BILL ANALYSIS

H.B. 293

By: King, Ken

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been suggested that certain investment training requirements for public school district and municipal financial officers were intended to provide information on the risks of making investments in the stock market but that they are unnecessary with regard to investments in bank-insured interest‑bearing accounts or certificates of deposit. H.B. 293 seeks to address this issue by revising certain training exemptions and requirements applicable to district and municipal financial officers making investments in such accounts or certificates.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 293 amends the Government Code to remove the exemption for an officer of a municipality that does not invest municipal funds or only deposits those funds in interest-bearing deposit accounts or in authorized certificates of deposit from the requirement that the officer attend an investment training session at least once in an applicable two-year period and receive not less than 10 hours of instruction relating to investment responsibilities under the Public Funds Investment Act from an approved source.

H.B. 293 exempts the treasurer, chief financial officer, and investment officer of a school district or municipality that does not invest district or municipal funds, as applicable, or only deposits those funds in interest-bearing accounts or in authorized certificates of deposit from the requirement that the treasurer or applicable officer attend an investment training session at least once in an applicable two-year period and receive not less than eight hours of instruction relating to investment responsibilities under the Public Funds Investment Act from an approved source.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2019.