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.