By:  Gallego                                                      H.B. No. 3436



A BILL TO BE ENTITLED

AN ACT

relating to the disclosure of information relating to the 
investment of the Permanent University Fund and other funds under 
the management and control of the board of regents of The University 
of Texas System.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 66.08, Education Code, is amended by 
adding Subsection (p) to read as follows:
	(p)  The corporation or any other entity with whom the board 
of regents contracts for the investment of the permanent university 
fund or other funds under the management and control of the board of 
regents must require any person with whom the corporation or other 
investing entity enters into any agreement, including a limited 
partnership or joint venture agreement, for investment of a portion 
of those funds to disclose to the board of regents the annual 
performance of all investments, joint ventures, partnerships or 
limited partnerships, or other business activities that the person 
managed or participated in managing for the preceding five years.  
The disclosure must include a general description of the nature of 
each of those investments or other activities.  The board of regents 
shall make that information available to the public in the manner 
provided by Chapter 552, Government Code, for other public 
information.  This subsection does not require the disclosure of 
information regarding the internal operations of the person or of 
any investment or other activity managed by the person, or of the 
names of any other person participating in an investment or other 
activity for which disclosure is required.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.