Bill > HB5270

This bill modifies Texas government code regarding authorized investments by governmental entities, primarily focusing on expanding and clarifying definitions and regulations for investment pools and managers. The bill introduces a new definition of "qualified manager" which now includes investment management firms registered under the Investment Advisers Act or with the State Securities Board, banks, and bank holding companies. It allows governmental entities to contract with these qualified managers for investment and management of public funds for up to two years. The bill also adds several new requirements for investment pools, including mandating that they invest at least 35 percent of funds with authorized investments in a Texas bank, prohibiting sponsorship or royalty agreements with associations or organizations, and requiring that annual audits be posted on both the investment pool's publicly accessible website and the comptroller's website. Additionally, the bill requires investment pools to provide more detailed disclosure documents, including information about investments, pool objectives, performance history, and risks. These changes aim to increase transparency, diversify investment options, and provide more safeguards for governmental entities when managing public funds. The bill is set to take effect on September 1, 2026.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5270