SRC-EPT, TBR S.B. 734 77(R)BILL ANALYSIS


Senate Research CenterS.B. 734
By: Duncan
Finance
6/13/2001
Enrolled


DIGEST AND PURPOSE 

The various state entities investing state treasury funds typically issue
an annual report, which provides information about the funds performance.
S.B. 734 directs the Legislative Budget Board to develop an annual report
on the performance of the state's major investment funds. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 322, Government Code, by adding Section 322.014,
as follows, 

Sec. 322.014.  REPORT ON MAJOR INVESTMENT FUNDS.  (a)  Defines "state
investment fund." 

(b)  Requires the Legislative Budget Board (board) to evaluate and publish
an annual report on the risk-adjusted performance of each state investment
fund that in the opinion of the board contains a relatively large amount of
assets belonging to or administered by the state.  Requires the board in
its report to compare the risk-adjusted performance of the funds and
examine the risk-adjusted performance, within and among the funds, or
similar asset classes and comparable portfolios within asset classes. 

(c)  Requires each state governmental entity that administers a state
investment fund and each person that administers a state investment fund
under contract to provide the board with the information the board requests
regarding the performance of the fund. 

(d)  Requires the board to publish the annual report in a format and using
terminology that a person without technical investment expertise can
understand. 

SECTION 2.  Effective date: upon passage or September 1, 2001.