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.