HB 801 would add a new section to the Texas Education Code regarding the prohibition of certain investments by the permanent university fund. The bill would apply the provisions of Chapter 806 of the Texas Government Code to the investments of the permanent university fund so as to prohibit the investing in the public securities of various companies engaged in active business in Sudan. 

HB 801 would affect the permanent university fund by removing its ability to invest or hold publicly traded securities of companies that are actively doing business with the current government of Sudan based in Khartoum.  Chapter 806 only affects publicly traded securities and indirect holdings (mutual or hedge funds) are exempted from divestment. These effects are of an indeterminable length because this law terminates if Congress revokes sanctions, the genocide is judged to have ended, or this type of law interferes with U.S. foreign policy.

The bill, if enacted, will not have a significant actuarial effect because it does not propose to change the funding or obligations of any public retirement system.

The provisions of this bill will take effect immediately if it receives a vote of two-thirds of all the members elected to each house.  If this bill does not receive the vote necessary for immediate effect, it will take effect September 1, 2009.