A. The Oklahoma Capitol Improvement Authority may make repairs to Department of Corrections facilities; renovate and refurbish facilities at Eastern State Hospital located at Vinita, Oklahoma for use by the Department of Corrections to house state inmates; renovate and refurbish facilities at Eastern State Hospital located at Vinita, Oklahoma for use by the Department of Mental Health to house mentally ill patients; and construct and renovate facilities for juvenile detention and treatment. Upon the retirement of the indebtedness created pursuant to this section, the title to the land and improvements thereon shall be transferred from the Oklahoma Capitol Improvement Authority to the Oklahoma Department of Corrections, Department of Mental Health, and Department of Human Services or the Department of Juvenile Justice, whichever is appropriate. Project costs are allocated in the following amounts:

Infrastructure repairs -

Department of Corrections$11,000,000.00

Facility renovation -

Department of Corrections$2,420,000.00

Facility renovation -

Department of Mental Health$580,000.00

Juvenile detention facilities -

Department of Human Services $4,500,000.00

Total$18,500,000.00

B. For the purpose of paying the costs of the projects authorized in subsection A of this section, the Authority is hereby authorized to borrow monies on the credit of the income and revenues to be derived from such projects and, in anticipation of the collection of such income and revenues, to issue negotiable bonds not to exceed the sum of Seventeen Million Five Hundred Thousand Dollars ($17,500,000.00) as may be determined by the Authority. The Authority may retain such legal counsel as it deems necessary for this purpose. It is the intent of the Legislature to appropriate to the Oklahoma Department of Corrections, Department of Mental Health, and Department of Human Services sufficient monies to make payments to the Authority for purposes of retiring the debt created pursuant to this section.

C. The interest rate on the bonds issued pursuant to this section shall not exceed seven and three-quarters percent (7.75%) per annum.

D. The Authority may issue the bonds in one or more series.

E. The State Treasurer shall buy, and the Authority shall sell to the State Treasurer at private sale, the bonds authorized by this section. The Authority shall fix the rate of interest the bonds shall bear, such rate of interest not to exceed the maximum specified in this section. All interest earned on the bonds held by the State Treasurer, as collected, shall be paid into the General Revenue Fund.

F. Insofar as they are not in conflict with the provisions of this section, the provisions of Section 151 et seq. of this title shall apply to this section.

G. The Department of Corrections is hereby authorized to expend up to One Million Dollars ($1,000,000.00) of the interest earned from investment of the proceeds of the bonds authorized by subsection B of this section for the purpose of paying the costs of the infrastructure repairs of the Department of Corrections authorized in subsection A of this section less any amount necessary to meet any rebate requirements of the federal government.

Added by Laws 1994, c. 277, § 16. Amended by Laws 1996, c. 12, § 4, emerg. eff. April 1, 1996.