1-1 By: Shapleigh, Madla S.B. No. 971 1-2 (In the Senate - Filed February 27, 2001; February 28, 2001, 1-3 read first time and referred to Committee on State Affairs; 1-4 April 4, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 8, Nays 0; April 4, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 971 By: Shapleigh 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to requiring state investment funds to post certain 1-11 information on the Internet. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subchapter F, Chapter 2054, Government Code, is 1-14 amended by adding Section 2054.111 to read as follows: 1-15 Sec. 2054.111. REQUIRED POSTING OF STATE INVESTMENT FUND 1-16 INFORMATION ON INTERNET. (a) In this section, "state investment 1-17 fund" means any investment fund administered by or under a contract 1-18 with any entity of state government, including a fund: 1-19 (1) established by statute or by the Texas 1-20 Constitution; or 1-21 (2) administered by or under a contract with: 1-22 (A) a public retirement system, as defined by 1-23 Section 802.001, that provides service retirement, disability 1-24 retirement, or death benefits for officers or employees of the 1-25 state; 1-26 (B) an institution of higher education, as 1-27 defined by Section 61.003, Education Code; or 1-28 (C) any other entity that is part of state 1-29 government. 1-30 (b) The entity of state government responsible for 1-31 administering a state investment fund shall, on or before the first 1-32 day of each calendar quarter, post a report containing the 1-33 information specified by Subsection (c) for the previous calendar 1-34 quarter on a generally accessible Internet site maintained by or 1-35 for the fund. 1-36 (c) The report must state: 1-37 (1) all purchases and sales by or for the fund of 1-38 domestic equity securities and bonds in the following summary form: 1-39 (A) company name; 1-40 (B) total amount of shares traded; 1-41 (C) total commissions paid; and 1-42 (D) the ratio of the amount of the commissions 1-43 to the number of shares; 1-44 (2) the fund's investment managers, investment 1-45 custodians, investment performance measurement consultants, 1-46 securities lending agents, and any other ancillary consultants in 1-47 the following summary form: 1-48 (A) company name; 1-49 (B) average fund assets under management; 1-50 (C) fees paid by the fund; and 1-51 (D) average basis points that fees paid by the 1-52 fund represent in relation to the average assets of the fund under 1-53 management; and 1-54 (3) the dollar amounts of fees, commissions, and other 1-55 amounts paid in connection with the administration of the fund, as 1-56 described under Subdivisions (1) and (2), to businesses, 1-57 categorized according to: 1-58 (A) the race, ethnicity, and gender of the 1-59 controlling ownership of each business; 1-60 (B) the principal place of business of each 1-61 business; and 1-62 (C) the status of each business as a 1-63 historically underutilized business. 1-64 (d) This section does not apply to the Texas Workers' 2-1 Compensation Insurance Fund created under Article 5.76-3, Insurance 2-2 Code. 2-3 SECTION 2. This Act takes effect July 1, 2001, if it 2-4 receives a vote of two-thirds of all the members elected to each 2-5 house, as provided by Section 39, Article III, Texas Constitution. 2-6 If this Act does not receive the vote necessary for effect on that 2-7 date, this Act takes effect October 1, 2001. 2-8 * * * * *