Bill Text: TX HB209 | 2017 | 85th Legislature 1st Special Session | Introduced
Bill Title: Relating to the determination of the sufficient balance and management and investment of the economic stabilization fund.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2017-07-20 - Referred to Appropriations [HB209 Detail]
Download: Texas-2017-HB209-Introduced.html
85S10746 KLA-D | ||
By: Capriglione | H.B. No. 209 |
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relating to the determination of the sufficient balance and | ||
management and investment of the economic stabilization fund. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Subchapter H, Chapter 316, | ||
Government Code, is amended to read as follows: | ||
SUBCHAPTER H. ALLOCATIONS OF CERTAIN CONSTITUTIONAL TRANSFERS OF | ||
MONEY [ |
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SECTION 2. Sections 316.093(a), (b), and (f), Government | ||
Code, are amended to read as follows: | ||
(a) Before the comptroller makes transfers for a state | ||
fiscal year in accordance with Section 49-g(c), Article III, Texas | ||
Constitution, the comptroller shall determine whether the sum of | ||
the balance of the fund on the preceding August 31, any projected | ||
transfer to the fund under Section 49-g(b) of that article, and any | ||
projected transfer to the fund under Section 49-g(c) of that | ||
article in accordance with the allocations for the transfer as | ||
provided by Section 49-g(c-1) of that article is less than the | ||
sufficient balance determined as provided by [ |
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Section 404.074 [ |
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(b) If the sum described by Subsection (a) is less than the | ||
sufficient balance determined as provided by [ |
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Section 404.074 [ |
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allocation to the state highway fund provided by Section 49-g(c), | ||
Article III, Texas Constitution, and increase the allocation to the | ||
economic stabilization fund, in an equal amount, until the | ||
sufficient balance determined as provided by [ |
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Section 404.074 [ |
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(f) Subsections (a) and[ |
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subsection expire December 31, 2024. | ||
SECTION 3. The heading to Section 404.0241, Government | ||
Code, is amended to read as follows: | ||
Sec. 404.0241. COMPUTATION [ |
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ECONOMIC STABILIZATION FUND BALANCE [ |
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SECTION 4. Subchapter C, Chapter 404, Government Code, is | ||
amended by adding Sections 404.0242 and 404.0243 to read as | ||
follows: | ||
Sec. 404.0242. MANAGEMENT AND INVESTMENT OF ECONOMIC | ||
STABILIZATION FUND ACCOUNTS. (a) To manage economic stabilization | ||
fund investments, the comptroller shall establish the following | ||
accounts in the economic stabilization fund: | ||
(1) the Texas stabilization account; and | ||
(2) the Texas legacy account. | ||
(b) In managing the assets of an account established under | ||
this section, the comptroller, through procedures and subject to | ||
restrictions the comptroller establishes for each account and in | ||
amounts the comptroller considers appropriate for each account, may | ||
acquire, exchange, sell, supervise, manage, or retain any kind of | ||
investment that a prudent investor exercising reasonable care, | ||
skill, and caution would acquire, exchange, sell, supervise, | ||
manage, or retain in light of the purposes, terms, distribution | ||
requirements, and other circumstances then prevailing for the | ||
account, taking into consideration the investment of all the assets | ||
of the account rather than a single investment. | ||
(c) Section 404.024 does not apply to the investment of the | ||
assets of an account established under this section. | ||
Sec. 404.0243. INVESTMENT OBJECTIVES AND PURPOSES OF | ||
ECONOMIC STABILIZATION FUND ACCOUNTS. (a) The investment | ||
objectives and purposes of the Texas stabilization account in the | ||
economic stabilization fund are to preserve: | ||
(1) the account's principal; | ||
(2) the purchasing power of the account's principal; | ||
and | ||
(3) the liquidity of the account. | ||
(b) The investment objectives and purposes of the Texas | ||
legacy account in the economic stabilization fund are to generate | ||
earnings on the account's principal to: | ||
(1) maintain the purchasing power of that principal | ||
and if possible, increase that purchasing power; and | ||
(2) provide for predictable and stable annual | ||
earnings. | ||
SECTION 5. Subchapter E, Chapter 404, Government Code, is | ||
amended by adding Section 404.074 to read as follows: | ||
Sec. 404.074. SUFFICIENT BALANCE OF ECONOMIC STABILIZATION | ||
FUND. (a) For the purpose of making the transfers of money | ||
required by Section 49-g, Article III, Texas Constitution, the | ||
amount of the sufficient balance of the economic stabilization fund | ||
is equal to seven percent of the certified general revenue-related | ||
appropriations for the state fiscal biennium during which the | ||
transfers are to be made. | ||
(b) Except as provided by Subsection (c), the comptroller | ||
shall allocate and, at the time and in the manner that minimizes | ||
losses and penalties, adjust the allocation of the economic | ||
stabilization fund between the Texas stabilization account and the | ||
Texas legacy account to: | ||
(1) maintain a balance in the Texas stabilization | ||
account equal to the sufficient balance of the economic | ||
stabilization fund; and | ||
(2) allocate the remainder of the economic | ||
stabilization fund balance to the Texas legacy account. | ||
(c) If the legislature appropriates money from the Texas | ||
stabilization account and, as a result of that appropriation, the | ||
account balance is less than the sufficient balance of the economic | ||
stabilization fund, the comptroller may not adjust the allocation | ||
of the economic stabilization fund balance to allocate an amount to | ||
the Texas stabilization account to achieve a balance in that | ||
account equal to the sufficient balance. | ||
SECTION 6. The following provisions of the Government Code | ||
are repealed: | ||
(1) Section 316.091; | ||
(2) Section 316.092; | ||
(3) Section 316.093(c); and | ||
(4) Sections 404.0241(a), (b), and (d). | ||
SECTION 7. This Act takes effect December 1, 2017. |