LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 8, 2001
  
  
          TO:  Honorable Paul Sadler, Chair, House Committee on Public
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB512  by Duncan (Relating to the investment and
               management of the permanent school fund; providing
               penalties.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill creates the Permanent school Fund Investment Advisory Committee,
a five-person appointed committee directed to provide investment advice
to the State Board of Education.   The Texas Education Agency estimates
that each committee member would incur travel costs of about $5,000
annually, for a biennial travel reimbursement cost of $50,000. The bill
prohibits Permanent School Fund (PSF) money managers, advisors,
consultants or brokers from hiring a lobbyist for PSF matters and
requires that the SBOE meet as a body corporate when acting on PSF
matters.

The bill repeals Texas Education Code 43.005, relating to the authority
of the agency to enter into contracts with external money managers.
There is other authority for such contracts however, and therefore this
repeal does not have a fiscal impact.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 701   Texas
                   Education Agency
LBB Staff:         JK, CT, UP