Relating to authorized investments by governmental entities.
Impact
The legislation will impose stricter eligibility requirements for investment pools, mandating that they meet established rating criteria and ensure continuous financial reporting. By requiring investment pools to provide monthly reports detailing their investment types, maturities, sizes, and other critical financial data, SB2642 aims to promote transparency and better risk management in the investments of public funds. This will likely lead to enhanced oversight and protection of public funds from malfeasance and mismanagement.
Summary
SB2642 proposes amendments to the Government Code concerning the authorized investments by governmental entities in Texas. This bill aims to clarify the definition of a 'qualified manager' for public funds investment pools, ensuring that only investment management firms, banks, and bank holding companies that meet specific criteria can manage public funds. By delineating these roles, the bill is designed to enhance the professionalism and accountability of investment managers dealing with public entity funds.
Contention
Some points of contention may arise regarding the potential increased operational costs for public entities due to these new compliance requirements. Smaller municipalities or organizations may find it challenging to meet the bill's stipulations, effectively limiting their investment options or leading to increased reliance on larger financial institutions. Furthermore, there could be debates about the impact on local autonomy when it comes to financial management as state-level criteria could overshadow local governance needs, thereby raising concerns among local leaders.
Relating to authorized investments of public money by certain governmental entities and the confidentiality of certain information related to those investments.
Relating to the fiduciary responsibility of governmental entities and the investment agents, plan administrators, or qualified vendors acting on behalf of those entities.
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the funding of projects by the Public Utility Commission of Texas to promote the reliability and resiliency of the power grid in this state; authorizing the issuance of revenue bonds.
Relating to a prohibition against the consideration of race or ethnicity as a factor in governmental employment or contracting, in other governmental functions, and in higher education admissions.