LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 17, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1545  by Duncan (Relating to the investment and use of
               the assets of certain endowment funds of certain
               institutions of higher education.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill removes the current provision that prohibits the specified
institutions from appropriating the net unrealized appreciation of the
assets of an endowment fund, and amends the definition of the "prudent
person standard" for endowment funds with a book value greater than $25
million.  These changes may result in additional costs and/or additional
distributions from endowment funds.  However, these funds are held
outside the appropriations act and would not impact state
appropriations.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   781   Texas Higher Education Coordinating Board, 304
                   Comptroller of Public Accounts
LBB Staff:         JK, CT, DB, DC