SB 322

86(R) - 2019
Senate State Affairs
House Pensions, Investments, & Financial Services
Senate State Affairs
House Pensions, Investments, & Financial Services

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral


Joan Huffman


Jim Murphy

Bill Caption

Relating to the evaluation and reporting of investment practices and performance of certain public retirement systems.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for SB 322, Committee Report 2nd House, Substituted: a negative impact of ($202,396) through the biennium ending August 31, 2021. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The Pension Review Board is required to implement this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the agency may, but is not required to, implement a provision of this Act using other appropriations for that purpose.

Bill Analysis

SB 322 would amend the requirements for evaluation and reporting of investment practices of certain public retirement systems. 

The bill would require a public retirement system, with certain exceptions, to select an independent firm with substantial experience in evaluating institutional investment practices and performance to evaluate the appropriateness, adequacy, and effectiveness of the retirement system's investment practices and performance. The firm would make recommendations for improving the system's investment policies, procedures, and practices, and requires each evaluation to include specific reviews. A public retirement systems would be required to post the latest data related to reports generated by this review on its website.

A report of an evaluation must be filed with the governing body of the public retirement system not later than May 1 of each year following the year in which the system is evaluated. Not later than the 31st day after the retirement system receives a report, it must be submitted to the board. The board would be required to submit a report to specified state policymakers. 

Vote Recommendation Notes

Texas Action recommends supporting SB 322 because it promotes limited government by improving transparency, accountability, and oversight in public retirement systems.