85R3356 KFF-F     By: Taylor of Collin S.B. No. 1344       A BILL TO BE ENTITLED   AN ACT   relating to reporting on investments by certain public retirement   systems.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 802.002(a), Government Code, is amended   to read as follows:          (a)  Except as provided by Subsection (b), the Employees   Retirement System of Texas, the Teacher Retirement System of Texas,   the Texas County and District Retirement System, the Texas   Municipal Retirement System, and the Judicial Retirement System of   Texas Plan Two are exempt from Sections 802.101(a), 802.101(b),   802.101(d), 802.102, 802.103(a), 802.103(b), 802.109, 802.2015,   802.2016, 802.202, 802.203, 802.204, 802.205, 802.206, and   802.207. The Judicial Retirement System of Texas Plan One is exempt   from all of Subchapters B and C except Sections 802.104 and 802.105.   The optional retirement program governed by Chapter 830 is exempt   from all of Subchapters B and C except Section 802.106.          SECTION 2.  Section 802.108, Government Code, is amended by   adding Subsection (d) to read as follows:          (d)  For purposes of determining investment returns under   this section, a public retirement system may not report all   investment income, including any interest, dividends, capital   gains, or other income, earned from an investment instrument in a   single year if the investment instrument is held for a period beyond   that single year. A public retirement system shall report   investment income earned from an investment instrument in the year   in which the income is earned.          SECTION 3.  Subchapter B, Chapter 802, Government Code, is   amended by adding Section 802.109 to read as follows:          Sec. 802.109.  INVESTMENT PRACTICES AND PERFORMANCE   REPORTS. (a) At least once every four years, a public retirement   system shall select an independent firm with substantial experience   in evaluating institutional investment practices and performance   to evaluate the retirement system's investment practices and   performance.          (b)  A public retirement system shall pay the costs of each   evaluation of the system under this section.          (c)  A report of an evaluation under this section must be   filed with the governing body of the public retirement system and   the board. The report must include a listing of all commissions and   fees paid by the public retirement system during the reporting   period for the sale, purchase, or management of system assets.          SECTION 4.  This Act takes effect September 1, 2017.