Public finance; modifying investment procedures relating to local governments. Effective date.

New investment rules for Oklahoma local governments

Beginning November 1, 2025, the law replaces Oklahoma’s prior local-government investment rules. Governing boards may direct authorized staff to invest public money through a written policy, ordinance, or resolution. Policies must address access to cash, spreading risk, protecting principal, earnings, maturity, and investment-management ability. Safety and access to cash come first. Policies must provide for competitive bids on brokered securities when practical, while allowing sound investment judgment. Allowed investments include federal obligations and federally guaranteed obligations. They also include state-backed obligations and obligations of state agencies, trusts, authorities, or similar bodies rated A+ by S&P or A1 by Moody’s, or equivalent. Governments may use insured or properly secured bank and credit-union deposits, including certificates of deposit from inside or outside Oklahoma. Negotiable certificates from specified banks, savings institutions, and state-licensed foreign-bank branches are also allowed. Eligible local-government debt includes qualifying tax-backed obligations and debt or judgments paid through bonds or revenue anticipation notes. Prime bankers’ acceptances must mature within 270 days and cannot exceed 10% of invested surplus funds. Prime commercial paper must mature within 180 days. Holdings cannot exceed 10% of the issuer’s outstanding paper or 7.5% of the local government’s surplus funds. Qualified pooled programs have exceptions to these limits and must operate under an interlocal cooperative agreement. Repurchase agreements must use eligible investments as collateral. SEC-regulated money market funds must hold eligible investments and follow the same restrictions. Qualified pooled programs may hold the listed investments. Joining a local-government investment pool authorizes the listed investments even when the government’s written plan differs. Investment income may go into the general fund, rainy day fund, capital reserve fund, or original fund. Officials must invest carefully, avoid speculation, and balance safety with likely income. Public retirement systems retain their separate investment authority. The law creates no direct household payment or duty.