Part 2.
TEXAS EDUCATION AGENCY
Chapter 33.
STATEMENT OF INVESTMENT OBJECTIVES, POLICIES, AND GUIDELINES OF THE PERMANENT SCHOOL FUND
19 TAC §§33.1, 33.15, 33.20, 33.35, 33.40, 33.45
The State Board of Education (SBOE) adopts amendments to §§33.1,
33.15, 33.20, 33.35, 33.40, and 33.45, concerning the statement of investment
objectives, policies, and guidelines of the Texas Permanent School Fund (PSF),
without changes to the proposed text as published in the December 5, 2003,
issue of the
Texas Register
(28 TexReg 10862)
and will not be republished. The sections establish definitions, requirements,
and procedures for the investment of the Texas PSF. The adopted amendments
implement changes reflecting the impact of the September 13, 2003, voter approval
of Proposition 9, the constitutional amendment on the distribution of the
PSF, and additional changes to expand and clarify current procedures and policies,
as follows.
Section 33.1, Constitutional Authority and Constitutional Restrictions,
reflects the constitutional change relating to the amount distributed from
the PSF to the Available School Fund.
Section 33.15, Objectives, reflects updated language relating to investment
objectives, goals and objectives of the PSF, investment rate of return and
risk objectives, and asset allocation policy.
Section 33.20, Responsible Parties and Their Duties, revises the definition
and responsibilities of investment counsel employed to assist with aspects
of the PSF.
Section 33.35, Guidelines for the Custodian and the Securities Lending
Agent, reflects additional language relating to cash collateral reinvestment
guidelines.
Section 33.40, Trading and Brokerage Policy, elaborates upon the principles
guiding PSF transactions.
Section 33.45, Proxy Voting Policy, clarifies the use of proxy voting companies.
In accordance with Texas Education Code, §7.102(f), the SBOE approved
this rule action for final adoption by a vote of two-thirds of its members
to specify an effective date earlier than September 1, 2004, as necessary
to comply with the changes implemented by the passage of Proposition 9 and
to include guidelines for the investment of cash collateral by the securities
lending agency for the PSF.
No comments were received regarding adoption of the amendments.
The amendments are adopted under the Texas Education Code, §7.102(c)(31),
which authorizes the State Board of Education to invest the PSF within the
limits of the authority granted by the Texas Constitution, Article VII, §5,
and the Texas Education Code, Chapter 43.
The amendments implement the Texas Education Code, §7.102(c)(31),
and Chapter 43.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on March 11, 2004.
TRD-200401833
Cristina De La Fuente-Valadez
Director, Policy Coordination
Texas Education Agency
Effective date: March 31, 2004
Proposal publication date: December 5, 2003
For further information, please call: (512) 475-1497
Subchapter A. GENERAL PROVISIONS FOR HEARINGS BEFORE THE STATE BOARD OF EDUCATION
The State Board of Education (SBOE) adopts the repeal of §§157.1-157.20
and new §§157.1-157.4, concerning hearings and appeals, without
changes to the proposed text as published in the December 5, 2003, issue of
the
Texas Register
(28 TexReg 10866) and will
not be republished. Repealed §§157.1-157.20 established the procedures
for appeals heard by the SBOE regarding charter school contracts and administrative
penalties for violations of textbook requirements. Adopted new §§157.1-157.4
clarify the scope and purpose of hearings before the SBOE and address the
transfer of proceedings to the State Office of Administrative Hearings. The
adopted repeals and new sections bring the rules into closer alignment with
current statute.
Texas Education Code (TEC), §§12.028, 12.116, and 31.151, and
Texas Government Code, §2001.004, authorized the adoption of procedural
rules in 19 TAC Chapter 157, Subchapter A, to govern SBOE hearings involving
charter contracts with charter schools and textbook publisher due process
hearings pertaining to administrative penalties. The hearings authority under
TEC, Chapter 12, relating to charter schools was transferred to the commissioner
of education. As a result of the transfer of charter school hearings authority
and a new contract with the State Office of Administrative Hearings when the
agency is a party, the revisions to Subchapter A streamline the hearings process
before the SBOE and also provide that the State Office of Administrative Hearings
will conduct hearings on behalf of the SBOE. Rules in Subchapter A were repealed
and pertinent rules from that subchapter were revised, renumbered, and adopted
new.
In accordance with Texas Education Code, §7.102(f), the SBOE approved
this rule action for final adoption by a vote of two-thirds of its members
to specify an effective date earlier than September 1, 2004, as necessary
to implement the latest policy in a timely manner.
No comments were received regarding adoption of the repeals and new sections.
Chapter 157.
HEARINGS AND APPEALS