By: Nichols S.B. No. 2418
A BILL TO BE ENTITLED
AN ACT
relating to the determination of the sufficient balance within the
economic stabilization fund and to the adjustment of allocations of
amounts to be transferred to the economic stabilization fund and
the state highway fund under Section 49-g, Article III, Texas
Constitution.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter H, Chapter 316,
Government Code, is amended to read as follows:
SUBCHAPTER H. ALLOCATION OF TRANSFERS TO [PRESERVATION OF
SUFFICIENT BALANCE IN] ECONOMIC STABILIZATION FUND AND STATE
HIGHWAY FUND
SECTION 2. Sections 316.093(a) and (b), Government Code,
are amended to read as follows:
(a) Before the comptroller makes transfers for a state
fiscal year in accordance with Section 49-g(c), Article III, Texas
Constitution, the comptroller shall determine whether the sum of
the balance of the fund on the preceding August 31, any projected
transfer to the fund under Section 49-g(b) of that article, and any
projected transfer to the fund under Section 49-g(c) of that
article in accordance with the allocations for the transfer as
provided by Section 49-g(c-1) of that article is less than the
sufficient balance adopted under Section 404.074 for that state
fiscal biennium [316.092].
(b) If the sum described by Subsection (a) is less than the
sufficient balance adopted under Section 404.074 for that state
fiscal biennium [316.092], the comptroller shall reduce the
allocation to the state highway fund provided by Section 49-g(c),
Article III, Texas Constitution, and increase the allocation to the
economic stabilization fund, in an equal amount, until the
sufficient balance adopted under Section 404.074 for that state
fiscal biennium would be [316.092 is] achieved by the transfer to
the fund or the total amount of the sum described by Section
49-g(c), Article III, Texas Constitution, is allocated to the fund,
whichever occurs first.
SECTION 3. Section 404.0241(a), Government Code, is amended
to read as follows:
(a) The comptroller shall invest a percentage of the
economic stabilization fund balance in a state fiscal biennium that
exceeds the amount of the sufficient balance of the fund adopted
under Section 404.074 [316.092] for that biennium in accordance
with the investment standard described by Section 404.024(j). The
comptroller's investment of that percentage of the excess balance
is not subject to any other limitation or other requirement
provided by Section 404.024.
SECTION 4. Subchapter E, Chapter 404, Government Code, is
amended by adding Section 404.074 to read as follows:
Sec. 404.074. SUFFICIENT BALANCE OF ECONOMIC STABILIZATION
FUND. For the purpose of adjusting the allocation of transfers in
accordance with Section 49-g(c-2), Article III, Texas
Constitution, not later than December 1 of each even-numbered year,
the comptroller shall determine and adopt for the next state fiscal
biennium the amount of the sufficient balance of the economic
stabilization fund. The amount of the sufficient balance is equal
to six and three quarters percent of the sum of general revenue and
general revenue-dedicated funds appropriated in the most recent
General Appropriations Act.
SECTION 5. The following provisions of the Government Code
are repealed:
(1) Section 316.092;
(2) Sections 316.093(c), (e), and (f); and
(3) Section 404.0241(d).
SECTION 6. Sections 316.093(a) and (b), Government Code, as
amended by this Act, apply only to a transfer and allocation of
money to the economic stabilization fund and state highway fund
under Sections 49-g(c) and (c-1), Article III, Texas Constitution,
made in a state fiscal year beginning on or after September 1, 2021.
A transfer and allocation of money to the economic stabilization
fund and state highway fund under Sections 49-g(c) and (c-1),
Article III, Texas Constitution, made in a state fiscal year
beginning before that date is governed by the law in effect
immediately before the effective date of this Act, and the former
law is continued in effect for that purpose.
SECTION 7. Section 404.0241(a), Government Code, as amended
by this Act, applies only to the investment of economic
stabilization fund money in a state fiscal biennium beginning on or
after September 1, 2021. The investment of economic stabilization
fund money in a state fiscal biennium beginning before that date is
governed by the law in effect immediately before the effective date
of this Act, and the former law is continued in effect for that
purpose.
SECTION 8. This Act takes effect September 1, 2019.