Relating to the investment of funds by the governing boards of certain institutions of higher education.
Impact
The passage of SB 1019 is expected to have a positive impact on smaller colleges and universities in Texas that struggle with limited financial resources. By pooling investments with larger institutions, these governing boards will have access to a wider range of investment options and expertise that they may not possess independently. This collaborative approach is designed to help improve their financial stability and growth potential, which is crucial in an increasingly competitive higher education landscape.
Summary
Senate Bill 1019 aims to amend the Education Code of Texas regarding the investment of funds by the governing boards of certain institutions of higher education. Specifically, it introduces a provision that allows governing boards without at least $25 million in book value of endowment funds to pool their funds with another institution that meets this threshold. This measure is intended to enhance investment opportunities for smaller institutions by enabling them to collaborate in managing their financial resources more effectively.
Contention
While the bill presents advantages, it is likely to bring up discussions about the governance and oversight of pooled funds. Critics may express concern over how investment decisions are made when multiple institutions are involved, particularly regarding risk management and accountability. Ensuring that all participating governing boards maintain compliance with fiduciary responsibilities under the prudent person standards will be essential to mitigate potential conflicts and safeguard the interests of students and stakeholders.
Relating to the administration and investment of, and distribution and use of money from, certain constitutional and statutory funds to support general academic teaching institutions in achieving national prominence as major research universities and driving the state economy; redesignating the national research university fund as the Texas University Fund.
Relating to the administration and investment of, and distribution and use of money from, certain constitutional and statutory funds to support general academic teaching institutions in achieving national prominence as major research universities and driving the state economy.
Relating to prohibiting the investment of the permanent university fund, the national research university fund, or money held by a public institution of higher education in financial companies that boycott certain energy companies.
Proposing a constitutional amendment providing for the creation of funds to support the capital needs of educational programs offered by the Texas State Technical College System and certain component institutions of the Texas State University System and repealing the limitation on the allocation to the Texas State Technical College System and its campuses of the annual appropriation of certain constitutionally dedicated funding for public institutions of higher education.
Relating to authorized investments of public money by certain governmental entities and the confidentiality of certain information related to those investments.
Relating to the disclosure of certain gifts, grants, contracts, and financial interests received from a foreign source by certain state agencies, public institutions of higher education, and state contractors, and to the approval and monitoring of employment-related foreign travel and activities by certain public institution of higher education employees; providing civil and administrative penalties.