By Wilson H.B. No. 2523
77R7276 JJT-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and duties of the State Investment
1-3 Commission.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle F, Title 10, Government Code, is amended
1-6 by adding Chapter 2262 to read as follows:
1-7 CHAPTER 2262. STATE INVESTMENT COMMISSION
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 2262.001. DEFINITIONS. In this chapter:
1-10 (1) "Commission" means the State Investment
1-11 Commission.
1-12 (2) "State agency" includes any agency or institution
1-13 of state government.
1-14 (Sections 2262.002-2262.050 reserved for expansion
1-15 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
1-16 Sec. 2262.051. COMPOSITION OF COMMISSION. (a) The
1-17 commission is composed of six commissioners appointed by the
1-18 governor with the advice and consent of the senate to six-year
1-19 staggered terms. The terms of two commissioners expire June 1 of
1-20 each odd-numbered year.
1-21 (b) To be eligible to be appointed as a commissioner, a
1-22 person must be an investment professional or have extensive
1-23 experience in the investment of public money.
1-24 Sec. 2262.052. OFFICERS. The governor shall designate a
2-1 commissioner as presiding officer of the commission. Other
2-2 officers of the commission are selected from among the
2-3 commissioners by agreement of the commissioners or by election.
2-4 Sec. 2262.053. GENERAL MANAGER. The commission shall employ
2-5 a general manager to direct the daily affairs of the commission.
2-6 (Sections 2262.054-2262.100 reserved for expansion
2-7 SUBCHAPTER C. POWERS AND DUTIES
2-8 Sec. 2262.101. AUTHORITY OF COMMISSION. Notwithstanding any
2-9 other law, the commission has full authority to manage or direct
2-10 the investment of all money held, in trust or otherwise, by the
2-11 state or by a state agency or official.
2-12 Sec. 2262.102. MONITORING AND AUDITING FUNCTIONS. The
2-13 commission shall monitor and may audit any account or fund of money
2-14 held by the state or by a state agency or official.
2-15 Sec. 2262.103. POLICIES AND GUIDELINES. (a) The commission
2-16 by rule shall develop suggested and mandatory investment policies
2-17 and guidelines for money subject to the jurisdiction of the
2-18 commission.
2-19 (b) The commission shall review investment rules, policies,
2-20 and guidelines of state agencies and officials and may order
2-21 changes to a rule, policy, or guideline that does not meet the
2-22 commission's approval.
2-23 Sec. 2262.104. DIRECT CONTROL OF INVESTMENTS. By order of
2-24 the commission, the commission may take control of any account or
2-25 fund of money held by the state or by a state agency or official
2-26 for purposes of directing the investment of the money. The
2-27 commission, in exercising its authority under this section, may not
3-1 interfere with the liquidity or availability of the money so that
3-2 the agency or official in charge of disbursing or spending the
3-3 money is impaired in the agency's or official's functions.
3-4 Sec. 2262.105. INDIRECT CONTROL OF INVESTMENTS. The
3-5 commission by order may direct any state agency or official to
3-6 invest money held by the agency or official in accordance with the
3-7 terms of the order.
3-8 (Sections 2262.106-2262.150 reserved for expansion
3-9 SUBCHAPTER D. DUTIES OF STATE AGENCIES AND OFFICIALS
3-10 Sec. 2262.151. POLICIES AND GUIDELINES OF COMMISSION AND
3-11 AGENCY OR OFFICIAL. (a) A state agency or official that holds
3-12 money shall make investments of that money in accordance with the
3-13 rules, policies, and guidelines adopted by the commission.
3-14 (b) For a matter not addressed by the commission's rules,
3-15 policies, or guidelines, a state agency or official may adopt
3-16 rules, policies, and guidelines for the investment of money. The
3-17 rules, policies, and guidelines must be consistent with those of
3-18 the commission.
3-19 (c) A state agency or official shall submit a copy of any
3-20 rules, policies, and guidelines adopted under Subsection (b) to the
3-21 commission on adoption.
3-22 Sec. 2262.152. COMMISSION ORDERS. A state agency or
3-23 official shall comply with an order of the commission regarding
3-24 matters related to the investment of money.
3-25 SECTION 2. This Act takes effect on the date the
3-26 constitutional amendment proposed by the 77th Legislature, Regular
3-27 Session, 2001, providing for the establishment of the State
4-1 Investment Commission takes effect. If the proposed constitutional
4-2 amendment is not approved by the voters, this Act has no effect.