BILL ANALYSIS



S.B. 59
By: Ellis, et al. (Giddings)
April 26, 1995
Committee Report (Unamended)


BACKGROUND

In 1989, the 71st Legislature prevented state funds from being
invested with businesses that have financial ties to South Africa. 
The various statutory restrictions were enacted to protest South
Africa's apartheid government, which was recently replaced by the
democratically elected  government of President Nelson Mandela. 

PURPOSE

S.B. 59 removes all restrictions on investment of certain state
funds in companies that do business in South Africa.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 404.024, Government Code, as follows:

     Sec. 404.024.  AUTHORIZED INVESTMENTS.  Deletes restrictions
     on investing state funds in and purchasing obligations of a
     private corporation or other enterprise doing business in
     South Africa.  Makes conforming changes.
     
     SECTION 2.     Amends Section 161.173, Natural Resources Code, as
follows:

     Sec. 161.173.  INVESTMENT OF MONEY IN FUND.  Deletes
     restrictions on investing in and purchasing obligations of a
     private corporation or other enterprise doing business in
     South Africa with money from the federal land fund.  Makes
     conforming changes.
SECTION 3. Amends Section 59.016, Agriculture Code, as follows:

     Sec. 59.016.  INVESTMENTS.  Deletes restrictions on investing
     in and purchasing obligations of a private corporation or
     other enterprise doing business in South Africa with money
     from the farm and ranch finance program fund.  Makes
     conforming changes.
     
     SECTION 4.     Amends Section 27, Article 6243e, V.T.C.S., as follows:

     Sec. 27.  INVESTMENT OF ASSETS.  Deletes restrictions on
     investing in a financial institution that directly or
     indirectly has a loan outstanding to the government of South
     Africa with money from the trust fund of the fire fighters'
     retirement system.
SECTION 5. Emergency clause.
           Effective date: upon passage.   

SUMMARY OF COMMITTEE ACTION

Pursuant to public notice posted on March 8, 1995, the Committee on
State Affairs convened in a public hearing on March 13, 1995 to
consider SB 59.  The Chair laid out SB 59 and recognized Rep.
Giddings to explain the bill.  The Chair recognized Rep. Giddings
to close.  The Chair left SB 59 pending.  In a public hearing on
April 5, 1995, the Chair laid out SB 59.  SB 59 was reported
favorably without amendment with the recommendation that it do pass
and be printed and be sent to the Committee on Local and Consent
Calendars which prevailed by a record vote of 15 ayes, 0 nays, 0
pnv, 0 absent.