SBW H.B. 138 75(R)BILL ANALYSIS PENSIONS & INVESTMENTS H.B. 138 By: Woolley 3-11-97 Committee Report (Unamended) BACKGROUND The Texas Growth Fund (TGF) was created by an amendment to the Texas Constitution and adopted by a public referendum on November 8, 1988. The Fund serves as an investment vehicle for public trust and retirement funds in the state to make private equity investments in companies which have substantial operations in Texas. Its dual purpose is to achieve superior investment returns for its investors and to create employment opportunity and business growth within the state. The Fund has been successful in accomplishing both of these goals. The 1988 Constitutional amendment provides that no further investments from the original TGF authorization may be made after September 1, 1998. But, the amendment also provides that the Texas Legislature can authorize a Texas Growth Fund II, which will extend the TGF's Operations until September 1, 2008. PURPOSE This bill authorizes the Texas Growth Fund II, as provided by Section 70(m), Article XVI, Texas Constitution. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Authorizes the creation of the Texas Growth Fund II as provided by Section 70(m), Article XVI, Texas Constitution. SECTION 2. Emergency Clause.