SB2900 - Relating to certain advisory entities and work groups under the jurisdiction of the comptroller of public accounts or on which the comptroller's office is represented and to the repeal or redesignation of certain of those entities.

      S.B. No. 2900         AN ACT   relating to certain advisory entities and work groups under the   jurisdiction of the comptroller of public accounts or on which the   comptroller's office is represented and to the repeal or   redesignation of certain of those entities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 403, Government Code, is   amended by adding Section 403.0148 to read as follows:           Sec.   403.0148.     REVIEW OF CERTAIN ADVISORY ENTITIES; REPORT.     (a)   In this section, "advisory entity" means an entity created by   statute or by a state agency that has as its primary function   advising a state agency, including an advisory board, an advisory   committee, a council, an oversight committee, and a task force.           (b)     The comptroller shall review each advisory entity that   is part of the office of the comptroller, under the direction of the   comptroller, or administratively attached to the office of the   comptroller.           (c)     A review conducted under Subsection (b) must assess   whether each advisory entity:                 (1)  is necessary; and                 (2)     promotes the efficient and effective operation of   the office of the comptroller.           (d)     Not later than December 1, 2026, the comptroller shall   prepare and submit a report to the presiding officer of each house   of the legislature that identifies the advisory entities reviewed   under Subsection (b) that are not necessary or that do not promote   the efficient or effective operation of the office of the   comptroller.             (e)  This section expires December 31, 2026.          SECTION 2.  Section 403.1041, Government Code, is amended by   amending Subsection (a) and adding Subsections (i) and (j) to read   as follows:          (a)  In this section and Section  [ Sections 403.1042 and ]   403.1043:                (1)  "Account" means the tobacco settlement permanent   trust account established under the agreement.                (2)  "Advisory committee" means the tobacco settlement   permanent trust account administration [ investment ] advisory   committee established under Section 12.137, Health and Safety Code .                (3)  "Agreement" means the Agreement Regarding   Disposition of Settlement Proceeds filed on July 24, 1998, in the   United States District Court, Eastern District of Texas, in the   case styled The State of Texas v. The American Tobacco Co., et al.,   No. 5-96CV-91.  The term includes the subsequent Clarification of   Agreement Regarding Disposition of Settlement Proceeds filed on   July 24, 1998, in that litigation.                (4)  "Department" means the Texas Department of Health.                (5)  "Political subdivision" means:                      (A)  a hospital district;                      (B)  another local political subdivision that   owns or maintains a public hospital; or                      (C)  a county of this state responsible for   providing indigent health care to the general public.           (i)     The comptroller shall annually present to the advisory   committee:                 (1)  a summary of the account's investment performance;                 (2)     the dollar amount the comptroller expects to   distribute to political subdivisions under Subsection (f); and                 (3)     any changes to the applicable investment policy   statement or rules adopted or amended by the comptroller under   Subsection (h).           (j)     The advisory committee shall provide advice and   consultation to the comptroller related to the administration of   the account's investments and the amount of money to distribute to   political subdivisions, subject to the requirements and   limitations in the applicable investment policy statement, laws,   and rules.          SECTION 3.  Section 403.610(b), Government Code, is amended   to read as follows:          (b)  The governor shall provide written notice of the   governor's determination under Subsection (a) to the comptroller,   the applicable school district, [ the oversight committee, ] and the   applicant not later than the seventh day after the date the governor   makes the determination under that subsection.          SECTION 4.  Section 403.615(c), Government Code, is amended   to read as follows:          (c)  As part of the review, the state auditor shall make   recommendations relating to increasing the efficiency and   effectiveness of the administration of this subchapter. The state   auditor shall submit the recommendations to the governor,   comptroller, lieutenant governor, and speaker of the house of   representatives[ , and oversight committee ] not later than December   15 of each year.          SECTION 5.  Section 404.028, Government Code, is amended to   read as follows:          Sec. 404.028.  INVESTMENT ADVISORY BOARD.  (a)  The   comptroller shall establish an investment advisory board to advise   the comptroller and the trust company regarding investments that   the comptroller makes through the trust company under this   subchapter or other law. For purposes of this section, the deposit   of state funds in a state depository is not considered an   investment.          (b)  The comptroller shall appoint members to the advisory   board who possess the expertise appropriate for advising the   comptroller with regard to one or more types of investments that the   comptroller may make. The members of the advisory board must have   knowledge or experience in finance, including management of funds   or business operations. Members of the advisory board serve in an   advisory capacity and are not fiduciaries with respect to the   investments made by the comptroller through the trust company under   this subchapter or other law.          (c)  The comptroller shall determine the number of members of   the advisory board. The comptroller may adopt rules governing   members of the advisory board, including rules related to terms of   service and removal. [ A member serves on the advisory board at the   will of the comptroller. ]          (d)  Chapter 2110 does not apply to the [ size, composition,   or duration of the ] advisory board.           (e)     A person is not eligible for appointment to the advisory   board if the person or the person's spouse:                 (1)     is employed by or participates in the management   of a business entity or other organization that receives funds from   the trust company;                 (2)     owns or controls, directly or indirectly, more   than a 10 percent interest in a business entity or other   organization that receives funds from the trust company; or                 (3)     receives funds from a business entity or other   organization that receives funds from the trust company if the   amount received by the person or spouse exceeds five percent of the   person's gross income or the spouse's gross income, as applicable,   for the preceding calendar year.           (f)     Before a member of the advisory board may assume the   member's duties, the member must complete a training program   providing information regarding:                 (1)     assets managed by the comptroller through the   trust company under this subchapter or other law; and                 (2)     applicable statutes, including Chapters 551 and   552.           (g)     In this section, "trust company" means the Texas   Treasury Safekeeping Trust Company.          SECTION 6.  Section 404.101(1), Government Code, is amended   to read as follows:                (1)  "Advisory board" means the comptroller's [ Texas   treasury safekeeping trust company ] investment advisory board   established under Section 404.028 .          SECTION 7.  Sections 12.137(a) and (h), Health and Safety   Code, are amended to read as follows:          (a)  The tobacco settlement permanent trust account   administration advisory committee shall advise :                 (1)   the department on the implementation of the   department's duties under this subchapter ; and                 (2)     the comptroller on the administration of the   comptroller's duties under Section 403.1041, Government Code .          (h)  A member of the advisory committee may not receive   compensation from the trust fund or the state for service on the   advisory committee but may [ and may not ] be reimbursed [ from the   trust fund or the state ] for actual and necessary expenses of   attending meetings of the advisory committee or performing other   official duties authorized by the comptroller [ travel expenses   incurred while conducting the business of the advisory committee ].          SECTION 8.  The following provisions are repealed:                (1)  Chapter 395, Finance Code;                (2)  Section 403.028(f), Government Code;                (3)  Section 403.1042, Government Code;                (4)  Section 403.602(14), Government Code, as added by   Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular   Session, 2023;                (5)  Section 403.618, Government Code;                (6)  Section 404.108, Government Code;                (7)  Section 404.109, Government Code;                (8)  Section 404.110, Government Code;                (9)  Section 404.111, Government Code;                (10)  Section 404.112, Government Code;                (11)  Section 404.113, Government Code; and                (12)  Section 490I.0110, Government Code.          SECTION 9.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B.&# [Text truncated for display. 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