January 26, 2022 Committee of the Full Board Item 1

Approval of Bylaws of The Texas Permanent School Fund Corporation

January 28, 2022

COMMITTEE OF FULL BOARD: ACTION
STATE BOARD OF EDUCATION: CONSENT

SUMMARY: This item provides an opportunity for the State Board of Education (SBOE) to consider the approval of the Bylaws of The Texas Permanent School Fund Corporation.

STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5, and 19 Texas Administrative Code (TAC) Chapter 33.

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 SBOE to manage and invest the permanent school fund in accordance with the prudent person standard.

19 TAC Chapter 33 codifies administrative rules that 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.

FUTURE ACTION EXPECTED: The SBOE is expected to implement SB 1232, 87th Texas Legislature, Regular Session, 2021.

BACKGROUND INFORMATION AND JUSTIFICATION: Senate Bill (SB) 1232 was passed during the 87th Legislature, 2021. The bill authorizes the SBOE to create the Texas Permanent School Fund Corporation (Corporation) and delegate its authority to manage and invest the Permanent School Fund (PSF) to the Corporation.

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