Relating to the creation of the Texas future fund and the Texas future fund investment review board and to the permissible uses of money in the Texas future fund.
Impact
If enacted, HB 104 would significantly alter the state's investment landscape by centralizing oversight of strategic economic investments under a newly formed board. This includes establishing procedures for investment due diligence and a comprehensive reporting system that mandates annual performance evaluations of the fund's impact on Texas's economy. The legislation seeks to enhance accountability and transparency over state investments and aims to fortify the state's leadership in fostering technological advancement.
Summary
House Bill 104 establishes the Texas Future Fund, aiming to bolster the state's economy by authorizing investments in critical sectors, particularly those related to innovative technologies and national defense. The legislation outlines the creation of a board, the Texas Future Fund Investment Review Board, which will oversee the fund and make investment decisions based on defined criteria including prioritizing local entities that expand employment opportunities in Texas. The initial balance of the fund is set at $500 million, taken from the economic stabilization fund.
Sentiment
Reactions to HB 104 have been largely supportive among stakeholders focusing on economic growth and technological advancement, who view the Future Fund as a crucial vehicle for attracting innovative enterprises and improving job opportunities within Texas. However, there are concerns around the implications of using public funds for private investments and the extent of oversight over the board's decision-making processes, which could lead to debates regarding fiscal responsibility and prioritization of state resources.
Contention
Notable points of contention include the conditions under which investments are made, with explicit prohibitions on discrimination based on race, gender, or other identity factors. There is also apprehension regarding accountability and potential conflicts of interest, as board members must navigate ethical standards while making investment choices. The balance between fostering economic development and ensuring responsible public fund management may continue to fuel discussions among lawmakers and advocacy groups.
Texas Constitutional Statutes Affected
Government Code
Chapter 403. Comptroller Of Public Accounts
Section: New Section
Section: New Section
Chapter 404. State Treasury Operations Of Comptroller
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.
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.
Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, and the Grow Texas fund and to the permissible uses of money deposited to the Grow Texas fund.
Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the Texas legacy fund, and the state highway fund and to the management and investment of the economic stabilization fund, the Texas legacy fund, and the Texas legacy distribution fund.
Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, the oil and gas regulation and cleanup account, the Texas emissions reduction plan fund, the property tax relief fund, and the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund and to the permissible uses of money deposited to the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund.
Relating to the establishment of the Texas Energy Insurance Program and other funding mechanisms to support the construction and operation of electric generating facilities.
Relating to the administration and investment of, and distribution and use of money from, certain constitutional and statutory funds to support general academic teaching institutions in achieving national prominence as major research universities and driving the state economy; redesignating the national research university fund as the Texas University Fund.
Relating to the transfer of the regulation of property tax professionals from the Texas Department of Licensing and Regulation to the comptroller of public accounts; providing civil and administrative penalties.
Relating to the abolishment of the Texas Council on Purchasing from People with Disabilities and the transfer of its functions to the Texas Workforce Commission.
Relating to the abolishment of the Texas Council on Purchasing from People with Disabilities and the transfer of its functions to the comptroller of public accounts.
Relating to a Pan American Games trust fund, an Olympic Games trust fund, a Major Events trust fund, a Motor Sports Racing trust fund, and an Events trust fund for sporting and non-sporting events, and to the abolishment of the special event trust fund.