By Stiles H.B. No. 1429
75R4002 JSA-F
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" has the meaning assigned by Section
3-1 572.054, Government Code.
3-2 (4) "Particular matter" has the meaning assigned by
3-3 Section 572.054, Government Code.
3-4 SECTION 2. This Act takes effect September 1, 1997.
3-5 SECTION 3. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.