85R22604 KLA-F
By: Capriglione H.B. No. 855
Substitute the following for H.B. No. 855:
By: Raney C.S.H.B. No. 855
A BILL TO BE ENTITLED
AN ACT
relating to the management and investment of the economic
stabilization fund and the Texas legacy distribution fund,
including the determination of a sufficient balance within the
economic stabilization fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 404, Government Code, is
amended by adding Sections 404.0242 and 404.0243 to read as
follows:
Sec. 404.0242. MANAGEMENT AND INVESTMENT OF ECONOMIC
STABILIZATION FUND ACCOUNTS AND TEXAS LEGACY DISTRIBUTION FUND.
(a) This section applies only to the following accounts and fund
established under Section 49-g, Article III, Texas Constitution:
(1) the Texas stabilization account in the economic
stabilization fund;
(2) the Texas legacy account in the economic
stabilization fund; and
(3) the Texas legacy distribution fund.
(b) In managing the assets of an account or fund to which
this section applies, the comptroller, through procedures and
subject to restrictions the comptroller establishes for each
account or fund and in amounts the comptroller considers
appropriate for each account or fund, may acquire, exchange, sell,
supervise, manage, or retain any kind of investment that a prudent
investor exercising reasonable care, skill, and caution would
acquire, exchange, sell, supervise, manage, or retain in light of
the purposes, terms, distribution requirements, and other
circumstances then prevailing for the account or fund, taking into
consideration the investment of all the assets of the account or
fund rather that a single investment.
(c) Section 404.024 does not apply to the investment of the
assets of an account or fund to which this section applies.
Sec. 404.0243. INVESTMENT OBJECTIVES AND PURPOSES OF
ECONOMIC STABILIZATION FUND ACCOUNTS. (a) The investment
objectives and purposes of the Texas stabilization account in the
economic stabilization fund are to preserve:
(1) the account's principal;
(2) the purchasing power of the account's principal;
and
(3) the liquidity of the account.
(b) The investment objectives and purposes of the Texas
legacy account in the economic stabilization fund are to generate
earnings on the account's principal to:
(1) maintain the purchasing power of that principal
and if possible, increase that purchasing power; and
(2) provide for predictable and stable annual earnings
distributions to the Texas legacy distribution fund.
SECTION 2. Subchapter E, Chapter 404, Government Code, is
amended by adding Section 404.074 to read as follows:
Sec. 404.074. SUFFICIENT BALANCE OF TEXAS STABILIZATION
ACCOUNT. For the purpose of making the transfers of money required
by Section 49-g, Article III, Texas Constitution, on or after the
first day but before the 90th day of a state fiscal year, the
comptroller shall determine for that fiscal year the amount of the
sufficient balance of the Texas stabilization account in the
economic stabilization fund. The amount of the sufficient balance
is equal to eight percent of the certified general revenue-related
appropriations for the state fiscal biennium during which the
determination is made.
SECTION 3. Sections 316.091, 316.092, 316.093, and
404.0241, Government Code, are repealed.
SECTION 4. This Act takes effect January 1, 2018, but only
if the constitutional amendment proposed by __.J.R. No.____, 85th
Legislature, Regular Session, 2017, is approved by the voters. If
that amendment is not approved by the voters, this Act has no
effect.