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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting the investment of the permanent university |
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fund in certain business entities doing business in Sudan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The legislative findings set out in Section 1, |
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Chapter 1375 (S.B. No. 247), Acts of the 80th Legislature, Regular |
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Session, 2007, are hereby reaffirmed. Those findings apply to this |
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Act in the same manner as they apply to Chapter 1375 and the law |
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enacted by that chapter. |
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SECTION 2. Subchapter A, Chapter 66, Education Code, is |
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amended by adding Section 66.10 to read as follows: |
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Sec. 66.10. PROHIBITION ON INVESTMENT IN BUSINESS ENTITIES |
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DOING BUSINESS IN SUDAN. (a) In this section, "board" means the |
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board of regents of The University of Texas System. |
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(b) Except as otherwise provided by this section, Chapter |
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806, Government Code, applies to the board and to any entity acting |
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on behalf of the board, including a nonprofit corporation acting |
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under Section 66.08, with regard to the investment of the permanent |
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university fund in the same manner as that chapter applies to a |
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state governmental entity with regard to investments made by the |
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state governmental entity. The definitions provided by Section |
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806.001, Government Code, apply to this section. |
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(c) In a cause of action based on an action, inaction, |
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decision, divestment, investment, company communication, report, |
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or other determination made or taken in connection with this |
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section or Chapter 806, Government Code, the state shall, without |
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regard to whether the person performed services for compensation, |
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indemnify and hold harmless for actual damages, court costs, and |
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attorney's fees adjudged against, and defend: |
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(1) an employee or member of the board; |
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(2) an employee or officer of any entity acting on |
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behalf of the board, including a nonprofit corporation acting under |
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Section 66.08; |
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(3) a contractor of the board; |
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(4) a former board employee, a former board member, or |
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a former employee or officer of an entity described by Subdivision |
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(2) who was serving in that capacity when the act or omission on |
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which the damages are based occurred; and |
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(5) a former contractor of the board who was a |
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contractor when the act or omission on which the damages are based |
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occurred. |
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(d) A person may not sue or pursue a private cause of action |
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against the state, the board, an employee or member of the board, an |
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employee or officer of any entity acting on behalf of the board, |
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including a nonprofit corporation acting under Section 66.08, or a |
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contractor of the board for any claim or cause of action, including |
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breach of fiduciary duty, or for violation of any constitutional, |
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statutory, or regulatory requirement in connection with any action, |
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inaction, decision, divestment, investment, company communication, |
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report, or other determination made or taken in connection with |
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this section or Chapter 806, Government Code. A person who files |
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suit against the state, the board, an employee or member of the |
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board, an employee or officer of any entity acting on behalf of the |
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board, including a nonprofit corporation acting under Section |
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66.08, or a contractor of the board is liable for paying the costs |
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and attorney's fees of a person sued in violation of this |
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subsection. |
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(e) The attorney general may bring any action to enforce |
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this section. |
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(f) This section expires on the date Chapter 806, Government |
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Code, expires. |
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(g) The comptroller shall provide the current list of |
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scrutinized companies required by Section 806.051, Government |
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Code, to the board as soon as practicable after September 1, 2009. |
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The board becomes subject to the duties imposed on a state |
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governmental entity by Chapter 806, Government Code, when the board |
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receives the initial list under this subsection. This subsection |
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expires January 1, 2010. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |