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