78R3935 JJT-F

By:  Shapleigh                                                    S.B. No. 650



A BILL TO BE ENTITLED

AN ACT

relating to requiring state investment funds to post certain 
information on the Internet.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter F, Chapter 2054, Government Code, is 
amended by adding Section 2054.114 to read as follows:
	Sec. 2054.114.  REQUIRED POSTING OF STATE INVESTMENT FUND 
INFORMATION ON INTERNET.  (a)  In this section, "state investment 
fund" means any investment fund administered by or under a contract 
with any entity of state government, including a fund:
		(1)  established by statute or by the Texas 
Constitution; or         
		(2)  administered by or under a contract with:                         
			(A)  a public retirement system, as defined by 
Section 802.001, that provides service retirement, disability 
retirement, or death benefits for officers or employees of the 
state;
			(B)  an institution of higher education, as 
defined by Section 61.003, Education Code; or
			(C)  any other entity that is part of state 
government.             
	(b)  The entity of state government responsible for 
administering a state investment fund shall, on or before the first 
day of each calendar quarter, post a report containing the 
information specified by Subsection (c) for the previous calendar 
quarter on a generally accessible Internet site maintained by or 
for:
		(1)  the fund; or                                                      
		(2)  the state governmental entity, if a generally 
accessible Internet site is not maintained by or for the fund.
	(c)  The report must state:                                             
		(1)  all purchases and sales by or for the fund of 
domestic equity securities and bonds in the following summary form:
			(A)  company name;                                                    
			(B)  total amount of shares traded;                                   
			(C)  total commissions paid; and                                      
			(D)  the ratio of the amount of the commissions to 
the number of shares;
		(2)  the fund's investment managers, investment 
custodians, investment performance measurement consultants, 
securities lending agents, and any other ancillary consultants in 
the following summary form:
			(A)  company name;                                                    
			(B)  average fund assets under management;                            
			(C)  fees paid by the fund; and                                       
			(D)  average basis points that fees paid by the 
fund represent in relation to the average assets of the fund under 
management; and
		(3)  the dollar amounts of fees, commissions, and other 
amounts paid in connection with the administration of the fund, as 
described under Subdivisions (1) and (2), to businesses, 
categorized according to:
			(A)  the race, ethnicity, and gender of the 
controlling ownership of each business;
			(B)  the principal place of business of each 
business; and          
			(C)  the status of each business as a historically 
underutilized business.
	(d)  This section does not apply to the Texas Workers' 
Compensation Insurance Fund created under Article 5.76-3, 
Insurance Code.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.