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A BILL TO BE ENTITLED
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AN ACT
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relating to contracting with emerging fund managers by the State |
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Board of Education for investment of the permanent school fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 43.005, Education Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) In awarding contracts to private professional |
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investment managers under Subsection (a) or otherwise acquiring |
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private financial services, the State Board of Education shall make |
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a good faith effort to award contracts to or acquire services from |
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qualified emerging fund managers. For purposes of this subsection: |
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(1) "Emerging fund manager" means a private |
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professional investment manager that manages assets of not more |
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than $2 billion. |
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(2) "Private financial services" includes |
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consulting, investment advising, brokerage services, hedge fund |
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management, private equity fund management, and real estate |
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investment. |
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SECTION 2. 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. |