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An Act
ENROLLED HOUSE
BILL NO. 2765 By: Caldwell (Trey) and Kane of
the House
and
Hall and Haste of the
Senate
An Act relating to state investing; amending 62 O.S.
2021, Sections 2401, as amended by Section 2, Chapter
375, O.S.L. 2024, 2402, and 2403, as amended by
Section 3, Chapter 375, O.S.L. 2024 (62 O.S. Supp.
2024, Sections 2401, 2402, and 2403), which relate to
the Invest in Oklahoma Program; reassigning the
program from the Oklahoma Center for the Advancement
of Science and Technology to the State Treasurer;
authorizing certain types of investments within
limitation; eliminating redundant language; providing
new and modifying existing requirements and
limitations associated with the Invest in Oklahoma
Program; authorizing approval, consent, process
development duties, and oversight responsibilities to
certain Board; requiring and limiting certain actions
of the State Treasurer; authorizing the investment of
certain funds at certain levels; defining and
limiting certain term; authorizing and limiting the
promulgation and establishment of rules; amending 62
O.S. 2021, Section 71.1, which relates to the Cash
Management and Investment Oversight Commission;
renaming the Cash Management and Investment Oversight
Commission the Invest in Oklahoma Board;
restructuring Board membership; clarifying language;
establishing specific authority and providing for the
administration of the Board; modifying meeting
frequency requirements; eliminating and modifying
certain reporting requirements; establishing certain
confirmation and approval authority and requirement;
amending 62 O.S. 2021, Section 89.2, which relates to
State Treasurer investments; modifying reporting
requirements; authorizing certain investment at
certain level; referencing defined term; authorizing
ENR. H. B. NO. 2765 Page 2
certain actions related to custodial accounts; and
providing an effective date.
SUBJECT: State investing
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 2401, as
amended by Section 2, Chapter 375, O.S.L. 2024 (62 O.S. Supp. 2024,
Section 2401), is amended to read as follows:
Section 2401. A. The Oklahoma Center for the Advancement of
Science and Technology (OCAST) State Treasurer shall create an
"Invest In Oklahoma" program to provide entities in this state with
funds for opportunities to invest in Oklahoma-based private equity
funds, venture capital funds and, growth funds. Opportunities for
investment shall also include private equity funds, venture capital
funds and growth funds that make substantial investments in this
state, and direct investments in Oklahoma companies to the extent
allowable under the Oklahoma Constitution.
B. OCAST shall select venture capital and growth funds to
qualify for investments within the Invest In Oklahoma Program
Subject to final approval of the Invest in Oklahoma Board, the State
Treasurer may retain directly or through a contractual relationship
qualified investment advisors and fiduciary managers to assist in
the selection of the investments authorized under this act. Prior
to submission for confirmation and approval, the State Treasurer's
Office shall confirm with the Securities and Exchange Commission and
Oklahoma Securities Commission that the investment advisor or
fiduciary manager is in good standing. The Treasurer shall choose
an advisor or manager, based on factors including but not limited
to:
1. Rate of return;
2. Years of operation;
3. Sufficiency of capitalization;
4. Investment performance track record;
5. Differentiation and sustainability of investment strategy;
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6. Fee structure;
7. Background of limited partners; and
8. Ratio of capital invested in this state;
9. Investment professional with ten (10) or more years of
experience in venture capital, private equity and real estate
investing; and
10. Investment professional has experience with Oklahoma
investing.
C. OCAST The State Treasurer acting within parameters
established by the Invest in Oklahoma Board shall exercise
judgement:
1. Exercise judgment and care, under circumstances then
prevailing, which persons of prudence, discretion and intelligence
exercise in the management of their own affairs, for investment,
considering the probable safety of their capital as well as the
probable income to be derived when determining qualifying venture
capital and growth funds to ensure the funds are being appropriately
managed and invested.
