SRC-TBR C.S.H.B. 1161 77(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 1161
77R15175 SMJ-DBy: Eiland (Moncrief)
Business & Commerce
5/8/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

The Business Enterprises Program (BEP) is a federally funded,
state-administered program that provides opportunities for blind and
visually impaired individuals to operate food services and other BEP
selected businesses in public and private facilities.  The 76th Legislature
established a trust fund in the state treasury for the BEP retirement
program.  Currently, the BEP retirement fund only grows at a rate of about
5 percent each year.  If, however, a professional management service
managed the retirement fund, it could increase the fund's profits.
C.S.H.B. 1161 authorizes the Texas Commission for the Blind to contract
with a professional management service to manage the BEP trust fund and
provides for the deposit or investment of trust fund monies and securities. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 404.094(d), Government Code, to authorize a
state agency that receives money from securities transactions under
applicable law, including Chapter 815 or 825, Government Code, Chapter 161,
162, or 164, Natural Resources Code, Chapter 43, Education Code, Section
94.016, Human Resources Code, and the Texas Statewide Emergency Services
Retirement Act (Article 6243e.3, V.T.C.S.) with the comptroller's approval
to, as an alternative to the deposit of the funds as provided by Subsection
(a), net funds received against purchases of securities occurring within
one business day. 

SECTION 2.  Amends Section 94.016, Human Resources Code, by adding
Subsection (f) and (g), as follows: 

(f)  Authorize the Texas Commission for the Blind (commission) to contract
with a professional management service to administer the Business
Enterprises Program trust fund.  Authorizes the professional management
service, in administering the trust fund, to acquire, exchange, sell, or
retain any kind of investment that a prudent investor, exercising
reasonable care, skill, and caution, would acquire, exchange, sell, or
retain under the circumstances, taking into consideration the investment of
all the assets of the trust fund. 

(g)  Authorizes the commission, with the approval of the comptroller, to
select a commercial bank, depository trust company, or other entity to
serve as a custodian of the Business Enterprises Program trust fund's
securities, and monies realized from those securities, pending completion
of an investment transaction.  Requires money realized from those
securities to be reinvested not later than one business day after the date
it is received; or deposited in the treasury not later than the fifth
business day after the date it is received. 

SECTION 3.  Effective date: upon passage or September 1, 2001.