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Acts 1989, 71 st 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), (f).
<br />V.T.C.A., Government Code 2256.002, 2256.051.
<br />NOTES OF DECISIONS
<br />Public funds 1
<br />1. Public funds
<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. OpAtty.Gen.1998, No. DM-489.
<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. OpAtty.Gen.1998, No. DM-489.
<br />2256.003. Authoritv to Invest Funds_ Entities Subiect to This Chanter
<br />(a) Each governing body of the following entities may purchase, sell, and invest its funds and funds under its control
<br />in investments authorized under this subchapter in compliance with investment policies approved by the governing
<br />body and according to the standard of care prescribed by Section 2256.006:
<br />(1) a local government
<br />(2) a state agency;
<br />(3) a nonprofit corporation acting on behalf of a local government or a state agency; or
<br />(4) an investment pool acting on behalf of two or more local governments, state agencies, or a combination of those
<br />entities.
<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 far 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 />(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 />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 />Copr. C West 2001 No Claim to Orig. U. S. Govt. Works
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