Texas 2023 - 88th Regular

Texas House Bill HB5227 Compare Versions

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1	1	By: Howard H.B. No. 5227
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the allocation of certain constitutional transfers of
7	7	money to the economic stabilization fund, the Texas legacy fund,
8	8	and the state highway fund and to the management and investment of
9	9	the economic stabilization fund, the Texas legacy fund, and the
10	10	Texas legacy distribution fund.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The heading to Subchapter H, Chapter 316,
13	13	Government Code, is amended to read as follows:
14	14	SUBCHAPTER H. ALLOCATIONS OF CERTAIN CONSTITUTIONAL TRANSFERS OF
15	15	MONEY [ALLOCATION OF TRANSFERS TO ECONOMIC STABILIZATION FUND AND
16	16	STATE HIGHWAY FUND]
17	17	SECTION 2. Section 316.093, Government Code, is amended to
18	18	read as follows:
19	19	Sec. 316.093. ADJUSTMENT OF CONSTITUTIONAL ALLOCATIONS TO
20	20	FUND AND STATE HIGHWAY FUND. (a) Before the comptroller makes
21	21	transfers for a state fiscal year in accordance with Section
22	22	49-g(c), Article III, Texas Constitution, the comptroller shall
23	23	determine whether the sum of the unappropriated balance of the fund
24	24	on the preceding August 31[,] and any projected transfer to the fund
25	25	under Section 49-g(b) of that article[, and any projected transfer
26	26	to the fund under Section 49-g(c) of that article] in accordance
27	27	with the allocations for the transfer as provided by Section
28	28	49-g(b-2) [49-g(c-1)] of that article is less than the sufficient
29	29	balance determined as provided by Section 404.074 [amount
30	30	determined under Section 316.092 for that state fiscal biennium].
31	31	(b) For the purposes of Section 49-g(c-2), Article III,
32	32	Texas Constitution, if [If] the sum described by Subsection (a) is
33	33	less than the amount determined as provided by Section 404.074
34	34	[under Section 316.092] for that state fiscal biennium, the
35	35	comptroller shall reduce the allocation to the Texas legacy [state
36	36	highway] fund provided by Section 49-g(c), Article III, Texas
37	37	Constitution, and increase the allocation to the economic
38	38	stabilization fund, in an [equal] amount equal to the reduction in
39	39	the allocation to the Texas legacy fund, until the sufficient
40	40	balance determined as provided by Section 404.074 is achieved
41	41	[amount determined under Section 316.092 for that state fiscal
42	42	biennium would be achieved by the transfer to the fund or the total
43	43	amount of the sum described by Section 49-g(c), Article III, Texas
44	44	Constitution, is allocated to the fund, whichever occurs first].
45	45	(c) For the purposes of Section 49-g(c-2), Article III,
46	46	Texas Constitution, the comptroller shall adjust the allocation
47	47	provided by Section 49-g(c-1) of that article of amounts to be
48	48	transferred to the fund, to the Texas legacy fund, and to the state
49	49	highway fund under Section 49-g(c) of that article in a state fiscal
50	50	year beginning on or after September 1, 2035, as provided by
51	51	Subsections (c-1), (c-2), and (c-3) of this section [so that the
52	52	total of those amounts is transferred to the economic stabilization
53	53	fund], except that the comptroller shall reduce a transfer made
54	54	under Subsection (c-2) and (c-3) of this section to the economic
55	55	stabilization fund [this subsection] as necessary to prevent the
56	56	amount in the fund from exceeding the limit in effect for that
57	57	biennium under Section 49-g(g), Article III, Texas Constitution [of
58	58	that article].
59	59	(c-1) For a state fiscal year to which Subsection (c)
60	60	applies, if at the time the comptroller makes the transfer under
61	61	Section 49-g(c), Article III, Texas Constitution, the sum described
62	62	by Subsection (a) of this section is equal to or greater than the
63	63	sufficient balance determined as provided by Section 404.074, the
64	64	comptroller shall allocate to the Texas legacy fund the total of the
65	65	amounts required to be transferred as provided by Section 49-g(c),
66	66	Article III, Texas Constitution.
67	67	(c-2) For a state fiscal year to which Subsection (c)
68	68	applies, if at the time the comptroller makes the transfer under
69	69	Section 49-g(c), Article III, Texas Constitution, the sum described
70	70	by Subsection (a) of this section is less than the sufficient
71	71	balance determined as provided by Section 404.074, the comptroller
72	72	shall allocate:
73	73	(1) to the fund an amount equal to the lesser of:
74	74	(A) the amount that, when added to the sum
75	75	described by Subsection (a), is necessary to make the
76	76	unappropriated balance of the fund equal to the sufficient balance;
77	77	and
78	78	(B) the total of the amounts required to be
79	79	transferred as provided by Section 49-g(c), Article III, Texas
80	80	Constitution; and
81	81	(2) to the Texas legacy fund an amount equal to the
82	82	remainder, if any, of the total of the amounts required to be
83	83	transferred as provided by Section 49-g(c), Article III, Texas
84	84	Constitution.
