Texas 2019 - 86th Regular

Texas House Bill HB20 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		86R25660 KJE-D
2	2		By: Capriglione, Zerwas, Longoria, Howard, H.B. No. 20
3	3		Bonnen of Galveston, et al.
	4	+	Substitute the following for H.B. No. 20:
	5	+	By: Longoria C.S.H.B. No. 20
4	6
5	7
6	8		A BILL TO BE ENTITLED
7	9		AN ACT
8	10		relating to the allocation of certain constitutional transfers of
9	11		money to the economic stabilization fund, the Texas legacy fund,
10	12		and the state highway fund and to the management and investment of
11	13		the economic stabilization fund, the Texas legacy fund, and the
12	14		Texas legacy distribution fund.
13	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	16		SECTION 1. The heading to Subchapter H, Chapter 316,
15	17		Government Code, is amended to read as follows:
16	18		SUBCHAPTER H. ALLOCATIONS OF CERTAIN CONSTITUTIONAL TRANSFERS OF
17	19		MONEY [PRESERVATION OF SUFFICIENT BALANCE IN ECONOMIC
18	20		STABILIZATION FUND]
19	21		SECTION 2. Section 316.093, Government Code, is amended by
20	22		amending Subsections (a), (b), (e), and (f) and adding Subsections
21	23		(e-1) and (e-2) to read as follows:
22	24		(a) Before the comptroller makes transfers for a state
23	25		fiscal year in accordance with Section 49-g(c), Article III, Texas
24	26		Constitution, the comptroller shall determine whether the sum of
25	27		the unappropriated balance of the fund on the preceding August 31
26	28		and[,] any projected transfer to the fund under Section 49-g(b) of
27	29		that article[, and any projected transfer to the fund under Section
28	30		49-g(c) of that article] in accordance with the allocations for the
29	31		transfer as provided by Section 49-g(b-2) [49-g(c-1)] of that
30	32		article is less than the sufficient balance determined as provided
31	33		by [adopted under] Section 404.074 [316.092].
32	34		(b) For the purposes of Section 49-g(c-2), Article III,
33	35		Texas Constitution, if [If] the sum described by Subsection (a) is
34	36		less than the sufficient balance determined as provided by [adopted
35	37		under] Section 404.074 [316.092], the comptroller shall reduce the
36	38		allocation to the Texas legacy [state highway] fund provided by
37	39		Section 49-g(c), Article III, Texas Constitution, and increase the
38	40		allocation to the economic stabilization fund, in an [equal] amount
39	41		equal to the reduction in the allocation to the Texas legacy fund,
40	42		until the sufficient balance determined as provided by [adopted
41	43		under] Section 404.074 [316.092] is achieved.
42	44		(e) For the purposes of Section 49-g(c-2), Article III,
43	45		Texas Constitution, the comptroller shall adjust the allocation
44	46		provided by Section 49-g(c-1) of that article of amounts to be
45	47		transferred to the fund, the Texas legacy fund, and [to] the state
46	48		highway fund under Section 49-g(c) of that article in a state fiscal
47	49		year beginning on or after September 1, 2025, as provided by
48	50		Subsections (e-1) and (e-2) of this section [so that the total of
49	51		those amounts is transferred to the economic stabilization fund],
50	52		except that the comptroller shall reduce a transfer made under
51	53		Subsection (e-2) of this section to the economic stabilization fund
52	54		[this subsection] as necessary to prevent the amount in the fund
53	55		from exceeding the limit in effect for that biennium under Section
54	56		49-g(g), Article III, Texas Constitution [of that article].
55	57		(e-1) For a state fiscal year to which Subsection (e)
56	58		applies, if at the time the comptroller makes the transfer under
57	59		Section 49-g(c), Article III, Texas Constitution, the sum described
58	60		by Subsection (a) of this section is equal to or greater than the
59	61		sufficient balance determined as provided by Section 404.074, the
60	62		comptroller shall allocate to the Texas legacy fund the total of the
61	63		amounts required to be transferred as provided by Section 49-g(c),
62	64		Article III, Texas Constitution.
63	65		(e-2) For a state fiscal year to which Subsection (e)
64	66		applies, if at the time the comptroller makes the transfer under
65	67		Section 49-g(c), Article III, Texas Constitution, the sum described
66	68		by Subsection (a) of this section is less than the sufficient
67	69		balance determined as provided by Section 404.074, the comptroller
68	70		shall allocate:
69	71		(1) to the fund an amount equal to the lesser of:
70	72		(A) the amount that, when added to the sum
71	73		described by Subsection (a), is necessary to make the
72	74		unappropriated balance of the fund equal to the sufficient balance;
73	75		and
74	76		(B) the total of the amounts required to be
75	77		transferred as provided by Section 49-g(c), Article III, Texas
76	78		Constitution; and
77	79		(2) to the Texas legacy fund an amount equal to the
78	80		remainder, if any, of the total of the amounts required to be
79	81		transferred as provided by Section 49-g(c), Article III, Texas
80	82		Constitution.
