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A BILL TO BE ENTITLED
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AN ACT
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relating to state fiscal matters; providing the authority to issue |
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bonds; providing civil penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 55, Education Code, is |
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amended by adding Section 55.17721 to read as follows: |
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Sec. 55.17721. THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT |
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GALVESTON. (a) In addition to the other authority granted by this |
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subchapter and subject to the other provisions of this section, the |
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board of regents of The University of Texas System may acquire, |
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purchase, construct, improve, renovate, enlarge, or equip |
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property, buildings, structures, facilities, roads, or related |
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infrastructure for The University of Texas Medical Branch at |
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Galveston for any purpose reasonably necessary to assist the |
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institution to recover from any damage or other impact caused by |
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Hurricane Ike, to be financed by the issuance of bonds in accordance |
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with this subchapter, including bonds issued in accordance with a |
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systemwide revenue financing program and secured as provided by |
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that program, in an aggregate principal amount not to exceed $150 |
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million. |
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(b) The board may pledge irrevocably to the payment of the |
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bonds authorized by this section all or any part of the revenue |
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funds of an institution, branch, or entity of The University of |
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Texas System, including student tuition charges. The amount of a |
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pledge made under this subsection may not be reduced or abrogated |
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while the bonds for which the pledge is made, or bonds issued to |
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refund those bonds, are outstanding. |
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(c) If sufficient funds are not available to the board to |
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meet its obligations under this section, the board may transfer |
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funds among institutions, branches, and entities of The University |
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of Texas System to ensure the most equitable and efficient |
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allocation of available resources for each institution, branch, or |
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entity to carry out its duties and purposes. |
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(d) Any transfer of funds to the board pursuant to an |
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appropriation of state funds to the board or The University of Texas |
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Medical Branch at Galveston for the purpose of reimbursing the |
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board for all or part of the debt service on bonds issued under this |
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section is subject to the prior approval of the Legislative Budget |
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Board. In determining whether to approve a transfer of state funds |
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for that purpose, the Legislative Budget Board shall consider: |
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(1) whether the commissioners court of the county in |
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which the medical branch is located has entered into an agreement |
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with the board under which the county agrees to reimburse the board |
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for all or part of any otherwise unreimbursed costs incurred by the |
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medical branch to provide health care services to individuals who |
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are residents of the county and whose net family income is not more |
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than 100 percent of the federal poverty level; or |
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(2) whether the county in which the medical branch is |
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located or a hospital district that includes that county imposes an |
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ad valorem tax for health care purposes. |
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(e) For purposes of Subsection (d), the county of residence |
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of an individual is determined in the same manner as provided by |
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Chapter 61, Health and Safety Code. |
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SECTION 2. Subsection (e), Section 61.0572, Education Code, |
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is amended to read as follows: |
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(e) Approval of the board is not required to acquire real |
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property that is financed by bonds issued under Section 55.17(e)(3) |
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or (4), 55.1713-55.1718, 55.1721-55.1728, 55.1735(a)(1), 55.174, |
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55.1742, 55.1743, 55.1744, 55.1751-55.17592, [or] 55.1768, or |
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55.17721, except that the board shall review all real property to be |
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financed by bonds issued under those sections to determine whether |
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the property meets the standards adopted by the board for cost, |
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efficiency, and space use. If the property does not meet those |
