BILL ANALYSIS Senate Research Center S.B. 1903 89R13482 KJE-F By: Campbell Education K-16 4/28/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT In 2021, the 87th Legislature established the Texas Permanent School Fund Corporation (TPSFCO) through S.B. 1232 to enhance the professional management and long-term growth of the Permanent School Fund (PSF)a constitutionally created fund that supports public education in Texas. TPSFCO was designed to manage PSF investments with greater independence, oversight, and sophistication while retaining accountability to state leaders and the public. The TPSFCO board of directors currently consists of nine members, including five State Board of Education members, the Commissioner of the General Land Office (GLO), one GLO appointee with investment expertise, and two gubernatorial appointees with relevant financial experience. However, as TPSFCO assumes a growing and more complex investment role, there is an increasing need for diversified and robust financial expertise to maximize the fund's returns. S.B. 1903 increases the number of directors on TPSFCO board from nine to eleven by adding: one appointee by the lieutenant governor; and one appointee by the speaker of the house. Both must have substantial background and expertise in investments and asset management and be approved by the senate. These additions ensure that both legislative chambers have direct input in overseeing one of the largest public education endowments in the nation while maintaining TPSFCO's focus on fund management. S.B. 1903 retains staggered six-year terms for these new appointees to ensure continuity and institutional knowledge. By expanding the board to include two new appointees with substantial expertise in investments and asset management, S.B. 1903 aims to strengthen fiduciary governance and promote strategic stewardship of Texas's education endowment for future generations of students. As proposed, S.B. 1903 amends current law relating to the composition of the board of directors of the Texas Permanent School Fund Corporation. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 43.053(a) and (c), Education Code, as follows: (a) Provides that the board of directors of the Texas Permanent School Fund Corporation (board of directors) is composed of the following 11, rather than nine, members: (1)-(2) makes no changes to these subdivisions; (3)-(4) makes nonsubstantive changes to these subdivisions; (5) one member appointed by the lieutenant governor, with the advice and consent of the senate, who is required to have substantial background and expertise in investments and asset management; and (6) one member appointed by the speaker of the house of representatives, with the advice and consent of the senate, who is required to have substantial background and expertise in investments and asset management. (c) Provides that members of the board of directors appointed under Subsections (a)(3) (relating to one member appointed by the commissioner of the General Land Office who has a certain background and expertise), (4) (relating to two members appointed by the governor, each of whom is required to have a certain background and expertise), (5), and (6) serve staggered six-year terms, with the terms of one or two members expiring on January 1 of each odd-numbered year. Makes nonsubstantive changes. SECTION 2. (a) Requires the lieutenant governor and the speaker of the house of representatives, as soon as practicable after the effective date of this Act, to appoint the initial directors under Sections 43.053(a)(5) and (6), Education Code, as added by this Act. (b) Requires the directors, as soon as practicable after the initial directors have been appointed under Sections 43.053(a)(5) and (6), Education Code, as added by this Act, to draw lots to determine which director serves a term expiring January 1, 2029, and which director serves a term expiring January 1, 2031. SECTION 3. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1903
89R13482 KJE-F By: Campbell
Education K-16
4/28/2025
As Filed
Senate Research Center
S.B. 1903
89R13482 KJE-F
By: Campbell
Education K-16
4/28/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
In 2021, the 87th Legislature established the Texas Permanent School Fund Corporation (TPSFCO) through S.B. 1232 to enhance the professional management and long-term growth of the Permanent School Fund (PSF)a constitutionally created fund that supports public education in Texas. TPSFCO was designed to manage PSF investments with greater independence, oversight, and sophistication while retaining accountability to state leaders and the public.
The TPSFCO board of directors currently consists of nine members, including five State Board of Education members, the Commissioner of the General Land Office (GLO), one GLO appointee with investment expertise, and two gubernatorial appointees with relevant financial experience.
However, as TPSFCO assumes a growing and more complex investment role, there is an increasing need for diversified and robust financial expertise to maximize the fund's returns.
S.B. 1903 increases the number of directors on TPSFCO board from nine to eleven by adding:
one appointee by the lieutenant governor; and
one appointee by the speaker of the house.
Both must have substantial background and expertise in investments and asset management and be approved by the senate.
These additions ensure that both legislative chambers have direct input in overseeing one of the largest public education endowments in the nation while maintaining TPSFCO's focus on fund management. S.B. 1903 retains staggered six-year terms for these new appointees to ensure continuity and institutional knowledge.
By expanding the board to include two new appointees with substantial expertise in investments and asset management, S.B. 1903 aims to strengthen fiduciary governance and promote strategic stewardship of Texas's education endowment for future generations of students.
As proposed, S.B. 1903 amends current law relating to the composition of the board of directors of the Texas Permanent School Fund Corporation.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 43.053(a) and (c), Education Code, as follows:
(a) Provides that the board of directors of the Texas Permanent School Fund Corporation (board of directors) is composed of the following 11, rather than nine, members:
(1)-(2) makes no changes to these subdivisions;
(3)-(4) makes nonsubstantive changes to these subdivisions;
(5) one member appointed by the lieutenant governor, with the advice and consent of the senate, who is required to have substantial background and expertise in investments and asset management; and
(6) one member appointed by the speaker of the house of representatives, with the advice and consent of the senate, who is required to have substantial background and expertise in investments and asset management.
(c) Provides that members of the board of directors appointed under Subsections (a)(3) (relating to one member appointed by the commissioner of the General Land Office who has a certain background and expertise), (4) (relating to two members appointed by the governor, each of whom is required to have a certain background and expertise), (5), and (6) serve staggered six-year terms, with the terms of one or two members expiring on January 1 of each odd-numbered year. Makes nonsubstantive changes.
SECTION 2. (a) Requires the lieutenant governor and the speaker of the house of representatives, as soon as practicable after the effective date of this Act, to appoint the initial directors under Sections 43.053(a)(5) and (6), Education Code, as added by this Act.
(b) Requires the directors, as soon as practicable after the initial directors have been appointed under Sections 43.053(a)(5) and (6), Education Code, as added by this Act, to draw lots to determine which director serves a term expiring January 1, 2029, and which director serves a term expiring January 1, 2031.
SECTION 3. Effective date: upon passage or September 1, 2025.