Bill Text: TX SB253 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to investment prohibitions and divestment requirements for certain investments of public money.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2017-05-23 - Effective immediately [SB253 Detail]
Download: Texas-2017-SB253-Enrolled.html
S.B. No. 253 |
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relating to investment prohibitions and divestment requirements | ||
for certain investments of public money. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 404.024(b), Government Code, is amended | ||
to read as follows: | ||
(b) Subject to Chapter 2270, state [ |
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deposited in state depositories shall be invested by the | ||
comptroller in: | ||
(1) direct security repurchase agreements; | ||
(2) reverse security repurchase agreements; | ||
(3) direct obligations of or obligations the principal | ||
and interest of which are guaranteed by the United States; | ||
(4) direct obligations of or obligations guaranteed by | ||
agencies or instrumentalities of the United States government; | ||
(5) bankers' acceptances that: | ||
(A) are eligible for purchase by the Federal | ||
Reserve System; | ||
(B) do not exceed 270 days to maturity; and | ||
(C) are issued by a bank whose other comparable | ||
short-term obligations are rated in the highest short-term rating | ||
category, within which there may be subcategories or gradations | ||
indicating relative standing, including such subcategories or | ||
gradations as "rating category" or "rated," by a nationally | ||
recognized statistical rating organization, as defined by 15 U.S.C. | ||
Section 78c [ |
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(6) commercial paper that: | ||
(A) does not exceed 270 days to maturity; and | ||
(B) except as provided by Subsection (i), is | ||
issued by an entity whose other comparable short-term obligations | ||
are rated in the highest short-term rating category by a nationally | ||
recognized statistical rating organization; | ||
(7) contracts written by the treasury in which the | ||
treasury grants the purchaser the right to purchase securities in | ||
the treasury's marketable securities portfolio at a specified price | ||
over a specified period and for which the treasury is paid a fee and | ||
specifically prohibits naked-option or uncovered option trading; | ||
(8) direct obligations of or obligations guaranteed by | ||
the Inter-American Development Bank, the International Bank for | ||
Reconstruction and Development (the World Bank), the African | ||
Development Bank, the Asian Development Bank, and the International | ||
Finance Corporation that have received the highest long-term rating | ||
categories for debt obligations by a nationally recognized | ||
statistical rating organization; | ||
(9) bonds issued, assumed, or guaranteed by the State | ||
of Israel; | ||
(10) obligations of a state or an agency, county, | ||
city, or other political subdivision of a state; | ||
(11) mutual funds secured by obligations that are | ||
described by Subdivisions (1) through (6) or by obligations | ||
consistent with Rule 2a-7 (17 C.F.R. Section 270.2a-7), promulgated | ||
by the Securities and Exchange Commission, including pooled funds: | ||
(A) established by the Texas Treasury | ||
Safekeeping Trust Company; | ||
(B) operated like a mutual fund; and | ||
(C) with portfolios consisting only of | ||
dollar-denominated securities; | ||
(12) foreign currency for the sole purpose of | ||
facilitating investment by state agencies that have the authority | ||
to invest in foreign securities; | ||
(13) asset-backed securities, as defined by the | ||
Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section | ||
270.2a-7), that are rated at least A or its equivalent by a | ||
nationally recognized statistical rating organization and that | ||
have a weighted-average maturity of five years or less; and | ||
(14) corporate debt obligations that are rated at | ||
least A or its equivalent by a nationally recognized statistical | ||
rating organization and mature in five years or less from the date | ||
on which the obligations were "acquired," as defined by the | ||
Securities and Exchange Commission in Rule 2a-7 (17 C.F.R. Section | ||
270.2a-7). | ||
SECTION 2. Section 2256.017, Government Code, is amended to | ||
read as follows: | ||
Sec. 2256.017. EXISTING INVESTMENTS. Except as provided by | ||
Chapter 2270, an [ |
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investments that were authorized investments at the time of | ||
purchase. | ||
SECTION 3. Section 2256.024(a), Government Code, is amended | ||
to read as follows: | ||
(a) The authority granted by this subchapter is in addition | ||
to that granted by other law. Except as provided by Subsection (b) | ||
and Section 2256.017, this subchapter does not: | ||
(1) prohibit an investment specifically authorized by | ||
other law; or | ||
