Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB147

Introduced
2/1/21  
Refer
2/2/21  
Report Pass
2/24/21  
Engrossed
3/3/21  
Refer
3/22/21  
Report Pass
4/1/21  
Enrolled
4/15/21  

Caption

Commissioners of the Land Office; clarifying calculation of cap on investments in real property. Effective date. Emergency.

Impact

The bill has significant implications for state laws governing the investment of public funds. By refining the rules around investment caps and allowing specific property investments to be excluded from these caps, SB147 enhances the flexibility of the Commissioners in managing educational funds. This legislative change is intended to make the investment process more efficient and potentially yield higher returns on the investments, thereby benefiting the educational institutions supported by these funds. Additionally, it introduces annual reporting requirements to enhance transparency and accountability in the investment process.

Summary

Senate Bill 147 addresses the responsibilities and operational guidelines for the Commissioners of the Land Office regarding the investment of public funds, particularly focusing on the permanent school funds and other educational funds. The bill clarifies existing statutes, particularly around the calculation of investment limits and the inclusion of real property investments, establishing a clear framework for how investments should be managed to benefit both current and future beneficiaries. It aims to ensure that the investments are conducted in a prudent and well-regulated manner, adhering to strict guidelines on asset allocation and risk management.

Sentiment

The atmosphere surrounding SB147 appears to be generally supportive, as it brings necessary updates to an outdated framework that governs a critical aspect of state finance. By emphasizing responsible management and regular reporting, proponents likely view the bill as a step forward in enhancing fiscal accountability. Conversely, depending on discussions within the legislative committee, some concerns may arise regarding the balance between ensuring solid investment returns and the potential risks associated with increased investment in real property, which could suggest a need for careful monitoring.

Contention

Despite the overall supportive sentiment, there are potential points of contention surrounding how this bill alters the existing investment framework. Critics may raise concerns about reducing caution in the investment strategies, particularly around the cap adjustments for real property investments. Additionally, the introduction of a custodial bank requirement may lead to discussions on the effectiveness and transparency of such entities, especially if they are based out-of-state. This could lead to debates on ensuring that the interests of the beneficiaries are prioritized while navigating the complexities of investment regulations.

Companion Bills

No companion bills found.

Previously Filed As

OK HB2871

Commissioners of the Land Office; permanent school funds; investment caps; effective date; emergency.

OK SB146

Commissioners of the Land Office; allowing selection of one or more custodial banks. Effective date. Emergency.

OK HB2870

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

OK HB4199

Public lands; Commissioners of the Land Office; investment manager; effective date.

OK SB919

Commissioners of the Land Office; clarifying terms of agricultural and commercial leases; requiring value of real property leased by public entities to be accounted for in certain investment cap. Effective date.

OK SB519

Commissioners of the Land Office; authorizing the lease of property to certain charter schools. Effective date. Emergency.

OK SB519

Commissioners of the Land Office Modernization Act; clarifying conformance with the Administrative Procedures Act; requiring notice of certain publication. Effective date. Emergency.

OK HB4197

Public lands; Commissioners of the Land Office; Oklahoma Education Investment Trust; effective date.

OK HB2863

Public buildings and public works; state owned property; procedures for disposal and acquisition; Office of Management and Enterprise Services; Commissioners of the Land Office; effective date.

OK HB4198

Officers; Commissioners of the Land Office; open records; exemption; effective date.

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