| 1 | 1 | | 86R7427 TSR-D |
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| 2 | 2 | | By: Flynn H.B. No. 2652 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the procurement of investment and consulting services |
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| 8 | 8 | | by certain public retirement systems. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 802.002(a), Government Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (a) Except as provided by Subsection (b), the Employees |
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| 13 | 13 | | Retirement System of Texas, the Teacher Retirement System of Texas, |
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| 14 | 14 | | the Texas County and District Retirement System, the Texas |
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| 15 | 15 | | Municipal Retirement System, and the Judicial Retirement System of |
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| 16 | 16 | | Texas Plan Two are exempt from Sections 802.101(a), 802.101(b), |
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| 17 | 17 | | 802.101(d), 802.102, 802.103(a), 802.103(b), 802.2015, 802.2016, |
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| 18 | 18 | | 802.202, 802.203, 802.204, 802.205, 802.206, [and] 802.207, and |
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| 19 | 19 | | 802.208. The Judicial Retirement System of Texas Plan One is exempt |
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| 20 | 20 | | from all of Subchapters B and C except Sections 802.104 and 802.105. |
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| 21 | 21 | | The optional retirement program governed by Chapter 830 is exempt |
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| 22 | 22 | | from all of Subchapters B and C except Section 802.106. |
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| 23 | 23 | | SECTION 2. Subchapter C, Chapter 802, Government Code, is |
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| 24 | 24 | | amended by adding Section 802.208 to read as follows: |
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| 25 | 25 | | Sec. 802.208. CONTRACTING FOR INVESTMENT OR CONSULTING |
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| 26 | 26 | | SERVICES. (a) The governing body of a public retirement system |
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| 27 | 27 | | shall issue a request for proposals and evaluate the proposals |
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| 28 | 28 | | received before entering into a contract for investment or |
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| 29 | 29 | | consulting services, including professional investment management |
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| 30 | 30 | | services. |
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| 31 | 31 | | (b) The term of a contract for investment or consulting |
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| 32 | 32 | | services entered into by the governing body of a public retirement |
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| 33 | 33 | | system may not exceed five years. |
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| 34 | 34 | | (c) This section does not prohibit the governing body of a |
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| 35 | 35 | | public retirement system from awarding a contract for investment or |
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| 36 | 36 | | consulting services to the same person. |
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| 37 | 37 | | SECTION 3. Section 802.208, Government Code, as added by |
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| 38 | 38 | | this Act, applies only to a contract for investment or consulting |
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| 39 | 39 | | services that is entered into or renewed by the governing body of a |
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| 40 | 40 | | public retirement system on or after the effective date of this Act. |
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| 41 | 41 | | SECTION 4. This Act takes effect September 1, 2019. |
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