(2) authorize an investment specifically prohibited | ||
by other law. | ||
SECTION 4. Chapter 806, Government Code, is transferred to | ||
Subtitle F, Title 10, Government Code, redesignated as Chapter 2270 | ||
of that subtitle, and amended to read as follows: | ||
CHAPTER 2270 [ |
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CERTAIN INVESTMENTS [ |
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SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 2270.0001 [ |
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(1) "Active business operations" means all business | ||
operations that are not inactive business operations. | ||
(2) [ |
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organization, association, corporation, partnership, joint | ||
venture, limited partnership, limited liability partnership, | ||
limited liability company, or other entity or business association | ||
whose securities are publicly traded, including a wholly owned | ||
subsidiary, majority-owned subsidiary, parent company, or | ||
affiliate of those entities or business associations, that exists | ||
to make a profit. | ||
(3) "Designated foreign terrorist organization" means | ||
an organization designated as a foreign terrorist organization by | ||
the United States secretary of state as authorized by 8 U.S.C. | ||
Section 1189. | ||
(4) [ |
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securities of that company held directly by an investing [ |
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(5) [ |
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continued holding or renewal of rights to property previously | ||
operated to generate revenue but not presently deployed to generate | ||
revenue. | ||
(6) [ |
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all securities of that company held in an account or fund, such as a | ||
mutual fund, managed by one or more persons not employed by an | ||
investing [ |
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other investors not subject to this chapter. The term does not | ||
include money invested under a plan described by Section 401(k) or | ||
457 of the Internal Revenue Code of 1986. | ||
(7) "Investing entity" means: | ||
(A) an entity subject to Chapter 2256; | ||
(B) the Employees Retirement System of Texas; | ||
(C) the Teacher Retirement System of Texas; and | ||
(D) the comptroller with respect to the | ||
comptroller's investment of state funds. | ||
(8) [ |
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the comptroller under Section 2270.0201 [ |
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(9) [ |
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(A) a company that: | ||
(i) [ |
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operations described by Section 2270.0052 [ |
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(ii) [ |
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genocide during any preceding 20-month period; | ||
(B) a company that engages in scrutinized | ||
business operations described by Section 2270.0102; and | ||
(C) a company that engages in scrutinized | ||
business operations described by Section 2270.0152. | ||
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Sec. 2270.0002 [ |
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a company that the United States government affirmatively declares | ||
to be excluded from its federal sanctions regime relating to Sudan, | ||
its federal sanctions regime relating to Iran, or any federal | ||
sanctions regime relating to a designated foreign terrorist | ||
organization is not subject to divestment or investment prohibition | ||
under this chapter. | ||
Sec. 2270.0003 [ |
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respect to actions taken in compliance with this chapter, including | ||
all good faith determinations regarding companies as required by | ||
this chapter, an investing [ |
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from any conflicting statutory or common law obligations, including | ||
any obligations with respect to making investments, divesting from | ||
any investment, preparing or maintaining any list of companies, or | ||
choosing asset managers, investment funds, or investments for the | ||
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Sec. 2270.0004. INAPPLICABILITY OF CERTAIN REQUIREMENTS | ||
INCONSISTENT WITH FIDUCIARY RESPONSIBILITIES AND RELATED DUTIES. | ||
An investing entity described by Section 2270.0001(7)(B) or (C) is | ||
not subject to a requirement of this chapter if the entity | ||
determines that the requirement would be inconsistent with the | ||
entity's fiduciary responsibility with respect to the investment of | ||
entity assets or other duties imposed by law relating to the | ||
investment of entity assets, including the duty of care established | ||
under Section 67, Article XVI, Texas Constitution. | ||
Sec. 2270.0005. CONFLICT WITH OTHER LAW. To the extent of a | ||
conflict between this chapter and a provision of Chapter 404 or 2256 | ||
