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An Act
ENROLLED HOUSE
BILL NO. 1590 By: Lepak of the House
and
Daniels of the Senate
An Act relating to public finance; enacting the
Oklahoma Education Infrastructure Linked Deposit
Program Act; defining terms; requiring State
Treasurer to disseminate information; authorizing
administration of program; authorizing issuance of
guidelines; requiring annual report; providing for
certain loan packages; prescribing procedures for
applications to participate in program; imposing
restriction on loan agreements; prohibiting certain
conflict of interest; imposing requirement with
respect to use of loan proceeds; providing for
evaluation of education service entity; prescribing
procedures for review; providing for determination of
certain interest rate; prohibiting false statements;
providing for review of loan packages by State
Treasurer; prescribing procedures in the event of
application rejections; providing for evaluation by
State Treasurer; providing for placement of certain
state funds; providing for deposit agreements;
stating requirements of agreements; imposing duty on
lending institution; prescribing requirement with
respect to interest rate; providing for certificates
of compliance; providing for immunity from liability;
providing for effect of certain events related to
loan agreement; prescribing maximum loan amount;
authorizing renewals; providing for codification; and
providing an effective date.
SUBJECT: Public finance
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
ENR. H. B. NO. 1590 Page 2
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.1 of Title 62, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Oklahoma
Education Infrastructure Linked Deposit Program".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.2 of Title 62, unless there
is created a duplication in numbering, reads as follows:
It is the purpose of the Oklahoma Education Infrastructure
Linked Deposit Program to provide funding for eligible education
service delivery entities. It is the specific intent of the
Legislature that any funding provided to eligible education service
delivery entities shall enhance educational opportunities for the
children of this state.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.3 of Title 62, unless there
is created a duplication in numbering, reads as follows:
As used in the Oklahoma Education Infrastructure Linked Deposit
Program:
1. "Board" means the Statewide Charter School Board created
pursuant to Section 3-132.1 of Title 70 of the Oklahoma Statutes;
2. "Education service entity" means a nonprofit organization or
a charter school;
3. "Education service entity infrastructure" means construction
of new buildings, expansions or rehabilitation of an existing
building and items of tangible personal property integrated into a
building, including, but not limited to, heating, air conditioning
and ventilation (HVAC) systems;
4. "Education services linked deposit" means a certificate of
deposit placed by the State Treasurer with an eligible lending
institution or an investment in bonds, notes, debentures, or other
obligations with regard to an eligible lending institution for the
purpose of carrying out the intent of this program;
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5. "Education service entity linked deposit loan package" means
the forms provided by the State Treasurer for the purpose of
applying for an education service entity linked deposit; and
6. "Eligible lending institution" means a financial institution
that agrees to participate in the Oklahoma Education Infrastructure
Linked Deposit Program, and is eligible to be a depository of state
funds.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.4 of Title 62, unless there
is created a duplication in numbering, reads as follows:
The State Treasurer shall disseminate information about the
Oklahoma Education Infrastructure Linked Deposit Program to the
financial institutions in this state.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.5 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The State Treasurer is authorized to administer the Oklahoma
Education Infrastructure Linked Deposit Program. The State
Treasurer in coordination with the Statewide Charter School Board is
further authorized to issue guidelines with respect to the Oklahoma
Education Infrastructure Linked Deposit Program.
B. The State Treasurer shall submit an annual report outlining
the status of the Oklahoma Education Infrastructure Linked Deposit
Program to the Governor, the Lieutenant Governor, the President Pro
Tempore of the Oklahoma State Senate, and the Speaker of the
Oklahoma House of Representatives.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.6 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The State Treasurer is authorized to disseminate information
and provide education service entity deposit loan packages to the
lending institutions eligible for participation in the Oklahoma
Education Infrastructure Linked Deposit Program.
B. The education service entity deposit loan package shall be
completed by the borrower before being forwarded to the lending
institution for consideration. Any technical assistance in
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completing the education service entity loan package shall be
provided by the Statewide Charter School Board.
C. 1. An eligible lending institution that desires to receive
an education service entity deposit shall accept and review
applications for loans from eligible education service entities.
The lending institution shall apply all usual lending standards to
determine the credit worthiness of each eligible education service
entity.
2. Only one linked deposit loan shall be made and be
outstanding at any one time to any education service entity.
However, the linked deposit loan may be refinanced.
3. No loan shall be made to any officer or director of the
lending institution making the loan.
D. An eligible education service entity shall certify on its
loan application that the reduced-rate loan will be used exclusively
for the construction or repair of eligible education service entity
infrastructure.
E. In considering which eligible education service entities to
include in the education service entity deposit loan package for
reduced-rate loans, the eligible lending institution shall give
priority to the economic and educational services needs of the area
in which the education service entity is located and other factors
it considers appropriate to determine the relative financial need of
the education service entity.
F. 1. The eligible lending institution shall forward to the
State Treasurer an education service entity deposit loan package in
the form and manner prescribed and approved by the State Treasurer.
The package shall include information regarding the amount of the
loan requested by each eligible education service entity and any
other information regarding each education service entity the State
Treasurer and the Board requires. The institution shall certify
that each applicant is an eligible education service entity, and
shall, for each education service entity, certify the present
borrowing rate applicable to each specific eligible education
service entity.
2. Whoever knowingly makes a false statement concerning a
linked deposit loan application shall be prohibited from
participating in the linked deposit loan program.
