Texas 2017 - 85th Regular

Texas House Bill HB1701 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	By: Parker (Senate Sponsor - Hancock) H.B. No. 1701
2		-	(In the Senate - Received from the House April 24, 2017;
3		-	May 4, 2017, read first time and referred to Committee on Business &
4		-	Commerce; May 10, 2017, reported favorably by the following vote:
5		-	Yeas 7, Nays 0; May 10, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 1701
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the presentation of the investment policy of certain
12	6		governmental entities to a business organization that conducts
13	7		investment transactions for the entity.
14	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	9		SECTION 1. Sections 2256.005(k) and (l), Government Code,
16	10		are amended to read as follows:
17	11		(k) A written copy of the investment policy shall be
18	12		presented to any business organization [person] offering to engage
19	13		in an investment transaction with an investing entity [or to an
20	14		investment management firm under contract with an investing entity
21	15		to invest or manage the entity's investment portfolio]. For
22	16		purposes of this subsection and Subsection (l), "business
23	17		organization" means an [a business organization includes]
24	18		investment pool or [pools and an] investment management firm under
25	19		contract with an investing entity to invest or manage the entity's
26	20		investment portfolio that has accepted authority granted by the
27	21		entity under the contract to exercise investment discretion in
28	22		regard to the investing entity's funds. Nothing in this subsection
29	23		relieves the investing entity of the responsibility for monitoring
30	24		the investments made by the investing entity to determine that they
31	25		are in compliance with the investment policy. The qualified
32	26		representative of the business organization offering to engage in
33	27		an investment transaction with an investing entity shall execute a
34	28		written instrument in a form acceptable to the investing entity and
35	29		the business organization substantially to the effect that the
36	30		business organization has:
37	31		(1) received and reviewed the investment policy of the
38	32		entity; and
39	33		(2) acknowledged that the business organization has
40	34		implemented reasonable procedures and controls in an effort to
41	35		preclude investment transactions conducted between the entity and
42	36		the organization that are not authorized by the entity's investment
43	37		policy, except to the extent that this authorization:
44	38		(A) is dependent on an analysis of the makeup of
45	39		the entity's entire portfolio;
46	40		(B) [or] requires an interpretation of
47	41		subjective investment standards; or
48	42		(C) relates to investment transactions of the
49	43		entity that are not made through accounts or other contractual
50	44		arrangements over which the business organization has accepted
51	45		discretionary investment authority.
52	46		(l) The investment officer of an entity may not acquire or
53	47		otherwise obtain any authorized investment described in the
54	48		investment policy of the investing entity from a business
55	49		organization that [person who] has not delivered to the entity the
56	50		instrument required by Subsection (k).
57	51		SECTION 2. The changes in law made by this Act apply only to
58	52		a contract for an investment transaction entered into with a
59	53		business organization under Chapter 2256, Government Code, on or
60	54		after the effective date of this Act. A contract entered into before
61	55		the effective date of this Act is subject to the law in effect at the
62	56		time the contract was entered into, and the former law is continued
63	57		in effect for that purpose.
64	58		SECTION 3. This Act takes effect September 1, 2017.
65		-	* * * * *
	59	+	______________________________ ______________________________
	60	+	President of the Senate Speaker of the House
	61	+	I certify that H.B. No. 1701 was passed by the House on April
	62	+	20, 2017, by the following vote: Yeas 144, Nays 0, 2 present, not
	63	+	voting.
	64	+	______________________________
	65	+	Chief Clerk of the House
	66	+	I certify that H.B. No. 1701 was passed by the Senate on May
	67	+	12, 2017, by the following vote: Yeas 31, Nays 0.
	68	+	______________________________
	69	+	Secretary of the Senate
	70	+	APPROVED: _____________________
	71	+	Date
	72	+	_____________________
	73	+	Governor