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78R6938 SMJ-D
By: Bailey H.B. No. 2644
A BILL TO BE ENTITLED
AN ACT
relating to the composition of the board of trustees of the Teacher
Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 821.001(5), Government Code, is amended
to read as follows:
(5) "Board of trustees" means the persons [board]
appointed or elected under this subtitle to administer the
retirement system.
SECTION 2. Section 825.002, Government Code, is amended to
read as follows:
Sec. 825.002. APPOINTMENT AND ELECTION OF TRUSTEES
[APPOINTED BY GOVERNOR]. (a) The governor shall appoint, with the
advice and consent of the senate [and as provided by this section],
[seven members of the board of trustees.
[(b) The governor shall appoint] three trustees [members]
of the board of trustees to hold office for staggered terms, with
the term of one trustee expiring on August 31 of each odd-numbered
year. These trustees [members] must be persons who have
demonstrated financial expertise, who have worked in private
business or industry, and who have broad investment experience,
preferably in investment of pension funds. None of the trustees
[members] appointed under this subsection may be a member or
annuitant of the retirement system.
(b) Two trustees who are [(c) The governor shall appoint
two members of the board from a slate of three] members of the
retirement system and who are currently employed by a public school
district shall be elected [and who have been nominated in
accordance with Subsection (f)] by the members of the retirement
system whose most recent credited service was performed for a
public school district. The two trustees [members] hold office for
staggered terms.
(c) One trustee who is a [(d) The governor shall appoint one
member of the board from a slate of three] former member [members]
of the retirement system, has [who have] retired, and is [are]
receiving benefits from the retirement system shall be elected [and
who have been nominated in accordance with Subsections (f) and (g)]
by [the] persons who have retired and are receiving benefits from
the retirement system.
(d) One trustee who is a member [(e) The governor shall
appoint one member from a slate of three members] of the retirement
system and who is [are currently] employed by an institution of
higher education shall be elected [and who have been nominated in
accordance with Subsection (f)] by the members of the retirement
system whose most recent credited service was performed for an
institution of higher education.
(e) The board of trustees shall adopt rules for the election
of trustees described [(f) Persons considered for nomination]
under Subsection (b), (c), or (d)[, or (e) must have been nominated
by written ballot at an election conducted under rules adopted by
the board of trustees].
(f) [(g)] To provide for the election [nomination of
persons for appointment] under Subsection (c) [(d)], the board of
trustees shall send to each retiree of the retirement system:
(1) notice of the deadline for filing as a candidate
for election [nomination];
(2) information on procedures to follow in filing as a
candidate; and
(3) a [written] ballot.
SECTION 3. Sections 825.0032(a) and (b), Government Code,
are amended to read as follows:
(a) Except as provided by Subsection (b), a person is not
eligible for appointment or election to the board of trustees if the
person or the person's spouse:
(1) is employed by or participates in the management
of a business entity or other organization receiving funds from the
retirement system;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization receiving funds from the retirement system; or
(3) uses or receives a substantial amount of tangible
goods, services, or funds from the retirement system, other than
compensation or reimbursement authorized by law for board of
trustees membership, attendance, or expenses.
(b) Subsection (a) does not apply to employment by,
participation in the management of, or ownership or control of an
interest in a business entity or other organization on behalf of the
retirement system. Subsection (a)(3) does not apply to a person who
is elected [nominated for appointment] under Section 825.002(b)
[825.002(c)], (c), or (d)[, or (e)].
SECTION 4. Section 825.0041(b), Government Code, is amended
to read as follows:
(b) A training program established under this section shall
provide information to the trustee [member] regarding:
(1) the enabling legislation that created the
retirement system and its policy-making body on [to] which the
trustee [member] is [appointed] to serve;
(2) the programs operated by the retirement system;
(3) the role and functions of the retirement system;
(4) the rules of the retirement system with an
emphasis on the rules that relate to disciplinary and investigatory
authority;
(5) the current budget for the retirement system;
(6) the results of the most recent formal audit of the
retirement system;
(7) the requirements of the:
(A) open meetings law, Chapter 551;
(B) open records law, Chapter 552; and
(C) administrative procedure law, Chapter 2001;
(8) the requirements of the conflict of interest laws
and other laws relating to public officials; and
(9) any applicable ethics policies adopted by the
retirement system or the Texas Ethics Commission.
SECTION 5. Section 825.009(a), Government Code, is amended
to read as follows:
(a) A trustee elected [appointed from a slate of members
nominated] by members of the retirement system under Section
825.002 is entitled to leave with pay from the trustee's public
school employer to attend to the official business of the
retirement system.
SECTION 6. Sections 825.010(a) and (c), Government Code,
are amended to read as follows:
(a) It is a ground for removal from the board of trustees if
a trustee:
(1) does not have at the time of appointment or
election the qualifications required for the trustee's position;
(2) does not maintain during service on the board of
trustees the qualifications required for the trustee's position;
(3) violates a prohibition established by Section
825.002(a) [825.002(b)] or 825.0032 applicable to the trustee;
(4) cannot because of illness or disability discharge
the trustee's duties for a substantial part of the term for which
the trustee is appointed or elected; or
(5) is absent from more than one-third of the
regularly scheduled board of trustees meetings that the person is
eligible to attend during a calendar year unless the absence is
excused by majority vote of the board of trustees.
(c) If the executive director has knowledge that a potential
ground for removal exists, the executive director shall notify the
presiding officer of the board of trustees of the ground. The
presiding officer shall then notify the governor [appropriate
appointing officer] and the attorney general that a potential
ground for removal exists. If the potential ground for removal
involves the presiding officer, the executive director shall notify
the next highest officer of the board of trustees, who shall notify
the governor [appropriate appointing officer] and the attorney
general that a potential ground for removal exists.
SECTION 7. (a) This Act takes effect January 1, 2004, and
applies only to the appointment or election of a trustee of the
board of trustees of the Teacher Retirement System of Texas that
occurs on or after that date.
(b) A person who is serving as a trustee immediately before
the effective date of this Act may complete the trustee's term of
office, and the trustee's qualifications for serving as a trustee
are governed by the law in effect immediately before the effective
date of this Act until the date that trustee's term expires.