LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 30, 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 and functions of the Texas Treasury Safekeeping Trust Company.), Committee Report 1st House, Substituted ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** 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