By:  Madla                                             S.B. No. 142
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to authorizing public junior colleges to establish an
    1-2  endowment fund.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter A, Chapter 130, Education Code, is
    1-5  amended by adding Section 130.007 to read as follows:
    1-6        Sec. 130.007.  ENDOWMENT FEES AND ENDOWMENT FUND.  (a)  The
    1-7  board of trustees of a public junior college may establish an
    1-8  endowment fund outside the state treasury in a depository selected
    1-9  by the board of trustees.
   1-10        (b)  The board of trustees may accept gifts and grants from
   1-11  any public or private source for the fund.
   1-12        (c)  The endowment fund consists of gifts, grants, and income
   1-13  from investing the fund.
   1-14        (d)  The board of trustees may invest the endowment fund in
   1-15  securities, bonds, and other investments that the board considers
   1-16  prudent.  In making investments under this section, the board shall
   1-17  exercise the judgment and care under the circumstances then
   1-18  prevailing that a person of ordinary prudence, discretion, and
   1-19  intelligence exercises in the management of the person's own
   1-20  affairs.
   1-21        (e)  The board may not spend any money deposited in the fund
   1-22  as gifts or grants but may spend any income from investing the
   1-23  fund.
   1-24        SECTION 2.  Section 130.007, Education Code, as added by this
    2-1  Act, applies beginning with the fall semester 1993.
    2-2        SECTION 3.  The importance of this legislation and the
    2-3  crowded condition of the calendars in both houses create an
    2-4  emergency and an imperative public necessity that the
    2-5  constitutional rule requiring bills to be read on three several
    2-6  days in each house be suspended, and this rule is hereby suspended,
    2-7  and that this Act take effect and be in force from and after its
    2-8  passage, and it is so enacted.