Bill Text: TX HB4388 | 2019-2020 | 86th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the management of the permanent school fund by the School Land Board and the State Board of Education and a study regarding distributions from the permanent school fund to the available school fund.
Spectrum: Slight Partisan Bill (Republican 13-7)
Status: (Passed) 2019-06-07 - Effective on 9/1/19 [HB4388 Detail]
Download: Texas-2019-HB4388-Engrossed.html
Bill Title: Relating to the management of the permanent school fund by the School Land Board and the State Board of Education and a study regarding distributions from the permanent school fund to the available school fund.
Spectrum: Slight Partisan Bill (Republican 13-7)
Status: (Passed) 2019-06-07 - Effective on 9/1/19 [HB4388 Detail]
Download: Texas-2019-HB4388-Engrossed.html
86R27589 GCB-D | ||
By: Murphy, Huberty, Capriglione, Zerwas, | H.B. No. 4388 | |
Shine, et al. |
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relating to the management of the permanent school fund by the | ||
School Land Board and the State Board of Education. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 43, Education Code, is amended by adding | ||
Section 43.0052 to read as follows: | ||
Sec. 43.0052. QUARTERLY REPORTS. Each quarter, the State | ||
Board of Education shall provide to the School Land Board a | ||
financial report on the portion of the permanent school fund assets | ||
and funds for which the State Board of Education is responsible. | ||
The report must include: | ||
(1) target and actual asset allocations, by asset | ||
type, based on fair market value or net asset value; | ||
(2) investment performance by asset type; and | ||
(3) benchmarks and benchmark performances. | ||
SECTION 2. Subchapter C, Chapter 32, Natural Resources | ||
Code, is amended by adding Section 32.068 to read as follows: | ||
Sec. 32.068. QUARTERLY REPORTS. Each quarter, the board | ||
shall provide to the State Board of Education a financial report on | ||
the portion of the permanent school fund assets and funds for which | ||
the board is responsible. The report must include: | ||
(1) target and actual asset allocations, by asset | ||
type, based on fair market value or net asset value; | ||
(2) investment performance by asset type; and | ||
(3) benchmarks and benchmark performances. | ||
SECTION 3. Section 51.402(c), Natural Resources Code, is | ||
amended to read as follows: | ||
(c) Notwithstanding Subsection (a), on January 1 of each | ||
even-numbered year, the market value of the investments [ |
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to 15 percent of the market value of the permanent school fund on | ||
that date. | ||
SECTION 4. Subchapter I, Chapter 51, Natural Resources | ||
Code, is amended by adding Section 51.414 to read as follows: | ||
Sec. 51.414. PERMANENT SCHOOL FUND LIQUID ACCOUNT. (a) The | ||
permanent school fund liquid account is established as an account | ||
in the permanent school fund in the State Treasury to be used by the | ||
board and the State Board of Education as provided by this section. | ||
(b) Each quarter, the board shall hold a meeting and adopt a | ||
resolution to release from the real estate special fund account | ||
funds designated under Section 51.401 that are not being used for a | ||
purpose listed in Section 51.402(a) and are not required for the | ||
board's anticipated cash needs for the 90-day period following the | ||
date of the meeting, to be deposited to the credit of the permanent | ||
school fund liquid account in the State Treasury. | ||
(c) The State Board of Education may invest funds in the | ||
permanent school fund liquid account. The investments may be made | ||
only in liquid assets, in the same manner that the permanent school | ||
fund is managed by the State Board of Education. | ||
(d) Investment income and realized capital gains derived | ||
from funds in the permanent school fund liquid account shall be | ||
deposited in the State Treasury to the credit of the State Board of | ||
Education for investment in the permanent school fund. This | ||
subsection does not require a deposit if the market value of the | ||
assets held in the permanent school fund liquid account is below | ||
cost. | ||
(e) The State Board of Education may use funds in the | ||
permanent school fund liquid account to pay for administrative | ||
costs associated with implementing this section, including costs | ||
associated with contracts for professional investment management, | ||
investment advisory services, or custodial services. | ||
(f) The board shall provide to the State Board of Education | ||
in each quarterly report required by Section 32.068 the board's | ||
anticipated cash needs for the six-month period following the date | ||
of the report, to allow the State Board of Education to ensure that | ||
the board's cash needs may be met as provided by Subsection (g). | ||
(g) Not later than the fifth business day after the date of a | ||
request of the board, the State Board of Education shall release | ||
from the permanent school fund liquid account funds to be deposited | ||
to the credit of the real estate special fund account in the State | ||
Treasury in an amount requested by the board. | ||
SECTION 5. This Act takes effect September 1, 2019. |