85R3356 KFF-F
By: Taylor of Collin S.B. No. 1344
A BILL TO BE ENTITLED
AN ACT
relating to reporting on investments by certain public retirement
systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 802.002(a), Government Code, is amended
to read as follows:
(a) Except as provided by Subsection (b), the Employees
Retirement System of Texas, the Teacher Retirement System of Texas,
the Texas County and District Retirement System, the Texas
Municipal Retirement System, and the Judicial Retirement System of
Texas Plan Two are exempt from Sections 802.101(a), 802.101(b),
802.101(d), 802.102, 802.103(a), 802.103(b), 802.109, 802.2015,
802.2016, 802.202, 802.203, 802.204, 802.205, 802.206, and
802.207. The Judicial Retirement System of Texas Plan One is exempt
from all of Subchapters B and C except Sections 802.104 and 802.105.
The optional retirement program governed by Chapter 830 is exempt
from all of Subchapters B and C except Section 802.106.
SECTION 2. Section 802.108, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) For purposes of determining investment returns under
this section, a public retirement system may not report all
investment income, including any interest, dividends, capital
gains, or other income, earned from an investment instrument in a
single year if the investment instrument is held for a period beyond
that single year. A public retirement system shall report
investment income earned from an investment instrument in the year
in which the income is earned.
SECTION 3. Subchapter B, Chapter 802, Government Code, is
amended by adding Section 802.109 to read as follows:
Sec. 802.109. INVESTMENT PRACTICES AND PERFORMANCE
REPORTS. (a) At least once every four years, a public retirement
system shall select an independent firm with substantial experience
in evaluating institutional investment practices and performance
to evaluate the retirement system's investment practices and
performance.
(b) A public retirement system shall pay the costs of each
evaluation of the system under this section.
(c) A report of an evaluation under this section must be
filed with the governing body of the public retirement system and
the board. The report must include a listing of all commissions and
fees paid by the public retirement system during the reporting
period for the sale, purchase, or management of system assets.
SECTION 4. This Act takes effect September 1, 2017.