| |
| |
|
|
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. Sections 825.0041(a) and (c), Government Code, |
|
|
are amended to read as follows: |
|
|
(a) A person who is appointed or elected to and qualifies |
|
|
for office as a member of the board of trustees may not vote, |
|
|
deliberate, or be counted as a member in attendance at a meeting of |
|
|
the board until the person completes a training program that |
|
|
complies with this section. |
|
|
(c) A person appointed or elected to the board of trustees |
|
|
is entitled to reimbursement under Section 825.007 for the travel |
|
|
expenses incurred in attending the training program regardless of |
|
|
whether the attendance at the program occurs before or after |
|
|
the person qualifies for office. |
|
|
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 |
|
|
that a trustee: |
|
|
(1) does not have at the time of taking office the |
|
|
qualifications required for the trustee's position; |
|
|
(2) does not maintain during service on the board 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 half of the regularly |
|
|
scheduled board meetings that the person is eligible to attend |
|
|
during a calendar year without an excuse approved by a majority vote |
|
|
of the board. |
|
|
(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, who shall notify the governor |
|
|
[appropriate appointing officer] and the attorney general that a |
|
|
potential ground for removal exists. |
|
|
SECTION 7. (a) This Act 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 the effective |
|
|
date of this Act. |
|
|
(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. |
|
|
SECTION 8. This Act takes effect January 1, 2010. |