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

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GOVER..''IlMENT CODE Title 1 0 (k) A wrinencopy of the investment policy shall be presented to any person offering to engage in an investment transaction with an investing entity. For purposes of this subsection. a business organization includes investment pools. Nothing in this subsection relieves the investing entity of'the responsibility for monitoring the investments made by the investing entity to deternline that they are in compliance with the investment policy. The qualified representative of the business organization offering to engage in an investment transaction with - - - - . an investing entity shall execute a wrinen instrument in a form acceptable. to the investing entity and the business organization substantially to the effect that the business organization has: (1) received and reviewed the investment policy of the. entity; and (2) acknowledged that the business organization has implemented reason- able procedures and controls in an effort to preclude investment transactions conducted between the entity and the organization that are not authorized by the entity's invesrment policy. except to the extent that this authorization is dependent on an analysis of the makeup of the entity's entire portfolio or requires an interpretation of subjective inv'esnnent standards. (l) The investment officer of an entitY may not acquire or othe:-v.ise obtain any authorized investment described in the investment policy of the investing entity from a person who has not delivered to the entity the instrument required by Subsection (k). (m) An investing entity, in conjunction with its annual financial audit, shall perform. a compliance audit of management controls on investments and adherence to the entity.'s established investment policies. State agencies shall report the results of the audit performed under this .subsection to .the state auditor. The state auditor shall compile the results of reports received under this subsection and annually report those results to the legislative audit conimit- tee. s 2?-6 00- ::; -;). ;) ---. J Amended by Acts 1995, i4ili Leg.. ch. 402. 9 1. eff. Sept. 1. 1995; Acts 1997, 75th Leg.. ch.685.9 1. eff. Sept. 1. 1997; Acts 1997, 75th Leg.. ch. 1421. 93. eff.Sept. 1. 1997. Historical and Statutory Notes ActS 1997. 75th Leg.. ch. 685. rc"TO'C subsec. (h). which previously read: "An officer or employee of a commission cre. a'ed under Chao,er 391. Local Government Code. is indistibl~ '0 be desirna,ed as an invest. men' officer ,mder Subsection (I) ." ActS 1997. 75th Leg.. ch. 1421. in subsec. (b). in subd. (4). in par. (C). substinned "dollar- weigh'ed average" for "ave:-age dollar.weigh,. ed". added pan. (D) and (E). and made other nonsubstantive changes; in sub:lec. (d). inserted "or group of. funds": in suosec. (e). inserted 'The governing body shall adopt a wrinen in- strument bv rule. order. ordinance. or rcsolu- 'ionsuting'that it has reviewed the investment polic~' and investmen, str.1,egies and that the wrinen instrument so adop,ed shall record any changes made to either the invescDe:n policy or investmen' stratecies."; in subsce. (I). deleted ". Unless othenvise- authorized by law. a person may not deposit. withdraw. invest. transfer, or mana"e in any other manner funds of a state agenc).. local 'government. or investment pool without express wrinen authority of the gove:-n- ing body. chief executive officer. or chief finan- cial officer of the state agen<=:,'. local govern- ment. or invesonent pool.... deleted "deposit. withdraw.... deleted ". tr:lnsfer. or manage", and insened "In the administration of the duties of an investIIlent officer. the person des- i"naled as invcsunent officer shall exen:ise the judgment and care. under prevailing circum- stances. tha' a prudent person would exercise in the mana"ement of the person' s own affairs. Unless authoi-ized bylaw. a person may not _.J