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.
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