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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring that deferred compensation plans provided by |
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state agencies or institutions of higher education offer certain |
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types of qualified investment products to employees participating |
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in those plans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 609.001, Government Code, is amended by |
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adding Subdivisions (1-a) and (8-a) to read as follows: |
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(1-a) "Chinese company" means a company that is |
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headquartered in China or is a wholly owned subsidiary or |
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majority-owned subsidiary of a company headquartered in China, |
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regardless of whether: |
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(A) the company's or its parent company's |
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securities are publicly traded; or |
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(B) the company or its parent company is listed |
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as a Chinese company on a public stock exchange. |
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(8-a) "Texas company" means a company: |
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(A) formed or organized under the laws of this |
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state; |
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(B) that has a principal place of business in |
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this state; or |
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(C) that has an established physical presence in |
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and employs residents of this state. |
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SECTION 2. Subchapter C, Chapter 609, Government Code, is |
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amended by adding Section 609.5045 to read as follows: |
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Sec. 609.5045. CERTAIN INVESTMENT PRODUCT OFFERINGS |
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REQUIRED. The board of trustees and the plan administrator shall |
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ensure that at least one of each of the following types of qualified |
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investment products is offered to employees participating in the |
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deferred compensation plan: |
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(1) a qualified investment product that excludes |
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investment in Chinese companies; and |
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(2) a qualified investment product that allows for at |
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least some investment in Texas companies. |
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SECTION 3. Subchapter D, Chapter 609, Government Code, is |
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amended by adding Section 609.7075 to read as follows: |
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Sec. 609.7075. CERTAIN INVESTMENT PRODUCT OFFERINGS |
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REQUIRED. The board of trustees and the plan administrator shall |
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ensure that at least one of each of the following types of qualified |
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investment products is offered to employees participating in the |
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deferred compensation plan: |
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(1) a qualified investment product that excludes |
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investment in Chinese companies; and |
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(2) a qualified investment product that allows for at |
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least some investment in Texas companies. |
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SECTION 4. Not later than January 1, 2022, the board of |
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trustees of the Employees Retirement System of Texas and each plan |
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administrator responsible for administering a deferred |
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compensation plan under Subchapter C or D, Chapter 609, Government |
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Code, as amended by this Act, shall ensure the respective plans |
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offer qualified investment products that comply with Sections |
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609.5045 and 609.7075, Government Code, as added by this Act, as |
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applicable. |
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SECTION 5. This Act takes effect September 1, 2021. |