S.B. No. 709
  4-1                          COMMITTEE AMENDMENT NO. 1
  4-2           Amend S.B. 709 by adding the following Section _____ and
  4-3     renumbering other sections accordingly:
  4-4           SECTION ____.  Section 51.0031, Education Code, is amended to
  4-5     read as follows:
  4-6           Section 51.0031.  DEPOSITS AND INVESTMENTS.  (a)  A governing
  4-7     board may deposit funds under its control as provided in Section
  4-8     51.003 of this code, may invest funds under its control in
  4-9     financial instruments eligible for investment of funds in the state
 4-10     treasury and, with regard to donations, gifts, and trusts, may
 4-11     establish endowment funds that operate as trusts and are managed
 4-12     under prudent person standards.
 4-13           (b)  Funds described in this section may also be invested in
 4-14     cash management and fixed income funds held by organizations exempt
 4-15     from federal taxation under Section 501(f) of the Internal Revenue
 4-16     Code, as that section may be amended.
 4-17           (c)  If a governing board has under its control at least $25
 4-18     million in book value of endowment funds, such governing board may
 4-19     invest all funds described in this section under prudent person
 4-20     standards.
 4-21           (d)  As used in this section, "prudent person standard" is
 4-22     the standard of care described in Article VII, Section 11b, Texas
 4-23     Constitution and means that standard of judgement and care that
 4-24     persons or ordinary prudence, discretion and intelligence exercise
 4-25     in the management of their affairs in regard to the investments of
 4-26     their funds considering probable income as well as probable safety
 4-27     of their capital.
  5-1                                                        Hunter of Taylor
  5-2                          COMMITTEE AMENDMENT NO. 2
  5-3           Amend SB 709, SECTION 3, Section 163.004(e) by adding the
  5-4     words "as defined by Section 61.003(8), Education Code" between the
  5-5     words "education" and "may".
  5-6                                                        Hunter of Taylor