Enabling Legislation

Enabling Legislation

Enabling Legislation

§63-3201. Short title.

This act shall be known and may be cited as the “University Hospitals Authority Act”.

Added by Laws 1993, c. 330, § 1, eff. July 1, 1993.

§63-3202. Definitions.

As used in the University Hospitals Authority Act:

1.  “University Hospitals” include the Oklahoma Memorial Hospital, which shall be renamed University Hospital; the Children’s Hospital of Oklahoma; the Child Study Center; and the O’Donoghue Rehabilitation Institute;

2.  “Authority” means the University Hospitals Authority;

3.  “Department” means the Department of Human Services; and

4.  “Commission” means the Commission for Human Services or the Oklahoma Public Welfare Commission.

Added by Laws 1993, c. 330, § 2, emerg. eff. June 8, 1993.

§63-3203. Purposes - Legislative findings - Continued subsidized indigent health care - Powers of Board of Regents of University of Oklahoma.

A.  The purposes of the University Hospitals Authority Act are to provide for an effective and efficient administration, to ensure a dependable source of funding, and to effectuate the mission and purposes of the University Hospitals Authority.  The mission and purposes of the University Hospitals are to serve as general hospitals, to serve as teaching and training facilities for students enrolled at the University of Oklahoma, to serve as a site for conducting medical and biomedical research by faculty members of the University of Oklahoma Health Sciences Center and to provide care for the medically indigent.  The University Hospitals shall maintain a close affiliation with the University of Oklahoma Health Sciences Center and shall coordinate their operations and activities in a cooperative manner.  In addition, the University Hospitals Authority shall provide indigent and nonindigent patient care, as more fully described herein.

B.  The Legislature finds that the needs of the citizens of this state and the needs of the University of Oklahoma Health Sciences Center will be best served if the University Hospitals are operated by a separate Authority charged with the mission of operating or leasing the operations of the teaching hospitals for the benefit of the colleges of the University of Oklahoma Health Sciences Center and providing care for the medically indigent.

C.  The University Hospitals Authority, by receiving the assets and operating obligations, shall ensure that the costs of delivering medically indigent care continue to be subsidized in excess of the state reimbursement for the medically indigent, consistent with the teaching hospitals’ past policy and performance and that of the University of Oklahoma Health Sciences Center.  The Authority shall make or cause to be made every reasonable effort to continue the hospitals’ historic commitment to the provision of uncompensated care and that the allocation and investment of resources shall be made with a view to maximizing the hospitals’ long-term ability to provide uncompensated care, except as may be modified by changes in federal or state law.  The University Hospitals Authority shall ensure that indigent care provided by the Oklahoma Medical Center during a fiscal year shall be equal to or exceed one hundred twenty percent (120%) of the annual appropriation to the University Hospitals Authority for indigent care.  The level of indigent care provided shall be based on Medicare costs as determined by the most recent report filed by any operating entity of the University Hospitals with the federal Health Care Finance Administration.

D.  As used in this section, “indigent care” means charity care, Medicaid contractual allowances, all debt arising from accounts for which there is no third-party coverage including services provided to the Department of Corrections and Department of Mental Health and Substance Abuse Services as otherwise required by law.  For purposes of this subsection, third-party coverage shall not include Medicaid coverage.

E.  The Board of Regents of the University of Oklahoma shall retain full power to govern the personnel, curriculum and facilities of the University of Oklahoma.

Added by Laws 1993, c. 330, § 3, emerg. eff. June 8, 1993.  Amended by Laws 1995, c. 263, § 1; Laws 1997, c. 174, § 1, emerg. eff. May 8, 1997; Laws 2000, 1st Ex.Sess., c. 8, § 11, eff. July 1, 2000; Laws 2002, c. 384, § 3, emerg. eff. June 4, 2002.

§63-3204. University Hospitals - Transfer of jurisdiction, supervision, management and control.

A.  Until July 1, 1993, the University Hospitals shall be under the jurisdiction, supervision, management and control of the Department of Human Services and the Commission for Human Services.

B.  Effective July 1, 1993, the University Hospitals are hereby transferred from the Department of Human Services and the Commission for Human Services to the University Hospitals Authority.

C.  The transfer shall include:

1.  All powers, duties, responsibilities, properties, assets, fund balances, encumbrances, obligations, records, personnel and liabilities, including, but not limited to, liability for all University Hospital employees’ sick leave, annual leave, holidays, unemployment benefits and workers’ compensation benefits accruing to employees prior to July 1, 1993, which are attributable to the University Hospitals; provided, however, that any claims arising under the Governmental Tort Claims Act and filed prior to July 1, 1993, and from any other actions filed prior to July 1, 1993, shall remain the responsibility of the Department of Human Services and the Commission for Human Services.  All claims arising prior to July 1, 1993 and for which no action has been filed shall be paid by the Risk Management Program;

2.  The attorney employed by the Department of Human Services who provides legal representation for the University Hospitals Authority facilities.  The Authority shall make such attorney available, at the request of the Department, for purposes of resolving and terminating any claims arising from alleged medical malpractice and other actions filed prior to July 1, 1993.  The Authority and the Department of Human Services shall enter into an interagency agreement for the purpose of assisting the Department in resolving claims and other actions;

3.  Children’s Hospital of Oklahoma and all buildings and appurtenances located on land which is described as follows:  Blocks B, 3, 4, 12 and 13, and the North 30 feet of Block 14; and Lots 6 through 15, Block 21, CULBERTSON HEIGHTS ADDITION less and except the West 7 feet of Lot 5 and all of Lots 6 through 19, and the East 5 feet of Lot 20 and the North 59.5 feet of Lots 21 through 26, and the North 59.5 feet of the West 49.5 feet of Lot 27, all in Block 13, CULBERTSON HEIGHTS ADDITION to the City of Oklahoma City, Oklahoma, and also less and except the West 106 feet of the vacated Northeast 12th Street abutting said Block 13; and a part of Block 20, CULBERTSON HEIGHTS ADDITION and a part of the alleys adjacent thereto, and a part of the SW 1/4, Section 26, T12N, R3W, I.M., and a part of the SE 1/4, Sec. 27, T12N, R3W, I.M., Oklahoma County, Oklahoma, and a part of vacated Kelley Avenue adjacent thereto, more particularly described as follows:  Commencing at the NE corner of Block 20, CULBERTSON HEIGHTS ADDITION, Oklahoma City, Oklahoma, thence S. 0 degrees 03′ 34″ E. and along the East line of said Block 20 and along the West Right-of-Way line of Stonewall Avenue a distance of 10 ft. to the point or place of beginning; thence continuing S. 0 degrees 03′ 34″ E. and along the East line of said Block 20 and along the West Right-of-Way line of Stonewall Avenue a distance of 341.27 ft., thence N. 89 degrees 54′ 35″ W. a distance of 520.10 ft., thence N. 0 degrees 11′ 08″ E. a distance of 18.0 ft.; thence N. 89 degrees 48′ 52″ W. a distance of 12.0 ft.; thence N. 0 degrees 11′ 08″ E. a distance of 6 ft.; thence N. 89 degrees 48′ 52″ W. a distance of 21.5 ft., thence N. 0 degrees 11′ 08″ E. a distance of 22.5 ft., thence N. 89 degrees 48′ 52″ W. a distance of 286.5 ft., thence N. 89 degrees 48′ 52″ W. a distance of 27.00 feet; thence N. 0 degrees 12′ 03″ E. a distance of 72.50 feet; thence N. 89 degrees 48′ 51″ W. a distance of 25.65 feet; thence N. 23 degrees 29′ 12″ W. a distance of 250.50 feet to a point on the South Right-of-Way line of N.E. 13th Street; thence S. 89 degrees 48′ 51″ E. and along the South Right-of-Way line of N.E. 13th Street a distance of 649.76 feet; to a point in the East line of said SE 1/4 of Section 27, T12N, R3W, thence S. 0 degrees 06′ 23″ W. along the East line of said Section 27, a distance of 10.0 ft., thence N. 89 degrees 33′ 42″ E. and parallel to and 10 ft., South of the North line of said Block 20 of said CULBERTSON HEIGHTS ADDITION a distance of 342.10 ft. to the point or place of beginning; and

4. a. Oklahoma Memorial Hospital and all buildings and appurtenances located on land which is described as follows:  A part of the South Half of the Southeast Quarter of Section 27, T12N, R3W of the Indian Meridian AND a part of the North Half of the Northeast Quarter of Section 34, T12N, R3W, of the Indian Meridian, all in Oklahoma County, Oklahoma, more particularly described as follows:  Beginning at the Southwest corner of Block 13, HOWE’S CAPITOL ADDITION; thence N. 0 degrees 10′ 36″ E. along the East line of Phillips Avenue a distance of 674.64 feet to a point on the South line of Northeast 13th Street; thence S. 89 degrees 48′ 51″ E. along the South line of said Northeast 13th Street a distance of 620.30 feet; thence S. 23 degrees 29′ 12″ E. a distance of 250.50 feet; thence S. 89 degrees 48′ 51″ E. a distance of 25.65 feet; thence S. 0 degrees 12′ 03″ W. a distance of 72.50 feet; thence S. 89 degrees 48′ 51″ E. a distance of 27.00 feet; thence S. 00 degrees 12′ 03″ W. a distance of 443.57 feet; thence S. 89 degrees 43′ 03″ E. a distance of 32.95 feet; thence S. 00 degrees 14′ 28″ W. along the East line of a retaining wall a distance of 733.66 feet to a point on the South line of Block 1 of OAK PARK ADDITION; thence S. 89 degrees 52′ 55″ W. along the South line of Blocks 1 and 7 of OAK PARK ADDITION a distance of 810.11 feet to the Southwest corner of said Block 7; thence N. 00 degrees 10′ 36″ E. along the West line of said Block 7, OAK PARK ADDITION a distance of 213.87 feet; thence N. 89 degrees 49′ 24″ W. a distance of 3.40 feet; thence N. 00 degrees 10′ 36″ E. along the West line of Block 24, HOWE’S CAPITOL ADDITION a distance of 190.00 feet; thence S. 89 degrees 49′ 24″ E. a distance of 8.10 feet; thence N. 00 degrees 10′ 36″ E. along the West line of Block 18, HOWE’S CAPITOL ADDITION a distance of 405.00 feet to the Point of Beginning and containing 1,146,572 Square Feet or 26.32 Acres more or less;

b. That portion of the property described in subparagraph a known as the Research Building shall be transferred to the Authority, but shall be leased to the University of Oklahoma for a term of not less than forty (40) years from the date thereof; and

c. All of Blocks 1 and 2 of Culbertson Heights Addition, and all of Block 3 and Lots 3 through 20 and the North 50 feet of Lots 21 through 38 of Block 12, Oak Park Addition to the City of Oklahoma City, Oklahoma, including the encompassed and abutting portions of the vacated Northeast 11th Street, Park Place and Northeast 10th Street, and the abutting portion of Everest Avenue and the alley way in Block 12 of the said Oak Park Addition.

D.  Properties to be retained by the Department of Human Services include:

1.  The Service Center Building and land located on:  The South 100 feet of Block 12 and all of Block 17, Oak Park Addition to the City of Oklahoma City, Oklahoma, including the encompassed or abutting portions of vacated Everest Avenue and Northeast 9th Street.  (219,300 sq. ft., 5.03 acres); and

2.  The Management Information Division Building and land located on:  The West 7 feet of Lot 5 and all of Lots 6 through 19, and the East 5 feet of Lot 20 and the North 59.5 feet of Lots 21 through 26, and the North 59.5 feet of the West 49.5 feet of Lot 27, all in Block 13, Culbertson Heights Addition to the City of Oklahoma City, Oklahoma, and also including the West 106 feet of the vacated Northeast 12th Street abutting said Block 13.  (82,199 sq. ft., 1.89 acres).

