2015S0474-2 03/13/15
By: Seliger S.B. No. 1927
A BILL TO BE ENTITLED
AN ACT
relating to the investment of a portion of the economic
stabilization fund balance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 404, Government Code, is
amended by adding Section 404.0241 to read as follows:
Sec. 404.0241. INVESTMENT OF CERTAIN ECONOMIC
STABILIZATION FUND BALANCES. (a) The comptroller, with the
approval of the Legislative Budget Board under Subsection (c), may
invest an amount of the economic stabilization fund equal to the
sufficient balance adopted under Section 316.092(d) for the
applicable state fiscal biennium in accordance with the investment
standard described by Section 404.024(j). The comptroller's
investment under this subsection is not subject to any other
limitation or other requirement provided by Section 404.024.
(b) The comptroller, with the approval of the Legislative
Budget Board under Subsection (c), shall adjust the investment
portfolio of economic stabilization fund money periodically to
ensure that, as appropriated money is withdrawn or money is
otherwise transferred from the fund or as the sufficient balance
adopted under Section 316.092(d) changes, only the amount of funds
specified by Subsection (a) is invested in a manner that does not
comply with all limitations and other requirements of Section
404.024.
(c) Not later than February 1 of each year, the comptroller,
in consultation with the investment advisory board established
under Section 404.028, shall submit to the Legislative Budget Board
at least two investment plans detailing proposed investments under
Subsection (a) or adjustments under Subsection (b). At least one of
the proposed investment plans may not provide for any participation
by the Texas Treasury Safekeeping Trust Company. Not later than the
30th day after the date of receiving proposed investment plans from
the comptroller, the Legislative Budget Board shall conduct and the
comptroller shall attend a public hearing on the proposed
investment plans. The Legislative Budget Board shall approve or
disapprove each proposed investment plan not later than the 10th
day after the date of the hearing. If, after the 10th day after the
date of a hearing, the Legislative Budget Board has not approved an
investment plan, the comptroller may, not later than the 40th day
after the date of the hearing, submit additional investment plans
to the board in the manner described by this section.
(d) Not later than January 1 of each year, the Legislative
Budget Board, in consultation with the comptroller, shall publish
an annual report on the risk-adjusted performance of investments
under this section during the fiscal year ending on the preceding
August 31. The comptroller shall provide the Legislative Budget
Board with the information the board requests regarding the
performance of the investments under this section and, at the
request of the board, shall appear before the board to present
information and receive questions and comments. The annual report
must include:
(1) statements of assets and a schedule of changes in
book value of the investments under this section;
(2) a summary of the gains, losses, and income from
investments under this section on August 31;
(3) an itemized list of the securities held as
investments under this section on August 31; and
(4) any other information needed to clearly indicate
the nature and extent of the investments under this section and the
income realized from those investments.
(e) The comptroller and the Legislative Budget Board shall
each make the report described by Subsection (d) available on the
respective agency's Internet website.
(f) Funds invested under this section are considered for all
purposes to be part of the economic stabilization fund.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.