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  H.B. No. 2825
 
 
 
 
AN ACT
  relating to the composition and appointment of the board of
  directors of a corporation to which the board of regents of The
  University of Texas System delegates investment authority for the
  permanent university fund or other funds under the control of the
  board of regents.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 66.08(d) and (e), Education Code, are
  amended to read as follows:
         (d)  The board of directors of the corporation shall have
  nine members, determined as follows:
               (1)  six[.  The board shall appoint and remove all]
  members appointed by the board, of whom [of the board of directors
  of the corporation.   At least] three must be members of the board
  and the other three must have a substantial background and
  expertise in investments;
               (2)  [and] the chancellor of The University of Texas
  System; and
               (3)  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 [shall be
  appointed as directors].
         (e)  Each appointed member of the board of directors of the
  corporation is subject to removal and replacement by and at the
  pleasure of the appointing entity [The board shall select one or
  more of the members of the board of directors of the corporation
  from a list of candidates with substantial background and expertise
  in investments that is submitted to the board by the board of
  regents of The Texas A&M University System].
         SECTION 2.  (a) This section applies to the corporation
  described by Section 66.08, Education Code, and governs the
  implementation of the changes in law made by this Act to the board
  of directors of the corporation.
         (b)  This Act does not affect the terms of office of members
  of the corporation's board of directors who are serving on the
  effective date of this Act.
         (c)  The board of regents of The Texas A&M University System
  shall appoint two directors as required by Section 66.08(d)(3),
  Education Code, as added by this Act, as follows:
               (1)  one director on the expiration of the term of
  office of a director serving on the effective date of this Act who,
  under prior law, was appointed to that position on recommendation
  of that board of regents; and
               (2)  one director on the first expiration after the
  effective date of this Act of a term of office of any director,
  other than:
                     (A)  the director described by Subdivision (1) of
  this subsection; and
                     (B)  any director who also serves as a member of
  the board of regents of a university system, as defined by Section
  61.003, Education Code.
         (d)  As soon as practicable after the effective date of this
  Act, the board of directors of the corporation and the board of
  regents of The University of Texas System shall amend the bylaws of
  the corporation as necessary to give effect to the requirements of
  this Act.
         SECTION 3.  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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2825 was passed by the House on May
  10, 2011, by the following vote:  Yeas 145, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2825 was passed by the Senate on May
  20, 2011, by the following vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor