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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 957 By: Alvord
AS INTRODUCED
An Act relating to public finance; modifying
investment procedures relating to local governments;
modifying authorized investments; repealing 62 O.S.
2021, Sections 348.1, as amended by Section 1,
Chapter 78, O.S.L. 2023 , and 348.3, as amended by
Section 2, Chapter 78, O.S.L. 2023 (62 O.S. Supp.
2024, Sections 348.1 and 348.3), which relate to the
investment of funds; providing for codifica tion;
providing an effective date ; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 348 of Title 62, unless there is
created a duplication in numbering, reads as follows:
A. The governing body of any political subdivision of this
state, the authority of a public entity having as its beneficiary a
political subdivision, or the governing board of a qu alified pooled
investment program established pursuant to paragraph 10 of
subsection B of this section shall authorize a n investment policy by
ordinance or resolution directing the treasurer to invest public
funds. The authorized investment policy shall a ddress liquidity,
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diversification, safety of principal, yield, maturity and quality,
and capability of investment management. In accordance with the
investment policy, the treasurer shall place primary emphasis on
safety and liquidity in the investment of funds. The treasurer
shall, to the extent practicable, use competitive bids when
purchasing brokered securities and shall seek to maximize yield
within each class of investment instrument consistent with the
safety of the funds invested.
B. The written policy, ordinance, or resolution may authorize
the treasurer of the entity or of the qualified pooled investment
program to purchase and invest in any of the following:
1. Direct obligations of the federal government, the payment of
which the full faith a nd credit of the federal government is
pledged, its agencies, or its instrumen talities; federal agencies or
federal government-sponsored enterprise obligations, participations,
or other instruments, including those issued by or fully guaranteed
as to principal and interest by federal agencies or federal
government-sponsored enterprises;
2. Obligations, the payment of which the full faith and credit
of this state is pledged , or investment grade obligations of state
agencies, authorities, or instrumentalitie s rated A+ or better by
Standard and Poor’s Corporation or A1 or better by Moo dy’s Investors
Service or equivalent by another securities ratings organization;
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3. Collateralized or insured certificates of deposits of banks
or credit unions located within t he state and located out side of the
state when such certificates of deposits are secured by acceptable
collateral;
4. Negotiable certificates of deposit issued by a nationally or
state-chartered bank, a savings bank, a savings and loan
association, or a state-licensed branch of a foreign bank;
5. Savings accounts or savings certif icates of banks or credit
unions where the funds are either secured by acceptable collateral
or fully insured by the Federal Deposit Insurance Corporation or the
National Credit Union Administration;
6. Direct debt obligations of county, municipal, or school
districts or their authorities for which an ad valorem tax may be
levied or paid by bond and revenue anticipation note; and of money
judgments against a county, municipal, or school district paid by
bonds or bond and revenue anticipation notes issued b y a public
trust of which the county, municipality, or school district is a
beneficiary thereof;
7. Prime banker’s acceptances which are eligible for purchase
by the Federal Reserve System and which do not exceed two hundred
seventy (270) days’ maturity; provided, purchase of prime banker ’s
acceptances shall not exceed ten percent (10%) of the surplus funds
of the city or county which may be invested according to this
section; provided further, the restrictions of this paragraph shall
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not apply to purchase s of prime banker’s acceptances by qualified
pooled investment programs established under paragraph 10 of this
section;
8. Repurchase agreements that have underlying collateral
consisting of those items specified in paragraphs 1 through 7 of
this subsection;
9. Money market funds regulated by the United States Securities
and Exchange Commission and which investments consist of those items
and those restrictions specified in para graphs 1 through 8 of this
subsection; and
10. Qualified pooled investment pr ograms, the investments of
which consist of those items specified in paragraphs 1 through 8 of
this subsection. To be qualified, a pooled investment program for
county funds or for city or town funds or a combination thereof must
be governed through an interlocal cooperative agreement formed
pursuant to Sections 1001 through 1008 of Title 74 of the Oklahoma
Statutes. Prior to participating in a qualified pooled investment
program, the governing body of such county, city , or town must
authorize participati on through its written investment policy .
Notwithstanding differences in permissible investment securities, a
public subdivision that elects to participate in a local government
investment pool within this section con sents to investment
securities that are legally authorized within the pool .
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C. The income received on an investment may be placed in the
general fund, rainy day fund, capital reserve fund, or the fund from
which the investment was made.
D. Investments shall be made with judgment and care, un der
circumstances then prevailing, which persons of prudence,
discretion, and intelligence exercise in the management of their own
affairs, not for speculation, but for investmen t, considering the
probable safety of the capital as well as the probable income to be
derived.
SECTION 2. REPEALER 62 O.S. 2021, Sections 348.1, as
amended by Section 1, Chapter 78, O.S.L. 2023 , and 348.3, as amended
by Section 2, Chapter 78, O.S.L. 2023 (62 O.S. Supp. 2024, Section s
348.1 and 348.3), are hereby repealed.
SECTION 3. This act shall become effective July 1, 2025.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-1-1181 MSBB 1/16/2025 1:02:59 PM