regarding an investing entity's investments, this chapter | ||
prevails. | ||
Sec. 2270.0006 [ |
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of action based on an action, inaction, decision, divestment, | ||
investment, company communication, report, or other determination | ||
made or taken in connection with this chapter, the state shall, | ||
without regard to whether the person performed services for | ||
compensation, indemnify and hold harmless for actual damages, court | ||
costs, and attorney's fees adjudged against, and defend: | ||
(1) an employee, a member of the governing body, or any | ||
other officer of an investing [ |
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(2) a contractor of an investing [ |
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(3) a former employee, a former member of the | ||
governing body, or any other former officer of an investing [ |
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omission on which the damages are based occurred; [ |
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(4) a former contractor of an investing [ |
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on which the damages are based occurred; and | ||
(5) an investing entity. | ||
Sec. 2270.0007 [ |
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(a) A person, including a member, retiree, and beneficiary of a | ||
retirement system to which this chapter applies, an association, a | ||
research firm, a company, or any other person may not sue or pursue | ||
a private cause of action against the state, an investing [ |
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or any other officer of an investing [ |
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or a contractor of an investing [ |
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any claim or cause of action, including breach of fiduciary duty, or | ||
for violation of any constitutional, statutory, or regulatory | ||
requirement in connection with any action, inaction, decision, | ||
divestment, investment, company communication, report, or other | ||
determination made or taken in connection with this chapter. | ||
(b) A person who files suit against the state, an investing | ||
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governing body, or any other officer of an investing [ |
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fees of a person sued in violation of this section. | ||
Sec. 2270.0008. RELIANCE ON COMPANY RESPONSE. The | ||
comptroller in administering this chapter and an investing entity | ||
may rely on a company's response to a notice or communication made | ||
under this chapter without conducting any further investigation, | ||
research, or inquiry. | ||
SUBCHAPTER B. GENERAL PROVISIONS RELATING TO INVESTMENTS IN SUDAN | ||
Sec. 2270.0051. DEFINITIONS. In this subchapter: | ||
(1) "Business operations" means engaging in commerce | ||
in any form in Sudan, including by acquiring, developing, | ||
maintaining, owning, selling, possessing, leasing, or operating | ||
equipment, facilities, personnel, products, services, personal | ||
property, real property, or any other apparatus of business or | ||
commerce. | ||
(2) "Complicit" means taking actions that have | ||
directly supported or promoted the genocidal campaign in Darfur, | ||
including: | ||
(A) preventing members of Darfur's victimized | ||
population from communicating with each other; | ||
(B) encouraging Sudanese citizens to speak out | ||
against an internationally approved security force for Darfur; or | ||
(C) actively working to deny, cover up, or alter | ||
the record on human rights abuses in Darfur. | ||
(3) "Government of Sudan" means the government in | ||
Khartoum, Sudan, which is led by the National Congress Party, | ||
formerly known as the National Islamic Front, or any successor | ||
government formed on or after October 13, 2006, including the | ||
coalition National Unity Government agreed upon in the | ||
Comprehensive Peace Agreement for Sudan. The term does not include | ||
the regional government of southern Sudan. | ||
(4) "Marginalized populations of Sudan" includes: | ||
(A) the portion of the population in the Darfur | ||
region that has been genocidally victimized; | ||
(B) the portion of the population of southern | ||
Sudan victimized by Sudan's North-South civil war; | ||
(C) the Beja, Rashidiya, and other similarly | ||
underserved groups of eastern Sudan; | ||
(D) the Nubian and other similarly underserved | ||
groups in Sudan's Abyei, Southern Blue Nile, and Nuba Mountain | ||
regions; and | ||
(E) the Amri, Hamadab, Manasir, and other | ||
similarly underserved groups of northern Sudan. | ||
(5) "Military equipment" means weapons, arms, | ||
military supplies, and equipment that readily may be used for | ||
military purposes, including radar systems or military-grade | ||
transport vehicles or supplies or services sold or provided | ||
