By Duncan S.B. No. 983
77R2316 SMJ-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of the boards of trustees of certain
1-3 state retirement systems to contract with professional investment
1-4 managers.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 815.301, Government Code, is amended by
1-7 amending Subsections (b) and (c) and adding Subsection (g) to read
1-8 as follows:
1-9 (b) The board of trustees may delegate its authority under
1-10 Subsection (a) to the executive director. The board of trustees,
1-11 [or] the executive director, or an investment manager with whom the
1-12 board contracts under Subsection (c) may, under the standard of
1-13 care provided by Section 815.307, invest and reinvest any of the
1-14 retirement system's assets and may commingle assets of the trust
1-15 fund and the law enforcement and custodial officer supplemental
1-16 retirement fund with the assets of the Judicial Retirement System
1-17 of Texas Plan Two for investment purposes, as long as proportionate
1-18 ownership records are maintained and credited. Investments may
1-19 include home office facilities, including land, equipment, and
1-20 office building, used in administering the retirement system.
1-21 (c) The board of trustees may contract with private
1-22 professional investment managers to invest on behalf of the board
1-23 or assist the board in investing the assets of the retirement
1-24 system.
2-1 (g) In a contract entered into under Subsection (c) for
2-2 investing system assets on behalf of the board of trustees, the
2-3 board shall specify any policies, requirements, or restrictions,
2-4 including criteria for determining the quality of investments and
2-5 for the use of standard rating services, that the board adopts for
2-6 investments of the system. The board at any time may, and at
2-7 frequent intervals shall, monitor the investments made by the
2-8 investment manager and may contract for professional evaluation
2-9 services to fulfill this requirement.
2-10 SECTION 2. Section 825.301, Government Code, is amended by
2-11 amending Subsection (b) and adding Subsection (f) to read as
2-12 follows:
2-13 (b) The board of trustees may contract with private
2-14 professional investment managers to invest on behalf of the board
2-15 or assist the board in investing the assets of the retirement
2-16 system.
2-17 (f) In a contract entered into under Subsection (c) for
2-18 investing system assets on behalf of the board of trustees, the
2-19 board shall specify any policies, requirements, or restrictions,
2-20 including criteria for determining the quality of investments and
2-21 for the use of standard rating services, that the board adopts for
2-22 investments of the system. The board at any time may, and at
2-23 frequent intervals shall, monitor the investments made by the
2-24 investment manager and may contract for professional evaluation
2-25 services to fulfill this requirement.
2-26 SECTION 3. Section 840.301, Government Code, is amended by
2-27 adding Subsection (d) to read as follows:
3-1 (d) The board of trustees may contract with private
3-2 professional investment managers for the purposes and in the manner
3-3 provided by Section 815.301 for the investment of assets under
3-4 Chapter 815.
3-5 SECTION 4. This Act takes effect immediately if it receives
3-6 a vote of two-thirds of all the members elected to each house, as
3-7 provided by Section 39, Article III, Texas Constitution. If this
3-8 Act does not receive the vote necessary for immediate effect, this
3-9 Act takes effect September 1, 2001.