The state Senate on Thursday approved a bill that would put three investment employees in the treasurer's office under the purview of the Board of Finance.
A vote of 28-5 approved Senate Bill 425 by Terry Rice, R-Waldron, after Rice questioned whether the latest investment employee hired by Treasurer Dennis Milligan, a Republican, meets the qualifications for the job.
A spokesman for Milligan said later that the new hire meets the qualifications for the post.
The action came more than two weeks after an earlier version of the bill fell three votes short of the 18 required for approval in the 35-member Senate.
Under Act 1088 of 2013, the Board of Finance selects the chief investment officer based on the treasurer's nominations. The chief investment officer is employed by the board and works with and at the direction of the treasurer consistent with the policies and directives of the board under the law.
The chief investment officer is Autumn Sanson, whose salary is $93,785 a year.
The 10-member Board of Finance includes the governor, treasurer, auditor, bank commissioner, director of the Department of Finance and Administration, securities commissioners, and two appointees each from the House speaker and Senate president pro tempore.
SB425 would require the Board of Finance to also select the employees in the senior investment manager I, treasurer manager V and treasurer manager VI classifications based upon nominations from the treasurer. These employees also would be employed by the board and work with and at the direction of the treasurer consistent with the polices and directives of the board.
Senior investment manager Ed Garner is paid $108,000 a year, while treasurer manager Larry Tate makes $68,399 and treasurer manager Celeste Gladden is paid $61,799.
Rice said Milligan hired Ronald Roberson, a former vice president and senior trader at the Bank of Oklahoma, as a senior investment manager in January. Rice said a college degree is required for that job, but Roberson's resume shows that Roberson hasn't earned a college degree. Roberson is paid $69,999 a year.
"I believe there is an attempt to maybe circumvent the qualifications," the senator said, noting that the treasurer's office has made mistakes in the past.
"The Financial Division of the treasurer's office manages over $3 billion of state assets, the taxpayers' money. It needs to be above reproach," Rice said. "It's doing good."
The Board of Finance would provide prudent oversight over four employees in the treasurer's investment departments under his legislation, he said.
But Milligan spokesman Stacy Peterson said later that Roberson, who has more than 62 college credit hours, was placed in a division director post in which a college degree is preferred, "so he's qualified for the job.
"He was hired as a division director. He's also the most experienced person in the investment staff," Peterson said.
Earlier, Rice told senators that Milligan has requested an advisory opinion from the attorney general's office questioning the constitutionality of part of the 2013 law, under which the chief investment officer is employed by the board.
Sen. Jason Rapert, R-Bigelow, said Milligan campaigned as a supporter of the 2013 law that Rapert sponsored, and "now he's questioning the statute that we passed in 2013 to make sure there is a check and a balance" on the state treasurer's investments.
Rapert said he supports Rice's bill to increase accountability over the state's investments.
In a letter dated March 8 to Attorney General Leslie Rutledge, Milligan asked Rutledge whether the Legislature can dictate the identity of individuals employed in specific positions with a constitutional and executive office.
The treasurer also asked whether Act 1088's provision requiring the Board of Finance to employ the chief investment officer violates the state constitution's separation-of-powers doctrine and due-process clause.
Grant Wallace, who is chief deputy treasurer, said in an interview that Milligan "still supports" the 2013 law.
"There was just one little piece that we had questions around that was brought in response to Sen. Rice filing this bill. It is no disrespect to Sen. Rapert and the tremendous work he did on Act 1088 and in response in what was going on in this office previously," Wallace said.
A Section on 03/17/2017