1-1 By: Walker (Senate Sponsor - Staples) H.B. No. 675
1-2 (In the Senate - Received from the House March 26, 2001;
1-3 March 27, 2001, read first time and referred to Committee on
1-4 Natural Resources; April 23, 2001, reported adversely, with
1-5 favorable Committee Substitute by the following vote: Yeas 5, Nays
1-6 0; April 23, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 675 By: Bernsen
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the selection and training of certain officers of
1-11 certain water districts.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subchapter E, Chapter 36, Water Code, is amended
1-14 by adding Section 36.1561 to read as follows:
1-15 Sec. 36.1561. INVESTMENT OFFICER. (a) Notwithstanding
1-16 Section 2256.005(f), Government Code, the board may contract with a
1-17 person to act as investment officer of the district.
1-18 (b) The investment officer of a district shall:
1-19 (1) not later than the first anniversary of the date
1-20 the officer takes office or assumes the officer's duties, attend a
1-21 training session of at least six hours of instruction relating to
1-22 investment responsibilities under Chapter 2256, Government Code;
1-23 and
1-24 (2) attend at least four hours of additional
1-25 investment training within each two-year period after the first
1-26 year.
1-27 (c) Training under this section must be from an independent
1-28 source approved by:
1-29 (1) the board; or
1-30 (2) a designated investment committee advising the
1-31 investment officer.
1-32 (d) Training under this section must include education in
1-33 investment controls, security risks, strategy risks, market risks,
1-34 diversification of investment portfolio, and compliance with
1-35 Chapter 2256, Government Code.
1-36 (e) During January of each year, each individual,
1-37 association, business, organization, governmental entity, or other
1-38 person that provides training under this section shall report to
1-39 the comptroller a list of the districts for which the person
1-40 provided required training under this section during the previous
1-41 calendar year. An individual's reporting requirements under this
1-42 subsection are satisfied by a report of the individual's employer
1-43 or the sponsoring or organizing entity of a training program or
1-44 seminar.
1-45 SECTION 2. Section 49.057(a), Water Code, is amended to read
1-46 as follows:
1-47 (a) The board shall be responsible for the management of all
1-48 the affairs of the district. The district shall employ or contract
1-49 with all persons, firms, partnerships, corporations, or other
1-50 entities, public or private, deemed necessary by the board for the
1-51 conduct of the affairs of the district, including, but not limited
1-52 to, engineers, attorneys, financial advisors, operators,
1-53 bookkeepers, tax assessors and collectors, auditors, and
1-54 administrative staff. [The board may appoint an employee of a
1-55 firm, partnership, corporation, or other entity with which the
1-56 district has contracted to serve as the investment officer of the
1-57 district under Section 2256.007, Government Code.]
1-58 SECTION 3. Subchapter E, Chapter 49, Water Code, is amended
1-59 by adding Section 49.1571 to read as follows:
1-60 Sec. 49.1571. INVESTMENT OFFICER. (a) Notwithstanding
1-61 Section 2256.005(f), Government Code, the board may contract with a
1-62 person to act as investment officer of the district.
1-63 (b) The investment officer of a district shall:
1-64 (1) not later than the first anniversary of the date
2-1 the officer takes office or assumes the officer's duties, attend a
2-2 training session of at least six hours of instruction relating to
2-3 investment responsibilities under Chapter 2256, Government Code;
2-4 and
2-5 (2) attend at least four hours of additional
2-6 investment training within each two-year period after the first
2-7 year.
2-8 (c) Training under this section must be from an independent
2-9 source approved by:
2-10 (1) the board; or
2-11 (2) a designated investment committee advising the
2-12 investment officer.
2-13 (d) Training under this section must include education in
2-14 investment controls, security risks, strategy risks, market risks,
2-15 diversification of investment portfolio, and compliance with
2-16 Chapter 2256, Government Code.
2-17 (e) 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 4. Section 2256.008, Government Code, is amended by
2-27 amending Subsection (a) and adding Subsection (e) to read as
2-28 follows:
2-29 (a) Except as provided by Subsections [Subsection] (b) and
2-30 (e), the treasurer, the chief financial officer if the treasurer is
2-31 not the chief financial officer, and the investment officer of a
2-32 local government shall:
2-33 (1) attend at least one training session from an
2-34 independent source approved by the governing body of the local
2-35 government or a designated investment committee advising the
2-36 investment officer as provided for in the investment policy of the
2-37 local government and containing at least 10 hours of instruction
2-38 relating to the treasurer's or officer's responsibilities under
2-39 this subchapter within 12 months after taking office or assuming
2-40 duties; and
2-41 (2) except as provided by Subsections [Subsection] (b)
2-42 and (e), attend an investment training session not less than once
2-43 in a two-year period and receive not less than 10 hours of
2-44 instruction relating to investment responsibilities under this
2-45 subchapter from an independent source approved by the governing
2-46 body of the local government or a designated investment committee
2-47 advising the investment officer as provided for in the investment
2-48 policy of the local government.
2-49 (e) This section does not apply to a district governed by
2-50 Chapter 36 or 49, Water Code.
2-51 SECTION 5. Section 49.054(d), Water Code, is repealed.
2-52 SECTION 6. This Act takes effect immediately if it receives
2-53 a vote of two-thirds of all the members elected to each house, as
2-54 provided by Section 39, Article III, Texas Constitution. If this
2-55 Act does not receive the vote necessary for immediate effect, this
2-56 Act takes effect September 1, 2001.
2-57 * * * * *