directly or indirectly to any force actively participating in armed | ||
conflict in Sudan. | ||
(6) "Mineral extraction activities" includes | ||
exploring, extracting, processing, transporting, or wholesale | ||
selling or trading of elemental minerals or associated metal alloys | ||
or oxides (ore), including gold, copper, chromium, chromite, | ||
diamonds, iron, iron ore, silver, tungsten, uranium, and zinc, as | ||
well as facilitating those activities, including by providing | ||
supplies or services in support of those activities. | ||
(7) "Oil-related activities" includes: | ||
(A) owning rights to oil blocks; | ||
(B) exporting, extracting, producing, refining, | ||
processing, exploring for, transporting, selling, or trading of | ||
oil; | ||
(C) constructing, maintaining, or operating a | ||
pipeline, refinery, or other oil-field infrastructure; or | ||
(D) facilitating oil-related activities, | ||
including by providing supplies or services in support of the | ||
activities, except that the mere retail sale of gasoline and | ||
related consumer products is not an oil-related activity. | ||
(8) "Power production activities" means any business | ||
operation that involves a project commissioned by the National | ||
Electricity Corporation of Sudan or another similar government of | ||
Sudan entity whose purpose is to facilitate power generation and | ||
delivery, including establishing power-generating plants or | ||
hydroelectric dams, selling or installing components for the | ||
project, and providing service contracts related to the | ||
installation or maintenance of the project, as well as facilitating | ||
those activities, including by providing supplies or services in | ||
support of those activities. | ||
(9) "Social development company" means a company whose | ||
primary purpose in Sudan is to provide humanitarian goods or | ||
services, including medicine or medical equipment, agricultural | ||
supplies or infrastructure, educational opportunities, | ||
journalism-related activities, information or information | ||
materials, spiritual-related activities, services of a purely | ||
clerical or reporting nature, food, clothing, or general consumer | ||
goods that are unrelated to oil-related activities, mineral | ||
extraction activities, or power production activities. | ||
(10) "Substantial action" means adopting, | ||
publicizing, and implementing a formal plan to cease scrutinized | ||
business operations within one year and to refrain from any such new | ||
business operations, undertaking significant humanitarian efforts | ||
on behalf of one or more marginalized populations of Sudan, or, | ||
through engagement with the government of Sudan, materially | ||
improving conditions for the genocidally victimized population in | ||
Darfur. | ||
Sec. 2270.0052. SCRUTINIZED BUSINESS OPERATIONS IN SUDAN. | ||
A company engages in scrutinized business operations in Sudan if: | ||
(1) the company has business operations that involve | ||
contracts with or providing supplies or services to the government | ||
of Sudan, a company in which the government of Sudan has any direct | ||
or indirect equity share, a government of Sudan-commissioned | ||
consortium or project, or a company involved in a government of | ||
Sudan-commissioned consortium or project and: | ||
(A) more than 10 percent of the company's | ||
revenues or assets linked to Sudan involve oil-related activities | ||
or mineral extraction activities, less than 75 percent of the | ||
company's revenue or assets linked to Sudan involve contracts with | ||
or provision of oil-related or mineral extracting products or | ||
services to the regional government of southern Sudan or a project | ||
or consortium created exclusively by that regional government, and | ||
the company has failed to take substantial action; or | ||
(B) more than 10 percent of the company's revenue | ||
or assets linked to Sudan involve power production activities, less | ||
than 75 percent of the company's power production activities | ||
include projects whose intent is to provide power or electricity to | ||
the marginalized populations of Sudan, and the company has failed | ||
to take substantial action; or | ||
(2) the company supplies military equipment in Sudan, | ||
unless: | ||
(A) the company clearly shows that the military | ||
equipment cannot be used to facilitate offensive military actions | ||
in Sudan; or | ||
(B) the company implements rigorous and | ||
verifiable safeguards to prevent use of that equipment by forces | ||
actively participating in armed conflict, including: | ||
(i) using post-sale tracking of the | ||
equipment by the company; | ||
(ii) obtaining certification from a | ||
reputable and objective third party that the equipment is not being | ||
used by a party participating in armed conflict in Sudan; or | ||
(iii) selling the equipment solely to the | ||
regional government of southern Sudan or any internationally | ||
recognized peacekeeping force or humanitarian organization. | ||
