By: Gallego H.B. No. 3878
A BILL TO BE ENTITLED
AN ACT
relating to annual reporting of women and minority participation in
the management and investment of the assets of a state investment
fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 322.014(a) and (b), Government Code,
are amended to read as follows:
(a) In this section:[,]
(1) "Minority-owned business" means a business entity
at least 51 percent of which is owned by minority group members or,
in the case of a corporation, at least 51 percent of the shares of
which are owned by minority group members, and that is managed and,
in daily operations, controlled by minority group members.
(2) "Minority group members" includes:
(A) African Americans;
(B) American Indians;
(C) Asian Americans;
(D) Americans of Hispanic origin; and
(E) persons with disabilities.
(3) "State [state] investment fund" means any
investment fund administered by or under a contract with any state
governmental entity, including a fund:
(A) [(1)] established by statute or by the Texas
Constitution; or
(B) [(2)] administered by or under a contract
with:
(i) [(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;
(ii) [(B)] an institution of higher
education as defined by Section 61.003, Education Code; or
(iii) [(C)] any other entity that is part
of state government.
(4) "Women-owned business" means a business entity at
least 51 percent of which is owned by women or, in the case of a
corporation, at least 51 percent of the shares of which are owned by
women, and that is managed and controlled by women in its daily
operations.
(b) The board shall evaluate and publish an annual report on
the risk-adjusted performance of and the participation by
minority-owned and women-owned businesses in each state investment
fund that in the opinion of the board contains a relatively large
amount of assets belonging to or administered by the state. The
board in its report shall:
(1) compare the risk-adjusted performance of the
funds; [and]
(2) examine the risk-adjusted performance, within and
among the funds, of similar asset classes and comparable portfolios
within asset classes; and
(3) detail participation by minority-owned and
women-owned businesses, including the participation of
minority-owned and women-owned financial services firms, expressed
as a percentage of the total assets under management by outside
financial services firms.
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, 2009.