Highlights 77th Texas Legislature - Senate

________________________________ BUDGET
77 th Texas Legislature
LBB Report on the Performance of the State's Major Investment Funds - S.B. 734
by Senator Duncan
House Sponsor: Representative Woolley
The various state entities investing state treasury funds typically issue an annual report, which provides
information about the fund’s performance.
Requires the Legislative Budget Board (LBB) to evaluate and publish an annual report on the risk-adjusted
performance of 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.
Requires the LBB in its report to compare the risk-adjusted performance of the funds and examine the riskadjusted
performance, within and among the funds, or similar asset classes and comparable portfolios
within asset classes.
Self-Directed Semi-Independent Agency Pilot Project - S.B. 736
by Senator Duncan
House Sponsor: Representative Wilson
During the 76th Legislature a self-directed semi-independent pilot project was established in which the
State Board of Accountants, the State Board of Architects, and the State Board of Engineers were allowed
greater budget flexibility, freedom from various state agency requirements, and general autonomy in the
operation of their respective agencies. During the interim, these agencies were precluded from
commencing the pilot because allowances had not been made for agency funds to be held outside the
state treasury and they were, therefore, required to comply with all provisions of Article IX of the General
Appropriations Act.
Amends the Self-Directed Semi-Independent Agency Project Act by directing all fees collected and any
funds appropriated to a project agency to be deposited in the Texas Safekeeping Trust Company outside
the treasury.
Requires that if a state agency no longer has status under this Act as a self-directed semi-independent
project agency either because of the expiration of this Act or for any other reason, unexpended fees in a
deposit account in the Texas Treasury Safekeeping Trust Company are to be transferred to the state.
Requires examination fees collected prior to September 1, 2001, for examinations conducted after
September 1, 2001, to be made available to the project agency to be spent as the agency directs.
Establishes the Self-Directed Semi-Independent Agency Pilot Project and designates the State Board of
Public Accountancy, the Board of Professional Engineers, and the Board of Architectural Examiners as part
of the pilot project.
Removes the project agencies from the legislative budgeting process and generally allows them to operate
outside the provisions of the General Appropriations Act.
Senate Research Center 29