| 1 | 1 | | 81R2504 JSA-D |
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| 2 | 2 | | By: Guillen, Anchia, Burnam, Parker, Edwards, H.B. No. 801 |
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| 3 | 3 | | et al. |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to prohibiting the investment of the permanent university |
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| 9 | 9 | | fund in certain business entities doing business in Sudan. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. The legislative findings set out in Section 1, |
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| 12 | 12 | | Chapter 1375 (S.B. No. 247), Acts of the 80th Legislature, Regular |
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| 13 | 13 | | Session, 2007, are hereby reaffirmed. Those findings apply to this |
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| 14 | 14 | | Act in the same manner as they apply to Chapter 1375 and the law |
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| 15 | 15 | | enacted by that chapter. |
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| 16 | 16 | | SECTION 2. Subchapter A, Chapter 66, Education Code, is |
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| 17 | 17 | | amended by adding Section 66.10 to read as follows: |
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| 18 | 18 | | Sec. 66.10. PROHIBITION ON INVESTMENT IN BUSINESS ENTITIES |
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| 19 | 19 | | DOING BUSINESS IN SUDAN. (a) In this section, "board" means the |
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| 20 | 20 | | board of regents of The University of Texas System. |
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| 21 | 21 | | (b) Except as otherwise provided by this section, Chapter |
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| 22 | 22 | | 806, Government Code, applies to the board and to any entity acting |
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| 23 | 23 | | on behalf of the board, including a nonprofit corporation acting |
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| 24 | 24 | | under Section 66.08, with regard to the investment of the permanent |
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| 25 | 25 | | university fund in the same manner as that chapter applies to a |
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| 26 | 26 | | state governmental entity with regard to investments made by the |
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| 27 | 27 | | state governmental entity. The definitions provided by Section |
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| 28 | 28 | | 806.001, Government Code, apply to this section. |
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| 29 | 29 | | (c) In a cause of action based on an action, inaction, |
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| 30 | 30 | | decision, divestment, investment, company communication, report, |
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| 31 | 31 | | or other determination made or taken in connection with this |
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| 32 | 32 | | section or Chapter 806, Government Code, the state shall, without |
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| 33 | 33 | | regard to whether the person performed services for compensation, |
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| 34 | 34 | | indemnify and hold harmless for actual damages, court costs, and |
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| 35 | 35 | | attorney's fees adjudged against, and defend: |
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| 36 | 36 | | (1) an employee or member of the board; |
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| 37 | 37 | | (2) an employee or officer of any entity acting on |
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| 38 | 38 | | behalf of the board, including a nonprofit corporation acting under |
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| 39 | 39 | | Section 66.08; |
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| 40 | 40 | | (3) a contractor of the board; |
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| 41 | 41 | | (4) a former board employee, a former board member, or |
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| 42 | 42 | | a former employee or officer of an entity described by Subdivision |
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| 43 | 43 | | (2) who was serving in that capacity when the act or omission on |
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| 44 | 44 | | which the damages are based occurred; and |
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| 45 | 45 | | (5) a former contractor of the board who was a |
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| 46 | 46 | | contractor when the act or omission on which the damages are based |
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| 47 | 47 | | occurred. |
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| 48 | 48 | | (d) A person may not sue or pursue a private cause of action |
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| 49 | 49 | | against the state, the board, an employee or member of the board, an |
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| 50 | 50 | | employee or officer of any entity acting on behalf of the board, |
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| 51 | 51 | | including a nonprofit corporation acting under Section 66.08, or a |
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| 52 | 52 | | contractor of the board for any claim or cause of action, including |
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| 53 | 53 | | breach of fiduciary duty, or for violation of any constitutional, |
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| 54 | 54 | | statutory, or regulatory requirement in connection with any action, |
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| 55 | 55 | | inaction, decision, divestment, investment, company communication, |
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| 56 | 56 | | report, or other determination made or taken in connection with |
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| 57 | 57 | | this section or Chapter 806, Government Code. A person who files |
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| 58 | 58 | | suit against the state, the board, an employee or member of the |
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| 59 | 59 | | board, an employee or officer of any entity acting on behalf of the |
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| 60 | 60 | | board, including a nonprofit corporation acting under Section |
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| 61 | 61 | | 66.08, or a contractor of the board is liable for paying the costs |
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| 62 | 62 | | and attorney's fees of a person sued in violation of this |
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| 63 | 63 | | subsection. |
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| 64 | 64 | | (e) The attorney general may bring any action to enforce |
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| 65 | 65 | | this section. |
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| 66 | 66 | | (f) This section expires on the date Chapter 806, Government |
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| 67 | 67 | | Code, expires. |
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| 68 | 68 | | (g) The comptroller shall provide the current list of |
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| 69 | 69 | | scrutinized companies required by Section 806.051, Government |
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| 70 | 70 | | Code, to the board as soon as practicable after September 1, 2009. |
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| 71 | 71 | | The board becomes subject to the duties imposed on a state |
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| 72 | 72 | | governmental entity by Chapter 806, Government Code, when the board |
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| 73 | 73 | | receives the initial list under this subsection. This subsection |
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| 74 | 74 | | expires January 1, 2010. |
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| 75 | 75 | | SECTION 3. This Act takes effect immediately if it receives |
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| 76 | 76 | | a vote of two-thirds of all the members elected to each house, as |
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| 77 | 77 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 78 | 78 | | Act does not receive the vote necessary for immediate effect, this |
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| 79 | 79 | | Act takes effect September 1, 2009. |
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