By: Huffman S.B. No. 1333
(In the Senate - Filed March 1, 2023; March 16, 2023, read
first time and referred to Committee on Finance; March 31, 2023,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 17, Nays 0; March 31, 2023, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1333 By: Huffman
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Texas state buildings preservation
endowment fund, including the transfer to the fund of the
unencumbered balances of certain other funds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 443.0102(b), Government Code, is amended
to read as follows:
(b) The Capitol fund created by Section 443.0101 and the
Texas state buildings preservation endowment fund created by
Section 443.0103 are [is] not subject to Subchapter F, Chapter 404.
A provision of this chapter or other law that provides for the
deposit of money or another thing of value into the Capitol fund or
the Texas state buildings preservation endowment fund prevails over
Subchapter F, Chapter 404.
SECTION 2. Section 443.0103, Government Code, is amended to
read as follows:
Sec. 443.0103. TEXAS STATE BUILDINGS PRESERVATION
ENDOWMENT [CAPITAL RENEWAL TRUST] FUND. (a) In this section:
(1) "Fund" means the Texas state buildings
preservation endowment fund.
(2) "Trust company" means the Texas Treasury
Safekeeping Trust Company.
(b) The Texas state buildings preservation endowment
[capital renewal trust] fund is created as a [trust] fund outside
the treasury. The purpose of the fund is to maintain, preserve,
rehabilitate, and restore the state buildings and grounds over
which the board has jurisdiction [with the comptroller and shall be
administered by the board, as a trustee on behalf of the people of
this state, to maintain and preserve the Capitol, the General Land
Office Building, their contents, and their grounds].
(c) The fund consists of:
(1) money transferred or appropriated to the fund by[:
[(1) at the direction of] the legislature, including
money transferred to the fund from the former capital renewal trust
fund, Governor's Mansion renewal trust fund, and State Cemetery
preservation trust fund; [or]
(2) gifts, grants, and donations contributed to the
fund for a purpose for which money in the fund may be used under [in
accordance with] this section; and
(3) any returns received from the investment of money
in the fund.
(d) The trust company shall hold, manage, and invest the
fund, and shall determine the amount available for distribution
from the fund each year in accordance with a distribution policy
adopted by the comptroller. The distribution policy must be
designed to preserve the purchasing power of the assets of the fund,
provide a stable and predictable series of annual distributions
from the fund, and meet the liquidity needs of the fund as
necessary. The expenses of managing the fund and its assets shall
be paid from the fund. Except as otherwise provided by this
section, money [(b) Money] in the fund may not be used [only] for
any other [the] purpose.
(e) In managing the assets of the fund, through procedures
and subject to restrictions the trust company considers
appropriate, the trust company may acquire, exchange, sell,
supervise, manage, or retain any kind of investment that a prudent
investor, exercising reasonable care, skill, and caution, would
acquire or retain in light of the purposes, terms, distribution
requirements, and other circumstances of the fund then prevailing,
taking into consideration the investment of all the assets of the
fund rather than a single investment. At the request of the trust
company, the board shall provide the trust company with information
the trust company determines is necessary to ensure that the trust
company is able to achieve the objectives specified by Subsection
(d).
(f) The board annually may request a distribution from the
fund in an amount that may not exceed the amount the trust company
determines is available for distribution in the applicable year
under Subsection (d). Money distributed from the fund to the board
may be used only for the purpose of maintaining, [and] preserving,
rehabilitating, and restoring the buildings [the Capitol, the
General Land Office Building, their contents,] and [their] grounds
over which the board has jurisdiction. The board shall allocate to
projects at the Bob Bullock Texas State History Museum an amount
equal to at least one-third of each annual distribution from the
fund under this subsection, other than the portion of the
distribution made using money transferred to the fund from the
former capital renewal trust fund, Governor's Mansion renewal trust
fund, and State Cemetery preservation trust fund. The board, with
the written approval of the Legislative Budget Board, may use money
received from an annual distribution under this subsection to
acquire land in close proximity to the State Cemetery for expansion
of the cemetery. The board may not use money received from an
annual distribution under this subsection to pay salaries, employee
benefits, costs associated with employee benefits, or
administration, operating, or program costs of the board or the
buildings and grounds over which the board has jurisdiction.
