| 1 | 1 | | By: Parker S.B. No. 2146 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to oversight by the comptroller of financial institution |
|---|
| 7 | 7 | | divestments from certain industries. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Subchapter B, Chapter 403, Government Code, is |
|---|
| 10 | 10 | | amended by adding Section 403.0302 to read as follows: |
|---|
| 11 | 11 | | Sec. 403.0302. OVERSIGHT OF DIVESTMENTS IN CERTAIN |
|---|
| 12 | 12 | | INDUSTRIES. (a) The comptroller shall require a financial |
|---|
| 13 | 13 | | institution that operates a mutual fund to periodically submit a |
|---|
| 14 | 14 | | statement to the comptroller stating whether the financial |
|---|
| 15 | 15 | | institution has divested or intends to divest from the mutual fund |
|---|
| 16 | 16 | | investments in a company that engages in the exploration, |
|---|
| 17 | 17 | | production, utilization, transportation, sale, or manufacturing of |
|---|
| 18 | 18 | | fossil fuel-based energy. |
|---|
| 19 | 19 | | (b) The comptroller shall adopt rules to: |
|---|
| 20 | 20 | | (1) prescribe the requirements for a financial |
|---|
| 21 | 21 | | institution to comply with the requirements of Subsection (a); |
|---|
| 22 | 22 | | (2) require a financial institution that chooses to |
|---|
| 23 | 23 | | divest from investments described by Subsection (a) to place a mark |
|---|
| 24 | 24 | | prescribed by the comptroller on prospectus documents that |
|---|
| 25 | 25 | | signifies the institution's choice to divest; and |
|---|
| 26 | 26 | | (3) provide a penalty for financial institutions that |
|---|
| 27 | 27 | | fail to submit a statement required under Subsection (a). |
|---|
| 28 | 28 | | SECTION 2. The comptroller shall adopt rules as required by |
|---|
| 29 | 29 | | Section 403.0302, Government Code, as added by this Act, not later |
|---|
| 30 | 30 | | than January 1, 2024. |
|---|
| 31 | 31 | | SECTION 3. This Act takes effect September 1, 2023. |
|---|