By: Ogden S.B. No. 2348
A BILL TO BE ENTITLED
AN ACT
relating to the composition and appointment of the board of
directors of a corporation to which the board of regents of The
University of Texas System delegates investment authority for the
permanent university fund or other funds under the control of the
board of regents, and to the administration of that corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 66.08, Education Code, is amended by
amending Subsections (d) and (e) and adding Subsections (d-1) and
(i-1) to read as follows:
(d) The board of directors of the corporation shall have
seven [nine] members appointed as follows:
(1) three members appointed by the board of regents of
The University of Texas System;
(2) one member appointed by the board of regents of The
Texas A&M University System; and
(3) three members appointed by the governor with the
advice and consent of the senate. [The board shall appoint and
remove all members of the board of directors of the corporation. At
least three members of the board and the chancellor of The
University of Texas System shall be appointed as directors.]
(e) Each member of the board of directors of the corporation
is subject to removal and replacement by the appointing entity. The
governor may remove a member appointed by the governor without the
advice and consent of the senate but may not replace the member
without the advice and consent of the senate. [The board shall
select one or more of the members of the board of directors of the
corporation from a list of candidates with substantial background
and expertise in investments that is submitted to the board by the
board of regents of The Texas A&M University System.]
(i-1) The corporation may not pay a director, officer, or
employee of the corporation a bonus, reward, or other incentive
payment based on the performance of the director, officer, or
employee, including the performance of an investment made or
recommended by the director, officer, or employee, unless the
payment is approved in writing by the Legislative Budget Board, the
governor, and the attorney general.
SECTION 2. (a) Not later than January 1, 2010, the
appropriate appointing entities shall appoint the members of the
board of directors of a corporation established under Section
66.08, Education Code, in accordance with the change in law made by
this Act regarding the composition of the board of directors. The
members of the board of directors appointed under this subsection
take office January 1, 2010. On that date, the incumbent members of
the board of directors are considered removed from the board of
directors.
(b) Until January 1, 2010, the composition of the board of
directors of a corporation established under Section 66.08,
Education Code, is as provided by the law in effect immediately
before the effective date of this Act.
SECTION 3. 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.