Okla. Stat. tit. 74, § 74-12003

companies.

A. 1. The Treasurer shall prepare and maintain and provide to

each state governmental entity a list of financial companies that

boycott energy companies. In maintaining the list, the Treasurer

may:

a. review and rely, as appropriate in the Treasurer's

judgment, on publicly available information regarding

financial companies including information provided by

the state, nonprofit organizations, research firms,

international organizations, and governmental

entities, and

b. request written verification from a financial company

that it does not boycott energy companies and rely, as

appropriate in the Treasurer's judgment and without

conducting further investigation, research, or

inquiry, on a financial company's written response to

the request.

2. A financial company that fails to provide to the Treasurer a

written verification under subparagraph b of paragraph 1 of this

subsection before the sixty-first day after receiving the request

from the Treasurer is presumed to be boycotting energy companies.

3. The Treasurer shall update the list annually or more often

as the Treasurer considers necessary, but not more often than

quarterly, based on information from, among other sources, those

listed in subparagraph a of paragraph 1 of this subsection.

4. Not later than the thirtieth day after the date the list of

financial companies that boycott energy companies is first provided

or updated, the Treasurer shall file the list with the presiding

officer of each house of the Legislature and the Attorney General

and post the list on a publicly available Internet website.

5. The Treasurer may retain third-party consultants to assist

in the implementation of the provisions of this act.

B. Not later than the thirtieth day after the date a state

governmental entity receives the list provided under paragraph 1 of

subsection A of this section, the state governmental entity shall

notify the Treasurer of the listed financial companies in which the

state governmental entity owns direct holdings or indirect holdings.

C. 1. For each listed financial company identified under

paragraph 1 of subsection A of this section, the state governmental

entity shall send a written notice:

a. informing the financial company of its status as a

listed financial company,

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b. warning the financial company that it may become

subject to divestment by state governmental entities

after the expiration of the period described by

paragraph 2 of this subsection, and

c. offering the financial company the opportunity to

clarify its activities related to companies described

by paragraph 1 of subsection A of this section.

2. Not later than the ninetieth day after the date the

financial company receives notice under paragraph 1 of this

subsection, the financial company shall cease boycotting energy

companies to avoid qualifying for divestment by state governmental

entities.

3. If, during the time provided by paragraph 2 of this

subsection, the financial company ceases boycotting energy

companies, the Treasurer shall remove the financial company from the

list maintained under paragraph 1 of subsection A of this section,

and this subsection will no longer apply to the financial company

unless it resumes boycotting energy companies.

4. If, after the time provided by paragraph 2 of this

subsection expires, the financial company continues to boycott

energy companies, the state governmental entity shall sell, redeem,

divest, or withdraw all publicly traded securities of the financial

company, except securities described by subsection E of this

section, according to the schedule provided under subsection D of

this section.

D. 1. A state governmental entity required to sell, redeem,

divest, or withdraw all publicly traded securities of a listed

financial company shall comply with the following schedule:
,

divest, or withdraw all publicly traded securities of the financial

company, except securities described by subsection E of this

section, according to the schedule provided under subsection D of

this section.

D. 1. A state governmental entity required to sell, redeem,

divest, or withdraw all publicly traded securities of a listed

financial company shall comply with the following schedule:

a. at least fifty percent (50%) of those assets shall be

removed from the state governmental entity's assets

under management not later than the one-hundred-

eightieth day after the date the financial company

receives notice pursuant to paragraph 1 of subsection

C of this section unless the state governmental entity

determines, based on a good-faith exercise of its

fiduciary discretion and subject to subparagraph b of

this subsection, that a later date is more prudent,

and

b. one hundred percent (100%) of those assets shall be

removed from the state governmental entity's assets

under management not later than the three-hundred-

sixtieth day after the date the financial company

receives notice pursuant to paragraph 1 of subsection

C of this section.

2. If a financial company that ceased boycotting energy

companies after receiving notice pursuant to paragraph 1 of

subsection C of this section resumes its boycott, the state

Oklahoma Statutes - Title 74. State Government Page 1286

governmental entity shall send a written notice to the financial

company informing it that the state governmental entity will sell,

redeem, divest, or withdraw all publicly traded securities of the

financial company according to the schedule in paragraph 1 of

subsection D of this section.

3. Except as provided by paragraph 1 of subsection D of this

section, a state governmental entity may delay the schedule for

divestment under that subsection only to the extent that the state

governmental entity determines, in the state governmental entity's

good-faith judgment, and consistent with the entity's fiduciary

duty, that divestment from listed financial companies will likely

result in a loss in value or a benchmark deviation described by

paragraph 1 of subsection F of this section.

4. If a state governmental entity delays the schedule for

divestment, the state governmental entity shall submit a report to

the Treasurer, the presiding officer of each house of the

Legislature, and the Attorney General stating the reasons and

justification for the delay in divestment by the state governmental

entity from listed financial companies. The report shall include

documentation supporting its determination that the divestment would

result in a loss in value or a benchmark deviation described by

paragraph 1 of subsection F of this section including objective

numerical estimates. The state governmental entity shall update the

report every six (6) months.

E. A state governmental entity is not required to divest from

any indirect holdings in actively or passively managed investment

funds or private equity funds. The state governmental entity shall

submit letters to the managers of each investment fund containing

listed financial companies requesting that they remove those

financial companies from the fund or create a similar actively or

passively managed fund with indirect holdings devoid of listed

financial companies. If a manager creates a similar fund with

substantially the same management fees and same level of investment

risk and anticipated return, the state governmental entity may

replace all applicable investments with investments in the similar

fund in a time frame consistent with prudent fiduciary standards but

not later than the four-hundred-fiftieth day after the date the fund

is created.

F. 1. A state governmental entity may cease divesting from one

or more listed financial companies only if clear and convincing

evidence shows that:

a. the state governmental entity has suffered or will
vestments with investments in the similar

fund in a time frame consistent with prudent fiduciary standards but

not later than the four-hundred-fiftieth day after the date the fund

is created.

F. 1. A state governmental entity may cease divesting from one

or more listed financial companies only if clear and convincing

evidence shows that:

a. the state governmental entity has suffered or will

suffer a loss in the value of assets under management

by the state governmental entity as a result of having

to divest from listed financial companies under this

subsection, or

Oklahoma Statutes - Title 74. State Government Page 1287

b. an individual portfolio that uses a benchmark-aware

strategy would be subject to an aggregate expected

deviation from its benchmark as a result of having to

divest from listed financial companies under this

subsection.

2. A state governmental entity may cease divesting from a

listed financial company as provided by this section only to the

extent necessary to ensure that the state governmental entity does

not suffer a loss in value or deviate from its benchmark as

described by paragraph 1 of this subsection.

3. Before a state governmental entity may cease divesting from

a listed financial company under this section, the state

governmental entity shall provide a written report to the Treasurer,

the presiding officer of each house of the Legislature, and the

Attorney General setting forth the reason and justification,

supported by clear and convincing evidence, for deciding to cease

divestment or to remain invested in a listed financial company. The

state governmental entity shall update the report required by this

subsection semiannually, as applicable.

4. This section does not apply to reinvestment in a financial

company that is no longer a listed financial company.

G. Except as provided in subsection F of this section, a state

governmental entity shall not acquire securities of a listed

financial company.