Journal of the Senate of Texas: 83rd Legislature, Regular Session, Tuesday, May 7, 2013 Page: 1,550
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(c) If, during the time provided by Subsection (b), the company ceases
scrutinized business operations, the board shall remove the company from the list
maintained under Section 807.051 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 company continues
to have scrutinized active business operations, the state governmental entity shall sell,
redeem, divest, or withdraw all publicly traded securities of the company, except
securities described by Section 807.056, according to the schedule provided by
Section 807.055.
Sec. 807.055. DIVESTMENT OF ASSETS. (a) A state governmental entity
required to sell, redeem, 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 must be removed from the state
governmental entity's assets under management not later than the 270th day after the
date the company receives notice under Section 807.054 or Subsection (b) unless the
state governmental entity determines, based on a good faith exercise of its fiduciary
discretion and subject to Subdivision (2), that a later date is more prudent; and
(2) 100 percent of those assets must be removed from the state
governmental entity's assets under management not later than the 450th day after the
date the company receives notice under Section 807.054 or Subsection (b).
(b) If a company that ceased scrutinized active business operations after
receiving notice under Section 807.054 resumes scrutinized active business
operations, the state governmental entity shall send a written notice to the company
informing it that the state governmental entity will sell, redeem, divest, or withdraw
all publicly traded securities of the scrutinized company according to the schedule in
Subsection (a).
(c) Except as provided by Subsection (a), a state governmental entity may delay
the schedule for divestment under that subsection only to the extent that the state
governmental entity determines, in the state governmental entity's good faith
judgment, that divestment from listed companies will likely result in a loss in value or
a benchmark deviation described by Section 807.057(a). If a state governmental entity
delays the schedule for divestment, the state governmental 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 state governmental entity's delay in divestment
from listed companies. The report must include documentation supporting its
determination that the divestment would result in a loss in value or benchmark
deviation described by Section 807.057(a), including objective numerical estimates.
The state governmental entity shall update the report every six months.
Sec. 807.056. INVESTMENTS EXEMPTED FROM DIVESTMENT. A state
governmental entity is not required to divest from any indirect holdings in actively or
passively managed investment funds or private equity funds. The state governmental
entity shall submit letters to the managers of investment funds containing listed
companies requesting that they consider removing those companies from the fund or1550
83rd Legislature- Regular Session
54th Day
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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/m1/46/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.