Oklahoma House Bill HB2870

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21
• Report Pass: 2/4/21
• Engrossed: 3/10/21
• Refer: 3/17/21
• Report Pass: 3/24/21
• Enrolled: 4/21/21
• Passed: 4/26/21

Caption

Commissioners of the Land Office; encumbrance requirements; custodial banks; effective date; emergency

Impact

The alterations proposed by HB 2870 impact key statutes governing how the state manages its funds, particularly those linked to education and public infrastructure. By allowing the selection of multiple custodial banks, the bill aims to promote a competitive environment that could lead to better management of public funds. However, the increase in the duration between competitive bids raises concerns about potential complacency among banks and reduced opportunities for new market entrants, which could inhibit optimal performance in the long term.

Summary

House Bill 2870, relating to the Commissioners of the Land Office, aims to amend existing statutes regarding the management of custodial banks and the investment of state funds. The bill authorizes the Commissioners to make fee payments to multiple custodial banks and investment consultants and modifies the frequency of required competitive bids from custodial banks from every five years to every ten years. This change is intended to streamline processes and enhance the investment capabilities of the Commissioners while ensuring compliance with state regulations.

Sentiment

The sentiment surrounding HB 2870 appears to be mainly supportive among financial oversight bodies and some legislators, who view the adjustments as necessary for modernizing investment practices in Oklahoma. However, some critics express reservations regarding the decision to extend the time frame of competitive bidding. They worry that this could lead to a lack of vigilance in selecting the most effective financial partners, which could ultimately affect the returns on investments made with state funds.

Contention

One notable point of contention involves the potential implications of allowing the Commissioners more flexibility in selecting custodial banks. Detractors are concerned that this could lead to favoritism or lack of transparency in the bidding processes. Furthermore, public accountability regarding how custodial banks manage these investment funds is crucial, and there are calls for enhanced reporting requirements to ensure that the revenues generated align with the best interests of Oklahoma's beneficiaries.