By Davila                                             H.B. No. 1500
       74R2753 RJA-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to use of state funds for certain investments.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 404.024, Government Code, is amended by
    1-5  adding Subsection (l) to read as follows:
    1-6        (l)  The treasurer may not use state funds to invest in or
    1-7  purchase securities, including obligations, of a private
    1-8  corporation or other private business entity that manufactures,
    1-9  distributes, or sells cigarettes or a tobacco product.  In this
   1-10  subsection, "cigarette" and "tobacco product" have the meanings
   1-11  assigned those terms by Sections 154.001 and 155.001, Tax Code,
   1-12  respectively.
   1-13        SECTION 2.  Subchapter A, Chapter 2256, Government Code, is
   1-14  amended by adding Section 2256.018 to read as follows:
   1-15        Sec. 2256.018.  UNAUTHORIZED INVESTMENT.  The state or an
   1-16  entity of state government, including a department, commission,
   1-17  board, or office, may not use state funds to invest in or purchase
   1-18  securities, including obligations, of a private corporation or
   1-19  other private business entity that manufactures, distributes, or
   1-20  sells cigarettes or a tobacco product.  In this section,
   1-21  "cigarette" and "tobacco product" have the meanings assigned those
   1-22  terms by Sections 154.001 and 155.001, Tax Code, respectively.
   1-23        SECTION 3.  Section 845.302, Government Code, is amended by
   1-24  adding Subsection (d) to read as follows:
    2-1        (d)  The board may not use state funds to invest in or
    2-2  purchase securities, including obligations, of a private
    2-3  corporation or other private business entity that manufactures,
    2-4  distributes, or sells cigarettes or a tobacco product.  In this
    2-5  subsection, "cigarette" and "tobacco product" have the meanings
    2-6  assigned those terms by Sections 154.001 and 155.001, Tax Code,
    2-7  respectively.
    2-8        SECTION 4.  Section 855.302, Government Code, is amended by
    2-9  adding Subsection (c) to read as follows:
   2-10        (c)  The board may not use state funds to invest in or
   2-11  purchase securities, including obligations, of a private
   2-12  corporation or other private business entity that manufactures,
   2-13  distributes, or sells cigarettes or a tobacco product.  In this
   2-14  subsection, "cigarette" and "tobacco product" have the meanings
   2-15  assigned those terms by Sections 154.001 and 155.001, Tax Code,
   2-16  respectively.
   2-17        SECTION 5.  A governmental entity or retirement system that
   2-18  owns an investment prohibited by this Act shall divest the
   2-19  investment as soon as is reasonable and practical considering
   2-20  protection of capital, but not later than January 1, 1997.
   2-21        SECTION 6.  The importance of this legislation and the
   2-22  crowded condition of the calendars in both houses create an
   2-23  emergency and an imperative public necessity that the
   2-24  constitutional rule requiring bills to be read on three several
   2-25  days in each house be suspended, and this rule is hereby suspended.