Texas 2009 - 81st Regular

Texas Senate Bill SB2567 Compare Versions

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1	1	By: Duncan S.B. No. 2567
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to state fiscal matters; providing the authority to issue
7	7	bonds; providing civil penalties.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subchapter B, Chapter 55, Education Code, is
10	10	amended by adding Section 55.17721 to read as follows:
11	11	Sec. 55.17721. THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT
12	12	GALVESTON. (a) In addition to the other authority granted by this
13	13	subchapter and subject to the other provisions of this section, the
14	14	board of regents of The University of Texas System may acquire,
15	15	purchase, construct, improve, renovate, enlarge, or equip
16	16	property, buildings, structures, facilities, roads, or related
17	17	infrastructure for The University of Texas Medical Branch at
18	18	Galveston for any purpose reasonably necessary to assist the
19	19	institution to recover from any damage or other impact caused by
20	20	Hurricane Ike, to be financed by the issuance of bonds in accordance
21	21	with this subchapter, including bonds issued in accordance with a
22	22	systemwide revenue financing program and secured as provided by
23	23	that program, in an aggregate principal amount not to exceed $150
24	24	million.
25	25	(b) The board may pledge irrevocably to the payment of the
26	26	bonds authorized by this section all or any part of the revenue
27	27	funds of an institution, branch, or entity of The University of
28	28	Texas System, including student tuition charges. The amount of a
29	29	pledge made under this subsection may not be reduced or abrogated
30	30	while the bonds for which the pledge is made, or bonds issued to
31	31	refund those bonds, are outstanding.
32	32	(c) If sufficient funds are not available to the board to
33	33	meet its obligations under this section, the board may transfer
34	34	funds among institutions, branches, and entities of The University
35	35	of Texas System to ensure the most equitable and efficient
36	36	allocation of available resources for each institution, branch, or
37	37	entity to carry out its duties and purposes.
38	38	(d) Any transfer of funds to the board pursuant to an
39	39	appropriation of state funds to the board or The University of Texas
40	40	Medical Branch at Galveston for the purpose of reimbursing the
41	41	board for all or part of the debt service on bonds issued under this
42	42	section is subject to the prior approval of the Legislative Budget
43	43	Board. In determining whether to approve a transfer of state funds
44	44	for that purpose, the Legislative Budget Board shall consider:
45	45	(1) whether the commissioners court of the county in
46	46	which the medical branch is located has entered into an agreement
47	47	with the board under which the county agrees to reimburse the board
48	48	for all or part of any otherwise unreimbursed costs incurred by the
49	49	medical branch to provide health care services to individuals who
50	50	are residents of the county and whose net family income is not more
51	51	than 100 percent of the federal poverty level; or
52	52	(2) whether the county in which the medical branch is
53	53	located or a hospital district that includes that county imposes an
54	54	ad valorem tax for health care purposes.
55	55	(e) For purposes of Subsection (d), the county of residence
56	56	of an individual is determined in the same manner as provided by
57	57	Chapter 61, Health and Safety Code.
58	58	SECTION 2. Subsection (e), Section 61.0572, Education Code,
59	59	is amended to read as follows:
60	60	(e) Approval of the board is not required to acquire real
61	61	property that is financed by bonds issued under Section 55.17(e)(3)
62	62	or (4), 55.1713-55.1718, 55.1721-55.1728, 55.1735(a)(1), 55.174,
63	63	55.1742, 55.1743, 55.1744, 55.1751-55.17592, [or] 55.1768, or
64	64	55.17721, except that the board shall review all real property to be
65	65	financed by bonds issued under those sections to determine whether
66	66	the property meets the standards adopted by the board for cost,
67	67	efficiency, and space use. If the property does not meet those
68	68	standards, the board shall notify the governor, the lieutenant
69	69	governor, the speaker of the house of representatives, and the
70	70	Legislative Budget Board.
71	71	SECTION 3. Subsection (b), Section 61.058, Education Code,
72	72	is amended to read as follows:
73	73	(b) This section does not apply to construction, repair, or
74	74	rehabilitation financed by bonds issued under Section 55.17(e)(3)
75	75	or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174, 55.1742,
76	76	55.1743, 55.1744, 55.1751-55.17592, [or] 55.1768, or 55.17721,
77	77	except that the board shall review all construction, repair, or
78	78	rehabilitation to be financed by bonds issued under those sections
79	79	to determine whether the construction, rehabilitation, or repair
80	80	meets the standards adopted by board rule for cost, efficiency, and
81	81	space use. If the construction, rehabilitation, or repair does not
82	82	meet those standards, the board shall notify the governor, the
83	83	lieutenant governor, the speaker of the house of representatives,
84	84	and the Legislative Budget Board.
85	85	SECTION 4. Section 66.08, Education Code, is amended by
86	86	amending Subsections (d) and (e) and adding Subsection (i-1) to
87	87	read as follows:
88	88	(d) The board of directors of the corporation shall have
89	89	nine members. The board shall appoint and remove all members of the
90	90	board of directors of the corporation. Three [At least three]
91	91	members of the board [and the chancellor] of The University of Texas
92	92	System shall be appointed as directors. The board shall appoint
93	93	four other directors with substantial background and expertise in
94	94	investments who are not:
95	95	(1) members of the board of regents or employees of The
96	96	University of Texas System or The Texas A&M University System;
97	97	(2) employees of a component institution in The
98	98	University of Texas System or The Texas A&M University System; or
99	99	(3) employees or contractors of the corporation.
100	100	(e) The board shall appoint two [select one or more of the]
101	101	members of the board of directors of the corporation [from a list of
102	102	candidates with substantial background and expertise in
103	103	investments that is] submitted to the board by the board of regents
104	104	of The Texas A&M University System.
105	105	(i-1) The corporation shall provide to the Legislative
106	106	Budget Board and the governor written notice of the terms of any
107	107	payment to or agreement to pay a director, officer, or employee of
108	108	the corporation a bonus, reward, or other incentive payment based
109	109	on the performance of the director, officer, or employee, including
110	110	the performance of an investment made or recommended by the
111	111	director, officer, or employee. The notice must be provided to the
112	112	Legislative Budget Board and the governor not later than seven days
113	113	after the earlier of the date the board makes the payment or enters
114	114	into the agreement. If notice of an agreement is provided not later
115	115	than seven days after the board enters into the agreement, the board
116	116	is not required to provide notice after payments are made under the
117	117	agreement.
118	118	SECTION 5. Section 321.013, Government Code, is amended by
119	119	adding Subsection (k) to read as follows:
120	120	(k) The State Auditor may conduct audits of special water
121	121	authorities, as specified in the audit plan.
122	122	SECTION 6. Subchapter B, Chapter 403, Government Code, is
123	123	amended by adding Section 403.0122 to read as follows:
124	124	Sec. 403.0122. DEPOSIT OF AMERICAN RECOVERY AND
125	125	REINVESTMENT ACT FUNDS. (a) The American Recovery and
126	126	Reinvestment Act fund (ARRA fund) is created as a special fund in
127	127	the state treasury outside the general revenue fund.
128	128	Notwithstanding any state law to the contrary and except as
129	129	otherwise provided by federal law, state agencies that receive
130	130	money under the American Recovery and Reinvestment Act of 2009
131	131	(Pub. L. No. 111-5) (ARRA) shall deposit such money in the ARRA fund
132	132	as the comptroller determines is necessary to hold and account for
133	133	ARRA funds.
134	134	(b) Additional funds may be deposited into the ARRA fund as
135	135	appropriated by the legislature, required by federal law, or as the
136	136	comptroller determines is necessary to account for ARRA related
137	137	funds. Funds deposited into the ARRA fund may only be used for the
138	138	purposes identified in the ARRA to stimulate the economy, including
139	139	aid for unemployment, welfare, education, health, and
140	140	infrastructure.
141	141	(c) Agencies shall transfer amounts between the ARRA fund
142	142	and other accounts and funds as the comptroller determines is
143	143	necessary to properly account for ARRA funds. This section does not
144	144	affect the authority of the comptroller to establish and use
145	145	accounts necessary to manage and account for revenues and
146	146	expenditures.
147	147	(d) Interest earned on funds deposited into the ARRA fund is
148	148	exempt from Section 404.071, and shall be retained in the fund.
149	149	(e) The comptroller may issue guidelines for state agencies
150	150	regarding the implementation of the provisions of this section.
151	151	SECTION 7. Subsection (d), Section 403.0551, Government
152	152	Code, is amended to read as follows:
153	153	(d) This section does not authorize the comptroller to
154	154	deduct the amount of a state employee's indebtedness to a state
155	155	agency from any amount of compensation owed by the agency to the
156	156	employee, the employee's successor, or the assignee of the employee
157	157	or successor. In this subsection, "compensation" has the meaning
158	158	assigned by Section 403.055, and ["compensation,"] "indebtedness,"
159	159	"state agency," "state employee," and "successor" have the meanings
160	160	assigned by Section 666.001.
161	161	SECTION 8. Subsection (c), Section 495.025, Government
162	162	Code, as added by Chapter 100 (S.B. 1580), Acts of the 80th
163	163	Legislature, Regular Session, 2007, is reenacted to read as
164	164	follows:
165	165	(c) The department shall transfer 50 percent of all
166	166	commissions paid to the department by a vendor under this section to
167	167	the compensation to victims of crime fund established by Subchapter
168	168	B, Chapter 56, Code of Criminal Procedure, and the other 50 percent
169	169	to the credit of the undedicated portion of the general revenue
170	170	fund, except that the department shall transfer the first $10
171	171	million of the commissions collected in any given year under a
172	172	contract awarded under this section to the compensation to victims
173	173	of crime fund established by Subchapter B, Chapter 56, Code of
174	174	Criminal Procedure. This section does not reduce any
175	175	appropriation to the department.
176	176	SECTION 9. Subsection (a), Section 661.062, Government
177	177	Code, is amended to read as follows:
178	178	(a) A state employee who, at any time during the employee's
179	179	lifetime, has accrued six months of continuous state employment and
180	180	who resigns, is dismissed, or otherwise separates from state
181	181	employment by a state agency other than an institution of higher
182	182	education is entitled to be paid for the accrued balance of the
183	183	employee's vacation time as of the date of separation, if the
184	184	individual is not reemployed by the state in a position under which
185	185	the employee accrues vacation leave for one calendar month [during
186	186	the 30-day period] immediately following the date of separation
187	187	from state employment. A state employee who, at any time during the
188	188	employee's lifetime, has accrued six months of continuous state
189	189	employment and who resigns, is dismissed, or otherwise separates
190	190	from state employment by an institution of higher education is
191	191	entitled to be paid for the accrued balance of the employee's
192	192	vacation time as of the date of separation.
193	193	SECTION 10. The heading to Chapter 801, Government Code, is
194	194	amended to read as follows:
195	195	CHAPTER 801. STATE PENSION AND INVESTMENT REVIEW BOARD
196	196	SECTION 11. Subdivision (1), Section 801.001, Government
197	197	Code, is amended to read as follows:
198	198	(1) "Board" means the State Pension and Investment
199	199	Review Board.
