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.