Bill Text: TX HB791 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to prohibiting certain contracts for investment services for state funds.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-02-23 - Referred to Pensions, Investments & Financial Services [HB791 Detail]
Download: Texas-2011-HB791-Introduced.html
| 82R3049 KJM-D | ||
| By: Lewis | H.B. No. 791 | |
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| relating to prohibiting certain contracts for investment services | ||
| for state funds. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle F, Title 10, Government Code, is | ||
| amended by adding Chapter 2267 to read as follows: | ||
| CHAPTER 2267. CERTAIN CONTRACTS FOR INVESTMENT SERVICES FOR STATE | ||
| FUNDS | ||
| Sec. 2267.001. DEFINITION. In this chapter, "state | ||
| investment fund" means any investment fund that is investing public | ||
| funds and that is administered by or under a contract with any | ||
| entity of state government, including a fund: | ||
| (1) established by statute or by the Texas | ||
| Constitution; or | ||
| (2) administered by or under a contract with: | ||
| (A) a public retirement system, as defined by | ||
| Section 802.001, that provides service retirement, disability | ||
| retirement, or death benefits for officers or employees of the | ||
| state; | ||
| (B) an institution of higher education, as | ||
| defined by Section 61.003, Education Code; or | ||
| (C) any other entity that is part of state | ||
| government. | ||
| Sec. 2267.002. PROHIBITION ON CERTAIN CONTRACTS FOR | ||
| INVESTMENT SERVICES. The entity of state government responsible | ||
| for the administration of a state investment fund may not enter into | ||
| a contract for professional investment management services under | ||
| which the provider of the services receives a bonus, reward, or | ||
| other incentive payment based on the performance of an investment | ||
| made or recommended by the provider. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to a contract entered into or renewed on or after the effective date | ||
| of this Act. A contract entered into or renewed before the | ||
| effective date of this Act is governed by the law in effect | ||
| immediately before that date, and that law is continued in effect | ||
| for that purpose. | ||
| SECTION 3. This Act takes effect September 1, 2011. | ||
