Enrolled Bill Summary

Senate Bill 1059 adds a Government Code chapter to require a state governmental entity to adopt standards of conduct applicable to non-employee financial advisors or service providers who provide financial services or advise the entity or a member of its governing body in the management or investment of state funds. The bill provides that a contract with the advisor or service provider is voidable by the entity if the standards of conduct are violated. It establishes disclosure requirements for outside financial advisors and service providers, and it requires the filing of a related annual statement with the applicable entity and the state auditor. Other bill provisions create a corporate integrity unit in the attorney general's office to assist in the enforcement of laws relating to corporate fraud or other similar illegal activities. Its jurisdiction includes fraud committed by a corporation, a limited liability company, or a registered limited liability partnership or an officer, director, or partner acting in a representative capacity for the same. The attorney general's office, however, is not required to implement the provisions, because no implementation appropriation was made.