Bill Text: TX HB1061 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to certain investment authority of the Teacher Retirement System of Texas.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-06-17 - Effective immediately [HB1061 Detail]
Download: Texas-2011-HB1061-Enrolled.html
H.B. No. 1061 |
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relating to certain investment authority of the Teacher Retirement | ||
System of Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 825.301(a-1) and (a-2), Government | ||
Code, are amended to read as follows: | ||
(a-1) This subsection expires September 1, 2019 [ |
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applies to the investment and reinvestment of assets of the | ||
retirement system only if the investment or reinvestment is made | ||
before September 1, 2019 [ |
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reinvestment authorized by Subsection (a), the board of trustees | ||
may buy and sell the following, only to efficiently manage and | ||
reduce the risk of the overall investment portfolio: | ||
(1) futures contracts; | ||
(2) options; | ||
(3) options on futures contracts; | ||
(4) forward contracts; | ||
(5) swap contracts, including swap contracts with | ||
embedded options; | ||
(6) any instrument or contract intended to manage | ||
transaction or currency exchange risk in purchasing, selling, or | ||
holding investments; and | ||
(7) any other instrument commonly used by | ||
institutional investors to manage institutional investment | ||
portfolios. | ||
(a-2) The board of trustees may delegate investment | ||
authority and contract with one or more private professional | ||
investment managers for investment and management of not more than | ||
30 percent of the total assets held in trust by the retirement | ||
system. In a contract made under this subsection, the board of | ||
trustees shall specify any applicable policies, requirements, or | ||
restrictions, including criteria for determining the quality of | ||
investments or the use of standard rating services, that the board | ||
of trustees adopts for investments of the system. The board of | ||
trustees may not contract under this subsection for investment and | ||
management services to be performed on or after September 1, 2019 | ||
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SECTION 2. Section 825.3012, Government Code, is amended by | ||
adding Subsection (b-1) to read as follows: | ||
(b-1) Notwithstanding Subsection (b) of this section and | ||
any provision of Section 825.301, before September 1, 2019, not | ||
more than 10 percent of the value of the total investment portfolio | ||
of the retirement system may be invested in hedge funds. This | ||
subsection expires September 1, 2019. | ||
SECTION 3. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2011. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 1061 was passed by the House on April | ||
26, 2011, by the following vote: Yeas 147, Nays 0, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 1061 on May 16, 2011, by the following vote: Yeas 141, Nays 0, | ||
2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 1061 was passed by the Senate, with | ||
amendments, on May 10, 2011, by the following vote: Yeas 30, Nays | ||
1 | ||
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______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |