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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) actual allocation and target allocation of assets; |
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(2) a summary of investment types; |
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(3) asset and sector performance; and |
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(4) benchmarks. |
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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) actual allocation and target allocation of assets; |
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(2) a summary of investment types; |
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(3) asset and sector performance; and |
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(4) benchmarks. |
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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 sum of any funds designated under Section |
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51.401 not being used for a purpose listed in Subsection (a), |
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holdings in the permanent school fund liquid account, and the |
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market value of the investments in real estate made under this |
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section [on January 1 of each even-numbered year] may not exceed an |
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amount that is equal to 15 percent of the market value of the |
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permanent school fund on that date. |
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SECTION 4. Section 51.4131, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 51.4131. REPORT ON ANTICIPATED TRANSFER OF FUNDS; |
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DEADLINE. (a) Not later than September 1 of each even-numbered |
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year, the board shall submit to the legislature, comptroller, State |
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Board of Education, and Legislative Budget Board a report that, |
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specifically and in detail, states the date a transfer will be made |
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and the amount of money the board will transfer during the |
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subsequent state fiscal biennium from the real estate special fund |
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account of the permanent school fund established under Section |
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51.401 to the available school fund or the State Board of Education |
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for investment in the permanent school fund. |
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(b) The board shall make any transfer described in a report |
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under Subsection (a) not later than September 1 of the next |
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even-numbered year. |
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SECTION 5. 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 cash needs for the 90-day period following the date of the |
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meeting, to be deposited to the credit of the permanent school fund |
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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 or markets, in a manner authorized by law for |
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the investment of the permanent school fund. |
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(d) Investment income and capital gains derived from funds |
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in the permanent school fund liquid account shall be deposited in |
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the State Treasury to the credit of the State Board of Education for |
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investment in the permanent school fund. This subsection does not |
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require a deposit if the value of the assets held in the permanent |
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school fund liquid account is below book value. |
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(e) Funds may be appropriated to the State Board of |
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Education from the permanent school fund liquid account to pay for |
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administrative costs associated with implementing this section, |
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including costs associated with contracts for professional |
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investment management or investment advisory 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 10th day after the date of a request |
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of the board, the State Board of Education shall release from the |
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permanent school fund liquid account funds to be deposited to the |
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credit of the real estate special fund account in the State Treasury |
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in an amount requested by the board. |
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SECTION 6. This Act takes effect September 1, 2019. |