Relating to certain advisory entities and work groups under the jurisdiction of the comptroller of public accounts or on which the comptroller's office is represented and to the repeal or redesignation of certain of thos, the official text

S.B. No. 2900

AN ACT

relating to certain advisory entities and work groups under the

jurisdiction of the comptroller of public accounts or on which the

comptroller's office is represented and to the repeal or

redesignation of certain of those entities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 403, Government Code, is

amended by adding Section 403.0148 to read as follows:

Sec. 403.0148. REVIEW OF CERTAIN ADVISORY ENTITIES; REPORT.

(a) In this section, "advisory entity" means an entity created by

statute or by a state agency that has as its primary function

advising a state agency, including an advisory board, an advisory

committee, a council, an oversight committee, and a task force.

(b) The comptroller shall review each advisory entity that

is part of the office of the comptroller, under the direction of the

comptroller, or administratively attached to the office of the

comptroller.

(c) A review conducted under Subsection (b) must assess

whether each advisory entity:

(1) is necessary; and

(2) promotes the efficient and effective operation of

the office of the comptroller.

(d) Not later than December 1, 2026, the comptroller shall

prepare and submit a report to the presiding officer of each house

of the legislature that identifies the advisory entities reviewed

under Subsection (b) that are not necessary or that do not promote

the efficient or effective operation of the office of the

comptroller.

(e) This section expires December 31, 2026.

SECTION 2. Section 403.1041, Government Code, is amended by

amending Subsection (a) and adding Subsections (i) and (j) to read

as follows:

(a) In this section and Section [Sections 403.1042 and]

403.1043:

(1) "Account" means the tobacco settlement permanent

trust account established under the agreement.

(2) "Advisory committee" means the tobacco settlement

permanent trust account administration [investment] advisory

committee established under Section 12.137, Health and Safety Code.

(3) "Agreement" means the Agreement Regarding

Disposition of Settlement Proceeds filed on July 24, 1998, in the

United States District Court, Eastern District of Texas, in the

case styled The State of Texas v. The American Tobacco Co., et al.,

No. 5-96CV-91. The term includes the subsequent Clarification of

Agreement Regarding Disposition of Settlement Proceeds filed on

July 24, 1998, in that litigation.

(4) "Department" means the Texas Department of Health.

(5) "Political subdivision" means:

(A) a hospital district;

(B) another local political subdivision that

owns or maintains a public hospital; or

(C) a county of this state responsible for

providing indigent health care to the general public.

(i) The comptroller shall annually present to the advisory

committee:

(1) a summary of the account's investment performance;

(2) the dollar amount the comptroller expects to

distribute to political subdivisions under Subsection (f); and

(3) any changes to the applicable investment policy

statement or rules adopted or amended by the comptroller under

Subsection (h).

(j) The advisory committee shall provide advice and

consultation to the comptroller related to the administration of

the account's investments and the amount of money to distribute to

political subdivisions, subject to the requirements and

limitations in the applicable investment policy statement, laws,

and rules.

SECTION 3. Section 403.610(b), Government Code, is amended

to read as follows:

(b) The governor shall provide written notice of the

governor's determination under Subsection (a) to the comptroller,

the applicable school district, [the oversight committee,] and the

applicant not later than the seventh day after the date the governor

makes the determination under that subsection.

SECTION 4. Section 403.615(c), Government Code, is amended

to read as follows:

(c) As part of the review, the state auditor shall make

recommendations relating to increasing the efficiency and

effectiveness of the administration of this subchapter. The state

auditor shall submit the recommendations to the governor,

comptroller, lieutenant governor, and speaker of the house of

representatives[, and oversight committee] not later than December

15 of each year.

SECTION 5. Section 404.028, Government Code, is amended to

read as follows:

Sec. 404.028. INVESTMENT ADVISORY BOARD. (a) The

comptroller shall establish an investment advisory board to advise

the comptroller and the trust company regarding investments that

the comptroller makes through the trust company under this

subchapter or other law. For purposes of this section, the deposit

of state funds in a state depository is not considered an

investment.

(b) The comptroller shall appoint members to the advisory

board who possess the expertise appropriate for advising the

comptroller with regard to one or more types of investments that the

comptroller may make. The members of the advisory board must have

knowledge or experience in finance, including management of funds

or business operations. Members of the advisory board serve in an

advisory capacity and are not fiduciaries with respect to the

investments made by the comptroller through the trust company under

this subchapter or other law.

(c) The comptroller shall determine the number of members of

the advisory board. The comptroller may adopt rules governing

members of the advisory board, including rules related to terms of

service and removal. [A member serves on the advisory board at the

will of the comptroller.]

(d) Chapter 2110 does not apply to the [size, composition,

or duration of the] advisory board.

(e) A person is not eligible for appointment to the advisory

board if the person or the person's spouse:

(1) is employed by or participates in the management

of a business entity or other organization that receives funds from

the trust company;

(2) owns or controls, directly or indirectly, more

than a 10 percent interest in a business entity or other

organization that receives funds from the trust company; or

(3) receives funds from a business entity or other

organization that receives funds from the trust company if the

amount received by the person or spouse exceeds five percent of the

person's gross income or the spouse's gross income, as applicable,

for the preceding calendar year.

(f) Before a member of the advisory board may assume the

member's duties, the member must complete a training program

providing information regarding:

(1) assets managed by the comptroller through the

trust company under this subchapter or other law; and

(2) applicable statutes, including Chapters 551 and

552.

(g) In this section, "trust company" means the Texas

Treasury Safekeeping Trust Company.

SECTION 6. Section 404.101(1), Government Code, is amended

to read as follows:

(1) "Advisory board" means the comptroller's [Texas

treasury safekeeping trust company] investment advisory board

established under Section 404.028.

SECTION 7. Sections 12.137(a) and (h), Health and Safety

Code, are amended to read as follows:

(a) The tobacco settlement permanent trust account

administration advisory committee shall advise:

(1) the department on the implementation of the

department's duties under this subchapter; and

(2) the comptroller on the administration of the

comptroller's duties under Section 403.1041, Government Code.

(h) A member of the advisory committee may not receive

compensation from the trust fund or the state for service on the

advisory committee but may [and may not] be reimbursed [from the

trust fund or the state] for actual and necessary expenses of

attending meetings of the advisory committee or performing other

official duties authorized by the comptroller [travel expenses

incurred while conducting the business of the advisory committee].

SECTION 8. The following provisions are repealed:

(1) Chapter 395, Finance Code;

(2) Section 403.028(f), Government Code;

(3) Section 403.1042, Government Code;

(4) Section 403.602(14), Government Code, as added by

Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular

Session, 2023;

(5) Section 403.618, Government Code;

(6) Section 404.108, Government Code;

(7) Section 404.109, Government Code;

(8) Section 404.110, Government Code;

(9) Section 404.111, Government Code;

(10) Section 404.112, Government Code;

(11) Section 404.113, Government Code; and

(12) Section 490I.0110, Government Code.

SECTION 9. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 2900 passed the Senate on

April 28, 2025, by the following vote: Yeas 31, Nays 0;

May 29, 2025, Senate refused to concur in House amendments and

requested appointment of Conference Committee; May 30, 2025, House

granted request of the Senate; June 1, 2025, Senate adopted

Conference Committee Report by the following vote: Yeas 31,

Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2900 passed the House, with

amendments, on May 28, 2025, by the following vote: Yeas 115,

Nays 22, one present not voting; May 30, 2025, House granted

request of the Senate for appointment of Conference Committee;

June 1, 2025, House adopted Conference Committee Report by the

following vote: Yeas 106, Nays 29, one present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor