82R9987 CAE-D
By: Patrick H.B. No. 3472
A BILL TO BE ENTITLED
AN ACT
relating to the ethics and financial disclosure requirements of
members of the governing board, officers, and employees of certain
public retirement systems and officers and employees of a nonprofit
corporation for investment of the permanent university fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 66.08, Education Code, is amended by
adding Subsections (p), (q), and (r) to read as follows:
(p) A director or officer of the corporation required to
file a personal financial statement under Subchapter B, Chapter
572, Government Code, must file a copy of the financial statement
that is filed with the Texas Ethics Commission with a person
designated by the board of directors. The designated person shall
review each statement to identify any potential conflicts of
interest and shall report to the board of directors any conflicts of
interest identified.
(q) Each employee of the corporation who exercises
significant decision-making or fiduciary authority, as determined
by the board of directors, shall file financial disclosure
statements with a person designated by the board of directors. The
content of a financial disclosure statement must comply
substantially with the requirements of Subchapter B, Chapter 572,
Government Code. A statement must be filed not later than the 30th
day after the date a person is employed in a significant
decision-making or fiduciary position and annually after
employment not later than April 30. The filing deadline may be
postponed by the board of directors for not more than 60 days on
written request or for an additional period for good cause, as
determined by the board of directors. The designated person shall
review each statement to identify any potential conflicts of
interest and shall report to the board of directors any conflicts of
interest identified. The corporation shall maintain a financial
disclosure statement for at least five years after the date of its
filing.
(r) An employee required to file a financial disclosure
statement under Subsection (q) must annually file a signed
statement that the employee has disclosed any outside employment
activity or business activity and that the employee has received
approval from the board of directors for the employment or business
activity.
SECTION 2. Subchapter A, Chapter 572, Government Code, is
amended by adding Section 572.009 to read as follows:
Sec. 572.009. APPLICABILITY TO NONPROFIT INVESTMENT
CORPORATION FOR PERMANENT UNIVERSITY FUND. (a) A provision of this
chapter that applies to a state agency applies to a nonprofit
corporation under contract with the board of regents of The
University of Texas System under Section 66.08, Education Code, to
invest the funds of the permanent university fund on behalf of the
board of regents.
(b) A provision of this chapter that applies to an appointed
officer of a major state agency applies to a member of the board of
directors of a nonprofit corporation described by Subsection (a).
SECTION 3. Section 815.213, Government Code, is amended to
read as follows:
Sec. 815.213. ETHICS AND DISCLOSURE REQUIREMENTS. (a) The
board of trustees shall adopt an investment policy that includes a
code of ethics. The code of ethics must contain standards of
ethical conduct and disclosure requirements applicable to the
members of the board of trustees and employees of the retirement
system in the administration of this subtitle.
(b) A member of the board of trustees or an officer of the
retirement system required to file a personal financial statement
under Subchapter B, Chapter 572, must file a copy of the financial
statement that is filed with the Texas Ethics Commission with a
person designated by the board. The designated person shall review
each statement to identify any potential conflicts of interest and
shall report to the board of trustees any conflicts of interest
identified.
(c) Each employee of the retirement system who exercises
significant decision-making or fiduciary authority, as determined
by the board of trustees, shall file financial disclosure
statements with a person designated by the board. The content of a
financial disclosure statement must comply substantially with the
requirements of Subchapter B, Chapter 572. A statement must be
filed not later than the 30th day after the date a person is
employed in a significant decision-making or fiduciary position and
annually after employment not later than April 30. The filing
deadline may be postponed by the executive director for not more
than 60 days on written request or for an additional period for good
cause, as determined by the executive director. The designated
person shall review each statement to identify any potential
conflicts of interest and shall report to the board of trustees any
conflicts of interest identified. The retirement system shall
maintain a financial disclosure statement for at least five years
after the date of its filing.
(d) An employee required to file a financial disclosure
statement under Subsection (c) must annually file a signed
statement that the employee has disclosed any outside employment
activity or business activity and that the employee has received
approval from the executive director for the employment or business
activity.
SECTION 4. Section 825.212, Government Code, is amended by
adding Subsections (i) and (j) to read as follows:
(i) A member of the board of trustees or an officer of the
retirement system required to file a personal financial statement
under Subchapter B, Chapter 572, must file a copy of the financial
statement that is filed with the Texas Ethics Commission with a
person designated by the board. The designated person shall review
each statement to identify any potential conflicts of interest and
shall report to the board of trustees any conflicts of interest
identified.
(j) An employee required to file a financial disclosure
statement under Subsection (b) must annually file a signed
statement that the employee has disclosed any outside employment
activity or business activity and that the employee has received
approval from the executive director for the employment or business
activity.
SECTION 5. This Act takes effect September 1, 2011.