| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the investment management of the permanent university |
|
|
fund. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subsections (d) and (e), Section 66.08, |
|
|
Education Code, are amended to read as follows: |
|
|
(d) The board of directors of the corporation shall have |
|
|
nine members. The board shall appoint and remove seven [all] |
|
|
members of the board of directors of the corporation. At least |
|
|
three members of the board and the chancellor of The University of |
|
|
Texas System shall be appointed as directors by the board. The |
|
|
board of regents of The Texas A&M University System shall appoint |
|
|
and remove two members of the board of directors of the corporation. |
|
|
(e) A vote of 80 percent of the board of directors of the |
|
|
corporation is required for: |
|
|
(1) hiring and firing the chief executive officer of |
|
|
the corporation; |
|
|
(2) approval of the corporation's annual budget; |
|
|
(3) awarding executive compensation, including |
|
|
bonuses; |
|
|
(4) changes to the corporation's asset allocation; and |
|
|
(5) changes to the investment policies of the |
|
|
corporation [The board shall select one or more of the members of
|
|
|
the board of directors of the corporation from a list of candidates
|
|
|
with substantial background and expertise in investments that is
|
|
|
submitted to the board by the board of regents of The Texas A&M
|
|
|
University System]. |
|
|
SECTION 2. 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 September 1, 2011. |