By: McClendon H.B. No. 3747
A BILL TO BE ENTITLED
AN ACT
relating to the selection of certain members of the board of
trustees of the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 821.001(5), Government Code, is amended
to read as follows:
(5) "Board of trustees" means the board appointed or
elected under this subtitle to administer the retirement system.
SECTION 2. The heading to Section 825.002, Government Code,
is amended to read as follows:
Sec. 825.002. APPOINTMENT AND ELECTION OF TRUSTEES
[APPOINTED BY GOVERNOR].
SECTION 3. Sections 825.002(a), (c), (d), and (e),
Government Code, are amended to read as follows:
(a) The governor shall appoint, with the advice and consent
of the senate and as provided by this section, three [seven] members
of the board of trustees, in addition to the two appointees
nominated and confirmed in the manner described in Sec. 825.003.
(b) The governor shall appoint three members of the board to
hold office for staggered terms, with the term of one trustee
expiring on August 31 of each odd-numbered year. These members must
be persons who have demonstrated financial expertise, who have
worked in private business or industry, and who have broad
investment experience, preferably in investment of pension funds.
None of the members appointed under this subsection may be a member
or annuitant of the retirement system.
(c) Members of the retirement system whose most recent
credited service was performed for a public school district [The
governor] shall elect under rules adopted by the board [appoint]
two members of the board who must be [from a slate of three] members
of the retirement system and [who are] currently employed by a
public school district [and who have been nominated in accordance
with Subsection (f) by the members of the retirement system whose
most recent credited service was performed for a public school
district]. The two members hold office for staggered terms.
(d) Persons who have retired and are receiving benefits from
the retirement system [The governor] shall elect under rules
adopted by the board [appoint] one member of the board who must be a
[from a slate of three] former member [members] of the retirement
system who is [have] retired and [are] receiving benefits from the
retirement system [and who have been nominated in accordance with
Subsections (f) and (g) by the persons who have retired and are
receiving benefits from the retirement system].
(e) Members of the retirement system whose most recent
credited service was performed for an institution of higher
education [The governor] shall elect under rules adopted by the
board [appoint] one member who must be a member [from a slate of
three members] of the retirement system and [who are] currently
employed by an institution of higher education [and who have been
nominated in accordance with Subsection (f) by the members of the
retirement system whose most recent credited service was performed
for an institution of higher education].
SECTION 4. Sections 825.0032(a) and (b), Government Code,
are amended to read as follows:
(a) Except as provided by Subsection (b), a person is not
eligible for appointment or election to the board 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) uses or receives a substantial amount of tangible
goods, services, or funds from the retirement system, other than
compensation or reimbursement authorized by law for board
membership, attendance, or expenses.
(b) Subsection (a) does not apply to employment by,
participation in the management of, or ownership or control of an
interest in a business entity or other organization on behalf of the
retirement system. Subsection (a)(3) does not apply to a person who
is elected [nominated for appointment] under Section 825.002(c),
(d), or (e).
SECTION 5. Section 825.0041(b), Government Code, is amended
to read as follows:
(b) A training program established under this section shall
provide information to the member regarding:
(1) the enabling legislation that created the
retirement system and its policy-making body to which the member is
appointed or elected to serve;
(2) the programs operated by the system;
(3) the role and functions of the system;
(4) the rules of the system with an emphasis on the
rules that relate to disciplinary and investigatory authority;
(5) the current budget for the system;
(6) the results of the most recent formal audit of the
system;
(7) the requirements of the:
(A) open meetings law, Chapter 551;
(B) open records law, Chapter 552; and
(C) administrative procedure law, Chapter 2001;
(8) the requirements of the conflict of interest laws
and other laws relating to public officials; and
(9) any applicable ethics policies adopted by the
system or the Texas Ethics Commission.
SECTION 6. Section 825.009(a), Government Code, is amended
to read as follows:
(a) A trustee elected [appointed from a slate of members
nominated by members of the retirement system] under Section
825.002 is entitled to leave with pay from the trustee's public
school employer to attend to the official business of the
retirement system.
SECTION 7. Section 825.010(a), Government Code, is amended
to read as follows:
(a) It is a ground for removal from the board if a trustee:
(1) does not have at the time of appointment or
election the qualifications required for the trustee's position;
(2) does not maintain during service on the board the
qualifications required for the trustee's position;
(3) violates a prohibition established by Section
825.002(b) or 825.0032;
(4) cannot because of illness or disability discharge
the trustee's duties for a substantial part of the term for which
the trustee is appointed or elected; or
(5) is absent from more than one-third of the
regularly scheduled board meetings that the person is eligible to
attend during a calendar year unless the absence is excused by
majority vote of the board.
SECTION 8. Sections 825.002(f) and (g), Government Code,
are repealed.
SECTION 9. (a) Section 825.002, Government Code, as amended
by this Act, applies only to the appointment or election of a member
of the board of trustees of the Teacher Retirement System of Texas
that occurs on or after the effective date of this Act.
(b) The change in the manner of appointing or electing
members of the board does not affect the appointment of members
serving on the board before the effective date of this Act.
SECTION 10. 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.