Bill Text: TX SB2339 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the investment or deposit of school district reserve funds and the establishment of a school reserves investment fund.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-23 - Referred to Finance [SB2339 Detail]
Download: Texas-2023-SB2339-Introduced.html
| 88R11339 MEW-D | ||
| By: Middleton | S.B. No. 2339 | |
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| relating to the investment or deposit of school district reserve | ||
| funds and the establishment of a school reserves investment fund. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter E, Chapter 45, Education Code, is | ||
| amended by adding Section 45.114 to read as follows: | ||
| Sec. 45.114. SCHOOL DISTRICT RESERVE FUNDS. (a) | ||
| Notwithstanding Chapter 2256, Government Code, or any other | ||
| provision of law, with respect to reserve funds held by a school | ||
| district, the district may only: | ||
| (1) invest those funds in the school reserves | ||
| investment fund established under Section 403.1031, Government | ||
| Code; or | ||
| (2) deposit those funds in a depository bank of the | ||
| district under Subchapter G. | ||
| (b) The commissioner may adopt rules providing guidance to | ||
| districts regarding a district's determination of its reserve funds | ||
| for purposes of this section. | ||
| SECTION 2. Subchapter G, Chapter 403, Government Code, is | ||
| amended by adding Section 403.1031 to read as follows: | ||
| Sec. 403.1031. SCHOOL RESERVES INVESTMENT FUND. (a) The | ||
| school reserves investment fund is a trust fund outside the state | ||
| treasury that is administered by the comptroller. | ||
| (b) The fund consists of: | ||
| (1) money of this state that is appropriated to the | ||
| comptroller for deposit in the fund and subsequent investment; | ||
| (2) money provided by school districts for deposit in | ||
| the fund and subsequent investment; and | ||
| (3) earnings on investments of fund money. | ||
| (c) The comptroller may use fund money only to: | ||
| (1) make investments as described by Subsection (d); | ||
| and | ||
| (2) repay the principal of and pay interest on | ||
| investments made using fund money. | ||
| (d) For the purpose of investing the assets of the school | ||
| reserves investment fund, subject to Subsection (e), the | ||
| comptroller may acquire, exchange, sell, supervise, manage, or | ||
| retain any kind of investment that a prudent investor exercising | ||
| reasonable care, skill, and caution would acquire, exchange, sell, | ||
| supervise, manage, or retain in light of the purposes, terms, | ||
| distribution requirements, and other circumstances then prevailing | ||
| for the fund, taking into consideration the investment of all the | ||
| assets of the fund rather than a single investment. | ||
| (e) The comptroller must comply with Chapter 809 in | ||
| investing the assets of the school reserves investment fund under | ||
| Subsection (d). | ||
| (f) The comptroller shall use fund money to repay a school | ||
| district's or the state's investment in the fund and pay any | ||
| interest on that investment. | ||
| (g) The comptroller shall annually submit a report to the | ||
| governor, the lieutenant governor, the speaker of the house of | ||
| representatives, and each member of the legislature. The report | ||
| must include information regarding: | ||
| (1) the total amount of money held in the fund; | ||
| (2) the return on investments made with fund money; | ||
| and | ||
| (3) the overall health of the fund portfolio. | ||
| SECTION 3. This Act takes effect September 1, 2023. | ||
