SB2900

Regular Session

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.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Comptroller of Public Accounts

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (Immediate update to reporting distribution lists required).
Agency Rulemaking: No external rulemaking required for business compliance. However, the Comptroller must conduct an internal review of all remaining advisory entities by December 1, 2026, which may trigger future eliminations.

Immediate Action Plan

1. Update JETI Protocols: Instruct compliance teams to remove the JETI Oversight Committee from all automated reporting distribution lists effective Sept 1, 2025.
2. Audit Board Appointments: If your firm permits executives to serve on the Comptroller’s Investment Advisory Board, run an immediate conflict-of-interest check against the Texas Treasury Safekeeping Trust Company’s counterparty list.
3. Broadband Strategy Pivot: Telecommunications members must identify new channels for regulatory input, as the Broadband Development Office Board of Advisors is repealed. Direct advocacy to the Comptroller’s office is now required.
4. Prepare Value Data: If your industry utilizes a Comptroller advisory group *not* mentioned in this bill, prepare data demonstrating its ROI to the state to protect it from the 2026 review.

Operational Changes Required

Contracts

JETI Agreements: Future agreements under the Jobs, Energy, Technology, and Innovation (JETI) Act must exclude references to the "Oversight Committee." Existing contracts do not require immediate amendment, but the committee ceases to exist on the effective date.
Board Service Agreements: Engagement letters for executives serving on the Comptroller’s Investment Advisory Board must explicitly state that service is "at the will of the comptroller" and is non-compensable (expenses only).

Hiring/Training

Board Member Training: Any company executive appointed to the Investment Advisory Board must complete a mandatory training program regarding the Texas Treasury Safekeeping Trust Company’s assets and applicable open government laws *before* voting or deliberating.
Conflict Checks: Firms with staff on the Investment Advisory Board must verify that the appointee does not own >10% of, or derive >5% of gross income from, any business entity receiving funds from the Trust Company.

Reporting & Record-Keeping

JETI Reporting: Update compliance calendars and distribution lists. Stop submitting copies of applications, notices, and audit reports to the "Oversight Committee." These filings now go only to the Governor, Comptroller, Lt. Governor, and Speaker.
Tobacco Settlement: Healthcare entities lobbying for Tobacco Settlement funds must direct input on "distribution amounts" specifically to the reconstituted Advisory Committee.

Fees & Costs

No New Fees: The bill does not impose new regulatory fees.
Liability Reduction: The law statutorily defines Investment Advisory Board members as non-fiduciaries, reducing personal liability exposure for professionals serving in these roles.

Strategic Ambiguities & Considerations

"Necessity" of Advisory Groups: The Comptroller has broad discretion to recommend the elimination of other advisory entities by December 2026 based on undefined metrics of "necessity" and "efficiency." Industries relying on niche advisory groups (not named in this bill) are at risk of losing their formal input channel.
Board Expertise Standards: The Comptroller determines what constitutes "appropriate expertise" for Investment Advisory Board members without statutory criteria, leaving appointments entirely subjective.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsState Agencies, Boards & Commissions Comptroller of Public Accounts

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 2900
	By: Kolkhorst
	Finance
	4/11/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

It is the aim of S.B. 2900 to increase efficiency within the Office of the Comptroller of Public Accounts of the State of Texas (comptroller).

The comptroller will review each board and commission, including each committee, council, group and task force, that is a part of the office of the comptroller, under the direction of the comptroller, or administratively attached to the office of the comptroller.

The review will include an assessment of the continuing necessity of each, as well as whether they promote efficiency and effective operations of the comptroller's office.

The comptroller will submit the report to the legislature no later than December 1, 2026.

The comptroller may use the earnings of the account for any investment expense, including to obtain the advice of appropriate investment consultants for managing the assets in the account.

Key Provisions

�The comptroller will review the boards and commissions under the jurisdiction of the comptroller.

�The review will include an assessment of the necessity, efficiency, and effectiveness of each.

