H.B. No. 2223
1-1 AN ACT
1-2 relating to the dedication of certain funds for the use of the
1-3 Texas Commission on the Arts; making an appropriation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading for Subchapter B, Chapter 444,
1-6 Government Code, is amended to read as follows:
1-7 SUBCHAPTER B. POWERS AND DUTIES; FUNDING
1-8 SECTION 2. Subsection (c), Section 444.024, Government Code,
1-9 is amended to read as follows:
1-10 (c) The commission by rule shall adopt equitable procedures
1-11 for the distribution of grants to recipients who reflect the
1-12 geographical, cultural, and ethnic diversity of the state's
1-13 population <Grants of money shall be made without regard to the
1-14 race, creed, sex, religion, or national origin of the applicant>.
1-15 SECTION 3. Section 444.025, Government Code, is amended to
1-16 read as follows:
1-17 Sec. 444.025. Donations; Appropriations; Audit. (a) The
1-18 commission may accept on behalf of the state donations of money,
1-19 property, and art objects<, and historical relics> as it determines
1-20 best further the orderly development of the artistic resources of
1-21 the state. Except as provided by Subsection (b), <All> money paid
1-22 to the commission under this chapter shall be deposited in the
1-23 Texas cultural endowment fund <state treasury>.
1-24 (b) The commission may solicit donations from an appropriate
2-1 source. A person may designate a donation as intended for the
2-2 Texas cultural endowment fund or the Texas Commission on the Arts
2-3 operating fund. If the person designates that a donation is
2-4 intended for a specific fund, the donation shall be deposited in
2-5 the designated fund.
2-6 (c) The commission by rule shall establish an acquisition
2-7 policy for accepting property and art objects.
2-8 (d) The legislature may make appropriations to the
2-9 commission to carry out the purposes of this chapter.
2-10 (e) <(c)> The financial transactions of the commission are
2-11 subject to audit by the state auditor in accordance with Chapter
2-12 321, Government Code.
2-13 SECTION 4. Subchapter B, Chapter 444, Government Code, is
2-14 amended by adding Sections 444.026 through 444.028 to read as
2-15 follows:
2-16 Sec. 444.026. TEXAS CULTURAL ENDOWMENT FUND. (a) The Texas
2-17 cultural endowment fund is a trust fund outside the state treasury.
2-18 (b) The legislature may not appropriate money in the
2-19 endowment fund.
2-20 (c) Interest and income earned before September 1, 1994, on
2-21 money deposited in the endowment fund shall be deposited to the
2-22 credit of the endowment fund. Interest and income earned on or
2-23 after September 1, 1994, on money deposited in the endowment fund
2-24 shall be deposited to the credit of the endowment fund and then
2-25 transferred by the commission on September 1 of each year to the
2-26 Texas Commission on the Arts operating fund.
2-27 (d) This section is exempt from the application of Sections
3-1 403.094(h), 403.094(i), 403.095, and 404.071.
3-2 Sec. 444.027. TEXAS COMMISSION ON THE ARTS OPERATING FUND.
3-3 (a) The Texas Commission on the Arts operating fund is a special
3-4 fund in the state treasury.
3-5 (b) Money deposited to the credit of the operating fund may
3-6 be appropriated only to carry out the commission's powers and
3-7 duties under this chapter and for necessary administrative costs
3-8 incurred by the commission under this chapter.
3-9 (c) The operating fund is exempt from the application of
3-10 Sections 403.094(h), 403.094(i), 403.095, and 404.071. Interest
3-11 received from investments of money in the operating fund shall be
3-12 allocated monthly by the state treasurer to the operating fund.
3-13 Sec. 444.028. ENDOWMENT FUND INVESTMENT AND MANAGEMENT.
3-14 (a) The commission shall appoint investment managers for the
3-15 management and investment of the Texas cultural endowment fund by
3-16 contracting for professional investment management services with
3-17 one or more organizations that are in the business of managing
3-18 investments.
3-19 (b) In choosing and contracting for professional investment
3-20 management services and in continuing the use of an investment
3-21 manager, the commission shall act prudently and in the interest of
3-22 the beneficiaries of the endowment fund.
3-23 (c) In making and supervising investments of the endowment
3-24 fund, an investment manager and the commission shall discharge
3-25 their respective duties solely in the interest of the beneficiaries
3-26 of the fund:
3-27 (1) for the exclusive purposes of providing benefits
4-1 for the beneficiaries of the fund and defraying reasonable expenses
4-2 of administering this chapter;
4-3 (2) with the care, skill, prudence, and diligence
4-4 under the prevailing circumstances that a prudent person acting in
4-5 a like capacity and familiar with matters of the type would use in
4-6 the conduct of an enterprise with a like character and like aims;
4-7 (3) by diversifying the investments of the fund to
4-8 minimize the risk of large losses, unless under the circumstances
4-9 it is clearly prudent not to do so; and
4-10 (4) in accordance with the documents and instruments
4-11 governing the fund to the extent that the documents and instruments
4-12 are consistent with this section.
4-13 (d) To be eligible for appointment under this section, an
4-14 investment manager must be:
4-15 (1) registered under the Investment Advisors Act of
4-16 1940 (15 U.S.C. Section 80b-1 et seq.);
4-17 (2) a bank as defined by that Act that has a trust
4-18 department; or
4-19 (3) an insurance company qualified to perform
4-20 investment services under the laws of more than one state.
4-21 (e) In a contract made under this section, the commission
4-22 shall specify any policies, requirements, or restrictions,
4-23 including criteria for determining the quality of investments and
4-24 for the use of standard rating services, that the commission adopts
4-25 for investments of the endowment fund.
