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A BILL TO BE ENTITLED
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AN ACT
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relating to the ethics and financial disclosure requirements of |
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members of the governing board, officers, and employees of certain |
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public retirement systems and officers and employees of a nonprofit |
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corporation for investment of the permanent university fund. |
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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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adding Subsections (p), (q), and (r) to read as follows: |
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(p) A director or officer of the corporation required to |
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file a personal financial statement under Subchapter B, Chapter |
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572, Government Code, must file a copy of the financial statement |
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that is filed with the Texas Ethics Commission with a person |
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designated by the board of directors. The designated person shall |
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review each statement to identify any potential conflicts of |
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interest and shall report to the board of directors any conflicts of |
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interest identified. |
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(q) Each employee of the corporation who exercises |
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significant decision-making or fiduciary authority, as determined |
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by the board of directors, shall file financial disclosure |
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statements with a person designated by the board of directors. The |
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content of a financial disclosure statement must comply |
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substantially with the requirements of Subchapter B, Chapter 572, |
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Government Code. A statement must be filed not later than the 30th |
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day after the date a person is employed in a significant |
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decision-making or fiduciary position and annually after |
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employment not later than April 30. The filing deadline may be |
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postponed by the board of directors for not more than 60 days on |
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written request or for an additional period for good cause, as |
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determined by the board of directors. The designated person shall |
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review each statement to identify any potential conflicts of |
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interest and shall report to the board of directors any conflicts of |
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interest identified. The corporation shall maintain a financial |
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disclosure statement for at least five years after the date of its |
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filing. |
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(r) An employee required to file a financial disclosure |
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statement under Subsection (q) must annually file a signed |
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statement that the employee has disclosed any outside employment |
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activity or business activity and that the employee has received |
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approval from the board of directors for the employment or business |
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activity. |
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SECTION 2. Subchapter A, Chapter 572, Government Code, is |
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amended by adding Section 572.009 to read as follows: |
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Sec. 572.009. APPLICABILITY TO NONPROFIT INVESTMENT |
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CORPORATION FOR PERMANENT UNIVERSITY FUND. (a) A provision of this |
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chapter that applies to a state agency applies to a nonprofit |
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corporation under contract with the board of regents of The |
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University of Texas System under Section 66.08, Education Code, to |
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invest the funds of the permanent university fund on behalf of the |
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board of regents. |
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(b) A provision of this chapter that applies to an appointed |
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officer of a major state agency applies to a member of the board of |
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directors of a nonprofit corporation described by Subsection (a). |
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SECTION 3. Section 815.213, Government Code, is amended to |
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read as follows: |
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Sec. 815.213. ETHICS AND DISCLOSURE REQUIREMENTS. (a) The |
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board of trustees shall adopt an investment policy that includes a |
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code of ethics. The code of ethics must contain standards of |
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ethical conduct and disclosure requirements applicable to the |
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members of the board of trustees and employees of the retirement |
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system in the administration of this subtitle. |
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(b) A member of the board of trustees or an officer of the |
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retirement system required to file a personal financial statement |
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under Subchapter B, Chapter 572, must file a copy of the financial |
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statement that is filed with the Texas Ethics Commission with a |
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person designated by the board. The designated person shall review |
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each statement to identify any potential conflicts of interest and |
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shall report to the board of trustees any conflicts of interest |
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identified. |
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(c) Each employee of the retirement system who exercises |
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significant decision-making or fiduciary authority, as determined |
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by the board of trustees, shall file financial disclosure |
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statements with a person designated by the board. The content of a |
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financial disclosure statement must comply substantially with the |
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requirements of Subchapter B, Chapter 572. A statement must be |
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filed not later than the 30th day after the date a person is |
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employed in a significant decision-making or fiduciary position and |
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annually after employment not later than April 30. The filing |
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deadline may be postponed by the executive director for not more |
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than 60 days on written request or for an additional period for good |
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cause, as determined by the executive director. The designated |
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person shall review each statement to identify any potential |
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conflicts of interest and shall report to the board of trustees any |
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conflicts of interest identified. The retirement system shall |
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maintain a financial disclosure statement for at least five years |
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after the date of its filing. |
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(d) An employee required to file a financial disclosure |
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statement under Subsection (c) must annually file a signed |
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statement that the employee has disclosed any outside employment |
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activity or business activity and that the employee has received |
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approval from the executive director for the employment or business |
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activity. |
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SECTION 4. Section 825.212, Government Code, is amended by |
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adding Subsections (i) and (j) to read as follows: |
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(i) A member of the board of trustees or an officer of the |
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retirement system required to file a personal financial statement |
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under Subchapter B, Chapter 572, must file a copy of the financial |
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statement that is filed with the Texas Ethics Commission with a |
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person designated by the board. The designated person shall review |
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each statement to identify any potential conflicts of interest and |
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shall report to the board of trustees any conflicts of interest |
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identified. |
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(j) An employee required to file a financial disclosure |
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statement under Subsection (b) must annually file a signed |
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statement that the employee has disclosed any outside employment |
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activity or business activity and that the employee has received |
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approval from the executive director for the employment or business |
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activity. |
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SECTION 5. This Act takes effect September 1, 2011. |