HBA-JEK S.B. 734 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 734
By: Duncan
Pensions & Investments
5/2/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, state entities that invest state treasury funds typically issue
an annual report regarding the performance of their funds.  Senate Bill 734
requires the Legislative Budget Board to publish an annual report on the
performance of the state's major investment funds. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 734 amends the Government Code to require the Legislative
Budget Board (LBB) to evaluate and publish an annual report on the
performance of each state investment fund that contains a relatively large
amount of assets belonging to or administered by the state.  The bill
requires the LBB in its report to compare the performance of the funds,
examine the performance of similar asset classes and comparable portfolios
within asset classes, and include information on any advisors and advisory
committees to state investment funds that provide information or advice on
investments.  The bill requires each state governmental entity or person
that administers a state investment fund to provide information the LBB
requests regarding the performance of the fund.  The bill requires the LBB
in its report to use terminology and a format that a person without
technical investment expertise can understand. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.