ENGROSSED HOUSE BILL NO. 2629 - Summary

• Legislature finds that Governmental Accounting Standards Board (GASB) Statements 67 and 68 create compliance issues for Oklahoma political subdivisions regarding pension obligation disclosures already reflected in existing system liabilities.

• Establishes that Section 26 of Article X of the Oklahoma Constitution limits general obligation debt for counties (5% maximum) and cities, towns, and school districts (10% maximum) of net assessed valuation, and such debt requires three-fifths voter approval.

• Legislature finds potential conflict between GASB disclosure requirements and Oklahoma Constitutional debt limitations, as financial report disclosures could mislead third parties about actual legal obligations of political subdivisions.

• Provides suggested language for political subdivisions to use in financial disclosure documents clarifying constitutional debt restrictions and distinguishing legal obligations from other pension-related information in GASB-compliant reports.

• Becomes effective November 1, 2014.