By Danburg H.B. No. 3183
77R6385 GJH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the composition of the board of trustees of the Teacher
1-3 Retirement System of Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 821.001(5), Government Code, is amended to
1-6 read as follows:
1-7 (5) "Board of trustees" means the persons [board]
1-8 appointed or elected under this subtitle to administer the
1-9 retirement system.
1-10 SECTION 2. Section 825.002, Government Code, is amended to
1-11 read as follows:
1-12 Sec. 825.002. APPOINTMENT AND ELECTION OF TRUSTEES
1-13 [APPOINTED BY GOVERNOR]. (a) The governor shall appoint, with the
1-14 advice and consent of the senate [and as provided by this section],
1-15 [seven members of the board of trustees].
1-16 [(b) The governor shall appoint] three trustees [members] of
1-17 the board of trustees to hold office for staggered terms, with the
1-18 term of one trustee expiring on August 31 of each odd-numbered
1-19 year. These trustees [members] must be persons who have
1-20 demonstrated financial expertise, who have worked in private
1-21 business or industry, and who have broad investment experience,
1-22 preferably in investment of pension funds. None of the trustees
1-23 [members] appointed under this subsection may be a member or
1-24 annuitant of the retirement system.
2-1 (b) Two trustees [(c) The governor shall appoint two
2-2 members] of the board of trustees who are [from a slate of three]
2-3 members of the retirement system and who are currently employed by
2-4 a public school district shall be elected [and who have been
2-5 nominated in accordance with Subsection (f)] by the members of the
2-6 retirement system whose most recent credited service was performed
2-7 for a public school district. The two trustees [members] hold
2-8 office for staggered terms.
2-9 (c) One trustee who is a [(d) The governor shall appoint
2-10 one member of the board from a slate of three] former member
2-11 [members] of the retirement system, has [who have] retired, and is
2-12 [are] receiving benefits from the retirement system shall be
2-13 elected [and who have been nominated in accordance with Subsections
2-14 (f) and (g)] by [the] persons who have retired and are receiving
2-15 benefits from the retirement system.
2-16 (d) One trustee who is a member [(e) The governor shall
2-17 appoint one member from a slate of three members] of the retirement
2-18 system and who is [are currently] employed by an institution of
2-19 higher education shall be elected [and who have been nominated in
2-20 accordance with Subsection (f)] by the members of the retirement
2-21 system whose most recent credited service was performed for an
2-22 institution of higher education.
2-23 (e) The board of trustees shall adopt rules for the election
2-24 of trustees described [(f) Persons considered for nomination]
2-25 under Subsection (b), (c), or (d)[, or (e) must have been nominated
2-26 by written ballot at an election conducted under rules adopted by
2-27 the board of trustees].
3-1 (f) [(g)] To provide for the election [nomination of persons
3-2 for appointment] under Subsection (c) [(d)], the board of trustees
3-3 shall send to each retiree of the retirement system:
3-4 (1) notice of the deadline for filing as a candidate
3-5 for election [nomination];
3-6 (2) information on procedures to follow in filing as a
3-7 candidate; and
3-8 (3) a [written] ballot.
3-9 SECTION 3. Sections 825.0032(a) and (b), Government Code, are
3-10 amended to read as follows:
3-11 (a) Except as provided by Subsection (b), a person is not
3-12 eligible for appointment or election to the board of trustees if
3-13 the person or the person's spouse:
3-14 (1) is employed by or participates in the management
3-15 of a business entity or other organization receiving funds from the
3-16 retirement system;
3-17 (2) owns or controls, directly or indirectly, more
3-18 than a 10 percent interest in a business entity or other
3-19 organization receiving funds from the retirement system; or
3-20 (3) uses or receives a substantial amount of tangible
3-21 goods, services, or funds from the retirement system, other than
3-22 compensation or reimbursement authorized by law for board of
3-23 trustees membership, attendance, or expenses.
3-24 (b) Subsection (a) does not apply to employment by,
3-25 participation in the management of, or ownership or control of an
3-26 interest in a business entity or other organization on behalf of
3-27 the retirement system. Subsection (a)(3) does not apply to a
4-1 person who is elected [nominated for appointment] under Section
4-2 825.002(b) [825.002(c)], (c), or (d)[, or (e)].
4-3 SECTION 4. Section 825.0041(b), Government Code, is amended
4-4 to read as follows:
4-5 (b) A training program established under this section shall
4-6 provide information to the trustee [member] regarding:
4-7 (1) the enabling legislation that created the
4-8 retirement system and its policy-making body on [to] which the
4-9 trustee [member] is [appointed] to serve;
4-10 (2) the programs operated by the retirement system;
4-11 (3) the role and functions of the retirement system;
4-12 (4) the rules of the retirement system with an
4-13 emphasis on the rules that relate to disciplinary and investigatory
4-14 authority;
4-15 (5) the current budget for the retirement system;
4-16 (6) the results of the most recent formal audit of the
4-17 retirement system;
4-18 (7) the requirements of the:
4-19 (A) open meetings law, Chapter 551;
4-20 (B) open records law, Chapter 552; and
4-21 (C) administrative procedure law, Chapter 2001;
4-22 (8) the requirements of the conflict of interest laws
4-23 and other laws relating to public officials; and
4-24 (9) any applicable ethics policies adopted by the
4-25 retirement system or the Texas Ethics Commission.
4-26 SECTION 5. Section 825.009(a), Government Code, is amended to
4-27 read as follows:
5-1 (a) A trustee elected [appointed from a slate of members
5-2 nominated] by members of the retirement system under Section
5-3 825.002 is entitled to leave with pay from the trustee's public
5-4 school employer to attend to the official business of the
5-5 retirement system.
5-6 SECTION 6. Sections 825.010(a) and (c), Government Code, are
5-7 amended to read as follows:
5-8 (a) It is a ground for removal from the board of trustees if
5-9 a trustee:
5-10 (1) does not have at the time of appointment or
5-11 election the qualifications required for the trustee's position;
5-12 (2) does not maintain during service on the board of
5-13 trustees the qualifications required for the trustee's position;
5-14 (3) violates a prohibition established by Section
5-15 825.002(a) [825.002(b)] or 825.0032 applicable to the trustee;
5-16 (4) cannot because of illness or disability discharge
5-17 the trustee's duties for a substantial part of the term for which
5-18 the trustee is appointed or elected; or
5-19 (5) is absent from more than one-third of the
5-20 regularly scheduled board of trustees meetings that the person is
5-21 eligible to attend during a calendar year unless the absence is
5-22 excused by majority vote of the board of trustees.
5-23 (c) If the executive director has knowledge that a potential
5-24 ground for removal exists, the executive director shall notify the
5-25 presiding officer of the board of trustees of the ground. The
5-26 presiding officer shall then notify the governor [appropriate
5-27 appointing officer] and the attorney general that a potential
6-1 ground for removal exists. If the potential ground for removal
6-2 involves the presiding officer, the executive director shall notify
6-3 the next highest officer of the board of trustees, who shall notify
6-4 the governor [appropriate appointing officer] and the attorney
6-5 general that a potential ground for removal exists.
6-6 SECTION 7. (a) This Act takes effect January 1, 2002, and
6-7 applies only to the appointment or election of a trustee of the
6-8 board of trustees of the Teacher Retirement System of Texas that
6-9 occurs on or after that date.
6-10 (b) A person who is serving as a trustee immediately before
6-11 the effective date of this Act may complete the trustee's term of
6-12 office, and the trustee's qualifications for serving as a trustee
6-13 are governed by the law in effect immediately before the effective
6-14 date of this Act until the date that trustee's term expires.