Sec. 2270.0053. SOCIAL DEVELOPMENT COMPANY. | ||
Notwithstanding any other law, a social development company that is | ||
not complicit in the Darfur genocide is not a scrutinized company | ||
under Section 2270.0001(9)(A). | ||
SUBCHAPTER C. GENERAL PROVISIONS RELATING TO INVESTMENTS IN IRAN | ||
Sec. 2270.0101. DEFINITIONS. In this subchapter: | ||
(1) "Business operations" means engaging in commerce | ||
in any form in Iran, including by acquiring, developing, | ||
maintaining, owning, selling, possessing, leasing, or operating | ||
equipment, facilities, personnel, products, services, personal | ||
property, real property, or any other apparatus of business or | ||
commerce. | ||
(2) "Military equipment" means weapons, arms, | ||
military supplies, and equipment that readily may be used for | ||
military purposes, including radar systems and military-grade | ||
transport vehicles. | ||
Sec. 2270.0102. SCRUTINIZED BUSINESS OPERATIONS IN IRAN. A | ||
company engages in scrutinized business operations in Iran if: | ||
(1) the company has business operations that involve | ||
contracts with or providing supplies or services to the government | ||
of Iran, a company in which the government of Iran has any direct or | ||
indirect equity share, a consortium or project commissioned by the | ||
government of Iran, or a company involved in a consortium or project | ||
commissioned by the government of Iran; or | ||
(2) the company supplies military equipment to Iran. | ||
SUBCHAPTER D. GENERAL PROVISIONS RELATING TO INVESTMENTS IN | ||
CERTAIN FOREIGN TERRORIST ORGANIZATIONS | ||
Sec. 2270.0151. DEFINITIONS. In this subchapter: | ||
(1) "Business operations" means engaging in commerce | ||
in any form, including by acquiring, developing, maintaining, | ||
owning, selling, possessing, leasing, or operating equipment, | ||
facilities, personnel, products, services, personal property, real | ||
property, or any other apparatus of business or commerce. | ||
(2) "Terroristic equipment" means weapons, arms, | ||
military supplies, and equipment that readily may be used for | ||
terroristic purposes or activities. | ||
Sec. 2270.0152. SCRUTINIZED BUSINESS OPERATIONS WITH | ||
DESIGNATED FOREIGN TERRORIST ORGANIZATION. A company engages in | ||
scrutinized business operations with a designated foreign | ||
terrorist organization if: | ||
(1) the company has business operations that involve: | ||
(A) a contract with or providing supplies or | ||
services to a designated foreign terrorist organization; | ||
(B) a company in which a designated foreign | ||
terrorist organization has any direct or indirect equity share; | ||
(C) a consortium or project commissioned by a | ||
designated foreign terrorist organization; or | ||
(D) a company involved in a consortium or project | ||
commissioned by a designated foreign terrorist organization; or | ||
(2) the company supplies terroristic equipment to a | ||
designated foreign terrorist organization. | ||
Sec. 2270.0153. LIST OF DESIGNATED FOREIGN TERRORIST | ||
ORGANIZATIONS. (a) The comptroller shall prepare and maintain a | ||
list of designated foreign terrorist organizations. | ||
(b) The comptroller shall maintain the list by updating the | ||
list as necessary to reflect changes in the list of foreign | ||
organizations designated as foreign terrorist organizations by the | ||
United States secretary of state as authorized by 8 U.S.C. Section | ||
1189. | ||
(c) Not later than the 30th day after the date the | ||
comptroller first prepares or updates the list of designated | ||
foreign terrorist organizations as required by this section, the | ||
comptroller shall: | ||
(1) file the list with the presiding officer of each | ||
house of the legislature and the attorney general; and | ||
(2) post the list on the comptroller's Internet | ||
website. | ||
SUBCHAPTER E [ |
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Sec. 2270.0201 [ |
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comptroller shall prepare and maintain[ |
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list must be categorized according to: | ||
(1) companies that are scrutinized companies under | ||
Section 2270.0001(9)(A); | ||
(2) companies that are scrutinized companies under | ||
Section 2270.0001(9)(B); and | ||
(3) companies that are scrutinized companies under | ||
Section 2270.0001(9)(C). | ||
(b) In maintaining the list of scrutinized companies under | ||
Subsection (a), the comptroller may review and rely, as appropriate | ||
in the comptroller's judgment, on publicly available information | ||
regarding companies with business operations in Sudan, in Iran, or | ||
with designated foreign terrorist organizations, as applicable, | ||
including information provided by the state, nonprofit | ||
organizations, research firms, international organizations, and | ||
governmental entities. | ||
(c) [ |
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scrutinized companies under Subsection (a) annually or more often | ||
