| 1 | 1 | | 87R216 KFF-D |
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| 2 | 2 | | By: White H.B. No. 3047 |
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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 requiring that deferred compensation plans provided by |
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| 8 | 8 | | state agencies or institutions of higher education offer certain |
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| 9 | 9 | | types of qualified investment products to employees participating |
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| 10 | 10 | | in those plans. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 609.001, Government Code, is amended by |
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| 13 | 13 | | adding Subdivisions (1-a) and (8-a) to read as follows: |
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| 14 | 14 | | (1-a) "Chinese company" means a company that is |
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| 15 | 15 | | headquartered in China or is a wholly owned subsidiary or |
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| 16 | 16 | | majority-owned subsidiary of a company headquartered in China, |
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| 17 | 17 | | regardless of whether: |
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| 18 | 18 | | (A) the company's or its parent company's |
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| 19 | 19 | | securities are publicly traded; or |
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| 20 | 20 | | (B) the company or its parent company is listed |
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| 21 | 21 | | as a Chinese company on a public stock exchange. |
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| 22 | 22 | | (8-a) "Texas company" means a company: |
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| 23 | 23 | | (A) formed or organized under the laws of this |
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| 24 | 24 | | state; |
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| 25 | 25 | | (B) that has a principal place of business in |
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| 26 | 26 | | this state; or |
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| 27 | 27 | | (C) that has an established physical presence in |
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| 28 | 28 | | and employs residents of this state. |
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| 29 | 29 | | SECTION 2. Subchapter C, Chapter 609, Government Code, is |
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| 30 | 30 | | amended by adding Section 609.5045 to read as follows: |
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| 31 | 31 | | Sec. 609.5045. CERTAIN INVESTMENT PRODUCT OFFERINGS |
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| 32 | 32 | | REQUIRED. The board of trustees and the plan administrator shall |
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| 33 | 33 | | ensure that at least one of each of the following types of qualified |
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| 34 | 34 | | investment products is offered to employees participating in the |
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| 35 | 35 | | deferred compensation plan: |
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| 36 | 36 | | (1) a qualified investment product that excludes |
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| 37 | 37 | | investment in Chinese companies; and |
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| 38 | 38 | | (2) a qualified investment product that allows for at |
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| 39 | 39 | | least some investment in Texas companies. |
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| 40 | 40 | | SECTION 3. Subchapter D, Chapter 609, Government Code, is |
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| 41 | 41 | | amended by adding Section 609.7075 to read as follows: |
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| 42 | 42 | | Sec. 609.7075. CERTAIN INVESTMENT PRODUCT OFFERINGS |
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| 43 | 43 | | REQUIRED. The board of trustees and the plan administrator shall |
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| 44 | 44 | | ensure that at least one of each of the following types of qualified |
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| 45 | 45 | | investment products is offered to employees participating in the |
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| 46 | 46 | | deferred compensation plan: |
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| 47 | 47 | | (1) a qualified investment product that excludes |
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| 48 | 48 | | investment in Chinese companies; and |
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| 49 | 49 | | (2) a qualified investment product that allows for at |
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| 50 | 50 | | least some investment in Texas companies. |
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| 51 | 51 | | SECTION 4. Not later than January 1, 2022, the board of |
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| 52 | 52 | | trustees of the Employees Retirement System of Texas and each plan |
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| 53 | 53 | | administrator responsible for administering a deferred |
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| 54 | 54 | | compensation plan under Subchapter C or D, Chapter 609, Government |
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| 55 | 55 | | Code, as amended by this Act, shall ensure the respective plans |
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| 56 | 56 | | offer qualified investment products that comply with Sections |
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| 57 | 57 | | 609.5045 and 609.7075, Government Code, as added by this Act, as |
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| 58 | 58 | | applicable. |
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| 59 | 59 | | SECTION 5. This Act takes effect September 1, 2021. |
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