Tex.
Gov't Code Section 809.054
Divestment of Assets
(a)
A state governmental entity required to sell, redeem, divest, or withdraw all publicly traded securities of a listed financial 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 financial company receives notice under Section 809.053 (Actions Relating to Listed Financial 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 financial company receives notice under Section 809.053 (Actions Relating to Listed Financial Company) or Subsection (b).(b)
If a financial company that ceased boycotting energy companies after receiving notice under Section 809.053 (Actions Relating to Listed Financial Company) resumes its boycott, the state governmental entity shall send a written notice to the financial company informing it that the state governmental entity will sell, redeem, divest, or withdraw all publicly traded securities of the financial 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 financial companies will likely result in a loss in value or a benchmark deviation described by Section 809.056 (Authorized Investment in Listed Financial 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 financial 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 809.056 (Authorized Investment in Listed Financial Companies)(a), including objective numerical estimates. The state governmental entity shall update the report every six months.
Source:
Section 809.054 — Divestment of Assets, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.809.htm#809.054 (accessed Jun. 5, 2024).
