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.