Bill > SB2642

This bill modifies the Texas Government Code to enhance regulations around governmental investment practices by expanding the definition of a "qualified manager" to include investment management firms registered with the Investment Advisers Act or State Securities Board, banks, and bank holding companies. The bill allows governmental entities to contract with these qualified managers for investment and management of public funds, with contract renewals requiring explicit approval by the governing body. Additionally, the bill introduces new transparency requirements for investment pools, mandating disclosure of whether any sponsorship agreements or royalties are paid to associations or organizations from pool funds or interest income. Investment pools must now post their annual audits on publicly accessible websites, including the comptroller's website, and are prohibited from entering into royalty or sponsorship agreements. The bill also requires investment pools to invest at least 35% of their funds with authorized investments in banks located in Texas. These changes aim to increase transparency, accountability, and local economic engagement in governmental investment practices, with the provisions set to take effect on September 1, 2026.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2642