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standards, the board shall notify the governor, the lieutenant |
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governor, the speaker of the house of representatives, and the |
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Legislative Budget Board. |
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SECTION 3. Subsection (b), Section 61.058, Education Code, |
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is amended to read as follows: |
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(b) This section does not apply to construction, repair, or |
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rehabilitation financed by bonds issued under Section 55.17(e)(3) |
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or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174, 55.1742, |
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55.1743, 55.1744, 55.1751-55.17592, [or] 55.1768, or 55.17721, |
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except that the board shall review all construction, repair, or |
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rehabilitation to be financed by bonds issued under those sections |
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to determine whether the construction, rehabilitation, or repair |
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meets the standards adopted by board rule for cost, efficiency, and |
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space use. If the construction, rehabilitation, or repair does not |
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meet those standards, the board shall notify the governor, the |
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lieutenant governor, the speaker of the house of representatives, |
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and the Legislative Budget Board. |
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SECTION 4. Section 66.08, Education Code, is amended by |
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amending Subsections (d) and (e) and adding Subsection (i-1) to |
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read as follows: |
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(d) The board of directors of the corporation shall have |
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nine members. The board shall appoint and remove all members of the |
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board of directors of the corporation. Three [At least three] |
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members of the board [and the chancellor] of The University of Texas |
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System shall be appointed as directors. The board shall appoint |
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four other directors with substantial background and expertise in |
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investments who are not: |
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(1) members of the board of regents or employees of The |
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University of Texas System or The Texas A&M University System; |
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(2) employees of a component institution in The |
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University of Texas System or The Texas A&M University System; or |
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(3) employees or contractors of the corporation. |
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(e) The board shall appoint two [select one or more of the] |
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members of the board of directors of the corporation [from a list of
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candidates with substantial background and expertise in
|
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investments that is] submitted to the board by the board of regents |
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of The Texas A&M University System. |
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(i-1) The corporation shall provide to the Legislative |
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Budget Board and the governor written notice of the terms of any |
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payment to or agreement to pay a director, officer, or employee of |
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the corporation a bonus, reward, or other incentive payment based |
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on the performance of the director, officer, or employee, including |
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the performance of an investment made or recommended by the |
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director, officer, or employee. The notice must be provided to the |
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Legislative Budget Board and the governor not later than seven days |
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after the earlier of the date the board makes the payment or enters |
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into the agreement. If notice of an agreement is provided not later |
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than seven days after the board enters into the agreement, the board |
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is not required to provide notice after payments are made under the |
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agreement. |
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SECTION 5. Section 321.013, Government Code, is amended by |
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adding Subsection (k) to read as follows: |
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(k) The State Auditor may conduct audits of special water |
|
authorities, as specified in the audit plan. |
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SECTION 6. Subchapter B, Chapter 403, Government Code, is |
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amended by adding Section 403.0122 to read as follows: |
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Sec. 403.0122. DEPOSIT OF AMERICAN RECOVERY AND |
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REINVESTMENT ACT FUNDS. (a) The American Recovery and |
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Reinvestment Act fund (ARRA fund) is created as a special fund in |
|
the state treasury outside the general revenue fund. |
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Notwithstanding any state law to the contrary and except as |
|
otherwise provided by federal law, state agencies that receive |
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money under the American Recovery and Reinvestment Act of 2009 |
