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<br />(g) Subsection (:f) does not apply to a state agency, local government, or investment pool for <br />which an officer of the entity is assigned by law the function of investing its funds. <br /> <br />(h) An officer or employee of a commission created under Chapter 391, Local Government <br />Code, is ineligible to be designated as an investment officer under Subsection (:f) for any <br />investing entity other than for that commission. An officer or employee of a commission <br />created under Chapter 391, Local Government Code, is ineligible to be an investment officer <br />for the commission under Subsection (:f) if the officer or employee is an investment officer <br />designated under Subsection (f) for another local government. <br /> <br />(1) An investment officer of an entity who has a personal business relationship with a <br />business organization offering to engage in an investment transaction with the entity shall file <br />a statement disclosing that personal business interest. An investment officer who is related <br />within the second degree by affinity or consanguinity, as determined under Chapter 573, to <br />an individual seeking to sell an investment to the investment officer's entity shall file a <br />statement disclosing that relationship. A statement required under this subsection must be <br />filed with the Texas Ethics Commission and the governing body of the entity. Forpurposes <br />of this subsection, an investment officer has a personal business relationship with a business <br />organization if: <br />(1) the investment officer owns 10 percent or more of the voting stock or <br />shares of the business organization or owns $5,000 or more of the fair market <br />value of the business organization; <br />(2) funds received by the investment officer from the business organization <br />exceed 10 percent of the investment officer's gross income for the previous <br />year; or <br />(3) the investment officer has acquired from the business organization during <br />the previous year investments with a book value of $2,500 or more for the <br />personal account of the investment officer. <br /> <br />(J) The governing body of an investing entity may specify in its investment policy that any <br />investment authorized by this chapter is not suitable. <br /> <br />(k) A written copy of the investment policy shall be presented to any person offering to <br />engage in an investment transaction with an investing entity or to an investment management <br />firm under contract with an investing entity to invest or manage the entity's investment <br />portfolio. For purposes ofthis subsection, a business organization includes investment pools <br />and an investment management :firm under contract with an investing entity to invest or <br />manage the entity's investment portfolio. Nothing in this subsection relieves the investing <br />entity of the responsibility for monitoring the investments made by the investing entity to <br />determine that they are in compliance with the investment policy. The qualified <br />representative of the business organization offering to engage in an investment transaction <br />with an investing entity shall execute a written instrument in a form acceptable to the <br />investing entity and the business organization substantially to the effect that the business <br />organization has: <br /> <br />City of San. Marcos Investment Policy <br /> <br />Page 22 <br />