2011S0635-1 03/08/11
By: Otto H.B. No. 2825
A BILL TO BE ENTITLED
AN ACT
relating to the investment management of the permanent university
fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsections (d) and (e), Section 66.08,
Education Code, are amended to read as follows:
(d) The board of directors of the corporation shall have
nine members. The board shall appoint and remove seven [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 by the board. The
board of regents of The Texas A&M University System shall appoint
and remove two members of the board of directors of the corporation.
(e) A vote of 80 percent of the board of directors of the
corporation is required for:
(1) hiring and firing the chief executive officer of
the corporation;
(2) approval of the corporation's annual budget;
(3) awarding executive compensation, including
bonuses;
(4) changes to the corporation's asset allocation; and
(5) changes to the investment policies of the
corporation [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].
SECTION 2. 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, 2011.