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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting the investment of assets of the Employees |
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Retirement System of Texas and the Teacher Retirement System of |
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Texas in certain foreign business entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 815, Government Code, is |
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amended by adding Section 815.3013 to read as follows: |
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Sec. 815.3013. PROHIBITED INVESTMENTS IN CERTAIN FOREIGN |
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ENTITIES. (a) In this section: |
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(1) "Domestic" means the United States or a state of |
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the United States. |
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(2) "Foreign business entity" means a business entity |
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formed under, and the internal affairs of which are governed by, the |
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laws of a foreign jurisdiction. |
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(3) "Foreign jurisdiction" means a country or other |
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jurisdiction that is not the United States or a state of the United |
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States. |
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(b) The board of trustees, or any person to whom the board |
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delegates its investment authority, may not invest the retirement |
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system's assets in securities issued by a foreign business entity |
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that does not adhere to or is not subject to generally accepted |
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accounting, audit, or transparency standards similar to the |
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standards applicable to comparable domestic business entities, as |
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determined by the comptroller. |
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(c) The comptroller shall adopt rules necessary to |
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implement this section. |
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SECTION 2. Subchapter D, Chapter 825, Government Code, is |
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amended by adding Section 825.3013 to read as follows: |
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Sec. 825.3013. PROHIBITED INVESTMENTS IN CERTAIN FOREIGN |
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ENTITIES. (a) In this section: |
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(1) "Domestic" means the United States or a state of |
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the United States. |
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(2) "Foreign business entity" means a business entity |
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formed under, and the internal affairs of which are governed by, the |
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laws of a foreign jurisdiction. |
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(3) "Foreign jurisdiction" means a country or other |
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jurisdiction that is not the United States or a state of the United |
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States. |
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(b) The board of trustees, or any person to whom the board |
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delegates its investment authority, may not invest the retirement |
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system's assets in securities issued by a foreign business entity |
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that does not adhere to or is not subject to generally accepted |
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accounting, audit, or transparency standards similar to the |
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standards applicable to comparable domestic business entities, as |
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determined by the comptroller. |
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(c) The comptroller shall adopt rules necessary to |
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implement this section. |
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SECTION 3. This Act takes effect September 1, 2022. |