Texas Education Code - Section 51.923. Qualifications Of Certain Business Entities To Enter Into Contracts With An Institution Of Higher Education
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§ 51.923. QUALIFICATIONS OF CERTAIN BUSINESS ENTITIES TO
ENTER INTO CONTRACTS WITH AN INSTITUTION OF HIGHER EDUCATION. (a)
In this section:
(1) "Corporation" means a corporation for profit
organized under the laws of this state or under laws other than the
laws of this state.
(2) "Governing board" has the meaning assigned by
Section 61.003 of this code.
(3) "Institution of higher education" has the meaning
assigned by Section 61.003 of this code.
(4) "Nonprofit corporation" means any organization
exempt from federal income tax under Section 501 of the Internal
Revenue Code of 1986 that does not distribute any part of its
income to any member, director, or officer.
(b) A nonprofit corporation is not disqualified from
entering into a contract or other transaction with an institution
of higher education even though one or more members of the governing
board of the institution of higher education also serves as a member
or director of the nonprofit corporation.
(c) A corporation is not disqualified from entering into a
contract or other transaction with an institution of higher
education even though one or more members of the governing board of
the institution of higher education also serves as a stockholder or
director of the corporation provided that no member of the
governing board owns or has a beneficial interest in more than five
percent of the corporation's outstanding capital stock and further
provided that the contract or transaction is:
(1) an affiliation, licensing, or sponsored research
agreement; or
(2) awarded by competitive bidding or competitive
sealed proposals.
(d) An institution of higher education is not prohibited
from entering into a contract or other transaction described in
this section if any board member having an interest described in
this section in the contract or transaction discloses that interest
in a meeting held in compliance with Chapter 551, Government Code,
and refrains from voting on the contract or transaction. Any such
contract or transaction requiring board approval must be approved
by an affirmative majority of the board members voting on the
contract or transaction.
Added by Acts 1989, 71st Leg., ch. 647, § 1, eff. June 14, 1989.
Renumbered from § 51.921 by Acts 1991, 72nd Leg., ch. 16, §
19.01(23), eff. Aug. 26, 1991. Amended by Acts 1995, 74th Leg., ch.
76, § 5.95(91), eff. Sept. 1, 1995.
Section: 51.917 51.918 51.919 51.9191 51.920 51.921 51.922 51.923 51.924 51.9241 51.9242 51.9245 51.925 51.926 51.927
Last modified: August 10, 2007
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