The bill modifies investment procedures for local governments in Oklahoma by establishing a new section in the Oklahoma Statutes that allows governing boards of political subdivisions to create written investment policies. These policies must address key factors such as liquidity, diversification, safety of principal, yield, maturity, and investment management capability, with a strong emphasis on safety and liquidity. The bill also outlines a range of authorized investments, including direct obligations of the federal government, investment-grade obligations of state agencies, collateralized certificates of deposits, and various other financial instruments, while allowing for competitive bidding when purchasing brokered securities.

Additionally, the bill repeals existing sections 348.1 and 348.3 of Title 62, which previously governed the investment of funds, thereby streamlining the investment framework for local governments. It specifies that any income generated from these investments can be allocated to various funds, including the general fund or rainy day fund. The act is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 62-348.1, 62-2023, 62-348.3
Committee Substitute: 62-348.1, 62-348.3
Floor (House): 62-348.1, 62-348.3
Floor (Senate): 62-348.1, 62-348.3
Engrossed: 62-348.1, 62-348.3
Enrolled (final version): 62-348.1, 62-348.3