By Duncan                                              S.B. No. 734
         77R2257 JRD-D                           
                                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 adding
 1-6     Section 322.014 to read as follows:
 1-7           Sec. 322.014.  REPORT ON MAJOR INVESTMENT FUNDS. (a)  In this
 1-8     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 performance of each state investment fund that in the opinion
1-24     of the board contains a relatively large amount of assets belonging
 2-1     to or administered by the state.  The board in its report shall:
 2-2                 (1)  compare the performance of the funds; and
 2-3                 (2)  examine the performance, within and among the
 2-4     funds, of similar asset classes and comparable portfolios within
 2-5     asset classes.
 2-6           (c)  Each state governmental entity that administers a state
 2-7     investment fund and each person that administers a state investment
 2-8     fund under contract shall provide the board with the information
 2-9     the board requests regarding the performance of the fund.
2-10           (d)  The board shall publish the annual report in a format
2-11     and using terminology that a person without technical investment
2-12     expertise can understand.
2-13           SECTION 2.  This Act takes effect immediately if it receives
2-14     a vote of two-thirds of all the members elected to each house, as
2-15     provided by Section 39, Article III, Texas Constitution.  If this
2-16     Act does not receive the vote necessary for immediate effect, this
2-17     Act takes effect September 1, 2001.