200	200	SECTION 12. Section 801.101, Government Code, is amended to
201	201	read as follows:
202	202	Sec. 801.101. PENSION AND INVESTMENT REVIEW BOARD. The
203	203	State Pension and Investment Review Board is an agency of the state.
204	204	SECTION 13. Subsection (a), Section 801.102, Government
205	205	Code, is amended to read as follows:
206	206	(a) The board is composed of seven [nine] members.
207	207	SECTION 14. Section 801.103, Government Code, is amended to
208	208	read as follows:
209	209	Sec. 801.103. MEMBERS APPOINTED BY GOVERNOR. (a) The
210	210	governor shall appoint, with the advice and consent of the senate,
211	211	five [seven] members to the board.
212	212	(b) The governor shall appoint to the board:
213	213	(1) three persons who have experience in the fields of
214	214	securities investment, pension administration, [or] pension law,
215	215	institutional investment, investment risk management, or
216	216	institutional audits but who are not members or retirees of a public
217	217	retirement system;
218	218	(2) one person who is a fellow of the Society of
219	219	Actuaries, a member of the American Academy of Actuaries, or an
220	220	enrolled actuary under the federal Employee Retirement Income
221	221	Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.); and
222	222	(3) [one person who has experience in the field of
223	223	governmental finance;
224	224	[(4)] one person who:
225	225	(A) is a contributing member of a public
226	226	retirement system; or
227	227	(B) [and
228	228	[(5) one person who] is receiving retirement benefits
229	229	from a public retirement system.
230	230	SECTION 15. Section 801.104, Government Code, is amended to
231	231	read as follows:
232	232	Sec. 801.104. MEMBERS APPOINTED BY OTHERS. (a) The
233	233	lieutenant governor shall appoint one member to the board [one
234	234	member of the senate].
235	235	(b) The speaker of the house of representatives shall
236	236	appoint one member to the board [one member of the house].
237	237	(c) Each person appointed to the board under this section
238	238	must have experience in the field of securities investment, pension
239	239	administration, pension law, institutional investment, investment
240	240	risk management, or institutional audits.
241	241	SECTION 16. Section 801.106, Government Code, is amended to
242	242	read as follows:
243	243	Sec. 801.106. TERMS OF OFFICE. Members of the board hold
244	244	office for staggered terms of six years, with the terms of two or
245	245	three members expiring on January 31 of each odd-numbered year.
246	246	SECTION 17. Section 801.107, Government Code, is amended to
247	247	read as follows:
248	248	Sec. 801.107. SUNSET PROVISION. The State Pension and
249	249	Investment Review Board is subject to Chapter 325 (Texas Sunset
250	250	Act). Unless continued in existence as provided by that chapter,
251	251	the board is abolished and this chapter expires September 1, 2013.
252	252	SECTION 18. The heading to Section 801.113, Government
253	253	Code, is amended to read as follows:
254	254	Sec. 801.113. PROVISION OF CERTAIN SERVICES [FUND].
255	255	SECTION 19. Subsection (e), Section 801.113, Government
256	256	Code, is amended to read as follows:
257	257	(e) The board is authorized to conduct training sessions,
258	258	schools, or other educational activities for trustees and
259	259	administrators of public retirement systems. The board may also
260	260	furnish other appropriate services such as actuarial studies or
261	261	other requirements of systems and may establish appropriate fees
262	262	for these activities and services. [The fees may be based on
263	263	whether or not the trustees, administrators, or systems contribute
264	264	to the State Pension Review Board fund under Subsection (c) of this
265	265	section. The net proceeds of these fees shall be deposited in the
266	266	fund.]
267	267	SECTION 20. Subsections (b) and (c), Section 801.201,
268	268	Government Code, are amended to read as follows:
269	269	(b) For the purpose of performing its duties under Section
270	270	801.202(1) or (2), the board by rule may require clarification of
271	271	information provided by a public retirement system or other entity
272	272	subject to Subchapter D in a report that is required by law and is
273	273	required to be filed with the board. [A rule adopted under this
274	274	subsection may not be enforced against a public retirement system
275	275	if compliance with the rule would cause the system to incur a major
276	276	expense.]
277	277	(c) The board by rule shall:
278	278	(1) adopt actuarial guidelines that may be used by
279	279	public retirement systems;
280	280	(2) adopt a brief standard form that will assist the
281	281	board in efficiently determining the actuarial soundness, if
282	282	applicable, and current financial condition of a public retirement
283	283	system or other entity subject to Subchapter D; and
284	284	(3) [(2)] require that a retirement system or other
285	285	entity subject to Subchapter D submitting information required for
286	286	the review or study described under Section 801.202(1) or (2)
287	287	include the form with the submission.
288	288	SECTION 21. Section 801.202, Government Code, is amended to
289	289	read as follows:
290	290	Sec. 801.202. GENERAL DUTIES. The board shall:
291	291	(1) conduct a continuing review of:
292	292	(A) public retirement systems, compiling and
293	293	comparing information about benefits, creditable service,
294	294	financing, and administration of systems; and
295	295	(B) the investment practices of public
296	296	retirement systems and other entities subject to Subchapter D;
297	297	(2) conduct intensive studies of potential or existing
298	298	problems that threaten [the actuarial soundness of] or inhibit:
299	299	(A) the financial condition or actuarial
300	300	soundness of public funds managed or invested by an entity subject
301	301	to Subchapter D; or
302	302	(B) an equitable distribution of benefits in one
303	303	or more public retirement systems;
304	304	(3) provide information and technical assistance on
305	305	pension planning to public retirement systems on request; [and]
306	306	(4) review and document whether the board believes an
307	307	entity subject to Subchapter D is investing funds in compliance
308	308	with:
309	309	(A) the entity's investment strategy; and
310	310	(B) applicable law governing the entity's
311	311	investments; and
312	312	(5) recommend policies, practices, and legislation to
313	313	public retirement systems and other entities subject to Subchapter
314	314	D and appropriate governmental entities.
315	315	SECTION 22. Subsection (a), Section 801.203, Government
316	316	Code, is amended to read as follows:
317	317	(a) The board shall present to the legislature and the
318	318	governor, in November of each even-numbered year, a public report
319	319	explaining the work and findings of the board during the preceding
320	320	two-year period and including drafts or recommendations of any
321	321	legislation relating to public retirement systems or other entities
322	322	subject to Subchapter D that the board finds advisable.
323	323	SECTION 23. Section 801.204, Government Code, is amended to
324	324	read as follows:
325	325	Sec. 801.204. INSPECTION OF RECORDS. To the extent it is
326	326	necessary to perform [In performing] its functions, the board may
327	327	inspect the books, records, or accounts of a public retirement
328	328	system or another entity subject to Subchapter D during business
329	329	hours of the system.
330	330	SECTION 24. Chapter 801, Government Code, is amended by
331	331	adding Subchapter D to read as follows:
332	332	SUBCHAPTER D. BOARD INVESTMENT OVERSIGHT
333	333	Sec. 801.301. APPLICABILITY. (a) This subchapter applies
334	334	only to the investment of:
335	335	(1) public funds by:
336	336	(A) the comptroller;
337	337	(B) the Employees Retirement System of Texas,
338	338	including a retirement system administered by that system;
339	339	(C) the Teacher Retirement System of Texas;
340	340	(D) the Texas Municipal Retirement System;
341	341	(E) the Texas County and District Retirement
342	342	System; and
343	343	(F) the Texas Emergency Services Retirement
344	344	System;
345	345	(2) the permanent university fund by the board of
346	346	regents of The University of Texas System or any entity acting on
347	347	behalf of the board of regents, including a nonprofit corporation
348	348	acting under Section 66.08, Education Code; and
349	349	(3) the permanent school fund by the State Board of
350	350	Education or any entity acting on behalf of the State Board of
351	351	Education, including a nonprofit corporation acting under Section
352	352	43.006, Education Code.
353	353	(b) For purposes of this subchapter, a reference to "public
354	354	retirement system" means a public retirement system subject to this
355	355	subchapter.
356	356	Sec. 801.302. ANNUAL REPORT TO BOARD. An entity subject to
357	357	this subchapter shall, not later than six months after the last day
358	358	of the fiscal year under which the entity operates or, if a public
359	359	retirement system, the plan year under which the entity operates,
360	360	file with the board and post on the entity's Internet website
361	361	information that the board determines is necessary to perform the
362	362	board's duties under Section 801.202 unless the information is
363	363	confidential under law.
364	364	Sec. 801.303. REPORT ON INVESTMENT STRATEGY. (a) An
365	365	entity subject to this subchapter shall:
366	366	(1) develop and adopt a written investment strategy;
367	367	(2) file a copy of the strategy with the board not
368	368	later than the 90th day after the date the strategy is adopted; and
369	369	(3) file a copy of each change to the strategy with the
370	370	board not later than the 90th day after the change is adopted.
371	371	(b) A report under this section may be combined with any
372	372	other report required by this chapter or Chapter 802.
373	373	Sec. 801.304. TIMELY SUBMISSION OF CERTAIN REPORTS AND
374	374	RESPONSES REQUIRED. (a) The presiding officer of an entity
375	375	subject to this subchapter or the governing body of an entity
376	376	subject to this subchapter is responsible for ensuring that a
377	377	report or a response to a request for information made by the board
378	378	for the purpose of performing the board's duties under Section
379	379	801.202 is filed timely with the board.
380	380	(b) It is grounds for removal by the appropriate appointing
381	381	officer if the presiding officer of an entity subject to this
382	382	subchapter or the governing body of an entity subject to this
383	383	subchapter consistently fails to timely submit a report or respond
384	384	to a request for information under Subsection (a).
385	385	(c) If the board determines that the presiding officer of an
386	386	entity subject to this subchapter consistently fails to timely
387	387	report or respond to a request for information under Subsection
388	388	(a), the board shall notify the appropriate appointing officer, if
389	389	any, the governor, if the governor is not the appropriate
390	390	appointing officer, and the Legislative Budget Board of its
391	391	determination.
392	392	Sec. 801.305. CONTRACTS WITH INVESTMENT MANAGERS AND
393	393	CERTAIN OTHERS. A contract with an investment manager or other
394	394	person to provide services to an entity subject to this subchapter
395	395	relating to the management and investment of public funds for or on
396	396	behalf of the entity is subject to review by the board regarding the
397	397	fees charged and paid by the subject entity and the services
398	398	rendered to the entity in consideration for the fees.
399	399	Sec. 801.306. DISCLOSURE OF CERTAIN POTENTIAL CONFLICTS OF
400	400	INTEREST; ANNUAL FILING. (a) This section applies to:
401	401	(1) a member of the governing body of a public
402	402	retirement system subject to this subchapter;
403	403	(2) an investment manager for a public retirement
404	404	system appointed by contract;
405	405	(3) a member of the board of regents of The University
406	406	of Texas System;
407	407	(4) the officers and directors of a nonprofit
408	408	corporation under contract with the board of regents of The
409	409	University of Texas System under Section 66.08, Education Code, to
410	410	invest the funds of the permanent university fund on behalf of the
411	411	board of regents;
412	412	(5) a member of the State Board of Education;
413	413	(6) the officers and directors of a nonprofit
414	414	corporation acting under contract with the State Board of Education
415	415	to invest the funds of the permanent school fund under Section
416	416	43.006, Education Code; and
417	417	(7) any private professional investment manager who
418	418	has entered into a contract with the comptroller under Section
419	419	404.024(k) to assist the comptroller in investing public funds.
420	420	(b) A person to whom this section applies and who has a
421	421	business, commercial, or other relationship that a reasonable
422	422	person would find likely to materially diminish the person's
423	423	independence of judgment in the performance of the person's
424	424	responsibilities with respect to the management or investment of
425	425	public funds for or on behalf of an entity subject to this
426	426	subchapter shall immediately disclose the relationship in writing
427	427	to the entity.
428	428	(c) If a person described by Subsection (a)(1) or (3)
429	429	intentionally fails to disclose a relationship under Subsection
430	430	(b), it is a ground for removal from the governing body of the
431	431	entity on which the person serves.
432	432	(d) If a person described by Subsection (a)(2), (4), (6),
433	433	(7), or (8) intentionally fails to disclose a relationship under
434	434	Subsection (b):
435	435	(1) the contract is voidable by the entity; and
436	436	(2) the governing body of the entity may enter an order
437	437	declaring the person ineligible to contract for business relating
438	438	to the management or investment of public funds for or on behalf of
439	439	the entity.
440	440	(e) At least annually and not later than a date specified by
441	441	the entity, a person to whom this section applies shall file a
442	442	statement with the entity stating that the person is aware that the
443	443	person is required to disclose material conflicts of interest under
444	444	this section and that the person is in compliance with this section.
445	445	Sec. 801.307. PROHIBITION AGAINST ACCEPTANCE OF CERTAIN
446	446	GIFTS. In any 12-month period, the comptroller or a person who is a
447	447	member of the governing body of a public retirement system, the
448	448	board of regents of The University of Texas System, or the State
449	449	Board of Education or an employee of an entity subject to this
450	450	subchapter employed in a "bona fide executive, administrative, or
451	451	professional capacity," as that phrase is used for purposes of
452	452	establishing an exemption to the overtime provisions of the federal
453	453	Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),
454	454	may not accept a gift or gifts, the total value of which is more than
455	455	$250, including food, entertainment, and a promised future benefit,
456	456	from another person doing business with or seeking to do business
457	457	with the entity.
458	458	Sec. 801.308. PROHIBITED CONTRACTS. A public retirement
459	459	system, the board of regents of The University of Texas System, or
460	460	the State Board of Education may not directly or indirectly enter
461	461	into a contract with a former member of the governing body of a
462	462	public retirement system, the board of regents of The University of
463	463	Texas System, or the State Board of Education, respectively, to
464	464	provide services relating to the management and investment of
465	465	public funds before the second anniversary of the date the person
466	466	ceases to be a member of the body or board, as applicable.
467	467	Sec. 801.309. CIVIL PENALTY. (a) A person who commits
468	468	fraud, theft, embezzlement, fraudulent conversion, unlawful
469	469	appropriation, or misapplication of property in relation to a
470	470	service provided by the person to an entity subject to this
471	471	subchapter is liable to this state for a civil penalty in an amount
472	472	not to exceed $250,000 for each offense.
473	473	(b) The attorney general may bring an action to recover the
474	474	civil penalty imposed under this section.
475	475	(c) The penalty under this section is in addition to any
476	476	other remedy provided by law.
477	477	Sec. 801.310. INVESTIGATION OF CERTAIN COMPLAINTS;
478	478	ASSISTANCE OF ATTORNEY GENERAL. (a) The board shall adopt rules
479	479	and procedures for receiving and investigating a complaint against
480	480	a person who provides management or investment services to an
481	481	entity subject to this subchapter alleging that the person:
482	482	(1) violated or may have violated Section 801.306 or
483	483	another applicable conflict of interest provision; or
484	484	(2) has been or may have been involved in criminal
485	485	conduct relating to the services provided by the person to the
486	486	entity.
487	487	(b) The board or the attorney general may, without receiving
488	488	a complaint, initiate an investigation under this section if the
489	489	board or the attorney general, as applicable, determines an
490	490	investigation is appropriate.
491	491	(c) The board may enter into a memorandum of understanding
492	492	with the attorney general to assist in an investigation under this
493	493	section. The memorandum must specify the type, scope, and format of
494	494	the investigative assistance provided by the attorney general.
495	495	(d) If the board or the attorney general determines that a
496	496	criminal offense may have been committed, the board or the attorney
497	497	general, as applicable, shall refer the case to the appropriate law
498	498	enforcement agency for prosecution.
499	499	SECTION 25. Subdivision (1), Section 802.001, Government
500	500	Code, is amended to read as follows:
501	501	(1) "Board" means the State Pension and Investment
502	502	Review Board.
503	503	SECTION 26. Subsection (d), Section 802.003, Government
504	504	Code, is amended to read as follows:
505	505	(d) The State Pension and Investment Review Board may file
506	506	an appropriate pleading, in the manner provided by this section for
507	507	filing by an individual, for the purpose of enforcing a requirement
508	508	of Subchapter B or C, other than a requirement of Section
509	509	802.101(a), 802.101(d), 802.102, 802.103(a), or 802.104.
510	510	SECTION 27. Subsection (c), Section 802.101, Government
511	511	Code, is amended to read as follows:
512	512	(c) The governing body of a public retirement system shall
513	513	file with the State Pension and Investment Review Board a copy of
514	514	each actuarial study and each separate report made as required by
515	515	law.
516	516	SECTION 28. Subsection (j), Section 802.1012, Government
517	517	Code, is amended to read as follows:
518	518	(j) The governmental entity shall:
519	519	(1) maintain a copy of the final audit report at its
520	520	main office for public inspection;
521	521	(2) submit a copy of the final audit report to the
522	522	public retirement system and the State Pension and Investment
523	523	Review Board not later than the 30th day after the date the final
524	524	audit report is received by the governmental entity; and
525	525	(3) pay all costs associated with conducting the audit
526	526	and preparing and distributing the report under this section.
527	527	SECTION 29. Subchapter B, Chapter 802, Government Code, is
528	528	amended by adding Section 802.1013 to read as follows:
529	529	Sec. 802.1013. ACTUARIAL EXPERIENCE STUDIES. (a) In this
530	530	section, "plan year" means the 12-month accounting period of the
531	531	affected pension plan of a public retirement system subject to this
532	532	section.
533	533	(b) Subject to Subsection (c), the board may require a
534	534	public retirement system with total assets the book value of which,
535	535	as of the last day of the preceding plan year, is at least $100
536	536	million to conduct an actuarial experience study.
537	537	(c) The board may not require a public retirement system to
538	538	conduct more than one actuarial experience study every five years.
539	539	(d) The board may adopt rules to implement this section.
540	540	SECTION 30. Subsections (b) and (c), Section 802.103,
541	541	Government Code, are amended to read as follows:
542	542	(b) The governing body of a public retirement system shall,
543	543	before the 211th day after the last day of the fiscal year under
544	544	which the system operates, file with the State Pension and
545	545	Investment Review Board a copy of each annual financial report it
546	546	makes as required by law.
547	547	(c) A public retirement system that is subject to Chapter
548	548	125, Acts of the 45th Legislature, Regular Session, 1937 (Article
549	549	6243e, Vernon's Texas Civil Statutes), and that has total assets
550	550	with a book value, as of the last day of the fiscal year, of less
551	551	than $50,000, may submit to the State Pension and Investment Review
552	552	Board for that year, instead of the financial report otherwise
553	553	required by this section to be published and submitted, a copy of
554	554	the financial report it submits to the firemen's pension
555	555	commissioner.
556	556	SECTION 31. Subsection (a), Section 802.105, Government
557	557	Code, is amended to read as follows:
558	558	(a) Each public retirement system shall, before the 91st day
559	559	after the date of its creation, register with the State Pension and
560	560	Investment Review Board.
561	561	SECTION 32. Subsection (h), Section 802.106, Government
562	562	Code, is amended to read as follows:
563	563	(h) A public retirement system shall submit to the State
564	564	Pension and Investment Review Board copies of the summarized
565	565	information required by Subsections (a) and (b). A system shall
566	566	submit a copy of the information required by Subsection (a) before
567	567	the 31st day after the date of publication and a copy of the
568	568	information required by Subsection (b) before the 271st day after
569	569	the date a change is adopted.
570	570	SECTION 33. Section 802.107, Government Code, is amended to
571	571	read as follows:
572	572	Sec. 802.107. GENERAL PROVISIONS RELATING TO REPORTS.
573	573	(a) A public retirement system shall maintain for public review at
574	574	its main office and at such other locations as the retirement system
575	575	considers appropriate copies of the most recent edition of each
576	576	type of report or other information required by this chapter to be
577	577	submitted to the State Pension and Investment Review Board unless
578	578	the information is confidential under law. Public information
579	579	required to be reported annually to the board may be posted on the
580	580	retirement system's Internet website or on the website of the
581	581	board.
582	582	(b) Information required by this chapter to be submitted to
583	583	the State Pension and Investment Review Board may be contained in
584	584	one or more documents but must be submitted within the period
585	585	provided by the provision requiring the information.
586	586	SECTION 34. Subsection (d), Section 802.202, Government
587	587	Code, is amended to read as follows:
588	588	(d) The governing body of a public retirement system shall:
589	589	(1) develop and adopt a written investment policy;
590	590	(2) maintain for public review at its main office a
591	591	copy of the policy;
592	592	(3) file a copy of the policy with the State Pension
593	593	and Investment Review Board not later than the 90th day after the
594	594	date the policy is adopted; and
595	595	(4) file a copy of each change to the policy with the
596	596	State Pension and Investment Review Board not later than the 90th
597	597	day after the change is adopted.
598	598	SECTION 35. The heading to Section 802.3021, Government
599	599	Code, is amended to read as follows:
600	600	Sec. 802.3021. STATE PENSION AND INVESTMENT REVIEW BOARD
601	601	ACTUARY.
602	602	SECTION 36. Subsection (f), Section 810.001, Government
603	603	Code, is amended to read as follows:
604	604	(f) Every political entity which establishes or maintains a
605	605	public retirement system covered under this Act shall file all
606	606	reports with the State Pension and Investment Review Board required
607	607	by Chapter 802. If a political subdivision establishes a
608	608	retirement program that would be a "public retirement system"
609	609	within the meaning ascribed to that term by Section 801.001, but for
610	610	the fact that the program is administered by a life insurance
611	611	company, the subdivision shall notify the State Pension and
612	612	Investment Review Board of the establishment of the program and the
613	613	name of the administering company.