E.  Appropriate conveyances shall be executed to effectuate the transfers specified by subsections B, C and D of this section.

Added by Laws 1993, c. 330, § 4, emerg. eff. June 8, 1993.

§63-3205. University Hospitals - Certificate of Need - Operation and licensing - Service and receiving payments - Teaching and training.

A.  The transfer of the University Hospitals from the Commission for Human Services and the Department of Human Services shall not require a Certificate of Need pursuant to the provisions of Sections 2651 through 2656.2 of Title 63 of the Oklahoma Statutes; provided, however, that any expansion or change to the University Hospitals requiring a Certificate of Need after such transfer shall be subject to the provisions of Sections 2651 through 2656.2 of Title 63 of the Oklahoma Statutes.

B.  1.  University Hospitals shall be operated as general hospitals and shall be licensed by the State Commissioner of Health, and shall, as far as possible, meet the standards, requirements and essentials of the Joint Commission on Accreditation of Health Care Organizations, the American Medical Association’s Council on Medical Education, the American Specialty Boards and the Association of American Medical Colleges.

2.  The University Hospitals may provide services and receive payments therefor under Titles XVIII and XIX of the federal Social Security Act, and may participate in other federal medical programs.

3.  University Hospitals shall be available as teaching and training hospitals for the colleges of the University of Oklahoma Health Sciences Center, for the College of Medicine of the University of Oklahoma, for other health and educational facilities and shall provide indigent patient care.

Added by Laws 1993, c. 330, § 5, eff. July 1, 1993.

§63-3206. Children's Hospital - General hospital and service institution for certain persons.

Children’s Hospital of Oklahoma shall serve as a general hospital and service institution for persons under twenty-one (21) years of age and shall have the authority to extend transplant services to persons twenty-one (21) years or older.

Added by Laws 1993, c. 330, § 6, eff. July 1, 1993.

§63-3207. University Hospitals Authority - Creation - Powers and authority - Status - Membership - Terms of office - Qualifications - Removal of member - Vacancies - Compensation and expenses - Quorum - Other laws.

A.  There is hereby created the University Hospitals Authority, an agency of the State of Oklahoma, a body corporate and politic, with powers of government and with the authority to exercise the rights, privileges and functions as specified in the University Hospitals Authority Act.  The University Hospitals Authority is an agency of the State of Oklahoma covered by the Governmental Tort Claims Act.

B.  The Authority shall consist of six (6) members as follows:

1.  One member shall be appointed by the Governor, with the advice and consent of the Senate;

2.  One member shall be appointed by the President Pro Tempore of the Senate;

3.  One member shall be appointed by the Speaker of the House of Representatives;

4.  One member shall be the Director for Human Services or the director of the successor organization responsible for Medicaid, or his or her designee;

5.  One member shall be the Provost of the University of Oklahoma Health Sciences Center; and

6.  The Chief Executive Officer of the University Hospitals Authority who shall be an ex officio, nonvoting member.

C.  All members shall be appointed by June 1, 1993.  Of the members of the Authority initially appointed, the member appointed by the President Pro Tempore of the Senate shall serve a term of one (1) year; the member appointed by the Speaker of the House of Representatives shall serve a term of two (2) years; and the member appointed by the Governor shall serve a term of three (3) years.  Successors shall be appointed for terms of three (3) years.

D.  Each member of the Authority, prior to appointment, shall be a resident of the state and a qualified elector.

E.  Members shall be removable only for cause by the appointing authority.  Any vacancy occurring on the Authority shall be filled by the original appointing authority.

F.  The members of the Authority shall serve without compensation but may be reimbursed for all actual and necessary travel expenses incurred in performance of their duties in accordance with the provisions of the State Travel Reimbursement Act, Section 500.1 et seq. of Title 74 of the Oklahoma Statutes.

G.  All members of the Authority and administrative personnel of the Authority shall be subject to the provisions of the Oklahoma Ethics Commission Act, Section 4200 et seq. of Title 74 of the Oklahoma Statutes.

H.  A quorum of the Authority shall be three (3) voting members.  Members shall elect a chair and vice chair for the Authority from among its members.  The chair must be an appointed member of the Authority.

I.  The Authority shall be subject to the Open Meeting Act, Section 301 et seq. of Title 25 of the Oklahoma Statutes, and the Open Records Act, Section 24A.1 et seq. of Title 51 of the Oklahoma Statutes, except as otherwise provided by this act.  Any information submitted to or compiled by the Authority except for budgetary information related to appropriations or the appropriations process with respect to the marketing plans, financial statements, trade secrets, research concepts, methods or products, or any other proprietary information of the Authority, persons, firms, associations, partnerships, agencies, corporations, institutions of higher education, nonprofit research institutions or other entities shall be confidential, except to the extent that the person or entity which provided such information or which is the subject of such information consents to disclosure.  Executive sessions may be held to discuss such materials if deemed necessary by the Authority.

Added by Laws 1993, c. 330, § 7, emerg. eff. June 8, 1993.  Amended by Laws 1994, c. 283, § 5, eff. Sept. 1, 1994; Laws 1997, c. 174, § 2, emerg. eff. May 8, 1997.

§63-3208. University Hospitals Authority - Powers and duties.

A.  On and after June 1, 1993, and until July 1, 1993, in order to effectuate the transfer of the University Hospitals from the Commission for Human Services and the Department of Human Services to the University Hospitals Authority, the Authority shall have the powers and duties to:

1.  Adopt bylaws and promulgate rules for the regulation of its affairs and the conduct of its business;

2.  Adopt an official seal;

3.  Maintain an office at the University Hospitals;

4.  Make and enter into all contracts necessary or incidental to the performance of its duties and the execution of its powers pursuant to the University Hospitals Authority Act;

5.  Appoint such officers, agents and employees, including but not limited to attorneys, as it deems necessary to implement the provisions of this subsection to prescribe their duties and to fix their compensation; and

6.  Establish petty cash funds and provide for appropriate accounting procedures and controls.

B.  On and after July 1, 1993, the Authority shall have the power and duty to:

1.  Adopt bylaws and promulgate rules for the regulation of its affairs and the conduct of its business;

2.  Adopt an official seal;

3.  Maintain an office at the University Hospitals;

4.  Sue and be sued, subject to the provisions of The Governmental Tort Claims Act;

5.  Establish rates of payment for hospital and clinical services, which shall provide for exceptions and adjustments in cases where the recipients of services are unable to pay and for whom no third party source of payment is available, and to establish different rates of payment for indigent and nonindigent care;

6.  Enter into cooperative agreements with the Board of Regents of the University of Oklahoma for educational programs, professional staffing, research and other medical activities;

7.  Make and enter into all contracts necessary or incidental to the performance of its duties and the execution of its powers pursuant to the University Hospitals Authority Act;

8.  Purchase or lease equipment, furniture, materials and supplies, and incur such other expenses as may be necessary to maintain and operate the hospitals or clinics, or to discharge its duties and responsibilities or to make any of its powers effective;

9.  Acquire by purchase, lease, gift, or by any other manner, and to maintain, use and operate or to contract for the maintenance, use and operation of or lease of any and all property of any kind, real, personal, or mixed or any interest therein unless otherwise provided by the University Hospitals Authority Act;

10.  Appoint such officers, agents and employees, including but not limited to attorneys, as it deems necessary to operate and maintain the University Hospitals and to prescribe their duties and to fix their compensation.  The Authority shall employ and fix the duties and compensation of an administrator of the hospitals.

11.  Accept grants from the United States of America, or from any corporation or agency created or designed by the United States of America, and, in connection with any such grant, to enter into such agreements as the United States of America or such corporation or agency may require;

12.  Make and issue bonds and to pledge revenues of the Authority subject to the Oklahoma Bond Oversight and Reform Act.  Nothing in the University Hospitals Authority Act shall authorize the issuance of any bonds of the Authority payable other than from revenues of the University Hospitals.  Funds appropriated to the University Hospitals shall not be used for issuance of bonds.  Authority revenue bonds issued under the provisions of this act shall not at any time be deemed to constitute a debt of the state or of any political subdivision thereof or a pledge of the faith and credit of the state or of any political subdivision, but such bonds shall be payable solely from the funds herein provided.  Such revenue bonds shall contain on the face thereof a statement to the effect that neither the state nor the Authority shall be obligated to pay the same or the interest thereon except from the revenues of the project or projects for which they are issued and that neither the faith and credit nor the taxing power of the state or any political subdivision thereof is pledged, or may hereafter be pledged, to the payment of the principal of or the interest on such bonds.  The maximum amount of outstanding bonds at any time shall not exceed Fifty Million Dollars ($50,000,000.00) unless a greater amount is expressly approved by the Legislature by a concurrent resolution adopted prior to commencing any action in anticipation of issuance of revenue bonds of the University Hospitals Authority for the greater amount;

13.  Provide for complete financial audits on all accounts of the University Hospitals Authority and to authorize periodic audits by an independent external auditing agency.  Such audits to be performed annually in a format approved by the State Auditor and Inspector and all such audits shall be submitted to the State Auditor and Inspector for review.  Such audits shall be made in accordance with generally accepted auditing standards and government auditing standards.  Financial statements shall be prepared in accordance with generally accepted accounting principals.  In addition to said audits, the State Auditor and Inspector, whenever he deems it appropriate, and at least once each five (5) years, or upon receipt of a request to do so from the Governor, the Attorney General, the President Pro Tempore of the Senate, the Speaker of the House of Representatives or the Authority shall conduct a special audit of the Authority and the University Hospitals;

14.  Engage in long-term planning for the operation and management of the University Hospitals;

15.  Establish petty cash funds and provide for appropriate accounting procedures and controls;

16.  Contract with national manufacturers and distributors of drugs and medical supplies when appropriate to carry out the purposes of this act;

17.  Do all other things necessary and proper to implement the provisions of the University Hospitals Authority Act;

18.  Waive, by such means as the Authority deems appropriate, the exemption from federal income taxation of interest on the Authority’s bonds provided by the Internal Revenue Code of 1986, as amended, or any other federal statute providing a similar exemption; and

19.  Arrange for guaranties or insurance of its bonds by the federal government or by any private insurer, and to pay any premiums therefor.

C.  The University Hospitals Authority and the University Hospitals shall be subject to the Oklahoma State Finance Act, Section 34 et seq. of Title 62 of the Oklahoma Statutes.

D.  The Authority shall prepare monthly a “budget vs. actual” report which shows by budget activity the monthly and year-to-date revenues and expenditures compared to budgeted revenues and expenditures.  Such report shall be submitted to the Office of Management and Enterprise Services and to the Directors of the House of Representatives Fiscal Division and the Senate Fiscal Division.

E.  The Authority shall be subject to the professional risk management program provided for in Section 85.58A of Title 74 of the Oklahoma Statutes.

F.  The Department of Human Services Institutional Maintenance and Construction Unit and the Architecture and Engineering Planning Unit should be given first priority to be vendor for the University Hospitals Authority for construction and remodeling projects which fall within their scope of services.  The Authority may enter into contracts for construction and remodeling projects with another contractor only after compliance with all other applicable statutes and after making a specific finding that another contractor is more competitive.

