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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 60th Legislature (2025)
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57	57	SENATE BILL 579 By: Bergstrom
58	58
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63	63	AS INTRODUCED
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65	65	An Act relating to investments; amending 62 O.S.
66	66	2021, Section 89.2, which relates to investments of
67	67	public funds; prohibiting public funds from being
68	68	used for investments or obligations associated with
69	69	Chinese government and entities; prohibiting certain
70	70	retirement systems from investing with Chinese
71	71	government and entities; updating statutory language;
72	72	updating statutory references; pr oviding for
73	73	codification; and providing an effective date .
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79	79	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
80	80	SECTION 1. AMENDATORY 62 O.S. 2021, Section 89.2, is
81	81	amended to read as follows:
82	82	Section 89.2. A. The State Treasurer is directed to invest the
83	83	maximum amount of funds under control of the State Treasurer
84	84	consistent with good business practices. Except as otherwise
85	85	provided for by law, the investments shall earn not less than the
86	86	rate for comparable matur ities on United States Treasury
87	87	obligations. Except as otherwise provided for by law, the State
88	88	Treasurer may purchase and invest only in:
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140	140	1. Obligations of the United States Government government, its
141	141	agencies and instrumentalities, or other obligations fully insured
142	142	or unconditionally guaranteed as to the payment of principal and
143	143	interest by the United States government or any of its agencies and
144	144	instrumentalities;
145	145	2. Collateralized or insured certificates of deposit and other
146	146	evidences of deposit at b anks, savings banks, savings and loan
147	147	associations and credit unions located i n this state;
148	148	3. Negotiable certificates of deposit issued by a nationally or
149	149	state-chartered bank, a savings bank, a savings and loan association
150	150	or a state-licensed branch of a foreign bank. Purchases of
151	151	negotiable certificates of deposit shall not exceed ten percent
152	152	(10%) of the cash available for investment which may be invested
153	153	pursuant to this section. Not more than one -half (1/2) of the ten
154	154	percent (10%) limit shall be i nvested in any one financial
155	155	institution specified in this paragraph;
156	156	4. Prime banker’s acceptances which are eligible for purchase
157	157	by the Federal Reserve System and which do not exceed two hundred
158	158	seventy (270) days’ maturity. Purchases of prime banker ’s
159	159	acceptances shall not exceed ten percent (10%) of the cash available
160	160	for investment which may be invested pursuant to this section. Not
161	161	more than three-fourths (3/4) of the ten percent (10%) limit shall
162	162	be invested in any one commercial bank pursuant to this paragraph;
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214	214	5. Prime commercial paper which shall not have a maturity th at
215	215	exceeds one hundred eighty (180) days nor represent more than ten
216	216	percent (10%) of the outstanding paper of an issuing corporation.
217	217	Purchases of prime commercial paper shall not exceed seven and one -
218	218	half percent (7 1/2%) of the cash available for investment which may
219	219	be invested pursuant to this section;
220	220	6. Investment grade obligations of state and local governments,
221	221	including obligations of Oklahoma state public trusts which possess
222	222	the highest rating from at least one nationally recognized rating
223	223	agency acceptable to the State Treasurer. Purchases of investment
224	224	grade obligations of state and local governments shall not exceed
225	225	ten percent (10%) of the cash available for inve stment which may be
226	226	invested pursuant to this section;
227	227	7. Repurchase agreements, provided that such agreements are
228	228	included within the written investment policy required by subsection
229	229	D E of this section that have underlying collateral consisting of
230	230	those items and those restrictions specified in paragraphs 1 through
231	231	6 of this subsection;
232	232	8. Money market funds and short term bond funds regulated by
233	233	the Securities and Exchange Commission and which investments consist
234	234	of those items and those restrictions s pecified in paragraphs 1
235	235	through 7 of this subsection; and
236	236	9. Bonds, notes, debentures or other similar obligations of a
237	237	foreign government which the International Monetary Fund lists as an
238	238
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289	289	industrialized country and for which the full faith and credit of
290	290	such nation has been pledged for the payment of principal and
291	291	interest; provided, that any such security shall be rated at least
292	292	A- or better by Standard & Poor’s Corporation S&P Global or A3 or
293	293	better by Moody’s Investors Service, or an equivalent invest ment
294	294	grade by a securities ratings organization accepted by the National
295	295	Association of Insurance Commissioners; and provided further, that
296	296	the total investment in such foreign securities at any one time
297	297	shall not exceed five percent (5%) of the cash avail able for
298	298	investment which may be invested pursuant to this section. In no
299	299	circumstance shall investments be made in bonds, notes, debentures
300	300	or any similar obligations of a foreign government that:
301	301	a. is identified as a state sponsor of terrorism by the
302	302	United States Department of State, or
303	303	b. any authoritarian or totalitarian government the
304	304	sovereign powers of which are exercised through a
305	305	single person or group of persons who are not elected
306	306	by any form of legitimate popular voting.
307	307	B. No investments, commercial paper, bonds, notes, debentures ,
308	308	or other similar obligations shall be made that are associated with
309	309	any entity owned or controlled by the government of China, any
310	310	political subdivision of China, or any corporation that is
311	311	headquartered in China or whose principal operations are located in
312	312	China.
313	313
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364	364	C. Investments shall be made with judgment and care, under
365	365	circumstances then prevailing, which persons of prudence, discretion
366	366	and intelligence exercise in the management of their own affairs,
367	367	not for speculation, but for investment, considering the probable
368	368	safety of their capit al as well as the probable income to be
369	369	derived.
