Okla. Stat. tit. 60, § 60-177.2

Oklahoma Commission on School and County Funds Management - Powers

and duties.

A. No public trust, school district or county shall issue any

bonds, notes, certificates of participation, certificates of

indebtedness or any other evidence of indebtedness, excluding

nonpayable warrants and agreements with a depository bank to honor

payment of checks when there are insufficient funds, for the purpose

of short-term cash management by any school district or county

unless such school district or county shall have been approved for

participation by the Oklahoma Commission on School and County Funds

Management.

As used in this section, "short-term cash management" means any

borrowing or any method employed by a school district or county to

obtain funds in advance of the receipt of tax revenue, and shall

include, but not be limited to, the issuance of certificates of

indebtedness, certificates of participation, tax-anticipation notes,

bonds, notes, or any other evidence of indebtedness. It shall not

include debt issued pursuant to a vote of the electors of the school

district or county pursuant to the Constitution.

B. The Oklahoma Commission on School and County Funds

Management, shall consist of the State Superintendent of Public

Instruction, the Director of the Oklahoma Department of Career and

Technology Education, and the State Bond Advisor. The Commission

shall:

1. Receive requests of school districts and counties for

authorization to participate in a short-term cash management program

where the proceeds will be used to facilitate cash-flow management.

The requests must be received by the Commission on or before April 1

in order for the school district or county to be considered for

participation during the next fiscal year, unless such date is

extended by the Commission;

Oklahoma Statutes - Title 60. Property Page 125

2. Within five (5) business days of receiving a request,

forward the request to the appropriate certifying authority. If the

request and accompanying material meet the requirements of this act,

the certifying authority must return the request and accompanying

information to the Commission with a written review and comment

within sixty (60) days of receipt of the request from the

Commission. The certifying authority for school districts shall be

the State Superintendent of Public Instruction and for technology

center school districts, shall be the Director of the Oklahoma

Department of Career and Technology Education and for counties,

shall be the State Board of Equalization;

3. Approve or reject each request for participation, and

forward notice of the decision of the Commission to the requesting

school district or county and to the Office of the Governor. The

Commission shall approve or reject a request within thirty (30) days

following the date it receives the request and accompanying

information with a written review and comment from a certifying

authority;

4. Certify the need for funds generated by the proposed short-

term cash management based on the financial projections of the

school district or county, including the projected cash-flow

shortfall, estimated income, and anticipated surplus balances on

June 30 of the current fiscal year in the general and building funds

of the school district or county. Accumulative cash-flow shortfall

projections must be determined using the method specified by Section

148 of the Internal Revenue Code;

5. Establish reasonable limits for fees, commissions and other

compensation paid to any person or firm involved with the proposed

short-term cash management program;

6. Establish participation limitations for a school district or

a county using the method specified in Section 148 of the Internal

Revenue Code. No school district or county shall participate in a

short-term cash management program in an amount which exceeds the

determination of need pursuant to the accumulative cash-flow
or firm involved with the proposed

short-term cash management program;

6. Establish participation limitations for a school district or

a county using the method specified in Section 148 of the Internal

Revenue Code. No school district or county shall participate in a

short-term cash management program in an amount which exceeds the

determination of need pursuant to the accumulative cash-flow

projections as specified in paragraph 4 of this subsection or forty

percent (40%) of the approved annual budget of the school district

or county, whichever is less;

7. Establish limitations which prohibit school districts and

counties which are participating in a short-term cash management

program from issuing nonpayable warrants if proceeds are available

from the short-term cash management program;

8. Submit an annual report, by December 15 of each year, to the

Speaker of the House of Representatives, the President Pro Tempore

of the Senate, the Governor, the State Auditor and Inspector and the

Attorney General, detailing the participation of each school

district and county for the prior fiscal year in the short-term cash

management programs authorized by this act; and

Oklahoma Statutes - Title 60. Property Page 126

9. Prescribe methods and procedures by which school districts

or counties may request authorization to participate in short-term

cash management programs.