(g) Subject to Subsection (h) and not more frequently than
once each calendar year, the board may request an additional
distribution from the fund in an amount that exceeds the amount the
trust company determines is available for distribution from the
fund in that year under Subsection (d). An additional distribution
under this subsection may be used for a purpose described by
Subsection (f). The trust company may not make an additional
distribution under this subsection if the distribution would
negatively affect the purchasing power of the assets of the fund as
determined by the terms of the distribution policy adopted by the
comptroller under Subsection (d).
(h) The board may receive an additional distribution from
the fund under Subsection (g) only after the board certifies to the
Legislative Budget Board that:
(1) the board has reviewed and approved the use of the
money;
(2) all purchases made with the money will conform to
any applicable provision of law governing state procurement and
contracting; and
(3) the money will not be used to:
(A) pay salaries, employee benefits, costs
associated with employee benefits, or administration, operating,
or program costs of the board or the buildings and grounds over
which the board has jurisdiction;
(B) except as provided by Subsection (f), acquire
new historic sites or real property; or
(C) purchase capital equipment that is not
related to the rehabilitation or restoration of a building or
grounds.
(i) All expenditures by the board under this section are
subject to audit by the state auditor.
(j) The board shall include in the strategic plan submitted
under Section 2056.002 a report on each project funded using money
in the fund during the two-year period preceding the date on which
the board submits the plan and a list of each project the board
anticipates will be funded using money in the fund for the period
covered by the plan.
[(c) The interest received from investment of money in the
fund shall be credited to the fund.
[(d) The board may transfer money from any account of the
Capitol fund to the capital renewal trust fund, other than money
that was donated to the board, derived from a security or other
thing of value donated to the board, or earned as interest or other
income on a donation to the board, if the board determines that
after the transfer there will be a sufficient amount of money in the
applicable account of the Capitol fund to accomplish the purposes
for which the account was created.
[(e) The board may transfer money from the capital renewal
trust fund to any account of the Capitol fund, provided that money
transferred shall only be used for the purposes outlined in
Subsection (b).]
SECTION 3. Effective September 1, 2024, the following
provisions of the Government Code are repealed:
(1) Section 443.0295;
(2) Section 2165.2565, as added by Chapter 72 (S.B.
574), Acts of the 84th Legislature, Regular Session, 2015; and
(3) Section 2165.2565, as added by Chapter 932 (H.B.
2206), Acts of the 84th Legislature, Regular Session, 2015.
SECTION 4. On September 1, 2024, the Governor's Mansion
renewal trust fund and the State Cemetery preservation trust fund
are abolished and the unencumbered balances of those funds are
transferred to the comptroller of public accounts for deposit in
the Texas state buildings preservation endowment fund created under
Section 443.0103, Government Code, as amended by this Act. Money
transferred under this section is available for expenditure in the
manner prescribed by Section 443.0103, Government Code, as amended
by this Act, except that the requirement that one-third of the
amount spent be used as required by Subsection (f) of that section
does not apply to money transferred under this section.
SECTION 5. On September 1, 2024, the unencumbered balance
of the capital renewal trust fund is transferred to the comptroller
of public accounts for deposit in the Texas state buildings
preservation endowment fund created under Section 443.0103,
Government Code, as amended by this Act. Money transferred under
this section is available for expenditure in the manner prescribed
by Section 443.0103, Government Code, as amended by this Act,
except that the requirement that one-third of the amount spent be
used as required by Subsection (f) of that section does not apply to
money transferred under this section.
SECTION 6. Except as otherwise provided by this Act, this
Act takes effect September 1, 2023.
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