By Shapleigh                                           S.B. No. 971
         77R5884 DAK-F                           
                                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 first
1-24     day of each calendar quarter, post a report containing the
 2-1     information specified by Subsection (c) for the previous calendar
 2-2     quarter on a generally accessible Internet site maintained by or
 2-3     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)  the dollar amounts of fees, commissions, and other
2-23     amounts paid in connection with the administration of the fund, as
2-24     described under Subdivisions (1) and (2), to businesses,
2-25     categorized according to:
2-26                       (A)  the race, ethnicity, and gender of the
2-27     controlling ownership of each business;
 3-1                       (B)  the principal place of business of each
 3-2     business; and
 3-3                       (C)  the status of each business as a
 3-4     historically underutilized business.
 3-5           SECTION 2.  This Act takes effect July 1, 2001, if it
 3-6     receives a vote of two-thirds of all the members elected to each
 3-7     house, as provided by Section 39, Article III, Texas Constitution.
 3-8     If this Act does not receive the vote necessary for effect on that
 3-9     date, this Act takes effect October 1, 2001.