HBA-KDB C.S.S.B. 971 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 971
By: Shapleigh
State Affairs
5/18/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, large state investments of public funds are managed by state
agencies in concert with national investment and brokerage firms.
Disclosure of this funding and its management is currently compiled but not
readily disseminated to the public.  C.S.S.B. 971 expands existing
disclosure policy by requiring the posting on the Internet of all
investment funds administered by or under a contract with any entity of
state government, except for the Texas Workers' Compensation Insurance
Fund.  

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

C.S.S.B. 971 amends the Government Code to require the entity of state
government responsible for administering a state investment fund, on or
before the 60th day following the last day of each calendar quarter, to
post a report containing specified fund information for the previous
calendar quarter on a generally accessible Internet site maintained by or
for the fund. 

EFFECTIVE DATE

July 1, 2001, or if the Act does not receive the necessary vote, the Act
takes effect October 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 971 modifies the original by requiring the entity of state
government responsible for administering a state investment fund (fund) to
post a report on the fund on or before the 60th day following the last day
of each calendar quarter, rather than to post the report on or before the
first day of each calendar quarter. The substitute no longer provides that
the report has to state the dollar amounts of fees, commissions, and other
amounts paid in connection with administration of the fund to businesses
categorized according to the race, ethnicity, and gender of the controlling
ownership of each business and the principal place of business of each
business.  The substitute provides that the report must state the
percentage of commissions paid by the fund to historically underutilized
businesses in relation to the total commission paid by the fund.