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(Pub. L. No. 111-5) (ARRA) shall deposit such money in the ARRA fund |
|
as the comptroller determines is necessary to hold and account for |
|
ARRA funds. |
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(b) Additional funds may be deposited into the ARRA fund as |
|
appropriated by the legislature, required by federal law, or as the |
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comptroller determines is necessary to account for ARRA related |
|
funds. Funds deposited into the ARRA fund may only be used for the |
|
purposes identified in the ARRA to stimulate the economy, including |
|
aid for unemployment, welfare, education, health, and |
|
infrastructure. |
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(c) Agencies shall transfer amounts between the ARRA fund |
|
and other accounts and funds as the comptroller determines is |
|
necessary to properly account for ARRA funds. This section does not |
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affect the authority of the comptroller to establish and use |
|
accounts necessary to manage and account for revenues and |
|
expenditures. |
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(d) Interest earned on funds deposited into the ARRA fund is |
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exempt from Section 404.071, and shall be retained in the fund. |
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(e) The comptroller may issue guidelines for state agencies |
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regarding the implementation of the provisions of this section. |
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SECTION 7. Subsection (d), Section 403.0551, Government |
|
Code, is amended to read as follows: |
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(d) This section does not authorize the comptroller to |
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deduct the amount of a state employee's indebtedness to a state |
|
agency from any amount of compensation owed by the agency to the |
|
employee, the employee's successor, or the assignee of the employee |
|
or successor. In this subsection, "compensation" has the meaning |
|
assigned by Section 403.055, and ["compensation,"] "indebtedness," |
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"state agency," "state employee," and "successor" have the meanings |
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assigned by Section 666.001. |
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SECTION 8. Subsection (c), Section 495.025, Government |
|
Code, as added by Chapter 100 (S.B. 1580), Acts of the 80th |
|
Legislature, Regular Session, 2007, is reenacted to read as |
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follows: |
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(c) The department shall transfer 50 percent of all |
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commissions paid to the department by a vendor under this section to |
|
the compensation to victims of crime fund established by Subchapter |
|
B, Chapter 56, Code of Criminal Procedure, and the other 50 percent |
|
to the credit of the undedicated portion of the general revenue |
|
fund, except that the department shall transfer the first $10 |
|
million of the commissions collected in any given year under a |
|
contract awarded under this section to the compensation to victims |
|
of crime fund established by Subchapter B, Chapter 56, Code of |
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Criminal Procedure. This section does not reduce any |
|
appropriation to the department. |
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SECTION 9. Subsection (a), Section 661.062, Government |
|
Code, is amended to read as follows: |
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(a) A state employee who, at any time during the employee's |
|
lifetime, has accrued six months of continuous state employment and |
|
who resigns, is dismissed, or otherwise separates from state |
|
employment by a state agency other than an institution of higher |
|
education is entitled to be paid for the accrued balance of the |
|
employee's vacation time as of the date of separation, if the |
|
individual is not reemployed by the state in a position under which |
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the employee accrues vacation leave for one calendar month [during
|
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the 30-day period] immediately following the date of separation |
|
from state employment. A state employee who, at any time during the |
|
employee's lifetime, has accrued six months of continuous state |
|
employment and who resigns, is dismissed, or otherwise separates |
|
from state employment by an institution of higher education is |
|
entitled to be paid for the accrued balance of the employee's |
|
vacation time as of the date of separation. |
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SECTION 10. The heading to Chapter 801, Government Code, is |
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amended to read as follows: |
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CHAPTER 801. STATE PENSION AND INVESTMENT REVIEW BOARD |
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SECTION 11. Subdivision (1), Section 801.001, Government |
|
Code, is amended to read as follows: |
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(1) "Board" means the State Pension and Investment |
|
Review Board. |
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SECTION 12. Section 801.101, Government Code, is amended to |
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read as follows: |
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Sec. 801.101. PENSION AND INVESTMENT REVIEW BOARD. The |
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State Pension and Investment Review Board is an agency of the state. |
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SECTION 13. Subsection (a), Section 801.102, Government |
|
Code, is amended to read as follows: |
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(a) The board is composed of seven [nine] members. |
|
SECTION 14. Section 801.103, Government Code, is amended to |
|
read as follows: |
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Sec. 801.103. MEMBERS APPOINTED BY GOVERNOR. (a) The |
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governor shall appoint, with the advice and consent of the senate, |
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five [seven] members to the board. |
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(b) The governor shall appoint to the board: |
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(1) three persons who have experience in the fields of |
|
securities investment, pension administration, [or] pension law, |
|
institutional investment, investment risk management, or |
|
institutional audits but who are not members or retirees of a public |
|
retirement system; |
