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A BILL TO BE ENTITLED
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AN ACT
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relating to investments in Texas businesses by certain public |
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retirement systems in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 802, Government Code, is |
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amended by adding Section 802.2025 to read as follows: |
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Sec. 802.2025. INVESTMENT IN TEXAS BUSINESSES. (a) In this |
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section, "Texas business" means a business: |
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(1) formed or organized under the laws of this state; |
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(2) that has a principal place of business in this |
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state; or |
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(3) that has an established physical presence in and |
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employs residents of this state. |
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(b) This section applies to a public retirement system that |
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provides service retirement, disability retirement, or death |
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benefits for officers or employees of this state or of an agency or |
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instrumentality of this state. |
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(c) All other material matters being equal, in investing the |
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assets of the system, the governing body of a public retirement |
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system or the investment manager or other person with which the |
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governing body contracts to provide professional investment |
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management services shall give preference to Texas businesses. |
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(d) This section does not affect the fiduciary duty of a |
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public retirement system under Section 67, Article XVI, Texas |
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Constitution, or other law. |
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SECTION 2. Section 802.2025, Government Code, as added by |
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this Act, applies only to an investment made on or after the |
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effective date of this Act. An investment made before the effective |
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date of this Act is governed by the law as it existed on the date of |
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the investment, and that law is continued in effect for that |
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purpose. |
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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. |