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


Senate Research Center   S.B. 734
77R2257 JRD-DBy: Duncan
Finance
3/20/2001
As Filed


DIGEST AND PURPOSE 

Currently, the various state entities investing state treasury funds
typically issue an annual report, which provides information about the
funds performance.  As proposed, 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 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 performance of the funds and examine the 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.