1-1 By: Duncan S.B. No. 983
1-2 (In the Senate - Filed February 28, 2001; March 1, 2001, read
1-3 first time and referred to Committee on Finance; April 4, 2001,
1-4 reported favorably by the following vote: Yeas 11, Nays 0;
1-5 April 4, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the authority of the boards of trustees of certain
1-9 state retirement systems to contract with professional investment
1-10 managers.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 815.301, Government Code, is amended by
1-13 amending Subsections (b) and (c) and adding Subsection (g) to read
1-14 as follows:
1-15 (b) The board of trustees may delegate its authority under
1-16 Subsection (a) to the executive director. The board of trustees,
1-17 [or] the executive director, or an investment manager with whom the
1-18 board contracts under Subsection (c) may, under the standard of
1-19 care provided by Section 815.307, invest and reinvest any of the
1-20 retirement system's assets and may commingle assets of the trust
1-21 fund and the law enforcement and custodial officer supplemental
1-22 retirement fund with the assets of the Judicial Retirement System
1-23 of Texas Plan Two for investment purposes, as long as proportionate
1-24 ownership records are maintained and credited. Investments may
1-25 include home office facilities, including land, equipment, and
1-26 office building, used in administering the retirement system.
1-27 (c) The board of trustees may contract with private
1-28 professional investment managers to invest on behalf of the board
1-29 or assist the board in investing the assets of the retirement
1-30 system.
1-31 (g) In a contract entered into under Subsection (c) for
1-32 investing system assets on behalf of the board of trustees, the
1-33 board shall specify any policies, requirements, or restrictions,
1-34 including criteria for determining the quality of investments and
1-35 for the use of standard rating services, that the board adopts for
1-36 investments of the system. The board at any time may, and at
1-37 frequent intervals shall, monitor the investments made by the
1-38 investment manager and may contract for professional evaluation
1-39 services to fulfill this requirement.
1-40 SECTION 2. Section 825.301, Government Code, is amended by
1-41 amending Subsection (b) and adding Subsection (f) to read as
1-42 follows:
1-43 (b) The board of trustees may contract with private
1-44 professional investment managers to invest on behalf of the board
1-45 or assist the board in investing the assets of the retirement
1-46 system.
1-47 (f) In a contract entered into under Subsection (b) for
1-48 investing system assets on behalf of the board of trustees, the
1-49 board shall specify any policies, requirements, or restrictions,
1-50 including criteria for determining the quality of investments and
1-51 for the use of standard rating services, that the board adopts for
1-52 investments of the system. The board at any time may, and at
1-53 frequent intervals shall, monitor the investments made by the
1-54 investment manager and may contract for professional evaluation
1-55 services to fulfill this requirement.
1-56 SECTION 3. Section 840.301, Government Code, is amended by
1-57 adding Subsection (d) to read as follows:
1-58 (d) The board of trustees may contract with private
1-59 professional investment managers for the purposes and in the manner
1-60 provided by Section 815.301 for the investment of assets under
1-61 Chapter 815.
1-62 SECTION 4. This Act takes effect immediately if it receives
1-63 a vote of two-thirds of all the members elected to each house, as
1-64 provided by Section 39, Article III, Texas Constitution. If this
2-1 Act does not receive the vote necessary for immediate effect, this
2-2 Act takes effect September 1, 2001.
2-3 * * * * *