| 1 | 1 | | By: Meyer H.B. No. 3258 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the investment of a portion of the economic |
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| 7 | 7 | | stabilization fund balance and the dedication of certain interest |
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| 8 | 8 | | earned on the fund balance. |
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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. Subchapter C, Chapter 404, Government Code, is |
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| 11 | 11 | | amended by adding Section 404.0241 to read as follows: |
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| 12 | 12 | | Sec. 404.0241. INVESTMENT OF CERTAIN ECONOMIC |
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| 13 | 13 | | STABILIZATION FUND BALANCES. (a) For purposes of this section, the |
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| 14 | 14 | | balance of the economic stabilization fund includes all liquid |
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| 15 | 15 | | assets of the fund, all investments of fund money, and all net |
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| 16 | 16 | | earnings and losses on those investments. |
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| 17 | 17 | | (b) The comptroller shall invest a portion of the economic |
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| 18 | 18 | | stabilization fund balance as determined under Subsection (c) or |
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| 19 | 19 | | (d) in accordance with the investment standard described by Section |
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| 20 | 20 | | 404.024(j). The comptroller's investment of that balance is not |
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| 21 | 21 | | subject to any other limitation or other requirement provided by |
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| 22 | 22 | | Section 404.024. The expenses of managing the fund shall be paid |
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| 23 | 23 | | from the fund. |
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| 24 | 24 | | (c) Not later than December 1 of each even-numbered year, |
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| 25 | 25 | | the select committee appointed under Section 316.092 shall |
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| 26 | 26 | | determine the portion of the economic stabilization fund balance |
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| 27 | 27 | | that the comptroller is authorized to invest in accordance with |
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| 28 | 28 | | Subsection (b) during the succeeding state fiscal biennium. The |
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| 29 | 29 | | select committee may express the portion as a specific amount or as |
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| 30 | 30 | | a percentage of the fund balance as of one or more prescribed dates. |
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| 31 | 31 | | (d) Notwithstanding Subsection (c), for each state fiscal |
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| 32 | 32 | | biennium beginning with the first state fiscal biennium that begins |
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| 33 | 33 | | after the date Section 316.092 expires, the portion of the economic |
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| 34 | 34 | | stabilization fund balance that the comptroller is required to |
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| 35 | 35 | | invest in accordance with Subsection (b) for a state fiscal |
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| 36 | 36 | | biennium is equal to the amount that is the lesser of: |
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| 37 | 37 | | (1) an amount equal to 50 percent of the economic |
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| 38 | 38 | | stabilization fund balance on the first day of the state fiscal |
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| 39 | 39 | | biennium; or |
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| 40 | 40 | | (2) the amount that would result if the portion of the |
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| 41 | 41 | | fund specified by the select committee for investment in that |
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| 42 | 42 | | manner during the last state fiscal biennium for which the |
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| 43 | 43 | | committee specified a portion were applied. |
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| 44 | 44 | | (e) The comptroller shall adjust the investment portfolio |
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| 45 | 45 | | of economic stabilization fund money periodically or as necessary |
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| 46 | 46 | | to ensure that only the portion of the economic stabilization fund |
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| 47 | 47 | | balance that the comptroller is authorized to invest in accordance |
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| 48 | 48 | | with Subsection (b) is invested in that manner. |
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| 49 | 49 | | SECTION 2. Subchapter E, Chapter 404, Government Code, is |
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| 50 | 50 | | amended by adding Section 404.0711 to read as follows: |
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| 51 | 51 | | Sec. 404.0711. DEDICATION OF CERTAIN INTEREST. (a) This |
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| 52 | 52 | | section applies only to interest otherwise due to the economic |
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| 53 | 53 | | stabilization fund that the comptroller credits to the general |
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| 54 | 54 | | revenue fund as required by Section 49-g(i), Article III, Texas |
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| 55 | 55 | | Constitution. |
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| 56 | 56 | | (b) The comptroller shall credit money to which this section |
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| 57 | 57 | | applies to the following accounts in the general revenue fund: |
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| 58 | 58 | | (1) one-third to an account from which money may be |
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| 59 | 59 | | appropriated only to pay state debt; |
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| 60 | 60 | | (2) one-third to an account from which money may be |
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| 61 | 61 | | appropriated only for graduate medical education programs; and |
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| 62 | 62 | | (3) the remainder to an account from which money may be |
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| 63 | 63 | | appropriated only for the Texas Research Incentive Program (TRIP). |
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| 64 | 64 | | (c) The accounts specified in this section are exempt from |
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| 65 | 65 | | the application of Section 403.095. |
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| 66 | 66 | | SECTION 3. This Act takes effect September 1, 2015. |
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