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