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