Texas 2017 - 85th 1st C.S.

Texas House Bill HB209 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85S10746 KLA-D
2	2	By: Capriglione H.B. No. 209
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the determination of the sufficient balance and
8	8	management and investment of the economic stabilization fund.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Subchapter H, Chapter 316,
11	11	Government Code, is amended to read as follows:
12	12	SUBCHAPTER H. ALLOCATIONS OF CERTAIN CONSTITUTIONAL TRANSFERS OF
13	13	MONEY [PRESERVATION OF SUFFICIENT BALANCE IN ECONOMIC
14	14	STABILIZATION FUND]
15	15	SECTION 2. Sections 316.093(a), (b), and (f), Government
16	16	Code, are amended to read as follows:
17	17	(a) Before the comptroller makes transfers for a state
18	18	fiscal year in accordance with Section 49-g(c), Article III, Texas
19	19	Constitution, the comptroller shall determine whether the sum of
20	20	the balance of the fund on the preceding August 31, any projected
21	21	transfer to the fund under Section 49-g(b) of that article, and any
22	22	projected transfer to the fund under Section 49-g(c) of that
23	23	article in accordance with the allocations for the transfer as
24	24	provided by Section 49-g(c-1) of that article is less than the
25	25	sufficient balance determined as provided by [adopted under]
26	26	Section 404.074 [316.092].
27	27	(b) If the sum described by Subsection (a) is less than the
28	28	sufficient balance determined as provided by [adopted under]
29	29	Section 404.074 [316.092], the comptroller shall reduce the
30	30	allocation to the state highway fund provided by Section 49-g(c),
31	31	Article III, Texas Constitution, and increase the allocation to the
32	32	economic stabilization fund, in an equal amount, until the
33	33	sufficient balance determined as provided by [adopted under]
34	34	Section 404.074 [316.092] is achieved.
35	35	(f) Subsections (a) and[,] (b)[, and (c)] and this
36	36	subsection expire December 31, 2024.
37	37	SECTION 3. The heading to Section 404.0241, Government
38	38	Code, is amended to read as follows:
39	39	Sec. 404.0241. COMPUTATION [INVESTMENT] OF [CERTAIN]
40	40	ECONOMIC STABILIZATION FUND BALANCE [BALANCES].
41	41	SECTION 4. Subchapter C, Chapter 404, Government Code, is
42	42	amended by adding Sections 404.0242 and 404.0243 to read as
43	43	follows:
44	44	Sec. 404.0242. MANAGEMENT AND INVESTMENT OF ECONOMIC
45	45	STABILIZATION FUND ACCOUNTS. (a) To manage economic stabilization
46	46	fund investments, the comptroller shall establish the following
47	47	accounts in the economic stabilization fund:
48	48	(1) the Texas stabilization account; and
49	49	(2) the Texas legacy account.
50	50	(b) In managing the assets of an account established under
51	51	this section, the comptroller, through procedures and subject to
52	52	restrictions the comptroller establishes for each account and in
53	53	amounts the comptroller considers appropriate for each account, may
54	54	acquire, exchange, sell, supervise, manage, or retain any kind of
55	55	investment that a prudent investor exercising reasonable care,
56	56	skill, and caution would acquire, exchange, sell, supervise,
57	57	manage, or retain in light of the purposes, terms, distribution
58	58	requirements, and other circumstances then prevailing for the
59	59	account, taking into consideration the investment of all the assets
60	60	of the account rather than a single investment.
61	61	(c) Section 404.024 does not apply to the investment of the
62	62	assets of an account established under this section.
63	63	Sec. 404.0243. INVESTMENT OBJECTIVES AND PURPOSES OF
64	64	ECONOMIC STABILIZATION FUND ACCOUNTS. (a) The investment
65	65	objectives and purposes of the Texas stabilization account in the
66	66	economic stabilization fund are to preserve:
67	67	(1) the account's principal;
68	68	(2) the purchasing power of the account's principal;
69	69	and
70	70	(3) the liquidity of the account.
71	71	(b) The investment objectives and purposes of the Texas
72	72	legacy account in the economic stabilization fund are to generate
73	73	earnings on the account's principal to:
74	74	(1) maintain the purchasing power of that principal
75	75	and if possible, increase that purchasing power; and
76	76	(2) provide for predictable and stable annual
77	77	earnings.
78	78	SECTION 5. Subchapter E, Chapter 404, Government Code, is
79	79	amended by adding Section 404.074 to read as follows:
80	80	Sec. 404.074. SUFFICIENT BALANCE OF ECONOMIC STABILIZATION
81	81	FUND. (a) For the purpose of making the transfers of money
82	82	required by Section 49-g, Article III, Texas Constitution, the
83	83	amount of the sufficient balance of the economic stabilization fund
84	84	is equal to seven percent of the certified general revenue-related
85	85	appropriations for the state fiscal biennium during which the
86	86	transfers are to be made.
87	87	(b) Except as provided by Subsection (c), the comptroller
88	88	shall allocate and, at the time and in the manner that minimizes
89	89	losses and penalties, adjust the allocation of the economic
90	90	stabilization fund between the Texas stabilization account and the
91	91	Texas legacy account to:
92	92	(1) maintain a balance in the Texas stabilization
93	93	account equal to the sufficient balance of the economic
94	94	stabilization fund; and
95	95	(2) allocate the remainder of the economic
96	96	stabilization fund balance to the Texas legacy account.
97	97	(c) If the legislature appropriates money from the Texas
98	98	stabilization account and, as a result of that appropriation, the
99	99	account balance is less than the sufficient balance of the economic
100	100	stabilization fund, the comptroller may not adjust the allocation
101	101	of the economic stabilization fund balance to allocate an amount to
102	102	the Texas stabilization account to achieve a balance in that
103	103	account equal to the sufficient balance.
104	104	SECTION 6. The following provisions of the Government Code
105	105	are repealed:
106	106	(1) Section 316.091;
107	107	(2) Section 316.092;
108	108	(3) Section 316.093(c); and
109	109	(4) Sections 404.0241(a), (b), and (d).
110	110	SECTION 7. This Act takes effect December 1, 2017.