D. OCAST shall develop a request for proposal that includes the
factors provided in subsection B of this section. OCAST shall
maintain a list of available venture capital and growth funds which
are participating in the Invest In Oklahoma Program in which public
entities are encouraged to invest; and
2. Develop processes and procedures for requesting, accepting,
and decision criteria for proposals related to investments
authorized under the provisions of this act.
SECTION 2. AMENDATORY 62 O.S. 2021, Section 2402, is
amended to read as follows:
Section 2402. The following public entities are encouraged to
and may invest up to five percent (5%) of their rolling three (3)
year assets under management with the Invest In Oklahoma Program
approved venture capital and growth funds as provided in Section 2
of this act:
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1. The Board of Investors of the Tobacco Settlement Endowment
Trust Fund;
2. The Commissioners of the Land Office;
3. The Teachers’ Retirement System of Oklahoma;
4. The Oklahoma Public Employees Retirement System;
5. The Oklahoma Firefighters Pension and Retirement System;
6. The Oklahoma Police Pension and Retirement System;
7. The Oklahoma Law Enforcement Retirement System;
8. The State of Oklahoma Uniform Retirement System for Justices
and Judges; and
9. The Department of Wildlife Conservation Retirement Fund.
B. The State Treasurer, acting within parameters established by
the Invest in Oklahoma Board is authorized to and may place cash
balance amounts in service with the Invest In Oklahoma program. For
purposes of this subsection, the term "cash balance amounts" shall
not include any monies deposited in or directed for deposit to:
1. The General Revenue Fund;
2. The Revenue Stabilization Fund;
3. The Education Reform Revolving Fund;
4. The Rate Preservation Fund;
5. Any Fund created under the Oklahoma Constitution;
6. Any fund from which the Legislature through law has
authorized, appropriated, or transferred monies within the preceding
three (3) fiscal years; or
7. Any revolving fund in the State Treasury specified for
direct appropriation or authorization from the Legislature, or any
revolving fund assigned to a state agency, unless such state agency
specifically authorizes such investments from such fund and such
authorization was approved by Invest in Oklahoma Board.
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SECTION 3. AMENDATORY 62 O.S. 2021, Section 2403, as
amended by Section 3, Chapter 375, O.S.L. 2024 (62 O.S. Supp. 2024,
Section 2403), is amended to read as follows:
Section 2403. The Oklahoma Center for the Advancement of
Science and Technology shall State Treasurer may promulgate rules
and establish processes and procedures as needed to enforce
implement and administer the provisions of the Invest In Oklahoma
Act, provided such rules, processes, and procedures do not conflict
with or contradict directives or limitations established by Invest
in Oklahoma Board.
SECTION 4. AMENDATORY 62 O.S. 2021, Section 71.1, is
amended to read as follows:
Section 71.1. A. There is hereby created the Cash Management
and Investment Oversight Commission Invest in Oklahoma Board. The
Commission Board shall consist of five (5) members as follows:
1. The Director of the Office of Management and Enterprise
Services Governor, or designee;
2. The Bank Commissioner Lieutenant Governor, or designee;
3. The Administrator of the Oklahoma Department of Securities
State Treasurer, or designee;
4. One citizen member appointed by the Speaker of the House of
Representatives who shall have a demonstrated expertise in public or
private investment finance and An appointee of the Speaker of the
House of Representatives who shall serve at the Speaker's pleasure;
and
5. One citizen member appointed by the President Pro Tempore of
the State Senate who shall be a certified public accountant or
public accountant with a demonstrated expertise in public or private
auditing procedures and An appointee of the President Pro Tempore of
the Oklahoma State Senate who shall serve at the President Pro
Tempore's pleasure.
B. The appointed and designated members shall have no direct or
indirect business relationship with the State Treasurer or the State
Treasurer's Office.
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C. The Commission Governor or Governor's designee shall elect
from its membership a serve as chairperson and vice-chairperson.
Such officers shall serve one-year terms and may be reelected.
