Office of House Bill AnalysisH.B. 675
By: Walker
Natural Resources


The Public Funds Investment Act requires the treasurer, chief financial
officer, and the investment office of a local government entity that
invests funds to attend at least 10 hours of instruction on investment
every two years.  Current law creates the potential for multiple members of
the district to attend training. Current law also requires instruction for
entities even if the majority of investment is low risk.  House Bill 675
reduces the amount of instruction to be taken by the investment officer of
a district, requires only one officer of a district to attend investment
training, and exempts districts from mandatory training if at least 95
percent of investments are low risk. 


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


House Bill 675 amends the Water and Government codes to authorize the board
of directors of a district to contract with a person to act as investment
officers (officer) of the district.  The bill requires only the officer to
attend investment training.  The bill sets forth provisions regarding the
content of the investment training and requires the officer to attend eight
hours of initial training and four hours each two-year period after the
first year.  The bill provides an exemption from continuing education for
districts that invest at least 95 percent of funds in low risk investments.
The bill also requires that each January whichever group has provided the
training for the investment officer is required to report to the
comptroller a list of the districts for which the person provided required
training during the previous calendar year. 


On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.