The board of an institution may not enter into a contract with a person relating to a permanent improvement project at the institution under which the institution makes contractual payments to the person that are not reflected on the institution's financial statement unless the board:

1. (1) is specifically authorized to enter into the contract by other law; or
2. (2) receives prior approval by the Texas Higher Education Coordinating Board.

Added by Acts 2007, 80th Leg., R.S., Ch. 759 (H.B. 3291), Sec. 1, eff. June 15, 2007.