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 * * * * *