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A BILL TO BE ENTITLED
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AN ACT
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relating to service and qualifications for membership on an |
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advisory committee established by the Employees Retirement System |
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of Texas to provide advice to the board of trustees on investments |
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and investment-related issues. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 815, Government Code, is |
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amended by adding Sections 815.5091, 815.5092, and 815.5093 to read |
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as follows: |
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Sec. 815.5091. MEMBERSHIP ON ADVISORY COMMITTEE ON |
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INVESTMENTS. (a) A person appointed to serve as a member of an |
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advisory committee established by the board of trustees to provide |
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advice to the board on investments and investment-related issues |
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must be a person with demonstrated financial expertise who has |
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worked in private business or industry and has broad investment |
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experience, preferably in investment of pension funds. |
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(b) A person appointed to serve as a member of a committee |
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described by Subsection (a) shall assist the board of trustees in |
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carrying out the board's fiduciary duties with regard to the |
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investment of the assets of the retirement system under this |
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chapter. |
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Sec. 815.5092. INELIGIBILITY FOR MEMBERSHIP ON ADVISORY |
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COMMITTEE ON INVESTMENTS. (a) A person is not eligible for |
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appointment to an advisory committee established by the board of |
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trustees to provide advice to the board on investments and |
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investment-related issues if the person or 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) is a paid officer, employee, or consultant of a |
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Texas trade association in the field of insurance or investment. |
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(b) A person is not eligible for appointment to a committee |
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described by Subsection (a) if the person is required to register as |
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a lobbyist under Chapter 305 because of the person's activities for |
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compensation on behalf of a business or an association related to |
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the investment of the assets of this state or of the retirement |
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system. |
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(c) In this section, "Texas trade association" has the |
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meaning assigned by Section 815.0031. |
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Sec. 815.5093. REVIEW OF AND REMOVAL FROM ADVISORY |
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COMMITTEE ON INVESTMENTS. (a) The board of trustees shall at least |
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annually review the eligibility status of members serving on an |
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advisory committee established to provide advice to the board on |
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investments and investment-related issues. |
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(b) It is a ground for removal from a committee described by |
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Subsection (a) that a person is: |
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(1) not qualified for appointment to the committee |
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under Section 815.5091 or 815.5092; |
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(2) unable to discharge the person's duties on the |
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committee because of illness, disability, or other personal |
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circumstances; or |
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(3) absent from more than half of the scheduled |
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meetings of the committee that the person is eligible to attend |
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during a calendar year. |
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(c) If the executive director or a member of the advisory |
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committee has knowledge that a potential ground for removal exists, |
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the executive director or committee member shall notify the |
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presiding officer of the board of trustees of the potential ground |
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for removal. |
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(d) This section does not limit the power of the board of |
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trustees to remove a person from the advisory committee under |
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Section 815.509(a). |
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SECTION 2. This Act takes effect September 1, 2011. |