FINANCE AUTHORITY, OR OTHER SIMILAR ENTITY, LIKE THE OKLAHOMA DEVELOPMENT FINANCE AUTHORITY, IS TO BE CONSIDERED A "PUBLIC BODY." SPECIFICALLY, THE AMENDMENT TO 192.2(6) PROVIDED THAT THE TERM "PUBLIC BODY" WOULD INCLUDE:
". . . (AN) INDUSTRIAL TRUST OR OTHER ENTITY ISSUING OR CAUSING THE ISSUING OF BONDS WHERE SUCH BONDS ARE TO BE USED IN WHOLE OR IN PART FOR CONSTRUCTION AND SUCH BONDS ARE SUPPORTED BY THE FAITH AND CREDIT OF THE STATE OF OKLAHOMA OR ANY POLITICAL SUBDIVISION OR SUCH BONDS COULD BECOME THE OBLIGATION OF THE STATE OF OKLAHOMA OR OTHER POLITICAL SUBDIVISION (.)"
THE ISSUE WITH WHICH YOU ARE PRIMARILY CONCERNED IS THE CONSTRUCTION OF THE ISSUANCE OF BONDS REQUIREMENT OF THIS FINAL PHRASE. BUT GIVEN THE SPECIAL NATURE OF THE REFERENCED BONDS, WE DO NOT BELIEVE THAT IT IS APPROPRIATE TO APPLY THIS REQUIREMENT TO ANY OF THE ENTITIES LISTED IN THE DEFINITION OF "PUBLIC BODY" OTHER THAN AN "INDUSTRIAL TRUST OR OTHER ENTITY ISSUING OR CAUSING TO BE ISSUED BONDS."
BONDS WHICH ARE SUPPORTED BY THE "FAITH AND CREDIT" OF A GOVERNMENTAL ENTITY ARE GENERAL OBLIGATION BONDS. THAT IS, THEY ARE BACKED UP BY THE TAXING POWER OF THE GOVERNMENTAL ENTITY. YET A NUMBER OF ENTITIES THAT ARE SPECIFICALLY IDENTIFIED IN 40 O.S. 192.2(6) AS "PUBLIC BODIES" ARE NOT AUTHORIZED TO ISSUE GENERAL OBLIGATION BONDS. FOR EXAMPLE, THERE IS NO DOUBT THAT THE STATE TREASURER IS AN "OFFICER" OF THE STATE; HOWEVER, THE STATE TREASURER HAS NO INDEPENDENT AUTHORITY TO ISSUE GENERAL OBLIGATION BONDS TO FUND BUILDING PROJECTS. THUS, APPLYING THE ISSUANCE OF BONDS REQUIREMENT TO SUCH AN "OFFICER" WOULD RENDER THAT PORTION OF THE STATUTE USELESS. UNDER THE RULES OF CONSTRUCTION DISCUSSED ABOVE, SUCH A CONSTRUCTION IS TO BE AVOIDED.
RATHER, FOR THE STATUTE TO MAKE SENSE, THE ISSUANCE OF BONDS REQUIREMENT MUST BE READ AS APPLYING ONLY TO THE PHRASE "INDUSTRIAL TRUST OR OTHER ENTITY." AND IN FACT, THE ENTITIES BEST DESCRIBED BY THAT PHRASE - THE OKLAHOMA INDUSTRIAL FINANCE AUTHORITY AND THE OKLAHOMA DEVELOPMENT FINANCE AUTHORITY - ARE INDEED AUTHORIZED IN SOME CIRCUMSTANCES TO ISSUE GENERAL OBLIGATION BONDS. THUS, THE CONSTRUCTION WHICH IS MOST SENSIBLE IS TO LIMIT THE APPLICATION OF THE ISSUANCE OF BONDS REQUIREMENT TO THESE ENTITIES.
BECAUSE THE ISSUANCE OF BONDS REQUIREMENT DOES NOT APPLY TO AN "AUTHORITY" AS DESCRIBED IN THE FIRST PART OF THE DEFINITION, A HOSPITAL AUTHORITY, REGARDLESS OF WHETHER IT ISSUES BONDS, IS A "PUBLIC BODY" AND IS THEREFORE SUBJECT TO THE STRICTURES OF THE ACT.
(K. W. JOHNSON)