BSM C.S.H.B. 675 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 675 By: Walker Natural Resources 3/8/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE The Public Funds Investment Act requires the treasurer, chief financial officer, and the investment officer 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. C.S.H.B. 675 reduces the amount of instruction to be taken by the investment officer of a district, and requires only one officer of a district to attend investment training. RULEMAKING AUTHORITY 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. ANALYSIS C.S.H.B. 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 officer (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 four hours of initial training and four hours each two-year period after the first year. The bill also requires that each January, each entity that has provided investment training is required to report to the comptroller a list of the districts for which the entity provided the required training during the previous calendar year. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 675 modifies the original by changing the required initial amount of training for an investment officer from eight hours to four hours. The substitute also removes the provision that exempts an investment officer from having to complete the training if at least 95 percent of the district's investments are low risk.