1-1     By:  Duncan                                            S.B. No. 734
 1-2           (In the Senate - Filed February 15, 2001; February 19, 2001,
 1-3     read first time and referred to Committee on Finance;
 1-4     March 26, 2001, reported favorably by the following vote:  Yeas 10,
 1-5     Nays 0; March 26, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to a report by the Legislative Budget Board on the
 1-9     performance of the state's major investment funds.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Chapter 322, Government Code, is amended by
1-12     adding Section 322.014 to read as follows:
1-13           Sec. 322.014.  REPORT ON MAJOR INVESTMENT FUNDS.  (a)  In
1-14     this section, "state investment fund" means any investment fund
1-15     administered by or under a contract with any state governmental
1-16     entity, including a fund:
1-17                 (1)  established by statute or by the Texas
1-18     Constitution; or
1-19                 (2)  administered by or under a contract with:
1-20                       (A)  a public retirement system as defined by
1-21     Section 802.001 that provides service retirement, disability
1-22     retirement, or death benefits for officers or employees of the
1-23     state;
1-24                       (B)  an institution of higher education as
1-25     defined by Section 61.003, Education Code; or
1-26                       (C)  any other entity that is part of state
1-27     government.
1-28           (b)  The board shall evaluate and publish an annual report on
1-29     the performance of each state investment fund that in the opinion
1-30     of the board contains a relatively large amount of assets belonging
1-31     to or administered by the state.  The board in its report shall:
1-32                 (1)  compare the performance of the funds; and
1-33                 (2)  examine the performance, within and among the
1-34     funds, of similar asset classes and comparable portfolios within
1-35     asset classes.
1-36           (c)  Each state governmental entity that administers a state
1-37     investment fund and each person that administers a state investment
1-38     fund under contract shall provide the board with the information
1-39     the board requests regarding the performance of the fund.
1-40           (d)  The board shall publish the annual report in a format
1-41     and using terminology that a person without technical investment
1-42     expertise can understand.
1-43           SECTION 2.  This Act takes effect immediately if it receives
1-44     a vote of two-thirds of all the members elected to each house, as
1-45     provided by Section 39, Article III, Texas Constitution.  If this
1-46     Act does not receive the vote necessary for immediate effect, this
1-47     Act takes effect September 1, 2001.
1-48                                  * * * * *