Texas House Bill HB4446

Texas 2009 - 81st Regular

• Out of House Committee: 5/11/09
• Voted on by House: 5/17/09

Caption

Relating to the investment authority of the Teacher Retirement System of Texas and the Employees Retirement System of Texas.

Impact

The changes proposed in HB4446 will impact the operational framework of retirement fund management in Texas. By specifying that a portion of investment services should be awarded to women-owned and minority-owned firms, the bill seeks to promote economic opportunities for underrepresented groups in the investment management field. This may lead to greater diversity among investment managers handling these substantial state funds, potentially resulting in varied investment strategies and business practices that reflect broader community values.

Summary

House Bill 4446 aims to amend the investment authority of the Teachers Retirement System of Texas and the Employees Retirement System of Texas. Specifically, the bill emphasizes the need for inclusivity by requiring that at least 25% of the services contracted for investment management be performed by women-owned or minority-owned businesses. This change intends to encourage diverse participation in managing public retirement funds and aligns with broader societal goals of equity and representation within financial sectors.

Contention

Although the bill seeks to enhance diversity in public retirement fund investment, it may face scrutiny from stakeholders concerned about the impact of such regulations on investment performance. Critics might argue that focusing on the ownership status of firms could detract from evaluating their investment competence. Therefore, while the bill's intent is to promote equity, ensuring it does not inadvertently compromise the financial integrity or growth of state retirement funds could be a point of discussion among legislators and financial advisors.