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.