87R215 KFF-D
By: White H.B. No. 1657
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting the investment of assets of the Employees
Retirement System of Texas and the Teacher Retirement System of
Texas in certain foreign business entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 815, Government Code, is
amended by adding Section 815.3013 to read as follows:
Sec. 815.3013. PROHIBITED INVESTMENTS IN CERTAIN FOREIGN
ENTITIES. (a) In this section:
(1) "Domestic" means the United States or a state of
the United States.
(2) "Foreign business entity" means a business entity
formed under, and the internal affairs of which are governed by, the
laws of a foreign jurisdiction.
(3) "Foreign jurisdiction" means a country or other
jurisdiction that is not the United States or a state of the United
States.
(b) The board of trustees, or any person to whom the board
delegates its investment authority, may not invest the retirement
system's assets in securities issued by a foreign business entity
that does not adhere to or is not subject to generally accepted
accounting, audit, or transparency standards similar to the
standards applicable to comparable domestic business entities, as
determined by the comptroller.
(c) The comptroller shall adopt rules necessary to
implement this section.
SECTION 2. Subchapter D, Chapter 825, Government Code, is
amended by adding Section 825.3013 to read as follows:
Sec. 825.3013. PROHIBITED INVESTMENTS IN CERTAIN FOREIGN
ENTITIES. (a) In this section:
(1) "Domestic" means the United States or a state of
the United States.
(2) "Foreign business entity" means a business entity
formed under, and the internal affairs of which are governed by, the
laws of a foreign jurisdiction.
(3) "Foreign jurisdiction" means a country or other
jurisdiction that is not the United States or a state of the United
States.
(b) The board of trustees, or any person to whom the board
delegates its investment authority, may not invest the retirement
system's assets in securities issued by a foreign business entity
that does not adhere to or is not subject to generally accepted
accounting, audit, or transparency standards similar to the
standards applicable to comparable domestic business entities, as
determined by the comptroller.
(c) The comptroller shall adopt rules necessary to
implement this section.
SECTION 3. This Act takes effect September 1, 2022.