81R8374 TJS-D

By: Hunter H.B. No. 3972

A BILL TO BE ENTITLED

AN ACT

relating to the election of certain members 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 board appointed or elected under this subtitle to administer the retirement system.

SECTION 2. Subchapter A, Chapter 825, Government Code, is amended by adding Section 825.0021 to read as follows:

Sec. 825.0021. ELECTED TRUSTEES. (a) The retirement system shall provide for the direct election of two persons to serve on the board of trustees who are former members of the retirement system who have retired and are receiving benefits from the retirement system, and who shall be elected by former members of the retirement system who have retired and are receiving benefits from the retirement system.

(b) The two persons elected under Subsection (a) hold office for staggered terms.

(c) The board of trustees by rule shall adopt procedures to implement this section. The procedures must include a method for filling a vacancy in an elected position.

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 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 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 nominated for appointment under Section 825.002(c), (d), or (e) or elected under Section 825.0021.

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 appointed from a slate of members nominated by members of the retirement system under Section 825.002 or elected by members of the retirement system under Section 825.0021 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 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;

(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 the ground. The presiding officer shall then notify the appropriate appointing officer, if any, 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 appropriate appointing officer, if any, and the attorney general that a potential ground for removal exists.

SECTION 7. Section 825.003, Government Code, is repealed.

SECTION 8. (a) In this section, "board" means the board of trustees of the Teacher Retirement System of Texas.

(b) The board shall adopt procedures to implement Section 825.0021(a), Government Code, as added by this Act, not later than December 31, 2009.

(c) The procedures adopted by the board shall facilitate the elections required under Section 825.0021(a), Government Code, as added by this Act, so that the first elections are conducted not later than May 1, 2010.

(d) A person elected at the first election under Section 825.0021(a), Government Code, as added by this Act, shall serve a term beginning as soon as practicable after the date of the election and taking the oath of office. One person elected under Section 825.0021(a) shall serve a term that expires August 31, 2013, and the other person elected under Section 825.0021(a) shall serve a term that expires August 31, 2015, as determined according to the board's procedures adopted under Section 825.0021(c), Government Code, as added by this Act.

(e) Not later than the 10th day after the date of the first election held under Section 825.0021, Government Code, as added by this Act, the board shall post the election results on the Teacher Retirement System of Texas publicly accessible Internet website.

SECTION 9. The term of a person serving on the board of trustees of the Teacher Retirement System of Texas on December 1, 2009, and who was appointed to that position under Section 825.003, Government Code, before the repeal of that section by this Act expires on the date on which a person elected to serve on the board at the first election held under Section 825.0021, Government Code, as added by this Act, takes the oath of office.

SECTION 10. This Act takes effect September 1, 2009.