By: Miller of Comal, et al. H.B. No. 2656

(Senate Sponsor - Duncan)

(In the Senate - Received from the House May 12, 2009; May 13, 2009, read first time and referred to Committee on State Affairs; May 23, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 8, Nays 0; May 23, 2009, sent to printer.)

COMMITTEE SUBSTITUTE FOR H.B. No. 2656 By: Duncan

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. Sections 825.002(a) and (d), Government Code, are amended to read as follows:

(a) The governor shall appoint, with the advice and consent of the senate and as provided by this section, eight [seven] members of the board of trustees.

(d) The governor shall appoint two members [one member] of the board from a slate of three former members of the retirement system who have retired and are receiving benefits from the retirement system 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. The two members hold office for staggered terms.

SECTION 2. Section 825.003, Government Code, is amended to read as follows:

Sec. 825.003. TRUSTEES APPOINTED BY GOVERNOR FROM NOMINEES OF BOARD OF EDUCATION. The governor shall appoint one member [two members] of the board of trustees, subject to confirmation by two-thirds of the senate, from lists of nominees submitted by the State Board of Education. The member appointed under this subsection [These members] must be a person [persons] who has [have] demonstrated financial expertise, has [have] worked in private business or industry, and has [have] broad investment experience, preferably in investment of pension funds.

SECTION 3. 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(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

(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 4. (a) This Act applies only to the appointment 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 5. This Act takes effect September 1, 2009.

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