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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. Section 66.08, Education Code, is amended by |
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amending Subsections (d) and (e) and adding Subsection (e-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, 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 which [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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(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 [shall be 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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(e-1) A vote of at least four-fifths of the members of the |
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board of directors shall be required to: |
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(1) hire or terminate the employment of the chief |
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executive officer of the corporation; |
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(2) approve the corporation's annual budget; |
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(3) award executive compensation, including bonuses; |
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(4) change the corporation's asset allocation; and |
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(5) change the investment policies of the |
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corporation. |
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SECTION 2. (a) Not later than January 1, 2012, the board of |
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regents of The Texas A&M University System shall appoint the |
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required number of members of the board of directors of a |
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corporation established under Section 66.08, Education Code, in |
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accordance with the change in law made by this Act to Section |
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66.08(d). |
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(b) Not later than January 1, 2012, the board of regents of |
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The University of Texas System shall appoint the required number of |
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members of the board of directors of a corporation established |
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under Section 66.08, Education Code. For that purpose, the board of |
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regents may reappoint a sitting member of the board of directors. |
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(c) Until January 1, 2012, the composition of the board of |
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directors of a corporation established under Section 66.08, |
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Education Code, is as provided by the law in effect immediately |
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before the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2011. |