TX
Texas House Bill HB855

Texas 2017 - 85th Regular

Texas House Bill HB855 Compare Versions

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1-85R22604 KLA-F
2- By: Capriglione H.B. No. 855
3- Substitute the following for H.B. No. 855:
4- By: Raney C.S.H.B. No. 855
1+By: Capriglione, Goldman, Simmons, H.B. No. 855
2+ Rodriguez of Bexar, Button, et al.
53
64
75 A BILL TO BE ENTITLED
86 AN ACT
97 relating to the management and investment of the economic
10- stabilization fund and the Texas legacy distribution fund,
11- including the determination of a sufficient balance within the
12- economic stabilization fund.
8+ stabilization fund, including the determination of a sufficient
9+ balance within the economic stabilization fund.
1310 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14- SECTION 1. Subchapter C, Chapter 404, Government Code, is
11+ SECTION 1. Sections 316.093(a), (b), and (f), Government
12+ Code, are amended to read as follows:
13+ (a) Before the comptroller makes transfers for a state
14+ fiscal year in accordance with Section 49-g(c), Article III, Texas
15+ Constitution, the comptroller shall determine whether the sum of
16+ the balance of the fund on the preceding August 31, any projected
17+ transfer to the fund under Section 49-g(b) of that article, and any
18+ projected transfer to the fund under Section 49-g(c) of that
19+ article in accordance with the allocations for the transfer as
20+ provided by Section 49-g(c-1) of that article is less than the
21+ sufficient balance adopted under Section 404.074 [316.092].
22+ (b) If the sum described by Subsection (a) is less than the
23+ sufficient balance adopted under Section 404.074 [316.092], the
24+ comptroller shall reduce the allocation to the state highway fund
25+ provided by Section 49-g(c), Article III, Texas Constitution, and
26+ increase the allocation to the economic stabilization fund, in an
27+ equal amount, until the sufficient balance adopted under Section
28+ 404.074 [316.092] is achieved.
29+ (f) Subsections (a) and[,] (b)[, and (c)] and this
30+ subsection expire December 31, 2024.
31+ SECTION 2. The heading to Section 404.0241, Government
32+ Code, is amended to read as follows:
33+ Sec. 404.0241. COMPUTATION [INVESTMENT] OF [CERTAIN]
34+ ECONOMIC STABILIZATION FUND BALANCE [BALANCES].
35+ SECTION 3. Subchapter C, Chapter 404, Government Code, is
1536 amended by adding Sections 404.0242 and 404.0243 to read as
1637 follows:
1738 Sec. 404.0242. MANAGEMENT AND INVESTMENT OF ECONOMIC
18- STABILIZATION FUND ACCOUNTS AND TEXAS LEGACY DISTRIBUTION FUND.
19- (a) This section applies only to the following accounts and fund
20- established under Section 49-g, Article III, Texas Constitution:
21- (1) the Texas stabilization account in the economic
22- stabilization fund;
23- (2) the Texas legacy account in the economic
24- stabilization fund; and
25- (3) the Texas legacy distribution fund.
26- (b) In managing the assets of an account or fund to which
27- this section applies, the comptroller, through procedures and
28- subject to restrictions the comptroller establishes for each
29- account or fund and in amounts the comptroller considers
30- appropriate for each account or fund, may acquire, exchange, sell,
31- supervise, manage, or retain any kind of investment that a prudent
32- investor exercising reasonable care, skill, and caution would
33- acquire, exchange, sell, supervise, manage, or retain in light of
34- the purposes, terms, distribution requirements, and other
35- circumstances then prevailing for the account or fund, taking into
36- consideration the investment of all the assets of the account or
37- fund rather that a single investment.
39+ STABILIZATION FUND ACCOUNTS. (a) To manage economic stabilization
40+ fund investments, the comptroller shall establish the following
41+ accounts in the economic stabilization fund:
42+ (1) the Texas stabilization account; and
43+ (2) the Texas legacy account.
44+ (b) In managing the assets of an account established under
45+ this section, the comptroller, through procedures and subject to
46+ restrictions the comptroller establishes for each account and in
47+ amounts the comptroller considers appropriate for each account, may
