81R2504 JSA-D
By: Ellis S.B. No. 602
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting the investment of the permanent university
fund in certain business entities doing business in Sudan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislative findings set out in Section 1,
Chapter 1375 (S.B. No. 247), Acts of the 80th Legislature, Regular
Session, 2007, are hereby reaffirmed. Those findings apply to this
Act in the same manner as they apply to Chapter 1375 and the law
enacted by that chapter.
SECTION 2. Subchapter A, Chapter 66, Education Code, is
amended by adding Section 66.10 to read as follows:
Sec. 66.10. PROHIBITION ON INVESTMENT IN BUSINESS ENTITIES
DOING BUSINESS IN SUDAN. (a) In this section, "board" means the
board of regents of The University of Texas System.
(b) Except as otherwise provided by this section, Chapter
806, Government Code, applies to the board and to any entity acting
on behalf of the board, including a nonprofit corporation acting
under Section 66.08, with regard to the investment of the permanent
university fund in the same manner as that chapter applies to a
state governmental entity with regard to investments made by the
state governmental entity. The definitions provided by Section
806.001, Government Code, apply to this section.
(c) In a cause of action based on an action, inaction,
decision, divestment, investment, company communication, report,
or other determination made or taken in connection with this
section or Chapter 806, Government Code, the state shall, without
regard to whether the person performed services for compensation,
indemnify and hold harmless for actual damages, court costs, and
attorney's fees adjudged against, and defend:
(1) an employee or member of the board;
(2) an employee or officer of any entity acting on
behalf of the board, including a nonprofit corporation acting under
Section 66.08;
(3) a contractor of the board;
(4) a former board employee, a former board member, or
a former employee or officer of an entity described by Subdivision
(2) who was serving in that capacity when the act or omission on
which the damages are based occurred; and
(5) a former contractor of the board who was a
contractor when the act or omission on which the damages are based
occurred.
(d) A person may not sue or pursue a private cause of action
against the state, the board, an employee or member of the board, an
employee or officer of any entity acting on behalf of the board,
including a nonprofit corporation acting under Section 66.08, or a
contractor of the board for any claim or cause of action, including
breach of fiduciary duty, or for violation of any constitutional,
statutory, or regulatory requirement in connection with any action,
inaction, decision, divestment, investment, company communication,
report, or other determination made or taken in connection with
this section or Chapter 806, Government Code. A person who files
suit against the state, the board, an employee or member of the
board, an employee or officer of any entity acting on behalf of the
board, including a nonprofit corporation acting under Section
66.08, or a contractor of the board is liable for paying the costs
and attorney's fees of a person sued in violation of this
subsection.
(e) The attorney general may bring any action to enforce
this section.
(f) This section expires on the date Chapter 806, Government
Code, expires.
(g) The comptroller shall provide the current list of
scrutinized companies required by Section 806.051, Government
Code, to the board as soon as practicable after September 1, 2009.
The board becomes subject to the duties imposed on a state
governmental entity by Chapter 806, Government Code, when the board
receives the initial list under this subsection. This subsection
expires January 1, 2010.
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, 2009.