86R12697 TSR-F
By: Walle H.B. No. 3662
A BILL TO BE ENTITLED
AN ACT
relating to the composition 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 825.001, Government Code, is amended to
read as follows:
Sec. 825.001. COMPOSITION OF BOARD OF TRUSTEES. The board
of trustees is composed of 12 [nine] members.
SECTION 2. Section 825.002, Government Code, is amended by
amending Subsections (a), (b), (d), and (e) and adding Subsection
(e-2) to read as follows:
(a) The governor shall appoint, with the advice and consent
of the senate and as provided by this section, 10 [seven] members of
the board of trustees.
(b) The governor shall appoint four [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.
(d) Subject to Subsection (e-2), the [The] governor shall
appoint two members [one member] of the board from a slate of four
[three] former members of the retirement system who 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) Subject to Subsection (e-2), the [The] governor shall
appoint two members [one member] of the board from a slate of four
[three] persons who have been nominated in accordance with
Subsection (f) by the following groups collectively:
(1) members of the retirement system whose most recent
credited service was performed for an institution of higher
education;
(2) members of the retirement system whose most recent
credited service was performed for a public school district,
charter school, or regional education service center; and
(3) persons who have retired and are receiving
benefits from the retirement system.
(e-2) The governor shall ensure that at least one of the
members appointed under Subsection (d) or (e), as appropriate, is:
(1) a former member who retired from an institution of
higher education; or
(2) currently employed by an institution of higher
education.
SECTION 3. (a) As soon as practicable after the effective
date of this Act, the governor shall appoint an additional member to
the board of trustees of the Teacher Retirement System of Texas
under Section 825.002(b), Government Code, as amended by this Act.
(b) Notwithstanding the term of six years stipulated by
Section 825.004(a), Government Code, as soon as practicable after
the effective date of this Act, the Teacher Retirement System of
Texas shall prepare a slate of three nominees and the governor shall
appoint from that slate an additional member to the board of
trustees of the Teacher Retirement System of Texas under Section
825.002(d), Government Code, as amended by this Act, to serve a term
that expires on a date that preserves the required staggering of
terms. In making the appointment under this subsection, the
governor shall ensure that the composition of the board of trustees
complies with Section 825.002(e-2)(1), Government Code, as added by
this Act. Subsequent board of trustee members appointed to that
position shall serve the six-year term.
(c) Notwithstanding the term of six years stipulated by
Section 825.004(a), Government Code, as soon as practicable after
the effective date of this Act, the members of the Teacher
Retirement System of Texas who are described by Sections
825.002(e)(1)-(3), Government Code, as amended by this Act, shall
prepare a slate of three nominees and the governor shall appoint
from that slate an additional member to the board of trustees of the
Teacher Retirement System of Texas under Section 825.002(e),
Government Code, as amended by this Act, to serve a term that
expires on a date that preserves the required staggering of terms.
In making the appointment under this subsection, the governor shall
ensure that the composition of the board of trustees complies with
Section 825.002(e-2)(2), Government Code, as added by this Act.
Subsequent board of trustee members appointed to that position
shall serve the six-year term.
SECTION 4. 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, 2019.