�The report will be submitted by the comptroller to the legislature no later than December 1, 2026.

�Earnings of the account may be used for an investment expense.

As proposed, S.B. 2900 amends current law relating to the review of existing boards and commissions under the jurisdiction of the comptroller for continuity and to the repeal of certain committees under the jurisdiction of the comptroller.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Provides that the purpose of this Act is to improve the efficiency and effectiveness of operations of the Office of the Comptroller of Public Accounts of the State of Texas (comptroller's office).

SECTION 2. Amends Chapter 403, Government Code, by adding Subchapter U, as follows:

SUBCHAPTER U. COMPTROLLER REVIEW OF BOARDS AND COMMISSIONS

Sec. 403.701. REVIEW AND REPORT ON BOARDS AND COMMISSIONS UNDER JURISDICTION OF THE COMPTROLLER: (a) Requires the Comptroller of Public Accounts of the State of Texas (comptroller) to review each board and commission, including each committee, council, group, and task force, that is a part of the comptroller's office, under the direction of the comptroller, or administratively attached to the comptroller's office.

(b) Requires that the review include an assessment of the continuing necessity of each board, commission, committee, council, group, and task force and whether each board, commission, committee, council, group, or task force promotes efficient and effective operations of the comptroller's office.

(b) Requires the comptroller to submit a report to the legislature to identify boards, commissions, committees, councils, groups, and task forces that no longer serve a continuing necessity or promote efficient and effective operations of the comptroller's office.

(d) Provides that this subchapter expires December 31, 2026.

SECTION 3. Amends Section 403.1041(e), Government Code, as follows:

(e) Authorizes the comptroller to use the earnings of the account for any investment expense, including to obtain the advice of appropriate investment consultants for managing the assets in the account. Deletes existing text authorizing the comptroller, with the advice of and in consultation with the tobacco settlement permanent trust account investment advisory committee, to use the earnings of the account for any investment expense, including to obtain the advice of appropriate investment consultants for managing the assets in the account.

SECTION 4. Repealer: Section 403.028(f) (relating to requiring the comptroller to appoint one or more advisory committees to assist the comptroller in identifying and evaluating greenhouse gas emission reduction strategies with members from certain agencies), Government Code.

Repealers: Sections 403.1042 (Tobacco Settlement Permanent Trust Account Investment Advisory Committee) and 403.618 (Jobs, Energy, Technology, and Innovation Act Oversight Committee; Report), Government Code.

SECTION 5. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Lois KolkhorstRepublican · Primary Author

House Sponsors

Rep. Salman BhojaniDemocrat · Primary Sponsor

Joint Sponsors

Bill Text(with markup)

S.B. No. 2900

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	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.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 14, 2025

TO:	Honorable Joan Huffman, Chair, Senate Committee on Finance

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB2900 by Kolkhorst (Relating to the review of existing boards and commissions under the jurisdiction of the comptroller for continuity and to the repeal of certain committees under the jurisdiction of the comptroller.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, KK, CSmi

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Frequently Asked Questions

Common questions about SB2900

What does Texas SB2900 do?

SB2900 streamlines interaction with the Comptroller’s office by repealing specific oversight bodies—most notably the JETI Oversight Committee and the Broadband Development Office Board of Advisors—while tightening governance for the Investment Advisory Board. The law reduces reporting redundancy for JETI Act participants but imposes stricter conflict-of-interest and training mandates for financial professionals serving on state advisory boards. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Immediate update to reporting distribution lists required).

Who authored SB2900?

SB2900 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

When was SB2900 signed into law?

SB2900 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB2900?

SB2900 is enforced by Comptroller of Public Accounts.

How urgent is compliance with SB2900?

The compliance urgency for SB2900 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB2900?

The cost impact of SB2900 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB2900 address?

SB2900 addresses topics including state agencies, boards & commissions and comptroller of public accounts.

Legislative data provided by LegiScanLast updated: November 25, 2025

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