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(2) one person who is a fellow of the Society of |
|
Actuaries, a member of the American Academy of Actuaries, or an |
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enrolled actuary under the federal Employee Retirement Income |
|
Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.); and |
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(3) [one person who has experience in the field of
|
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governmental finance;
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[(4)] one person who: |
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(A) is a contributing member of a public |
|
retirement system; or |
|
(B) [and
|
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[(5) one person who] is receiving retirement benefits |
|
from a public retirement system. |
|
SECTION 15. Section 801.104, Government Code, is amended to |
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read as follows: |
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Sec. 801.104. MEMBERS APPOINTED BY OTHERS. (a) The |
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lieutenant governor shall appoint one member to the board [one
|
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member of the senate]. |
|
(b) The speaker of the house of representatives shall |
|
appoint one member to the board [one member of the house]. |
|
(c) Each person appointed to the board under this section |
|
must have experience in the field of securities investment, pension |
|
administration, pension law, institutional investment, investment |
|
risk management, or institutional audits. |
|
SECTION 16. Section 801.106, Government Code, is amended to |
|
read as follows: |
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Sec. 801.106. TERMS OF OFFICE. Members of the board hold |
|
office for staggered terms of six years, with the terms of two or |
|
three members expiring on January 31 of each odd-numbered year. |
|
SECTION 17. Section 801.107, Government Code, is amended to |
|
read as follows: |
|
Sec. 801.107. SUNSET PROVISION. The State Pension and |
|
Investment Review Board is subject to Chapter 325 (Texas Sunset |
|
Act). Unless continued in existence as provided by that chapter, |
|
the board is abolished and this chapter expires September 1, 2013. |
|
SECTION 18. The heading to Section 801.113, Government |
|
Code, is amended to read as follows: |
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Sec. 801.113. PROVISION OF CERTAIN SERVICES [FUND]. |
|
SECTION 19. Subsection (e), Section 801.113, Government |
|
Code, is amended to read as follows: |
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(e) The board is authorized to conduct training sessions, |
|
schools, or other educational activities for trustees and |
|
administrators of public retirement systems. The board may also |
|
furnish other appropriate services such as actuarial studies or |
|
other requirements of systems and may establish appropriate fees |
|
for these activities and services. [The fees may be based on
|
|
whether or not the trustees, administrators, or systems contribute
|
|
to the State Pension Review Board fund under Subsection (c) of this
|
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section. The net proceeds of these fees shall be deposited in the
|
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fund.] |
|
SECTION 20. Subsections (b) and (c), Section 801.201, |
|
Government Code, are amended to read as follows: |
|
(b) For the purpose of performing its duties under Section |
|
801.202(1) or (2), the board by rule may require clarification of |
|
information provided by a public retirement system or other entity |
|
subject to Subchapter D in a report that is required by law and is |
|
required to be filed with the board. [A rule adopted under this
|
|
subsection may not be enforced against a public retirement system
|
|
if compliance with the rule would cause the system to incur a major
|
|
expense.] |
|
(c) The board by rule shall: |
|
(1) adopt actuarial guidelines that may be used by |
|
public retirement systems; |
|
(2) adopt a brief standard form that will assist the |
|
board in efficiently determining the actuarial soundness, if |
|
applicable, and current financial condition of a public retirement |
|
system or other entity subject to Subchapter D; and |
|
(3) [(2)] require that a retirement system or other |
|
entity subject to Subchapter D submitting information required for |
|
the review or study described under Section 801.202(1) or (2) |
|
include the form with the submission. |
|
SECTION 21. Section 801.202, Government Code, is amended to |
|
read as follows: |
|
Sec. 801.202. GENERAL DUTIES. The board shall: |
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(1) conduct a continuing review of: |
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(A) public retirement systems, compiling and |
|
comparing information about benefits, creditable service, |
|
financing, and administration of systems; and |
|
(B) the investment practices of public |
|
retirement systems and other entities subject to Subchapter D; |
|
(2) conduct intensive studies of potential or existing |
|
problems that threaten [the actuarial soundness of] or inhibit: |
|
(A) the financial condition or actuarial |
|
soundness of public funds managed or invested by an entity subject |
|
to Subchapter D; or |
|
(B) an equitable distribution of benefits in one |
|
or more public retirement systems; |
|
(3) provide information and technical assistance on |
|
pension planning to public retirement systems on request; [and] |
|
(4) review and document whether the board believes an |
|
entity subject to Subchapter D is investing funds in compliance |
|
with: |
|
(A) the entity's investment strategy; and |
|
(B) applicable law governing the entity's |
|
investments; and |
|
(5) recommend policies, practices, and legislation to |
|
public retirement systems and other entities subject to Subchapter |
|
D and appropriate governmental entities. |
|
SECTION 22. Subsection (a), Section 801.203, Government |
|
Code, is amended to read as follows: |
|
(a) The board shall present to the legislature and the |
|
governor, in November of each even-numbered year, a public report |
|
explaining the work and findings of the board during the preceding |
|
two-year period and including drafts or recommendations of any |
|
legislation relating to public retirement systems or other entities |
|
subject to Subchapter D that the board finds advisable. |
|
SECTION 23. Section 801.204, Government Code, is amended to |
|
read as follows: |
|
Sec. 801.204. INSPECTION OF RECORDS. To the extent it is |
|
necessary to perform [In performing] its functions, the board may |
|
inspect the books, records, or accounts of a public retirement |
|
system or another entity subject to Subchapter D during business |
|
hours of the system. |
|
SECTION 24. Chapter 801, Government Code, is amended by |
|
adding Subchapter D to read as follows: |
|
SUBCHAPTER D. BOARD INVESTMENT OVERSIGHT |
|
Sec. 801.301. APPLICABILITY. (a) This subchapter applies |
|
only to the investment of: |
|
(1) public funds by: |
|
(A) the comptroller; |
|
(B) the Employees Retirement System of Texas, |
|
including a retirement system administered by that system; |
|
(C) the Teacher Retirement System of Texas; |
|
(D) the Texas Municipal Retirement System; |
|
(E) the Texas County and District Retirement |
|
System; and |
|
(F) the Texas Emergency Services Retirement |
|
System; |
|
(2) the permanent university fund by the board of |
|
regents of The University of Texas System or any entity acting on |
|
behalf of the board of regents, including a nonprofit corporation |
|
acting under Section 66.08, Education Code; and |
|
(3) the permanent school fund by the State Board of |
|
Education or any entity acting on behalf of the State Board of |
|
Education, including a nonprofit corporation acting under Section |
|
43.006, Education Code. |
|
(b) For purposes of this subchapter, a reference to "public |
|
retirement system" means a public retirement system subject to this |
|
subchapter. |
|
Sec. 801.302. ANNUAL REPORT TO BOARD. An entity subject to |
|
this subchapter shall, not later than six months after the last day |
|
of the fiscal year under which the entity operates or, if a public |
|
retirement system, the plan year under which the entity operates, |
|
file with the board and post on the entity's Internet website |
|
information that the board determines is necessary to perform the |
|
board's duties under Section 801.202 unless the information is |
|
confidential under law. |
|
Sec. 801.303. REPORT ON INVESTMENT STRATEGY. (a) An |
|
entity subject to this subchapter shall: |
|
(1) develop and adopt a written investment strategy; |
|
(2) file a copy of the strategy with the board not |
|
later than the 90th day after the date the strategy is adopted; and |
|
(3) file a copy of each change to the strategy with the |
|
board not later than the 90th day after the change is adopted. |
|
(b) A report under this section may be combined with any |
|
other report required by this chapter or Chapter 802. |
|
Sec. 801.304. TIMELY SUBMISSION OF CERTAIN REPORTS AND |
|
RESPONSES REQUIRED. (a) The presiding officer of an entity |
|
subject to this subchapter or the governing body of an entity |
|
subject to this subchapter is responsible for ensuring that a |
|
report or a response to a request for information made by the board |
|
for the purpose of performing the board's duties under Section |
|
801.202 is filed timely with the board. |
|
(b) It is grounds for removal by the appropriate appointing |
|
officer if the presiding officer of an entity subject to this |
|
subchapter or the governing body of an entity subject to this |
|
subchapter consistently fails to timely submit a report or respond |
|
to a request for information under Subsection (a). |
|
(c) If the board determines that the presiding officer of an |
|
entity subject to this subchapter consistently fails to timely |
|
report or respond to a request for information under Subsection |
|
(a), the board shall notify the appropriate appointing officer, if |
|
any, the governor, if the governor is not the appropriate |
|
appointing officer, and the Legislative Budget Board of its |
|
determination. |
|
Sec. 801.305. CONTRACTS WITH INVESTMENT MANAGERS AND |
|
CERTAIN OTHERS. A contract with an investment manager or other |
|
person to provide services to an entity subject to this subchapter |
|
relating to the management and investment of public funds for or on |
|
behalf of the entity is subject to review by the board regarding the |
|
fees charged and paid by the subject entity and the services |
|
rendered to the entity in consideration for the fees. |
|
Sec. 801.306. DISCLOSURE OF CERTAIN POTENTIAL CONFLICTS OF |
|
INTEREST; ANNUAL FILING. (a) This section applies to: |
|
(1) a member of the governing body of a public |
|
retirement system subject to this subchapter; |
|
(2) an investment manager for a public retirement |
|
system appointed by contract; |
|
(3) a member of the board of regents of The University |
|
of Texas System; |
|
(4) the officers and directors of a nonprofit |
|
corporation under contract with the board of regents of The |
|
University of Texas System under Section 66.08, Education Code, to |
|
invest the funds of the permanent university fund on behalf of the |
|
board of regents; |
|
(5) a member of the State Board of Education; |
|
(6) the officers and directors of a nonprofit |
|
corporation acting under contract with the State Board of Education |
|
to invest the funds of the permanent school fund under Section |
|
43.006, Education Code; and |
|
(7) any private professional investment manager who |
|
has entered into a contract with the comptroller under Section |
|
404.024(k) to assist the comptroller in investing public funds. |
|
(b) A person to whom this section applies and who has a |
|
business, commercial, or other relationship that a reasonable |
|
person would find likely to materially diminish the person's |
|
independence of judgment in the performance of the person's |
|
responsibilities with respect to the management or investment of |
|
public funds for or on behalf of an entity subject to this |
|
subchapter shall immediately disclose the relationship in writing |
|
to the entity. |
|
(c) If a person described by Subsection (a)(1) or (3) |
|
intentionally fails to disclose a relationship under Subsection |
|
(b), it is a ground for removal from the governing body of the |
|
entity on which the person serves. |
|
(d) If a person described by Subsection (a)(2), (4), (6), |
|
(7), or (8) intentionally fails to disclose a relationship under |
|
Subsection (b): |
|
(1) the contract is voidable by the entity; and |
|
(2) the governing body of the entity may enter an order |
|
declaring the person ineligible to contract for business relating |
|
to the management or investment of public funds for or on behalf of |
|
the entity. |
|
(e) At least annually and not later than a date specified by |
|
the entity, a person to whom this section applies shall file a |
|
statement with the entity stating that the person is aware that the |
|
person is required to disclose material conflicts of interest under |
|
this section and that the person is in compliance with this section. |
|
Sec. 801.307. PROHIBITION AGAINST ACCEPTANCE OF CERTAIN |
|
GIFTS. In any 12-month period, the comptroller or a person who is a |
|
member of the governing body of a public retirement system, the |
|
board of regents of The University of Texas System, or the State |
|
Board of Education or an employee of an entity subject to this |
|
subchapter employed in a "bona fide executive, administrative, or |
|
professional capacity," as that phrase is used for purposes of |
|
establishing an exemption to the overtime provisions of the federal |
|
Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), |
|
