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AN ACT
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relating to certain investment authority of the Teacher Retirement |
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System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 825.301(a-1) and (a-2), Government |
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Code, are amended to read as follows: |
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(a-1) This subsection expires September 1, 2019 [2012], and |
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applies to the investment and reinvestment of assets of the |
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retirement system only if the investment or reinvestment is made |
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before September 1, 2019 [2012]. In addition to any investment or |
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reinvestment authorized by Subsection (a), the board of trustees |
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may buy and sell the following, only to efficiently manage and |
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reduce the risk of the overall investment portfolio: |
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(1) futures contracts; |
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(2) options; |
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(3) options on futures contracts; |
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(4) forward contracts; |
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(5) swap contracts, including swap contracts with |
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embedded options; |
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(6) any instrument or contract intended to manage |
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transaction or currency exchange risk in purchasing, selling, or |
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holding investments; and |
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(7) any other instrument commonly used by |
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institutional investors to manage institutional investment |
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portfolios. |
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(a-2) The board of trustees may delegate investment |
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authority and contract with one or more private professional |
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investment managers for investment and management of not more than |
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30 percent of the total assets held in trust by the retirement |
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system. In a contract made under this subsection, the board of |
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trustees shall specify any applicable policies, requirements, or |
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restrictions, including criteria for determining the quality of |
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investments or the use of standard rating services, that the board |
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of trustees adopts for investments of the system. The board of |
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trustees may not contract under this subsection for investment and |
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management services to be performed on or after September 1, 2019 |
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[2012]. |
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SECTION 2. Section 825.3012, Government Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) Notwithstanding Subsection (b) of this section and |
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any provision of Section 825.301, before September 1, 2019, not |
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more than 10 percent of the value of the total investment portfolio |
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of the retirement system may be invested in hedge funds. This |
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subsection expires September 1, 2019. |
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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, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1061 was passed by the House on April |
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26, 2011, by the following vote: Yeas 147, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 1061 on May 16, 2011, by the following vote: Yeas 141, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1061 was passed by the Senate, with |
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amendments, on May 10, 2011, by the following vote: Yeas 30, Nays |
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1 |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |