H.B. 21 78(2)    BILL ANALYSIS


H.B. 21
By: Swinford
Government Reform
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Legislation enacted during the 78th Regular Legislative Session created
the Uniform Prudent Investor Act, which provided more uniformity and
clarity in the interstate investment environment regarding the duties and
responsibilities of trustees.  An oversight resulted in the Texas County
and District Retirement system being held to a "prudent investor"
standard.  However, the standard enumerated in the Texas Constitution is a
"prudent person" standard.  H.B. 21 will provide the investment standard
for the Texas County and District Retirement System to be a "prudent
person" standard. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

H.B. 21 requires that investment decisions made by the Texas County and
District Retirement System are subject to the standard provided in the
Texas Trust code by Section 117.004(b), Property Code. 

EFFECTIVE DATE

January 1, 2004.