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A JOINT RESOLUTION
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proposing a constitutional amendment directing state and local |
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governmental entities that invest public funds to make investments |
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that will benefit the Texas economy to the extent that it is |
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possible to do so under a prudent investment strategy. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article XVI, Texas Constitution, is amended by |
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adding Section 73 to read as follows: |
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Sec. 73. (a) In this section: |
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(1) "Local governmental entity" means a city, county, |
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school district, conservation and reclamation district, other |
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special purpose district, or any other political subdivision of |
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this state, including a local governmental entity or division of a |
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local governmental entity responsible for retirement funds. |
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(2) "Public funds" includes: |
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(A) the assets of a retirement plan or system; |
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and |
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(B) funds dedicated by this constitution or for |
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which an investment standard is prescribed by this constitution. |
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(3) "State governmental entity" means a board, |
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commission, office, institution, or other agency in any branch of |
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state government, including an institution of higher education or a |
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retirement system. |
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(b) Each state or local governmental entity that invests |
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public funds and each entity that invests public funds for a state |
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or local governmental entity shall determine, for each investment |
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of public funds, whether it is reasonably possible to make an |
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investment that will probably provide a benefit to the Texas |
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economy and that is an equally prudent investment in comparison to |
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alternative investments that would probably provide no benefit or |
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insignificant benefits to the Texas economy. If the entity |
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determines that it is reasonably possible to make such an equally |
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prudent investment that will probably provide a benefit to the |
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Texas economy, the entity shall invest the public funds in that |
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manner. |
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SECTION 2. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 6, 2007. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment directing state and |
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local governmental entities that invest public funds to make |
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investments that will benefit the Texas economy to the extent that |
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it is possible to do so under a prudent investment strategy." |