81R2504 JSA-D
 
  By: Ellis S.B. No. 602
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to prohibiting the investment of the permanent university
  fund in certain business entities doing business in Sudan.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The legislative findings set out in Section 1,
  Chapter 1375 (S.B. No. 247), Acts of the 80th Legislature, Regular
  Session, 2007, are hereby reaffirmed. Those findings apply to this
  Act in the same manner as they apply to Chapter 1375 and the law
  enacted by that chapter.
         SECTION 2.  Subchapter A, Chapter 66, Education Code, is
  amended by adding Section 66.10 to read as follows:
         Sec. 66.10.  PROHIBITION ON INVESTMENT IN BUSINESS ENTITIES
  DOING BUSINESS IN SUDAN. (a) In this section, "board" means the
  board of regents of The University of Texas System.
         (b)  Except as otherwise provided by this section, Chapter
  806, Government Code, applies to the board and to any entity acting
  on behalf of the board, including a nonprofit corporation acting
  under Section 66.08, with regard to the investment of the permanent
  university fund in the same manner as that chapter applies to a
  state governmental entity with regard to investments made by the
  state governmental entity. The definitions provided by Section
  806.001, Government Code, apply to this section.
         (c)  In a cause of action based on an action, inaction,
  decision, divestment, investment, company communication, report,
  or other determination made or taken in connection with this
  section or Chapter 806, Government Code, the state shall, without
  regard to whether the person performed services for compensation,
  indemnify and hold harmless for actual damages, court costs, and
  attorney's fees adjudged against, and defend:
               (1)  an employee or member of the board;
               (2)  an employee or officer of any entity acting on
  behalf of the board, including a nonprofit corporation acting under
  Section 66.08;
               (3)  a contractor of the board;
               (4)  a former board employee, a former board member, or
  a former employee or officer of an entity described by Subdivision
  (2) who was serving in that capacity when the act or omission on
  which the damages are based occurred; and
               (5)  a former contractor of the board who was a
  contractor when the act or omission on which the damages are based
  occurred.
         (d)  A person may not sue or pursue a private cause of action
  against the state, the board, an employee or member of the board, an
  employee or officer of any entity acting on behalf of the board,
  including a nonprofit corporation acting under Section 66.08, or a
  contractor of the board for any claim or cause of action, including
  breach of fiduciary duty, or for violation of any constitutional,
  statutory, or regulatory requirement in connection with any action,
  inaction, decision, divestment, investment, company communication,
  report, or other determination made or taken in connection with
  this section or Chapter 806, Government Code. A person who files
  suit against the state, the board, an employee or member of the
  board, an employee or officer of any entity acting on behalf of the
  board, including a nonprofit corporation acting under Section
  66.08, or a contractor of the board is liable for paying the costs
  and attorney's fees of a person sued in violation of this
  subsection.
         (e)  The attorney general may bring any action to enforce
  this section.
         (f)  This section expires on the date Chapter 806, Government
  Code, expires.
         (g)  The comptroller shall provide the current list of
  scrutinized companies required by Section 806.051, Government
  Code, to the board as soon as practicable after September 1, 2009.
  The board becomes subject to the duties imposed on a state
  governmental entity by Chapter 806, Government Code, when the board
  receives the initial list under this subsection. This subsection
  expires January 1, 2010.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.