BSM C.S.H.B. 675 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 675
By: Walker
Natural Resources
3/8/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Public Funds Investment Act requires the treasurer, chief financial
officer, and the investment officer of a local government entity that
invests funds to attend at least 10 hours of instruction on investment
every two years.  Current law creates the potential for multiple members of
the district to attend training. C.S.H.B. 675 reduces the amount of
instruction to be taken by the investment officer of a district, and
requires only one officer of a district to attend investment training. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 675 amends the Water and Government codes to authorize the board
of directors of a district to contract with a person to act as investment
officer (officer) of the district.  The bill requires only the officer to
attend investment training.  The bill sets forth provisions regarding the
content of the investment training and requires the officer to attend four
hours of initial training and four hours each two-year period after the
first year. The bill also requires that each January, each entity that has
provided investment training is required to report to the comptroller a
list of the districts for which the entity provided the required training
during the previous calendar year. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 675 modifies the original by changing the required initial amount
of training for an investment officer from eight hours to four hours.  The
substitute also removes the provision that exempts an investment officer
from having to complete the training if at least 95 percent of the
district's investments are low risk.