Texas 2009 - 81st Regular

Texas Senate Bill SB2348 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Ogden S.B. No. 2348
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the composition and appointment of the board of
7	7	directors of a corporation to which the board of regents of The
8	8	University of Texas System delegates investment authority for the
9	9	permanent university fund or other funds under the control of the
10	10	board of regents, and to the administration of that corporation.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 66.08, Education Code, is amended by
13	13	amending Subsections (d) and (e) and adding Subsections (d-1) and
14	14	(i-1) to read as follows:
15	15	(d) The board of directors of the corporation shall have
16	16	seven [nine] members appointed as follows:
17	17	(1) three members appointed by the board of regents of
18	18	The University of Texas System;
19	19	(2) one member appointed by the board of regents of The
20	20	Texas A&M University System; and
21	21	(3) three members appointed by the governor with the
22	22	advice and consent of the senate. [The board shall appoint and
23	23	remove all members of the board of directors of the corporation. At
24	24	least three members of the board and the chancellor of The
25	25	University of Texas System shall be appointed as directors.]
26	26	(e) Each member of the board of directors of the corporation
27	27	is subject to removal and replacement by the appointing entity. The
28	28	governor may remove a member appointed by the governor without the
29	29	advice and consent of the senate but may not replace the member
30	30	without the advice and consent of the senate. [The board shall
31	31	select one or more of the members of the board of directors of the
32	32	corporation from a list of candidates with substantial background
33	33	and expertise in investments that is submitted to the board by the
34	34	board of regents of The Texas A&M University System.]
35	35	(i-1) The corporation may not pay a director, officer, or
36	36	employee of the corporation a bonus, reward, or other incentive
37	37	payment based on the performance of the director, officer, or
38	38	employee, including the performance of an investment made or
39	39	recommended by the director, officer, or employee, unless the
40	40	payment is approved in writing by the Legislative Budget Board, the
41	41	governor, and the attorney general.
42	42	SECTION 2. (a) Not later than January 1, 2010, the
43	43	appropriate appointing entities shall appoint the members of the
44	44	board of directors of a corporation established under Section
45	45	66.08, Education Code, in accordance with the change in law made by
46	46	this Act regarding the composition of the board of directors. The
47	47	members of the board of directors appointed under this subsection
48	48	take office January 1, 2010. On that date, the incumbent members of
49	49	the board of directors are considered removed from the board of
50	50	directors.
51	51	(b) Until January 1, 2010, the composition of the board of
52	52	directors of a corporation established under Section 66.08,
53	53	Education Code, is as provided by the law in effect immediately
54	54	before the effective date of this Act.
55	55	SECTION 3. This Act takes effect immediately if it receives
56	56	a vote of two-thirds of all the members elected to each house, as
57	57	provided by Section 39, Article III, Texas Constitution. If this
58	58	Act does not receive the vote necessary for immediate effect, this
59	59	Act takes effect September 1, 2009.