LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 21, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1611  by Fraser (Relating to the structure of the Texas
               Treasury Safekeeping Trust Company.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Chapter 404 of the Government Code, relating to the
Texas Treasury Safekeeping Trust Company (TTSTC).  The bill would allow
the Comptroller to appoint an investment advisory board (IAB) to advise
the Comptroller with respect to managing the assets held by TTSTC.  The
IAB would consist of seven members, appointed by the Comptroller, with
the advice of the Governor, the Lieutenant Governor, and the Speaker of
the House of Representatives.  The bill would grant the TTSTC the
authority to hold a reserve balance as required by the Federal Reserve
System, or as required for participation in a depository trust company.
The bill would grant the Comptroller the authority to contract with
private professional investment managers to manage or assist in managing
assets held by the TTSTC.

Under current law, the authority to invest and manage the investments
addressed by this bill is granted to the Comptroller.  This bill would
grant the Comptroller the authority to establish an IAB, but would not
require the Comptroller to establish an IAB.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   308   State Auditor's Office, 304   Comptroller of
                   Public Accounts
LBB Staff:         JK, SD, WP