| 42 | 35 | | |
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| 43 | 36 | | |
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| 44 | 37 | | |
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| 45 | 38 | | An Act relating to public finance; modifying |
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| 46 | 39 | | investment procedures relating to local governments; |
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| 47 | 40 | | modifying authorized investments; repealing 62 O.S. |
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| 48 | 41 | | 2021, Sections 348.1 and 348.3, as amended by |
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| 49 | 42 | | Sections 1 and 2, Chapter 78, O.S.L. 2023 (62 O.S. |
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| 50 | 43 | | Supp. 2024, Sections 348.1 and 384.3), which relate |
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| 51 | 44 | | to the investment of funds; providing for |
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| 52 | 45 | | codification; and providing an effective date. |
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| 53 | 46 | | |
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| 54 | 47 | | |
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| 55 | 50 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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| 56 | 51 | | SECTION 1. NEW LAW A new section of law to be codified |
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| 57 | 52 | | in the Oklahoma Statutes as Section 348 of Title 62, unless there is |
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| 58 | 53 | | created a duplication in numbering, reads as follows: |
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| 59 | 54 | | A. The governing board of any political subdivision of this |
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| 60 | 55 | | state, as defined by Section 152 of Title 51 of the Oklahoma |
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| 61 | 56 | | Statutes, may authorize a written investment policy, ordinance, or |
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| 62 | 57 | | resolution permitting and directing the treasurer or other dul y |
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| 63 | 58 | | authorized officer or employee of the political subdivision to |
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| 64 | 59 | | invest public funds. Any written investment policy shall address |
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| 65 | 60 | | liquidity, diversification, safety of principal, yield, maturity and |
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| 95 | 89 | | written investment policy shall, to the extent practicable, provide |
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| 96 | 90 | | for the use of competitive bids when purchasing brokered securities. |
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| 97 | 91 | | However, this section shall not be construed as preventing the use |
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| 98 | 92 | | of sound investment judgment when purchasing brokered securities. |
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| 99 | 93 | | B. The written policy, ordinance, or resolution may authorize |
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| 100 | 94 | | the treasurer or other duly authorized officer or employee of the |
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| 101 | 95 | | political subdivision to purchase and invest in any or all of the |
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| 102 | 96 | | following: |
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| 103 | 97 | | 1. Direct obligations of the federal government, the payment of |
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| 104 | 98 | | which the full faith and credit of the federal government is |
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| 105 | 99 | | pledged, its agencies , or its instrumentalities; and of federal |
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| 106 | 100 | | agencies or federal government-sponsored enterprise obligations, |
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| 107 | 101 | | participations, or other instruments, including those issued by or |
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| 108 | 102 | | fully guaranteed as to principal and interest by federal agencies or |
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| 109 | 103 | | federal government-sponsored enterprises; |
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| 110 | 104 | | 2. Obligations, the payment of which the full faith and credit |
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| 111 | 105 | | of this state is pledged, or investment grade obligations of state |
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| 112 | 106 | | agencies, public trusts, authorities , or instrumentalities rated A+ |
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| 113 | 107 | | or better by S&P Global or A1 or better by Moody ’s Ratings or |
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| 114 | 108 | | equivalent by other securities ratings organization; |
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| 115 | 109 | | 3. Collateralized o r insured certificates of deposits of banks , |
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| 116 | 110 | | savings and loan associations, savings banks , or credit unions |
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| 146 | 139 | | 4. Negotiable certif icates of deposit issued by a nationally or |
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| 147 | 140 | | state-chartered bank, a savings bank, a savings and loan |
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| 148 | 141 | | association, or a state-licensed branch of a foreign bank; |
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| 149 | 142 | | 5. Savings accounts or savings certificates of banks , savings |
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| 150 | 143 | | and loan associations, or credit unions where the funds are either |
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| 151 | 144 | | secured by acceptable collateral or fully insured by the Federal |
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| 152 | 145 | | Deposit Insurance Corporation or the National Credit Union |
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| 153 | 146 | | Administration; |
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| 154 | 147 | | 6. Direct debt obligations of county, municipal, or school |
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| 155 | 148 | | districts or their aut horities for which an ad valorem tax may be |
