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  S.B. No. 1665
  relating to the investment authority of the Teacher Retirement
  System 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
  [means] any investment instrument within the meaning of the term as
  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 [In addition to the board's authority under
  Subsection (a-2), the] board of trustees may delegate discretionary
  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 [private
  professional] investment [managers,] advisors[,] and consultants
  to assist and advise the board and the staff of the retirement
  system [in investing the assets of the retirement system].
         (b-1)  By accepting a delegation of discretionary investment
  authority [under Subsection (a-2)] or an engagement to assist or
  advise the board or the staff of the retirement system under
  Subsection (b), an external [a professional] investment manager,
  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
  [Subsection (a-2) or (b)].  This subsection does not waive any
  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.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1665 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. 1665 passed the House on
  May 24,  2017, by the following vote:  Yeas 143, Nays 0, three
  present not voting.
  Chief Clerk of the House