370	370	C. D. The State Treasurer shall appoint an investment officer
371	371	who shall perform duties related to the investment of state funds in
372	372	the Office of the State Treasurer. The investment officer shall not
373	373	perform or supervise any accounting functions, data processing
374	374	functions or duties related to the documentation or settlement of
375	375	investment transactions.
376	376	D. E. Investments of public f unds by the State Treasurer shall
377	377	be made in accordance with written policies developed by the State
378	378	Treasurer. The written investment policies shall address:
379	379	1. Liquidity;
380	380	2. Diversification;
381	381	3. Safety of principal;
382	382	4. Yield;
383	383	5. Maturity and quality ; and
384	384	6. Capability of investment management.
385	385	The State Treasurer shall place primary emphasis on safety and
386	386	liquidity in the investment of public funds. To the extent
387	387	practicable, taking into account the need to use sound investment
388	388
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439	439	judgment, the writte n investment policies shall include provision
440	440	for utilization of a system of c ompetitive bidding in the investment
441	441	of state funds. The written investment policies shall be designed
442	442	to maximize yield within each class of investment instrument,
443	443	consistent with the safety of the funds invested.
444	444	E. F. The State Treasurer shall select one custodial bank to
445	445	settle transactions involving the investment of state funds under
446	446	the control of the State Treasurer. The State Treasurer shall
447	447	review the performance of t he custodial bank at least once every
448	448	year. The State Treasurer shall require a written competitive bid
449	449	every five (5) years. The custodial bank shall have a minimum of
450	450	Five Hundred Million Dollars ($500,000,000.00) in assets to be
451	451	eligible for selection . Any out-of-state custodial bank shall have
452	452	a service agent in the State of Oklahoma this state so that service
453	453	of summons or legal notice may be had on such designated agent as is
454	454	now or may hereafter be provided by law. In order to be eligible
455	455	for selection, the custodial bank shall allow electronic access to
456	456	all transaction and portfolio reports maintained by the custodial
457	457	bank involving the investment of state funds under control of the
458	458	State Treasurer. The access shall be given to both the State
459	459	Treasurer and to the Cash Management and Investment Oversight
460	460	Commission. The requirement for electronic access shall be
461	461	incorporated into any contract between the State Treasurer and the
462	462	custodial bank. Neither the State Treasurer nor the custodial bank
463	463
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514	514	shall permit any of the funds under the control of the State
515	515	Treasurer or any of the documents, instruments, securities or other
516	516	evidence of a right to be paid money to be located in any place
517	517	other than within a jurisdiction or territory under the control or
518	518	regulatory power of the United States Government government.
519	519	F. G. The investment policy shall specify the general
520	520	philosophy, policies and procedures to be followed in the investment
521	521	of state monies by the State Treasurer. The investment policy shall
522	522	include, but not be limited to, the following:
523	523	1. Policy objectives;
524	524	2. Performance measure objectives;
525	525	3. Authority for investment program;
526	526	4. Possible use of an investment advisory committee;
527	527	5. Reporting and documentation of investments;
528	528	6. Authorized investment instruments;
529	529	7. Diversification of investment risk;
530	530	8. Maturity limitations;
531	531	9. Selections of financial institutions;
532	532	10. Interest controls;
533	533	11. Safekeeping of investments;
534	534	12. Investment ethics; and
535	535	13. Formal adoption of policy.
536	536	G. H. The State Treasurer shall provide weekly reports of all
537	537	investments made by the State Treasurer if requested by the Cash
538	538
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589	589	Management and Investment Oversight Commission, and list any
590	590	commissions, fees or payments made for services regarding such
591	591	investments. The reports required by this subsection shall be
592	592	delivered to the Commission within three (3) business days of the
593	593	end of the applicable week.
594	594	H. I. Not later than July 1 of each year, the State Treasurer
595	595	shall forward a copy of the written inves tment policy to the
596	596	Governor, the Speaker of the House of Representatives, the President
597	597	Pro Tempore of the Senate, the Attorney General, the Bank
598	598	Commissioner, and the Director of the Office of Management and
599	599	Enterprise Services. In addition, the State T reasurer shall
600	600	maintain one copy of the investment policy in the office of the
601	601	State Treasurer for public inspection during regular business hours.
602	602	Copies of any modifications to the investment policy shall be
603	603	forwarded to the Governor, Speaker of the Hou se of Representatives,
604	604	President Pro Tempore of the Senate, and each member of the Cash
605	605	Management and Investment Oversight Commission.
606	606	SECTION 2. NEW LAW A new section of law to be codified
607	607	in the Oklahoma Statutes as Section 945 o f Title 74, unless there is
608	608	created a duplication in numbering, reads as follows:
609	609	No investments, commercial paper, bonds, notes, debentures , or
610	610	other similar obligations shall be made by the Oklahoma Firefighters
611	611	Pension and Retirement System, the Oklahom a Police Pension and
612	612	Retirement System, the Uniform Retirement System for Just ices and
613	613
614	614
615	615	Req. No. 1081 Page 9 1
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664	664	Judges, the Oklahoma Law Enforcement Retirement System, the
665	665	Teachers’ Retirement System of Oklahoma, the Oklahoma Public
666	666	Employees Retirement System, and the retirement plan adopted by the
667	667	Oklahoma Wildlife Conservation Commission that are associated with
668	668	any entity owned or controlled by the government of China, any
669	669	political subdivision of China, or any corporation that is
670	670	headquartered in China or whose principal opera tions are located in
671	671	China.
672	672	SECTION 3. This act shall become effective November 1, 2025.
673	673
674	674	60-1-1081 QD 1/13/2025 6:10:09 PM

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB579 Compare Versions