LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 16, 2023 TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2146 by Parker (Relating to oversight by the comptroller of financial institution divestments from certain industries.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Subchapter B, Chapter 403, Government Code, directing the Comptroller to require financial institutions that operate a mutual fund to periodically submit a statement to the Comptroller stating whether the institution has divested or intends to divest from mutual fund investments in a company that engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossilfuel based energy. The bill would require the Comptroller to adopt rules to implement the bill, including providing a penalty for financial institutions that fail to submit the required statement.According to the Comptroller, there would administrative costs to implement the bill's provisions. This analysis assumes the costs could be absorbed within existing resources.Additionally, there would be an indeterminate, and offsetting revenue gain associated with penalties imposed on noncompliant financial institutions. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, SMAT, LCO, CSmi, NV
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 16, 2023
TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2146 by Parker (Relating to oversight by the comptroller of financial institution divestments from certain industries.), As Introduced
TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB2146 by Parker (Relating to oversight by the comptroller of financial institution divestments from certain industries.), As Introduced
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB2146 by Parker (Relating to oversight by the comptroller of financial institution divestments from certain industries.), As Introduced
SB2146 by Parker (Relating to oversight by the comptroller of financial institution divestments from certain industries.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Subchapter B, Chapter 403, Government Code, directing the Comptroller to require financial institutions that operate a mutual fund to periodically submit a statement to the Comptroller stating whether the institution has divested or intends to divest from mutual fund investments in a company that engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossilfuel based energy. The bill would require the Comptroller to adopt rules to implement the bill, including providing a penalty for financial institutions that fail to submit the required statement.According to the Comptroller, there would administrative costs to implement the bill's provisions. This analysis assumes the costs could be absorbed within existing resources.Additionally, there would be an indeterminate, and offsetting revenue gain associated with penalties imposed on noncompliant financial institutions.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, SMAT, LCO, CSmi, NV
JMc, SMAT, LCO, CSmi, NV