Enrolled Bill Summary

House Bill 3739 amends the Education Code to require the State Board of Education to adopt and enforce a permanent school fund ethics policy, after consideration of state auditor and Texas Ethics Commission comments, that provides standards of conduct relating to the fund's management and investment; that addresses specific issues such as manager or investor conflicts of interest, banned transactions and interests, acceptance of gifts and entertainment, and other policy-related matters; and that includes provisions applicable to board members, the education commissioner, Texas Education Agency staff, and persons providing fund management or investment services to the board. The act requires any of the above individuals who are engaged in a business or other relationship that presents a potential conflict of interest, as defined in the board's ethics policy, to disclose such relationship to the board, and it prohibits such persons from advising on or making decisions about matters that could be affected by such conflict, unless the board waives the prohibition. House Bill 3739 also requires consultants, advisors, brokers, or other fund management or investment services providers to report to the board any expenditures over $50 made on behalf of a board member, the commissioner, or an agency employee.