| 1 | 1 | | By: Gallego H.B. No. 3878 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to annual reporting of women and minority participation in |
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| 7 | 7 | | the management and investment of the assets of a state investment |
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| 8 | 8 | | fund. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 322.014(a) and (b), Government Code, |
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| 11 | 11 | | are amended to read as follows: |
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| 12 | 12 | | (a) In this section:[,] |
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| 13 | 13 | | (1) "Minority-owned business" means a business entity |
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| 14 | 14 | | at least 51 percent of which is owned by minority group members or, |
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| 15 | 15 | | in the case of a corporation, at least 51 percent of the shares of |
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| 16 | 16 | | which are owned by minority group members, and that is managed and, |
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| 17 | 17 | | in daily operations, controlled by minority group members. |
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| 18 | 18 | | (2) "Minority group members" includes: |
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| 19 | 19 | | (A) African Americans; |
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| 20 | 20 | | (B) American Indians; |
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| 21 | 21 | | (C) Asian Americans; |
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| 22 | 22 | | (D) Americans of Hispanic origin; and |
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| 23 | 23 | | (E) persons with disabilities. |
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| 24 | 24 | | (3) "State [state] investment fund" means any |
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| 25 | 25 | | investment fund administered by or under a contract with any state |
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| 26 | 26 | | governmental entity, including a fund: |
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| 27 | 27 | | (A) [(1)] established by statute or by the Texas |
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| 28 | 28 | | Constitution; or |
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| 29 | 29 | | (B) [(2)] administered by or under a contract |
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| 30 | 30 | | with: |
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| 31 | 31 | | (i) [(A)] a public retirement system as |
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| 32 | 32 | | defined by Section 802.001 that provides service retirement, |
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| 33 | 33 | | disability retirement, or death benefits for officers or employees |
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| 34 | 34 | | of the state; |
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| 35 | 35 | | (ii) [(B)] an institution of higher |
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| 36 | 36 | | education as defined by Section 61.003, Education Code; or |
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| 37 | 37 | | (iii) [(C)] any other entity that is part |
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| 38 | 38 | | of state government. |
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| 39 | 39 | | (4) "Women-owned business" means a business entity at |
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| 40 | 40 | | least 51 percent of which is owned by women or, in the case of a |
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| 41 | 41 | | corporation, at least 51 percent of the shares of which are owned by |
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| 42 | 42 | | women, and that is managed and controlled by women in its daily |
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| 43 | 43 | | operations. |
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| 44 | 44 | | (b) The board shall evaluate and publish an annual report on |
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| 45 | 45 | | the risk-adjusted performance of and the participation by |
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| 46 | 46 | | minority-owned and women-owned businesses in each state investment |
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| 47 | 47 | | fund that in the opinion of the board contains a relatively large |
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| 48 | 48 | | amount of assets belonging to or administered by the state. The |
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| 49 | 49 | | board in its report shall: |
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| 50 | 50 | | (1) compare the risk-adjusted performance of the |
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| 51 | 51 | | funds; [and] |
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| 52 | 52 | | (2) examine the risk-adjusted performance, within and |
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| 53 | 53 | | among the funds, of similar asset classes and comparable portfolios |
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| 54 | 54 | | within asset classes; and |
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| 55 | 55 | | (3) detail participation by minority-owned and |
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| 56 | 56 | | women-owned businesses, including the participation of |
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| 57 | 57 | | minority-owned and women-owned financial services firms, expressed |
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| 58 | 58 | | as a percentage of the total assets under management by outside |
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| 59 | 59 | | financial services firms. |
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| 60 | 60 | | SECTION 2. This Act takes effect immediately if it receives |
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| 61 | 61 | | a vote of two-thirds of all the members elected to each house, as |
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| 62 | 62 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 63 | 63 | | Act does not receive the vote necessary for immediate effect, this |
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| 64 | 64 | | Act takes effect September 1, 2009. |
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