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A BILL TO BE ENTITLED
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AN ACT
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relating to reporting on investments by certain public retirement |
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systems. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 802.002(a), Government Code, is amended |
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to read as follows: |
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(a) Except as provided by Subsection (b), the Employees |
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Retirement System of Texas, the Teacher Retirement System of Texas, |
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the Texas County and District Retirement System, the Texas |
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Municipal Retirement System, and the Judicial Retirement System of |
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Texas Plan Two are exempt from Sections 802.101(a), 802.101(b), |
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802.101(d), 802.102, 802.103(a), 802.103(b), 802.109, 802.2015, |
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802.2016, 802.202, 802.203, 802.204, 802.205, 802.206, and |
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802.207. The Judicial Retirement System of Texas Plan One is exempt |
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from all of Subchapters B and C except Sections 802.104 and 802.105. |
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The optional retirement program governed by Chapter 830 is exempt |
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from all of Subchapters B and C except Section 802.106. |
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SECTION 2. Section 802.108, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) For purposes of determining investment returns under |
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this section, a public retirement system may not report all |
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investment income, including any interest, dividends, capital |
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gains, or other income, earned from an investment instrument in a |
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single year if the investment instrument is held for a period beyond |
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that single year. A public retirement system shall report |
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investment income earned from an investment instrument in the year |
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in which the income is earned. |
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SECTION 3. Subchapter B, Chapter 802, Government Code, is |
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amended by adding Section 802.109 to read as follows: |
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Sec. 802.109. INVESTMENT PRACTICES AND PERFORMANCE |
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REPORTS. (a) At least once every four years, a public retirement |
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system shall select an independent firm with substantial experience |
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in evaluating institutional investment practices and performance |
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to evaluate the retirement system's investment practices and |
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performance. |
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(b) A public retirement system shall pay the costs of each |
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evaluation of the system under this section. |
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(c) A report of an evaluation under this section must be |
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filed with the governing body of the public retirement system and |
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the board. The report must include a listing of all commissions and |
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fees paid by the public retirement system during the reporting |
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period for the sale, purchase, or management of system assets. |
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SECTION 4. This Act takes effect September 1, 2017. |