S.B. No. 142
                                        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 FUND.  (a)  The board of trustees of
    1-7  a public junior college may establish an endowment fund outside the
    1-8  state treasury in a depository selected by the board of trustees.
    1-9        (b)  The board of trustees may deposit local funds collected
   1-10  by the board to the credit of the endowment fund.
   1-11        (c)  The board of trustees may accept gifts and grants from
   1-12  any public or private source for the endowment fund.
   1-13        (d)  The endowment fund consists of local funds deposited to
   1-14  the credit of the endowment fund, gifts, grants, and income from
   1-15  investing the endowment fund.
   1-16        (e)  The board of trustees may invest the endowment fund in
   1-17  securities, bonds, and other investments that the board considers
   1-18  prudent.  In making investments under this section, the board shall
   1-19  exercise the judgment and care under the circumstances then
   1-20  prevailing that a person of ordinary prudence, discretion, and
   1-21  intelligence exercises in the management of the person's own
   1-22  affairs.
   1-23        (f)  The board may not spend any money deposited in the
   1-24  endowment fund as local funds, gifts, or grants but may spend any
    2-1  income from investing the endowment fund for the operation or
    2-2  maintenance of the junior college.
    2-3        SECTION 2.  The importance of this legislation and the
    2-4  crowded condition of the calendars in both houses create an
    2-5  emergency and an imperative public necessity that the
    2-6  constitutional rule requiring bills to be read on three several
    2-7  days in each house be suspended, and this rule is hereby suspended,
    2-8  and that this Act take effect and be in force from and after its
    2-9  passage, and it is so enacted.