Journal of the Senate of Texas: 83rd Legislature, Regular Session, Tuesday, May 7, 2013 Page: 1,551
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create a similar actively or passively 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 and anticipated return, the state
governmental entity may replace all applicable investments with investments in the
similar fund in a time frame consistent with prudent fiduciary standards.
Sec. 807.057. AUTHORIZED INVESTMENT IN LISTED COMPANIES. (a)
A state governmental entity may cease divesting from or may reinvest in one or more
listed companies if clear and convincing evidence shows that:
(1) the state governmental entity has suffered or will suffer a loss in the
hypothetical value of all assets under management by the state governmental entity as
a result of having to divest from listed companies under this chapter; or
(2) an individual portfolio that uses a benchmark-aware strategy would be
subject to an aggregate expected deviation from its benchmark as a result of having to
divest from listed companies under this chapter.
(b) A state governmental entity may cease divesting from or may reinvest in a
listed company as provided by this section only to the extent necessary to ensure that
the state governmental entity does not suffer a loss in value or deviate from its
benchmark as described by Subsection (a).
(c) Before a state governmental entity may cease divesting from or may reinvest
in a listed company under this section, the state governmental entity must provide a
written report to the presiding 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 state governmental entity shall update the report required by Subsection
(c) semiannually, as applicable.
(e) This section does not apply to reinvestment in a company that is no longer a
listed company.
Sec. 807.058. PROHIBITED INVESTMENTS. Except as provided by Sections
807.003 and 807.057, a state governmental entity may not acquire securities of a
listed company.
SUBCHAPTER C. EXPIRATION; REPORT; ENFORCEMENT
Sec. 807.101. EXPIRATION OF CHAPTER. This chapter expires on the earlier
of:
(1) the date the United States revokes its sanctions against the government
of Iran; or
(2) the date the United States Congress or the president of the United States,
through legislation or executive order, declares that mandatory divestment of the type
provided for in this chapter interferes with the conduct of United States foreign policy.
Sec. 807.102. REPORT. Not later than December 31 of each year, each state
governmental entity shall file a publicly available report with the presiding officer of
each house of the legislature and the attorney general that:
(1) identifies all securities sold, redeemed, divested, or withdrawn in
compliance with Section 807.055;
(2) identifies all prohibited investments under Section 807.058; and
(3) summarizes any changes made under Section 807.056.Tuesday, May 7, 2013
SENATE JOURNAL
1551
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Texas. Legislature. Senate. Journal of the Senate of Texas: 83rd Legislature, Regular Session, Tuesday, May 7, 2013, legislative document, May 7, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth640927/m1/47/?q=%22%22~1&rotate=90: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.