LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 3, 2001 TO: Honorable Dale B. Tillery, Chair, House Committee on Pensions & Investments FROM: John Keel, Director, Legislative Budget Board IN RE: SB734 by Duncan (Relating to a report by the Legislative Budget Board on the performance of the state's major investment funds.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would require the Texas Legislative Budget Board (LBB) to prepare and publish an annual report on certain state investment funds. Funds contained in the report would be those that, in the opinion of the board, contain a relatively large amount of assets and are (1) established by statute or by the Texas Constitution or (2) administered by or under contract with a public retirement system defined by Section 802.001 of the Government Code, an institution of higher education, or any other entity of state government. The report would compare the performance of the funds and, within and among the funds, examine the performance of similar asset classes and comparable portfolios within asset classes. Further, the report would include certain information on any advisors or advisory committees to the funds. The LBB intends to contract with the State Auditor's Office (SAO) since they have experience in this type of analysis. The annual contracted costs with the SAO would be approximately $35,000. Additional FTE requirements on the part of the LBB could be absorbed within existing resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, RB, WP