By: Kolkhorst, et al. H.B. No. 1259 COMMITTEE SUBSTITUTE FOR H.B. No. 1259By: Duncan By: Duncan

(In the Senate - Received from the House May 13, 2009; May 14, 2009, read first time and referred to Committee on State Affairs; May 22, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 8, Nays 0; May 22, 2009, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to hiring outside legal counsel to provide legal services to the Teacher Retirement System of Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 825.203, Government Code, is amended to read as follows:

Sec. 825.203. LEGAL REPRESENTATION [ADVISER]. (a) The attorney general of the state is the legal adviser of the board of trustees. The attorney general shall represent the board in all litigation.

(b) The board may not employ outside legal counsel to provide legal services to the retirement system except as provided by this section and Section 402.0212, regardless of the source of funds to be used to pay the outside counsel. For purposes of this section, "legal services" includes services provided by an attorney regarding ethics and fiduciary responsibilities.

(c) The attorney general shall timely act on a request to approve a contract for outside legal services under Section 402.0212. If the attorney general denies the board's request for approval of a contract for outside legal services:

(1) the attorney general shall provide the board with the reason for the denial; and

(2) the board may select alternative outside legal counsel, subject to approval by the attorney general in accordance with this section and Section 402.0212.

SECTION 2. Section 825.203(c), Government Code, as added by this Act, applies only to a request to approve a contract for outside legal services submitted by the Teacher Retirement System of Texas on or after the effective date of this Act. A request submitted before the effective date of this Act is governed by the law in effect on the date the request was submitted and that law is continued in effect for that purpose.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.

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