By: Otto (Senate Sponsor - Williams) H.B. No. 2825
(In the Senate - Received from the House May 11, 2011;
May 11, 2011, read first time and referred to Committee on Finance;
May 17, 2011, reported favorably by the following vote: Yeas 13,
Nays 0; May 17, 2011, sent to printer.)
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 66.08(d) and (e), Education Code, are
amended to read as follows:
(d) The board of directors of the corporation shall have
nine members, determined as follows:
(1) six[. The board shall appoint and remove all]
members appointed by the board, of whom [of the board of directors
of the corporation. At least] three must be members of the board
and the other three must have a substantial background and
expertise in investments;
(2) [and] the chancellor of The University of Texas
System; and
(3) two members appointed by the board of regents of
The Texas A&M University System, at least one of whom must have a
substantial background and expertise in investments [shall be
appointed as directors].
(e) Each appointed member of the board of directors of the
corporation is subject to removal and replacement by and at the
pleasure of the appointing entity [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. (a) This section applies to the corporation
described by Section 66.08, Education Code, and governs the
implementation of the changes in law made by this Act to the board
of directors of the corporation.
(b) This Act does not affect the terms of office of members
of the corporation's board of directors who are serving on the
effective date of this Act.
(c) The board of regents of The Texas A&M University System
shall appoint two directors as required by Section 66.08(d)(3),
Education Code, as added by this Act, as follows:
(1) one director on the expiration of the term of
office of a director serving on the effective date of this Act who,
under prior law, was appointed to that position on recommendation
of that board of regents; and
(2) one director on the first expiration after the
effective date of this Act of a term of office of any director,
other than:
(A) the director described by Subdivision (1) of
this subsection; and
(B) any director who also serves as a member of
the board of regents of a university system, as defined by Section
61.003, Education Code.
(d) As soon as practicable after the effective date of this
Act, the board of directors of the corporation and the board of
regents of The University of Texas System shall amend the bylaws of
the corporation as necessary to give effect to the requirements 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, 2011.
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