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A BILL TO BE ENTITLED
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AN ACT
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relating to the selection of certain members of the board of |
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trustees of the Teacher 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 board appointed or |
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elected under this subtitle to administer the retirement system. |
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SECTION 2. Section 825.002, Government Code, is amended to |
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read as follows: |
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Sec. 825.002. APPOINTMENT AND ELECTION OF TRUSTEES |
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[APPOINTED BY GOVERNOR]. (a) The governor shall appoint, with |
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the advice and consent of the senate and as provided by Subsection |
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(b) [this section], two [seven] members of the board of trustees. |
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(b) The members appointed to the board of trustees by the |
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governor under Subsection (a) shall [appoint three members of the
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board to] hold office for staggered terms that expire [, with the
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term of one trustee expiring] on August 31 of [each] odd-numbered |
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years [year]. These members must be persons who have demonstrated |
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financial expertise, who have worked in private business or |
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industry, and who have broad investment experience, preferably in |
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investment of pension funds. None of the members appointed under |
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Subsection (a) [this subsection] may be a member or annuitant of the |
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retirement system. |
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(c) Members of the retirement system whose most recent |
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credited service was performed for a public school district [The
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governor] shall elect [appoint] two members of the board who must be |
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[from a slate of three] members of the retirement system and [who
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are] currently employed by a public school district [and who have
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been nominated in accordance with Subsection (f) by the members of
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the retirement system whose most recent credited service was
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performed for a public school district]. The two members hold |
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office for staggered terms. |
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(d) Persons who have retired and are receiving benefits from |
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the retirement system [The governor] shall elect [appoint] one |
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member of the board who must be a [from a slate of three] former |
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member [members] of the retirement system who is [have] retired and |
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[are] receiving benefits from the retirement system [and who have
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been nominated in accordance with Subsections (f) and (g) by the
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persons who have retired and are receiving benefits from the
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retirement system]. |
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(e) Members of the retirement system whose most recent |
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credited service was performed for an institution of higher |
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education [The governor] shall elect [appoint] one member who must |
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be a member [from a slate of three members] of the retirement system |
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and [who are] currently employed by an institution of higher |
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education [and who have been nominated in accordance with
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Subsection (f) by the members of the retirement system whose most
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recent credited service was performed for an institution of higher
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education]. |
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(f) Persons eligible to elect trustees [considered for
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nomination] under Subsections [Subsection] (c), (d), and [or] (e) |
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shall collectively elect one member of the board of trustees who is |
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otherwise eligible for election to the board under any of those |
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subsections [must have been nominated by written ballot at an
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election conducted under rules adopted by the board of trustees]. |
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(g) The board of trustees shall adopt rules for the election |
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of trustees under Subsections (c), (d), (e), and (f) [To provide
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for the nomination of persons for appointment under Subsection (d),
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the board shall send to each retiree of the retirement system:
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[(1)
notice of the deadline for filing as a candidate
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for nomination;
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[(2)
information on procedures to follow in filing as
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a candidate; and
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[(3) a written ballot]. |
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SECTION 3. 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 if the person or |
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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 |
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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 elected [nominated for appointment] under Section 825.002(c), |
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(d), [or] (e), or (f). |
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SECTION 4. 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 5. Section 825.009(a), Government Code, is amended |
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to read as follows: |
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(a) A trustee elected [appointed from a slate of members
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nominated by members of the retirement system] under Section |
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825.002 is entitled to leave with pay from the trustee's public |
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school employer to attend to the official business of the |
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retirement system. |
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SECTION 6. 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 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; |
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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 the ground. The presiding officer |
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shall then notify the appropriate appointing officer, if any, and |
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the attorney general that a potential ground for removal exists. If |
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the potential ground for removal involves the presiding officer, |
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the executive director shall notify the next highest officer of the |
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board, who shall notify the appropriate appointing officer, if any, |
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and the attorney general that a potential ground for removal |
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exists. |
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SECTION 7. (a) Section 825.002, Government Code, as |
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amended by this Act, applies only to the appointment or election of |
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a member of the board of trustees of the Teacher Retirement System |
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of Texas that occurs on or after the effective date of this Act. |
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(b) Except as provided by Subsection (c) of this section, |
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the change in the manner of appointing or electing members of the |
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board of trustees of the Teacher Retirement System of Texas does not |
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affect the qualifications for serving or the term of office of |
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members serving on the board immediately before the effective date |
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of this Act. |
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(c) The governor may not appoint a successor to a member of |
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the board of trustees of the Teacher Retirement System of Texas who |
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was appointed under Section 825.002(a), Government Code, and whose |
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term expires August 31, 2011. |
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(d) The board of trustees of the Teacher Retirement System |
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of Texas shall ensure that the first election under Section |
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825.002(f), Government Code, as amended by this Act, is conducted |
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so that the term of the member elected at that election begins |
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September 1, 2011. |
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SECTION 8. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |