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A BILL TO BE ENTITLED
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AN ACT
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relating to the management of the permanent school fund by the |
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School Land Board and the State Board of Education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 43, Education Code, is amended by adding |
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Section 43.0052 to read as follows: |
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Sec. 43.0052. QUARTERLY REPORTS. Each quarter, the State |
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Board of Education shall provide to the School Land Board a |
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financial report on the portion of the permanent school fund assets |
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and funds for which the State Board of Education is responsible. |
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The report must include: |
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(1) target and actual asset allocations, by asset |
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type, based on fair market value or net asset value; |
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(2) investment performance by asset type; and |
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(3) benchmarks and benchmark performances. |
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SECTION 2. Subchapter C, Chapter 32, Natural Resources |
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Code, is amended by adding Section 32.068 to read as follows: |
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Sec. 32.068. QUARTERLY REPORTS. Each quarter, the board |
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shall provide to the State Board of Education a financial report on |
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the portion of the permanent school fund assets and funds for which |
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the board is responsible. The report must include: |
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(1) target and actual asset allocations, by asset |
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type, based on fair market value or net asset value; |
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(2) investment performance by asset type; and |
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(3) benchmarks and benchmark performances. |
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SECTION 3. Section 51.402(c), Natural Resources Code, is |
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amended to read as follows: |
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(c) Notwithstanding Subsection (a), on January 1 of each |
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even-numbered year, the market value of the investments [in real
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estate] under Subsections (a)(6) and (8) [this section on January 1
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of each even-numbered year] may not exceed an amount that is equal |
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to 15 percent of the market value of the permanent school fund on |
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that date. |
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SECTION 4. Subchapter I, Chapter 51, Natural Resources |
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Code, is amended by adding Section 51.414 to read as follows: |
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Sec. 51.414. PERMANENT SCHOOL FUND LIQUID ACCOUNT. (a) The |
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permanent school fund liquid account is established as an account |
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in the permanent school fund in the State Treasury to be used by the |
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board and the State Board of Education as provided by this section. |
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(b) Each quarter, the board shall hold a meeting and adopt a |
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resolution to release from the real estate special fund account |
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funds designated under Section 51.401 that are not being used for a |
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purpose listed in Section 51.402(a) and are not required for the |
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board's anticipated cash needs for the 90-day period following the |
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date of the meeting, to be deposited to the credit of the permanent |
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school fund liquid account in the State Treasury. |
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(c) The State Board of Education may invest funds in the |
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permanent school fund liquid account. The investments may be made |
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only in liquid assets, in the same manner that the permanent school |
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fund is managed by the State Board of Education. |
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(d) Investment income and realized capital gains derived |
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from funds in the permanent school fund liquid account shall be |
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deposited in the State Treasury to the credit of the State Board of |
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Education for investment in the permanent school fund. This |
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subsection does not require a deposit if the market value of the |
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assets held in the permanent school fund liquid account is below |
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cost. |
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(e) The State Board of Education may use funds in the |
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permanent school fund liquid account to pay for administrative |
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costs associated with implementing this section, including costs |
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associated with contracts for professional investment management, |
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investment advisory services, or custodial services. |
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(f) The board shall provide to the State Board of Education |
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in each quarterly report required by Section 32.068 the board's |
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anticipated cash needs for the six-month period following the date |
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of the report, to allow the State Board of Education to ensure that |
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the board's cash needs may be met as provided by Subsection (g). |
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(g) Not later than the fifth business day after the date of a |
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request of the board, the State Board of Education shall release |
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from the permanent school fund liquid account funds to be deposited |
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to the credit of the real estate special fund account in the State |
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Treasury in an amount requested by the board. |
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SECTION 5. This Act takes effect September 1, 2019. |