Bill Text: TX HB3258 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the investment of a portion of the economic stabilization fund balance and the dedication of certain interest earned on the fund balance.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2015-03-17 - Referred to Appropriations [HB3258 Detail]

Download: Texas-2015-HB3258-Introduced.html

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By: Meyer H.B. No. 3258

A BILL TO BE ENTITLED
AN ACT
relating to the investment of a portion of the economic
stabilization fund balance and the dedication of certain interest
earned on the fund balance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 404, Government Code, is
amended by adding Section 404.0241 to read as follows:
Sec. 404.0241. INVESTMENT OF CERTAIN ECONOMIC
STABILIZATION FUND BALANCES. (a) For purposes of this section, the
balance of the economic stabilization fund includes all liquid
assets of the fund, all investments of fund money, and all net
earnings and losses on those investments.
(b) The comptroller shall invest a portion of the economic
stabilization fund balance as determined under Subsection (c) or
(d) in accordance with the investment standard described by Section
404.024(j). The comptroller's investment of that balance is not
subject to any other limitation or other requirement provided by
Section 404.024. The expenses of managing the fund shall be paid
from the fund.
(c) Not later than December 1 of each even-numbered year,
the select committee appointed under Section 316.092 shall
determine the portion of the economic stabilization fund balance
that the comptroller is authorized to invest in accordance with
Subsection (b) during the succeeding state fiscal biennium. The
select committee may express the portion as a specific amount or as
a percentage of the fund balance as of one or more prescribed dates.
(d) Notwithstanding Subsection (c), for each state fiscal
biennium beginning with the first state fiscal biennium that begins
after the date Section 316.092 expires, the portion of the economic
stabilization fund balance that the comptroller is required to
invest in accordance with Subsection (b) for a state fiscal
biennium is equal to the amount that is the lesser of:
(1) an amount equal to 50 percent of the economic
stabilization fund balance on the first day of the state fiscal
biennium; or
(2) the amount that would result if the portion of the
fund specified by the select committee for investment in that
manner during the last state fiscal biennium for which the
committee specified a portion were applied.
(e) The comptroller shall adjust the investment portfolio
of economic stabilization fund money periodically or as necessary
to ensure that only the portion of the economic stabilization fund
balance that the comptroller is authorized to invest in accordance
with Subsection (b) is invested in that manner.
SECTION 2. Subchapter E, Chapter 404, Government Code, is
amended by adding Section 404.0711 to read as follows:
Sec. 404.0711. DEDICATION OF CERTAIN INTEREST. (a) This
section applies only to interest otherwise due to the economic
stabilization fund that the comptroller credits to the general
revenue fund as required by Section 49-g(i), Article III, Texas
Constitution.
(b) The comptroller shall credit money to which this section
applies to the following accounts in the general revenue fund:
(1) one-third to an account from which money may be
appropriated only to pay state debt;
(2) one-third to an account from which money may be
appropriated only for graduate medical education programs; and
(3) the remainder to an account from which money may be
appropriated only for the Texas Research Incentive Program (TRIP).
(c) The accounts specified in this section are exempt from
the application of Section 403.095.
SECTION 3. This Act takes effect September 1, 2015.