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G. Upon receipt of a completed education service entity deposit
loan package, the State Treasurer may review or audit the
information contained in the completed education service entity
deposit loan package. The State Treasurer shall forward the
completed education service entity deposit loan package to the
Board. The Board shall review the education service entity deposit
loan package to determine if the package qualifies under this
program. The Board shall make a recommendation concerning the
package within ten (10) business days. The Board shall return the
package to the State Treasurer with a written recommendation of
approval or rejection. If the Board recommends rejection, the
written recommendation shall include reasons for the rejection. The
Board shall forward a copy of the rejection notice to the lending
institution and the borrower. The State Treasurer shall keep a
chronological list of applications forwarded by the Board for
approval or rejection.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.7 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The State Treasurer may accept or reject an education
service entity deposit loan package or any portion of the package,
based on the State Treasurer's evaluation of the eligible lending
institution, the amount of individual loans in the package, the
amount of the package, funds available, and the rate savings
provided. If the State Treasurer recommends rejection, the written
recommendation shall include reasons for the rejection in a report
to the Statewide Charter School Board. The Board shall forward a
copy of the rejection notice to the lending institution and the
eligible education service entity. Applications brought into
compliance with the Board and the State Treasurer may be resubmitted
for consideration. If the State Treasurer rejects the loan because
sufficient funds are not available for a linked deposit, then the
applications may be considered in the order received when funds are
once again available subject to a review by the Board and the
lending institution. In evaluating the eligible education deposit
loan package, the State Treasurer shall consider the recommendation
of the Board, including the economic needs of the area where the
education service entity is located.
B. Upon acceptance of the education service entity deposit loan
package or any portion of the package, the State Treasurer shall
notify the Board, the lending institution and the borrower. Upon
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acceptance, the State Treasurer may place certificates of deposit
with the eligible lending institution at a rate below current market
rates, as determined and calculated by the State Treasurer with
respect to the eligible lending institution at a rate below current
market rates, as determined and calculated by the State Treasurer.
When necessary, the State Treasurer may place certificates of
deposit or may invest in obligations or securities prior to
acceptance of an education service entity deposit loan package.
C. 1. The eligible lending institution shall enter into an
education service entity deposit agreement with the State Treasurer,
that shall include requirements necessary to implement the purposes
of the Oklahoma Education Infrastructure Linked Deposit Program.
The requirements shall include an agreement by the eligible lending
institution to lend an amount equal to the education service entity
linked deposit to eligible education service entities at an interest
rate that reflects a percentage rate reduction below the present
borrowing rate applicable to each specific education service entity
in the accepted loan package that is equal to the percentage rate
reduction below market rates at which the certificates of deposit
that constitute the education service entity linked deposit were
placed or at which the investments in bonds, notes, debentures, or
other obligations or securities that constitute the education
service entity linked deposit were made. The requirements shall
also reflect the market conditions prevailing in the eligible
lending institution's lending area.
2. The agreement may include a specification of the period of
time in which the lending institution is to lend funds upon the
placement of a linked deposit, and shall include provisions for the
certificates of deposit to be placed or the investment in bonds,
notes, debentures, obligations, or securities to be made for any
maturity considered appropriate by the State Treasurer. No renewals
will be allowed unless the amount of principal has been reduced by a
minimum of five percent (5%) and all interest paid to date from the
time of the prior loan or renewal. Interest shall be paid at the
times determined by the State Treasurer.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.8 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. 1. Upon the placement of an education service entity
deposit with an eligible lending institution, the institution shall
fund the loan to each approved eligible education service entity
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listed in the education service entity deposit loan package in
accordance with the education service entity deposit agreement
between the institution and the State Treasurer.
2. The loan shall be at a rate that reflects a percentage rate
reduction below the present borrowing rate applicable to each
education service entity that is equal to the percentage rate
reduction below market rates at which the certificate of deposits
that constitute the education service entity deposit were placed or
at which the investments in bonds, notes, debentures, or other
obligations or securities that constitute the education service
entity deposit were made.
3. A certification of compliance with this section in the form
and manner as prescribed by the State Treasurer shall be required of
the eligible lending institution.
B. The State Treasurer shall take any and all steps necessary
to implement the Oklahoma Education Infrastructure Linked Deposit
Program and monitor compliance of eligible lending institutions and
eligible education service entities, including the development of
guidelines as necessary.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.9 of Title 62, unless there
is created a duplication in numbering, reads as follows:
The State of Oklahoma, the Statewide Charter School Board, and
the State Treasurer shall not be liable to any eligible lending
institution in any manner for payment of the principal or interest
on the loan to an eligible education service entity. Any delay in
payments or default on the part of an eligible education service
entity does not in any manner affect the education service entity
deposit agreement between the eligible lending institution and the
State Treasurer.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 92.10 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The maximum loan amount that may be linked to deposits
authorized by this act shall not exceed One Million Dollars
($1,000,000.00).
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B. The maximum term of a loan that may be linked to deposits
authorized by this act shall not exceed ten (10) years, but a loan
may be extended by mutual agreement between the lender and the
borrower for a period of not to exceed five (5) years.
SECTION 11. This act shall become effective November 1, 2026.
ENR. H. B. NO. 1590 Page 9
Passed the House of Representatives the 11th day of March, 2026.
Presiding Officer of the House
of Representatives
Passed the Senate the 29th day of April, 2026.
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: _________________________________