85	85	(c-3) Each time the comptroller, as provided by Section
86	86	49-g(b) or (c), Article III, Texas Constitution, reduces an amount
87	87	of general revenue that otherwise is to be transferred to the
88	88	economic stabilization fund, the comptroller shall allocate to the
89	89	credit of the state debt retirement account an amount of general
90	90	revenue equal to the amount by which the comptroller reduced the
91	91	amount of the transfer to the economic stabilization fund.
92	92	(d) Subsection [Subsections (a) and] (b) and this
93	93	subsection expire December 31, 2034.
94	94	SECTION 3. The heading to Section 404.0241, Government
95	95	Code, is amended to read as follows:
96	96	Sec. 404.0241. COMPUTATION [INVESTMENT] OF [CERTAIN]
97	97	ECONOMIC STABILIZATION FUND BALANCE [BALANCES].
98	98	SECTION 4. Subchapter C, Chapter 404, Government Code, is
99	99	amended by adding Sections 404.02411, 404.02412, 404.02413, and
100	100	404.02414 to read as follows:
101	101	Sec. 404.02411. MANAGEMENT AND INVESTMENT OF ECONOMIC
102	102	STABILIZATION FUND, TEXAS LEGACY FUND, AND TEXAS LEGACY
103	103	DISTRIBUTION FUND. (a) This section applies only to the following
104	104	funds:
105	105	(1) the economic stabilization fund;
106	106	(2) the Texas legacy fund; and
107	107	(3) the Texas legacy distribution fund.
108	108	(b) Notwithstanding Section 404.024, in managing the assets
109	109	of a fund to which this section applies, the comptroller, through
110	110	procedures and subject to restrictions the comptroller establishes
111	111	for each fund and in amounts the comptroller considers appropriate
112	112	for each fund, may acquire, exchange, sell, supervise, manage, or
113	113	retain any kind of investment that a prudent investor exercising
114	114	reasonable care, skill, and caution would acquire, exchange, sell,
115	115	supervise, manage, or retain in light of the purposes, terms,
116	116	distribution requirements, and other circumstances then prevailing
117	117	for the fund, taking into consideration the investment of all the
118	118	assets of the fund rather than a single investment.
119	119	(c) The comptroller may pool assets of a fund to which this
120	120	section applies with other state funds for purposes of investment
121	121	under Section 404.024(b).
122	122	Sec. 404.02412. INVESTMENT OBJECTIVES AND PURPOSES OF
123	123	ECONOMIC STABILIZATION FUND. The investment objectives and
124	124	purposes of the economic stabilization fund are to preserve:
125	125	(1) the fund's principal;
126	126	(2) the purchasing power of the fund's principal; and
127	127	(3) the liquidity of the fund.
128	128	Sec. 404.02413. INVESTMENT OBJECTIVES AND PURPOSES OF TEXAS
129	129	LEGACY FUND. The investment objectives and purposes of the Texas
130	130	legacy fund are to generate earnings on the fund's principal to:
131	131	(1) maintain the purchasing power of that principal
132	132	and if possible, increase that purchasing power; and
133	133	(2) provide for predictable and stable annual earnings
134	134	transfers to the Texas legacy distribution fund.
135	135	Sec. 404.02414. INVESTMENT OBJECTIVE AND PURPOSE OF TEXAS
136	136	LEGACY DISTRIBUTION FUND. The investment objective and purpose of
137	137	the Texas legacy distribution fund is to maintain sufficient
138	138	liquidity to meet the needs of the fund.
139	139	SECTION 5. Subchapter E, Chapter 404, Government Code, is
140	140	amended by adding Section 404.074 to read as follows:
141	141	Sec. 404.074. SUFFICIENT BALANCE OF ECONOMIC STABILIZATION
142	142	FUND. For the purpose of making the transfers of money required by
143	143	Section 49-g, Article III, Texas Constitution, on or after the
144	144	first day but before the 90th day of a state fiscal year, the
145	145	comptroller shall determine for that fiscal year the amount of the
146	146	sufficient balance of the economic stabilization fund. The amount
147	147	of the sufficient balance is equal to seven percent of the certified
148	148	general revenue-related appropriations for the state fiscal
149	149	biennium during which the determination is made.
150	150	SECTION 6. The following provisions of the Government Code
151	151	are repealed:
152	152	(1) Section 316.092; and
153	153	(2) Sections 404.0241(a), (b), and (d).
154	154	SECTION 7. This Act takes effect January 1, 2024, but only
155	155	if the constitutional amendment providing for the creation of the
156	156	Texas legacy fund and the Texas legacy distribution fund,
157	157	dedicating the Texas legacy distribution fund to certain state
158	158	infrastructure projects or the reduction of certain long-term
159	159	obligations, and providing for the transfer of certain general
160	160	revenues to the economic stabilization fund, the Texas legacy fund,
161	161	and the state highway fund is approved by the voters. If that
162	162	amendment is not approved by the voters, this Act has no effect.