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