LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 9, 1995



 TO:     Honorable John T. Montford, Chair      IN RE:  Senate BillNo. 1577
         Committee on Finance                           By: Montford
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1577 (Relating to the authority of the board of regents of The
University of Texas System to delegate certain powers and duties
of the board.) this office has determined the following:

The bill would extend the Uniform Management of Institutional
Funds Act to cover the board of regents of the University of
Texas System and authorize the board to contract with a non-
profit corporation for investment of funds under control and
management of the board.

The board's ability to successfully manage risk and to generate
greater returns could be enhanced by the authority to delegate to
a non-profit corporation as established by the bill.  Delegation
of investment authority to a non-profit corporation could result
in quicker response time relative to market changes and increased
revenue for the UT system.  The amount of additional revenue
which could be generated cannot be determined.


No fiscal implication to units of local government is
anticipated.

The fiscal implication to  the State cannot be determined.


Source:   The University of Texas System, Higher Education
Coordinating Board,
                         Comptroller of Public Accounts
          LBB Staff: JK, LS, DF