Bill Text: TX HB3549 | 2011-2012 | 82nd Legislature | Introduced

---

Bill Title: Relating to the investment of assets under the management and control of the Teacher Retirement System of Texas.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2011-03-22 - Referred to Pensions, Investments & Financial Services [HB3549 Detail]

Download: Texas-2011-HB3549-Introduced.html

---

82R11394 TRH-F
By: Alvarado H.B. No. 3549

A BILL TO BE ENTITLED
AN ACT
relating to the investment of assets under the management and
control of the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 825.301, Government Code, is amended by
amending Subsection (e) and adding Subsections (f), (g), and (h) to
read as follows:
(e) The board of trustees shall develop a written investment
strategy [objectives] concerning the investment of the assets of
the retirement system. The strategy must provide [objectives may
address] desired rates of return by asset class, risks involved,
investment time frames, and any other relevant considerations.
(f) In awarding investment contracts to private
professional investment managers under Subsection (a-2) or in
otherwise seeking or acquiring private financial services, the
board of trustees shall:
(1) make a good faith effort to award contracts to or
to seek or acquire services from qualified emerging fund managers;
and
(2) adhere to a standards-based statewide procurement
process in awarding each contract.
(g) For purposes of Subsection (f):
(1) "Emerging fund manager" means a private
professional investment manager that manages assets of not more
than $5 billion.
(2) "Private financial services" includes pension
fund management, consulting, investment advising, brokerage
services, hedge fund management, private equity fund management,
and real estate investment.
(h) The board of trustees shall submit a report not later
than the 25th day of the month following the end of each fiscal year
to the governor, the lieutenant governor, the speaker of the house
of representatives, the executive director of the State Pension
Review Board, the appropriate oversight committees of the house and
senate, and the Legislative Budget Board. The report must include
the following:
(1) the current end-of-fiscal-year market value of the
trust fund;
(2) the asset allocations of the trust fund expressed
in percentages of stocks, fixed income, cash, private equity, hedge
funds, real estate, or other financial investments;
(3) the investment performance of the trust fund
utilizing accepted industry measurement standards, by asset class
and by investment manager; and
(4) the amount of investment fees, by asset class and
by external investment manager.
SECTION 2. The first report required by Section 825.301(h),
Government Code, as added by this Act, must be submitted by the
board of trustees of the Teacher Retirement System of Texas not
later than December 31, 2011.
SECTION 3. This Act takes effect September 1, 2011.