By:  Armbrister                                       S.R. No. 1016
                                  SENATE RESOLUTION
 1-1           BE IT RESOLVED by the Senate of the State of Texas, 76th
 1-2     Legislature, Regular Session, 1999, That Senate Rule 12.03 be
 1-3     suspended in part as provided by Senate Rule 12.08 to enable the
 1-4     conference committee appointed to resolve the differences on Senate
 1-5     Bill No. 1129 to consider and take action on the following specific
 1-6     matter:
 1-7           Senate Rule 12.03(4) is suspended to permit the committee to
 1-8     add a new section to the bill to read as follows:
 1-9           SECTION ____. Subsections (a)  and (c), Section 845.301,
1-10     Government Code, are amended to read as follows:
1-11           (a)  The assets of the retirement system shall be invested
1-12     and reinvested without distinction as to their source in accordance
1-13     with Section 67, Article XVI, Texas Constitution.  For purposes  of
1-14     the investment authority of the board of trustees under Section 67,
1-15     Article XVI, Texas Constitution, "securities" means any investment
1-16     instrument within the meaning of the term as defined by Section 4,
1-17     The Securities Act (Article 581-4, Vernon's Texas Civil Statutes),
1-18     15 U.S.C. Section 77b(a)(1), or 15 U.S.C. Section 78c(a)(10).
1-19     Investment decisions are subject to the standard provided in the
1-20     Texas Trust Code by Section 113.056(a), Property Code.
1-21           (c)  The board of trustees, acting on the recommendations of
1-22     the investment officer, may contract with private professional
1-23     investment managers to assist in investing the assets of the
1-24     retirement system.  The board of trustees also has the authority
 2-1     set forth in Section 802.204 to appoint investment managers for the
 2-2     retirement system, with the effect described by Section 802.203(c).
 2-3           Explanation:  This addition is necessary to clarify current
 2-4     law.
 2-5                                  ______________________________________
 2-6                                          President of the Senate
 2-7                                       I hereby certify that the above
 2-8                                  Resolution was adopted by the Senate
 2-9                                  on May 19, 1999.
2-10                                  ______________________________________
2-11                                          Secretary of the Senate