as the comptroller considers necessary, but not more often than | ||
quarterly, based on information from, among other sources, those | ||
listed in Subsection (b) [ |
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(d) The comptroller shall: | ||
(1) provide each list prepared or updated under this | ||
section to each investing entity; and | ||
(2) post each list on the comptroller's Internet | ||
website. | ||
(e) [ |
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list of scrutinized companies is [ |
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comptroller shall file the list of scrutinized companies with the | ||
presiding officer of each house of the legislature and the attorney | ||
general. | ||
(f) For purposes of the prohibitions and duties under this | ||
chapter, the date the comptroller posts on the comptroller's | ||
Internet website a list of scrutinized companies under this section | ||
is considered the date the comptroller receives notice of the list. | ||
Sec. 2270.0202 [ |
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LISTED COMPANIES. Not later than the 30th day after the date an | ||
investing [ |
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provided under Section 2270.0201 [ |
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companies in which the [ |
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indirect holdings. | ||
Sec. 2270.0203 [ |
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IN INACTIVE BUSINESS OPERATIONS. For each listed company | ||
identified under Section 2270.0202 [ |
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only inactive scrutinized business operations, the investing | ||
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the company of this chapter and encouraging the company to continue | ||
to refrain from initiating active business operations in Sudan, in | ||
Iran, and with designated foreign terrorist organizations until it | ||
is able to avoid being considered a listed company. The investing | ||
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the entity considers necessary, but is not required to initiate | ||
correspondence more often than semiannually. | ||
Sec. 2270.0204 [ |
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COMPANY ENGAGED IN ACTIVE BUSINESS OPERATIONS. (a) For each | ||
listed company identified under Section 2270.0202 [ |
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engaged in scrutinized active business operations, the investing | ||
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the company of its listed company status and warning the company | ||
that it may become subject to divestment by investing [ |
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(b) The notice shall offer the company the opportunity to | ||
clarify its Sudan-related, Iran-related, or designated foreign | ||
terrorist organization-related activities, as applicable, and | ||
shall encourage the company, not later than the 90th day after the | ||
date the company receives notice under this section, to either | ||
cease all [ |
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Sections 2270.0052, 2270.0102, and 2270.0152, or convert such | ||
operations to inactive business operations in order to avoid | ||
qualifying for divestment by investing [ |
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entities. | ||
(c) If, during the time provided by Subsection (b), the | ||
company ceases scrutinized business operations described by that | ||
subsection, the comptroller shall remove the company from the list | ||
of scrutinized companies and this chapter will no longer apply to | ||
the company unless it resumes scrutinized business operations. | ||
(d) If, during the time provided by Subsection (b), the | ||
company converts its scrutinized active business operations to | ||
inactive business operations, the company is subject to all | ||
provisions of this chapter relating to inactive business | ||
operations. | ||
(e) If, after the time provided by Subsection (b) expires, | ||
the listed company continues to have scrutinized active business | ||
operations, the investing [ |
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redeem, divest, or withdraw all publicly traded securities of the | ||
company, except securities described by Section 2270.0207 | ||
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Sec. 2270.0205 [ |
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COMPANY COMPLICIT IN GENOCIDE. (a) In this section, "complicit" | ||
has the meaning assigned by Section 2270.0051. | ||
(b) For each company identified under Section 2270.0202 | ||
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company of its listed company status and warning the company that it | ||
may become subject to divestment by the investing [ |
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(c) [ |
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refrain from taking any further action that would make it | ||
