79R638 JSA-D

By:  Ellis                                                        S.B. No. 549



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 Subsections (p), (q), and (r) to read as follows:
	(p)  The following information regarding each investment of 
the permanent university fund or any other fund under the 
management and control of the board made by the board, the 
corporation, or another entity to which the board delegates its 
investment authority under this section is public information 
subject to disclosure under Chapter 552, Government Code:
		(1)  the name of each business entity or fund in which 
the investment is made and a general description of the nature of 
the investment;
		(2)  the name of any person, including the names of the 
principal officers of the person, that manages or administers the 
investment and a general description of the types of business 
activities engaged in by the person currently and for the five years 
preceding the date the investment is approved;
		(3)  the date the board, corporation, or other 
investing entity approves the investment;
		(4)  the amount of any fees, commissions, or other 
charges paid or authorized to be paid from state funds or from the 
state's share of the investment or investment returns in connection 
with the investment;
		(5)  the total amount of state funds committed or 
authorized to be invested;
		(6)  the date and amount of each payment of state funds 
made in connection with the investment;
		(7)  the internal rate of return to the state of the 
investment as of the most recent date for which that information is 
available; and
		(8)  the current value of the state's investment based 
on the most recent information available.
	(q)  The board, the corporation, or another entity to which 
the board delegates its authority under this section for the 
investment of the permanent university fund or any other fund under 
the management and control of the board shall require any person 
with whom the board, corporation, or other investing entity enters 
into any agreement for investment of a portion of those funds to 
disclose to the board any information available to the person that 
is designated as public information under Subsection (p).  An 
investment contract entered into on or after January 1, 2006, must 
include a provision requiring the person to disclose the 
information on request of the board.
	(r)  Subsection (p) does not require the disclosure of:                 
		(1)  information regarding the internal operations of 
any person with whom the board, corporation, or other investing 
entity contracts; or
		(2)  the name or identity of any other person 
participating in the investment solely as an investor.
	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, 2005.