There shall be an Executive Review Committee of the Cash Management
and Investment Oversight Commission consisting of the Director of
the Office of Management and Enterprise Services, the Bank
Commissioner and the Administrator of the Oklahoma Department of
Securities or their respective designees. The Director of the
Office of Management and Enterprise Services shall call a meeting to
organize the Executive Review Committee. The Executive Review
Committee shall elect from its membership a chairperson who shall
serve for a period of one (1) year and who may be reelected. The
Executive Review Committee shall meet at such times as it deems
necessary for the performance of its duties.
D. The Commission Board shall hold regular meetings at least
once each not less than one per quarter, and at such other times as
it deems necessary for the performance of its duties. The date,
time and place of the meetings shall be set by the Commission
chairperson. The Office of Management and Enterprise Services State
Treasurer shall provide the administrative support required by the
Commission Board. The Commission Board shall be staffed by the
Office of Management and Enterprise Services efforts under the
control of the State Treasurer who shall prepare all materials and
information needed by the Commission Board to perform its duties and
responsibilities. Meetings of the Commission and of the Executive
Review Committee of the Commission Board shall be subject to the
Oklahoma Open Meeting Act, and their records shall be public records
pursuant to the Oklahoma Open Records Act.
E. The Commission in conjunction with the State Auditor and
Inspector Board shall develop a standardized and uniform reporting
system which the State Treasurer shall use to make the reports
required by Section 89.7 of this title. The Commission Board shall
prescribe such forms in order to obtain an objective and accurate
analysis of the investment of state funds by the State Treasurer and
to obtain an accurate analysis of investment performance according
to an objective standard established by the Commission Board. The
Commission Board shall not be subject to the provisions of the
Administrative Procedures Act for purposes of developing the
reporting system required by this subsection. The Commission Board
shall review the reports prepared by the State Treasurer pursuant to
Section 89.7 of this title. The Commission Board shall review with
the State Treasurer investment strategies and practices and the
development of internal auditing procedures and practices. The
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Commission Board shall review the reports submitted by the State
Treasurer and shall identify any event, transaction or trend which
the Commission Board determines to represent a violation or
potential violation of law or public policy regarding the investment
of state funds. The Commission Board shall specifically identify
its concerns or objections and shall communicate such concerns or
objections in writing to the State Treasurer.
F. The Commission staff State Treasurer shall submit maintain a
written report available to each member of the Commission for each
month of the calendar year Board which specifically identifies
entities with whom or with which the State Treasurer has transacted
business related to investment of any state funds during the
applicable reporting period. Any person or entity to whom or to
which any form of compensation has been or will be paid for services
rendered to the State Treasurer's Office related to the investment
of state funds shall be identified in the such report. The Such
report shall also be submitted available to the Director of the
Office of Management and Enterprise Services, the State Auditor and
Inspector, the Speaker of the House of Representatives, the
President Pro Tempore of the Senate and the Governor.
G. Members of the Commission Board shall serve without
compensation, except for travel, pursuant to the State Travel
Reimbursement Act, to be paid by the appointing authority.
H. The Commission may make written recommendations for changes
in legislation to the Legislature or in the policies or procedures
and practices of the State Treasurer to the State Treasurer.
I. The Commission Board shall determine the positions,
including but not limited to the investment officer, in the State
Treasurer's Office which shall require criminal background
investigations by the Oklahoma State Bureau of Investigation. The
Bureau shall advise the State Treasurer and the Cash Management and
Investment Oversight Commission in writing of the results of the
investigation establish and adopt investment parameters related to
investments in Oklahoma-based private equity funds, venture capital
funds, growth funds, and direct investments in Oklahoma companies
authorized under the Invest in Oklahoma program; provided that by a
unanimous vote of the Board such parameters may be exceeded with
regard to investments to the extent allowable under the Oklahoma
Constitution.
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I. The Board shall exercise confirmation and approval authority
over the appointment and contractual relationships of qualified
investment advisors and fiduciary managers engaged by the State
Treasurer to assist in the selection of the investments authorized
under the Invest in Oklahoma program.
