By: Miller of Comal, Herrero, Hunter, et al. H.B. No. 2656
A BILL TO BE ENTITLED
AN ACT
relating to the composition of the board of trustees of the Teacher
Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 821.001(5), Government Code, is amended
to read as follows:
(5) "Board of trustees" means the persons [board]
appointed or elected under this subtitle to administer the
retirement system.
SECTION 2. The heading to Section 825.002, Government Code,
is amended to read as follows:
Sec. 825.002. APPOINTMENT AND ELECTION OF TRUSTEES
[APPOINTED BY GOVERNOR].
SECTION 3. Sections 825.002(a), (c), (d), (e), (f), and
(g), Government Code, are amended to read as follows:
(a) The governor shall appoint, with the advice and consent
of the senate and as provided by Subsection (b) [this section],
three [seven] members of the board of trustees.
(c) Two trustees who are [The governor shall appoint two
members of the board from a slate of three] members of the
retirement system and who are currently employed by a public school
district shall be elected [and who have been nominated in
accordance with Subsection (f)] by the members of the retirement
system whose most recent credited service was performed for a
public school district. The two trustees [members] hold office for
staggered terms.
(d) Two trustees who are [The governor shall appoint one
member of the board from a slate of three] former members of the
retirement system who have retired and are receiving benefits from
the retirement system shall be elected [and who have been nominated
in accordance with Subsections (f) and (g)] by [the] persons who
have retired and are receiving benefits from the retirement system.
The two members elected under this subsection hold office for
staggered terms.
(e) One trustee who is a member [The governor shall appoint
one member from a slate of three members] of the retirement system
and who is [are] currently employed by an institution of higher
education shall be elected [and who have been nominated in
accordance with Subsection (f)] by the members of the retirement
system whose most recent credited service was performed for an
institution of higher education.
(f) The board of trustees shall adopt rules for the election
of trustees [Persons considered for nomination] under Subsections
[Subsection] (c), (d), and [or] (e) [must have been nominated by
written ballot at an election conducted under rules adopted by the
board of trustees].
(g) To provide for the election [nomination of persons for
appointment] under Subsection (d), the board shall send to each
retiree of the retirement system:
(1) notice of the deadline for filing as a candidate
for election [nomination];
(2) information on procedures to follow in filing as a
candidate; and
(3) a written ballot.
SECTION 4. Section 825.003, Government Code, is amended to
read as follows:
Sec. 825.003. TRUSTEES APPOINTED BY GOVERNOR FROM NOMINEES
OF BOARD OF EDUCATION. The governor shall appoint one member [two
members] of the board of trustees, subject to confirmation by
two-thirds of the senate, from lists of nominees submitted by the
State Board of Education. The member appointed under this
subsection [These members] must be a person [persons] who has
[have] demonstrated financial expertise, has [have] worked in
private business or industry, and has [have] broad investment
experience, preferably in investment of pension funds.
SECTION 5. Sections 825.0032(a) and (b), Government Code,
are amended to read as follows:
(a) Except as provided by Subsection (b), a person is not
eligible for appointment or election to the board of trustees if the
person or the person's spouse:
(1) is employed by or participates in the management
of a business entity or other organization receiving funds from the
retirement system;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization receiving funds from the retirement system; or
(3) uses or receives a substantial amount of tangible
goods, services, or funds from the retirement system, other than
compensation or reimbursement authorized by law for board of
trustees membership, attendance, or expenses.
(b) Subsection (a) does not apply to employment by,
participation in the management of, or ownership or control of an
interest in a business entity or other organization on behalf of the
retirement system. Subsection (a)(3) does not apply to a person who
is elected [nominated for appointment] under Section 825.002(c),
(d), or (e).
SECTION 6. Sections 825.0041(a) and (c), Government Code,
are amended to read as follows:
(a) A person who is appointed or elected to and qualifies
for office as a member of the board of trustees may not vote,
deliberate, or be counted as a member in attendance at a meeting of
the board until the person completes a training program that
complies with this section.
(c) A person appointed or elected to the board of trustees
is entitled to reimbursement under Section 825.007 for the travel
expenses incurred in attending the training program regardless of
whether the attendance at the program occurs before or after
the person qualifies for office.
SECTION 7. Section 825.009(a), Government Code, is amended
to read as follows:
(a) A trustee elected [appointed from a slate of members
nominated] by members of the retirement system under Section
825.002 is entitled to leave with pay from the trustee's public
school employer to attend to the official business of the
retirement system.
SECTION 8. Sections 825.010(a) and (c), Government Code,
are amended to read as follows:
(a) It is a ground for removal from the board of trustees
that a trustee:
(1) does not have at the time of taking office the
qualifications required for the trustee's position;
(2) does not maintain during service on the board the
qualifications required for the trustee's position;
(3) violates a prohibition established by Section
825.002(b) or 825.0032 applicable to the trustee;
(4) cannot because of illness or disability discharge
the trustee's duties for a substantial part of the term for which
the trustee is appointed or elected; or
(5) is absent from more than half of the regularly
scheduled board meetings that the person is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the board.
(c) If the executive director has knowledge that a potential
ground for removal exists, the executive director shall notify the
presiding officer of the board of trustees of the ground. The
presiding officer shall then notify the governor [appropriate
appointing officer] and the attorney general that a potential
ground for removal exists. If the potential ground for removal
involves the presiding officer, the executive director shall notify
the next highest officer of the board, who shall notify the governor
[appropriate appointing officer] and the attorney general that a
potential ground for removal exists.
SECTION 9. (a) This Act applies only to the appointment or
election of a trustee of the board of trustees of the Teacher
Retirement System of Texas that occurs on or after the effective
date of this Act.
(b) A person who is serving as a trustee immediately before
the effective date of this Act may complete the trustee's term of
office, and the trustee's qualifications for serving as a trustee
are governed by the law in effect immediately before the effective
date of this Act until the date that trustee's term expires.
SECTION 10. This Act takes effect September 1, 2009.