Overview of Bond Oversight and Reform Act
The State of Oklahoma has provided for the comprehensive oversight of all State debt issuance. This oversight process began with the passage of the Bond Oversight and Reform Act (the “Act”) in 1987. The Act requires each proposed obligation that will be outstanding more than a single fiscal year to be reviewed and approved by the Council of Bond Oversight (the “Council”) prior to sale. The scope of the Council’s review includes consideration of the immediate and long-term fiscal impact of the obligation, the proposed method of sale, the structure of the issue and the public purpose to be served.
Council Makeup
The Council consists of five members, including two public members appointed by the Governor, one public member appointed by the Speaker of the Oklahoma House of Representatives, one public member appointed by the President Pro Tempore of the Oklahoma State Senate, and the Director of the Office of State Finance.
Council Duties
Staff support to the Council is provided by the State Treasurer’s Office. The Deputy for Debt management is charged with helping the Council ensure that each offering by a state agency, authority, trust, department, or public institution of higher education is undertaken in the most efficient, timely, and cost-effective manner possible.
The Deputy for Debt Management also provides advice and assistance to the Governor and Oklahoma Legislature on matters relating to capital planning, debt issuance and debt management. The Deputy for Debt Management also provides advice and support services to State Governmental Entities in the planning, structuring, and issuance of debt. Such services include assistance with the selection of financing teams, structuring of proposed issues, and pricing of the obligations. The Act authorizes the Deputy for Debt Management to provide assistance to local governments upon request. While the Office is authorized to charge for such services, assistance to local governments has always been provided without charge.
