HBA-DMH H.B. 1161 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1161 By: Eiland Human Services 7/18/2001 Enrolled BACKGROUND AND PURPOSE The Business Enterprises Program (BEP) is a federally funded program that provides opportunities for blind and visually impaired individuals to operate food services and other BEP selected businesses in public and private facilities. The 76th Legislature established a trust fund in the state treasury for the BEP retirement program. Prior to the 77th Legislature, the BEP retirement fund was only growing at a rate of about 5 percent each year. If, however, a professional management service managed the retirement fund, it might increase the fund's profits. House Bill 1161 authorizes the Texas Commission for the Blind to contract with a professional management service to manage the BEP trust fund. 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 House Bill 1161 amends the Human Resources Code to authorize the Texas Commission for the Blind (TCB) to contract with a professional management service to administer the Business Enterprises Program trust fund. In administering the trust fund, the professional management service may acquire, exchange, sell, or retain any kind of investment that a prudent investor, exercising reasonable care, skill, and caution, would acquire, exchange, sell, or retain under the circumstances, taking into consideration the investment of all the assets of the trust fund. The bill authorizes TCB, with the approval of the comptroller of public accounts, to select a commercial bank, depository trust company, or other entity to serve as a custodian of the trust fund's securities, and money realized from those securities, pending completion of an investment transaction. The bill provides that money realized from those securities must be reinvested not later than one business day after the date it is received or deposited in the treasury not later than the fifth business day after the date it is received. EFFECTIVE DATE June 15, 2001.