Texas Senate Bill SB767

Texas 2021 - 87th Regular

Caption

Relating to investments made by the comptroller of public accounts with state funds not deposited in state depositories.

Impact

The proposed changes under SB767 indicate a potential increase in the ability of state agencies to earn returns on non-depository state funds. By expanding the range of authorized investments to include various federal obligations and corporate debt obligations rated at least 'A', this bill facilitates a more aggressive financial strategy. This shift could allow the state to take advantage of favorable market conditions and diversify its investment portfolio, which may ultimately impact the availability of funds for state programs and services.

Summary

SB767, relating to investments made by the comptroller of public accounts with state funds not deposited in state depositories, aims to update and clarify the types of investments permissible for state funds. This bill amends existing regulations to enhance the scope of investment options available to the comptroller, allowing for broader financial management of state resources that are not held in traditional financial institutions. The revisions include specific provisions on how investments can be structured and the types of securities that can be acquired, aiming to foster better financial returns on state funds.

Contention

While proponents argue that SB767 is necessary to modernize Texas's investment strategy, highlighting the importance of adapting to changing financial markets, opponents may raise concerns about the associated risks. By permitting investments in a broader range of securities, critics could voice apprehensions regarding the potential for decreased oversight and increased exposure to market volatility. Balancing the goals of maximizing returns while maintaining prudent fiscal oversight will likely be a central point of discussion as the bill moves through the legislative process.