complicit. | ||
(d) [ |
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(b) [ |
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the company complicit, the investing [ |
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shall sell, redeem, divest, or withdraw all publicly traded | ||
securities of the company, except securities described by Section | ||
2270.0207 [ |
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2270.0206 [ |
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Sec. 2270.0206 [ |
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investing [ |
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divest, or withdraw all publicly traded securities of a listed | ||
company shall comply with the following schedule: | ||
(1) at least 50 percent of those assets shall be | ||
removed from the investing [ |
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under management not later than the 270th day after the date the | ||
company receives notice under Section 2270.0204 [ |
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2270.0205 [ |
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(2) 100 percent of those assets shall be removed from | ||
the investing [ |
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management not later than the 450th day after the date the company | ||
receives notice under Section 2270.0204 [ |
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(b) If a company that ceased scrutinized active business | ||
operations after receiving notice under Section 2270.0204 | ||
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investing [ |
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to the company informing it that the [ |
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will sell, redeem, divest, or withdraw all publicly traded | ||
securities of the scrutinized company according to the schedule in | ||
Subsection (a). | ||
(c) An investing [ |
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schedule for divestment under Subsection (a) only to the extent | ||
that the [ |
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listed companies will likely result in a loss in value described by | ||
Section 2270.0208(a) [ |
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entity delays the schedule for divestment, the [ |
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entity shall submit a report to the presiding officer of each house | ||
of the legislature and the attorney general stating the reasons and | ||
justification for the [ |
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divestment from listed companies. The report must include | ||
documentation supporting its determination that the divestment | ||
would result in a loss in value described by Section 2270.0208(a) | ||
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investing [ |
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six months. | ||
Sec. 2270.0207 [ |
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DIVESTMENT. An investing [ |
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required to divest from any indirect holdings in actively managed | ||
investment funds or private equity funds. The investing [ |
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investment funds containing listed companies requesting that they | ||
consider removing those companies from the fund or create a similar | ||
actively managed fund with indirect holdings devoid of listed | ||
companies. If the manager creates a similar fund with | ||
substantially the same management fees and same level of investment | ||
risk, the investing [ |
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applicable investments with investments in the similar fund in an | ||
expedited time frame consistent with prudent fiduciary standards. | ||
Sec. 2270.0208 [ |
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COMPANIES. (a) An investing [ |
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cease divesting from or may reinvest in one or more listed companies | ||
if clear and convincing evidence shows that the value for all assets | ||
under management by the [ |
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to or less than 99.7 percent of the hypothetical value of all assets | ||
under management by the [ |
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chapter. | ||
(b) An investing [ |
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a listed company as provided by this section only to the extent | ||
necessary to ensure that the value of the assets managed by the | ||
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by Subsection (a). | ||
(c) Before an investing [ |
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invest in a listed company under this section, the [ |
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officer of each house of the legislature and the attorney general | ||
setting forth the reason and justification, supported by clear and | ||
