| 1 | 1 | | 2015S0474-2 03/13/15 |
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| 2 | 2 | | By: Seliger S.B. No. 1927 |
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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 investment of a portion of the economic |
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| 8 | 8 | | stabilization 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) The comptroller, with the |
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| 14 | 14 | | approval of the Legislative Budget Board under Subsection (c), may |
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| 15 | 15 | | invest an amount of the economic stabilization fund equal to the |
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| 16 | 16 | | sufficient balance adopted under Section 316.092(d) for the |
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| 17 | 17 | | applicable state fiscal biennium in accordance with the investment |
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| 18 | 18 | | standard described by Section 404.024(j). The comptroller's |
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| 19 | 19 | | investment under this subsection is not subject to any other |
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| 20 | 20 | | limitation or other requirement provided by Section 404.024. |
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| 21 | 21 | | (b) The comptroller, with the approval of the Legislative |
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| 22 | 22 | | Budget Board under Subsection (c), shall adjust the investment |
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| 23 | 23 | | portfolio of economic stabilization fund money periodically to |
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| 24 | 24 | | ensure that, as appropriated money is withdrawn or money is |
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| 25 | 25 | | otherwise transferred from the fund or as the sufficient balance |
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| 26 | 26 | | adopted under Section 316.092(d) changes, only the amount of funds |
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| 27 | 27 | | specified by Subsection (a) is invested in a manner that does not |
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| 28 | 28 | | comply with all limitations and other requirements of Section |
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| 29 | 29 | | 404.024. |
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| 30 | 30 | | (c) Not later than February 1 of each year, the comptroller, |
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| 31 | 31 | | in consultation with the investment advisory board established |
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| 32 | 32 | | under Section 404.028, shall submit to the Legislative Budget Board |
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| 33 | 33 | | at least two investment plans detailing proposed investments under |
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| 34 | 34 | | Subsection (a) or adjustments under Subsection (b). At least one of |
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| 35 | 35 | | the proposed investment plans may not provide for any participation |
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| 36 | 36 | | by the Texas Treasury Safekeeping Trust Company. Not later than the |
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| 37 | 37 | | 30th day after the date of receiving proposed investment plans from |
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| 38 | 38 | | the comptroller, the Legislative Budget Board shall conduct and the |
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| 39 | 39 | | comptroller shall attend a public hearing on the proposed |
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| 40 | 40 | | investment plans. The Legislative Budget Board shall approve or |
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| 41 | 41 | | disapprove each proposed investment plan not later than the 10th |
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| 42 | 42 | | day after the date of the hearing. If, after the 10th day after the |
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| 43 | 43 | | date of a hearing, the Legislative Budget Board has not approved an |
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| 44 | 44 | | investment plan, the comptroller may, not later than the 40th day |
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| 45 | 45 | | after the date of the hearing, submit additional investment plans |
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| 46 | 46 | | to the board in the manner described by this section. |
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| 47 | 47 | | (d) Not later than January 1 of each year, the Legislative |
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| 48 | 48 | | Budget Board, in consultation with the comptroller, shall publish |
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| 49 | 49 | | an annual report on the risk-adjusted performance of investments |
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| 50 | 50 | | under this section during the fiscal year ending on the preceding |
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| 51 | 51 | | August 31. The comptroller shall provide the Legislative Budget |
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| 52 | 52 | | Board with the information the board requests regarding the |
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| 53 | 53 | | performance of the investments under this section and, at the |
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| 54 | 54 | | request of the board, shall appear before the board to present |
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| 55 | 55 | | information and receive questions and comments. The annual report |
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| 56 | 56 | | must include: |
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| 57 | 57 | | (1) statements of assets and a schedule of changes in |
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| 58 | 58 | | book value of the investments under this section; |
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| 59 | 59 | | (2) a summary of the gains, losses, and income from |
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| 60 | 60 | | investments under this section on August 31; |
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| 61 | 61 | | (3) an itemized list of the securities held as |
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| 62 | 62 | | investments under this section on August 31; and |
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| 63 | 63 | | (4) any other information needed to clearly indicate |
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| 64 | 64 | | the nature and extent of the investments under this section and the |
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| 65 | 65 | | income realized from those investments. |
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| 66 | 66 | | (e) The comptroller and the Legislative Budget Board shall |
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| 67 | 67 | | each make the report described by Subsection (d) available on the |
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| 68 | 68 | | respective agency's Internet website. |
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| 69 | 69 | | (f) Funds invested under this section are considered for all |
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| 70 | 70 | | purposes to be part of the economic stabilization fund. |
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| 71 | 71 | | SECTION 2. This Act takes effect immediately if it receives |
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| 72 | 72 | | a vote of two-thirds of all the members elected to each house, as |
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| 73 | 73 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 74 | 74 | | Act does not receive the vote necessary for immediate effect, this |
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| 75 | 75 | | Act takes effect September 1, 2015. |
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