June-July 2020 Committee on School Finance/Permanent School Fund Item 8

Approval of the Selection of a Legal Counsel for the Bond Guarantee Program as outlined in RFQ 701-20-006 for the Texas Permanent School Fund and Authorization for Contract Execution by the Commissioner of Education

July 2, 2020

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT

SUMMARY: This item provides the opportunity for the committee and board to approve the selection of a legal counsel for the Bond Guarantee Program (BGP) of the Texas Permanent School Fund (PSF) as outlined in Request for Qualifications (RFQ) 701-20-006 and authorization for contract execution by the Commissioner of Education.

STATUTORY AUTHORITY:  Texas Constitution, Article VII, §2 and §5; 19 Texas Administrative Code (TAC) Chapter 33.

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, 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.

Administrative rules found in 19 TAC Chapter 33 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.

PREVIOUS BOARD ACTION: At the November 2019 meeting, the board approved the issuance of a request for qualifications for bond guarantee program counsel.

BACKGROUND INFORMATION AND JUSTIFICATION: The scope provision of the current contracts for legal counsel is not broad enough to encompass the work related to the BGP Capacity calculation that is now needed.

Staff Members Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund