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A BILL TO BE ENTITLED
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AN ACT
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relating to the composition of the board of trustees of the Teacher |
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Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 821.001(5), Government Code, is amended |
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to read as follows: |
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(5) "Board of trustees" means the persons [board] |
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appointed or elected under this subtitle to administer the |
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retirement system. |
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SECTION 2. The heading to Section 825.002, Government Code, |
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is amended to read as follows: |
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Sec. 825.002. APPOINTMENT AND ELECTION OF TRUSTEES |
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[APPOINTED BY GOVERNOR]. |
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SECTION 3. Sections 825.002(a), (d), (f), and (g), |
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Government Code, are amended to read as follows: |
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(a) The governor shall appoint, with the advice and consent |
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of the senate and as provided by this section, six [seven] members |
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of the board of trustees. |
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(d) Two trustees who are [The governor shall appoint one
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member of the board from a slate of three] former members of the |
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retirement system who have retired and are receiving benefits from |
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the retirement system shall be elected [and who have been nominated
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in accordance with Subsections (f) and (g)] by [the] persons who |
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have retired and are receiving benefits from the retirement system. |
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The two members elected under this subsection hold office for |
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staggered terms. |
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(f) Persons considered for nomination under Subsection |
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(c)[, (d),] or (e) or elected under Subsection (d) must have been |
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nominated or elected, as appropriate, by written ballot at an |
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election conducted under rules adopted by the board of trustees. |
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(g) To provide for the election [nomination of persons for
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appointment] under Subsection (d), the board shall send to each |
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retiree of the retirement system: |
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(1) notice of the deadline for filing as a candidate |
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for election [nomination]; |
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(2) information on procedures to follow in filing as a |
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candidate; and |
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(3) a written ballot. |
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SECTION 4. Section 825.003, Government Code, is amended to |
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read as follows: |
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Sec. 825.003. TRUSTEES APPOINTED BY GOVERNOR FROM NOMINEES |
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OF BOARD OF EDUCATION. The governor shall appoint one member [two
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members] of the board of trustees, subject to confirmation by |
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two-thirds of the senate, from lists of nominees submitted by the |
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State Board of Education. The member appointed under this |
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subsection [These members] must be a person [persons] who has |
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[have] demonstrated financial expertise, has [have] worked in |
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private business or industry, and has [have] broad investment |
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experience, preferably in investment of pension funds. |
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SECTION 5. Sections 825.0032(a) and (b), Government Code, |
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are amended to read as follows: |
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(a) Except as provided by Subsection (b), a person is not |
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eligible for appointment or election to the board of trustees if the |
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person or the person's spouse: |
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(1) is employed by or participates in the management |
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of a business entity or other organization receiving funds from the |
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retirement system; |
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(2) owns or controls, directly or indirectly, more |
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than a 10 percent interest in a business entity or other |
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organization receiving funds from the retirement system; or |
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(3) uses or receives a substantial amount of tangible |
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goods, services, or funds from the retirement system, other than |
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compensation or reimbursement authorized by law for board of |
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trustees membership, attendance, or expenses. |
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(b) Subsection (a) does not apply to employment by, |
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participation in the management of, or ownership or control of an |
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interest in a business entity or other organization on behalf of the |
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retirement system. Subsection (a)(3) does not apply to a person who |
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is appointed or elected [nominated for appointment] under Section |
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825.002(c), (d), or (e). |
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SECTION 6. Sections 825.0041(a) and (c), Government Code, |
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are amended to read as follows: |
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(a) A person who is appointed or elected to and qualifies |
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for office as a member of the board of trustees may not vote, |
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deliberate, or be counted as a member in attendance at a meeting of |
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the board until the person completes a training program that |
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complies with this section. |
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(c) A person appointed or elected to the board of trustees |
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is entitled to reimbursement under Section 825.007 for the travel |
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expenses incurred in attending the training program regardless of |
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whether the attendance at the program occurs before or after |
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the person qualifies for office. |
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SECTION 7. Sections 825.010(a) and (c), Government Code, |
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are amended to read as follows: |
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(a) It is a ground for removal from the board of trustees |
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that a trustee: |
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(1) does not have at the time of taking office the |
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qualifications required for the trustee's position; |
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(2) does not maintain during service on the board the |
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qualifications required for the trustee's position; |
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(3) violates a prohibition established by Section |
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825.002(b) or 825.0032 applicable to the trustee; |
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(4) cannot because of illness or disability discharge |
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the trustee's duties for a substantial part of the term for which |
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the trustee is appointed or elected; or |
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(5) is absent from more than half of the regularly |
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scheduled board meetings that the person is eligible to attend |
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during a calendar year without an excuse approved by a majority vote |
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of the board. |
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(c) If the executive director has knowledge that a potential |
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ground for removal exists, the executive director shall notify the |
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presiding officer of the board of trustees of the ground. The |
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presiding officer shall then notify the governor [appropriate
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appointing officer] and the attorney general that a potential |
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ground for removal exists. If the potential ground for removal |
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involves the presiding officer, the executive director shall notify |
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the next highest officer of the board, who shall notify the governor |
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[appropriate appointing officer] and the attorney general that a |
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potential ground for removal exists. |
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SECTION 8. (a) This Act applies only to the appointment or |
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election of a trustee of the board of trustees of the Teacher |
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Retirement System of Texas that occurs on or after the effective |
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date of this Act. |
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(b) A person who is serving as a trustee immediately before |
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the effective date of this Act may complete the trustee's term of |
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office, and the trustee's qualifications for serving as a trustee |
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are governed by the law in effect immediately before the effective |
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date of this Act until the date that trustee's term expires. |
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SECTION 9. This Act takes effect September 1, 2009. |