By Stiles                                             H.B. No. 1429

         Substitute the following for H.B. No. 1429:

         By Telford                                        C.S.H.B. No. 1429

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the standards of conduct for former directors,

 1-3     officers, and employees of a nonprofit corporation under contract

 1-4     to invest the permanent university fund or certain other university

 1-5     funds and to the corporation's dealings with a former director,

 1-6     officer, or employee; providing a penalty.

 1-7           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-8           SECTION 1.  Section 66.08, Education Code, is amended by

 1-9     amending Subsection (i), adding new Subsections (l)-(n), and

1-10     redesignating existing Subsection (l) as Subsection (o) and

1-11     amending that subsection to read as follows:

1-12           (i)  The corporation may not enter into an agreement or

1-13     transaction with a:

1-14                 (1)  director, officer, or employee of the corporation

1-15     acting in other than an official capacity on behalf of the

1-16     corporation; or

1-17                 (2)  business entity in which a director, officer, or

1-18     employee of the corporation has an interest[;]

1-19                 [(3)  former director, officer, or employee of the

1-20     corporation on or before the second anniversary of the date the

1-21     person ceased to be a director, officer, or employee of the

1-22     corporation; or]

1-23                 [(4)  business entity in which a former director,

1-24     officer, or employee of the corporation has an interest on or

 2-1     before the second anniversary of the date the person ceased to be a

 2-2     director, officer, or employee of the corporation].

 2-3           (l)  A former director of the corporation may not make any

 2-4     communication to or appearance before a director, officer, or

 2-5     employee of the corporation before the second anniversary of the

 2-6     date an individual ceased to be a director of the corporation if

 2-7     the communication or appearance is made:

 2-8                 (1)  with the intent to influence; and

 2-9                 (2)  on behalf of any person in connection with any

2-10     matter on which the person seeks action by the corporation.

2-11           (m)  A former officer or employee of the corporation may not

2-12     represent any person or receive compensation for services rendered

2-13     on behalf of any person regarding a particular matter in which the

2-14     former officer or employee participated during the period of

2-15     service or employment with the corporation, either through personal

2-16     involvement or because the particular matter was within the

2-17     officer's or employee's responsibility.

2-18           (n)  An individual who violates Subsection (l) or (m) commits

2-19     an offense.  An offense under this subsection is a Class A

2-20     misdemeanor.

2-21           (o) [(l)]  In this section:

2-22                 (1)  "Board" means the board of regents of The

2-23     University of Texas System.

2-24                 (2)  "Governing board," "institutional fund," and

2-25     "institution of higher education" have the meanings assigned by

2-26     Chapter 163, Property Code.

2-27                 (3)  "Participated" means to have taken action as an

 3-1     officer or employee through decision, approval, disapproval,

 3-2     recommendation, giving advice, investigation, or similar action.

 3-3                 (4)  "Particular matter" means a specific

 3-4     investigation, application, request for a ruling or determination,

 3-5     rulemaking proceeding, contract, claim, charge, accusation, arrest,

 3-6     or judicial or other proceeding.

 3-7           SECTION 2.  The importance of this legislation and the

 3-8     crowded condition of the calendars in both houses create an

 3-9     emergency and an imperative public necessity that the

3-10     constitutional rule requiring bills to be read on three several

3-11     days in each house be suspended, and this rule is hereby suspended,

3-12     and that this Act take effect and be in force from and after its

3-13     passage, and it is so enacted.