November 2022 Committee on School Finance/Permanent School Fund Item 6
Approval of the Date to Transfer Management of the Permanent School Fund to the Texas Permanent School Fund Corporation as Contemplated in Senate Bill 1232
November 18, 2022
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT
SUMMARY: This item provides an opportunity for the committee and board to approve the date to transfer management of the Permanent School Fund (PSF) to the Texas PSF Corporation as contemplated in Senate Bill (SB) 1232, 87th Legislature, Regular Session, 2021.
STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5, and 19 Texas Administrative Code (TAC) Chapter 33. SB 1232, 87th Legislature, Regular Session, 2021, including Texas Education Code, Chapter 43, Subchapter B.
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, and the available school fund, and authorize the State Board of Education (SBOE) to manage and invest the permanent school fund in accordance with the prudent person standard.
SB 1232 authorized the creation of the Texas PSF Corporation (Corporation) and authorized delegation of the ongoing management and investment of the permanent school fund to the Corporation.
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.
BACKGROUND INFORMATION AND JUSTIFICATION: SB 1232 was passed during the 87th Legislature, Regular Session, 2021. The bill authorized the SBOE to create the Texas PSF Corporation and delegate its authority to manage and invest the PSF to the Corporation.
Staff Member Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund