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A BILL TO BE ENTITLED
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AN ACT
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relating to authorized investments for governmental entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2256.003, Government Code, is amended by |
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adding a new Subsection (d) to read as follows: |
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Sec. 2256.003. Authority to Invest Funds; Entities Subject |
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to This Chapter |
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(a) Each governing body of the following entities may |
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purchase, sell, and invest its funds and funds under its control in |
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investments authorized under this subchapter in compliance with |
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investment policies approved by the governing body and according to |
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the standard of care prescribed by Section 2256.006: |
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(1) a local government; |
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(2) a state agency; |
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(3) a nonprofit corporation acting on behalf of a |
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local government or a state agency; or |
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(4) an investment pool acting on behalf of two or more |
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local governments, state agencies, or a combination of those |
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entities. |
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(b) In the exercise of its powers under Subsection (a), the |
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governing body of an investing entity may contract with an |
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investment management firm registered under the Investment |
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Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or with the |
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State Securities Board to provide for the investment and management |
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of its public funds or other funds under its control. A contract |
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made under authority of this subsection may not be for a term longer |
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than two years. A renewal or extension of the contract must be made |
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by the governing body of the investing entity by order, ordinance, |
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or resolution. |
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(c) This chapter does not prohibit an investing entity or |
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investment officer from using the entity's employees or the |
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services of a contractor of the entity to aid the investment officer |
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in the execution of the officer's duties under this chapter. |
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(d) Notwithstanding any other law, each governing body must |
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invest a minimum five percent of their total portfolio in |
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Texas-based, publicly-traded corporations. |
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SECTION 2. EFFECTIVE DATE. This Act takes effect September |
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1, 2011. |