1. (a) The retirement system may form a title-holding entity for the purpose of investing the retirement system's assets in real property. The title-holding entity must be:

   1. (1) wholly owned, organized, and controlled by the system; and
   2. (2) exempt from taxation under Section 501(a), Internal Revenue Code of 1986, as an organization described by Section 501(c) of that code.
2. (b) Subject to Subsection (a)(2), a title-holding entity formed under this section may hold title to real property jointly with another person.
3. (c) The board of trustees shall adopt policies for the governance, management, and reporting for a title-holding entity formed under this section.

4. (d) The following persons may not be employed by, receive compensation from, be a party to a contract with or a direct or indirect financial beneficiary of a contract with, or hold a direct or indirect interest in a title-holding entity formed by the retirement system under this section:

   1. (1) a trustee or employee of the system; or
   2. (2) a relative of a trustee or employee of the system within the second degree of consanguinity or affinity, as determined under Chapter 573.
5. (e) Chapter 551 and Subtitles D and F, Title 10, do not apply to a title-holding entity formed under this section.

Added by Acts 2023, 88th Leg., R.S., Ch. 1093 (S.B. 1246), Sec. 6, eff. June 18, 2023.