As members of the State Board of Education trade accusations of ethical lapses, board leaders say it is time to revisit the ethics policy that governs their management of the $19.5 billion public school trust fund.

David Bradley, chairman of the Permanent School Fund committee, said the current hodgepodge of policies has created a "culture of gotcha" as board members are questioned about compliance with disclosure rules and other requirements that

"It becomes more of a political weapon and food fight," said Bradley, R-Beaumont. "We're going to try to make it a little more simpler. ... Hopefully, we can eliminate some of the political gamesmanship."

At the same time, board Chairwoman Gail Lowe, R-Lampasas, wants to clarify how ethical complaints should be handled when they do arise.

"If the chairman is expected to enforce something, I need some better guidelines," said Lowe, who was appointed to lead the board in July.

The review, which will begin at a committee meeting Friday, stems from questions that arose earlier this year about a business meeting between board member Rick Agosto, D-San Antonio, and an investment consulting firm that was later hired to oversee the revamp of the fund's investment strategy.

Last week, new allegations surfaced that Agosto and board member Rene Nuñez, D-El Paso, had failed to disclose gifts received by a contender for a real estate investing contract, according to The Dallas Morning News.

"I didn't do anything wrong. ... I'm following all the rules, but I'm getting penalized," said Agosto, who runs a firm that helps clients raise money from institutional investors, such as pensions and endowments. "This is a smear campaign, and we're going to fight it."

Agosto lobbed his own ethics charge at the unnamed board

member who released the information to the newspaper because the document was not yet public information. To protect the competitiveness of the process, all documents submitted by bidders are considered proprietary under state

law until the process is completed.

The ethics policy review is needed to streamline various policies and clarify them to avoid the kind of confusion that has plagued the board of late, Lowe said.

Of particular concern to Bradley and Agosto are the differing disclosure requirements for the board members and the bidders vying for contracts with the Permanent School Fund. The bidders have to submit all contacts with board members for the six months before the posting of the job opportunity, but board members are not prohibited from having contact until the bid is submitted.

"I would hope that it would better protect board members from erroneous charges," Lowe said. She added that she hoped it would also ensure transparency in the process.

In the wake of several high-profile scandals, the trend is for public investment funds to move toward more openness and transparency rather than less, said David Hess, a business professor at the University of Michigan who has studied ethics in public finance.

But there is no standard ethics and disclosure policy that will work for every fund, Hess said. Each one has a different structure, history and purpose, so the policies have to be crafted to meet the fund's specific needs.

Board members who have publicly raised the ethical concerns say they welcome a look at the policies, though they are not certain that changes are needed.

"It's a good idea to get things clearly out on the table," said board member Pat Hardy, R-Weatherford.

Hardy added that she had faith that Lowe would ensure the process is done with the highest integrity to protect the fund and the board.

Board member Bob Craig, R-Lubbock, said the disclosure rules can help board members.

"If you're transparent and open about it, then ... you clear up the perception that there may be a problem, and sometimes the perception is worse than reality," he said.

"You've got to have full disclosure," Craig said. "It's really not that complicated. Just do the right thing."