C. School districts and counties desiring to participate in a

short-term cash management program as provided in subsection A of

this section shall file a request with the Commission on such forms

as the Commission shall prescribe. Such request shall be

accompanied by:

1. A resolution adopted by the board of education of the school

district or by the county commissioners of a county. Such

resolution shall state that the school district or county intends to

and has need to participate in a short-term cash management program

and that the board of education or county commission has authorized

the submission of such request;

2. A letter signed by the underwriter of the short-term cash

management program that specifies the name and address of all

persons and firms receiving compensation, directly or indirectly,

involved with the proposed short-term cash management program. All

persons and firms designated shall not be paid out of school or

county funds. For purposes of this paragraph, school or county

funds shall not include the proceeds from certificates of

indebtedness or certificates of participation generated from a

short-term cash management program;

3. A verification from the Administrator of the Oklahoma

Department of Securities that all persons receiving compensation,

directly or indirectly, for providing advice to the school districts

or counties concerning participation in the program or for endorsing

participation in the program are appropriately registered with the

Oklahoma Department of Securities as investment advisers or

investment adviser representatives, as applicable, and that all

persons receiving compensation, directly or indirectly, for the

placement of the certificates of participation or like securities

with investors are registered as broker-dealers or agents, as

applicable;

4. The estimated income and expenditures of the school district

or county for the year for which the school district or county

wishes to participate in a short-term cash management program. The

appropriate certifying authority shall develop and provide an income

and expenditure disclosure form for use by a school district or

county which desires to participate in a short-term cash management

program which follows the applicable portions of the information

return required by Section 148 of the Internal Revenue Code. The

information supplied in the disclosure form must reflect the ability

of the school district or county to pay off an amount equal to the

district's or county's liability on the program from the income from
which desires to participate in a short-term cash management

program which follows the applicable portions of the information

return required by Section 148 of the Internal Revenue Code. The

information supplied in the disclosure form must reflect the ability

of the school district or county to pay off an amount equal to the

district's or county's liability on the program from the income from

the fiscal year of participation, prior to approval for

participation by the Commission. If the Commission determines that

Oklahoma Statutes - Title 60. Property Page 127

a question exists concerning any information submitted pursuant to

this subsection, the Commission may request any additional

information from the school district or county that it deems

necessary;

5. A copy of the most recent information return for a short-

term cash management program filed with the Internal Revenue Service

pursuant to Section 149(e) of the Internal Revenue Code;

6. An affidavit by all persons, firms, corporations or business

enterprises of any kind which provide services for compensation on

any financing to implement a short-term cash management program,

which shall be signed under oath on a form approved by the

Commission and which shall state that such persons, firms,

corporations or business enterprises have not given any money or

other thing of value, other than a bona fide campaign contribution,

to any public official or to any public employee of a school

district or county participating in such a cash management program.

Any such person, firm, corporation or business enterprise shall also

file a disclosure statement on a form approved by the Commission,

which shall disclose all campaign contributions of any kind made to

any public official of a school district or county participating in

such a short-term cash management program and shall also disclose

the identity of any officer, director, agent or employee of such

person, firm, corporation or business enterprise who is an officer

or employee of a school or county participating in a short-term cash

management program, or who is related to such officers or employees

within the third degree of affinity or consanguinity;

7. A notarized sworn affidavit executed by each member of a

board of education of a school district, the superintendent of

schools and the treasurer of the school district or by each county

commissioner of a county and the county treasurer, which states that

the person or any member of the immediate family of the person has

no direct or indirect financial interest in the short-term cash

management program being requested. The affidavit shall be on a

form prescribed by the Commission;

8. A summary report detailing all expenses incurred by a school

district or county in participating in a short-term cash management

program. The report shall be on a form prescribed by the

Commission; and

9. Any application and other materials including any other

necessary financial information, as may be required by the

Commission.

D. If the information required to be submitted pursuant to this

section meets all requirements established by the Commission and the

Commission has approved such information and participation, and the

participation is otherwise in accordance with law, the Oklahoma

Commission on School and County Funds Management shall authorize the

participation of the school district or county in the short-term

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cash management program. The Commission shall notify the school

district or county in writing, whether the requirements of this

section have been satisfied and approved.

E. School districts and counties participating in a short-term

cash management program authorized by this section shall report to

the Commission the probable income and expenses of anticipated

investment income. The report shall not include probable income or
sion shall notify the school

district or county in writing, whether the requirements of this

section have been satisfied and approved.

E. School districts and counties participating in a short-term

cash management program authorized by this section shall report to

the Commission the probable income and expenses of anticipated

investment income. The report shall not include probable income or

expenses related to participation in a short-term cash management

program.

F. The ability of a school district or county to issue general

obligation bonds shall not be modified by this act.

G. The Office of the Attorney General shall provide legal

assistance to the Oklahoma Commission on School and County Funds

Management.