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28	28	STATE OF OKLAHOMA
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30	30	1st Session of the 60th Legislature (2025)
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32	32	HOUSE BILL 2841 By: Burns
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38	38	AS INTRODUCED
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40	40	An Act relating to public finance; amending 62 O.S.
41	41	2021, Section 2306, which relates to the Board of
42	42	Investors of the Tobacco Settlement Endowment Trust
43	43	Fund; providing for investments of certain amount of
44	44	funds in eligible venture capital entities ; and
45	45	providing an effective date.
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50	50	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
51	51	SECTION 1. AMENDATORY 62 O.S. 2021, Section 2306, is
52	52	amended to read as follows:
53	53	Section 2306. A. The Board of Investors of the Tobacco
54	54	Settlement Endowment Trust Fund shall discharge their duties as
55	55	trustees of the Tobacco Settlement Endowment Trust Fund:
56	56	1. With the care, skill, prudence, and diligence, under the
57	57	circumstances then prevailing, that a prudent person acting in a
58	58	like capacity and familiar with such matters would use in the
59	59	conduct of an enterprise of a like character and with like aims;
60	60	2. By diversifying the investments in the trust fund so as to
61	61	minimize the risk of large losses, unless, under the circumstances,
62	62	it is clearly prudent not to do so; and
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89	89	3. In accordance with the laws, documents, and instruments
90	90	governing the trust fund ;
91	91	4. By investment of at least four percent (4%) of funds in
92	92	eligible Oklahoma venture capital companies or eligible Oklahoma
93	93	venture capital fund of funds;
94	94	5. As used in this section, "eligible Oklahoma venture capital
95	95	company" means a business entity that meets the defin ition of
96	96	"venture capital fund" set forth in 17 CFR Section 275.203(l) -1 and
97	97	which:
98	98	a. has five or more investors, and no investor, including
99	99	their closely related family members and affiliates ,
100	100	may own or have a capital interest in more than forty
101	101	percent (40%) of the eligible Oklahoma venture capital
102	102	company's capitalization,
103	103	b. as used in this subsection, "closely related" means
104	104	any of the following in relation to the investor or
105	105	the investor's spouse:
106	106	(1) parents or grandparents,
107	107	(2) children, grandchildren or their spouses, or
108	108	(3) siblings or their spouses and their children ,
109	109	c. has either:
110	110	(1) its principal place of business in the State of
111	111	Oklahoma, or
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138	138	(2) has more than fifty percent (50%) of its assets,
139	139	operations, and employees in the State of
140	140	Oklahoma, and
141	141	d. is included on the list maintained by the Oklahoma
142	142	Department of Commerce pursuant to subsection D of
143	143	Section 2401 of this title.
144	144	Eligible Oklahoma venture capital company shall also include any
145	145	special purpose vehicle created and managed by an eligible Oklahoma
146	146	venture capital company for the sole purpose of invest ing in a
147	147	single eligible Oklahoma business venture; and
148	148	6. "Eligible Oklahoma venture capital fund of funds" means a
149	149	business entity that invests more than fifty percent (50%) o f its
150	150	aggregate capital contributions and uncalled committed capital in
151	151	the equity of "venture capital funds" as defined in 1 7 CFR Section
152	152	275.203(l)-1 and that meets the requirements set forth in
153	153	subparagraphs a through d of paragraph 5 of this subsection .