G.  The Authority shall continue to provide space, utilities and janitorial services to the Department of Human Services Institutional Maintenance and Construction Architecture and Engineering Planning Unit.

 

Added by Laws 1993, c. 330, § 8, emerg. eff. June 8, 1993.  Amended by Laws 2012, c. 304, § 513.

§63-3209. Determination of criteria and standards for medicaid recipients and indigents - Medicaid eligibility office staff.

The Department of Human Services or the successor agency responsible for Medicaid shall continue to determine eligibility criteria and standards for Medicaid recipients and indigents and continue to staff a Medicaid eligibility office at the University Hospitals.

Added by Laws 1993, c. 330, § 9, eff. July 1, 1993.

§63-3210. University Hospitals - Authority - Agreements and undertakings.

A.  Effective July 1, 1993, the University Hospitals, subject to the direction of the University Hospitals Authority, shall have the authority to:

1.  Enter into agreements and cooperative ventures with other health care providers to share services or to provide a benefit to the hospitals;

2.  Make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers pursuant to the University Hospitals Authority Act;

3.  Join or sponsor membership in organizations or associations intended to benefit the hospitals;

4.  Have members of its governing body or its officers or administrators serve without pay as directors or officers of any organization, association or cooperative ventures authorized pursuant to the University Hospitals Authority Act; and

5.  Offer, directly or indirectly, products and services of the hospitals, any cooperative venture or organization to the general public.

B.  All agreements and obligations undertaken, as permitted under this section, by the University Hospitals Authority shall be for a public purpose.  In addition to any other limitations, conditions or restrictions provided by law, the following conditions shall apply to contractual agreements entered into pursuant to this section:

1.  Private and public funds shall be accounted for separately; and

2.  The state does not assume any liability for private entities.

Added by Laws 1993, c. 330, § 10, emerg. eff. June 8, 1993.

§63-3211. Employees of University Hospitals - Systems, classes and procedures.

A.  Employees of the University Hospitals who are in the classified service of the State Merit System of Personnel Administration on June 30, 1993, shall be transferred to the University Hospitals Authority without change or loss of pay, seniority, rights, privileges or benefits.

B.  Employees of the University Hospitals who are in the unclassified service of the State Merit System of Personnel Administration on June 30, 1993, shall be transferred to the Authority without change or loss of pay, seniority, rights, privileges or benefits.

C.  By January 1, 1995, all employees of the Authority shall be required to elect whether to remain in their present classification pursuant to the Oklahoma Personnel Act or transfer to the University Hospitals Authority Model Personnel System established pursuant to subsection E of this section.  Any employee who elected not to transfer to the University Hospitals Authority Model Personnel System pursuant to this subsection may elect to transfer to the personnel system at any time as prescribed by the Authority.

D.  All new employees hired by the University Hospitals or the Authority and all positions vacated by classified employees of the University Hospitals and/or the Authority after June 30, 1993, shall be in the personnel system established pursuant to subsection E of this section.

E.  Except as otherwise provided in Section 3213.2 of this title, the Authority shall develop, maintain or revise unclassified personnel systems, classes or procedures which are necessary for accommodating or responding to its human resource needs.  Such authority includes recruitment, position classifications, qualifications, selection criteria, search and selection procedures, use of consultants, salaries, benefits, retirement plans, leave benefits and personnel administration.  Such systems, classes or procedures shall require consultation with the Director of the Office of Management and Enterprise Services.

F.  Employees of the University Hospitals Authority who are members of the University Hospitals Authority Model Personnel System who become subject to the classified or unclassified service of state government shall be eligible to transfer any unused leave balances.  Unused paid-time-off leave shall be converted to annual leave.  Unused extended illness leave shall be converted to sick leave.  Such transfer of leave shall be subject to accumulation limits pursuant to Section 840-2.20 of Title 74 of the Oklahoma Statutes.

Added by Laws 1993, c. 330, § 11, eff. July 1, 1993.  Amended by Laws 1994, c. 283, § 9, eff. Sept. 1, 1994; Laws 1995, c. 263, § 2; Laws 1996, c. 321, § 3, emerg. eff. June 12, 1996; Laws 2012, c. 304, § 514.

§63-3212. University Hospitals Authority Personnel Task Force.

A.  There is hereby created the University Hospitals Authority Personnel Task Force.  The Task Force shall consist of the following members:

1.  The Director of Personnel for the University Hospitals who shall serve as chair;

2.  The Affirmative Action Officer for the University Hospitals;

3.  The Director of the Office of Management and Enterprise Services or a designee;

4.  Two employees of the University Hospitals appointed by the Chief Executive Officer of the University Hospitals, one who shall be a health care professional and one who shall not be a health care professional; and

5.  The Executive Director of the Oklahoma Public Employees Association or a designee.

B.  The Task Force shall annually select a vice-chair from its membership.

C.  The Task Force shall annually give advice and make recommendations to the Authority regarding all aspects of personnel matters including, but not limited to:

1.  Development of clear mission and goal statements;

2.  Involvement of managers and employees in the identification of ways to improve organizational effectiveness;

3.  Participation of employees in the development of personnel policies and procedures;

4.  Assessment of agency effectiveness and progress toward goals with emphasis on productivity, quality of services, innovation and economical use of resources;

5.  Affirmative action programs to ensure workforce diversity and equal employment opportunity;

6.  Creation, modification, and elimination of positions;

7.  Employee disciplinary procedures with emphasis on timely resolution of personnel disputes at the lowest possible level; and

8.  Management and employee development programs.

D.  The Authority may delegate additional responsibilities to the Task Force.

E.  The Task Force shall assist the Authority in the preparation and implementation of an annual human resource management plan and evaluation report which shall be submitted to the Governor, the Speaker of the House of Representatives and the President Pro Tempore of the Senate by November 1 of each year.

Added by Laws 1993, c. 330, § 12, eff. July 1, 1993.  Amended by Laws 2012, c. 304, § 515.

§63-3213. Employees of University Hospitals Authority - Retirement systems.

All employees of the University Hospitals Authority shall be members of the Oklahoma Public Employees Retirement System or the Teachers’ Retirement System of Oklahoma as appropriate.

Added by Laws 1993, c. 330, § 13, eff. July 1, 1993.

§63-3214. Investments of funds - University Hospitals Authority Agency Special Account - Blanket bond coverage.

A.  The funds deposited in the Agency Special Account as created in subsection B of this section shall be invested by the State Treasurer in the manner provided for by law.  The return on such investments shall be credited to the accounts of the Authority.

B.  There is hereby created in the State Treasury an Official Depository Account for the University Hospitals Authority, to be designated the University Hospitals Authority Agency Special Account.  The Official Depository Account shall consist of an agency clearing account and an agency special account.  All revenues, except federal entitlements and state appropriations, generated by the University Hospitals Authority shall be deposited in these accounts.

C.  The Authority shall be subject to blanket bond coverage as provided in Sections 85.26 through 85.31 of Title 74 of the Oklahoma Statutes, provided the Authority shall be authorized to purchase increased amounts of fidelity bond coverage for those employees deemed necessary by the Authority.  When the amount listed in Section 85.29 of Title 74 of the Oklahoma Statutes is deemed inadequate, the cost of increased coverage shall be borne by the Authority.

Added by Laws 1993, c. 330, § 14, eff. July 1, 1993.

§63-3215. Issuance of bonds - Resolution - Amount - Principal and interest - Credit enhancement - Form - Execution - Denominations - Place of payment - Signatures - Qualities and incidences - Manner of sale - Fees and expenses - Interim receipts or temporary bonds - Replacement bonds - Consent of issue - Refunding bonds.

A.  Subject to the provisions of paragraph 12 of subsection B of Section 8 of this act, the University Hospitals Authority may provide by resolution, from time to time, for the issuance of revenue bonds for its lawful purposes, in such amount or amounts as are necessary, incidental or convenient to the exercise of powers, rights, privileges and functions conferred upon it by the University Hospitals Authority Act or other law.  The principal of and interest on any indebtedness shall be payable solely from the revenues of the Authority and such other funds as may be provided by law for such payment.  The Authority may provide for credit enhancement as additional security or liquidity for its bonds and enter into such agreements as may be necessary or appropriate to provide for the repayment of any funds advanced by the provider of any such credit enhancement including the payment of any fees and expenses incurred in connection therewith.  The bonds of each issue shall bear interest at fixed or variable rates and shall bear an average interest rate not to exceed eleven percent (11%) per annum, shall mature at such time or times not exceeding thirty (30) years from their date or dates of issue, as may be determined by the Authority, and may be made redeemable before maturity at the option of the Authority, at such time or times and at such price or prices and pursuant to such terms and conditions as may be fixed by the Authority prior to the issuance of the bonds.  The Authority shall determine the form of the bonds and the manner of execution thereof, and shall fix the denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank and trust company within or without this state.  If any officer whose signature or facsimile of whose signature appears on any bonds shall cease to be said officer before the delivery of the bonds, the signature or the facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the person had remained in office until such delivery.  All bonds issued pursuant to the provisions of the University Hospitals Authority Act shall have all the qualities and incidences of negotiable instruments subject to the laws of this state.  The Authority may sell the bonds in such amounts and in such manner, either at public or private sale, and for such price, as it may determine to be in the best interests of the state.  If the bonds are not sold by competitive bid, the sale must be approved by the State Bond Advisor.

B.  All fees and expenses of bond sales must be approved by the State Bond Advisor and the Bond Oversight Commission.  Prior to the preparation of definitive bonds, the Authority, subject to like restrictions, may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds which have been executed and are available for delivery.  The Authority may also provide for the replacement of any bonds which have become mutilated or which have been destroyed or lost.  Except as otherwise provided by Section 19 of this act, bonds may be issued pursuant to the provisions of the University Hospitals Authority Act without obtaining the consent of any department, division, commission, board, bureau, or agency of this state, and without any other proceedings or the occurrence of any other conditions or things than those proceedings, conditions, or things that are specifically required by the University Hospitals Authority.

C.  The Authority may, by resolution, provide for the issuance of refunding bonds then outstanding, including the payment of any redemption premium, any interest accrued to the date of redemption of such bonds, and for incurring additional indebtedness for its lawful purposes.  The issuance of such bonds shall be governed by the provisions of the University Hospitals Authority Act.

Added by Laws 1993, c. 330, § 15, eff. July 1, 1993.

§63-3216. Issuance of bonds - Approval of Attorney General.

Before any bond shall be issued and delivered by the University Hospitals Authority, a certified copy of the proceedings for the issuance thereof, together with any other information which the Attorney General of the State of Oklahoma may require as the Bond Commissioner of the State of Oklahoma, shall be submitted to the Attorney General.  If the Attorney General shall find that such bonds have been issued in accordance with law, he shall approve such bonds and execute a certificate to that effect.  The Attorney General shall file such certificates in the office of the State Auditor and Inspector, and the certificates shall be recorded in a record kept for that purpose.  All bonds approved by the Attorney General, and issued in accordance with the approved proceedings, shall be valid and binding obligations of the Authority and shall be incontestable for any course from and after the date of such approval.

Added by Laws 1993, c. 330, § 16, eff. July 1, 1993.

§63-3217. Issuance of bonds - Approval of Supreme Court.