may not accept a gift or gifts, the total value of which is more than |
|
$250, including food, entertainment, and a promised future benefit, |
|
from another person doing business with or seeking to do business |
|
with the entity. |
|
Sec. 801.308. PROHIBITED CONTRACTS. A public retirement |
|
system, the board of regents of The University of Texas System, or |
|
the State Board of Education may not directly or indirectly enter |
|
into a contract with a former member of the governing body of a |
|
public retirement system, the board of regents of The University of |
|
Texas System, or the State Board of Education, respectively, to |
|
provide services relating to the management and investment of |
|
public funds before the second anniversary of the date the person |
|
ceases to be a member of the body or board, as applicable. |
|
Sec. 801.309. CIVIL PENALTY. (a) A person who commits |
|
fraud, theft, embezzlement, fraudulent conversion, unlawful |
|
appropriation, or misapplication of property in relation to a |
|
service provided by the person to an entity subject to this |
|
subchapter is liable to this state for a civil penalty in an amount |
|
not to exceed $250,000 for each offense. |
|
(b) The attorney general may bring an action to recover the |
|
civil penalty imposed under this section. |
|
(c) The penalty under this section is in addition to any |
|
other remedy provided by law. |
|
Sec. 801.310. INVESTIGATION OF CERTAIN COMPLAINTS; |
|
ASSISTANCE OF ATTORNEY GENERAL. (a) The board shall adopt rules |
|
and procedures for receiving and investigating a complaint against |
|
a person who provides management or investment services to an |
|
entity subject to this subchapter alleging that the person: |
|
(1) violated or may have violated Section 801.306 or |
|
another applicable conflict of interest provision; or |
|
(2) has been or may have been involved in criminal |
|
conduct relating to the services provided by the person to the |
|
entity. |
|
(b) The board or the attorney general may, without receiving |
|
a complaint, initiate an investigation under this section if the |
|
board or the attorney general, as applicable, determines an |
|
investigation is appropriate. |
|
(c) The board may enter into a memorandum of understanding |
|
with the attorney general to assist in an investigation under this |
|
section. The memorandum must specify the type, scope, and format of |
|
the investigative assistance provided by the attorney general. |
|
(d) If the board or the attorney general determines that a |
|
criminal offense may have been committed, the board or the attorney |
|
general, as applicable, shall refer the case to the appropriate law |
|
enforcement agency for prosecution. |
|
SECTION 25. Subdivision (1), Section 802.001, Government |
|
Code, is amended to read as follows: |
|
(1) "Board" means the State Pension and Investment |
|
Review Board. |
|
SECTION 26. Subsection (d), Section 802.003, Government |
|
Code, is amended to read as follows: |
|
(d) The State Pension and Investment Review Board may file |
|
an appropriate pleading, in the manner provided by this section for |
|
filing by an individual, for the purpose of enforcing a requirement |
|
of Subchapter B or C, other than a requirement of Section |
|
802.101(a), 802.101(d), 802.102, 802.103(a), or 802.104. |
|
SECTION 27. Subsection (c), Section 802.101, Government |
|
Code, is amended to read as follows: |
|
(c) The governing body of a public retirement system shall |
|
file with the State Pension and Investment Review Board a copy of |
|
each actuarial study and each separate report made as required by |
|
law. |
|
SECTION 28. Subsection (j), Section 802.1012, Government |
|
Code, is amended to read as follows: |
|
(j) The governmental entity shall: |
|
(1) maintain a copy of the final audit report at its |
|
main office for public inspection; |
|
(2) submit a copy of the final audit report to the |
|
public retirement system and the State Pension and Investment |
|
Review Board not later than the 30th day after the date the final |
|
audit report is received by the governmental entity; and |
|
(3) pay all costs associated with conducting the audit |
|
and preparing and distributing the report under this section. |
|
SECTION 29. Subchapter B, Chapter 802, Government Code, is |
|
amended by adding Section 802.1013 to read as follows: |
|
Sec. 802.1013. ACTUARIAL EXPERIENCE STUDIES. (a) In this |
|
section, "plan year" means the 12-month accounting period of the |
|
affected pension plan of a public retirement system subject to this |
|
section. |
|
(b) Subject to Subsection (c), the board may require a |
|
public retirement system with total assets the book value of which, |
|
as of the last day of the preceding plan year, is at least $100 |
|
million to conduct an actuarial experience study. |
|
(c) The board may not require a public retirement system to |
|
conduct more than one actuarial experience study every five years. |
|
(d) The board may adopt rules to implement this section. |
|
SECTION 30. Subsections (b) and (c), Section 802.103, |
|
Government Code, are amended to read as follows: |
|
(b) The governing body of a public retirement system shall, |
|
before the 211th day after the last day of the fiscal year under |
|
which the system operates, file with the State Pension and |
|
Investment Review Board a copy of each annual financial report it |
|
makes as required by law. |
|
(c) A public retirement system that is subject to Chapter |
|
125, Acts of the 45th Legislature, Regular Session, 1937 (Article |
|
6243e, Vernon's Texas Civil Statutes), and that has total assets |
|
with a book value, as of the last day of the fiscal year, of less |
|
than $50,000, may submit to the State Pension and Investment Review |
|
Board for that year, instead of the financial report otherwise |
|
required by this section to be published and submitted, a copy of |
|
the financial report it submits to the firemen's pension |
|
commissioner. |
|
SECTION 31. Subsection (a), Section 802.105, Government |
|
Code, is amended to read as follows: |
|
(a) Each public retirement system shall, before the 91st day |
|
after the date of its creation, register with the State Pension and |
|
Investment Review Board. |
|
SECTION 32. Subsection (h), Section 802.106, Government |
|
Code, is amended to read as follows: |
|
(h) A public retirement system shall submit to the State |
|
Pension and Investment Review Board copies of the summarized |
|
information required by Subsections (a) and (b). A system shall |
|
submit a copy of the information required by Subsection (a) before |
|
the 31st day after the date of publication and a copy of the |
|
information required by Subsection (b) before the 271st day after |
|
the date a change is adopted. |
|
SECTION 33. Section 802.107, Government Code, is amended to |
|
read as follows: |
|
Sec. 802.107. GENERAL PROVISIONS RELATING TO REPORTS. |
|
(a) A public retirement system shall maintain for public review at |
|
its main office and at such other locations as the retirement system |
|
considers appropriate copies of the most recent edition of each |
|
type of report or other information required by this chapter to be |
|
submitted to the State Pension and Investment Review Board unless |
|
the information is confidential under law. Public information |
|
required to be reported annually to the board may be posted on the |
|
retirement system's Internet website or on the website of the |
|
board. |
|
(b) Information required by this chapter to be submitted to |
|
the State Pension and Investment Review Board may be contained in |
|
one or more documents but must be submitted within the period |
|
provided by the provision requiring the information. |
|
SECTION 34. Subsection (d), Section 802.202, Government |
|
Code, is amended to read as follows: |
|
(d) The governing body of a public retirement system shall: |
|
(1) develop and adopt a written investment policy; |
|
(2) maintain for public review at its main office a |
|
copy of the policy; |
|
(3) file a copy of the policy with the State Pension |
|
and Investment Review Board not later than the 90th day after the |
|
date the policy is adopted; and |
|
(4) file a copy of each change to the policy with the |
|
State Pension and Investment Review Board not later than the 90th |
|
day after the change is adopted. |
|
SECTION 35. The heading to Section 802.3021, Government |
|
Code, is amended to read as follows: |
|
Sec. 802.3021. STATE PENSION AND INVESTMENT REVIEW BOARD |
|
ACTUARY. |
|
SECTION 36. Subsection (f), Section 810.001, Government |
|
Code, is amended to read as follows: |
|
(f) Every political entity which establishes or maintains a |
|
public retirement system covered under this Act shall file all |
|
reports with the State Pension and Investment Review Board required |
|
by Chapter 802. If a political subdivision establishes a |
|
retirement program that would be a "public retirement system" |
|
within the meaning ascribed to that term by Section 801.001, but for |
|
the fact that the program is administered by a life insurance |
|
company, the subdivision shall notify the State Pension and |
|
Investment Review Board of the establishment of the program and the |
|
name of the administering company. |
|
SECTION 37. Subsection (d), Section 815.110, Government |
|
Code, is amended to read as follows: |
|
(d) No later than 30 days after the legislative audit |
|
committee receives an audit report, the committee shall file a copy |
|
of the report with the retirement system, the governor, the |
|
lieutenant governor, the speaker of the house of representatives, |
|
the State Pension and Investment Review Board, the state auditor, |
|
and the secretary of state for publication in the Texas Register. |
|
SECTION 38. Subsection (a), Section 815.510, Government |
|
Code, is amended to read as follows: |
|
(a) The Employees Retirement System of Texas shall submit a |
|
report not later than the 25th day of the month following the end of |
|
each fiscal year to the governor, the lieutenant governor, the |
|
speaker of the house of representatives, the executive director of |
|
the State Pension and Investment Review Board, the appropriate |
|
oversight committees of the house and senate, and the Legislative |
|
Budget Board. The report shall include the following: |
|
(1) the current end-of-fiscal-year market value of the |
|
trust fund; |
|
(2) the asset allocations of the trust fund expressed |
|
in percentages of stocks, fixed income, cash, or other financial |
|
investments; and |
|
(3) the investment performance of the trust fund |
|
utilizing accepted industry measurement standards. |
|
SECTION 39. Subsections (c) and (d), Section 825.108, |
|
Government Code, are amended to read as follows: |
|
(c) A copy of the report required by Subsection (a) must be |
|
filed with the governor, the lieutenant governor, the speaker of |
|
the house of representatives, the State Pension and Investment |
|
Review Board, the legislative audit committee, and the state |
|
auditor no later than December 15 of each year. |
|
(d) A copy of the report required by Subsection (b) must be |
|
filed with the governor, the lieutenant governor, the speaker of |
|
the house of representatives, the State Pension and Investment |
|
Review Board, the legislative audit committee, and the state |
|
auditor no later than March 1 of each year. |
|
SECTION 40. Subsection (d), Section 825.111, Government |
|
Code, is amended to read as follows: |
|
(d) No later than 30 days after the legislative audit |
|
committee receives an audit report, the committee shall file a copy |
|
of the report with the retirement system, the governor, the |
|
lieutenant governor, the speaker of the house of representatives, |
|
the State Pension and Investment Review Board, the state auditor, |
|
and the secretary of state for publication in the Texas Register. |
|
SECTION 41. Subsection (e), Section 825.512, Government |
|
Code, is amended to read as follows: |
|
(e) The retirement system shall submit an annual investment |
|
performance report not later than the 45th day after the end of each |
|
fiscal year to the governor, the lieutenant governor, the speaker |
|
of the house of representatives, the executive director of the |
|
State Pension and Investment Review Board, the legislative audit |
|
committee, the committees of the senate and the house of |
|
representatives having jurisdiction over appropriations, the |
|
committees of the senate and the house of representatives having |
|
principal jurisdiction over legislation governing the retirement |
|
system, and the Legislative Budget Board. The report shall include |
|
a listing of all commissions and fees paid by the system during the |
|
reporting period for the sale, purchase, or management of system |
|
assets. |
|
SECTION 42. Section 825.513, Government Code, is amended to |
|
read as follows: |
|
Sec. 825.513. INFORMATION FOR PUBLICATION. The retirement |
|
system shall verify with the State Pension and Investment Review |
|
Board the accuracy of information about the effects of proposed |
|
legislation on benefits and the trust fund before including the |
|
information in an official publication of the retirement system. |
|
SECTION 43. Section 825.518, Government Code, is amended to |
|
read as follows: |
|
Sec. 825.518. ANNUAL REPORT. The Teacher Retirement System |
|
of Texas shall submit a statistical analysis based on information |
|
compiled under Section 822.005(d) not later than the 25th day of the |
|
month following the end of each fiscal year to the governor, the |
|
lieutenant governor, the speaker of the house of representatives, |
|
the executive director of the State Pension and Investment Review |
|
Board, the appropriate oversight committees of the house and |
|
senate, and the Legislative Budget Board. |
|
SECTION 44. Section 2, Chapter 817 (S.B. 127), Acts of the |
|
73rd Legislature, Regular Session, 1993 (Article 4413(34e), |
|
Vernon's Texas Civil Statutes), is amended to read as follows: |
