| 1 | 1 | | 83R12201 JJT-F |
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| 2 | 2 | | By: Guillen H.B. No. 3651 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the management and use of the Texas preservation trust |
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| 8 | 8 | | fund. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 442.015, Government Code, is amended by |
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| 11 | 11 | | amending Subsections (a), (b), and (f) and adding Subsections (h), |
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| 12 | 12 | | (i), (j), (k), and (l) to read as follows: |
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| 13 | 13 | | (a) Notwithstanding Section 403.095, the Texas preservation |
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| 14 | 14 | | trust fund account is a separate account in the general revenue |
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| 15 | 15 | | fund. The account consists of transfers made to the account, loan |
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| 16 | 16 | | repayments, grants and donations made for the purposes of this |
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| 17 | 17 | | program, proceeds of sales, earnings [income earned] on [money in] |
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| 18 | 18 | | the account, and any other money received under this |
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| 19 | 19 | | section. Distributions from [Money in] the account may be used |
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| 20 | 20 | | only for the purposes of this section and may not be used to pay |
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| 21 | 21 | | operating expenses of the commission. Money allocated to the |
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| 22 | 22 | | commission's historic preservation grant program shall be |
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| 23 | 23 | | deposited to the credit of the account. Earnings [Income earned] |
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| 24 | 24 | | on [money in] the account shall be deposited to the credit of the |
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| 25 | 25 | | account. |
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| 26 | 26 | | (b) The commission may use distributions from [money in] the |
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| 27 | 27 | | Texas preservation trust fund account to provide financial |
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| 28 | 28 | | assistance to public or private entities for the acquisition, |
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| 29 | 29 | | survey, restoration, or preservation, or for planning and |
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| 30 | 30 | | educational activities leading to the preservation, of historic |
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| 31 | 31 | | property in the state that is listed in the National Register of |
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| 32 | 32 | | Historic Places or designated as a State Archeological Landmark or |
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| 33 | 33 | | Recorded Texas Historic Landmark, or that the commission determines |
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| 34 | 34 | | is eligible for such listing or designation. The financial |
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| 35 | 35 | | assistance may be in the amount and form and according to the terms |
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| 36 | 36 | | that the commission by rule determines. The commission shall give |
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| 37 | 37 | | priority to property the commission determines to be endangered by |
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| 38 | 38 | | demolition, neglect, underuse, looting, vandalism, or other threat |
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| 39 | 39 | | to the property. Gifts and grants deposited to the credit of the |
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| 40 | 40 | | account specifically for any eligible projects may be used only for |
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| 41 | 41 | | the type of projects specified. If such a specification is not |
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| 42 | 42 | | made, the gift or grant shall be unencumbered and accrue to the |
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| 43 | 43 | | benefit of the Texas preservation trust fund account. If such a |
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| 44 | 44 | | specification is made, the entire amount of the gift or grant may be |
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| 45 | 45 | | used during any period for the project or type of project specified. |
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| 46 | 46 | | (f) The advisory board shall recommend to the commission |
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| 47 | 47 | | rules for administering Subsections (a)-(e) [this section]. |
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| 48 | 48 | | (h) The comptroller shall manage the assets of the account. |
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| 49 | 49 | | In managing the assets of the account, the comptroller may acquire, |
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| 50 | 50 | | exchange, sell, supervise, manage, or retain, through procedures |
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| 51 | 51 | | and subject to restrictions the comptroller considers appropriate, |
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| 52 | 52 | | any kind of investment that a prudent investor, exercising |
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| 53 | 53 | | reasonable care, skill, and caution, would acquire or retain in |
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| 54 | 54 | | light of the purposes, terms, distribution requirements, and other |
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| 55 | 55 | | circumstances of the account then prevailing, taking into |
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| 56 | 56 | | consideration the investment of all the assets of the account |
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| 57 | 57 | | rather than a single investment. |
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| 58 | 58 | | (i) The amount of a distribution shall be determined by the |
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| 59 | 59 | | comptroller in a manner intended to provide a stable and |
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| 60 | 60 | | predictable stream of annual distributions and to maintain over |
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| 61 | 61 | | time the purchasing power of account investments and annual |
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| 62 | 62 | | distributions from the account. If the purchasing power of account |
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| 63 | 63 | | investments for any 10-year period is not preserved, the |
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| 64 | 64 | | comptroller may not increase annual distributions from the account |
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| 65 | 65 | | until the purchasing power of account investments is restored. |
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| 66 | 66 | | (j) An annual distribution made by the comptroller from the |
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| 67 | 67 | | account during a fiscal year may not exceed an amount equal to seven |
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| 68 | 68 | | percent of the average net fair market value of the investment |
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| 69 | 69 | | assets of the account as determined by the comptroller. |
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| 70 | 70 | | (k) The expenses of managing account investments shall be |
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| 71 | 71 | | paid from the account. |
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| 72 | 72 | | (l) On request, the comptroller shall fully disclose all |
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| 73 | 73 | | details concerning the investments of the account. |
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| 74 | 74 | | SECTION 2. This Act takes effect September 1, 2013. |
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