1-1 AN ACT 1-2 relating to a report by the Legislative Budget Board on the 1-3 performance of the state's major investment funds. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 322, Government Code, is amended by 1-6 adding Section 322.014 to read as follows: 1-7 Sec. 322.014. REPORT ON MAJOR INVESTMENT FUNDS. (a) In 1-8 this section, "state investment fund" means any investment fund 1-9 administered by or under a contract with any state governmental 1-10 entity, including a fund: 1-11 (1) established by statute or by the Texas 1-12 Constitution; or 1-13 (2) administered by or under a contract with: 1-14 (A) a public retirement system as defined by 1-15 Section 802.001 that provides service retirement, disability 1-16 retirement, or death benefits for officers or employees of the 1-17 state; 1-18 (B) an institution of higher education as 1-19 defined by Section 61.003, Education Code; or 1-20 (C) any other entity that is part of state 1-21 government. 1-22 (b) The board shall evaluate and publish an annual report on 1-23 the risk-adjusted performance of each state investment fund that in 1-24 the opinion of the board contains a relatively large amount of 1-25 assets belonging to or administered by the state. The board in its 2-1 report shall: 2-2 (1) compare the risk-adjusted performance of the 2-3 funds; and 2-4 (2) examine the risk-adjusted performance, within and 2-5 among the funds, of similar asset classes and comparable portfolios 2-6 within asset classes. 2-7 (c) Each state governmental entity that administers a state 2-8 investment fund and each person that administers a state investment 2-9 fund under contract shall provide the board with the information 2-10 the board requests regarding the performance of the fund. 2-11 (d) The board shall publish the annual report in a format 2-12 and using terminology that a person without technical investment 2-13 expertise can understand. 2-14 SECTION 2. This Act takes effect immediately if it receives 2-15 a vote of two-thirds of all the members elected to each house, as 2-16 provided by Section 39, Article III, Texas Constitution. If this 2-17 Act does not receive the vote necessary for immediate effect, this 2-18 Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 734 passed the Senate on April 3, 2001, by the following vote: Yeas 30, Nays 0, one present not voting; and that the Senate concurred in House amendment on May 26, 2001, by the following vote: Yeas 30, Nays 0, one present not voting. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 734 passed the House, with amendment, on May 23, 2001, by the following vote: Yeas 137, Nays 0, two present not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor