81R3155 TJS-D By: Herrero H.B. No. 688 A BILL TO BE ENTITLED AN ACT relating to the election of certain members 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 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), (d), (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 this section, six [seven] members of the board of trustees. (d) Persons who have retired and are receiving benefits from the retirement system [The governor] shall elect under rules adopted by the board [appoint] one member of the board who must be a [from a slate of three] former member [members] of the retirement system who is [have] retired and [are] receiving benefits from the retirement system [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]. (f) Persons considered for nomination under Subsection (c)[, (d),] 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. 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 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 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 nominated for appointment under Section 825.002(c)[, (d),] or (e) or who is elected under Subsection 825.002(d). SECTION 5. 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 6. Section 825.009(a), Government Code, is amended to read as follows: (a) A trustee who is elected under Section 825.002 or who is 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 7. Sections 825.010(a) and (c), Government Code, are amended to read as follows: (a) It is a ground for removal from the board 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; (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 the ground. The presiding officer shall then notify the appropriate appointing officer, if any, 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 appropriate appointing officer, if any, and the attorney general that a potential ground for removal exists. SECTION 8. (a) Section 825.002, Government Code, as amended by this Act, applies only to the appointment or election of a member of the board of trustees of the Teacher Retirement System of Texas that occurs on or after the effective date of this Act. (b) The change in the manner of appointing or electing members of the board does not affect the appointment of members serving on the board before the effective date of this Act. SECTION 9. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.