By: Rodriguez S.B. No. 1555
(In the Senate - Filed March 10, 2011; March 23, 2011, read
first time and referred to Committee on Higher Education;
April 18, 2011, reported favorably by the following vote: Yeas 4,
Nays 2; April 18, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
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 (b-1) to read as follows:
(b-1) In awarding investment contracts to private
professional investment managers or in otherwise seeking or
acquiring private financial services in relation to its investments
under this section, the corporation shall make a good faith effort
to award contracts to or to seek or acquire services from qualified
emerging fund managers.
SECTION 2. Subsection (o), Section 66.08, Education Code,
is amended by adding Subdivisions (1-a) and (1-b) to read as
follows:
(1-a) "Emerging fund manager" means a professional
investment manager that manages assets of not more than $5 billion.
(1-b) "Financial services" includes pension fund
management, financial consulting, investment advising, brokerage
services, hedge fund management, private equity fund management,
and real estate investment.
SECTION 3. 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, 2011.
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