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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting public schools from owning or having a |
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business interest in certain entities and real property associated |
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with those entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 45, Education Code, is |
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amended by adding Section 45.116 to read as follows: |
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Sec. 45.116. OWNERSHIP OF OR BUSINESS INTEREST IN CERTAIN |
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ENTITIES AND PROPERTY PROHIBITED. (a) In this section: |
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(1) "Affiliate" has the meaning assigned by Section |
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1.002, Business Organizations Code. |
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(2) "Business interest" means owning or controlling, |
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directly or indirectly, more than a 10 percent interest in a |
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business entity. |
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(b) A school district or open-enrollment charter school may |
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not, directly or indirectly through an affiliate, including an |
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affiliated nonprofit corporation, have a business interest in an |
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entity or own real property associated with an entity described by |
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the North American Industry Classification System (NAICS) in any of |
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the following sector codes: |
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(1) Sector 53: Real Estate and Rental and Leasing; |
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(2) Sector 71: Arts, Entertainment, and Recreation; or |
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(3) Sector 72: Accommodation and Food Services. |
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SECTION 2. The change in law made by this Act applies to an |
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ownership or business interest in an entity or real property |
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acquired by a school district or open-enrollment charter school |
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before, on, or after the effective date of this Act. A school |
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district or open-enrollment charter school subject to Section |
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45.116, Education Code, as added by this Act, shall divest all |
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ownership of, or business interest in, an entity or real property |
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associated with an entity described by that section not later than |
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September 1, 2024. |
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SECTION 3. This Act takes effect September 1, 2019. |