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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting certain contracts for investment services |
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for state funds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 10, Government Code, is |
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amended by adding Chapter 2267 to read as follows: |
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CHAPTER 2267. CERTAIN CONTRACTS FOR INVESTMENT SERVICES FOR STATE |
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FUNDS |
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Sec. 2267.001. DEFINITION. In this chapter, "state |
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investment fund" means any investment fund that is investing public |
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funds and that is administered by or under a contract with any |
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entity of state government, including a fund: |
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(1) established by statute or by the Texas |
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Constitution; or |
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(2) administered by or under a contract with: |
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(A) a public retirement system, as defined by |
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Section 802.001, that provides service retirement, disability |
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retirement, or death benefits for officers or employees of the |
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state; |
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(B) an institution of higher education, as |
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defined by Section 61.003, Education Code; or |
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(C) any other entity that is part of state |
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government. |
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Sec. 2267.002. PROHIBITION ON CERTAIN CONTRACTS FOR |
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INVESTMENT SERVICES. The entity of state government responsible |
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for the administration of a state investment fund may not enter into |
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a contract for professional investment management services under |
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which the provider of the services receives a bonus, reward, or |
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other incentive payment based on the performance of an investment |
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made or recommended by the provider. |
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SECTION 2. The change in law made by this Act applies only |
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to a contract entered into or renewed on or after the effective date |
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of this Act. A contract entered into or renewed before the |
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effective date of this Act is governed by the law in effect |
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immediately before that date, and that law is continued in effect |
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for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |