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.