614	614	SECTION 37. Subsection (d), Section 815.110, Government
615	615	Code, is amended to read as follows:
616	616	(d) No later than 30 days after the legislative audit
617	617	committee receives an audit report, the committee shall file a copy
618	618	of the report with the retirement system, the governor, the
619	619	lieutenant governor, the speaker of the house of representatives,
620	620	the State Pension and Investment Review Board, the state auditor,
621	621	and the secretary of state for publication in the Texas Register.
622	622	SECTION 38. Subsection (a), Section 815.510, Government
623	623	Code, is amended to read as follows:
624	624	(a) The Employees Retirement System of Texas shall submit a
625	625	report not later than the 25th day of the month following the end of
626	626	each fiscal year to the governor, the lieutenant governor, the
627	627	speaker of the house of representatives, the executive director of
628	628	the State Pension and Investment Review Board, the appropriate
629	629	oversight committees of the house and senate, and the Legislative
630	630	Budget Board. The report shall include the following:
631	631	(1) the current end-of-fiscal-year market value of the
632	632	trust fund;
633	633	(2) the asset allocations of the trust fund expressed
634	634	in percentages of stocks, fixed income, cash, or other financial
635	635	investments; and
636	636	(3) the investment performance of the trust fund
637	637	utilizing accepted industry measurement standards.
638	638	SECTION 39. Subsections (c) and (d), Section 825.108,
639	639	Government Code, are amended to read as follows:
640	640	(c) A copy of the report required by Subsection (a) must be
641	641	filed with the governor, the lieutenant governor, the speaker of
642	642	the house of representatives, the State Pension and Investment
643	643	Review Board, the legislative audit committee, and the state
644	644	auditor no later than December 15 of each year.
645	645	(d) A copy of the report required by Subsection (b) must be
646	646	filed with the governor, the lieutenant governor, the speaker of
647	647	the house of representatives, the State Pension and Investment
648	648	Review Board, the legislative audit committee, and the state
649	649	auditor no later than March 1 of each year.
650	650	SECTION 40. Subsection (d), Section 825.111, Government
651	651	Code, is amended to read as follows:
652	652	(d) No later than 30 days after the legislative audit
653	653	committee receives an audit report, the committee shall file a copy
654	654	of the report with the retirement system, the governor, the
655	655	lieutenant governor, the speaker of the house of representatives,
656	656	the State Pension and Investment Review Board, the state auditor,
657	657	and the secretary of state for publication in the Texas Register.
658	658	SECTION 41. Subsection (e), Section 825.512, Government
659	659	Code, is amended to read as follows:
660	660	(e) The retirement system shall submit an annual investment
661	661	performance report not later than the 45th day after the end of each
662	662	fiscal year to the governor, the lieutenant governor, the speaker
663	663	of the house of representatives, the executive director of the
664	664	State Pension and Investment Review Board, the legislative audit
665	665	committee, the committees of the senate and the house of
666	666	representatives having jurisdiction over appropriations, the
667	667	committees of the senate and the house of representatives having
668	668	principal jurisdiction over legislation governing the retirement
669	669	system, and the Legislative Budget Board. The report shall include
670	670	a listing of all commissions and fees paid by the system during the
671	671	reporting period for the sale, purchase, or management of system
672	672	assets.
673	673	SECTION 42. Section 825.513, Government Code, is amended to
674	674	read as follows:
675	675	Sec. 825.513. INFORMATION FOR PUBLICATION. The retirement
676	676	system shall verify with the State Pension and Investment Review
677	677	Board the accuracy of information about the effects of proposed
678	678	legislation on benefits and the trust fund before including the
679	679	information in an official publication of the retirement system.
680	680	SECTION 43. Section 825.518, Government Code, is amended to
681	681	read as follows:
682	682	Sec. 825.518. ANNUAL REPORT. The Teacher Retirement System
683	683	of Texas shall submit a statistical analysis based on information
684	684	compiled under Section 822.005(d) not later than the 25th day of the
685	685	month following the end of each fiscal year to the governor, the
686	686	lieutenant governor, the speaker of the house of representatives,
687	687	the executive director of the State Pension and Investment Review
688	688	Board, the appropriate oversight committees of the house and
689	689	senate, and the Legislative Budget Board.
690	690	SECTION 44. Section 2, Chapter 817 (S.B. 127), Acts of the
691	691	73rd Legislature, Regular Session, 1993 (Article 4413(34e),
692	692	Vernon's Texas Civil Statutes), is amended to read as follows:
693	693	Sec. 2. The manager of each state trust fund shall submit to
694	694	the governor, the lieutenant governor, the speaker of the house of
695	695	representatives, and the executive director of the State Pension
696	696	and Investment Review Board:
697	697	(1) not later than January 25 of each year, a report
698	698	with the information required by Section 3 of this Act covering the
699	699	last six months of the previous calendar year; and
700	700	(2) not later than June 25 of each year, a report with
701	701	the information required by Section 3 of this Act covering the first
702	702	six months of that calendar year.
703	703	SECTION 45. Subsection (d), Section 12.03, Chapter 183
704	704	(S.B. 598), Acts of the 64th Legislature, Regular Session, 1975
705	705	(Article 6243e.1, Vernon's Texas Civil Statutes), is amended to
706	706	read as follows:
707	707	(d) The board of trustees shall file with the State Pension
708	708	and Investment Review Board a copy of each actuarial study and each
709	709	separate report made as required by law.
