79R2260 KEG-D


By:  Burnam, Giddings, McClendon, Van Arsdale,                    H.B. No. 815
 
    Veasey, et al.                                                           



A BILL TO BE ENTITLED

AN ACT

relating to a prohibition on the investment of state funds in 
private business entities doing business in Sudan.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle F, Title 10, Government Code, is 
amended by adding Chapter 2264 to read as follows:
	CHAPTER 2264. PROHIBITION ON INVESTMENT IN SUDAN
	Sec. 2264.001.  APPLICABILITY OF CHAPTER. (a)  This chapter 
applies in connection with the management or investment of state 
funds managed or invested:
		(1)  under the Texas Constitution or other law, 
including Chapters 404 and 2256; and
		(2)  by or for:                                                        
			(A)  a public retirement system as defined by 
Section 802.001 that provides service retirement, disability 
retirement, or death benefits for officers or employees of the 
state;
			(B)  an institution of higher education as defined 
by Section 61.003, Education Code; or
			(C)  another entity that is part of state 
government and that manages or invests state funds or for which 
state funds are managed or invested.
	(b)  This chapter applies in connection with the management 
or investment of state funds without regard to whether the funds are 
held in the state treasury.
	(c)  This chapter does not apply to the extent that an 
investment standard prescribed by the Texas Constitution prohibits 
the legislature from restricting the investment of a fund or the 
investment discretion of an entity responsible for the management 
or investment of a fund.
	Sec. 2264.002.  PROHIBITION ON INVESTMENT IN SUDAN.  State 
funds may not be invested in equities or obligations of a private 
corporation or other private business entity doing business in the 
Democratic Republic of Sudan.
	SECTION 2.  Chapter 2264, Government Code, as added by this 
Act, applies only to an investment made by or for a state 
governmental entity on or after the effective date of this Act.
	SECTION 3.  This Act takes effect September 1, 2005.