1. A. There is hereby created a trust fund for Economic Development Generating Excellence to be known as the "EDGE Fund". The trust fund principal shall consist of all funds appropriated, transferred, donated or otherwise directed to the fund by law.

2. B. There is hereby created the Board of Investors of the EDGE Fund. The Board of Investors of the EDGE Fund shall:

   1. 1. Manage the assets of the EDGE Fund;
   2. 2. Invest monies in the manner in which a prudent person would invest it and in accordance with laws applicable to the investment of monies in state retirement funds;
   3. 3. Certify the amount of funds available for expenditure each year from the EDGE Fund. The amount of funds available for expenditure shall be limited to not more than five percent (5%) of the assets of the EDGE Fund. Any amount not expended shall remain in the EDGE Fund;
   4. 4. Retain qualified investment managers to provide for the investment of the monies of the EDGE Fund. The investment managers shall be chosen by a solicitation of proposals on a competitive basis pursuant to standards set by the Board of Investors. The investment managers shall manage those monies of the EDGE Fund allocated to the investment managers in compliance with the overall investment guidelines set by the Board of Investors. The monies of the EDGE Fund allocated to the investment managers shall be managed by the investment managers in accordance with the investment guidelines and other directions of the Board of Investors. The investment managers may sell investments and realize 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. The Board of Investors may have the State Treasurer manage those monies not specifically allocated to the investment managers;
   5. 5. Select a custodial bank to settle transactions involving the investment of funds in the EDGE Fund and to hold custody of the securities in the EDGE Fund portfolio. 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 basis pursuant to standards set by the Board of Investors. The Board of Investors may also select professional investment consultants, auditors, and actuaries to assist the Board of Investors in carrying out its fiduciary responsibilities. All these professionals shall be selected by a solicitation of proposals on a competitive basis pursuant to standards set by the Board of Investors; and
   6. 6. Choose the professional custodians and managers of the assets of the EDGE Fund, shall establish investment and fund management guidelines, and shall adopt an investment policy. The selection and engagement of investment managers, investment consultants, auditors, and actuaries, and a custodian bank shall be exempt from the provisions of the Oklahoma Central Purchasing Act.

3. C. The Board of Investors of the EDGE Fund shall be composed of five (5) members as follows:

   1. 1. The State Treasurer, or a designee, who shall serve as chair;
   2. 2. An appointee of the Governor;
   3. 3. An appointee of the State Auditor and Inspector;
   4. 4. An appointee of the Speaker of the House of Representatives; and

   5. 5. An appointee of the President Pro Tempore of the Senate.

      Each appointed member of the Board of Investors of the EDGE Fund shall have demonstrated experience in public or private investment fund management.

4. D. The initially appointed members shall serve staggered terms as follows:

   1. 1. The term of the appointee of the Governor shall expire on June 30, 2007;
   2. 2. The term of the appointee of the State Auditor and Inspector shall expire on June 30, 2008;
   3. 3. The term of the appointee of the Speaker of the House of Representatives shall end on June 30, 2009; and

   4. 4. The term of the appointee of the President Pro Tempore of the Senate shall expire on June 30, 2010.

      Thereafter, successors shall be appointed for terms of four (4) years. An appointee may be removed for cause.

5. E. The members of the Board of Investors of the EDGE Fund shall discharge their duties as trustees of the EDGE Fund:

   1. 1. 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;
   2. 2. By diversifying the investments in the trust fund so as to minimize the risk of large losses, unless, under the circumstances, it is clearly prudent not to do so; and
   3. 3. In accordance with the laws, documents, and instruments governing the trust fund.
6. F. Members of the Board of Investors of the EDGE Fund shall receive no salary for serving on the Board of Investors of the EDGE Fund. All members shall receive necessary travel expenses for the performance of their duties from the Office of the Governor in accordance with the provisions of the State Travel Reimbursement Act.
7. G. The Board of Investors of the EDGE Fund shall annually elect a vice-chair, who shall preside over meetings in the absence of the chair, and any other officers, provided that no member shall be elected vice-chair for more than two (2) consecutive years. The Board of Investors of the EDGE Fund shall meet at least quarterly. A majority of the members of the Board of Investors of the EDGE Fund shall constitute a quorum to transact business, but no vacancy shall impair the right of the remaining members to exercise all of the powers of the Board of Investors of the EDGE Fund.
8. H. The Board of Investors of the EDGE Fund shall be subject to the Oklahoma Open Meeting Act, the Oklahoma Open Records Act and the Administrative Procedures Act.
9. I. Staffing for the Board of Investors of the EDGE Fund shall be provided by the Office of the State Treasurer. The cost of up to two full-time-equivalent employees for the Office of the State Treasurer may be considered an administrative expense of the EDGE Fund; provided, such cost shall be determined by the EDGE Fund Policy Board, created pursuant to Section 52 of this title.
10. J. The Board of Investors of the EDGE Fund shall submit a report of the EDGE Fund’s investments and asset value annually to the Governor and the State Treasurer.

Added by Laws 2006, 2nd Extr. Sess., SB 99, c. 85, § 1, eff. September 22, 2006; Amended by Laws 2007, SB 780, c. 350, § 1, emerg. eff. July 1, 2007 (superseded document available).