81	83		(f) Subsection [Subsections (a),] (b)[, and (c)] and this
82	84		subsection expire December 31, 2024.
83	85		SECTION 3. The heading to Section 404.0241, Government
84	86		Code, is amended to read as follows:
85	87		Sec. 404.0241. COMPUTATION [INVESTMENT] OF [CERTAIN]
86	88		ECONOMIC STABILIZATION FUND BALANCE [BALANCES].
87	89		SECTION 4. Subchapter C, Chapter 404, Government Code, is
88	90		amended by adding Sections 404.02411, 404.02412, 404.02413, and
89	91		404.02414 to read as follows:
90	92		Sec. 404.02411. MANAGEMENT AND INVESTMENT OF ECONOMIC
91	93		STABILIZATION FUND, TEXAS LEGACY FUND, AND TEXAS LEGACY
92	94		DISTRIBUTION FUND. (a) This section applies only to the following
93	95		funds:
94	96		(1) the economic stabilization fund;
95	97		(2) the Texas legacy fund; and
96	98		(3) the Texas legacy distribution fund.
97	99		(b) Notwithstanding Section 404.024, in managing the assets
98	100		of a fund to which this section applies, the comptroller, through
99	101		procedures and subject to restrictions the comptroller establishes
100	102		for each fund and in amounts the comptroller considers appropriate
101	103		for each fund, may acquire, exchange, sell, supervise, manage, or
102	104		retain any kind of investment that a prudent investor exercising
103	105		reasonable care, skill, and caution would acquire, exchange, sell,
104	106		supervise, manage, or retain in light of the purposes, terms,
105	107		distribution requirements, and other circumstances then prevailing
106	108		for the fund, taking into consideration the investment of all the
107	109		assets of the fund rather than a single investment.
108	110		(c) The comptroller may pool assets of a fund to which this
109	111		section applies with other state funds for purposes of investment
110	112		under Section 404.024(b).
111	113		Sec. 404.02412. INVESTMENT OBJECTIVES AND PURPOSES OF
112	114		ECONOMIC STABILIZATION FUND. The investment objectives and
113	115		purposes of the economic stabilization fund are to preserve:
114	116		(1) the fund's principal;
115	117		(2) the purchasing power of the fund's principal; and
116	118		(3) the liquidity of the fund.
117	119		Sec. 404.02413. INVESTMENT OBJECTIVES AND PURPOSES OF TEXAS
118	120		LEGACY FUND. The investment objectives and purposes of the Texas
119	121		legacy fund are to generate earnings on the fund's principal to:
120	122		(1) maintain the purchasing power of that principal
121	123		and if possible, increase that purchasing power; and
122	124		(2) provide for predictable and stable annual earnings
123	125		transfers to the Texas legacy distribution fund.
124	126		Sec. 404.02414. INVESTMENT OBJECTIVE AND PURPOSE OF TEXAS
125	127		LEGACY DISTRIBUTION FUND. The investment objective and purpose of
126	128		the Texas legacy distribution fund is to maintain sufficient
127	129		liquidity to meet the needs of the fund.
128	130		SECTION 5. Subchapter E, Chapter 404, Government Code, is
129	131		amended by adding Section 404.074 to read as follows:
130	132		Sec. 404.074. SUFFICIENT BALANCE OF ECONOMIC STABILIZATION
131	133		FUND. For the purpose of making the transfers of money required by
132	134		Section 49-g, Article III, Texas Constitution, on or after the
133	135		first day but before the 90th day of a state fiscal year, the
134	136		comptroller shall determine for that fiscal year the amount of the
135	137		sufficient balance of the economic stabilization fund. The amount
136	138		of the sufficient balance is equal to seven percent of the certified
137	139		general revenue-related appropriations for the state fiscal
138	140		biennium during which the determination is made.
139	141		SECTION 6. The following provisions of the Government Code
140	142		are repealed:
141	143		(1) Section 316.092;
142	144		(2) Section 316.093(c); and
143	145		(3) Sections 404.0241(a), (b), and (d).
144	146		SECTION 7. This Act takes effect January 1, 2020, but only
145	147		if the constitutional amendment providing for the creation of the
146	148		Texas legacy fund and the Texas legacy distribution fund,
147	149		dedicating the Texas legacy distribution fund to certain state
148	150		infrastructure projects or the reduction of certain long-term
149	151		obligations, and providing for the transfer of certain general
150	152		revenues to the economic stabilization fund, the Texas legacy fund,
151	153		and the state highway fund, proposed by H.J.R. No. 10, 86th
152	154		Legislature, Regular Session, 2019, is approved by the voters. If
153	155		that amendment is not approved by the voters, this Act has no
154	156		effect.