48+ acquire, exchange, sell, supervise, manage, or retain any kind of
49+ investment that a prudent investor exercising reasonable care,
50+ skill, and caution would acquire, exchange, sell, supervise,
51+ manage, or retain in light of the purposes, terms, distribution
52+ requirements, and other circumstances then prevailing for the
53+ account, taking into consideration the investment of all the assets
54+ of the account rather than a single investment.
3855 (c) Section 404.024 does not apply to the investment of the
39- assets of an account or fund to which this section applies.
56+ assets of an account established under this section.
4057 Sec. 404.0243. INVESTMENT OBJECTIVES AND PURPOSES OF
4158 ECONOMIC STABILIZATION FUND ACCOUNTS. (a) The investment
4259 objectives and purposes of the Texas stabilization account in the
4360 economic stabilization fund are to preserve:
4461 (1) the account's principal;
4562 (2) the purchasing power of the account's principal;
4663 and
4764 (3) the liquidity of the account.
4865 (b) The investment objectives and purposes of the Texas
4966 legacy account in the economic stabilization fund are to generate
5067 earnings on the account's principal to:
5168 (1) maintain the purchasing power of that principal
5269 and if possible, increase that purchasing power; and
53- (2) provide for predictable and stable annual earnings
54- distributions to the Texas legacy distribution fund.
55- SECTION 2. Subchapter E, Chapter 404, Government Code, is
70+ (2) provide for predictable and stable annual
71+ earnings.
72+ SECTION 4. Subchapter E, Chapter 404, Government Code, is
5673 amended by adding Section 404.074 to read as follows:
5774 Sec. 404.074. SUFFICIENT BALANCE OF TEXAS STABILIZATION
58- ACCOUNT. For the purpose of making the transfers of money required
59- by Section 49-g, Article III, Texas Constitution, on or after the
60- first day but before the 90th day of a state fiscal year, the
61- comptroller shall determine for that fiscal year the amount of the
62- sufficient balance of the Texas stabilization account in the
63- economic stabilization fund. The amount of the sufficient balance
64- is equal to eight percent of the certified general revenue-related
75+ ACCOUNT. (a) For the purpose of making the transfers of money
76+ required by Section 49-g, Article III, Texas Constitution, the
77+ amount of the sufficient balance of the economic stabilization fund
78+ is equal to seven percent of the certified general revenue-related
6579 appropriations for the state fiscal biennium during which the
66- determination is made.
67- SECTION 3. Sections 316.091, 316.092, 316.093, and
68- 404.0241, Government Code, are repealed.
69- SECTION 4. This Act takes effect January 1, 2018, but only
70- if the constitutional amendment proposed by __.J.R. No.____, 85th
71- Legislature, Regular Session, 2017, is approved by the voters. If
72- that amendment is not approved by the voters, this Act has no
73- effect.
80+ transfers are to be made.
81+ (b) Except as provided by Subsection (c), the comptroller
82+ shall allocate and, at the time and in the manner that minimizes
83+ losses and penalties, adjust the allocation of the economic
84+ stabilization fund between the Texas stabilization account and the
85+ Texas legacy account to:
86+ (1) maintain a balance in the Texas stabilization
87+ account equal to the sufficient balance of the economic
88+ stabilization fund; and
89+ (2) allocate the remainder of the economic
90+ stabilization fund balance to the Texas legacy account.
91+ (c) If the legislature appropriates money from the Texas
92+ stabilization account and, as a result of that appropriation, the
93+ account balance is less than the sufficient balance of the economic
94+ stabilization fund, the comptroller may not adjust the allocation
95+ of the economic stabilization fund balance to allocate an amount to
96+ the Texas stabilization account to achieve a balance in that
97+ account equal to the sufficient balance.
98+ SECTION 5. The following provisions of the Government Code
99+ are repealed:
100+ (1) Section 316.091;
101+ (2) Section 316.092;
102+ (3) Section 316.093(c); and
103+ (4) Sections 404.0241(a), (b), and (d).
104+ SECTION 6. This Act takes effect September 1, 2017.