By: Truitt (Senate Sponsor - Duncan) H.B. No. 2193
(In the Senate - Received from the House April 12, 2011;
April 20, 2011, read first time and referred to Committee on State
Affairs; May 20, 2011, reported favorably by the following vote:
Yeas 7, Nays 0; May 20, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to service and qualifications for membership on an
advisory committee established by the Employees Retirement System
of Texas to provide advice to the board of trustees on investments
and investment-related issues.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 815, Government Code, is
amended by adding Sections 815.5091, 815.5092, and 815.5093 to read
as follows:
Sec. 815.5091. MEMBERSHIP ON ADVISORY COMMITTEE ON
INVESTMENTS. (a) The board of trustees may, under the investment
duties delegated to the board by Section 67, Article XVI, Texas
Constitution, establish an investment advisory committee as the
board considers necessary to assist the board in its investment
duties.
(b) A person appointed to serve as a member of an advisory
committee established by the board of trustees to provide advice to
the board on investments and investment-related issues must be:
(1) a person with expertise in the management of a
financial institution or other business in which investment
decisions are made; or
(2) a prominent educator in the field of economics,
finance, or another investment-related area.
(c) A person appointed to serve as a member of a committee
described by Subsection (b) shall assist the board of trustees in
carrying out the board's fiduciary duties with regard to the
investment of the assets of the retirement system and related
duties under this chapter and Chapter 609.
Sec. 815.5092. INELIGIBILITY FOR MEMBERSHIP ON ADVISORY
COMMITTEE ON INVESTMENTS. (a) A person is not eligible for
appointment to an advisory committee established by the board of
trustees to provide advice to the board on investments and
investment-related issues 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) is a paid officer, employee, or consultant of a
Texas trade association in the field of insurance or investment.
(b) A person is not eligible for appointment to a committee
described by Subsection (a) if the person is required to register as
a lobbyist under Chapter 305 because of the person's activities for
compensation on behalf of a business or an association related to
the investment of the assets of this state or of the retirement
system.
(c) In this section, "Texas trade association" has the
meaning assigned by Section 815.0031.
Sec. 815.5093. REVIEW OF AND REMOVAL FROM ADVISORY
COMMITTEE ON INVESTMENTS. (a) The board of trustees shall at
least annually review the eligibility status of members serving on
an advisory committee established to provide advice to the board on
investments and investment-related issues.
(b) It is a ground for removal from a committee described by
Subsection (a) that a person is:
(1) not qualified for appointment to the committee
under Section 815.5091 or 815.5092;
(2) unable to discharge the person's duties on the
committee because of illness, disability, or other personal
circumstances; or
(3) absent from more than half of the scheduled
meetings of the committee that the person is eligible to attend
during a calendar year.
(c) If the executive director or a member of the advisory
committee has knowledge that a potential ground for removal exists,
the executive director or committee member shall notify the
presiding officer of the board of trustees of the potential ground
for removal.
(d) This section does not limit the power of the board of
trustees to remove a person from the advisory committee under
Section 815.509(a).
(e) The board of trustees may prescribe the process for
removal from a committee described by Subsection (a).
SECTION 2. This Act takes effect September 1, 2011.
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