convincing evidence, for its decisions to cease divestment, to | ||
reinvest, or to remain invested in a listed company. | ||
(d) The investing [ |
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the report required by Subsection (c) semiannually, as applicable. | ||
(e) This section does not apply to reinvestment in a company | ||
that has ceased to be a listed company. | ||
Sec. 2270.0209 [ |
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as provided by Sections 2270.0002 [ |
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acquire securities of a listed company. | ||
SUBCHAPTER F [ |
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Sec. 2270.0251 [ |
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chapter expires September 1, 2037 [ |
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Sec. 2270.0252 [ |
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31 of each year, each investing [ |
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(1) file a publicly available report with the | ||
presiding officer of each house of the legislature and[ |
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attorney general[ |
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(A) [ |
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redeemed, divested, or withdrawn in compliance with Section | ||
2270.0206 [ |
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(B) [ |
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under Section 2270.0209 [ |
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(C) [ |
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Section 2270.0207; and | ||
(2) file a report with the United States presidential | ||
special envoy to Sudan that identifies investments in Sudan | ||
identified in the report as required by Subdivisions (1)(A) and (B) | ||
and summarizes any changes made under Section 2270.0207 related to | ||
those investments [ |
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Sec. 2270.0253 [ |
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general may bring any action necessary to enforce this chapter. | ||
SECTION 5. Chapter 807, Government Code, is repealed. | ||
SECTION 6. (a) On the effective date of this Act, all | ||
powers, duties, and functions of the State Pension Review Board | ||
under Chapter 807, Government Code, as repealed by this Act, are | ||
transferred to the comptroller of public accounts. | ||
(b) All of the following that relate to a power, duty, or | ||
function transferred under Subsection (a) of this section are | ||
transferred to the comptroller of public accounts on the effective | ||
date of this Act: | ||
(1) all obligations and contracts; | ||
(2) all property and records in the custody of the | ||
State Pension Review Board; | ||
(3) all funds appropriated by the legislature and | ||
other money; | ||
(4) all complaints, investigations, or contested | ||
cases that are pending before the State Pension Review Board, | ||
without change in status; and | ||
(5) all necessary personnel. | ||
(c) A rule, policy, or form adopted by or on behalf of the | ||
State Pension Review Board that relates to a power, duty, or | ||
function transferred under Subsection (a) of this section becomes a | ||
rule, policy, or form of the comptroller of public accounts on the | ||
transfer of the related power, duty, or function and remains in | ||
effect: | ||
(1) until altered by the comptroller of public | ||
accounts; or | ||
(2) unless it conflicts with a rule, policy, or form of | ||
the comptroller of public accounts. | ||
(d) An action brought or proceeding commenced before the | ||
date of a transfer under this section, including a contested case or | ||
a remand of an action or proceeding by a reviewing court, is | ||
governed by the laws and rules applicable to the action or | ||
proceeding before the transfer. | ||
SECTION 7. Not later than September 1, 2017, the | ||
comptroller of public accounts shall prepare the initial list of | ||
designated foreign terrorist organizations as required by Section | ||
2270.0153, Government Code, as added by this Act. | ||
SECTION 8. Not later than October 1, 2017, the comptroller | ||
of public accounts shall: | ||
(1) prepare an updated list of scrutinized companies | ||
required by Section 2270.0201, Government Code, as added by this | ||
Act; | ||
(2) provide the list to each investing entity, as | ||
defined by Section 2270.0001, Government Code, as added by this | ||
Act; and | ||
(3) post the list on the comptroller's Internet | ||
website. | ||
SECTION 9. 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 on the 91st day after the last day of the | ||
legislative session. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 253 passed the Senate on | ||
April 19, 2017, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 253 passed the House on | ||
May 9, 2017, by the following vote: Yeas 144, Nays 1, two present | ||
not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |