Bill Text: TX SB1665 | 2017-2018 | 85th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the investment authority of the Teacher Retirement System of Texas.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-15 - Effective immediately [SB1665 Detail]
Download: Texas-2017-SB1665-Comm_Sub.html
Bill Title: Relating to the investment authority of the Teacher Retirement System of Texas.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-15 - Effective immediately [SB1665 Detail]
Download: Texas-2017-SB1665-Comm_Sub.html
By: Huffman | S.B. No. 1665 | |
(Flynn) | ||
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relating to the 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), (b), and (b-1), Government | ||
Code, are amended to read as follows: | ||
(a) The board of trustees shall invest and reinvest assets | ||
of the retirement system without distinction as to their source in | ||
accordance with Section 67, Article XVI, Texas Constitution. For | ||
purposes of the investment authority of the board of trustees under | ||
Section 67, Article XVI, Texas Constitution, "securities" includes | ||
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defined by Section 4, The Securities Act (Article 581-4, Vernon's | ||
Texas Civil Statutes), 15 U.S.C. Section 77b(a)(1), or 15 U.S.C. | ||
Section 78c(a)(10), any derivative instrument, and any other | ||
instrument commonly used by institutional investors to manage | ||
institutional investment portfolios. An interest in a limited | ||
partnership or investment contract is considered a security without | ||
regard to the number of investors or the control, access to | ||
information, or rights granted to or retained by the retirement | ||
system. Any instrument or contract intended to manage transaction | ||
or currency exchange risk in purchasing, selling, or holding | ||
securities is considered to be a security. Investment decisions | ||
are subject to the standard provided in the Texas Trust Code by | ||
Section 117.004(b), Property Code. | ||
(b) The [ |
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investment authority to external investment managers to invest and | ||
manage not more than 30 percent of the total assets held in trust by | ||
the retirement system and may contract with external [ |
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to assist and advise the board and the staff of the retirement | ||
system [ |
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(b-1) By accepting a delegation of discretionary investment | ||
authority [ |
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advise the board or the staff of the retirement system under | ||
Subsection (b), an external [ |
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advisor, or consultant submits to the jurisdiction of the courts of | ||
this state in all proceedings arising from or related to | ||
performance of the delegated authority or engagement. An action | ||
relating to services rendered under this section shall be brought | ||
only in a state district court sitting in Travis County, Texas. | ||
Chapter 2260 does not apply to a contract under this section | ||
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immunity of the retirement system. | ||
SECTION 2. Sections 825.301(a-1) and (a-2), Government | ||
Code, are repealed. | ||
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, 2017. |