State investing; Invest in Oklahoma Program; reassigning program; investments; rules renaming Cash Management and Investment Oversight Commission the Invest in Oklahoma Board; effective date.
HB2765 revises Oklahoma’s “Invest in Oklahoma” program and shifts its administration from the Oklahoma Center for the Advancement of Science and Technology (OCAST) to the State Treasurer. The bill directs the Treasurer, subject to oversight by a renamed Invest in Oklahoma Board, to manage the program’s selection of qualified investment advisors and fiduciary managers, establish processes and procedures, and oversee investments in Oklahoma-based private equity, venture capital, growth funds, and certain direct investments in Oklahoma companies. It also updates the program’s rules for fund selection, reporting, and approval, and authorizes the Treasurer to create internal custodial accounts and contract for custodial services needed to run the program.
The bill also expands and clarifies which public entities may participate and how much they may invest. Several retirement systems and other public funds are encouraged to invest up to 5% of their rolling three-year assets under management in approved funds, and the State Treasurer may place certain cash balance amounts into the program, subject to exclusions for constitutionally protected or otherwise restricted funds. HB2765 revises the State Treasurer’s general investment statute to expressly allow these program-related investments while preserving the Treasurer’s broader duty to invest prudently and maintain safety and liquidity as primary goals.
A major structural change is the replacement of the Cash Management and Investment Oversight Commission with the Invest in Oklahoma Board, along with a reworked membership structure and new authority. The Board gains confirmation and approval power over investment advisors and fiduciary managers, authority to set investment parameters for the program, and oversight responsibilities tied to reporting and compliance. The bill also modifies reporting requirements, meeting frequency, and administrative support arrangements, while preserving public meeting and open records requirements.
The general sentiment reflected in the vote history appears favorable but not unanimous. The bill advanced through both chambers with solid majorities, including 55-32 in the House and 35-11 in the Senate, suggesting broad support for the program’s reorganization and expansion. The committee and floor votes indicate that lawmakers were willing to move the measure forward, but the margins also show meaningful opposition.
The main points of contention likely center on governance and investment risk. The bill moves authority away from OCAST and concentrates more control in the State Treasurer’s office and the new board, which may raise concerns about oversight, independence, and political influence. Other potential concerns include allowing public retirement and treasury funds to be invested in higher-risk private equity and venture capital vehicles, the reduced or modified reporting requirements, and the extent to which the program should be able to use public money for in-state economic development investments.
HB2765 amends multiple sections of Title 62 governing state investments, the Invest in Oklahoma program, and the Cash Management and Investment Oversight Commission. It transfers program administration to the State Treasurer, renames and restructures the oversight body as the Invest in Oklahoma Board, changes board membership and authority, and authorizes new investment mechanisms including internal custodial accounts and contractual custodial services. The bill also updates the list of eligible public entities and clarifies limits on what funds may be invested, while preserving existing prudential investment standards and open government requirements.
The bill appears to have been generally supported as a modernization and expansion of Oklahoma’s in-state investment program, with clear majority approval in both chambers. At the same time, the nontrivial number of dissenting votes suggests some concern about the shift in control to the State Treasurer, the use of public funds in private investment vehicles, and the new oversight structure. Overall, the sentiment was favorable but cautious, with support for the program’s goals tempered by reservations about governance and risk.
The most notable contention is the transfer of authority from OCAST to the State Treasurer and the creation of a new board with confirmation and approval powers, which changes the balance of control over the program. Critics may also object to the use of retirement and treasury cash balances in venture capital, private equity, and growth funds, since these investments can be less liquid and more volatile than traditional public fund investments. Additional concerns include the reduction or alteration of reporting requirements and whether the new structure provides enough independent oversight and transparency.