77R15434 JRD-F By Duncan S.B. No. 734 Substitute the following for S.B. No. 734: By Tillery C.S.S.B. No. 734 A BILL TO BE ENTITLED 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 2-1 assets belonging to or administered by the state. The board in its 2-2 report shall: 2-3 (1) compare the risk-adjusted performance of the 2-4 funds; and 2-5 (2) examine the risk-adjusted performance, within and 2-6 among the funds, of similar asset classes and comparable portfolios 2-7 within asset classes. 2-8 (c) Each state governmental entity that administers a state 2-9 investment fund and each person that administers a state investment 2-10 fund under contract shall provide the board with the information 2-11 the board requests regarding the performance of the fund. 2-12 (d) The board shall publish the annual report in a format 2-13 and using terminology that a person without technical investment 2-14 expertise can understand. 2-15 SECTION 2. This Act takes effect immediately if it receives 2-16 a vote of two-thirds of all the members elected to each house, as 2-17 provided by Section 39, Article III, Texas Constitution. If this 2-18 Act does not receive the vote necessary for immediate effect, this 2-19 Act takes effect September 1, 2001.