154	154	B. The Board of Investors shall retain qualified investment
155	155	managers, eligible Oklahoma venture capital companies, or eligible
156	156	Oklahoma venture fund of funds, as applicable, to provide for the
157	157	investment of the monies of the trust fund. The investment
158	158	managers, eligible Oklahoma venture capital companies, or eligible
159	159	Oklahoma venture fund of funds shall be chosen by a solicitation of
160	160	proposals on a competitive basis pursuant to standards set by the
161	161	Board of Investors. The investment managers , eligible Oklahoma
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188	188	venture capital companies, or eligible Oklahoma venture fund of
189	189	funds shall manage those monies of the trust fund allocated to the
190	190	investment managers, eligible Oklahoma venture capital companies, or
191	191	eligible Oklahoma venture fund of funds in compliance with the
192	192	overall investment guidelines set by the Board of Investors. The
193	193	monies of the trust fund allocated to the investment managers ,
194	194	eligible Oklahoma venture capital companies, or eligible Oklahoma
195	195	venture fund of funds shall be managed by the investment managers,
196	196	eligible Oklahoma venture capital companies, or eligible Oklahoma
197	197	venture fund of funds in accordance with the investment guidelines
198	198	and other directions of the Board of Investors. The investment
199	199	managers, eligible Oklahoma venture c apital companies, or eligible
200	200	Oklahoma venture fund of funds may sell investments and realize
201	201	losses if such action is considered advantageous to longer -term
202	202	return maximization. Because of the total return objective, no
203	203	distinction shall be made for mana gement and performance evaluation
204	204	purposes between realized and unrealized cap ital gains and losses.
205	205	The Board of Investors may have the State Treasurer manage those
206	206	monies not specifically allocated to the investment managers ,
207	207	eligible Oklahoma venture c apital companies, or eligible Oklahoma
208	208	venture fund of funds .
209	209	C. The trust fund may be invested in the manner in which a
210	210	prudent person would invest it and consistent with the manner that
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237	237	state retirement funds are invested. Investment as required by
238	238	paragraph 4 of subsection A of this section is deemed to be prudent.
239	239	D. The Board of Investors shall select a custodial bank to
240	240	settle transactions involving the investment of funds in the trust
241	241	fund and to hold custody of the securities in the trust fund
242	242	portfolio. The custodian shall be a bank or trust company offering
243	243	pension fund master trustee and master custodial services. The
244	244	custodian shall be chosen by a solicitation of proposals on a
245	245	competitive basis pursuant to standards set by the Board of
246	246	Investors. The Board of Investors may also select professional
247	247	investment consultants, attorneys, auditors, and actuaries to assist
248	248	the Board of Investors in carrying out its fiduciary
249	249	responsibilities. All these professionals shall be selected by a
250	250	solicitation of proposals on a competitive basis pursuant to
251	251	standards set by the Board of Investors.
252	252	E. The Board of Investors shall choose the professional
253	253	custodians and managers of the assets of the trust fund, eligible
254	254	Oklahoma venture capital companies, or eligible Oklahoma venture
255	255	fund of funds, shall establish investment and fund m anagement
256	256	guidelines, and shall adopt an investment policy. The selection of
257	257	investment managers, eligible Oklahoma venture capital companies, or
258	258	eligible Oklahoma venture fund of funds, investment consultants,
259	259	auditors, and actuaries, and a custodian bank shall be exempt from
260	260	the provisions of the Oklahoma Central Purchasing Act.
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287	287	F. The Board of Investors shall set aside cash reserves from
288	288	the earnings of the Tobacco Settlement Endowment Trust Fund if
289	289	requested by the Board of Directors of the Tobacco Se ttlement
290	290	Endowment Trust Fund pursuant to subsection B of Section 10 2310 of
291	291	this act title.
292	292	G. The State Treasurer shall provide any necessary staff
293	293	support to the Board of Inv estors. The cost of up to two full -time-
294	294	equivalent employees for the Office of the State Treasurer may be
295	295	considered as an administrative expense of the trust fund. However,
296	296	the amount provided to the State Treasurer for this purpose shall be
297	297	determined by the Board of Directors of the Tobacco Settlement
298	298	Endowment Trust Fund.
299	299	SECTION 2. This act shall become effective November 1, 202 5.
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301	301	60-1-11153 MAH 12/23/24
302	302

Oklahoma 2025 Regular Session

Oklahoma House Bill HB2841 Compare Versions