By: Johnson of Harris H.B. No. 313
A BILL TO BE ENTITLED
AN ACT
relating to the higher education fund, the management of
investments of the permanent university fund, and the allocation
and distribution of certain constitutional revenues to the
University of Houston.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 62.021, Education Code, is amended by
adding Subsection (g) to read as follows:
(g) Notwithstanding Subsection (a), the allocation made by
that subsection to the University of Houston is void, and any amount
allocated by that subsection to the University of Houston for a
state fiscal year after the state fiscal year ending August 31,
2015, is reallocated to the other eligible institutions listed in
Subsection (a) in that fiscal year in the manner provided by Section
17A, Article VII, Texas Constitution.
SECTION 2. The heading to Section 62.147, Education Code,
is amended to read as follows:
Sec. 62.147. INELIGIBILITY OF CERTAIN INSTITUTIONS
RECEIVING PERMANENT UNIVERSITY FUND SUPPORT AND MAINTENANCE.
SECTION 3. Sections 66.08(d) and (f), Education Code, are
amended to read as follows:
(d) The board of directors of the corporation shall have 11
[nine] members, determined as follows:
(1) seven members appointed by the board, of whom:
(A) three must be members of the board;
(B) three must have a substantial background and
expertise in investments; and
(C) one must be a qualified individual as
determined by the board, which may include the chancellor of The
University of Texas System; [and]
(2) 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; and
(3) two members appointed by the president of the
University of Houston, at least one of whom must have a substantial
background and expertise in investments.
(f) If an investment contract entered into under Subsection
(b) includes the permanent university fund within the scope of
funds under the control and management of the board to be invested
by the corporation, the board shall provide for an annual financial
audit of the permanent university fund. The audit shall be
performed by the auditors of The University of Texas System, [and]
The Texas A&M University System, and the University of Houston
System and presented to the board.
SECTION 4. As soon as practicable following the effective
date of this Act, The University of Texas Investment Management
Company shall amend its bylaws to allow the president of the
University of Houston to appoint two directors to the company's
board of directors as required by Section 66.08(d), Education Code,
as amended by this Act.
SECTION 5. This Act takes effect September 1, 2018, but only
if the constitutional amendment proposed by the 85th Legislature,
Regular Session, 2017, entitling the University of Houston to
participate in the income and other benefits of the permanent
university fund, takes effect. If that amendment is not approved by
the voters, this Act has no effect.