TUESDAY
January 12, 2010
8:30 a.m.
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND - Room 1-100 (MEETING MOVED TO ROOM 1-104)
Members: David Bradley, Chair; Rick Agosto, Vice Chair; Cynthia Dunbar; Gail Lowe; and Rene Nuñez. A quorum of the State Board of Education may attend the committee meeting and discuss items on the committee agenda. A quorum of the Committee of Investment Advisors to the Permanent School Fund may attend the committee meeting and discuss items on the committee agenda.
Public Testimony - Individual testimony will be taken at the time the related item comes up for committee discussion or action. The procedures for registering and taking public testimony at State Board of Education committee meetings and general board meetings are provided at http://www.tea.state.tx.us/index4.aspx?id=3958.
1. Proposed Amendment to 19 TAC Chapter 129, Student Attendance, Subchapter B, Student Attendance Accounting, §129.21, Requirements for Student Attendance Accounting for State Funding Purposes
(Second Reading and Final Adoption)This item presents proposed amendment to 19 TAC Chapter 129, Student Attendance, Subchapter B, Student Attendance Accounting, §129.21, Requirements for Student Attendance Accounting for State Funding Purposes, for second reading and final adoption. The proposed amendment would update the current rule to reflect statutory changes resulting from the 81st Texas Legislature, 2009, and add clarifying language. No additional changes are recommended since approved for first reading. Statutory authority for this action is Texas Education Code (TEC), §25.087 and §42.004.
COMMITTEE - ACTION
SBOE - ACTION
2. Adoption of Review of 19 TAC Chapter 105, Foundation School Program, Subchapter A, Definitions, and Subchapter B, Use of State Funds
(Adoption of Review)
Texas Government Code, §2001.039, establishes a four-year rule review cycle for all state agency rules, including State Board of Education (SBOE) rules. This item presents the review of 19 TAC Chapter 105, Foundation School Program, Subchapter A, Definitions, and Subchapter B, Use of State Funds. The rules being reviewed provide for the use of Foundation School Program (FSP) funds. The statutory authority for the rule review is the Texas Government Code, §2001.039. The statutory authority for 19 TAC Chapter 105, Subchapter A, is the Texas Education Code (TEC), §42.004. The statutory authority for 19 TAC Chapter 105, Subchapter B, §105.11, is the TEC, §§42.151(h), 42.152(c), 42.153(b), 42.154(c), and 42.156(b). The statutory authority for 19 TAC Chapter 105, Subchapter B, §105.12, is the TEC, §42.004.
COMMITTEE - ACTION
SBOE - ACTION
3. Discussion of Proposed Amendment to 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, §33.65, Guarantee Program for School District Bonds
This item presents proposed amendment to 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, §33.65, Guarantee Program for School District Bonds, for discussion. The proposed amendment would modify the policies for administration of the school district bond guarantee program to comply with requirements related to the recent decision of the Internal Revenue Service to reopen the program and to align with the policies of the intercept program to provide credit enhancement for school district bonds that was established by the Texas Education Code (TEC), Chapter 45, Subchapter I, as added by Section 75 of House Bill 3646, 81st Texas Legislature, 2009. The proposed amendment would also modify the existing limitations on access to the guarantee and add explanations of the actions that would follow a default by a school district. Statutory authority is TEC, §7.102(c)(33) and §45.063.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
4. Presentation by BlackRock Investment Management, LLC on Investment Management Services Provided to the Permanent School Fund
This item provides an opportunity for the committee to receive a presentation from BlackRock Investment Management, LLC on investment management services provided by the firm to the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
5. Review of Permanent School Fund Securities Transactions and the Investment Portfolio
Investment staff will report on the transactions executed during the months of October and November 2009 in the investment portfolio of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
6. Ratification of the Purchases and Sales of the Investment Portfolio of the Permanent School Fund for the Months of October and November 2009
This item provides an opportunity for the committee and board to consider approval of the purchases and sales of securities executed in the portfolio of the Permanent School Fund for the months of October and November 2009. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
7. Proposed Amendments to Section I of the Investment Procedures Manual
This item provides an opportunity for the committee and board to review and adopt amendments to Section I of the Investment Procedures Manual. These amendments represent technical adjustment to maintain compliance with SEC Rule 15(2-12). Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
8. Annual Reporting Requirement of the Internally Managed Permanent School Fund Investment Portfolio
This item provides an opportunity for the Executive Administrator and Chief Investment Officer of the Permanent School Fund to report on various items required by 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
9. Report of the Permanent School Fund Executive Administrator and Chief Investment Officer
The Permanent School Fund executive administrator will report to the committee on matters relating to the management of the Permanent School Fund. The report will present information on historical and current status of Fund holdings, current and proposed investment policies and procedures, historical and current Fund performance and compliance. The administrator will update the board on the PSF distribution, the bond guarantee program, the status of requests for proposal or for qualifications and current contracts for services and other administrative activities undertaken on behalf of the board. The administrator will provide an analysis of current and future investment market conditions, focusing upon the impact on the holdings of the Permanent School Fund. The committee will direct investment staff regarding future agenda items.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
10. Presentations by Finalist Candidates for Private Equity Discretionary Separate Account Manager for the Permanent School Fund
The committee will receive presentations by finalist candidates for private equity discretionary separate account manager for the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
11. Approval of the Selection of a Firm(s) to Provide Private Equity Discretionary Separate Account Manager for the Permanent School Fund and Authorization to Negotiate Terms and for Contract Execution by the Commissioner of Education
This item provides an opportunity for the committee and board to review and approve the selection of a firm(s) to provide private equity discretionary separate account manager for the Permanent School Fund and authorization to negotiate terms and for contract execution by the commissioner of education. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - ACTION
* If the Committee on School Finance/Permanent School Fund does not complete its agenda Tuesday, it will resume its meeting in Room 1-100 upon adjournment of the Committee of the Full Board on Wednesday and/or Thursday.
NOTE: The chair may permit the board to take up and discuss any of the discussion items on a committee agenda, including hearing any invited presentations to a committee, based upon a recommendation from the committee or inability of the committee to complete its agenda on a preceding day.
If, during the course of the State Board of Education (SBOE) meeting or any committee meeting of the SBOE, discussion of any item on the agenda should be held in a closed meeting, the SBOE or committee of the SBOE may conduct a closed meeting in accordance with Texas Open Meetings Act, Chapter 551, Subchapters D and E. Before any closed meeting is convened, the presiding officer will publicly identify the section or sections of the Act authorizing the closed meeting. All final votes, actions, or decisions will be taken in open meeting.