November 20, 2020 Consent Agenda
CONSENT AGENDA
STATE BOARD OF EDUCATION
November 20, 2020
1. Decision on the Percentage Distribution of the Permanent School Fund
This item provides an opportunity for the board to evaluate and approve, in a final vote, the Permanent School Fund (PSF) percentage distribution rates for fiscal years 2022 and 2023. The board will consider various factors associated with the distribution rate such as expected returns, inflation, student growth, and current economic conditions. Additionally, this item provides the opportunity for the board to discuss anticipated instructional material needs for the 2022-2023 biennium. Statutory authority for this action is the Texas Constitution, Article VII, §5 and §2; Texas Education Code (TEC), §43.0051; and 19 Texas Administrative Code (TAC), Chapter 33.
2. Approval of Update to Instructional Materials for Learning A–Z
Learning A–Z is requesting approval to update content in its adopted products Raz Plus ELL Texas Edition, grades 2–4. The updated content has been reviewed by curriculum subject-area specialists and determined to address the pertinent student expectations in a manner equal to the content initially reviewed and approved by the state review panel. Statutory authority for this action is the Texas Education Code (TEC), §31.003 and §31.022.
3. Approval of Costs to Administer the 2020–2021 State-Developed Assessments to Private School Students
Texas Education Code, §39.033, allows a private school to voluntarily assess its students with the State of Texas Assessments of Academic Readiness (STAAR®) and the Texas English Language Proficiency Assessment System (TELPAS) assessments. The State Board of Education (SBOE) must approve the per-student cost to private schools, which may not exceed the cost of administering the same assessment to a student enrolled in a public-school district. This item requests approval of these costs for the 2020–2021 school year. Statutory authority for this action is the Texas Education Code (TEC), §39.033.
This item provides an opportunity for the committee and board to consider approval of the purchases and sales of investments executed in the portfolio of the Permanent School Fund for the months of July, August, and September 2020. Statutory authority for this action is the Texas Constitution, Article VII, §2 and §5; and 19 Texas Administrative Code (TAC), Chapter 33.
5. Approval of an Extension of the Standard Contract with NEPC, LLC and Authorization for Contract Execution by the Commissioner of Education
This item provides an opportunity for the committee and board to extend the standard contract with NEPC, LLC, and authorize contract execution by the commissioner of education. Statutory authority for this action is the Texas Constitution, Article VII, §2 and §5; Natural Resources Code (NRC), §51.414; 19 Texas Administrative Code (TAC), Chapter 33.
This item provides an opportunity for the committee and board to extend the standard contract with Blackrock Investment Management, LLC, and authorize contract execution by the commissioner of education. Statutory authority for this action is the Texas Constitution, Article VII, §2 and §5; Natural Resources Code (NRC), §51.414; 19 Texas Administrative Code (TAC), Chapter 33.
7. Proposed Amendments to the Investment Procedures Manual
This item provides an opportunity for the committee and board to review and adopt proposed amendments to Section D, Strategic Asset Allocation Plan, Section E, Asset Allocation Rebalancing Procedure, Section F, Standards of Performance of the Investment Procedures Manual. Statutory authority for this action is the Texas Constitution, Article VII, §5 and §2; and 19 Texas Administrative Code (TAC), Chapter 33.
8. Proposed Amendments to 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, Subchapter A, State Board of Education Rules
(First Reading and Filing Authorization)
This item presents for first reading and filing authorization proposed amendments to 19 Texas Administrative Code (TAC) Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, Subchapter A, State Board of Education Rules. The proposed amendments would amend the asset allocation of the Permanent School Fund (PSF), update transactions and restrictions that apply to the PSF, and update cross references and a section title. Statutory authority for this action is the Texas Constitution, Article VII, §5(a) and (f); Texas Education Code (TEC), §43.001; §43.0052, as added by House Bill (HB) 4388, 86th Texas Legislature, 2019; and Texas Natural Resources Code (NRC), §32.012, as amended by Senate Bill (SB) 608, 86th Texas Legislature, 2019; NRC, §32.0161, as added by SB 608, 86th Texas Legislature, 2019; and NRC, §32.068 and §51.414, as added by HB 4388, 86th Texas Legislature, 2019.
This item provides the opportunity for the committee and board to approve the issuance of a request for qualifications for fiduciary, investment contracting, real estate, tax and disclosure counsel for the Permanent School Fund. Statutory authority for this action is the Texas Constitution, Article VII, §5 and §2; and 19 Texas Administrative Code (TAC), Chapter 33.
10. Authorization to Issue a Request for Proposals for High Yield Bonds Discretionary Investment Managers for the Permanent School Fund
This item provides the opportunity for the committee and board to approve the issuance of a Request for Proposals for High Yield Bonds Discretionary Investment Managers for the Permanent School Fund. Statutory authority for this action is the Texas Constitution, Article VII, §5 and §2; and 19 Texas Administrative Code (TAC), Chapter 33.
11. Report on the Permanent School Fund Liquid Account
This item provides an opportunity for the committee and board to receive a status update on the liquid account and to take action to ratify transactions. Statutory authority for this action is the Texas Constitution, Article VII, §5 and §2; Natural Resources Code (NRC), §51.414; and 19 Texas Administrative Code (TAC), Chapter 33.