|
Sec. 2. The manager of each state trust fund shall submit to |
|
the governor, the lieutenant governor, the speaker of the house of |
|
representatives, and the executive director of the State Pension |
|
and Investment Review Board: |
|
(1) not later than January 25 of each year, a report |
|
with the information required by Section 3 of this Act covering the |
|
last six months of the previous calendar year; and |
|
(2) not later than June 25 of each year, a report with |
|
the information required by Section 3 of this Act covering the first |
|
six months of that calendar year. |
|
SECTION 45. Subsection (d), Section 12.03, Chapter 183 |
|
(S.B. 598), Acts of the 64th Legislature, Regular Session, 1975 |
|
(Article 6243e.1, Vernon's Texas Civil Statutes), is amended to |
|
read as follows: |
|
(d) The board of trustees shall file with the State Pension |
|
and Investment Review Board a copy of each actuarial study and each |
|
separate report made as required by law. |
|
SECTION 46. Section 10, Article 6243e.2(1), Revised |
|
Statutes, is amended to read as follows: |
|
Sec. 10. NONSTATUTORY BENEFIT INCREASES. The benefits |
|
provided by this article may be increased if: |
|
(1) an actuary selected by the board who, if an |
|
individual, is a Fellow of the Society of Actuaries, a Fellow of the |
|
Conference of Actuaries in Public Practice, or a member of the |
|
American Academy of Actuaries determines that the increase cannot |
|
reasonably be viewed as posing a material risk of jeopardizing the |
|
fund's ability to pay any existing benefit; |
|
(2) a majority of the participating members of the |
|
fund vote for the increase by a secret ballot; |
|
(3) the increase does not deprive a member, without |
|
the member's written consent, of a right to receive benefits that |
|
have already become fully vested and matured in a member; and |
|
(4) the State Pension and Investment Review Board |
|
approves the determination by the actuary selected by the board |
|
that the increase cannot reasonably be viewed as posing a material |
|
risk of jeopardizing the fund's ability to pay any existing |
|
benefit. |
|
SECTION 47. Subsections (a), (b), (c), (d), and (f), |
|
Section 801.113, Government Code, are repealed. |
|
SECTION 48. (a) Not later than January 1, 2010, the |
|
composition of the board of directors of a corporation established |
|
under Section 66.08, Education Code, must comply with the change in |
|
law made by this Act regarding the composition of the board of |
|
directors. |
|
(b) Until January 1, 2010, the composition of the board of |
|
directors of a corporation established under Section 66.08, |
|
Education Code, is as provided by the law in effect immediately |
|
before the effective date of this Act. |
|
SECTION 49. (a) The state auditor shall conduct |
|
comprehensive financially related audits, including audits of the |
|
operations and performance, of the Brazos River Authority and the |
|
Lower Colorado River Authority. |
|
(b) A river authority audited under this section shall |
|
cooperate and provide assistance and access to all necessary |
|
records, confidential or nonconfidential, to the state auditor in |
|
conducting the audit under this section. |
|
(c) Not later than January 1, 2011, the state auditor shall |
|
prepare a written report for each audit conducted under this |
|
section and file the report in accordance with Section 321.014, |
|
Government Code. |
|
(d) A river authority audited under this section shall |
|
reimburse the state auditor for the cost of performing the audit. |
|
SECTION 50. Notwithstanding Chapter 1418 (H.B. 3107), Acts |
|
of the 80th Legislature, Regular Session, 2007, money dedicated by |
|
Subsection (c), Section 495.025, Government Code, as added by |
|
Chapter 100 (S.B. 1580), Acts of the 80th Legislature, Regular |
|
Session, 2007, to the compensation to victims of crime fund |
|
established by Subchapter B, Chapter 56, Code of Criminal |
|
Procedure, is rededicated by this Act. |
|
SECTION 51. (a) The name of the State Pension Review Board |
|
is changed to the State Pension and Investment Review Board. A |
|
reference in law to the State Pension Review Board means the State |
|
Pension and Investment Review Board. A reference in law to the |
|
State Pension Review Board fund means the State Pension and |
|
Investment Review Board fund. |
|
(b) An appropriation for the use and benefit of the State |
|
Pension Review Board is available for the use and benefit of the |
|
State Pension and Investment Review Board. |
|
SECTION 52. (a) As soon as practicable on or after the |
|
effective date of this Act: |
|
(1) the governor shall appoint five members to the |
|
State Pension and Investment Review Board as provided by Section |
|
801.103, Government Code, as amended by this Act, as follows: |
|
(A) two members for a term expiring January 31, |
|
2011; |
|
(B) two members for a term expiring January 31, |
|
2013; and |
|
(C) one member for a term expiring January 31, |
|
2015; |
|
(2) the lieutenant governor shall appoint one member |
|
to the State Pension and Investment Review Board as provided by |
|
Subsection (a), Section 801.104, Government Code, as amended by |
|
this Act, for a term expiring January 31, 2013; and |
|
(3) the speaker of the house of representatives shall |
|
appoint one member to the State Pension and Investment Review Board |
|
as provided by Subsection (b), Section 801.104, Government Code, as |
|
amended by this Act, for a term expiring January 31, 2015. |
|
(b) The term of a member of the State Pension Review Board |
|
serving immediately before the effective date of this Act expires |
|
at the time five or more of the members appointed to the State |
|
Pension and Investment Review Board under Subsection (a) of this |
|
section qualify for office. Until the expiration of a member's term |
|
occurs under this subsection, the member has the same powers and |
|
duties that the member had immediately before that date. |
|
SECTION 53. Subchapter D, Chapter 801, Government Code, as |
|
added by this Act, applies to the oversight of funds by the State |
|
Pension and Investment Review Board, regardless of whether the |
|
investment of those funds was made before, on, or after the |
|
effective date of this Act. |
|
SECTION 54. This Act does not make an appropriation. A |
|
provision in this Act that creates a new governmental program, |
|
creates a new entitlement, or imposes a new duty on a governmental |
|
entity is not mandatory during a fiscal period for which the |
|
legislature has not made a specific appropriation to implement the |
|
provision. |
|
SECTION 55. This Act takes effect immediately if it |
|
receives a vote of two-thirds of all the members elected to each |
|
house, as provided by Section 39, Article III, Texas Constitution. |
|
If this Act does not receive the vote necessary for immediate |
|
effect, this Act takes effect on the 91st day after the last day of |
|
the legislative session. |