SECTION 5. AMENDATORY 62 O.S. 2021, Section 89.2, is
amended to read as follows:
Section 89.2. A. The State Treasurer is directed to invest the
maximum amount of funds under control of the State Treasurer
consistent with good business practices. Except as otherwise
provided for by law, the investments shall earn not less than the
rate for comparable maturities on United States Treasury
obligations. Except as otherwise provided for by law, the State
Treasurer may purchase and invest only in:
1. Obligations of the United States Government, its agencies
and instrumentalities, or other obligations fully insured or
unconditionally guaranteed as to the payment of principal and
interest by the United States government or any of its agencies and
instrumentalities;
2. Collateralized or insured certificates of deposit and other
evidences of deposit at banks, savings banks, savings and loan
associations and credit unions located in this state;
3. Negotiable certificates of deposit issued by a nationally or
state-chartered bank, a savings bank, a savings and loan association
or a state-licensed branch of a foreign bank. Purchases of
negotiable certificates of deposit shall not exceed ten percent
(10%) of the cash available for investment which may be invested
pursuant to this section. Not more than one-half (1/2) of the ten
percent (10%) limit shall be invested in any one financial
institution specified in this paragraph;
4. Prime banker's acceptances which are eligible for purchase
by the Federal Reserve System and which do not exceed two hundred
seventy (270) days' maturity. Purchases of prime banker's
acceptances shall not exceed ten percent (10%) of the cash available
for investment which may be invested pursuant to this section. Not
more than three-fourths (3/4) of the ten percent (10%) limit shall
be invested in any one commercial bank pursuant to this paragraph;
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5. Prime commercial paper which shall not have a maturity that
exceeds one hundred eighty (180) days nor represent more than ten
percent (10%) of the outstanding paper of an issuing corporation.
Purchases of prime commercial paper shall not exceed seven and one-
half percent (7 1/2%) of the cash available for investment which may
be invested pursuant to this section;
6. Investment grade obligations of state and local governments,
including obligations of Oklahoma state public trusts which possess
the highest rating from at least one nationally recognized rating
agency acceptable to the State Treasurer. Purchases of investment
grade obligations of state and local governments shall not exceed
ten percent (10%) of the cash available for investment which may be
invested pursuant to this section;
7. Repurchase agreements, provided that such agreements are
included within the written investment policy required by subsection
D of this section that have underlying collateral consisting of
those items and those restrictions specified in paragraphs 1 through
6 of this subsection;
8. Money market funds and short term bond funds regulated by
the Securities and Exchange Commission and which investments consist
of those items and those restrictions specified in paragraphs 1
through 7 of this subsection; and
9. Bonds, notes, debentures or other similar obligations of a
foreign government which the International Monetary Fund lists as an
industrialized country and for which the full faith and credit of
such nation has been pledged for the payment of principal and
interest; provided, that any such security shall be rated at least
A- or better by Standard & Poor's Corporation or A3 or better by
Moody's Investors Service, or an equivalent investment grade by a
securities ratings organization accepted by the National Association
of Insurance Commissioners; and provided further, that the total
investment in such foreign securities at any one time shall not
exceed five percent (5%) of the cash available for investment which
may be invested pursuant to this section. In no circumstance shall
investments be made in bonds, notes, debentures or any similar
obligations of a foreign government that:
a. is identified as a state sponsor of terrorism by the
United States Department of State, or
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b. any authoritarian or totalitarian government the
sovereign powers of which are exercised through a
single person or group of persons who are not elected
by any form of legitimate popular voting.
B. Investments shall be made with judgment and care, under
circumstances then prevailing, which persons of prudence, discretion
and intelligence exercise in the management of their own affairs,
not for speculation, but for investment, considering the probable
safety of their capital as well as the probable income to be
derived.
C. The State Treasurer shall appoint an investment officer who
shall perform duties related to the investment of state funds in the
Office of the State Treasurer. The investment officer shall not
perform or supervise any accounting functions, data processing
functions or duties related to the documentation or settlement of
investment transactions.
