January 2019 Committee on School Finance/Permanent School Fund Item 8

Proposed Amendments to the Investment Procedures Manual


February 1, 2019

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT

SUMMARY:
This item provides an opportunity for the committee and board to review and adopt proposed amendments to the Investment Procedures Manual related to U.S. Security and Exchange Commission (SEC) amended rule changes for the Bond Guarantee program disclosure (SEC Rule 15c2-12).

STATUTORY AUTHORITY: Texas Constitution, Article VII, §5(f).

The Texas Constitution, Article VII, §5(f) authorizes the SBOE to acquire, exchange, sell, supervise, manage or retain investments of the Permanent School Fund and establishes the prudent person investment practice.

The full text of statutory citations can be found in the statutory authority section of this agenda.

PREVIOUS BOARD ACTION: The board adopted the Texas Permanent School Fund Investment Procedures Manual on January 24, 1995. The board last revised the manual in November 2018.

BACKGROUND INFORMATION AND JUSTIFICATION: None

PUBLIC BENEFIT:
The distribution of the Permanent School Fund will flow to the school districts and reduce the tax burden to the public and the state of Texas.

PUBLIC COMMENTS:
None

Staff Members Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund