Texas 2019 - 86th Regular

Texas Senate Bill SB1133 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Bettencourt, et al. S.B. No. 1133
	2	+	(In the Senate - Filed February 26, 2019; March 7, 2019,
	3	+	read first time and referred to Committee on Education;
	4	+	April 29, 2019, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 9, Nays 0; April 29, 2019,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1133 By: Watson
2	9
3	10
4	11		A BILL TO BE ENTITLED
5	12		AN ACT
6	13		relating to prohibiting public schools from owning, leasing, or
7	14		having a business interest in certain entities and real property
8	15		associated with those entities.
9	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	17		SECTION 1. Subchapter E, Chapter 45, Education Code, is
11	18		amended by adding Section 45.116 to read as follows:
12	19		Sec. 45.116. OWNERSHIP OF OR BUSINESS INTEREST IN CERTAIN
13	20		ENTITIES AND PROPERTY PROHIBITED. (a) In this section:
14	21		(1) "Affiliate" has the meaning assigned by Section
15	22		1.002, Business Organizations Code.
16	23		(2) "Business interest" means owning or controlling,
17	24		directly or indirectly, more than a 10 percent interest in a
18	25		business entity.
19	26		(b) This section does not apply if the commissioner
20	27		determines that a business interest in an entity or the lease or
21	28		ownership of real property, directly or indirectly through an
22	29		affiliate, by a school district or open-enrollment charter school
23	30		is used primarily for classroom space or serves a public purpose.
24	31		(c) A school district or open-enrollment charter school may
25	32		not, directly or indirectly through an affiliate, including an
26	33		affiliated nonprofit corporation, have a business interest in an
27	34		entity or lease or own real property in this state associated with
28	35		an entity described by the North American Industry Classification
29	36		System (NAICS) in any of the following sector codes:
30	37		(1) Sector 53: Real Estate and Rental and Leasing;
31	38		(2) Sector 71: Arts, Entertainment, and Recreation;
32	39		or
33	40		(3) Sector 72: Accommodation and Food Services.
34	41		(d) This section does not prohibit or restrict a school
35	42		district or open-enrollment charter school from:
36	43		(1) leasing or otherwise providing real property or a
37	44		facility that the district or school owns or leases to an individual
38	45		or entity for use by that individual or entity if the district or
39	46		school is not prohibited from owning or leasing the real property or
40	47		facility; or
41	48		(2) entering into a lease or other financing
42	49		arrangement for district or school property provided by other law,
43	50		including with a public facility corporation created under Chapter
44	51		303, Local Government Code.
45	52		(e) The commissioner may adopt rules necessary to implement
46	53		this section.
47	54		SECTION 2. (a) The change in law made by this Act applies
48	55		only to real property leased or acquired by a school district or
49	56		open-enrollment charter school on or after the effective date of
50	57		this Act.
51	58		(b) The change in law made by this Act applies to a business
52	59		interest in an entity acquired by a school district or
53	60		open-enrollment charter school before, on, or after the effective
54	61		date of this Act. Except as provided by Subsection (c) of this
55	62		section, a school district or open-enrollment charter school
56	63		subject to Section 45.116, Education Code, as added by this Act,
57	64		shall divest all business interest in an entity described by that
58	65		section not later than September 1, 2024, unless the commissioner
59	66		determines that the business interest serves a public purpose in
60	67		accordance with Section 45.116(b), Education Code, as added by this
61	68		Act.
62	69		(c) A school district or open-enrollment charter school
63	70		subject to Section 45.116, Education Code, as added by this Act,
64	71		that owns a natatorium that is associated with an entity that the
65	72		district or school must divest under Subsection (b) of this section
66	73		may retain ownership of the natatorium and may provide for access
67	74		between the natatorium and the associated entity, so long as the
68	75		district or school divests the business interest in the associated
69	76		entity in accordance with Subsection (b) of this section.
70	77		SECTION 3. This Act takes effect September 1, 2019.
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