By Duncan S.B. No. 1545
Substitute the following for S.B. No. 1545:
By George C.S.S.B. No. 1545
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the investment of the assets of certain funds of
1-3 certain institutions of higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 51.0031(a), (c), and (d), Education Code,
1-6 are amended to read as follows:
1-7 (a) A governing board may deposit funds under its control as
1-8 provided in Section 51.003 [of this code], may invest funds under
1-9 its control in accordance with Chapter 2256, Government Code and,
1-10 with regard to donations, gifts, and trusts, may establish
1-11 endowment funds that operate as trusts and are managed under
1-12 prudent investor [person] standards.
1-13 (c) If a governing board has under its control at least $25
1-14 million in book value of endowment funds, such governing board may
1-15 invest all funds described in this section under prudent investor
1-16 [person] standards.
1-17 (d) As used in this section, "prudent investor [person]
1-18 standard" is the standard of care described in Section 11b, Article
1-19 VII, [Section 11b, of the] Texas Constitution [, and means that
1-20 standard of judgment and care that persons of ordinary prudence,
1-21 discretion, and intelligence exercise in the management of their
1-22 affairs in regard to the investments of their funds considering
1-23 probable income as well as probable safety of their capital].
1-24 SECTION 2. This Act takes effect immediately if it receives a
2-1 vote of two-thirds of all the members elected to each house, as
2-2 provided by Section 39, Article III, Texas Constitution. If this
2-3 Act does not receive the vote necessary for immediate effect, this
2-4 Act takes effect September 1, 2001.