1999-003-CHAPTER 2256 OF THE TEXAS GOVERNMENT CODE, PUBLIC FUND INVESTMENT ACT

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: .a .- GE'iERAL GOVER..'i:\<lE:'-iT ::i 2256.005 Ch. 2256 local government, or investment pool as investment officer to be responsible for the investment of its funds consistent with the investment policy adopted by the entity. Authority granted to a person to invest an entity's funds is effective umil rescinded by the investing entity or until termination of the person's employ- ment by the investing entity. In the administration of the duties of an investment officer, the person designated -as investment officer shall exercise the judgment and care, under preVailing circumsumces, that a prudent person would exercise in the management of the person's own affairs. Unless autho- rized by law, a person may not deposit, withdraw, transfer, or manage in any other manner the funds of the investing entity. (g) Subsection (f) does not apply to a state agency, local government, or investment pool for which an officer of the entity is assigned by law the function of investing its funds. Te.,,! of subsec. (h) as amended by Acts 1997, 75rh Leg., ch. 685, S 1 (h) An officer or employee of a commission created under Chapter 391, Local Gove:-nment Code, is ineligible to be an investment officer for the c9mmission under Subsection (f) if the officer or emolovee is an inves1:ment officer desie:nat- . .. . - ed under Subsection (f) for another local government. Te.,,! of subsec. (h) as amended by Acrs 1997, 75rh Leg., ch. 1421, S 3 (h) A.Tl officer or employee of a commission created under Chap1:er 391, Local Government Code, is ineligible to be designated as an invesnnent officer unde:- Subsection (f) for any investing entity other than for that commission. (i) An investment officer of an entity who has a personal business relation- ship with a business organization offering to engage in an investment transac- tion with the en~ty shall file a statement disclosing that personal business ..l interest. An invesnnent officer who is related within the second degree by affinity or consan!!:Uinitv, as determined under Chaoter 573, to an individual see!ci.n"e: to sell ~ inv~rment to the investinent dfficer's entity shall file a statem~m disclosing that relationship. A statement required und~r this subsec- tion must be filed with the Texas Ethics Commission and the governing body of the entity. For purposes of this subsection, an investment officer has a personal business relationship with a business organization if: (l) the invesrment officer owns 10 percent or more of the voting stock or shares of the business ore:anization or owns 55,000 or more of the fair market value of the business organization; (2) Eimc:ls" received by the investment officer from the business. organization exceed 10 percent. of the invesrmem officer's gross income for the previous year; or (3) the investment officer has acouired from the business ore:anization during the previous year invesrments ~ith a book value of 52,500 0; more for. the personal account of the investment officer. (j) The governing body of an investing entity may speciiy in its investment . policy that any investment authorized by this chapter is not suitable. ..--: - I ,... _0.-