By Davila                                       H.B. No. 3122

      75R7338 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 (j) to read as follows:

 1-6           (j)  The comptroller 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 meaning

1-11     assigned by Sections 154.001 and 155.001, Tax Code, respectively.

1-12           SECTION 2.  Subchapter B, Chapter 2256, Government Code, is

1-13     amended by adding Section 2256.060 to read as follows:

1-14           Sec. 2256.060.  UNAUTHORIZED INVESTMENT.  The state or an

1-15     entity of state government, including a department, commission,

1-16     board, office, or  institution of higher education as defined by

1-17     Section 61.003, Education Code, may not use state funds to invest

1-18     in or purchase securities, including obligations, of a private

1-19     corporation or other private business entity that manufactures,

1-20     distributes, or sells cigarettes or a tobacco product.  In this

1-21     section, "cigarette" and "tobacco product" have the meaning

1-22     assigned by Sections 154.001 and 155.001, Tax Code, respectively.

1-23           SECTION 3.  Section 845.301, Government Code, is amended by

1-24     adding Subsection (f) to read as follows:

 2-1           (f)  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 meaning

 2-6     assigned by Sections 154.001 and 155.001, Tax Code, respectively.

 2-7           SECTION 4.  Section 855.302, Government Code, is amended by

 2-8     adding Subsection (c) to read as follows:

 2-9           (c)  The board may not use state funds to invest in or

2-10     purchase securities, including obligations, of a private

2-11     corporation or other private  business entity that manufactures,

2-12     distributes, or sells cigarettes or a tobacco product.  In this

2-13     subsection, "cigarette" and "tobacco product" have the meaning

2-14     assigned by Sections 154.001 and 155.001, Tax Code, respectively.

2-15           SECTION 5.  A governmental entity or retirement system that

2-16     owns an investment prohibited by this Act shall divest the

2-17     investment as soon as is reasonable and practical considering

2-18     protection of capital, but not later than January 1, 1999.

2-19           SECTION 6.  The importance of this legislation and the

2-20     crowded condition of the calendars in both houses create an

2-21     emergency and an imperative public necessity that the

2-22     constitutional rule requiring bills to be read on three several

2-23     days in each house be suspended, and this rule is hereby suspended.