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A BILL TO BE ENTITLED
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AN ACT
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relating to the composition of the board of trustees of the Teacher |
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Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 825.001, Government Code, is amended to |
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read as follows: |
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Sec. 825.001. COMPOSITION OF BOARD OF TRUSTEES. The board |
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of trustees is composed of 12 [nine] members. |
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SECTION 2. Section 825.002, Government Code, is amended by |
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amending Subsections (a), (b), (d), and (e) and adding Subsection |
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(e-2) to read as follows: |
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(a) The governor shall appoint, with the advice and consent |
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of the senate and as provided by this section, 10 [seven] members of |
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the board of trustees. |
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(b) The governor shall appoint four [three] members of the |
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board to hold office for staggered terms, with the term of one |
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trustee expiring on August 31 of each odd-numbered year. These |
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members must be persons who have demonstrated financial expertise, |
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who have worked in private business or industry, and who have broad |
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investment experience, preferably in investment of pension funds. |
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None of the members appointed under this subsection may be a member |
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or annuitant of the retirement system. |
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(d) Subject to Subsection (e-2), the [The] governor shall |
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appoint two members [one member] of the board from a slate of four |
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[three] former members of the retirement system who have retired |
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and are receiving benefits from the retirement system and who have |
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been nominated in accordance with Subsections (f) and (g) by the |
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persons who have retired and are receiving benefits from the |
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retirement system. |
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(e) Subject to Subsection (e-2), the [The] governor shall |
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appoint two members [one member] of the board from a slate of four |
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[three] persons who have been nominated in accordance with |
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Subsection (f) by the following groups collectively: |
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(1) members of the retirement system whose most recent |
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credited service was performed for an institution of higher |
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education; |
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(2) members of the retirement system whose most recent |
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credited service was performed for a public school district, |
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charter school, or regional education service center; and |
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(3) persons who have retired and are receiving |
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benefits from the retirement system. |
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(e-2) The governor shall ensure that at least one of the |
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members appointed under Subsection (d) or (e), as appropriate, is: |
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(1) a former member who retired from an institution of |
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higher education; or |
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(2) currently employed by an institution of higher |
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education. |
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SECTION 3. (a) As soon as practicable after the effective |
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date of this Act, the governor shall appoint an additional member to |
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the board of trustees of the Teacher Retirement System of Texas |
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under Section 825.002(b), Government Code, as amended by this Act. |
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(b) Notwithstanding the term of six years stipulated by |
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Section 825.004(a), Government Code, as soon as practicable after |
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the effective date of this Act, the Teacher Retirement System of |
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Texas shall prepare a slate of three nominees and the governor shall |
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appoint from that slate an additional member to the board of |
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trustees of the Teacher Retirement System of Texas under Section |
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825.002(d), Government Code, as amended by this Act, to serve a term |
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that expires on a date that preserves the required staggering of |
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terms. In making the appointment under this subsection, the |
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governor shall ensure that the composition of the board of trustees |
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complies with Section 825.002(e-2)(1), Government Code, as added by |
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this Act. Subsequent board of trustee members appointed to that |
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position shall serve the six-year term. |
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(c) Notwithstanding the term of six years stipulated by |
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Section 825.004(a), Government Code, as soon as practicable after |
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the effective date of this Act, the members of the Teacher |
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Retirement System of Texas who are described by Sections |
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825.002(e)(1)-(3), Government Code, as amended by this Act, shall |
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prepare a slate of three nominees and the governor shall appoint |
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from that slate an additional member to the board of trustees of the |
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Teacher Retirement System of Texas under Section 825.002(e), |
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Government Code, as amended by this Act, to serve a term that |
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expires on a date that preserves the required staggering of terms. |
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In making the appointment under this subsection, the governor shall |
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ensure that the composition of the board of trustees complies with |
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Section 825.002(e-2)(2), Government Code, as added by this Act. |
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Subsequent board of trustee members appointed to that position |
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shall serve the six-year term. |
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SECTION 4. 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, 2019. |