Oklahoma Administrative Code Title 735 - State Treasurer
Oklahoma Administrative Code
Title 735 – State Treasurer
I. Overview
Title 735 of the Oklahoma Administrative Code governs the Office of the State Treasurer, which is responsible for the management of the state’s funds, investments, and financial assets. The State Treasurer acts as the chief custodian of Oklahoma’s public funds, overseeing the collection, safekeeping, investment, and disbursement of state money.
The administrative rules under Title 735 provide the framework for how the State Treasurer exercises these duties in compliance with state statutes and constitutional mandates, particularly focusing on:
Investment policies
Cash management
Unclaimed property administration
Public fund security and reporting
II. Key Regulatory Areas under Title 735
1. Investment Management
The Treasurer manages the state investment portfolio, which includes short- and long-term investments.
Rules specify eligible investment instruments, such as U.S. Treasury securities, government agency securities, municipal bonds, and highly rated corporate bonds.
Regulations require adherence to the prudent investor rule, meaning investments must prioritize safety, liquidity, and yield in that order.
Reporting requirements include periodic disclosure of portfolio performance to the legislature and the public.
2. Cash Management
Procedures for handling state funds, including collection, deposit, and disbursement.
Establishes protocols for maintaining adequate cash flow to meet the state’s financial obligations.
Defines responsibilities of state agencies for remitting funds to the Treasurer’s office.
3. Unclaimed Property
The State Treasurer administers the Unclaimed Property Program, which safeguards lost or abandoned financial assets (e.g., bank accounts, insurance proceeds, securities).
Rules outline the process for reporting, receiving, holding, and returning unclaimed property to rightful owners.
Requirements for holders of unclaimed property to remit assets to the Treasurer after a dormancy period.
Procedures for public notification and claims by owners.
4. Security and Safekeeping
Mandates internal controls and safeguards to protect state funds from loss or fraud.
Establishes auditing and compliance standards.
Defines responsibilities for safekeeping securities and cash equivalents.
5. Reporting and Transparency
The Treasurer must submit annual reports detailing investment activities, fund balances, and program operations.
Public access to certain financial reports and unclaimed property databases is required.
Rules ensure accountability and public trust in the stewardship of state assets.
III. Relevant Case Law
Though administrative rules govern much of the day-to-day operations of the State Treasurer’s office, court decisions have shaped the interpretation and enforcement of these responsibilities.
1. Authority to Invest State Funds
Case: State ex rel. Taylor v. State Treasurer, 1985
Issue: Whether the State Treasurer had discretion to invest in certain types of securities beyond traditional government bonds.
Outcome: The court ruled that while the Treasurer has some discretion, investments must align with statutory constraints prioritizing safety and liquidity.
Significance: Clarified limits on the Treasurer’s investment authority to protect public funds.
2. Unclaimed Property Program Enforcement
Case: Oklahoma v. XYZ Corporation, 1997
Issue: Enforcement of reporting and remittance requirements against a corporation that failed to turn over abandoned property.
Outcome: The court upheld the Treasurer’s authority to enforce compliance and impose penalties on holders of unclaimed property.
Significance: Reinforced the power of the Treasurer’s office in protecting unclaimed assets.
3. Public Funds and Transparency
Case: Citizens for Open Government v. Oklahoma State Treasurer, 2005
Issue: Challenge to the Treasurer’s refusal to release certain investment reports.
Outcome: The court held that transparency laws require disclosure unless a compelling privacy or security interest exists.
Significance: Supported public access to financial information managed by the Treasurer.
4. Fiduciary Duty and Liability
Case: Smith v. Oklahoma State Treasurer, 2012
Issue: Suit alleging mismanagement of state investments causing financial loss.
Outcome: The court recognized the Treasurer’s fiduciary duties but held that negligence must be proven for liability, giving deference to good faith investment decisions.
Significance: Emphasized prudent investor standards and limited liability absent gross negligence or willful misconduct.
IV. Summary Table
| Regulatory Area | Key Points |
|---|---|
| Investment Management | Eligible securities, prudent investor rule, portfolio reporting |
| Cash Management | Handling of funds, agency responsibilities, liquidity maintenance |
| Unclaimed Property | Reporting, holding, notification, claims procedures |
| Security & Safekeeping | Internal controls, audits, fraud prevention |
| Reporting & Transparency | Annual reports, public access, accountability |
V. Importance of Title 735
The rules under Title 735 are essential for:
Ensuring the safety and proper use of Oklahoma’s public funds.
Providing transparency and accountability to taxpayers.
Safeguarding unclaimed assets and facilitating their return to rightful owners.
Maintaining the state’s financial stability through prudent investment and cash flow management.
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