SRC-CTC S.B. 1545 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1545
By: Duncan
Education
4/11/2001
As Filed


DIGEST AND PURPOSE 

In 1999, the 76th Legislature passed a constitutional amendment which was
subsequently approved by the voters providing that the Available University
Fund consists of distributions from the total return on all investments of
the Permanent University Fund.  Current state law prohibits public
institutions of higher education from appropriating for expenditure the net
unrealized appreciation of the assets of the endowment fund.  As proposed,
S.B. 1545 amends the Education Code and the Property Code to conform with
the provisions of the constitutional amendment relating to the composition
of the Available University Fund. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 51.0031(d), Education Code, to redefine "prudent
person standard." 

SECTION 2.  Amends Section 163.004(a), Property Code, to make a conforming
change. 

SECTION 3.  Repealer: Section 163.004(e), Property Code.

SECTION 4.  Effective date: upon passage or August 27, 2001.