BILL ANALYSIS


                                                          S.B. 59
                                                        By: Ellis
                                       Int. Rel., Trade and Tech.
                                                         01-25-95
                                     Committee Report (Unamended)

BACKGROUND

In 1989, the 71st Legislature prevented state funds from being
invested with businesses that have financials 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. 
Since the Texas Legislature meets biennually, Texas is behind every
other state in acting to remove investment restrictions on South
Africa.

PURPOSE

As proposed, 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.