82R3049 KJM-D
By: Lewis H.B. No. 791
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting certain contracts for investment services
for state funds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2267 to read as follows:
CHAPTER 2267. CERTAIN CONTRACTS FOR INVESTMENT SERVICES FOR STATE
FUNDS
Sec. 2267.001. DEFINITION. In this chapter, "state
investment fund" means any investment fund that is investing public
funds and that is administered by or under a contract with any
entity of state government, including a fund:
(1) established by statute or by the Texas
Constitution; or
(2) administered by or under a contract with:
(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;
(B) an institution of higher education, as
defined by Section 61.003, Education Code; or
(C) any other entity that is part of state
government.
Sec. 2267.002. PROHIBITION ON CERTAIN CONTRACTS FOR
INVESTMENT SERVICES. The entity of state government responsible
for the administration of a state investment fund may not enter into
a contract for professional investment management services under
which the provider of the services receives a bonus, reward, or
other incentive payment based on the performance of an investment
made or recommended by the provider.
SECTION 2. The change in law made by this Act applies only
to a contract entered into or renewed on or after the effective date
of this Act. A contract entered into or renewed before the
effective date of this Act is governed by the law in effect
immediately before that date, and that law is continued in effect
for that purpose.
SECTION 3. This Act takes effect September 1, 2011.