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