The University Hospitals Authority or the University Hospitals Trust may file an application with the Supreme Court of the State of Oklahoma for approval of any bonds to be issued under the provisions of the University Hospitals Authority Act, and exclusive original jurisdiction is hereby conferred upon the Supreme Court to hear and determine such application.  The Supreme Court shall give such applications precedence over the other business of the Court and consider and determine the validity of the bonds and consider the application and any protest which may be filed thereto.  Notice of the hearing on each application shall be given by notice published in a newspaper of general circulation in this state that on a day named the Authority or the Trust will ask the Court to hear the application and approve the bonds.  Such notice shall inform all interested parties that they may file a protest against the issuance of the bonds, may be present at the hearing, and may contest the legality thereof.  Such notice shall be published one time, not less than ten (10) days prior to the date named for the hearing and the hearing may be adjourned from time to time in the discretion of the Court.  If the Court is satisfied that the bonds have been properly authorized in accordance with the University Hospitals Authority Act, and that when issued such bonds will constitute valid obligations in accordance with their terms, the Court shall render its written opinion approving the bonds and shall fix the time within which the petition for rehearing may be filed.  The decision of the Court shall be a judicial determination of the validity of the bonds, shall be conclusive as to the Authority or the Trust, its officers and agents, and thereafter the bonds so approved and the revenues pledged to their payment shall be incontestable in any court in the State of Oklahoma.

Added by Laws 1993, c. 330, § 17, eff. July 1, 1993.  Amended by Laws 1997, c. 174, § 3, emerg. eff. May 8, 1997.

§63-3218. Bonds not to be debt of state or political subdivision - Statement on bonds - Tax exemption.

Revenue bonds of the University Hospitals Authority issued pursuant to the provisions of the University Hospitals Authority shall not constitute a debt of the state or of any political subdivision thereof, or a pledge of the full faith and credit of the state, or of any political subdivision thereof, but such bonds shall be payable solely from the funds provided therefor.  The forms of the bonds so issued shall contain on the face thereof a statement to the effect that neither the state nor the Authority shall be obligated to pay the same or the interest thereon except from the revenues of the Authority pledged to the payment of such bonds and that neither the faith and credit nor the taxing power of the state or any political subdivision thereof is pledged, or may hereafter be pledged, to the payment of the principal of or interest on such bonds.  The bonds so issued shall be exempt from taxation by the State of Oklahoma and any political subdivision thereof, including the income therefrom, and any gain from the sale thereof.

Added by laws 1993, c. 330, § 18, eff. July 1, 1993.

§63-3219. Investment in bonds issued pursuant to this act - Use as collateral security.

Bonds issued pursuant to provisions of the University Hospitals Authority Act are hereby made securities in which all public officers and public boards, agencies and instrumentalities of the state and its political subdivisions, all banks, trust companies, trust and loan associations, investment companies, and others carrying on a banking business, and all insurance companies and insurance associations, and others carrying on an insurance business, may legally and properly invest.  Such bonds are also approved as collateral security for the deposit of any public funds and for the investment of trust funds.

Added by Laws 1993, c. 330, § 19, eff. July 1, 1993.

§63-3220. University Hospitals Authority - Annual report to Governor and Legislature.

The University Hospitals Authority shall submit an annual report to the Governor, the President Pro Tempore of the Senate and the Speaker of the House of Representatives.  Such report shall be submitted in accordance with the requirements for financial statement audits in Section 212A of Title 74 of the Oklahoma Statutes, and shall include an account of the operations and actions of the Authority and an accounting of all revenue received and disbursed by the Authority for the previous fiscal year.  The report shall include an accounting of expenses related to each of the following:

1.  Education and training of students of the University of Oklahoma, resident physicians and others;

2.  Care and treatment of indigents for whom the Authority receives any form of state or federal reimbursement; and

3.  Research.

Added by Laws 1993, c. 330, § 20, eff. July 1, 1993.  Amended by Laws 1996, c. 290, § 10, eff. July 1, 1996.

§63-3221. University Hospitals Authority Disbursing Fund.

A.  There is hereby created in the State Treasury a revolving fund for the University Hospitals Authority, to be designated the “University Hospitals Authority Disbursing Fund”.  The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of appropriated revenues and federal entitlements.  All monies accruing to the credit of said fund are hereby appropriated and may be budgeted and expended by the University Hospitals Authority.

B.  Following the execution of a lease of real properties under the jurisdiction of the University Hospitals Authority to the University Hospitals Trust pursuant to Section 3226 of this title, monies from the fund may be expended by the Authority for the fiscal year ending June 30, 1998, for the operations of the Authority after the execution of the lease to the University Hospitals Trust for payment of any costs to the Authority associated with the transfer of operations of facilities under the jurisdiction of the Authority, and legal obligations of the Authority.  After July 1, 1998, the operation of the Authority may be funded from the interest earned by the fund.

C.  After July 1, 2010, the principal and interest earned on the fund may be expended by the Authority for the operation of the Authority and for the completion of the mission of the Authority.

D.  It is the intent of the Legislature to restore the fund to the June 30, 2010, balance in the event that the state resumes operations of any of the facilities operated by the Authority prior to a lease being executed.

Added by Laws 1993, c. 330, § 21, eff. July 1, 1993.  Amended by Laws 1996, c. 326, § 5, eff. July 1, 1996; Laws 1997, c. 287, § 16, eff. July 1, 1997; Laws 2010, c. 446, § 2.

§63-3222. Traffic and parking regulations on University Hospitals Authority property - Violations - Campus police officers and guards - Cooperative agreements.

A.  The University Hospitals Authority may regulate traffic and the parking of vehicles on property used by or for the University Hospitals Authority.  Such regulations shall be in writing, and copies thereof, including amendments thereto, shall be filed in the office of the Secretary of State, and in the office of the city clerk of the City of Oklahoma City.  The municipal court of the City of Oklahoma City shall have jurisdiction to hear and determine prosecutions for violations of such regulations, which may be prosecuted and shall be punishable as violations of ordinances of the City of Oklahoma City.  The Authority may cause to be removed, and may enter into contracts for such purpose, any vehicle parked in violation of such regulations.

B.  The Authority may appoint campus police officers and guards for buildings and grounds of the University Hospitals Authority in the same manner and with the same powers as campus police appointed by governing boards of state institutions for higher education under the provisions of Section 360.15 et seq. of Title 74 of the Oklahoma Statutes, and who may prevent or stop improper conduct and trespass in and upon such buildings and grounds, and make arrests and prosecute any and all persons arrested for such improper conduct and trespassing.  Employees of the Authority serving as police officers shall be certified as provided for in Section 3311 of Title 70 of the Oklahoma Statutes.

C.  The Authority and the City of Oklahoma City may enter into a cooperative agreement to effectuate the provisions of this section.

Added by Laws 1974, c. 4, § 1, emerg. eff. March 14, 1974.  Amended by Laws 1988, c. 326, § 25, emerg. eff. July 13, 1988; Laws 1993, c. 330, § 25, eff. July 1, 1993.  Renumbered from § 344 of Title 56 by Laws 1993, c. 330, § 31, eff. July 1, 1993.  Amended by Laws 1994, c. 283, § 2, eff. Sept. 1, 1994.

§63-3223. Resident physicians of College of Medicine of University of Oklahoma - Payroll placement, insurance, status and termination.

The University Hospitals Authority is authorized to place resident physicians of the College of Medicine of the University of Oklahoma on the University Hospitals Authority payroll, and is further authorized to acquire through the Purchasing Division of the Office of Management and Enterprise Services health, life, and dental insurance for such residents.  Such residents shall not be considered employees of the Authority and shall not be eligible to participate in the Oklahoma Public Employees Retirement System.  This section shall not preclude the right of the University Hospitals Authority to terminate, for cause, the practicing privileges of any resident physician within the University Hospitals Authority.

Added by Laws 1985, c. 181, § 182, operative July 1, 1985.  Amended by Laws 1988, c. 326, § 30, emerg. eff. July 13, 1988; Laws 1993, c. 330, § 26, eff. July 1, 1993.  Renumbered from § 521 of Title 56 by Laws 1993, c. 330, § 31, eff. July 1, 1993.  Amended by Laws 2012, c. 304, § 517.

§63-3224. University Hospitals Trust

A.  The State of Oklahoma expressly approves the creation of a public trust to be denominated the “University Hospitals Trust”, of which the State of Oklahoma shall be the beneficiary, provided such approval shall be contingent upon the following conditions being satisfied:

1.  Finalizing of the Declaration of Trust;

2.  Adoption of the Declaration of Trust by an official action of the trustees of the Trust;

3.  Submission of the Trust for acceptance of the beneficial interest and approval as required by Section 177 of Title 60 of the Oklahoma Statutes; and

4.  The approved Declaration of Trust shall:

a. clearly state that the principal purpose of the University Hospitals Trust is to effectuate the purposes of the University Hospitals Authority as established in the University Hospitals Authority Act,

b. except as otherwise provided by law, provide that the fee simple title to real property held by the University Hospitals Authority shall not be transferred, conveyed, or assigned to the University Hospitals Trust without the express consent of the Legislature as the governing entity of the beneficiary pursuant to Section 176 of Title 60 of the Oklahoma Statutes,

c. provide that any indebtedness incurred by the University Hospitals Trust or the trustees of the Trust shall not be secured with or create a lien upon real property to which title is held by the University Hospitals Authority and shall not involve the bonding capacity of the University Hospitals Authority,

d. provide that the trust estate of the University Hospitals Trust shall not include fee simple title to real property owned by the University Hospitals Authority,

e. clearly state that the creation of the University Hospitals Trust shall not in any way reduce, limit or interfere with the power granted to the University Hospitals Authority in the University Hospitals Authority Act,

f. provide that any lease or contractual agreement involving use of the real property to which title is held by the University Hospitals Authority and any improvements thereto shall contain a provision and covenants requiring the proper maintenance and upkeep of the real property and improvements,

g. provide that the trustees of the University Hospitals Trust shall be the acting members of the University Hospitals Authority as provided in the University Hospitals Authority Act, and

h. provide that the trustees of the University Hospitals Trust shall have the duty to submit an annual report to the Governor, the President Pro Tempore of the Senate and the Speaker of the House of Representatives.   The report shall be submitted by January 1 of each year and shall include an account of all operations, actions of the Trust, account of all revenue received and disbursed by the Trust for the previous fiscal year.  The report shall also provide a complete accounting of how the Trust meets its primary function of effectuating the purposes of the University Hospitals Authority, as established in the University Hospitals Authority Act.  

B.  The University Hospitals Trust shall require any agreements which it enters into with any entity pursuant to Section 3226 of this title for the operations of facilities leased by the University Hospitals Authority to the Trust to include, but not be limited to:

1.  The inclusion of four of the five members of the Trust as four of the five members representing the State of Oklahoma as state appointees to the governing committee created pursuant to a proposed agreement;

2.  Binding arbitration shall not be involved in such agreements for resolving issues under consideration by the governing committee; and

3.  Major decisions shall be resolved by the governing committee, and approval of any major decision by the governing committee must include the approval of a majority of the state appointees and the approval of a majority of the members of the private entity appointees to the governing committee.  Major decisions shall include:

a. approval of the annual operating and capital budgets,

b. sale or disposition of assets that individually have a fair market value over Two Hundred Fifty Thousand Dollars ($250,000.00),

c. the termination or transfer or material addition or material diminution of medical services at the Oklahoma Medical Center related to and part of a teaching program of the University of Oklahoma Health Sciences Center, and

d. other major decisions as may be agreed upon by the Trust and the private entity.

C.  To the extent it is determined by legislative enactment that the Trust has expended funds in contravention of its mission as set forth in this section, the Trust shall remit, upon thirty (30) days’ written notice from the University Hospitals Authority, such sum or sums to the University Hospitals Authority.

