| 1 | 1 | | 87R215 KFF-D |
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| 2 | 2 | | By: White H.B. No. 1657 |
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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 prohibiting the investment of assets of the Employees |
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| 8 | 8 | | Retirement System of Texas and the Teacher Retirement System of |
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| 9 | 9 | | Texas in certain foreign business entities. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter D, Chapter 815, Government Code, is |
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| 12 | 12 | | amended by adding Section 815.3013 to read as follows: |
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| 13 | 13 | | Sec. 815.3013. PROHIBITED INVESTMENTS IN CERTAIN FOREIGN |
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| 14 | 14 | | ENTITIES. (a) In this section: |
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| 15 | 15 | | (1) "Domestic" means the United States or a state of |
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| 16 | 16 | | the United States. |
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| 17 | 17 | | (2) "Foreign business entity" means a business entity |
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| 18 | 18 | | formed under, and the internal affairs of which are governed by, the |
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| 19 | 19 | | laws of a foreign jurisdiction. |
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| 20 | 20 | | (3) "Foreign jurisdiction" means a country or other |
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| 21 | 21 | | jurisdiction that is not the United States or a state of the United |
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| 22 | 22 | | States. |
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| 23 | 23 | | (b) The board of trustees, or any person to whom the board |
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| 24 | 24 | | delegates its investment authority, may not invest the retirement |
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| 25 | 25 | | system's assets in securities issued by a foreign business entity |
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| 26 | 26 | | that does not adhere to or is not subject to generally accepted |
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| 27 | 27 | | accounting, audit, or transparency standards similar to the |
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| 28 | 28 | | standards applicable to comparable domestic business entities, as |
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| 29 | 29 | | determined by the comptroller. |
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| 30 | 30 | | (c) The comptroller shall adopt rules necessary to |
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| 31 | 31 | | implement this section. |
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| 32 | 32 | | SECTION 2. Subchapter D, Chapter 825, Government Code, is |
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| 33 | 33 | | amended by adding Section 825.3013 to read as follows: |
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| 34 | 34 | | Sec. 825.3013. PROHIBITED INVESTMENTS IN CERTAIN FOREIGN |
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| 35 | 35 | | ENTITIES. (a) In this section: |
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| 36 | 36 | | (1) "Domestic" means the United States or a state of |
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| 37 | 37 | | the United States. |
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| 38 | 38 | | (2) "Foreign business entity" means a business entity |
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| 39 | 39 | | formed under, and the internal affairs of which are governed by, the |
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| 40 | 40 | | laws of a foreign jurisdiction. |
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| 41 | 41 | | (3) "Foreign jurisdiction" means a country or other |
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| 42 | 42 | | jurisdiction that is not the United States or a state of the United |
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| 43 | 43 | | States. |
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| 44 | 44 | | (b) The board of trustees, or any person to whom the board |
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| 45 | 45 | | delegates its investment authority, may not invest the retirement |
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| 46 | 46 | | system's assets in securities issued by a foreign business entity |
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| 47 | 47 | | that does not adhere to or is not subject to generally accepted |
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| 48 | 48 | | accounting, audit, or transparency standards similar to the |
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| 49 | 49 | | standards applicable to comparable domestic business entities, as |
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| 50 | 50 | | determined by the comptroller. |
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| 51 | 51 | | (c) The comptroller shall adopt rules necessary to |
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| 52 | 52 | | implement this section. |
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| 53 | 53 | | SECTION 3. This Act takes effect September 1, 2022. |
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