November 2019 Committee on School Finance/Permanent School Fund Item 7
Authorization to Issue a Request for Qualifications for Bond Guarantee Program Counsel for the Permanent School Fund
November 15, 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 approve the issuance of a request for qualifications for legal counsel for the Bond Guarantee Program (BGP) of the Permanent School Fund.
The Texas Constitution, Article VII, §2 and §5 establish the permanent school fund, the assets that comprise the permanent school fund, the bond guarantee program, the available school fund, and authorize the State Board of Education (SBOE) to manage and invest the permanent school fund in accordance with the prudent person standard.
TEC, §45.051-§45.063 authorizes the Bond Guarantee Program whereby certain bonds issued by school districts are guaranteed by the permanent school fund.
Administrative rules found in 19 TAC Chapter 33 provide a statement of investment objectives, policies, and guidelines of the Texas Permanent School Fund and Bond Guarantee Program as adopted by the SBOE.
The full text of statutory citations can be found in the statutory authority section of this agenda.
PREVIOUS BOARD ACTION: None
BACKGROUND INFORMATION AND JUSTIFICATION: The scope provision in the current contracts for legal counsel is not broad enough to encompass the work related to the BGP Capacity calculation that is now needed.
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