82R7301 KFF-D
By: Lucio S.B. No. 1803
A BILL TO BE ENTITLED
AN ACT
relating to investments in Texas businesses by certain public
retirement systems in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 802, Government Code, is
amended by adding Section 802.2025 to read as follows:
Sec. 802.2025. INVESTMENT IN TEXAS BUSINESSES. (a) In this
section, "Texas business" means a business:
(1) formed or organized under the laws of this state;
(2) that has a principal place of business in this
state; or
(3) that has an established physical presence in and
employs residents of this state.
(b) This section applies to a public retirement system that
provides service retirement, disability retirement, or death
benefits for officers or employees of this state or of an agency or
instrumentality of this state.
(c) All other material matters being equal, in investing the
assets of the system, the governing body of a public retirement
system or the investment manager or other person with which the
governing body contracts to provide professional investment
management services shall give preference to Texas businesses.
(d) This section does not affect the fiduciary duty of a
public retirement system under Section 67, Article XVI, Texas
Constitution, or other law.
SECTION 2. Section 802.2025, Government Code, as added by
this Act, applies only to an investment made on or after the
effective date of this Act. An investment made before the effective
date of this Act is governed by the law as it existed on the date of
the investment, and that law is continued in effect for that
purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.