D.  In the event the Trust enters into a joint venture or acquires an interest in a not-for-profit entity to effectuate the administration of the mission of the Trust, that entity shall not be subject to the Oklahoma Open Meeting Act and the Oklahoma Open Records Act.  Any information submitted to or compiled by the Trust with respect to marketing plans, financial statements, trade secrets, research concepts, methods or products or any other proprietary information submitted to or compiled by the Trust, persons, firms, associations, partnerships, agencies, corporations, institutions of higher education, nonprofit research institutions or other entities shall be confidential, except to the extent that the person or entity which provided such information or which is the subject of such information consents to disclosure.  Executive sessions may be held to discuss such materials if deemed necessary by the Trust.  The provisions of this subsection shall not apply to budgetary information related to appropriations or the appropriations process.

Added by Laws 1995, c. 263, § 3.  Amended by Laws 1996, c. 326, § 6, eff. July 1, 1996; Laws 1997, c. 2, § 15, emerg. eff. Feb. 26, 1997; Laws 1997, c. 174, § 4, emerg. eff. May 8, 1997; Laws 2007, c. 93, § 2, eff. Nov. 1, 2007; Laws 2016, c. 387, § 1, emerg. eff. June 6, 2016.

NOTE:  Laws 1996, c. 321, § 5 repealed by Laws 1997, c. 2, § 26, emerg. eff. Feb. 26, 1997.

§63-3225. Submission of certain contractual agreements to Contingency Review Board - Declaratory judgment of Supreme Court of Oklahoma.

A.  Contingent upon the creation of the University Hospitals Trust as provided in Section 3224 of this title, the Trust, prior to acceptance, shall submit to the Contingency Review Board for review the proposed agreement regarding the lease and operations of the University Hospitals to any entity authorized to transact business in the state and an independent statement as to the fairness of said proposed agreement for the State of Oklahoma.  The Contingency Review Board shall upon receipt of the proposed agreement meet within fifteen (15) business days to review the proposed agreement; and unless the Contingency Review Board disapproves the proposed agreement, the proposed agreement may be executed, but no lease of the University Hospitals shall become effective until after Supreme Court approval pursuant to subsection B of this section.

B.  1.  If a proposed agreement is not disapproved by the Contingency Review Board pursuant to subsection A of this section, the University Hospitals Authority and University Hospitals Trust, within thirty (30) calendar days after the time for Contingency Review Board action has expired, may file a petition with the Supreme Court of Oklahoma for a declaratory judgment determining the validity of the proposed agreement.  The review of the Court shall be based upon the exercise of any of the powers, rights, privileges, and functions conferred upon the Authority or the University Hospitals Trust, as applicable, under the University Hospitals Authority Act and Oklahoma laws.  Exclusive original jurisdiction is conferred upon the Supreme Court to hear and determine such petitions.  The Supreme Court shall give such petitions precedence over other business of the Court except habeas corpus proceedings.

2.  Notice of the hearing of such a petition shall be given by a notice published in a newspaper of general circulation in this state that on a day specified the Supreme Court will hear the petition to approve the proposed agreement and enter a declaratory judgment.  The notice shall be published one time not less than ten (10) days prior to the date specified for the hearing.  The notice shall inform property owners, taxpayers, citizens, and all persons having or claiming any right, title, or interest in the proposed agreement or properties or funds to be affected by the implementation of the proposed agreement, or affected in any way thereby, that they may file protests against the approval of the proposed agreement, and be present at the hearing to contest the legality of the proposed agreement.  The hearing may be adjourned from time to time at the discretion of the Court.

3.  If the Court is satisfied that the proposed agreement is in accordance with the University Hospitals Authority Act and Oklahoma laws, the Court shall enter a declaratory judgment approving and declaring the proposed agreement to be valid and conclusive as to the Authority, the Trust, and all other parties to the proposed agreement; and, upon petition of the Authority, shall issue an order permanently enjoining all persons described in the notice required by this subsection from thereafter instituting any action or proceeding contesting the validity of the proposed agreement.  A declaratory judgment rendered pursuant to this subsection shall have the force and effect of a final judgment or decree and shall be incontestable in any court in this state.

4.  As used in the University Hospitals Authority Act, “proposed agreement” means one or more contracts regarding the lease and operations of the University Hospitals and all other agreements contemplated by or referred to in the contract regarding such lease and operations.

Added by Laws 1995, c. 263, § 4.  Amended by Laws 1996, c. 321, § 6, emerg. eff. June 12, 1996; Laws 1997, c. 174, § 5, emerg. eff. May 8, 1997.

§63-3226. Leases from University Hospitals Authority to University Hospitals Trust.

A.  Contingent upon the creation of the University Hospitals Trust as provided in Section 3224 of this title, the University Hospitals Authority is hereby authorized to lease, for a term of not more than fifty (50) years, renewable at the option of the Authority, all real property known as the University Hospitals and any other sites under the control of the Authority to the University Hospitals Trust.  Any lease agreement made pursuant to this section shall be contingent upon:

1.  Prior review by the Attorney General of any contractual agreement between the University Hospitals Trust and any entity authorized to transact business in the State of Oklahoma regarding the lease and operations of the University Hospitals.  The Attorney General shall disapprove the agreement if it is determined that provisions of the agreement are not consistent with state law; and

2.  The execution of an operating and lease agreement between the University Hospitals Trust and any entity authorized to transact business in the State of Oklahoma.

B.  Concurrent with the execution of a lease of real property from the University Hospitals Authority to the University Hospitals Trust as provided in subsection A of this section, the Authority is authorized to transfer title to and possession of all tangible and intangible personal property under its control to the Trust.  In any contractual agreement regarding the lease and operations of the University Hospitals between the University Hospitals Trust and any entity authorized to transact business in the State of Oklahoma, the Trust is authorized to sell or otherwise convey to such entity all tangible and intangible personal property the Trust may receive from the University Hospitals Authority.  Any contract or other agreement which purports to exercise the powers authorized by this subsection is subject to review by the Contingency Review Board, as specified in Section 3225 of this title.

C.  If a contracting entity fails to take possession of the leased premises or abandons or surrenders possession of the leased premises, other than to a state agency, at any time during the term of the lease between the University Hospitals Trust and the contracting entity, the interest in the real property leased to the University Hospitals Trust by the University Hospitals Authority shall revert to and be the sole and exclusive property of the University Hospitals Authority.

D.  Contingent upon the execution of an agreement between the University Hospitals Trust and any entity authorized to transact business in the State of Oklahoma, as specified in subsection A of this section, the University Hospitals Authority is authorized to enter into an agreement for such entity to provide indigent care services and perform other related duties imposed upon the University Hospitals Authority by law.  Such an agreement between the University Hospitals Authority and such entity is exempt from the requirements of the Oklahoma Central Purchasing Act and any rules adopted by the University Hospitals Authority pursuant to the Administrative Procedures Act.

Added by Laws 1995, c. 263, § 5.  Amended by Laws 1996, c. 321, § 7, emerg. eff. June 12, 1996; Laws 2000, 1st Ex.Sess., c. 8, § 12, eff. July 1, 2000.

§63-3227. University Hospitals Trust Revolving Fund.

There is hereby created in the State Treasury a revolving fund for the University Hospitals Trust to be designated the “University Hospitals Trust Revolving Fund”.  The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of appropriated revenues.  All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the University Hospitals Trust.

Added by Laws 1996, c. 264, § 38, eff. Sept. 1, 1996.

§63-3228. Telemedicine pilot program.

The Oklahoma Legislature, recognizing the advancement of technology in medicine and its benefits, hereby authorizes the implementation of a telemedicine pilot program for inmates from correctional institutions.  The purpose of the pilot program shall be to provide verifiable data on how telemedicine can improve medical services for correctional inmate patients and at a lower cost than the present system of medical care for inmate patients.  The pilot program shall be developed by the University Hospitals Trust and the Department of Corrections, working in conjunction with the University Hospital, the University of Oklahoma Health Sciences Center and Griffin Memorial Hospital.  The pilot program shall be implemented through an agreement between the University Hospitals Trust and the Department of Corrections and other participating entities.  At a minimum, the pilot program shall involve telemedicine connections between two Department of Corrections institutions, the University Hospital, and Griffin Memorial Hospital.

Added by Laws 1998, c. 389, § 12, eff. July 1, 1998.

Some of these sections of law were amended by SB1049 of the 2019 session. See below.

SB 1049

An Act relating to public health and safety; amending
63 O.S. 2011, Sections 3202, 3203, 3204, 3207, 3208,
as amended by Section 513, Chapter 304, O.S.L. 2012,
3210, 3221 and 3224, as amended by Section 1, Chapter
387, O.S.L. 2016 (63 O.S. Supp. 2018, Sections 3208
and 3224), which relate to the University Hospitals
Authority and University Hospitals Trust; defining
terms; modifying mission and purpose of University
Hospitals; deleting provisions relating to transfer
of University Hospitals; deleting obsolete language;
modifying membership of University Hospital
Authority; providing that members serve at pleasure
of appointing authority; subjecting certain persons
to Rules of Ethics Commission; modifying powers of
University Hospitals Authority; clarifying
application of Oklahoma State Finance Act; modifying
requirement to submit certain monthly report;
modifying provisions relating to selection of vendors
and contractors; empowering Authority to authorize
certain building demolition; modifying revenues to be
deposited to University Hospitals Authority
Disbursing Fund; granting certain powers and
authority to University Hospitals Trust; amending 61
O.S. 2011, Section 207.2, as amended by Section 323,
Chapter 304, O.S.L. 2012 (61 O.S. Supp. 2018, Section
207.2), which relates to public buildings and public
works; exempting Authority and Trust from certain
provisions; amending 74 O.S. 2011, Section 62.3, as
last amended by Section 3, Chapter 309, O.S.L. 2016
(74 O.S. Supp. 2018, Section 62.3), which relates to
Oklahoma Surplus Property Act; exempting Authority
and Trust from Act; repealing 63 O.S. 2011, Sections
3211 and 3212, as amended by Sections 514 and 515,
Chapter 304, O.S.L. 2012, 3213.2, 3221.1 and 3223, as
amended by Sections 516 and 517, Chapter 304, O.S.L.
2012, 3227, 3227.1, as amended by Section 518,
Chapter 304, O.S.L. 2012 and 3228 (63 O.S. Supp.
2018, Sections 3211, 3212, 3221.1, 3223 and 3227.1),
which relate to the University Hospitals Authority
Act; and providing an effective date.
SUBJECT: Public health and safety
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2011, Section 3202, is
amended to read as follows:
Section 3202. As used in the University Hospitals Authority
Act:
1. “University Hospitals” include the Oklahoma Memorial
Hospital, which shall be renamed University Hospital; the Children’s
Hospital of Oklahoma; the Child Study Center; and the O’Donoghue
Rehabilitation Institute;
2. “Authority” means the University Hospitals Authority;
3. “Department” means the Department of Human Services; and
4. “Commission” means the Commission for Human Services or the
Oklahoma Public Welfare Commission;
5. “University Hospital” means Everett Tower and the North
Pavilion, which have been renamed as Children’s Hospital at the
University of Oklahoma Medical Center; and
ENR. S. B. NO. 1049 Page 2

