77R15224 DAK-F
By Shapleigh, et al. S.B. No. 971
Substitute the following for S.B. No. 971:
By Brimer C.S.S.B. No. 971
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requiring state investment funds to post certain
1-3 information on the Internet.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter F, Chapter 2054, Government Code, is
1-6 amended by adding Section 2054.111 to read as follows:
1-7 Sec. 2054.111. REQUIRED POSTING OF STATE INVESTMENT FUND
1-8 INFORMATION ON INTERNET. (a) In this section, "state investment
1-9 fund" means any investment fund administered by or under a contract
1-10 with any entity of state government, 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 entity of state government responsible for
1-23 administering a state investment fund shall, on or before the 60th
1-24 day following the last day of each calendar quarter, post a report
2-1 containing the information specified by Subsection (c) for the
2-2 previous calendar quarter on a generally accessible Internet site
2-3 maintained by or for the fund.
2-4 (c) The report must state:
2-5 (1) all purchases and sales by or for the fund of
2-6 domestic equity securities and bonds in the following summary form:
2-7 (A) company name;
2-8 (B) total amount of shares traded;
2-9 (C) total commissions paid; and
2-10 (D) the ratio of the amount of the commissions
2-11 to the number of shares;
2-12 (2) the fund's investment managers, investment
2-13 custodians, investment performance measurement consultants,
2-14 securities lending agents, and any other ancillary consultants in
2-15 the following summary form:
2-16 (A) company name;
2-17 (B) average fund assets under management;
2-18 (C) fees paid by the fund; and
2-19 (D) average basis points that fees paid by the
2-20 fund represent in relation to the average assets of the fund under
2-21 management; and
2-22 (3) for categories of businesses based on the status
2-23 of each business as a historically underutilized business:
2-24 (A) the dollar amounts of fees, commissions, and
2-25 other amounts paid in connection with the administration of the
2-26 fund, as described under Subdivisions (1) and (2), to those
2-27 businesses; and
3-1 (B) the percentage of commissions paid by the
3-2 fund to those businesses in relation to the total commissions paid
3-3 by the fund, as described by Subdivision (1).
3-4 (d) This section does not apply to the Texas Workers'
3-5 Compensation Insurance Fund created under Article 5.76-3, Insurance
3-6 Code.
3-7 SECTION 2. This Act takes effect July 1, 2001, if it
3-8 receives a vote of two-thirds of all the members elected to each
3-9 house, as provided by Section 39, Article III, Texas Constitution.
3-10 If this Act does not receive the vote necessary for effect on that
3-11 date, this Act takes effect October 1, 2001.