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| 156 | 149 | | levied or paid by bond and revenue anticipation note; and of money |
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| 157 | 150 | | judgments against a county, municipal, or school district paid by |
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| 158 | 151 | | bonds or bond and revenue anticipation notes issued by a public |
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| 159 | 152 | | trust of which the county, municipality, or school district is a |
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| 160 | 153 | | beneficiary thereof; |
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| 161 | 154 | | 7. Prime banker’s acceptances which are eligible for purchase |
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| 162 | 155 | | by the Federal Reserve System and which do not exceed two hundred |
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| 163 | 156 | | seventy (270) days’ maturity; provided, purchase of prime banker’s |
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| 164 | 157 | | acceptances shall not exceed ten percent (10%) of the surplus funds |
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| 165 | 158 | | of the political subdivision which may be invested according to this |
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| 166 | 159 | | section; however, the restrictions of this paragraph shall not apply |
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| 196 | 188 | | 8. Prime commercial paper which shall not have a maturity that |
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| 197 | 189 | | exceeds one hundred eighty (180) days nor represent more than ten |
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| 198 | 190 | | percent (10%) of the outstanding p aper of an issuing corporation. |
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| 199 | 191 | | Purchases of prime commercial paper shall not exceed seven and one - |
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| 200 | 192 | | half percent (7 1/2%) of the surplus funds of the political |
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| 201 | 193 | | subdivision which may be invested pursuant to this section ; however, |
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| 202 | 194 | | the restrictions in this pa ragraph shall not apply to purchases of |
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| 203 | 195 | | prime commercial paper by qualified pooled investment programs |
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| 204 | 196 | | established under paragraph 11 of this section ; |
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| 205 | 197 | | 9. Repurchase agreements that have underlying collateral |
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| 206 | 198 | | consisting of those items specified in paragrap hs 1 through 8 of |
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| 207 | 199 | | this subsection; |
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| 208 | 200 | | 10. Money market funds regulated by the United States |
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| 209 | 201 | | Securities and Exchange Commission and which investments consist of |
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| 210 | 202 | | those items and those restrictions specified in paragraphs 1 th rough |
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| 211 | 203 | | 9 of this subsection; or |
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| 212 | 204 | | 11. Qualified pooled investment programs, the investments of |
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| 213 | 205 | | which consist of those items specified in paragraphs 1 through 10 of |
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| 214 | 206 | | this subsection. To be qualified, a pooled investment program must |
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| 215 | 207 | | be governed through an interlocal cooperative agreement forme d |
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| 216 | 208 | | pursuant to Sections 1001 through 1008 of Title 74 of the Oklahoma |
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| 217 | 209 | | Statutes. |
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| 247 | 238 | | investments in the items specified in paragrap hs 1 through 10 of |
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| 248 | 239 | | subsection B, notwithstanding any differences in the written |
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| 249 | 240 | | investment plans adopted by the governing body. |
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| 250 | 241 | | D. The income received on any investment may be placed in the |
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| 251 | 242 | | general fund, rainy day fund, capital reserve fund, or the fund f rom |
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| 252 | 243 | | which the investment was made. |
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| 253 | 244 | | E. Investments shall be made with judgment and care, under |
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| 254 | 245 | | circumstances then prevailing, which persons of prudence, |
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| 255 | 246 | | discretion, and intelligence exercise in the management of their own |
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| 256 | 247 | | affairs, not for speculation, but for investment, considering the |
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| 257 | 248 | | probable safety of their capital as well as the probable income to |
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| 258 | 249 | | be derived. |
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| 259 | 250 | | F. This section shall not prohibit public retirement systems |
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| 260 | 251 | | from investing under any other system authorized under state law. |
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| 261 | 252 | | SECTION 2. REPEALER 62 O.S. 2021, Sections 348.1 and |
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| 262 | 253 | | 348.3, as amended by Section s 1 and 2, Chapter 78, O.S.L. 2023 (62 |
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| 263 | 254 | | O.S. Supp. 2024, Sections 348.1 and 384.3), are hereby repealed. |
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| 264 | 255 | | SECTION 3. This act shall become effective Nov ember 1, 2025. |
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| 265 | 256 | | |
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