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A BILL TO BE ENTITLED
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AN ACT
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relating to restrictions on investments by certain public |
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retirement systems of this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 802, Government Code, is |
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amended by adding Section 802.2025 to read as follows: |
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Sec. 802.2025. RESTRICTIONS ON INVESTMENTS. (a) In this |
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section: |
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(1) "Facility" has the meaning assigned by Section |
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227.001, Transportation Code. |
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(2) "Private toll road facility" means a facility or |
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combination of facilities financed, developed, designed, |
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constructed, maintained, repaired, or operated by a private entity |
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under agreement with the Texas Department of Transportation. |
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(b) This section applies to only the following public |
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retirement systems: |
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(1) the Employees Retirement System of Texas; |
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(2) the Judicial Retirement System of Texas Plan Two; |
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(3) the Teacher Retirement System of Texas; |
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(4) the Texas County and District Retirement System; |
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and |
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(5) the Texas Municipal Retirement System. |
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(c) A public retirement system may not invest money the |
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retirement system manages for the retirement and other benefits of |
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public employee members, retirees, and their beneficiaries in a |
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private toll road facility, including a facility on the Trans-Texas |
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Corridor under Chapter 227, Transportation Code, either directly or |
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indirectly through investment in a private entity's equities or |
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obligations. |
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(d) The restriction under Subsection (c) does not affect the |
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fiduciary duty of a public retirement system under Section 67, |
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Article XVI, Texas Constitution, or other law. |
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SECTION 2. Section 802.2025, Government Code, as added by |
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this Act, applies only to an investment made on or after the |
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effective date of this Act. An investment made before the effective |
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date of this Act is governed by the law as it existed on the date of |
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the investment, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |