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A BILL TO BE ENTITLED
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AN ACT
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relating to the composition and appointment of the board of |
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directors of a corporation to which the board of regents of The |
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University of Texas System delegates investment authority for the |
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permanent university fund or other funds under the control of the |
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board of regents, and to the administration of that corporation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 66.08, Education Code, is amended by |
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amending Subsections (d) and (e) and adding Subsections (d-1) and |
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(i-1) to read as follows: |
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(d) The board of directors of the corporation shall have |
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seven [nine] members appointed as follows: |
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(1) three members appointed by the board of regents of |
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The University of Texas System; |
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(2) one member appointed by the board of regents of The |
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Texas A&M University System; and |
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(3) three members appointed by the governor with the |
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advice and consent of the senate. [The board shall appoint and
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remove all members of the board of directors of the corporation. At
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least three members of the board and the chancellor of The
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University of Texas System shall be appointed as directors.] |
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(e) Each member of the board of directors of the corporation |
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is subject to removal and replacement by the appointing entity. The |
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governor may remove a member appointed by the governor without the |
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advice and consent of the senate but may not replace the member |
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without the advice and consent of the senate. [The board shall
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select one or more of the members of the board of directors of the
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corporation from a list of candidates with substantial background
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and expertise in investments that is submitted to the board by the
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board of regents of The Texas A&M University System.] |
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(i-1) The corporation may not pay a director, officer, or |
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employee of the corporation a bonus, reward, or other incentive |
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payment based on the performance of the director, officer, or |
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employee, including the performance of an investment made or |
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recommended by the director, officer, or employee, unless the |
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payment is approved in writing by the Legislative Budget Board, the |
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governor, and the attorney general. |
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SECTION 2. (a) Not later than January 1, 2010, the |
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appropriate appointing entities shall appoint the members of the |
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board of directors of a corporation established under Section |
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66.08, Education Code, in accordance with the change in law made by |
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this Act regarding the composition of the board of directors. The |
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members of the board of directors appointed under this subsection |
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take office January 1, 2010. On that date, the incumbent members of |
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the board of directors are considered removed from the board of |
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directors. |
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(b) Until January 1, 2010, the composition of the board of |
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directors of a corporation established under Section 66.08, |
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Education Code, is as provided by the law in effect immediately |
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before the effective date of this Act. |
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SECTION 3. 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. |