SBW H.J.R. 64 75(R)BILL ANALYSIS PENSIONS & INVESTMENTS H.J.R. 64 By: Giddings 4-1-97 Committee Report (Unamended) BACKGROUND The Texas Growth Fund is a stock-oriented state investment fund aimed at assisting firms that promote economic growth in Texas. The trust fund invests funds of the state's Permanent University Fund, Permanent School Fund, Teacher Retirement System, Employee Retirement System and other state pension systems. The fund was created in 1988 in Texas Constitution Article XVI, Section 70. The $52 million growth fund is governed by a nine-member board. Trustees are required to use the prudent-person standard of care in selecting investments and to invest at least half the fund in stocks and bonds involving the construction, expansion or modernization of business facilities in Texas. The fund may only invest in businesses that submit an affidavit disclosing their direct financial investment in or with South Africa or Namibia, a requirement imposed by the constitutional provision creating the fund. PURPOSE As proposed, H.J.R. 64 would amend the Texas Constitution by repealing Article XVI, Section 70(r), which provides that the board of trustees of the Texas Growth Fund may not invest money from the fund in a business unless the business has submitted to the board of trustees an affidavit disclosing whether the business has any direct financial investment in or with South Africa or Namibia. 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: Repeals Article XVI, Section 70(r) of the Texas Constitution. SECTION 2: States that this constitutional amendment will be submitted to the voters at the November 4, 1997 election. States that the ballot shall permit for voting for or against the constitutional amendment allowing the Texas growth fund to invest in a business without the business being required to disclose it investments in or with