported by a credit facility;
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1 3. Be made subject to redemption prior to maturity, with or
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2 without premium, on such notice and at such time or times and with
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3 such redemption provisions as may be determined by the Authority or
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4 with such variations as may be permitted in connection with a par
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5 formula;
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6 4. Bear interest at a rate or rates that may vary as permitted
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7 pursuant to a par formula and for such period or periods of time,
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8 all as may be determined by the Authority; and
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9 5. Be made the subject of a remarketing agreement whereby an
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10 attempt is made to remarket the bonds to new purchasers prior to
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11 their presentment for payment to the provider of the credit facility
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12 or to the Authority.
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13 No credit facility, repayment agreement, par formula or
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14 remarketing agreement shall become effective without the approval of
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15 the Authority.
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16 E. As used in this section, the following terms shall have the
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17 following meanings:
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18 1. "Credit facility" means an agreement entered into by the
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19 Authority with any bank, savings and loan association or other
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20 banking institution; an insurance company, reinsurance company,
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21 surety company, or other insurance institution; a corporation,
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22 investment banker or other investment institution; or any other
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23 financial institution providing for prompt payment of all or any
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24 part of the principal, whether at maturity, presentment for
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Req. No. 1337 Page 5
1 purchase, redemption or acceleration, redemption premium, if any,
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2 and interest on any bonds payable on demand or tender by the owner
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3 issued in accordance with this section, in consideration of the
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4 Authority's agreeing to repay the provider of such credit facility
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5 in accordance with the terms and provisions of such repayment
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6 agreement; provided, that any such repayment agreement shall provide
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7 that the obligation of the Authority thereunder shall have only such
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8 sources of payment as are permitted for the payment of the bonds
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9 issued under this article; and
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10 2. "Par formula" means any provision or formula adopted by the
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11 Authority to provide for the adjustment, from time to time, of the
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12 interest rate or rates borne by any such bonds so that the purchase
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13 price of such bonds in the open market would be as close to par as
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14 possible.
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15 F. Nothing in any law heretofore enacted or enacted at the
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16 present session of the Legislature shall be deemed to limit or
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17 restrict the right of the Authority to issue bonds or other
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18 obligations the interest income, in whole or in part, on which is
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19 subject, directly or indirectly, to federal income taxation.
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20 G. The Authority may enter into transactions utilizing
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21 derivative products, and other financial products intended to hedge
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22 interest rate risk, including any option to enter into or terminate
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23 any of them, that the Authority deems to be necessary or desirable
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24 in connection with any bonds issued prior to, at the same time as,
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1 or after entering into such arrangement and containing terms and
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2 provisions, and may be with such parties, as determined by the
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3 Authority. Provided, any action taken by the Authority pursuant to
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4 this subsection must first be approved by the Oklahoma State Bond
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5 Advisor Deputy Treasurer for Debt Management and the Council of Bond
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6 Oversight pursuant to the provisions of the Oklahoma Bond Oversight
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7 and Reform Act.
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8 SECTION 2. This act shall become effective November 1, 2025.
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10 60-1-1337 MSBB 1/19/2025 5:46:49 AM
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Req. No. 1337 Page 7Every fact on this page links to its source, starting with the official bill record.