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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 579 By: Bergstrom
AS INTRODUCED
An Act relating to investments; amending 62 O.S.
2021, Section 89.2, which relates to investments of
public funds; prohibiting public funds from being
used for investments or obligations associated with
Chinese government and entities; prohibiting certain
retirement systems from investing with Chinese
government and entities; updating statutory language;
updating statutory references; pr oviding for
codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. 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 matur ities on United States Treasury
obligations. Except as otherwise provided for by law, the State
Treasurer may purchase and invest only in:
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1. Obligations of the United States Government 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 b anks, savings banks, savings and loan
associations and credit unions located i n 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 i nvested 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 th at
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 inve stment 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 E 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 s pecified 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
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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 S&P Global or A3 or
better by Moody’s Investors Service, or an equivalent invest ment
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 avail able 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
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. No investments, commercial paper, bonds, notes, debentures ,
or other similar obligations shall be made that are associated with
any entity owned or controlled by the government of China, any
political subdivision of China, or any corporation that is
headquartered in China or whose principal operations are located in
China.
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C. 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 capit al as well as the probable income to be
derived.
C. D. 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. E. Investments of public f unds 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
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judgment, the writte n investment policies shall include provision
for utilization of a system of c ompetitive 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.
E. F. 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 t he 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 this state 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
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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 government.
F. G. 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;
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. H. The State Treasurer shall provide weekly reports of all
investments made by the State Treasurer if requested by the Cash
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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.
H. I. Not later than July 1 of each year, the State Treasurer
shall forward a copy of the written inves tment 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 T reasurer 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 Hou se of Representatives,
President Pro Tempore of the Senate, and each member of the Cash
Management and Investment Oversight Commission.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 945 o f Title 74, unless there is
created a duplication in numbering, reads as follows:
No investments, commercial paper, bonds, notes, debentures , or
other similar obligations shall be made by the Oklahoma Firefighters
Pension and Retirement System, the Oklahom a Police Pension and
Retirement System, the Uniform Retirement System for Just ices and
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Judges, the Oklahoma Law Enforcement Retirement System, the
Teachers’ Retirement System of Oklahoma, the Oklahoma Public
Employees Retirement System, and the retirement plan adopted by the
Oklahoma Wildlife Conservation Commission that are associated with
any entity owned or controlled by the government of China, any
political subdivision of China, or any corporation that is
headquartered in China or whose principal opera tions are located in
China.
SECTION 3. This act shall become effective November 1, 2025.
60-1-1081 QD 1/13/2025 6:10:09 PM