Amend SB 2900 (house committee report) as follows:
(1) On page 1, line 23, between "the" and "that", strike
"legislature" and substitute "presiding officer of each house of the legislature".
(2) On page 2, in line 4, between "Section" and ",", strike "403.1041(a)" and substitute "403.1041".
(3) On page 2, in lines 4-5, between "amended" and "to", insert "by amending Subsections (a), (b), (c), (e), and (h) and adding Subsections (g),(i), and (j)".
(4) On page 2, following line 26, insert the following:
(b) [With the advice of and in consultation with the advisory committee, the]The comptroller shall administer the account and shall manage the assets of the account.
(c) In managing the assets of the account, the comptroller[,-with the advice of and in consultation with the advisory committee,] may acquire, exchange, sell, supervise, manage, or retain, through procedures and subject to restrictions the comptroller establishes and in amounts the comptroller considers appropriate, any kind of investment that a person of ordinary prudence, discretion, and intelligence, exercising the judgment and care under the circumstances prevailing at that time, would acquire or retain for the person's own account in the management of the person's affairs, not in regard to speculation but in regard to the permanent disposition of the person's money, considering the probable income as well as the probable safety of the capital. Investment and management decisions concerning individual investments must be evaluated not in isolation but in the context of the investment portfolio as a whole and as part of an overall investment strategy consistent with the investment objectives of the account.
(e) The comptroller[, with the advice of and in consultation with the advisory committee, ] may use the earnings of the account for any investment expense, including to obtain the advice of appropriate investment consultants for managing the assets in the account.
(g) Members of the advisory board serve without compensation but are entitled to reimbursement for actual and necessary expenses in attending meetings of the advisory board or performing other official duties authorized by the comptroller.
(h) The comptroller shall adopt rules necessary to implement the comptroller's duties under this section, including rules distinguishing the net earnings of the account that may be distributed under Subsection (f) from earnings used for investment expenses under Subsection (e) and from the money and assets that are the corpus of the account. [A rule adopted by the comptroller under this subsection must be submitted to the advisory committee and may not become effective before the rule is approved by the advisory committee. If the advisory committee disapproves a proposed rule, the advisory committee shall provide the comptroller the specific reasons that the rule was disapproved.]
(i) The comptroller shall annually present to the advisory committee the following information:
(1) a summary of the account's investment performance;
(2) the dollar amount the comptroller expects to distribute to the political subdivisions pursuant to Subsection (f); and
(3) any changes to the applicable investment policy statement or rules promulgated or amended by the comptroller pursuant to Subsection (h).
(j) The advisory committee may provide advice and consultation to the comptroller regarding the administration of the account's investments and the dollar amount to be distributed to the political subdivisions, subject to the requirements and limitations in the applicable investment policy statement, laws, and regulations.
(5) On page 3, strike lines 18-23, and substitute the following:
(a) The tobacco settlement permanent trust account administration advisory committee shall advise the department on the implementation of the department's duties under this subchapter and may advise the comptroller on the administration of the comptroller's duties under Section 403.1041, Government Code.
(6) Add the following appropriately numbered SECTIONS to the bill and renumbering subsequent sections accordingly:
SECTION ____. Section 404.028, Government Code, is amended to read as follows:
(a) The comptroller shall establish an investment advisory board to advise the comptroller and the trust company regarding investments that the comptroller makes by and through the trust company under this subchapter or other law. For purposes of this section, the deposit of state funds in a state depository is not considered an investment. The advisory board serves in an advisory capacity only and is not a fiduciary with respect to the investments made by the comptroller by and through the trust company under this subchapter or other law. In this section, "trust company" means Texas treasury safekeeping trust company.
(b) The comptroller shall appoint members to the advisory board who possess the expertise appropriate for advising the comptroller with regard to one or more types of investments that the comptroller may make. The members of the advisory board must have knowledge of or experience in finance, including the management of funds or business operations.
(c) The comptroller shall determine the number of members of the advisory board. The comptroller may adopt rules governing the advisory board, including rules regarding terms of service and removal. [A member serves on the advisory board at the will of the comptroller.]
(d) Chapter 2110 does not apply to the [size, composition, or duration of] the advisory board.
(e) A person is not eligible for appointment to the advisory board if the person or the person's spouse:
(1) is employed by or participates in the management of a business entity or other organization receiving funds from the trust company;
(2) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization receiving funds from the trust company; or
(3) receives money from the business entity or other organization receiving funds from the trust company that exceeds five percent of the person's gross income for the preceding calendar year.
(f) Before a member of the advisory board may assume the member's duties, the member must complete a training program providing information regarding:
(1) assets managed by the comptroller by and through the trust company under this subchapter or other law; and
(2) the applicable statutes, including Chapter 551 and 552.
SECTION ____. Section 404.101, Government Code, is amended by amending Subdivision (1) to read as follows:
(1) "Advisory board" means the [Texas treasury safekeeping trust company] comptroller's investment advisory board.
(7) On pages 3-4, strike lines 26-27 and lines 1-4, and insert the following: The following provisions are repealed:
(1) Sections 403.028(f), 403.1042, 403.618, 4901.0110; 404.108, 404.109, 404.110, 404.111, 404.112, and 404.113, Government Code;
(2) Section 403.602(14), Government Code, as added by Chapter 377 (HB 5), Acts of the 88th Legislature, Regular Session, 2023; and
(3) Chapter 395, Finance Code.
(8) Renumber SECTIONS of the bill as appropriate.