Oklahoma § 73-183 - Construction and operation of correctional facilities

§ 73-183. Construction and operation of correctional facilities

A. Upon authorization by the Legislature, the Oklahoma Capitol

Improvement Authority shall acquire real property, and construct

improvements and facilities located thereon, and personal property

to be used for purposes of the construction or operation of

correctional facilities.

Oklahoma Statutes - Title 73. State Capital and Capitol Building

B.

The correctional facilities authorized herein may consist

of:

1. One or more facilities of medium security level or higher of

not less than nine hundred beds nor more than two thousand five

hundred beds for male inmates;

2. One or more facilities of medium security level or higher of

not less than five hundred beds nor more than one thousand five

hundred beds for female inmates; and

3. Other inmate facilities with such security levels and size

as may be designated by the Legislature.

C. Construction of the facilities described in subsection B of

this section may be undertaken in phases as described in the

proposal.

D. Prior to the construction of the facilities, the Board of

Corrections shall approve the site for each of the facilities in the

manner provided by Section 80 of this act.

E. The Authority may hold title to the real property 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 personal 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 personal property and improvements

shall be transferred from the Oklahoma Capitol Improvement Authority

to the Oklahoma Department of Corrections.

F. For the purpose of paying the costs for acquisition of the

real property and improvements and personal property authorized in

subsections A and B of this section, and for the purpose authorized

in subsection G 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, personal property

and improvements and, in anticipation of the collection of such

income and revenues, to issue negotiable obligations in an amount

not to exceed the amount required to provide for construction of

facilities described in subsection B of this section. 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 costs for acquisition of the real property or

improvements or both and personal property authorized in subsections

A and B of this section shall not exceed the amount required to

provide for the purchase of real and personal property and

construction of facilities described in subsection B of this

section.

G. To the extent funds are available from the proceeds of the

borrowing authorized by subsection F of this section, the Oklahoma

Capitol Improvement Authority shall provide for the payment of

Oklahoma Statutes - Title 73. State Capital and Capitol Building

professional fees and associated costs approved by the Oklahoma

Department of Corrections. The Oklahoma Capitol Improvement

Authority shall use the resources of the State Bond Advisor, the

Attorney General and the State Treasurer in order to evaluate the

costs and expenses associated with the issuance of its obligations

and shall use such information as may be required to reduce the

costs associated with the issuance of the obligations.

H. 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.

I. 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 thirty (30) years from

the first principal maturity date. The State Treasurer shall be

authorized to purchase the obligations as an investment of public

funds under the State Treasurer's control.

J. 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.

K. 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.

L. 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. 133, § 79, eff. July 1, 1997.