Bill > HB1590

This bill establishes the Oklahoma Education Infrastructure Linked Deposit Program Act, which aims to provide funding for eligible education service delivery entities, such as nonprofit organizations and charter schools, to improve educational opportunities for children. The program will be administered by the State Treasurer, who will disseminate information about it to financial institutions and issue guidelines in coordination with the Statewide Charter School Board. Eligible lending institutions, which are financial institutions that agree to participate and can hold state funds, will review loan applications from education service entities for infrastructure projects like new construction or renovations. The State Treasurer will then review these applications and place state funds, such as certificates of deposit, with the participating lending institutions at a reduced interest rate. In return, the lending institutions must lend these funds to the education service entities at an interest rate that reflects a similar reduction from their usual borrowing rates, with a maximum loan amount of $1,000,000 and a maximum term of ten years, potentially renewable. The State of Oklahoma, the Statewide Charter School Board, and the State Treasurer will not be liable for loan defaults by the education service entities. The program is set to become effective on November 1, 2026.