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A BILL TO BE ENTITLED
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AN ACT
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relating to the higher education fund, the management of |
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investments of the permanent university fund, and the allocation |
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and distribution of certain constitutional revenues to the |
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University of Houston. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 62.021, Education Code, is amended by |
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adding Subsection (g) to read as follows: |
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(g) Notwithstanding Subsection (a), the allocation made by |
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that subsection to the University of Houston is void, and any amount |
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allocated by that subsection to the University of Houston for a |
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state fiscal year after the state fiscal year ending August 31, |
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2015, is reallocated to the other eligible institutions listed in |
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Subsection (a) in that fiscal year in the manner provided by Section |
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17A, Article VII, Texas Constitution. |
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SECTION 2. The heading to Section 62.147, Education Code, |
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is amended to read as follows: |
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Sec. 62.147. INELIGIBILITY OF CERTAIN INSTITUTIONS |
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RECEIVING PERMANENT UNIVERSITY FUND SUPPORT AND MAINTENANCE. |
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SECTION 3. Sections 66.08(d) and (f), 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 11 |
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[nine] members, determined as follows: |
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(1) seven members appointed by the board, of whom: |
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(A) three must be members of the board; |
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(B) three must have a substantial background and |
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expertise in investments; and |
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(C) one must be a qualified individual as |
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determined by the board, which may include the chancellor of The |
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University of Texas System; [and] |
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(2) 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; and |
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(3) two members appointed by the president of the |
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University of Houston, at least one of whom must have a substantial |
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background and expertise in investments. |
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(f) If an investment contract entered into under Subsection |
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(b) includes the permanent university fund within the scope of |
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funds under the control and management of the board to be invested |
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by the corporation, the board shall provide for an annual financial |
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audit of the permanent university fund. The audit shall be |
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performed by the auditors of The University of Texas System, [and] |
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The Texas A&M University System, and the University of Houston |
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System and presented to the board. |
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SECTION 4. As soon as practicable following the effective |
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date of this Act, The University of Texas Investment Management |
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Company shall amend its bylaws to allow the president of the |
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University of Houston to appoint two directors to the company's |
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board of directors as required by Section 66.08(d), Education Code, |
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as amended by this Act. |
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SECTION 5. This Act takes effect September 1, 2018, but only |
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if the constitutional amendment proposed by the 85th Legislature, |
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Regular Session, 2017, entitling the University of Houston to |
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participate in the income and other benefits of the permanent |
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university fund, takes effect. If that amendment is not approved by |
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the voters, this Act has no effect. |