Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By: Sibley S.B. No. 616
A BILL TO BE ENTITLED
AN ACT
1-1 relating to standards of conduct for former directors, officers and
1-2 employees of a nonprofit corporation under contract to invest the
1-3 permanent university fund and the imposition of criminal penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 66.08, Education Code, is amended by
1-6 amending Subsections (i) and (l) and adding Subsections (m), (n),
1-7 and (o) to read as follows:
1-8 (i) The corporation may not enter into an agreement or
1-9 transaction with a:
1-10 (1) director, officer, or employee of the corporation
1-11 acting in other than an official capacity on behalf of the
1-12 corporation; or
1-13 (2) business entity in which a director, officer, or
1-14 employee of the corporation has an interest[;].
1-15 [(3) former director, officer, or employee of the
1-16 corporation on or before the second anniversary of the date the
1-17 person ceased to be a director, officer, or employee of the
1-18 corporation; or]
1-19 [(4) business entity in which a former director,
1-20 officer, or employee of the corporation has an interest on or
1-21 before the second anniversary of the date the person ceased to be a
1-22 director, officer, or employee of the corporation.]
1-23 (j) An agreement or transaction entered into in violation of
2-1 Subsection (i) is void.
2-2 (k) For purposes of this section, a person has an interest
2-3 in a business entity if:
2-4 (1) the person owns five percent or more of the voting
2-5 stock or shares of the business entity;
2-6 (2) the person owns five percent or more of the fair
2-7 market value of the business entity; or
2-8 (3) money received by the person from the business
2-9 entity exceeds five percent of the person's gross income for the
2-10 preceding calendar year.
2-11 (l) A former director of the corporation may not make any
2-12 communication to or appearance before a director, officer, or
2-13 employee of the corporation before the second anniversary of the
2-14 date the individual ceased to be a director of the corporation if
2-15 the communication or appearance is made:
2-16 (1) with the intent to influence; and
2-17 (2) on behalf of any person in connection with any
2-18 matter on which the person seeks action by the corporation.
2-19 (m) A former officer or employee of the corporation may not
2-20 represent any person or receive compensation for services rendered
2-21 on behalf of any person regarding a particular matter in which the
2-22 former officer or employee participated during the period of
2-23 service or employment, either through personal involvement or
2-24 because the particular matter was within the officer's or
2-25 employee's responsibility. In this subsection, "participated" and
3-1 "particular matter" have the meanings assigned by Section 572.054,
3-2 Government Code.
3-3 (n) An individual commits an offense if the individual
3-4 violates Subsection (l) or (m) of this section. An offense under
3-5 this subsection is a Class A misdemeanor.
3-6 [(l)] (o) In this section:
3-7 (1) "Board" means the board of regents of The
3-8 University of Texas System.
3-9 (2) "Governing board," "institutional fund," and
3-10 "institution of higher education" have the meanings assigned by
3-11 Chapter 163, Property Code.
3-12 SECTION 2. Emergency. The importance of this legislation
3-13 and the crowded condition of the calendars in both houses create an
3-14 emergency and an imperative public necessity that the
3-15 constitutional rule requiring bills to be read on three several
3-16 days in each house be suspended, and this rule is hereby suspended,
3-17 and that this Act take effect and be in force from and after its
3-18 passage, and it is so enacted.