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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. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 66.08(d) and (e), Education Code, are |
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amended to read as follows: |
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(d) The board of directors of the corporation shall have |
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nine members, determined as follows: |
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(1) six[. The board shall appoint and remove all] |
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members appointed by the board, of whom [of the board of directors
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of the corporation.
At least] three must be members of the board |
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and the other three must have a substantial background and |
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expertise in investments; |
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(2) [and] the chancellor of The University of Texas |
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System; and |
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(3) two members appointed by the board of regents of |
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The Texas A&M University System, at least one of whom must have a |
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substantial background and expertise in investments [shall be
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appointed as directors]. |
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(e) Each appointed member of the board of directors of the |
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corporation is subject to removal and replacement by and at the |
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pleasure of the appointing entity [The board shall select one or
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more of the members of the board of directors of the corporation
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from a list of candidates with substantial background and expertise
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in investments that is submitted to the board by the board of
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regents of The Texas A&M University System]. |
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SECTION 2. (a) This section applies to the corporation |
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described by Section 66.08, Education Code, and governs the |
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implementation of the changes in law made by this Act to the board |
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of directors of the corporation. |
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(b) This Act does not affect the terms of office of members |
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of the corporation's board of directors who are serving on the |
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effective date of this Act. |
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(c) The board of regents of The Texas A&M University System |
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shall appoint two directors as required by Section 66.08(d)(3), |
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Education Code, as added by this Act, as follows: |
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(1) one director on the expiration of the term of |
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office of a director serving on the effective date of this Act who, |
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under prior law, was appointed to that position on recommendation |
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of that board of regents; and |
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(2) one director on the first expiration after the |
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effective date of this Act of a term of office of any director, |
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other than: |
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(A) the director described by Subdivision (1) of |
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this subsection; and |
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(B) any director who also serves as a member of |
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the board of regents of a university system, as defined by Section |
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61.003, Education Code. |
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(d) As soon as practicable after the effective date of this |
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Act, the board of directors of the corporation and the board of |
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regents of The University of Texas System shall amend the bylaws of |
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the corporation as necessary to give effect to the requirements of |
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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, 2011. |
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