Bill Text: TX HB791 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to prohibiting certain contracts for investment services for state funds.
Spectrum: Partisan Bill (Republican 1-0)
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. |