6. “Children’s Hospital of Oklahoma” means the Bielstein,
Garrison, Nicholson and MRI towers which are no longer being used as
hospitals.
SECTION 2. AMENDATORY 63 O.S. 2011, Section 3203, is
amended to read as follows:
Section 3203. A. The purposes of the University Hospitals
Authority Act are to provide for an effective and efficient
administration, to ensure a dependable source of funding, and to
effectuate the mission and purposes of the University Hospitals
Authority. The mission and purposes of the University Hospitals are
to serve as general hospitals, to serve as teaching and training
facilities for students enrolled at the University of Oklahoma, to
serve as a site for conducting medical and biomedical research by
faculty members of the University of Oklahoma Health Sciences Center
and to provide care for the medically indigent. The University
Hospitals shall maintain a close affiliation with the University of
Oklahoma Health Sciences Center and shall coordinate their
operations and activities in a cooperative manner. In addition, the
University Hospitals Authority shall provide indigent and
nonindigent patient care, as more fully described herein.
B. The Legislature finds that the needs of the citizens of this
state and the needs of the University of Oklahoma Health Sciences
Center will be best served if the University Hospitals are operated
by a separate Authority charged with the mission of operating or
leasing the operations of the teaching hospitals for the benefit of
the colleges of the University of Oklahoma Health Sciences Center
and providing care for the medically indigent.
C. The University Hospitals Authority, by receiving the assets
and operating obligations, shall ensure that the costs of delivering
medically indigent care continue to be subsidized in excess of the
state reimbursement for the medically indigent, consistent with the
teaching hospitals’ past policy and performance and that of the
University of Oklahoma Health Sciences Center. The Authority shall
make or cause to be made every reasonable effort to continue the
hospitals’ historic commitment to the provision of uncompensated
care and that the allocation and investment of resources shall be
made with a view to maximizing the hospitals’ long-term ability to
provide uncompensated care, except as may be modified by changes in
ENR. S. B. NO. 1049 Page 3

federal or state law. The University Hospitals Authority shall
ensure that indigent care provided by the Oklahoma Medical Center
during a fiscal year shall be equal to or exceed one hundred twenty
percent (120%) of the annual appropriation to the University
Hospitals Authority for indigent care. The level of indigent care
provided shall be based on Medicare costs as determined by the most
recent report filed by any operating entity of the University
Hospitals with the federal Health Care Finance Administration.
D. As used in this section, “indigent care” means charity care,
Medicaid contractual allowances, all debt arising from accounts for
which there is no third-party coverage including services provided
to the Department of Corrections and Department of Mental Health and
Substance Abuse Services as otherwise required by law. For purposes
of this subsection, third-party coverage shall not include Medicaid
coverage.
E. The Board of Regents of the University of Oklahoma shall
retain full power to govern the personnel, curriculum and facilities
of the University of Oklahoma.
SECTION 3. AMENDATORY 63 O.S. 2011, Section 3204, is
amended to read as follows:
Section 3204. A. Until July 1, 1993, the University Hospitals
shall be under the jurisdiction, supervision, management and control
of the Department of Human Services and the Commission for Human
Services.
B. Effective July 1, 1993, the University Hospitals are hereby
transferred from the Department of Human Services and the Commission
for Human Services to the University Hospitals Authority.
C. The transfer shall include:
1. All powers, duties, responsibilities, properties, assets,
fund balances, encumbrances, obligations, records, personnel and
liabilities, including, but not limited to, liability for all
University Hospital employees’ sick leave, annual leave, holidays,
unemployment benefits and workers’ compensation benefits accruing to
employees prior to July 1, 1993, which are attributable to the
University Hospitals; provided, however, that any claims arising
ENR. S. B. NO. 1049 Page 4

under the Governmental Tort Claims Act and filed prior to July 1,
1993, and from any other actions filed prior to July 1, 1993, shall
remain the responsibility of the Department of Human Services and
the Commission for Human Services. All claims arising prior to July
1, 1993 and for which no action has been filed shall be paid by the
Risk Management Program;
2. The attorney employed by the Department of Human Services
who provides legal representation for the University Hospitals
Authority facilities. The Authority shall make such attorney
available, at the request of the Department, for purposes of
resolving and terminating any claims arising from alleged medical
malpractice and other actions filed prior to July 1, 1993. The
Authority and the Department of Human Services shall enter into an
interagency agreement for the purpose of assisting the Department in
resolving claims and other actions;
3. Children’s Hospital of Oklahoma and all buildings and
appurtenances located on land which is described as follows: Blocks
B, 3, 4, 12 and 13, and the North 30 feet of Block 14; and Lots 6
through 15, Block 21, CULBERTSON HEIGHTS ADDITION less and except
the West 7 feet of Lot 5 and all of Lots 6 through 19, and the East
5 feet of Lot 20 and the North 59.5 feet of Lots 21 through 26, and
the North 59.5 feet of the West 49.5 feet of Lot 27, all in Block
13, CULBERTSON HEIGHTS ADDITION to the City of Oklahoma City,
Oklahoma, and also less and except the West 106 feet of the vacated
Northeast 12th Street abutting said Block 13; and a part of Block
20, CULBERTSON HEIGHTS ADDITION and a part of the alleys adjacent
thereto, and a part of the SW 1/4, Section 26, T12N, R3W, I.M., and
a part of the SE 1/4, Sec. 27, T12N, R3W, I.M., Oklahoma County,
Oklahoma, and a part of vacated Kelley Avenue adjacent thereto, more
particularly described as follows: Commencing at the NE corner of
Block 20, CULBERTSON HEIGHTS ADDITION, Oklahoma City, Oklahoma,
thence S. 0 degrees 03′ 34″ E. and along the East line of said Block
20 and along the West Right-of-Way line of Stonewall Avenue a
distance of 10 ft. to the point or place of beginning; thence
continuing S. 0 degrees 03′ 34″ E. and along the East line of said
Block 20 and along the West Right-of-Way line of Stonewall Avenue a
distance of 341.27 ft., thence N. 89 degrees 54′ 35″ W. a distance
of 520.10 ft., thence N. 0 degrees 11′ 08″ E. a distance of 18.0
ft.; thence N. 89 degrees 48′ 52″ W. a distance of 12.0 ft.; thence
N. 0 degrees 11′ 08″ E. a distance of 6 ft.; thence N. 89 degrees
ENR. S. B. NO. 1049 Page 5

48′ 52″ W. a distance of 21.5 ft., thence N. 0 degrees 11′ 08″ E. a
distance of 22.5 ft., thence N. 89 degrees 48′ 52″ W. a distance of
286.5 ft., thence N. 89 degrees 48′ 52″ W. a distance of 27.00 feet;
thence N. 0 degrees 12′ 03″ E. a distance of 72.50 feet; thence N.
89 degrees 48′ 51″ W. a distance of 25.65 feet; thence N. 23 degrees
29′ 12″ W. a distance of 250.50 feet to a point on the South Right-
of-Way line of N.E. 13th Street; thence S. 89 degrees 48′ 51″ E. and
along the South Right-of-Way line of N.E. 13th Street a distance of
649.76 feet; to a point in the East line of said SE 1/4 of Section
27, T12N, R3W, thence S. 0 degrees 06′ 23″ W. along the East line of
said Section 27, a distance of 10.0 ft., thence N. 89 degrees 33′
42″ E. and parallel to and 10 ft., South of the North line of said
Block 20 of said CULBERTSON HEIGHTS ADDITION a distance of 342.10
ft. to the point or place of beginning; and
4.
3. a.
Oklahoma Memorial Hospital and all buildings and
appurtenances located on land which is described as
follows: A part of the South Half of the Southeast
Quarter of Section 27, T12N, R3W of the Indian
Meridian AND a part of the North Half of the Northeast
Quarter of Section 34, T12N, R3W, of the Indian
Meridian, all in Oklahoma County, Oklahoma, more
particularly described as follows: Beginning at the
Southwest corner of Block 13, HOWE’S CAPITOL ADDITION;
thence N. 0 degrees 10′ 36″ E. along the East line of
Phillips Avenue a distance of 674.64 feet to a point
on the South line of Northeast 13th Street; thence S.
89 degrees 48′ 51″ E. along the South line of said
Northeast 13th Street a distance of 620.30 feet;
thence S. 23 degrees 29′ 12″ E. a distance of 250.50
feet; thence S. 89 degrees 48′ 51″ E. a distance of
25.65 feet; thence S. 0 degrees 12′ 03″ W. a distance
of 72.50 feet; thence S. 89 degrees 48′ 51″ E. a
distance of 27.00 feet; thence S. 00 degrees 12′ 03″
W. a distance of 443.57 feet; thence S. 89 degrees 43′
03″ E. a distance of 32.95 feet; thence S. 00 degrees
14′ 28″ W. along the East line of a retaining wall a
distance of 733.66 feet to a point on the South line
of Block 1 of OAK PARK ADDITION; thence S. 89 degrees
52′ 55″ W. along the South line of Blocks 1 and 7 of
ENR. S. B. NO. 1049 Page 6

OAK PARK ADDITION a distance of 810.11 feet to the
Southwest corner of said Block 7; thence N. 00 degrees
10′ 36″ E. along the West line of said Block 7, OAK
PARK ADDITION a distance of 213.87 feet; thence N. 89
degrees 49′ 24″ W. a distance of 3.40 feet; thence N.
00 degrees 10′ 36″ E. along the West line of Block 24,
HOWE’S CAPITOL ADDITION a distance of 190.00 feet;
thence S. 89 degrees 49′ 24″ E. a distance of 8.10
feet; thence N. 00 degrees 10′ 36″ E. along the West
line of Block 18, HOWE’S CAPITOL ADDITION a distance
of 405.00 feet to the Point of Beginning and
containing 1,146,572 Square Feet or 26.32 Acres more
or less;
b. That portion of the property described in subparagraph
a known as the Research Building shall be transferred
to the Authority, but shall be leased to the
University of Oklahoma for a term of not less than
forty (40) years from the date thereof; and
c. All of Blocks 1 and 2 of Culbertson Heights Addition,
and all of Block 3 and Lots 3 through 20 and the North
50 feet of Lots 21 through 38 of Block 12, Oak Park
Addition to the City of Oklahoma City, Oklahoma,
including the encompassed and abutting portions of the
vacated Northeast 11th Street, Park Place and
Northeast 10th Street, and the abutting portion of
Everest Avenue and the alley way in Block 12 of the
said Oak Park Addition.
D. Properties to be retained by the Department of Human
Services include:
1. The Service Center Building and land located on: The South
100 feet of Block 12 and all of Block 17, Oak Park Addition to the
City of Oklahoma City, Oklahoma, including the encompassed or
abutting portions of vacated Everest Avenue and Northeast 9th
Street. (219,300 sq. ft., 5.03 acres); and
2. The Management Information Division Building and land
located on: The West 7 feet of Lot 5 and all of Lots 6 through 19,
and the East 5 feet of Lot 20 and the North 59.5 feet of Lots 21
ENR. S. B. NO. 1049 Page 7

through 26, and the North 59.5 feet of the West 49.5 feet of Lot 27,
all in Block 13, Culbertson Heights Addition to the City of Oklahoma
City, Oklahoma, and also including the West 106 feet of the vacated
Northeast 12th Street abutting said Block 13. (82,199 sq. ft., 1.89
acres).
E. Appropriate conveyances shall be executed to effectuate the
transfers specified by subsections B, C and D of this section.
SECTION 4. AMENDATORY 63 O.S. 2011, Section 3207, is
amended to read as follows:
Section 3207. A. There is hereby created the University
Hospitals Authority, an agency of the State of Oklahoma, a body
corporate and politic, with powers of government and with the
authority to exercise the rights, privileges and functions as
specified in the University Hospitals Authority Act. The University
Hospitals Authority is an agency of the State of Oklahoma covered by
the Governmental Tort Claims Act.
B. The Authority shall consist of six (6) members as follows:
1. One member shall be appointed by the Governor, with the
advice and consent of the Senate;
2. One member shall be appointed by the President Pro Tempore
of the Senate;
3. One member shall be appointed by the Speaker of the House of
Representatives;
4. One member shall be the Director for Human Services or the
director of the successor organization responsible for Medicaid
Administrator of the Oklahoma Health Care Authority, or his or her
designee;
5. One member shall be the Provost of the University of
Oklahoma Health Sciences Center; and
6. The Chief Executive Officer of the University Hospitals
Authority who shall be an ex officio, nonvoting member.
ENR. S. B. NO. 1049 Page 8

