Texas 2017 - 85th Regular

Texas House Bill HB313 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Johnson of Harris H.B. No. 313
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the higher education fund, the management of
7	7	investments of the permanent university fund, and the allocation
8	8	and distribution of certain constitutional revenues to the
9	9	University of Houston.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 62.021, Education Code, is amended by
12	12	adding Subsection (g) to read as follows:
13	13	(g) Notwithstanding Subsection (a), the allocation made by
14	14	that subsection to the University of Houston is void, and any amount
15	15	allocated by that subsection to the University of Houston for a
16	16	state fiscal year after the state fiscal year ending August 31,
17	17	2015, is reallocated to the other eligible institutions listed in
18	18	Subsection (a) in that fiscal year in the manner provided by Section
19	19	17A, Article VII, Texas Constitution.
20	20	SECTION 2. The heading to Section 62.147, Education Code,
21	21	is amended to read as follows:
22	22	Sec. 62.147. INELIGIBILITY OF CERTAIN INSTITUTIONS
23	23	RECEIVING PERMANENT UNIVERSITY FUND SUPPORT AND MAINTENANCE.
24	24	SECTION 3. Sections 66.08(d) and (f), Education Code, are
25	25	amended to read as follows:
26	26	(d) The board of directors of the corporation shall have 11
27	27	[nine] members, determined as follows:
28	28	(1) seven members appointed by the board, of whom:
29	29	(A) three must be members of the board;
30	30	(B) three must have a substantial background and
31	31	expertise in investments; and
32	32	(C) one must be a qualified individual as
33	33	determined by the board, which may include the chancellor of The
34	34	University of Texas System; [and]
35	35	(2) two members appointed by the board of regents of
36	36	The Texas A&M University System, at least one of whom must have a
37	37	substantial background and expertise in investments; and
38	38	(3) two members appointed by the president of the
39	39	University of Houston, at least one of whom must have a substantial
40	40	background and expertise in investments.
41	41	(f) If an investment contract entered into under Subsection
42	42	(b) includes the permanent university fund within the scope of
43	43	funds under the control and management of the board to be invested
44	44	by the corporation, the board shall provide for an annual financial
45	45	audit of the permanent university fund. The audit shall be
46	46	performed by the auditors of The University of Texas System, [and]
47	47	The Texas A&M University System, and the University of Houston
48	48	System and presented to the board.
49	49	SECTION 4. As soon as practicable following the effective
50	50	date of this Act, The University of Texas Investment Management
51	51	Company shall amend its bylaws to allow the president of the
52	52	University of Houston to appoint two directors to the company's
53	53	board of directors as required by Section 66.08(d), Education Code,
54	54	as amended by this Act.
55	55	SECTION 5. This Act takes effect September 1, 2018, but only
56	56	if the constitutional amendment proposed by the 85th Legislature,
57	57	Regular Session, 2017, entitling the University of Houston to
58	58	participate in the income and other benefits of the permanent
59	59	university fund, takes effect. If that amendment is not approved by
60	60	the voters, this Act has no effect.