Committee approves transfer of Invest Oklahoma program to treasurer and allows up to 5% state investment in Oklahoma companies

Chairwoman Thompson explained Senate Bill 1090 would transfer the Invest Oklahoma program to the state treasurer, adjust the Cash Management and Investment Oversight Commission’s composition and reporting, and allow the treasurer to invest up to 5% of the maximum amount of funds under the treasurer’s control into the Invest Oklahoma program.

“Senate Bill 1090 transfers the Invest Oklahoma program to the treasurer, make[s] some changes to the cash management investment oversight commission, and allows the state treasurer to invest up to 5% of the max amount of funds under his control…to invest in Oklahoma program,” Chairwoman Thompson said when she presented the bill.

Questions from senators focused on the scope of the change, reporting frequency, oversight membership, conflict-of-interest safeguards and the scale of money that 5% could represent. Senator Kurt asked about monitoring and whether advisers would be retained; Thompson said the bill allows the treasurer flexibility to retain advisers but does not mandate it. On conflict-of-interest language removed from the oversight membership list, Thompson said existing state statutes already prohibit illegal conflicts and would be enforced.

Senator Kirk and others pressed for protections for taxpayer funds and pointed to past state programs where returns or oversight were problematic. Kirk estimated — based on the treasurer’s holdings cited in committee — that 5% could equal around $900 million and said that risk justified tighter safeguards; committee members asked the sponsor to explore additional statutory safeguards.

After debate, the committee approved the bill and the clerk announced 7 ayes and 1 nay. Chairwoman Thompson closed by urging support, calling it “a really, really great opportunity to bring more working capital to Oklahoma” and to help small businesses.

The committee also discussed reporting changes from monthly to quarterly and whether elected officials replacing appointed financial experts on oversight would affect expertise; the sponsor said the bill provides for fiduciary advisers and that statutes already address conflicts.