4-26 (f) A member of the commission is not liable for the acts or
4-27 omissions of an investment manager appointed under Subsection (a).
5-1 A member of the commission is not permitted or obligated to invest
5-2 or otherwise to manage any asset of the fund subject to management
5-3 by the investment manager.
5-4 (g) An investment manager appointed under Subsection (a)
5-5 shall acknowledge in writing the manager's fiduciary
5-6 responsibilities to the endowment fund.
5-7 (h) The commission may at any time and shall frequently
5-8 monitor the investments made by each investment manager for the
5-9 endowment fund. The commission may contract for professional
5-10 evaluation services to fulfill this requirement.
5-11 (i) The commission shall enter into an investment custody
5-12 account agreement designating a bank or a depository trust company
5-13 to serve as custodian for all assets allocated to or generated
5-14 under a contract for professional investment management services.
5-15 (j) Under a custody account agreement, the commission shall
5-16 require the designated custodian to perform the duties and assume
5-17 the responsibilities for the endowment fund that are performed and
5-18 assumed, in the absence of a contract, by the custodian of the
5-19 endowment fund. The custodian shall furnish to the commission,
5-20 annually or more frequently if required by commission rule, a sworn
5-21 statement of the amount of the endowment fund assets in the
5-22 custodian's custody.
5-23 (k) For purposes of this section, the beneficiaries of the
5-24 Texas cultural endowment fund are the persons who appreciate art,
5-25 artists, and arts organizations that benefit from the performance
5-26 of the commission's powers and duties under this chapter.
5-27 SECTION 5. Section 444.026, Government Code, as added by
6-1 Section 4 of this Act, is amended by adding Subsection (e) to read
6-2 as follows:
6-3 (e) Notwithstanding Subsection (c), the commission may not
6-4 transfer from the endowment fund the amount of interest or income
6-5 earned on money deposited in the endowment fund under Section 7,
6-6 H.B. 2223, 73rd Legislature, 1993, that is equal to the amount of
6-7 private monetary donations made to the endowment fund during the
6-8 fiscal year in which the interest or income was earned. Interest
6-9 or income remaining in the endowment fund under this subsection
6-10 becomes part of the corpus of the endowment fund. This subsection
6-11 expires September 1, 2005.
6-12 SECTION 6. Chapter 88, General Laws, Acts of the 41st
6-13 Legislature, 2nd Called Session, 1929 (Article 6675a-1 et seq.,
6-14 Vernon's Texas Civil Statutes), is amended by adding Section 5m to
6-15 read as follows:
6-16 Sec. 5m. (a) The department shall design and provide for
6-17 the issuance of special Texas Commission on the Arts plates for
6-18 passenger cars and light commercial motor vehicles having a
6-19 manufacturer's rated carrying capacity of one ton or less.
6-20 (b) The license plates must bear the words "State of the
6-21 Arts" and be of a color, quality, and design approved by the Texas
6-22 Commission on the Arts.
6-23 (c) The department shall issue a license plate under this
6-24 section to a person who:
6-25 (1) applies to the county tax collector in the county
6-26 of the person's residence on a form provided by the department; and
6-27 (2) pays the fee prescribed by Subsection (e) of this
7-1 section.
7-2 (d) A person applying for a license plate under this section
7-3 may:
7-4 (1) have a license plate number assigned by the
7-5 department; or
7-6 (2) apply for a personalized prestige license plate
7-7 under Section 5c of this Act.
7-8 (e) The fee for issuance of a special license plate under
7-9 this section is $25 a year in addition to the regular registration
7-10 fee for the vehicle imposed by Section 5 of this Act and, if a
7-11 personalized prestige license plate is issued, in addition to the
7-12 fee imposed by Section 5c of this Act.
7-13 (f) The department shall deposit $20 of each fee collected
7-14 under this section in the state treasury to the credit of the Texas
7-15 Commission on the Arts operating fund established under Section
7-16 444.027, Government Code.
7-17 (g) The department shall deposit the remainder of each fee
7-18 collected under this section after deposit as provided by
7-19 Subsection (f) of this section in the state treasury to the credit
7-20 of the State Highway Fund to be used only to defray the cost of
7-21 administering this section.
7-22 (h) If a license plate issued under this section is lost,
7-23 stolen, or mutilated, the owner of the vehicle for which the plate
7-24 was issued may obtain a replacement plate from the department by
7-25 paying a replacement fee of $5. If the owner of a vehicle for
7-26 which the plate was issued under this section disposes of the
7-27 vehicle during a registration year, the person shall return the
8-1 special license plate to the department.
8-2 (i) There is no limit to the number of passenger cars and
8-3 light commercial motor vehicles for which a person may apply for
8-4 issuance of a license plate under this section.
8-5 SECTION 7. (a) There is hereby appropriated to the Texas
8-6 Cultural Endowment Fund established in this Act from the general
8-7 revenue fund for the fiscal biennium ending August 31, 1995, the
8-8 amount of $2.2 million.
8-9 (b) The speaker of the house of representatives and the
8-10 lieutenant governor are directed to appoint a joint interim
8-11 committee to study the options available to provide a dedicated
8-12 source of funding to the Texas Cultural Endowment Fund. The
8-13 committee shall make a full report of its findings and
8-14 recommendations to the 74th Legislature when it convenes in
8-15 January, 1995.
8-16 SECTION 8. This Act takes effect September 1, 1993.
8-17 SECTION 9. The importance of this legislation and the
8-18 crowded condition of the calendars in both houses create an
8-19 emergency and an imperative public necessity that the
8-20 constitutional rule requiring bills to be read on three several
8-21 days in each house be suspended, and this rule is hereby suspended.