Texas § 481.607 MANAGEMENT AND INVESTMENT OF FUND.

Texas Statutes

§ 481.607 — MANAGEMENT AND INVESTMENT OF FUND.

Texas § 481.607

Code GVGovernment Code

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Bluebook

Tex. Government Code Code Ann. § 481.607 (2026).

Text

Sec. 481.607. MANAGEMENT AND INVESTMENT OF FUND.

(a)The trust company shall hold and invest the fund, and any accounts established in the fund, for and in the name of the office, taking into account the purposes for which money in the fund may be used. The fund may be co-invested with the state treasury pool.

(b)The overall objective for the investment of the fund is to maintain sufficient liquidity to meet the needs of the fund while striving to preserve the purchasing power of the fund. It is the intent of the legislature that the fund remain available in perpetuity for the purposes of this subchapter.

(c)The trust company has any power necessary to accomplish the purposes of managing and investing the assets of the fund. In managing the assets of the fund, through procedures and subj

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Sec. 481.607. MANAGEMENT AND INVESTMENT OF FUND. (a) The trust company shall hold and invest the fund, and any accounts established in the fund, for and in the name of the office, taking into account the purposes for which money in the fund may be used. The fund may be co-invested with the state treasury pool.
(b) The overall objective for the investment of the fund is to maintain sufficient liquidity to meet the needs of the fund while striving to preserve the purchasing power of the fund. It is the intent of the legislature that the fund remain available in perpetuity for the purposes of this subchapter.
(c) The trust company has any power necessary to accomplish the purposes of managing and investing the assets of the fund. In managing the assets of the fund, through procedures and subject to restrictions the trust company considers appropriate, the trust company may acquire, exchange, sell, supervise, manage, or retain any kind of investment that a prudent investor, exercising reasonable care, skill, and caution, would acquire or retain in light of the purposes, terms, distribution requirements, and other circumstances of the fund then prevailing, taking into consideration the investment of all the assets of the fund rather than a single investment.
(d) The trust company may recover the costs incurred in managing and investing the fund only from the earnings of the fund.
(e) The trust company annually shall report to the office with respect to the investment of the fund. The trust company shall contract with a certified public accountant to conduct an independent audit of the fund annually and shall present the results of each annual audit to the office. This subsection does not affect the state auditor's authority to conduct an audit of the fund under Chapter 321 .
(f) The trust company shall adopt an investment policy that is appropriate for the fund. The trust company shall present the investment policy to the investment advisory board established under Section 404.028 . The investment advisory board shall submit to the trust company recommendations regarding the policy.
(g) The office annually shall provide to the trust company a forecast of the cash flows into and out of the fund. The office shall provide updates to the forecasts as appropriate to ensure that the trust company is able to achieve the objective specified by Subsection (b).
(h) The trust company shall disburse money from the fund as directed by the office.

Legislative History

Added by Acts 2021, 87th Leg., R.S., Ch. 847 (S.B. 678 ), Sec. 1, eff. September 1, 2021. Redesignated from Government Code, Subchapter CC , Chapter 481 by Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595 ), Sec. 24.001(19), eff. September 1, 2023.