Tex.
Gov't Code Section 808.054
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 180th day after the date the company receives notice under Section 808.053 (Actions Relating to Listed Company) 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 360th day after the date the company receives notice under Section 808.053 (Actions Relating to Listed Company) or Subsection (b).(b)
If a company that ceased boycotting Israel after receiving notice under Section 808.053 (Actions Relating to Listed Company) resumes its boycott, 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 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, and consistent with the entity’s fiduciary duty, that divestment from listed companies will likely result in a loss in value or a benchmark deviation described by Section 808.056 (Authorized Investment in Listed Companies)(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 a benchmark deviation described by Section 808.056 (Authorized Investment in Listed Companies)(a), including objective numerical estimates. The state governmental entity shall update the report every six months.
Source:
Section 808.054 — Divestment of Assets, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.808.htm#808.054 (accessed Jun. 5, 2024).
