77R8887 E
By Walker H.B. No. 675
Substitute the following for H.B. No. 675:
By Walker C.S.H.B. No. 675
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the selection and training of certain officers of
1-3 certain water districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 36, Water Code, is amended
1-6 by adding Section 36.1561 to read as follows:
1-7 Sec. 36.1561. INVESTMENT OFFICER. (a) Notwithstanding
1-8 Section 2256.005(f), Government Code, the board may contract with a
1-9 person to act as investment officer of the district.
1-10 (b) The investment officer of a district shall:
1-11 (1) not later than the first anniversary of the date
1-12 the officer takes office or assumes the officer's duties, attend a
1-13 training session of at least four hours of instruction relating to
1-14 investment responsibilities under Chapter 2256, Government Code;
1-15 and
1-16 (2) attend at least four hours of additional
1-17 investment training within each two-year period after the first
1-18 year.
1-19 (c) Training under this section must be from an independent
1-20 source approved by:
1-21 (1) the board; or
1-22 (2) a designated investment committee advising the
1-23 investment officer.
1-24 (d) Training under this section must include education in
2-1 investment controls, security risks, strategy risks, market risks,
2-2 diversification of investment portfolio, and compliance with
2-3 Chapter 2256, Government Code.
2-4 (e) During January of each year, each individual,
2-5 association, business, organization, governmental entity, or other
2-6 person that provides training under this section shall report to
2-7 the comptroller a list of the districts for which the person
2-8 provided required training under this section during the previous
2-9 calendar year. An individual's reporting requirements under this
2-10 subsection are satisfied by a report of the individual's employer
2-11 or the sponsoring or organizing entity of a training program or
2-12 seminar.
2-13 SECTION 2. Section 49.057(a), Water Code, is amended to read
2-14 as follows:
2-15 (a) The board shall be responsible for the management of all
2-16 the affairs of the district. The district shall employ or contract
2-17 with all persons, firms, partnerships, corporations, or other
2-18 entities, public or private, deemed necessary by the board for the
2-19 conduct of the affairs of the district, including, but not limited
2-20 to, engineers, attorneys, financial advisors, operators,
2-21 bookkeepers, tax assessors and collectors, auditors, and
2-22 administrative staff. [The board may appoint an employee of a
2-23 firm, partnership, corporation, or other entity with which the
2-24 district has contracted to serve as the investment officer of the
2-25 district under Section 2256.007, Government Code.]
2-26 SECTION 3. Subchapter E, Chapter 49, Water Code, is amended
2-27 by adding Section 49.1571 to read as follows:
3-1 Sec. 49.1571. INVESTMENT OFFICER. (a) Notwithstanding
3-2 Section 2256.005(f), Government Code, the board may contract with a
3-3 person to act as investment officer of the district.
3-4 (b) The investment officer of a district shall:
3-5 (1) not later than the first anniversary of the date
3-6 the officer takes office or assumes the officer's duties, attend a
3-7 training session of at least four hours of instruction relating to
3-8 investment responsibilities under Chapter 2256, Government Code;
3-9 and
3-10 (2) attend at least four hours of additional
3-11 investment training within each two-year period after the first
3-12 year.
3-13 (c) Training under this section must be from an independent
3-14 source approved by:
3-15 (1) the board; or
3-16 (2) a designated investment committee advising the
3-17 investment officer.
3-18 (d) Training under this section must include education in
3-19 investment controls, security risks, strategy risks, market risks,
3-20 diversification of investment portfolio, and compliance with
3-21 Chapter 2256, Government Code.
3-22 (e) During January of each year, each individual,
3-23 association, business, organization, governmental entity, or other
3-24 person that provides training under this section shall report to
3-25 the comptroller a list of the districts for which the person
3-26 provided required training under this section during the previous
3-27 calendar year. An individual's reporting requirements under this
4-1 subsection are satisfied by a report of the individual's employer
4-2 or the sponsoring or organizing entity of a training program or
4-3 seminar.
4-4 SECTION 4. Section 2256.008, Government Code, is amended by
4-5 amending Subsection (a) and adding Subsection (e) to read as
4-6 follows:
4-7 (a) Except as provided by Subsections [Subsection] (b) and
4-8 (e), the treasurer, the chief financial officer if the treasurer is
4-9 not the chief financial officer, and the investment officer of a
4-10 local government shall:
4-11 (1) attend at least one training session from an
4-12 independent source approved by the governing body of the local
4-13 government or a designated investment committee advising the
4-14 investment officer as provided for in the investment policy of the
4-15 local government and containing at least 10 hours of instruction
4-16 relating to the treasurer's or officer's responsibilities under
4-17 this subchapter within 12 months after taking office or assuming
4-18 duties; and
4-19 (2) except as provided by Subsections [Subsection] (b)
4-20 and (e), attend an investment training session not less than once
4-21 in a two-year period and receive not less than 10 hours of
4-22 instruction relating to investment responsibilities under this
4-23 subchapter from an independent source approved by the governing
4-24 body of the local government or a designated investment committee
4-25 advising the investment officer as provided for in the investment
4-26 policy of the local government.
4-27 (e) This section does not apply to a district governed by
5-1 Chapter 36 or 49, Water Code.
5-2 SECTION 5. Section 49.054(d), Water Code, is repealed.
5-3 SECTION 6. This Act takes effect immediately if it receives
5-4 a vote of two-thirds of all the members elected to each house, as
5-5 provided by Section 39, Article III, Texas Constitution. If this
5-6 Act does not receive the vote necessary for immediate effect, this
5-7 Act takes effect September 1, 2001.