C. All members shall be appointed by June 1, 1993. Of the
members of the Authority initially appointed, the member appointed
by the President Pro Tempore of the Senate shall serve a term of one
(1) year; the member appointed by the Speaker of the House of
Representatives shall serve a term of two (2) years; and the member
appointed by the Governor shall serve a term of three (3) years.
Successors shall be appointed for terms of three (3) years.
D. Each member of the Authority, prior to appointment, shall be
a resident of the state and a qualified elector.
E. Members D. Each appointed member shall be removable only
for cause by the serve at the pleasure of his or her appointing
authority and be removed or replaced without cause. Members serving
on November 1, 2019, shall continue serving unless and until another
appointment is made by the appointing authority. Any vacancy
occurring on the Authority shall be filled by the original
appointing authority.
F. E. The members of the Authority shall serve without
compensation but may be reimbursed for all actual and necessary
travel expenses incurred in performance of their duties in
accordance with the provisions of the State Travel Reimbursement
Act, Section 500.1 et seq. of Title 74 of the Oklahoma Statutes.
G. F. All members of the Authority and administrative personnel
of the Authority shall be subject to the Rules of the Ethics
Commission and the provisions of the Oklahoma Ethics Commission Act,
Section 4200 et seq. of Title 74 of the Oklahoma Statutes.
H. G. A quorum of the Authority shall be three (3) voting
members. Members shall elect a chair and vice chair for the
Authority from among its members. The chair must be an appointed
member of the Authority.
I. H. The Authority shall be subject to the Open Meeting Act,
Section 301 et seq. of Title 25 of the Oklahoma Statutes, and the
Open Records Act, Section 24A.1 et seq. of Title 51 of the Oklahoma
Statutes, except as otherwise provided by this act. Any information
submitted to or compiled by the Authority except for budgetary
information related to appropriations or the appropriations process
with respect to the marketing plans, financial statements, trade
ENR. S. B. NO. 1049 Page 9

secrets, research concepts, methods or products, or any other
proprietary information of the Authority, persons, firms,
associations, partnerships, agencies, corporations, institutions of
higher education, nonprofit research institutions or other entities
shall be confidential, except to the extent that the person or
entity which provided such information or which is the subject of
such information consents to disclosure. Executive sessions may be
held to discuss such materials if deemed necessary by the Authority.
SECTION 5. AMENDATORY 63 O.S. 2011, Section 3208, as
amended by Section 513, Chapter 304, O.S.L. 2012 (63 O.S. Supp.
2018, Section 3208), is amended to read as follows:
Section 3208. A. On and after June 1, 1993, and until July 1,
1993, in order to effectuate the transfer of the University
Hospitals from the Commission for Human Services and the Department
of Human Services to the University Hospitals Authority, the
Authority shall have the powers and duties to:
1. Adopt bylaws and promulgate rules for the regulation of its
affairs and the conduct of its business;
2. Adopt an official seal;
3. Maintain an office at the University Hospitals;
4. Make and enter into all contracts necessary or incidental to
the performance of its duties and the execution of its powers
pursuant to the University Hospitals Authority Act;
5. Appoint such officers, agents and employees, including but
not limited to attorneys, as it deems necessary to implement the
provisions of this subsection to prescribe their duties and to fix
their compensation; and
6. Establish petty cash funds and provide for appropriate
accounting procedures and controls.
B. On and after July 1, 1993, the The Authority shall have the
power and duty to:
ENR. S. B. NO. 1049 Page 10

1. Adopt bylaws and promulgate rules for the regulation of its
affairs and the conduct of its business;
2. Adopt an official seal;
3. Maintain an office at the University Hospitals;
4. Sue and be sued, subject to the provisions of The
Governmental Tort Claims Act;
5. Establish rates of payment for hospital and clinical
services, which shall provide for exceptions and adjustments in
cases where the recipients of services are unable to pay and for
whom no third party source of payment is available, and to establish
different rates of payment for indigent and nonindigent care;
6. Enter into cooperative agreements with the Board of Regents
of the University of Oklahoma for educational programs, professional
staffing, research and other medical activities and to pass through
funds appropriated by the Legislature consistent with past practice;
7. Make and enter into all contracts necessary or incidental to
the performance of its duties and the execution of its powers
pursuant to the University Hospitals Authority Act;
8. Purchase or lease equipment, furniture, materials and
supplies, and incur such other expenses as may be necessary to
maintain and operate the hospitals or clinics, or to discharge its
duties and responsibilities or to make any of its powers effective;
9. Acquire by purchase, lease, gift, or by any other manner,
and to maintain, use and operate or to contract for the maintenance,
use and operation of or lease of any and all property of any kind,
real, personal, or mixed or any interest therein unless otherwise
provided by the University Hospitals Authority Act;
10. Appoint such officers, agents and employees, including but
not limited to attorneys, architects and construction managers, as
it deems necessary to operate and maintain the University Hospitals
and to prescribe their duties and to fix their compensation. The
Authority shall employ and fix the duties and compensation of an
administrator of the hospitals.;
ENR. S. B. NO. 1049 Page 11

11. Accept grants from the United States of America, or from
any corporation or agency created or designed designated by the
United States of America, and, in connection with any such grant, to
enter into such agreements as the United States of America or such
corporation or agency may require;
12. Make and issue bonds and to pledge revenues of the
Authority subject to the Oklahoma Bond Oversight and Reform Act.
Nothing in the University Hospitals Authority Act shall authorize
the issuance of any bonds of the Authority payable other than from
revenues of the University Hospitals. Funds appropriated to the
University Hospitals shall not be used for issuance of bonds.
Authority revenue bonds issued under the provisions of this act the
University Hospitals Authority Act shall not at any time be deemed
to constitute a debt of the state or of any political subdivision
thereof or a pledge of the faith and credit of the state or of any
political subdivision, but such bonds shall be payable solely from
the funds herein provided. Such revenue bonds shall contain on the
face thereof a statement to the effect that neither the state nor
the Authority shall be obligated to pay the same or the interest
thereon except from the revenues of the project or projects for
which they are issued and that neither the faith and credit nor the
taxing power of the state or any political subdivision thereof is
pledged, or may hereafter be pledged, to the payment of the
principal of or the interest on such bonds. The maximum amount of
outstanding bonds at any time shall not exceed Fifty Million Dollars
($50,000,000.00) unless a greater amount is expressly approved by
the Legislature by a concurrent resolution adopted prior to
commencing any action in anticipation of issuance of revenue bonds
of the University Hospitals Authority for the greater amount;
13. Provide for complete financial audits on all accounts of
the University Hospitals Authority and to authorize periodic audits
by an independent external auditing agency. Such audits to be
performed annually in a format approved by the State Auditor and
Inspector and all such audits shall be submitted to the State
Auditor and Inspector for review. Such audits shall be made in
accordance with generally accepted auditing standards and government
auditing standards. Financial statements shall be prepared in
accordance with generally accepted accounting principals principles.
In addition to said audits, the State Auditor and Inspector,
ENR. S. B. NO. 1049 Page 12

whenever he or she deems it appropriate, and at least once each five
(5) years, or upon receipt of a request to do so from the Governor,
the Attorney General, the President Pro Tempore of the Senate, the
Speaker of the House of Representatives or the Authority shall
conduct a special audit of the Authority and the University
Hospitals;
14. Engage in long-term planning for the operation and
management of the University Hospitals;
15. Establish petty cash funds and provide for appropriate
accounting procedures and controls;
16. Contract with national manufacturers, wholesalers and
distributors of equipment, drugs and medical supplies when
appropriate to carry out the purposes of this act the University
Hospitals Authority Act;
17. Do all other things necessary and proper to implement the
provisions of the University Hospitals Authority Act;
18. Waive, by such means as the Authority deems appropriate,
the exemption from federal income taxation of interest on the
Authority’s bonds provided by the Internal Revenue Code of 1986, as
amended, or any other federal statute providing a similar exemption;
and
19. Arrange for guaranties or insurance of its bonds by the
federal government or by any private insurer, and to pay any
premiums therefor; and
20. Adopt policies for the disposal of surplus property.
C. B. The University Hospitals Authority and the University
Hospitals shall be subject to the Oklahoma State Finance Act,
Section 34 et seq. of Title 62 of the Oklahoma Statutes.
D. C. The Authority shall prepare monthly a “budget vs. actual”
report which shows by budget activity the monthly and year-to-date
revenues and expenditures compared to budgeted revenues and
expenditures. Such report shall be submitted upon request to the
Office of Management and Enterprise Services and to the Directors of
ENR. S. B. NO. 1049 Page 13

the House of Representatives Fiscal Division and the Senate Fiscal
Division.
E. D. The Authority shall be subject to the professional risk
management program provided for in Section 85.58A of Title 74 of the
Oklahoma Statutes.
F. The Department of Human Services Institutional Maintenance
and Construction Unit and the Architecture and Engineering Planning
Unit should be given first priority to be vendor for the University
Hospitals Authority for construction and remodeling projects which
fall within their scope of services.
E. The Authority may enter into contracts for construction and
remodeling projects with another contractor only after compliance
with all other in accordance with applicable statutes and after
making a specific finding that another contractor is more
competitive its own administrative rules.
G. F. The Authority shall continue to may provide space,
utilities and janitorial services to the Department of Human
Services Institutional Maintenance and Construction Architecture and
Engineering Planning Unit.
SECTION 6. AMENDATORY 63 O.S. 2011, Section 3210, is
amended to read as follows:
Section 3210. A. Effective July 1, 1993, the University
Hospitals, subject to the direction of the The University Hospitals
Authority, shall have the authority to:
1. Enter into agreements and cooperative ventures with other
health care providers to share services or to provide a benefit to
the hospitals;
2. Make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution of
its powers pursuant to the University Hospitals Authority Act;
The Authority shall have
the power to authorize the demolition of any building owned by the
Authority upon a finding that the building is no longer suitable for
the purposes for which it was intended and that a renovation of the
building is not economically justifiable.
ENR. S. B. NO. 1049 Page 14

