73R10990 SOS-F
          By Madla                                               S.B. No. 142
          Substitute the following for S.B. No. 142:
          By Rangel                                          C.S.S.B. No. 142
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to authorizing public junior colleges to establish an
    1-3  endowment fund.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter A, Chapter 130, Education Code, is
    1-6  amended by adding Section 130.007 to read as follows:
    1-7        Sec. 130.007.  ENDOWMENT FUND.  (a)  The board of trustees of
    1-8  a public junior college may establish an endowment fund outside the
    1-9  state treasury in a depository selected by the board of trustees.
   1-10        (b)  The board of trustees may deposit local funds collected
   1-11  by the board to the credit of the endowment fund.
   1-12        (c)  The board of trustees may accept gifts and grants from
   1-13  any public or private source for the endowment fund.
   1-14        (d)  The endowment fund consists of local funds deposited to
   1-15  the credit of the endowment fund, gifts, grants, and income from
   1-16  investing the endowment fund.
   1-17        (e)  The board of trustees may invest the endowment fund in
   1-18  securities, bonds, and other investments that the board considers
   1-19  prudent.  In making investments under this section, the board shall
   1-20  exercise the judgment and care under the circumstances then
   1-21  prevailing that a person of ordinary prudence, discretion, and
   1-22  intelligence exercises in the management of the person's own
   1-23  affairs.
   1-24        (f)  The board may not spend any money deposited in the
    2-1  endowment fund as local funds, gifts, or grants but may spend any
    2-2  income from investing the endowment fund for the operation or
    2-3  maintenance of the junior college.
    2-4        SECTION 2.  The importance of this legislation and the
    2-5  crowded condition of the calendars in both houses create an
    2-6  emergency and an imperative public necessity that the
    2-7  constitutional rule requiring bills to be read on three several
    2-8  days in each house be suspended, and this rule is hereby suspended,
    2-9  and that this Act take effect and be in force from and after its
   2-10  passage, and it is so enacted.