TITLE: 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.

SUMMARY: 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.

FULL TEXT:
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. Section 66.08, Education Code, is amended by amending Subsections (d) and (e) and adding Subsection (e-1) 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 which [of the board of directors of the corporation. At least] three must be members of the board;(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 [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].(e-1) A vote of at least four-fifths of the members of the board of directors shall be required to: (1) hire or terminate the employment of the chief executive officer of the corporation; (2) approve the corporation's annual budget; (3) award executive compensation, including bonuses; (4) change the corporation's asset allocation; and (5) change the investment policies of the corporation. SECTION 2. (a) Not later than January 1, 2012, the board of regents of The Texas A&M University System shall appoint the required number of members of the board of directors of a corporation established under Section 66.08, Education Code, in accordance with the change in law made by this Act to Section 66.08(d). (b) Not later than January 1, 2012, the board of regents of The University of Texas System shall appoint the required number of members of the board of directors of a corporation established under Section 66.08, Education Code. For that purpose, the board of regents may reappoint a sitting member of the board of directors. (c) Until January 1, 2012, the composition of the board of directors of a corporation established under Section 66.08, Education Code, is as provided by the law in effect immediately before the effective date of this Act. SECTION 3. This Act takes effect September 1, 2011.