Bill not drafted by TLC or Senate E&E. Line and page numbers may not match official copy. By Williams H.B. No. 2937 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to delegation and portfolio management of the Teacher 1-3 Retirement System of Texas. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Section 825, Government Code, is 1-6 amended by adding Section 825.1031 to read as follows: 1-7 Sec. 825.1031. DELEGATION AND PORTFOLIO MANAGEMENT. (a) In 1-8 administering the retirement system trust and investing its asset, 1-9 the board of trustees may delegate responsibility, discretion, and 1-10 authority to employees, asset managers, custodians and other agents 1-11 and entities in the manner that a prudent person would delegate 1-12 under the circumstances. 1-13 (b) The board of trustees shall act with prudence in 1-14 deciding whether and how to delegate and in the selection and 1-15 supervision of those to whom it has delegated. The board of 1-16 trustees must itself establish the retirement system's investment 1-17 objectives and programs, including asset allocations. 1-18 (c) Whether a trustee has exercised prudence with respect to 1-19 an investment decision shall be determined not in isolation but in 1-20 the context of the trust portfolio and as a part of an overall 1-21 investment strategy, which should incorporate risk and return 1-22 objectives reasonably suited to the trust. 1-23 SECTION 2. This Act takes effect September 1, 1997. 1-24 SECTION 3. The importance of this legislation and the 2-1 crowded condition of the calendars in both houses create an 2-2 emergency and an imperative public necessity that the 2-3 constitutional rule requiring bills to be read on three several 2-4 days in each house be suspended, and this rule is hereby suspended.