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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the Board for Lease of University Lands |
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to delegate certain powers and duties of the board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 66, Education Code, is |
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amended by adding Subsections (c), (d), (e), (f), (g), (h), and (i) |
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to read as follows: |
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(c) The board may enter into a contract with a nonprofit |
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corporation for the corporation to invest funds under the control |
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and management of the board, including the permanent university |
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fund, as designated by the board. The corporation may not engage |
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in any business other than investing funds designated by the board |
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under the contract. |
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(d) The board must approve the: |
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(1) articles of incorporation and bylaws of the |
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corporation and any amendment to the articles of incorporation or |
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bylaws; |
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(2) investment policies of the corporation, including |
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changes to those policies; |
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(3) audit and ethics committee of the corporation; and |
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(4) code of ethics of the corporation. |
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(e) The corporation shall file quarterly reports with the |
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board concerning matters required by the board. |
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(f) The corporation: |
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(1) is subject to the Texas Non-Profit Corporation Act |
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(Articles 1396-1.01 et seq., Vernon's Texas Civil Statutes); and |
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(2) is subject to the provisions of Chapter 551, |
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Government Code, that apply to the board of regents of The |
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University of Texas System, except that the board of directors of |
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the corporation: |
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(A) may discuss an investment or potential |
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investment with one or more employees of the corporation or with a |
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third party to the extent permitted to the board of trustees of the |
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Texas growth fund under Section 551.075, Government Code; and |
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(B) is not subject to Section 551.121 or Section |
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551.125, Government Code, rather any director of the corporation |
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may attend any meeting of the board of directors by telephone |
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conference call provided that the telephone conference is audible |
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to the public at the meeting location specified in the notice of |
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the meeting during each part of the meeting that is required to be |
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open to the public. |
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(g) The corporation may not enter into an agreement or |
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transaction with a: |
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(1) director, officer, or employee of the corporation |
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acting in other than an official capacity on behalf of the |
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corporation; or |
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(2) business entity in which a director, officer, or |
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employee of the corporation has an interest. |
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(h) An agreement or transaction entered into in violation of |
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Subsection (g) is void. |
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(i) For purposes of this section, a person has an interest |
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in a business entity if: |
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(1) the person owns five percent or more of the voting |
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stock or shares of the business entity; |
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(2) the person owns five percent or more of the fair |
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market value of the business entity; or |
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(3) money received by the person from the business |
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entity exceeds five percent of the person's gross income for the |
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preceding calendar year. |
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SECTION 2. 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, 2013. |