Okla. Stat. tit. 74, § 74-1305.1

insurance - Investment committee - Investment managers - Funds and

custodian of investment fund and revenues - Investment plan -

Quarterly financial report.

(1) The Chief Executive Officer (CEO) of the Oklahoma Health

Care Authority and the Oklahoma Employees Insurance and Benefits

Board shall discharge their duties with respect to the Oklahoma

Employees Insurance and Benefits Act, the State Employees Flexible

Benefits Act and the State Employees Disability Program Act solely

in the interest of said acts and:

(a) for the exclusive purpose of:

(i) providing benefits to the participants and their

dependents, and

(ii) defraying reasonable expenses of administering the

Oklahoma Employees Insurance and Benefits Act, the

State Employees Flexible Benefits Act and the State

Employees Disability Program Act;

(b) with the care, skill, prudence, and diligence under the

circumstances then prevailing that a prudent person acting in a like

capacity and familiar with such matters would use in the conduct of

an enterprise of a like character and with like aims;

(c) by diversifying investments so as to minimize the risk of

large losses, unless under the circumstances it is clearly prudent

not to do so; and

(d) in accordance with the laws, documents and instruments

governing the Oklahoma Employees Insurance and Benefits Act, the

State Employees Flexible Benefits Act and the State Employees

Disability Program Act.

(2) The Authority may procure insurance indemnifying the

members of the Board and the CEO from personal loss or

accountability from liability resulting from action or inaction.

(3) The CEO may establish an investment committee. The

investment committee shall be composed of not more than three (3)

members of the Board selected by the CEO. The committee shall make

recommendations to the full Board on all matters related to the

choice of custodians and managers of the assets of the Oklahoma

Health Care Authority relating to the Oklahoma Employees Insurance

and Benefits Act, on the establishment of investment and fund

management guidelines, and in planning future investment policy.

The committee shall have no authority to act on behalf of the Board

or CEO in any circumstances whatsoever. No recommendation of the

committee shall have effect as an action of the Board or CEO nor

take effect without the approval of the Board or CEO.

(4) The Oklahoma Health Care Authority, based on recommendation

of the Board shall retain qualified investment managers to provide

Oklahoma Statutes - Title 74. State Government Page 789

for the investment of the monies received by the Authority. The

investment managers shall be chosen by a solicitation of proposals

on a competitive bid basis pursuant to standards set by the Board.

Subject to the overall investment guidelines set by the Board, the

investment managers shall have full discretion in the management of

those monies of the Authority allocated to the investment managers.

The Board shall oversee the management of those monies not

specifically allocated to the investment managers. The monies of

the Authority allocated to the investment managers shall be actively

managed by the investment managers, which may include selling

investments and realizing losses if such action is considered

advantageous to longer term return maximization. Because of the

total return objective, no distinction shall be made for management

and performance evaluation purposes between realized and unrealized

capital gains and losses.
to the investment managers shall be actively

managed by the investment managers, which may include selling

investments and realizing losses if such action is considered

advantageous to longer term return maximization. Because of the

total return objective, no distinction shall be made for management

and performance evaluation purposes between realized and unrealized

capital gains and losses.

(5) Funds and revenues for investment by the investment

managers or the Oklahoma Health Care Authority shall be placed with

a custodian recommended by the Board. The custodian shall be a bank

or trust company offering pension fund master trustee and master

custodial services. The custodian shall be chosen by a solicitation

of proposals on a competitive bid basis pursuant to standards set by

the Board. In compliance with the investment policy guidelines of

the Board, the custodian bank or trust company shall be

contractually responsible for ensuring that all monies of the

Authority are invested in income-producing investment vehicles at

all times. If a custodian bank or trust company has not received

direction from the investment managers of the Authority as to the

investment of the monies of the Authority in specific investment

vehicles, the custodian bank or trust company shall be contractually

responsible to the Authority for investing the monies in

appropriately collateralized short-term interest-bearing investment

vehicles.

(6) Prior to August 1 of each year, the Board shall develop a

written investment plan for the monies received by the Authority.

(7) The Administrator shall compile annual financial statements

of all the activity of the Authority on a calendar year basis. The

financial statements shall be compiled pursuant to accounting

principles generally accepted in the United States. The report

shall include several relevant measures of investment value,

including acquisition cost and current fair market value with

appropriate summaries of total holdings and returns. The report

shall contain combined and individual rate of returns of the

investment managers by category of investment, over periods of time.

The report shall be distributed to the Board and the CEO of the

Oklahoma Health Care Authority.