| 1 | 1 | | 81R2504 JSA-D |
|---|
| 2 | 2 | | By: Ellis S.B. No. 602 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to prohibiting the investment of the permanent university |
|---|
| 8 | 8 | | fund in certain business entities doing business in Sudan. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. The legislative findings set out in Section 1, |
|---|
| 11 | 11 | | Chapter 1375 (S.B. No. 247), Acts of the 80th Legislature, Regular |
|---|
| 12 | 12 | | Session, 2007, are hereby reaffirmed. Those findings apply to this |
|---|
| 13 | 13 | | Act in the same manner as they apply to Chapter 1375 and the law |
|---|
| 14 | 14 | | enacted by that chapter. |
|---|
| 15 | 15 | | SECTION 2. Subchapter A, Chapter 66, Education Code, is |
|---|
| 16 | 16 | | amended by adding Section 66.10 to read as follows: |
|---|
| 17 | 17 | | Sec. 66.10. PROHIBITION ON INVESTMENT IN BUSINESS ENTITIES |
|---|
| 18 | 18 | | DOING BUSINESS IN SUDAN. (a) In this section, "board" means the |
|---|
| 19 | 19 | | board of regents of The University of Texas System. |
|---|
| 20 | 20 | | (b) Except as otherwise provided by this section, Chapter |
|---|
| 21 | 21 | | 806, Government Code, applies to the board and to any entity acting |
|---|
| 22 | 22 | | on behalf of the board, including a nonprofit corporation acting |
|---|
| 23 | 23 | | under Section 66.08, with regard to the investment of the permanent |
|---|
| 24 | 24 | | university fund in the same manner as that chapter applies to a |
|---|
| 25 | 25 | | state governmental entity with regard to investments made by the |
|---|
| 26 | 26 | | state governmental entity. The definitions provided by Section |
|---|
| 27 | 27 | | 806.001, Government Code, apply to this section. |
|---|
| 28 | 28 | | (c) In a cause of action based on an action, inaction, |
|---|
| 29 | 29 | | decision, divestment, investment, company communication, report, |
|---|
| 30 | 30 | | or other determination made or taken in connection with this |
|---|
| 31 | 31 | | section or Chapter 806, Government Code, the state shall, without |
|---|
| 32 | 32 | | regard to whether the person performed services for compensation, |
|---|
| 33 | 33 | | indemnify and hold harmless for actual damages, court costs, and |
|---|
| 34 | 34 | | attorney's fees adjudged against, and defend: |
|---|
| 35 | 35 | | (1) an employee or member of the board; |
|---|
| 36 | 36 | | (2) an employee or officer of any entity acting on |
|---|
| 37 | 37 | | behalf of the board, including a nonprofit corporation acting under |
|---|
| 38 | 38 | | Section 66.08; |
|---|
| 39 | 39 | | (3) a contractor of the board; |
|---|
| 40 | 40 | | (4) a former board employee, a former board member, or |
|---|
| 41 | 41 | | a former employee or officer of an entity described by Subdivision |
|---|
| 42 | 42 | | (2) who was serving in that capacity when the act or omission on |
|---|
| 43 | 43 | | which the damages are based occurred; and |
|---|
| 44 | 44 | | (5) a former contractor of the board who was a |
|---|
| 45 | 45 | | contractor when the act or omission on which the damages are based |
|---|
| 46 | 46 | | occurred. |
|---|
| 47 | 47 | | (d) A person may not sue or pursue a private cause of action |
|---|
| 48 | 48 | | against the state, the board, an employee or member of the board, an |
|---|
| 49 | 49 | | employee or officer of any entity acting on behalf of the board, |
|---|
| 50 | 50 | | including a nonprofit corporation acting under Section 66.08, or a |
|---|
| 51 | 51 | | contractor of the board for any claim or cause of action, including |
|---|
| 52 | 52 | | breach of fiduciary duty, or for violation of any constitutional, |
|---|
| 53 | 53 | | statutory, or regulatory requirement in connection with any action, |
|---|
| 54 | 54 | | inaction, decision, divestment, investment, company communication, |
|---|
| 55 | 55 | | report, or other determination made or taken in connection with |
|---|
| 56 | 56 | | this section or Chapter 806, Government Code. A person who files |
|---|
| 57 | 57 | | suit against the state, the board, an employee or member of the |
|---|
| 58 | 58 | | board, an employee or officer of any entity acting on behalf of the |
|---|
| 59 | 59 | | board, including a nonprofit corporation acting under Section |
|---|
| 60 | 60 | | 66.08, or a contractor of the board is liable for paying the costs |
|---|
| 61 | 61 | | and attorney's fees of a person sued in violation of this |
|---|
| 62 | 62 | | subsection. |
|---|
| 63 | 63 | | (e) The attorney general may bring any action to enforce |
|---|
| 64 | 64 | | this section. |
|---|
| 65 | 65 | | (f) This section expires on the date Chapter 806, Government |
|---|
| 66 | 66 | | Code, expires. |
|---|
| 67 | 67 | | (g) The comptroller shall provide the current list of |
|---|
| 68 | 68 | | scrutinized companies required by Section 806.051, Government |
|---|
| 69 | 69 | | Code, to the board as soon as practicable after September 1, 2009. |
|---|
| 70 | 70 | | The board becomes subject to the duties imposed on a state |
|---|
| 71 | 71 | | governmental entity by Chapter 806, Government Code, when the board |
|---|
| 72 | 72 | | receives the initial list under this subsection. This subsection |
|---|
| 73 | 73 | | expires January 1, 2010. |
|---|
| 74 | 74 | | SECTION 3. This Act takes effect immediately if it receives |
|---|
| 75 | 75 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 76 | 76 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 77 | 77 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 78 | 78 | | Act takes effect September 1, 2009. |
|---|