Amend SB 1447 by inserting the following new SECTION to the 
bill, numbered appropriately, and renumbering SECTIONS of the bill 
accordingly:
	SECTION ___.  Subchapter D, Chapter 825, Government Code, is 
amended by adding Section 825.3012 to read as follows:
	Sec. 825.3012.  INVESTMENT IN CERTAIN HEDGE FUNDS LIMITED. 
(a) For the purposes of this section, "hedge fund" means a private 
investment vehicle that:
		(1)  is not registered as an investment company;                       
		(2)  issues securities only to accredited investors or 
qualified purchasers under an exemption from registration; and
		(3)  engages primarily in the strategic trading of 
securities and other financial instruments.
	(b)  Notwithstanding any provision of Section 825.301, not 
more than five percent of the value of the total investment 
portfolio of the retirement system may be invested in hedge funds.
	(c)  The percentage of the value described by Subsection (b) 
is determined by reference to the value of the total investment 
portfolio of the retirement system as of the date the retirement 
system executes the subscription documents for each hedge fund 
investment.