Part 5. OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM DIVISION

Chapter 183. TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT GOVERNING BOARD INVESTMENT POLICY

10 TAC §§183.1 - 183.9

The Office of the Governor, Economic Development and Tourism Division (Office), formerly the Texas Department of Economic Development (Department), adopts the repeal of Chapter 183, §§183.1 - 183.9, setting forth rules of the Texas Department of Economic Development Governing Board Investment Policy. The repeal is adopted without changes to the proposal as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2779).

The rules are being repealed because Senate Bill 275 of the 78th Legislature abolished the Department and transferred its functions to the Office. New rules will be adopted. New rules are needed because the administration of the Texas Small Business Industrial Development Corporation (TSBIDC) and the Texas Public Facilities Capital Access Program (TEXCAP) (collectively the "Program") transferred from the Department to the Office and bond proceeds can be invested under the Program.

No comments were received regarding the proposed repeal.

The repeal is adopted under the Texas Government Code, §481.005(d), which authorizes the executive director of the Office to adopt rules for programs administered by the Office, and the Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies. Texas Government Code, Chapter 481, creating the Office, Texas Government Code, Chapter 489, creating the Economic Development Bank within the Office, and Vernon's Texas Civil Statutes, Article 5190.6 are affected by the repeal.

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 May 2, 2006.

TRD-200602435

Tracye McDaniel

Executive Director

Office of the Governor, Economic Development and Tourism Division

Effective date: May 24, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 936-0501

10 TAC §§183.1 - 183.10

The Office of the Governor, Economic Development and Tourism Division (Office), formerly the Texas Department of Economic Development (Department), adopts new Chapter 183, §§183.1 - 183.10, setting forth rules of the Office of the Governor, Economic Development and Tourism Division Investment Policy. The rules are adopted without changes to the proposed text as published in the March 31, 2006, issue of the Texas Register (31 TexReg 2780).

The new rules are being adopted because Senate Bill 275 of the 78th Legislature abolished the Department and transferred its functions to the Office of the Governor. The rules are needed because the administration of the Texas Small Business Industrial Development Corporation (TSBIDC) and the Texas Public Facilities Capital Access Program (TEXCAP) (collectively the "Program") transferred from the Department to the Office and bond proceeds can be invested under the Program.

Section 183.1 sets forth the statutory authority for the rules.

Section 183.2 sets forth the policy and priorities for investments under the Program.

Section 183.3 sets forth the scope of the rules.

Section 183.4 sets forth the prudent person standard for investments.

Section 183.5 sets forth limitations and objectives for investments and a strategy for ensuring that there will be adequate funds for a self-supporting program.

Section 183.6 delegates the authority to invest Program funds to the Economic Development Bank and to the investment officer.

Section 183.7 sets forth training requirements for board members and the investment officer.

Section 183.8 provides for investment of funds through authorized dealers.

Section 183.9 provides that the investments authorized by statute and by the trust indenture governing the bond issue are eligible investments under the Program.

Section 183.10 provides that the Economic Development Bank and the investment officer will establish investment procedures.

No comments were received regarding the proposed rules.

The rules are adopted under the Texas Government Code, §481.005(d), which authorizes the executive director of the Office to adopt rules for programs administered by the Office, and the Texas Government Code, Chapter 2001, Subchapter B, which prescribes the process for rulemaking by state agencies. Texas Government Code, Chapter 481, creating the Office, Texas Government Code, Chapter 489, creating the Economic Development Bank within the Office, and Vernon's Texas Civil Statutes, Article 5190.6 are affected by the rules.

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 May 4, 2006.

TRD-200602502

Tracye McDaniel

Executive Director

Office of the Governor, Economic Development and Tourism Division

Effective date: May 24, 2006

Proposal publication date: March 31, 2006

For further information, please call: (512) 936-0501