FUND. IT IS MY OPINION THAT A STRICT READING OF 62 O.S. 203 (1981) DICTATE THE ABSURD RESULT THAT HIGHER EDUCATION IN OKLAHOMA IS DENIED THE OPPORTUNITY TO EARN MUCH HIGHER RETURNS ON ITS INVESTMENTS BY ALLOWING ITS SPECIAL AGENCY FUNDS TO BE INVESTED WITH OTHER STATE FUNDS. SUCH A READING ALSO JEOPARDIZES THE CONSTITUTIONALITY OF 203 GIVEN THE PROHIBITION AGAINST DEVOTING TAXES COLLECTED FOR ONE PURPOSE TO ANY OTHER PURPOSE. SEE ARTICLE X, SECTION 19. THIS PROBLEM COULD ARISE IF OUR SUPREME COURT AFFIRMED THE COURT OF APPEALS' CONCLUSION THAT INTEREST FOLLOWS THE PRINCIPAL. IT IS UNLIKELY THAT THE LEGISLATURE INTENDED FOR SECTION 203 TO OPERATE AS AN INHIBITION TO INVESTMENT OF HIGHER EDUCATION FUNDS THROUGH THE TREASURER'S OFFICE.
HOWEVER, DUE TO THE FACT THAT THE LAW IS UNCLEAR IN THIS AREA, I RECOMMEND THAT SPECIFIC STATUTORY LANGUAGE BE ADOPTED TO CLARIFY THE AUTHORITY OF THE TREASURER AND REGENTS TO PURSUE THIS POLICY.
(DOUGLAS B. ALLEN)