1-1                                   AN ACT
 1-2     relating to the administration of the Business Enterprises Program
 1-3     trust fund.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 404.094(d), Government Code, is amended to
 1-6     read as follows:
 1-7           (d)  A state agency that receives money from securities
 1-8     transactions under applicable law, including Chapter 815 or 825,
 1-9     Government Code, Chapter 161, 162, or 164, Natural Resources Code,
1-10     Chapter 43, Education Code, Section 94.016, Human Resources Code,
1-11     and the Texas Statewide Emergency Services Retirement Act (Article
1-12     6243e.3, Vernon's Texas Civil Statutes), with the comptroller's
1-13     approval may, as an alternative to the deposit of the funds as
1-14     provided by Subsection (a), net funds received against purchases of
1-15     securities occurring within one business day.  Any proceeds
1-16     received and available for reinvestment that are not reinvested
1-17     within one business day of receipt shall be deposited in the state
1-18     treasury as provided by Subsection (a).  An agency authorized to
1-19     net securities transactions under this section is subject to the
1-20     accounting and reporting procedures established by the comptroller.
1-21           SECTION 2. Section 94.016, Human Resources Code, is amended
1-22     by adding Subsections (f) and (g) to read as follows:
1-23           (f)  The commission may contract with a professional
1-24     management service to administer the Business Enterprises Program
 2-1     trust fund.  In administering the trust fund, the professional
 2-2     management service may acquire, exchange, sell, or retain any kind
 2-3     of investment that a prudent investor, exercising reasonable care,
 2-4     skill, and caution, would acquire, exchange, sell, or retain under
 2-5     the circumstances, taking into consideration the investment of all
 2-6     the assets of the trust fund.
 2-7           (g)  With the approval of the comptroller, the commission may
 2-8     select a commercial bank, depository trust company, or other entity
 2-9     to serve as a custodian of the Business Enterprises Program trust
2-10     fund's securities, and money realized from those securities,
2-11     pending completion of an investment transaction.  Money realized
2-12     from those securities must be:
2-13                 (1)  reinvested not later than one business day after
2-14     the date it is received; or
2-15                 (2)  deposited in the treasury not later than the fifth
2-16     business day after the date it is received.
2-17           SECTION 3.  This Act takes effect immediately if it receives
2-18     a vote of two-thirds of all the members elected to each house, as
2-19     provided by Section 39, Article III, Texas Constitution.  If this
2-20     Act does not receive the vote necessary for immediate effect, this
2-21     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1161 was passed by the House on April
         20, 2001, by the following vote:  Yeas 142, Nays 0, 2 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 1161 on May 24, 2001, by the following vote:  Yeas 125, Nays 0,
         2 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1161 was passed by the Senate, with
         amendments, on May 22, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor