Texas House Bill HB855

Texas 2017 - 85th Regular

Caption

Relating to the management and investment of the economic stabilization fund, including the determination of a sufficient balance within the economic stabilization fund.

Impact

If enacted, HB 855 could significantly influence how the state manages its reserve funds. By allowing the comptroller to establish investment strategies for the ESF and the Texas Legacy Distribution Fund, the bill aims to ensure more strategic financial management that could stabilize the state’s economic position during fiscal challenges. It mandates a determination of a sufficient balance based on revenue-related appropriations, which aligns state financial strategies with economic changes.

Summary

House Bill 855 pertains to the management and investment operations related to the Economic Stabilization Fund (ESF) and its associated accounts in Texas. The bill specifically defines the roles of the comptroller in managing these funds and outlines the investment objectives, principally focusing on preserving the principal amount, maintaining purchasing power, and ensuring liquidity. Additionally, the bill estimates a sufficient balance required in the ESF to facilitate state financial operations effectively.

Sentiment

The sentiment around HB 855 appears largely neutral, as the bill is largely technical in nature without evident partisan divisions in the discussions available on this specific legislation. Lawmakers focused on the procedural aspects of the fund management rather than ideological debates. Nevertheless, there could be underlying concerns regarding the implications of such financial management practices on future state funding priorities.

Contention

Noteworthy points of contention could arise regarding the balance and investment strategies determined by the comptroller under this bill. While the bill's intent is to provide a solid framework for managing the Economic Stabilization Fund, discussions may surface about the potential for misalignment in priorities between fiscal management and immediate needs of state programs. Moreover, if the proposed constitutional amendment related to the bill is not approved, it would render the bill ineffective, adding layers of uncertainty to its legislative support.