3. Join or sponsor membership in organizations or associations
intended to benefit the hospitals;
4. Have members of its governing body or its officers or
administrators serve without pay as directors or officers of any
organization, association or cooperative ventures authorized
pursuant to the University Hospitals Authority Act; and
5. Offer, directly or indirectly, products and services of the
hospitals, any cooperative venture or organization to the general
public.
B. All agreements and obligations undertaken, as permitted
under this section, by the University Hospitals Authority shall be
for a public purpose. In addition to any other limitations,
conditions or restrictions provided by law, the following conditions
shall apply to contractual agreements entered into pursuant to this
section:
1. Private and public funds shall be accounted for separately;
and
2. The state does not assume any liability for private
entities.
SECTION 7. AMENDATORY 63 O.S. 2011, Section 3221, is
amended to read as follows:
Section 3221. A. There is hereby created in the State Treasury
a revolving fund for the University Hospitals Authority, to be
designated the “University Hospitals Authority Disbursing Fund”.
The fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of appropriated revenues, revenues
earned by the Authority, donations and federal entitlements. All
monies accruing to the credit of said fund are hereby appropriated
and may be budgeted and expended by the University Hospitals
Authority.
B. Following the execution of a lease of real properties under
the jurisdiction of the University Hospitals Authority to the
University Hospitals Trust pursuant to Section 3226 of this title,
ENR. S. B. NO. 1049 Page 15

monies from the fund may be expended by the Authority for the fiscal
year ending June 30, 1998, for the operations of the Authority after
the execution of the lease to the University Hospitals Trust for
payment of any costs to the Authority associated with the transfer
of operations of facilities under the jurisdiction of the Authority,
and legal obligations of the Authority. After July 1, 1998, the
operation of the Authority may be funded from the interest earned by
the fund.
C. After July 1, 2010, the principal and interest earned on the
fund may be expended by the Authority for the operation of the
Authority and for the completion of the mission of the Authority.
D. It is the intent of the Legislature to restore the fund to
the June 30, 2010, balance in the event that the state resumes
operations of any of the facilities operated by the Authority prior
to a lease being executed.
SECTION 8. AMENDATORY 63 O.S. 2011, Section 3224, as
amended by Section 1, Chapter 387, O.S.L. 2016 (63 O.S. Supp. 2018,
Section 3224), is amended to read as follows:
Section 3224. A. The State of Oklahoma expressly approves the
creation of a public trust to be denominated the “University
Hospitals Trust”, of which the State of Oklahoma shall be the
beneficiary, provided such approval shall be contingent upon the
following conditions being satisfied:
1. Finalizing of the Declaration of Trust;
2. Adoption of the Declaration of Trust by an official action
of the trustees of the Trust;
3. Submission of the Trust for acceptance of the beneficial
interest and approval as required by Section 177 of Title 60 of the
Oklahoma Statutes; and
4. The approved Declaration of Trust shall:
a. clearly state that the principal purpose of the
University Hospitals Trust is to effectuate the
ENR. S. B. NO. 1049 Page 16

purposes of the University Hospitals Authority as
established in the University Hospitals Authority Act,
b. except as otherwise provided by law, provide that the
fee simple title to real property held by the
University Hospitals Authority shall not be
transferred, conveyed, or assigned to the University
Hospitals Trust without the express consent of the
Legislature as the governing entity of the beneficiary
pursuant to Section 176 of Title 60 of the Oklahoma
Statutes,
c. provide that any indebtedness incurred by the
University Hospitals Trust or the trustees of the
Trust shall not be secured with or create a lien upon
real property to which title is held by the University
Hospitals Authority and shall not involve the bonding
capacity of the University Hospitals Authority,
d. provide that the trust estate of the University
Hospitals Trust shall not include fee simple title to
real property owned by the University Hospitals
Authority,
e. clearly state that the creation of the University
Hospitals Trust shall not in any way reduce, limit or
interfere with the power granted to the University
Hospitals Authority in the University Hospitals
Authority Act,
f. provide that any lease or contractual agreement
involving use of the real property to which title is
held by the University Hospitals Authority and any
improvements thereto shall contain a provision and
covenants requiring the proper maintenance and upkeep
of the real property and improvements,
g. provide that the trustees of the University Hospitals
Trust shall be the acting members of the University
Hospitals Authority as provided in the University
Hospitals Authority Act, and
ENR. S. B. NO. 1049 Page 17

h. provide that the trustees of the University Hospitals
Trust shall have the duty to submit an annual report
to the Governor, the President Pro Tempore of the
Senate and the Speaker of the House of
Representatives. The report shall be submitted by
January 1 of each year and shall include an account of
all operations, actions of the Trust, account of all
revenue received and disbursed by the Trust for the
previous fiscal year. The report shall also provide a
complete accounting of how the Trust meets its primary
function of effectuating the purposes of the
University Hospitals Authority, as established in the
University Hospitals Authority Act.
B. The University Hospitals Trust shall require any agreements
which it enters into with any entity pursuant to Section 3226 of
this title for the operations of facilities leased by the University
Hospitals Authority to the Trust to include, but not be limited to:
1. The inclusion of four of the five members of the Trust as
four of the five members representing the State of Oklahoma as state
appointees to the governing committee created pursuant to a proposed
agreement;
2. Binding arbitration shall not be involved in such agreements
for resolving issues under consideration by the governing committee;
and
3. Major decisions shall be resolved by the governing
committee, and approval of any major decision by the governing
committee must include the approval of a majority of the state
appointees and the approval of a majority of the members of the
private entity appointees to the governing committee. Major
decisions shall include:
a. approval of the annual operating and capital budgets,
b. sale or disposition of assets that individually have a
fair market value over Two Hundred Fifty Thousand
Dollars ($250,000.00),
ENR. S. B. NO. 1049 Page 18

c. the termination or transfer or material addition or
material diminution of medical services at the
Oklahoma Medical Center related to and part of a
teaching program of the University of Oklahoma Health
Sciences Center, and
d. other major decisions as may be agreed upon by the
Trust and the private entity.
C. To the extent it is determined by legislative enactment that
the Trust has expended funds in contravention of its mission as set
forth in this section, the Trust shall remit, upon thirty (30) days’
written notice from the University Hospitals Authority, such sum or
sums to the University Hospitals Authority.
D. In the event the Trust enters into a joint venture or
acquires an interest in a not-for-profit entity to effectuate the
administration of the mission of the Trust, that entity shall not be
subject to the Oklahoma Open Meeting Act and the Oklahoma Open
Records Act. Any information submitted to or compiled by the Trust
with respect to marketing plans, financial statements, trade
secrets, research concepts, methods or products or any other
proprietary information submitted to or compiled by the Trust,
persons, firms, associations, partnerships, agencies, corporations,
institutions of higher education, nonprofit research institutions or
other entities shall be confidential, except to the extent that the
person or entity which provided such information or which is the
subject of such information consents to disclosure. Executive
sessions may be held to discuss such materials if deemed necessary
by the Trust. The provisions of this subsection shall not apply to
budgetary information related to appropriations or the
appropriations process.
E. In addition to the powers and exemptions granted to state
beneficiary public trusts organized under Section 176 et seq. of
Title 60 of the Oklahoma Statutes, the Trust shall possess all the
statutory powers and exemptions provided to the University Hospitals
Authority.
F. The Trust shall have the authority or may contract with a
joint operator or with a foundation supporting the programs of
Children’s Hospital to sell naming rights to property owned or
ENR. S. B. NO. 1049 Page 19

leased by the Trust, provided proceeds from the sale of naming
rights are used to effectuate the purposes of the University
Hospitals Authority as established in the University Hospitals
Authority Act and are specifically approved by the Trust, which
shall have absolute discretion in granting or denying naming rights.
Naming rights shall not include any interest in the property by the
purchaser other than the naming rights.
SECTION 9. AMENDATORY 61 O.S. 2011, Section 207.2, as
amended by Section 323, Chapter 304, O.S.L. 2012 (61 O.S. Supp.
2018, Section 207.2), is amended to read as follows:
Section 207.2. A. Except as provided by subsection B of this
section, no state agency shall employ, either temporary or full-
time, any person engaged in the practice of architecture,
engineering or land surveying for the purpose of planning or
performing any construction upon any real property belonging to the
agency or to the state, or upon any real property of which this
state will assume possession or ownership by contract, option to
purchase agreement, lease, or otherwise. The term “practice of
architecture” shall be defined as those activities of an architect
as provided for in Section 46.3 of Title 59 of the Oklahoma
Statutes. The terms “practice of engineering” or the “practice of
land surveying” shall be defined as such terms are defined by
Section 475.2 of Title 59 of the Oklahoma Statutes.
B. The provisions of subsection A of this section shall not
apply to:
1. The Department of Human Services;
2. The Oklahoma Tourism and Recreation Department;
3. The State Department of Health insofar as the monitoring of
permitted health care facility construction for licensing purposes;
4. The Oklahoma Historical Society insofar as the monitoring of
historical site preservation and authenticity;
5. The Office of Management and Enterprise Services;
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6. The State Department of Education and the public schools
subject to its jurisdiction;
7. The Department of Transportation;
8. The Oklahoma State System of Higher Education;
9. The Military Department of the State of Oklahoma;
10. The Oklahoma Municipal Power Authority;
11. The Department of Public Safety gun range; and
12. CompSource Oklahoma if CompSource Oklahoma is operating
pursuant to a pilot program authorized by Sections 3316 and 3317 of
Title 74 of the Oklahoma Statutes; and
13. The University Hospitals Authority and University Hospitals
Trust.
SECTION 10. AMENDATORY 74 O.S. 2011, Section 62.3, as
last amended by Section 3, Chapter 309, O.S.L. 2016 (74 O.S. Supp.
2018, Section 62.3), is amended to read as follows:
Section 62.3. A. The Director of the Office of Management and
Enterprise Services shall promulgate rules for use by state agencies
and the Office of Management and Enterprise Services to dispose of
surplus property. The rules shall include standards for
recordkeeping, methods for removal or disposal of surplus property,
and acquisition by state agencies and authorized entities of surplus
property, and for Office management of surplus property programs.
B. A state agency selling, trading, redistributing or otherwise
disposing of surplus property shall comply with the rules
promulgated by the Director.
C. The Office shall make surplus property available to state
agencies and authorized entities, which shall include political
subdivisions, school districts, and nonprofit entities of this
state.
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D. The provisions of the Oklahoma Surplus Property Act shall
not apply to institutions of higher education in this state, the
Oklahoma Historical Society, the University Hospitals Authority or
University Hospitals Trust or the Northeast Oklahoma Public
Facilities Authority. The Grand River Dam Authority shall be exempt
from the provisions of the Oklahoma Surplus Property Act for any
surplus property disposed of prior to November 1, 2006. CompSource
Oklahoma shall be exempt from the provisions of the Oklahoma Surplus
Property Act if CompSource Oklahoma is operating pursuant to a pilot
program authorized by Sections 3316 and 3317 of this title.
E. Notwithstanding the provisions of the Oklahoma Surplus
Property Act, the Oklahoma State Bureau of Investigation may,
pursuant to rules promulgated by the Oklahoma State Bureau of
Investigation Commission for that purpose, donate any surplus
property, as defined in Section 62.2 of this title, to any law
enforcement agency of any political subdivision of the State of
Oklahoma. The use of such donated equipment shall be limited to
valid and authorized law enforcement efforts by the receiving
agency.
SECTION 11. REPEALER 63 O.S. 2011, Sections 3211 and
3212, as amended by Sections 514 and 515, Chapter 304, O.S.L. 2012,
3213.2, 3221.1 and 3223, as amended by Sections 516 and 517, Chapter
304, O.S.L. 2012, 3227, 3227.1, as amended by Section 518, Chapter
304, O.S.L. 2012 and 3228 (63 O.S. Supp. 2018, Sections 3211, 3212,
3221.1, 3223 and 3227.1), are hereby repealed.
SECTION 12. This act shall become effective November 1, 2019.
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Passed the Senate the 20th day of May, 2019.
Presiding Officer of the Senate
Passed the House of Representatives the 22nd day of May, 2019.
Presiding Officer of the House
of Representatives
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: _________________________________
ENR. S. B. NO. 1049 Page 23

P.O. Box 26307, Oklahoma City, OK 73126
Phone: 405-271-4962 | Fax: 405-271-1301
Copyright © 2019. University Hospitals Authority and Trust