Amend HB 585 on third reading by adding the following
appropriately
numbered sections to the bill to read as follows and by
renumbering the
existing sections of the bill accordingly:
SECTION _____. Chapter 441, Government Code, is amended
by adding
Subchapter E to read as follows:
SUBCHAPTER E. PUBLIC LIBRARY ENDOWMENT
AND OPERATING FUNDS
Sec. 441.071. TEXAS PUBLIC LIBRARY ENDOWMENT FUND. (a)
The
Texas public library endowment fund is a trust fund
outside the state treasury
held by a bank or depository trust company and
administered by the
commission for the benefit of the public as provided by
this section.
(b) The fund consists of donations accepted by the
commission under Section
441.074.
(c) The corpus of the endowment fund may not be spent for
any purpose.
(d) Not later than September 1 of each year, the
commission shall remit all or
part of the interest and income earned on money in the
endowment fund to
the comptroller for deposit in the state treasury to the
credit of the Texas
public library fund. The commission shall credit to the
corpus of the
endowment fund any portion of the interest and income not
credited to the
public library fund in the treasury.
Sec. 441.072. INVESTMENT AND MANAGEMENT OF ENDOWMENT
FUND.
(a) The commission shall appoint investment managers for
the management
and investment of the Texas public library endowment fund
by contracting for
professional investment management services with one or
more organizations
that are in the business of managing investments.
(b) In choosing and contracting for professional
investment management
services and in continuing the use of an investment
manager, the commission
shall act prudently and in the interest of the
beneficiaries of the endowment
fund.
(c) In making and supervising investments of the
endowment fund, an
investment manager and the commission shall discharge
their respective
duties solely in the interest of the beneficiaries of the
fund:
(1) for the exclusive purposes of providing benefits for
the beneficiaries of the
fund and defraying reasonable expenses of administering
this chapter;
(2) with the care, skill, prudence, and diligence under
the prevailing
circumstances that a prudent person acting in a similar
capacity and familiar
with matters of the type would use in the conduct of an
enterprise with a
similar character and aims;
(3) by diversifying the investments of the fund to
minimize the risk of large
losses, unless under the circumstances it is clearly
prudent not to do so; and
(4) in accordance with the documents and instruments
governing the fund to
the extent that the documents and instruments are
consistent with this
section.
(d) To be eligible for appointment under this section, an
investment manager
must be: registered under the Investment Advisers Act of
1940 (15 U.S.C.
Section 80b-1 et seq.), as amended;
(2) a bank as defined by that Act that has a trust
department; or
(3) an insurance company qualified to perform investment
services under the
laws of more than one state.
(e) in a contract made under this section, the commission
shall specify any
policies, requirements, or restrictions, including
criteria for determining the
quality of investments and for the use of standard rating
services, that the
commission adopts for investments of the endowment fund.
(f) A member of the commission is not liable for the acts
or omissions of an
investment manager appointed under Subsection (a). A
member of the
commission is not permitted or obligated to invest or
otherwise to manage
any asset of the fund subject to management by the
investment manager.
(g) An investment manager appointed under Subsection (a)
shall acknowledge
in writing the manager's fiduciary responsibilities to
the endowment fund.
(h) The commission may at any time and shall frequently
monitor the
investments made by each investment manager for the
endowment fund. The
commission may contract for professional evaluation
services to fulfill this
requirement.
(i) The commission shall enter into an investment custody
account agreement
designating a bank or a depository trust company to serve
as custodian for all
assets allocated to or generated under a contract for
professional investment
management services.
(j) Under a custody account agreement, the commission
shall require the
designated custodian to perform the duties and assume
responsibilities for
the endowment fund that are performed and assumed, in the
absence of a
contract, by the custodian of the endowment fund. The
custodian shall furnish
to the commission, annually or more frequently if
required by commission
rule, a sworn statement of the amount of the endowment
fund assets in the
custodian's custody.
(k) For purposes of this section, the beneficiaries of
the Texas public library
endowment fund are the persons who use public libraries,
public library
facilities, and public library collections and the public
libraries that benefit from
the performance of the commission's powers and duties
under this chapter.
Sec. 441.073. TEXAS PUBLIC LIBRARY FUND. (a) The Texas
public library
fund is a special fund in the state treasury outside the
general revenue fund.
(b) The fund consists of money credited to the fund under
Section 441.071(d)
and proceeds from sales under Section 441.074(d).
(c) Money in the fund may be appropriated only to the
commission to perform
the commission's powers and duties concerning public
library development
under this chapter and to pay the commission's expenses
incurred under this
subchapter.
(d) The fund is exempt from the application of Sections
403.095 and 404.071.
Interest and income from deposit and investment of money
in the fund shall be
allocated to the fund monthly.
Sec. 441.074. DONATIONS, APPROPRIATIONS, AND SALES. (a)
The
commission may solicit and accept on behalf of the state
donations of
money, securities, and other property as it determines
best further the orderly
development of public library resources of the state.
Money paid to the
commission under this subsection shall be deposited in
the Texas public
library endowment fund.
(b) The commission by rule shall establish an acquisition
policy for accepting
donations of money, securities, and other property.
(c) The legislature may make appropriations to the
commission to carry out
the purposes of this chapter.
(d) The commission may purchase and resell items it
determines appropriate
for the promotion of public libraries in Texas. The value
of commission
inventory, as determined by generally accepted accounting
principles, may
not exceed $50,000 at the end of any fiscal year. The net
profits from those
sales shall be deposited in the Texas public library
fund.
Sec. 441.075. PUBLIC LIBRARY FUND GRANT PROGRAM. (a) The
commission shall make grants to public libraries from the
Texas public library
fund for facility construction projects, acquisition of
books and other collection
development materials and payment of actual and
reasonable general and
administrative expenses. The commission shall allocate
amounts from the
fund to direct and matching grant programs.
(b) The commission shall adopt rules:
(1) establishing methods for participation by local
governments in a matching
grant program for facility construction projects; and
(2) providing allocations for a direct grant program for
acquisition of books and
other collection development materials according to a
formula that allocates a
base grant to each participating public library plus an
amount that is
proportional to the size of the population served.
(c) To participate in a grant program under this section,
a public library must
maintain a level of local public library funding equal to
or greater than the
average funding for the three years preceding
participation. The commission
shall adopt rules to implement this requirement.
SECTION _____. Section 404.093(b), Government Code, is
amended to read
as follows:
(b) This subchapter does not apply to:
(1) funds pledged to the payment of bonds, notes, or
other debts if the funds
are not otherwise required to be deposited in the
treasury;
(2) funds held in trust or escrow for the benefit of a
person or entity other than
a state agency;
(3) funds set apart out of earnings derived from
investment of funds held in
trust for others, as administrative expenses of the
trustee agency;
(4) funds, grants, donations, and proceeds from funds,
grants, and donations,
given in trust to the Texas State Library and Archives
Commission for the
establishment and maintenance of regional historical
resource depositories
and libraries in accordance with Section 441.154
441.074 ; or
(5) funds under the management of the secretary-treasurer
of the Anatomical
Board of the State of Texas, as provided by Section
691.008, Health and
Safety Code.