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.