By Walker H.B. No. 675
77R3932 SGA-F
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) In this section,
1-8 "TexPool" means the Texas Local Government Pool, the investment
1-9 pool for local public funds created under Chapters 791 and 2256,
1-10 Government Code, and administered by the Texas Treasury Safekeeping
1-11 Trust Company.
1-12 (b) Notwithstanding Section 2256.005(f), Government Code,
1-13 the board may contract with a person to act as investment officer
1-14 of the district.
1-15 (c) Except as provided by Subsection (f), the investment
1-16 officer of a district shall:
1-17 (1) not later than the first anniversary of the date
1-18 the officer takes office or assumes the officer's duties, attend a
1-19 training session of at least eight hours of instruction relating to
1-20 investment responsibilities under Chapter 2256, Government Code;
1-21 and
1-22 (2) attend at least four hours of additional
1-23 investment training within each two-year period after the first
1-24 year.
2-1 (d) Training under this section must be from an independent
2-2 source approved by:
2-3 (1) the board; or
2-4 (2) a designated investment committee advising the
2-5 investment officer.
2-6 (e) Training under this section must include education in
2-7 investment controls, security risks, strategy risks, market risks,
2-8 diversification of investment portfolio, and compliance with
2-9 Chapter 2256, Government Code.
2-10 (f) An investment officer is not required to complete
2-11 training under this section if the aggregate amount of the
2-12 district's investments in the following types of investments is
2-13 equal to at least 95 percent of the district's funds:
2-14 (1) investments described by Sections 2256.009,
2-15 2256.010, and 2256.014, Government Code; and
2-16 (2) investments with TexPool.
2-17 (g) During January of each year, each individual,
2-18 association, business, organization, governmental entity, or other
2-19 person that provides training under this section shall report to
2-20 the comptroller a list of the districts for which the person
2-21 provided required training under this section during the previous
2-22 calendar year. An individual's reporting requirements under this
2-23 subsection are satisfied by a report of the individual's employer
2-24 or the sponsoring or organizing entity of a training program or
2-25 seminar.
2-26 SECTION 2. Section 49.057(a), Water Code, is amended to read
2-27 as follows:
3-1 (a) The board shall be responsible for the management of all
3-2 the affairs of the district. The district shall employ or contract
3-3 with all persons, firms, partnerships, corporations, or other
3-4 entities, public or private, deemed necessary by the board for the
3-5 conduct of the affairs of the district, including, but not limited
3-6 to, engineers, attorneys, financial advisors, operators,
3-7 bookkeepers, tax assessors and collectors, auditors, and
3-8 administrative staff. [The board may appoint an employee of a
3-9 firm, partnership, corporation, or other entity with which the
3-10 district has contracted to serve as the investment officer of the
3-11 district under Section 2256.007, Government Code.]
3-12 SECTION 3. Subchapter E, Chapter 49, Water Code, is amended
3-13 by adding Section 49.1571 to read as follows:
3-14 Sec. 49.1571. INVESTMENT OFFICER. (a) In this section,
3-15 "TexPool" means the Texas Local Government Pool, the investment
3-16 pool for local public funds created under Chapters 791 and 2256,
3-17 Government Code, and administered by the Texas Treasury Safekeeping
3-18 Trust Company.
3-19 (b) Notwithstanding Section 2256.005(f), Government Code,
3-20 the board may contract with a person to act as investment officer
3-21 of the district.
3-22 (c) Except as provided by Subsection (f), the investment
3-23 officer of a district shall:
3-24 (1) not later than the first anniversary of the date
3-25 the officer takes office or assumes the officer's duties, attend a
3-26 training session of at least eight hours of instruction relating to
3-27 investment responsibilities under Chapter 2256, Government Code;
4-1 and
4-2 (2) attend at least four hours of additional
4-3 investment training within each two-year period after the first
4-4 year.
4-5 (d) Training under this section must be from an independent
4-6 source approved by:
4-7 (1) the board; or
4-8 (2) a designated investment committee advising the
4-9 investment officer.
4-10 (e) Training under this section must include education in
4-11 investment controls, security risks, strategy risks, market risks,
4-12 diversification of investment portfolio, and compliance with
4-13 Chapter 2256, Government Code.
4-14 (f) An investment officer is not required to complete
4-15 training under this section if the aggregate amount of the
4-16 district's investments in the following types of investments is
4-17 equal to at least 95 percent of the district's funds:
4-18 (1) investments described by Sections 2256.009,
4-19 2256.010, and 2256.014, Government Code; and
4-20 (2) investments with TexPool.
4-21 (g) During January of each year, each individual,
4-22 association, business, organization, governmental entity, or other
4-23 person that provides training under this section shall report to
4-24 the comptroller a list of the districts for which the person
4-25 provided required training under this section during the previous
4-26 calendar year. An individual's reporting requirements under this
4-27 subsection are satisfied by a report of the individual's employer
5-1 or the sponsoring or organizing entity of a training program or
5-2 seminar.
5-3 SECTION 4. Section 2256.008, Government Code, is amended by
5-4 amending Subsection (a) and adding Subsection (e) to read as
5-5 follows:
5-6 (a) Except as provided by Subsections [Subsection] (b) and
5-7 (e), the treasurer, the chief financial officer if the treasurer is
5-8 not the chief financial officer, and the investment officer of a
5-9 local government shall:
5-10 (1) attend at least one training session from an
5-11 independent source approved by the governing body of the local
5-12 government or a designated investment committee advising the
5-13 investment officer as provided for in the investment policy of the
5-14 local government and containing at least 10 hours of instruction
5-15 relating to the treasurer's or officer's responsibilities under
5-16 this subchapter within 12 months after taking office or assuming
5-17 duties; and
5-18 (2) except as provided by Subsections [Subsection] (b)
5-19 and (e), attend an investment training session not less than once
5-20 in a two-year period and receive not less than 10 hours of
5-21 instruction relating to investment responsibilities under this
5-22 subchapter from an independent source approved by the governing
5-23 body of the local government or a designated investment committee
5-24 advising the investment officer as provided for in the investment
5-25 policy of the local government.
5-26 (e) This section does not apply to a district governed by
5-27 Chapter 36 or 49, Water Code.
6-1 SECTION 5. Section 49.054(d), Water Code, is repealed.
6-2 SECTION 6. This Act takes effect immediately if it receives
6-3 a vote of two-thirds of all the members elected to each house, as
6-4 provided by Section 39, Article III, Texas Constitution. If this
6-5 Act does not receive the vote necessary for immediate effect, this
6-6 Act takes effect September 1, 2001.