710	710	SECTION 46. Section 10, Article 6243e.2(1), Revised
711	711	Statutes, is amended to read as follows:
712	712	Sec. 10. NONSTATUTORY BENEFIT INCREASES. The benefits
713	713	provided by this article may be increased if:
714	714	(1) an actuary selected by the board who, if an
715	715	individual, is a Fellow of the Society of Actuaries, a Fellow of the
716	716	Conference of Actuaries in Public Practice, or a member of the
717	717	American Academy of Actuaries determines that the increase cannot
718	718	reasonably be viewed as posing a material risk of jeopardizing the
719	719	fund's ability to pay any existing benefit;
720	720	(2) a majority of the participating members of the
721	721	fund vote for the increase by a secret ballot;
722	722	(3) the increase does not deprive a member, without
723	723	the member's written consent, of a right to receive benefits that
724	724	have already become fully vested and matured in a member; and
725	725	(4) the State Pension and Investment Review Board
726	726	approves the determination by the actuary selected by the board
727	727	that the increase cannot reasonably be viewed as posing a material
728	728	risk of jeopardizing the fund's ability to pay any existing
729	729	benefit.
730	730	SECTION 47. Subsections (a), (b), (c), (d), and (f),
731	731	Section 801.113, Government Code, are repealed.
732	732	SECTION 48. (a) Not later than January 1, 2010, the
733	733	composition of the board of directors of a corporation established
734	734	under Section 66.08, Education Code, must comply with the change in
735	735	law made by this Act regarding the composition of the board of
736	736	directors.
737	737	(b) Until January 1, 2010, the composition of the board of
738	738	directors of a corporation established under Section 66.08,
739	739	Education Code, is as provided by the law in effect immediately
740	740	before the effective date of this Act.
741	741	SECTION 49. (a) The state auditor shall conduct
742	742	comprehensive financially related audits, including audits of the
743	743	operations and performance, of the Brazos River Authority and the
744	744	Lower Colorado River Authority.
745	745	(b) A river authority audited under this section shall
746	746	cooperate and provide assistance and access to all necessary
747	747	records, confidential or nonconfidential, to the state auditor in
748	748	conducting the audit under this section.
749	749	(c) Not later than January 1, 2011, the state auditor shall
750	750	prepare a written report for each audit conducted under this
751	751	section and file the report in accordance with Section 321.014,
752	752	Government Code.
753	753	(d) A river authority audited under this section shall
754	754	reimburse the state auditor for the cost of performing the audit.
755	755	SECTION 50. Notwithstanding Chapter 1418 (H.B. 3107), Acts
756	756	of the 80th Legislature, Regular Session, 2007, money dedicated by
757	757	Subsection (c), Section 495.025, Government Code, as added by
758	758	Chapter 100 (S.B. 1580), Acts of the 80th Legislature, Regular
759	759	Session, 2007, to the compensation to victims of crime fund
760	760	established by Subchapter B, Chapter 56, Code of Criminal
761	761	Procedure, is rededicated by this Act.
762	762	SECTION 51. (a) The name of the State Pension Review Board
763	763	is changed to the State Pension and Investment Review Board. A
764	764	reference in law to the State Pension Review Board means the State
765	765	Pension and Investment Review Board. A reference in law to the
766	766	State Pension Review Board fund means the State Pension and
767	767	Investment Review Board fund.
768	768	(b) An appropriation for the use and benefit of the State
769	769	Pension Review Board is available for the use and benefit of the
770	770	State Pension and Investment Review Board.
771	771	SECTION 52. (a) As soon as practicable on or after the
772	772	effective date of this Act:
773	773	(1) the governor shall appoint five members to the
774	774	State Pension and Investment Review Board as provided by Section
775	775	801.103, Government Code, as amended by this Act, as follows:
776	776	(A) two members for a term expiring January 31,
777	777	2011;
778	778	(B) two members for a term expiring January 31,
779	779	2013; and
780	780	(C) one member for a term expiring January 31,
781	781	2015;
782	782	(2) the lieutenant governor shall appoint one member
783	783	to the State Pension and Investment Review Board as provided by
784	784	Subsection (a), Section 801.104, Government Code, as amended by
785	785	this Act, for a term expiring January 31, 2013; and
786	786	(3) the speaker of the house of representatives shall
787	787	appoint one member to the State Pension and Investment Review Board
788	788	as provided by Subsection (b), Section 801.104, Government Code, as
789	789	amended by this Act, for a term expiring January 31, 2015.
790	790	(b) The term of a member of the State Pension Review Board
791	791	serving immediately before the effective date of this Act expires
792	792	at the time five or more of the members appointed to the State
793	793	Pension and Investment Review Board under Subsection (a) of this
794	794	section qualify for office. Until the expiration of a member's term
795	795	occurs under this subsection, the member has the same powers and
796	796	duties that the member had immediately before that date.
797	797	SECTION 53. Subchapter D, Chapter 801, Government Code, as
798	798	added by this Act, applies to the oversight of funds by the State
799	799	Pension and Investment Review Board, regardless of whether the
800	800	investment of those funds was made before, on, or after the
801	801	effective date of this Act.
802	802	SECTION 54. This Act does not make an appropriation. A
803	803	provision in this Act that creates a new governmental program,
804	804	creates a new entitlement, or imposes a new duty on a governmental
805	805	entity is not mandatory during a fiscal period for which the
806	806	legislature has not made a specific appropriation to implement the
807	807	provision.
808	808	SECTION 55. This Act takes effect immediately if it
809	809	receives a vote of two-thirds of all the members elected to each
810	810	house, as provided by Section 39, Article III, Texas Constitution.
811	811	If this Act does not receive the vote necessary for immediate
812	812	effect, this Act takes effect on the 91st day after the last day of
813	813	the legislative session.