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An Act
ENROLLED SENATE
BILL NO. 957 By: Alvord of the Senate
and
Lawson, Hildebrant, and
Lepak of the House
An Act relating to public finance; modifying
investment procedures relating to local governments;
modifying authorized investments; repealing 62 O.S.
2021, Sections 348.1 and 348.3, as amended by
Sections 1 and 2, Chapter 78, O.S.L. 2023 (62 O.S.
Supp. 2024, Sections 348.1 and 384.3), which relate
to the investment of funds; providing for
codification; and providing an effective date.
SUBJECT: Public finance
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 board of any political subdivision of this
state, as defined by Section 152 of Title 51 of the Oklahoma
Statutes, may authorize a written investment policy, ordinance, or
resolution permitting and directing the treasurer or other duly
authorized officer or employee of the political subdivision to
invest public funds. Any written investment policy shall address
liquidity, diversification, safety of principal, yield, maturity and
quality, and capability of investment management, with primary
emphasis on safety and liquidity in the investment of funds. A
written investment policy shall, to the extent practicable, provide
for the use of competitive bids when purchasing brokered securities.
However, this section shall not be construed as preventing the use
of sound investment judgment when purchasing brokered securities.
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B. The written policy, ordinance, or resolution may authorize
the treasurer or other duly authorized officer or employee of the
political subdivision to purchase and invest in any or all of the
following:
1. Direct obligations of the federal government, the payment of
which the full faith and credit of the federal government is
pledged, its agencies, or its instrumentalities; and of 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, public trusts, authorities, or instrumentalities rated A+
or better by S&P Global or A1 or better by Moody’s Ratings or
equivalent by other securities ratings organization;
3. Collateralized or insured certificates of deposits of banks,
savings and loan associations, savings banks, or credit unions
located within the state and located out 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 certificates of banks, savings
and loan associations, 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 by a public
trust of which the county, municipality, or school district is a
beneficiary thereof;
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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 political subdivision which may be invested according to this
section; however, the restrictions of this paragraph shall not apply
to purchases of prime banker’s acceptances by qualified pooled
investment programs established under paragraph 11 of this section;
8. Prime commercial paper which shall not have a maturity that
exceeds one hundred eighty (180) days nor represent more than ten
percent (10%) of the outstanding paper of an issuing corporation.
Purchases of prime commercial paper shall not exceed seven and one-
half percent (7 1/2%) of the surplus funds of the political
subdivision which may be invested pursuant to this section; however,
the restrictions in this paragraph shall not apply to purchases of
prime commercial paper by qualified pooled investment programs
established under paragraph 11 of this section;
9. Repurchase agreements that have underlying collateral
consisting of those items specified in paragraphs 1 through 8 of
this subsection;
10. Money market funds regulated by the United States
Securities and Exchange Commission and which investments consist of
those items and those restrictions specified in paragraphs 1 through
9 of this subsection; or
11. Qualified pooled investment programs, the investments of
which consist of those items specified in paragraphs 1 through 10 of
this subsection. To be qualified, a pooled investment program must
be governed through an interlocal cooperative agreement formed
pursuant to Sections 1001 through 1008 of Title 74 of the Oklahoma
Statutes.
C. Any political subdivision which elects to participate in a
local government investment pool shall be deemed to have authorized
investments in the items specified in paragraphs 1 through 10 of
subsection B, notwithstanding any differences in the written
investment plans adopted by the governing body.
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D. The income received on any investment may be placed in the
general fund, rainy day fund, capital reserve fund, or the fund from
which the investment was made.
E. Investments shall be made with judgment and care, under
circumstances then prevailing, which persons of prudence,
discretion, and intelligence exercise in the management of their own
affairs, not for speculation, but for investment, considering the
probable safety of their capital as well as the probable income to
be derived.
F. This section shall not prohibit public retirement systems
from investing under any other system authorized under state law.
SECTION 2. REPEALER 62 O.S. 2021, Sections 348.1 and
348.3, as amended by Sections 1 and 2, Chapter 78, O.S.L. 2023 (62
O.S. Supp. 2024, Sections 348.1 and 384.3), are hereby repealed.
SECTION 3. This act shall become effective November 1, 2025.
ENR. S. B. NO. 957 Page 5
Passed the Senate the 12th day of March, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the 30th day of April, 2025.
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: _________________________________