D. Investments of public funds by the State Treasurer shall be
made in accordance with written policies developed by the State
Treasurer. The written investment policies shall address:
1. Liquidity;
2. Diversification;
3. Safety of principal;
4. Yield;
5. Maturity and quality; and
6. Capability of investment management.
The State Treasurer shall place primary emphasis on safety and
liquidity in the investment of public funds. To the extent
practicable taking into account the need to use sound investment
judgment, the written investment policies shall include provision
for utilization of a system of competitive bidding in the investment
of state funds. The written investment policies shall be designed
to maximize yield within each class of investment instrument,
consistent with the safety of the funds invested.
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E. The Except as provided in subsection H of this section, the
State Treasurer shall select one custodial bank to settle
transactions involving the investment of state funds under the
control of the State Treasurer. The State Treasurer shall review
the performance of the custodial bank at least once every year. The
State Treasurer shall require a written competitive bid every five
(5) years. The custodial bank shall have a minimum of Five Hundred
Million Dollars ($500,000,000.00) in assets to be eligible for
selection. Any out-of-state custodial bank shall have a service
agent in the State of Oklahoma so that service of summons or legal
notice may be had on such designated agent as is now or may
hereafter be provided by law. In order to be eligible for
selection, the custodial bank shall allow electronic access to all
transaction and portfolio reports maintained by the custodial bank
involving the investment of state funds under control of the State
Treasurer. The access shall be given to both the State Treasurer
and to the Cash Management and Investment Oversight Commission. The
requirement for electronic access shall be incorporated into any
contract between the State Treasurer and the custodial bank.
Neither the State Treasurer nor the custodial bank shall permit any
of the funds under the control of the State Treasurer or any of the
documents, instruments, securities or other evidence of a right to
be paid money to be located in any place other than within a
jurisdiction or territory under the control or regulatory power of
the United States Government.
F. The investment policy shall specify the general philosophy,
policies and procedures to be followed in the investment of state
monies by the State Treasurer. The investment policy shall include,
but not be limited to, the following:
1. Policy objectives;
2. Performance measure objectives;
3. Authority for investment program;
4. Possible use of an investment advisory committee;
5. Reporting and documentation of investments;
6. Authorized investment instruments;
7. Diversification of investment risk;
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8. Maturity limitations;
9. Selections of financial institutions;
10. Interest controls;
11. Safekeeping of investments;
12. Investment ethics; and
13. Formal adoption of policy.
G. The State Treasurer shall provide weekly reports of all
investments made by the State Treasurer if requested by the Cash
Management and Investment Oversight Commission, and list any
commissions, fees or payments made for services regarding such
investments. The reports required by this subsection shall be
delivered to the Commission within three (3) business days of the
end of the applicable week The State Treasurer may invest cash
balance amounts as defined and limited by Section 2402 of this title
in the Invest in Oklahoma program.
H. The State Treasurer is hereby authorized to establish
internal custodial accounts within the State Treasury, and enter
contractual relationships for custodial account services with
private institutions as needed, for the implementation and
administration of the Invest in Oklahoma program.
H. I. Not later than July 1 of each year, the State Treasurer
shall forward a copy of the written investment policy to the
Governor, the Speaker of the House of Representatives, the President
Pro Tempore of the Senate, the Attorney General, the Bank
Commissioner, and the Director of the Office of Management and
Enterprise Services. In addition, the State Treasurer shall
maintain one copy of the investment policy in the office of the
State Treasurer for public inspection during regular business hours.
Copies of any modifications to the investment policy shall be
forwarded to the Governor, Speaker of the House of Representatives,
President Pro Tempore of the Senate, and each member of the Cash
Management and Investment Oversight Commission.
SECTION 6. This act shall become effective November 1, 2025.
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Passed the House of Representatives the 20th day of May, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the 22nd day of May, 2025.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________