1-1 By: Eiland (Senate Sponsor - Moncrief) H.B. No. 1161 1-2 (In the Senate - Received from the House April 23, 2001; 1-3 April 24, 2001, read first time and referred to Committee on 1-4 Business and Commerce; May 10, 2001, reported adversely, with 1-5 favorable Committee Substitute by the following vote: Yeas 7, Nays 1-6 0; May 10, 2001, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1161 By: Van de Putte 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the administration of the Business Enterprises Program 1-11 trust fund. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Section 404.094(d), Government Code, is amended to 1-14 read as follows: 1-15 (d) A state agency that receives money from securities 1-16 transactions under applicable law, including Chapter 815 or 825, 1-17 Government Code, Chapter 161, 162, or 164, Natural Resources Code, 1-18 Chapter 43, Education Code, Section 94.016, Human Resources Code, 1-19 and the Texas Statewide Emergency Services Retirement Act (Article 1-20 6243e.3, Vernon's Texas Civil Statutes), with the comptroller's 1-21 approval may, as an alternative to the deposit of the funds as 1-22 provided by Subsection (a), net funds received against purchases of 1-23 securities occurring within one business day. Any proceeds 1-24 received and available for reinvestment that are not reinvested 1-25 within one business day of receipt shall be deposited in the state 1-26 treasury as provided by Subsection (a). An agency authorized to 1-27 net securities transactions under this section is subject to the 1-28 accounting and reporting procedures established by the comptroller. 1-29 SECTION 2. Section 94.016, Human Resources Code, is amended 1-30 by adding Subsections (f) and (g) to read as follows: 1-31 (f) The commission may contract with a professional 1-32 management service to administer the Business Enterprises Program 1-33 trust fund. In administering the trust fund, the professional 1-34 management service may acquire, exchange, sell, or retain any kind 1-35 of investment that a prudent investor, exercising reasonable care, 1-36 skill, and caution, would acquire, exchange, sell, or retain under 1-37 the circumstances, taking into consideration the investment of all 1-38 the assets of the trust fund. 1-39 (g) With the approval of the comptroller, the commission may 1-40 select a commercial bank, depository trust company, or other entity 1-41 to serve as a custodian of the Business Enterprises Program trust 1-42 fund's securities, and money realized from those securities, 1-43 pending completion of an investment transaction. Money realized 1-44 from those securities must be: 1-45 (1) reinvested not later than one business day after 1-46 the date it is received; or 1-47 (2) deposited in the treasury not later than the fifth 1-48 business day after the date it is received. 1-49 SECTION 3. This Act takes effect immediately if it receives 1-50 a vote of two-thirds of all the members elected to each house, as 1-51 provided by Section 39, Article III, Texas Constitution. If this 1-52 Act does not receive the vote necessary for immediate effect, this 1-53 Act takes effect September 1, 2001. 1-54 * * * * *