{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-1305.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-1305.1","heading":"Discharge of duties - Investment of monies - Indemnity","body":"insurance - Investment committee - Investment managers - Funds and\n\ncustodian of investment fund and revenues - Investment plan -\n\nQuarterly financial report.\n\n(1) The Chief Executive Officer (CEO) of the Oklahoma Health\n\nCare Authority and the Oklahoma Employees Insurance and Benefits\n\nBoard shall discharge their duties with respect to the Oklahoma\n\nEmployees Insurance and Benefits Act, the State Employees Flexible\n\nBenefits Act and the State Employees Disability Program Act solely\n\nin the interest of said acts and:\n\n(a) for the exclusive purpose of:\n\n(i) providing benefits to the participants and their\n\ndependents, and\n\n(ii) defraying reasonable expenses of administering the\n\nOklahoma Employees Insurance and Benefits Act, the\n\nState Employees Flexible Benefits Act and the State\n\nEmployees Disability Program Act;\n\n(b) with the care, skill, prudence, and diligence under the\n\ncircumstances then prevailing that a prudent person acting in a like\n\ncapacity and familiar with such matters would use in the conduct of\n\nan enterprise of a like character and with like aims;\n\n(c) by diversifying investments so as to minimize the risk of\n\nlarge losses, unless under the circumstances it is clearly prudent\n\nnot to do so; and\n\n(d) in accordance with the laws, documents and instruments\n\ngoverning the Oklahoma Employees Insurance and Benefits Act, the\n\nState Employees Flexible Benefits Act and the State Employees\n\nDisability Program Act.\n\n(2) The Authority may procure insurance indemnifying the\n\nmembers of the Board and the CEO from personal loss or\n\naccountability from liability resulting from action or inaction.\n\n(3) The CEO may establish an investment committee. The\n\ninvestment committee shall be composed of not more than three (3)\n\nmembers of the Board selected by the CEO. The committee shall make\n\nrecommendations to the full Board on all matters related to the\n\nchoice of custodians and managers of the assets of the Oklahoma\n\nHealth Care Authority relating to the Oklahoma Employees Insurance\n\nand Benefits Act, on the establishment of investment and fund\n\nmanagement guidelines, and in planning future investment policy.\n\nThe committee shall have no authority to act on behalf of the Board\n\nor CEO in any circumstances whatsoever. No recommendation of the\n\ncommittee shall have effect as an action of the Board or CEO nor\n\ntake effect without the approval of the Board or CEO.\n\n(4) The Oklahoma Health Care Authority, based on recommendation\n\nof the Board shall retain qualified investment managers to provide\n\nfor the investment of the monies received by the Authority. The\n\ninvestment managers shall be chosen by a solicitation of proposals\n\non a competitive bid basis pursuant to standards set by the Board.\n\nSubject to the overall investment guidelines set by the Board, the\n\ninvestment managers shall have full discretion in the management of\n\nthose monies of the Authority allocated to the investment managers.\n\nThe Board shall oversee the management of those monies not\n\nspecifically allocated to the investment managers. The monies of\n\nthe Authority allocated to the investment managers shall be actively\n\nmanaged by the investment managers, which may include selling\n\ninvestments and realizing losses if such action is considered\n\nadvantageous to longer term return maximization. Because of the\n\ntotal return objective, no distinction shall be made for management\n\nand performance evaluation purposes between realized and unrealized\n\ncapital gains and losses.\nto the investment managers shall be actively\n\nmanaged by the investment managers, which may include selling\n\ninvestments and realizing losses if such action is considered\n\nadvantageous to longer term return maximization. Because of the\n\ntotal return objective, no distinction shall be made for management\n\nand performance evaluation purposes between realized and unrealized\n\ncapital gains and losses.\n\n(5) Funds and revenues for investment by the investment\n\nmanagers or the Oklahoma Health Care Authority shall be placed with\n\na custodian recommended by the Board. The custodian shall be a bank\n\nor trust company offering pension fund master trustee and master\n\ncustodial services. The custodian shall be chosen by a solicitation\n\nof proposals on a competitive bid basis pursuant to standards set by\n\nthe Board. In compliance with the investment policy guidelines of\n\nthe Board, the custodian bank or trust company shall be\n\ncontractually responsible for ensuring that all monies of the\n\nAuthority are invested in income-producing investment vehicles at\n\nall times. If a custodian bank or trust company has not received\n\ndirection from the investment managers of the Authority as to the\n\ninvestment of the monies of the Authority in specific investment\n\nvehicles, the custodian bank or trust company shall be contractually\n\nresponsible to the Authority for investing the monies in\n\nappropriately collateralized short-term interest-bearing investment\n\nvehicles.\n\n(6) Prior to August 1 of each year, the Board shall develop a\n\nwritten investment plan for the monies received by the Authority.\n\n(7) The Administrator shall compile annual financial statements\n\nof all the activity of the Authority on a calendar year basis. The\n\nfinancial statements shall be compiled pursuant to accounting\n\nprinciples generally accepted in the United States. The report\n\nshall include several relevant measures of investment value,\n\nincluding acquisition cost and current fair market value with\n\nappropriate summaries of total holdings and returns. The report\n\nshall contain combined and individual rate of returns of the\n\ninvestment managers by category of investment, over periods of time.\n\nThe report shall be distributed to the Board and the CEO of the\n\nOklahoma Health Care Authority.","path":["OK Code","Title 74"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os74.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"53e2631c392652c775d4881c7acd7901cc9bd726d5563772897889cfc98dcd9f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-1304.1","next":"us-ok/okla.-stat.-tit.-74-74-1305.2"},"notice":"GroundRules: Original legal text. Not legal advice."}