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<br />Acts 1989, 71st Leg., ch. 750, ~ 1. <br />Acts 1993, 73rd Leg., ch. 946, ~ 1. <br />Vernon's Ann.Civ.St. arts. 842a-2. ~ 2(a). (c)(4); 4413(34c), ~ 1. <br />Acts 1993, 73rd Leg., ch. 268, ~ 1. <br />Acts 1995, 74th Leg., ch. 76, ~ 5.45(e), (t). <br />V.T.CA. Government Code ~~ 2256.002. 2256.051. <br /> <br />NOTES OF DECiSIONS <br /> <br />Public funds 1 <br /> <br />1. Public funds <br /> <br />The Public Funds Investment Act. Government Code chapter 2256, subchapter A, applies only to certain public <br />funds. Public funds are those funds belonging to the state or a political subdivision that the state has collected in <br />accordance with a general law and that will be used to serve the public interest generally. A governmental entity <br />may invest under the act only public funds that, among other things, the entity is authorized to invest by a statute <br />other than the act. Op.Atty.Gen.1998, No. DM-489. <br /> <br />The Commissioner of Banking may not invest under the act [the Public Funds Investment Act, Government Code <br />chapter 2256, subchapter A] funds of a liquidated, uninsured bank or a trust company in conservatorship because the <br />funds are not public funds. Likewise, the Commissioner may not invest under the act funds of a liquidated <br />perpetual-care cemetery. The Commissioner may not invest under the act seized prepaid-funeral-contract funds. nor <br />may the Commissioner invest under the act money in the prepaid-funeral-contract guaranty fund. Finally, the <br />Commissioner may not invest travel-advance funds under the act because the Commissioner does not have the <br />statutory authority to do so. Op.Atty.Gen.1998, No. DM-489. <br /> <br />~ 2256.003. Authoritv to Invest Funds; Entities Subiect to This Chapter <br /> <br />(a) Each governing body of the following entities may purchase, sell, and invest its funds and funds under its <br />control in investments authorized under this subchapter in compliance with investment policies approved by the <br />governing body and according to the standard of care prescribed by Section 2256.006: <br /> <br />(1) a local government; <br /> <br />(2) a state agency; <br /> <br />(3) a nonprofit corporation acting on behalf of a local government or a state agency; or <br /> <br />(4) an investment pool acting on behalf of two or more local governments, state agencies, or a combination of those <br />entities. <br /> <br />(b) in the exercise of its powers under Subsection (a), the governing body of an investing entity may contract with <br />an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.c. Section 80b-1 et <br />seq.) or with the State Securities Board to provide for the investment and management of its public funds or other <br />funds under its control. A contract made under authority of this subsection may not be for a term longer than two <br />years. A renewal or extension of the contract must be made by the governing body of the investing entity by order, <br />ordinance. or resolution. <br /> <br />(c) This chapter does not prohibit an investing entity or investment officer from using the entity's employees or the <br />services of a contractor of the entity to aid the investment officer in the execution of the officer's duties under this <br />chapter. <br /> <br />Amended by Acts 1995, 74th Leg., ch. 402. ~ 1, eff. Sept. 1, 1995; Acts 1999. 76th Leg., ch. 1454. ~ 2, eff. Sept. 1, <br />1999. <br /> <br />Copr. @West2oo1 No Claim to Orig. U.S. Govt. Works <br />