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.

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 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.