Relating to annual reporting of women and minority participation in the management and investment of the assets of a state investment fund.
Impact
If enacted, HB 3878 would require state investment funds to regularly evaluate and publish detailed reports regarding the risk-adjusted performance of funds, specifically assessing how women and minority-owned businesses participate in the management of these assets. This provision aims to promote diversity in the financial services sector and ensure these businesses receive fair consideration in investment opportunities.
Summary
House Bill 3878 focuses on enhancing transparency and accountability in the management and investment of state investment funds by establishing a requirement for annual reporting on the participation of women and minority-owned businesses. The bill seeks to amend sections of the Texas Government Code to define 'minority-owned' and 'women-owned' businesses and outline the reporting responsibilities of state boards handling investment funds.
Contention
There are notable points of contention surrounding the implementation of this bill, particularly concerning the measurement and interpretation of participation by minority and women-owned businesses. Some stakeholders may raise questions about the effectiveness of reports and whether they would lead to meaningful changes in investment practices. Others may argue about the potential bureaucratic burden placed on state investment boards and whether this requirement could impact financial performance.
Relating to authorized investments of public money by certain governmental entities and the confidentiality of certain information related to those investments.
Relating to the fiduciary responsibility of the governing body of the public retirement systems in this state and the investment managers and proxy advisors acting on behalf of those systems.
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.
Relating to the fiduciary responsibility of governmental entities and the investment agents, plan administrators, or qualified vendors acting on behalf of those entities.