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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of certain constitutional transfers of |
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money to the economic stabilization fund, the Texas legacy fund, |
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and the state highway fund and to the management and investment of |
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the economic stabilization fund, the Texas legacy fund, and the |
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Texas legacy distribution fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter H, Chapter 316, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER H. ALLOCATIONS OF CERTAIN CONSTITUTIONAL TRANSFERS OF |
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MONEY [ALLOCATION OF TRANSFERS TO ECONOMIC STABILIZATION FUND AND |
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STATE HIGHWAY FUND] |
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SECTION 2. Section 316.093, Government Code, is amended to |
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read as follows: |
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Sec. 316.093. ADJUSTMENT OF CONSTITUTIONAL ALLOCATIONS TO |
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FUND AND STATE HIGHWAY FUND. (a) Before the comptroller makes |
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transfers for a state fiscal year in accordance with Section |
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49-g(c), Article III, Texas Constitution, the comptroller shall |
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determine whether the sum of the unappropriated balance of the fund |
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on the preceding August 31[,] and any projected transfer to the fund |
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under Section 49-g(b) of that article[, and any projected transfer |
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to the fund under Section 49-g(c) of that article] in accordance |
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with the allocations for the transfer as provided by Section |
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49-g(b-2) [49-g(c-1)] of that article is less than the sufficient |
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balance determined as provided by Section 404.074 [amount |
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determined under Section 316.092 for that state fiscal biennium]. |
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(b) For the purposes of Section 49-g(c-2), Article III, |
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Texas Constitution, if [If] the sum described by Subsection (a) is |
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less than the amount determined as provided by Section 404.074 |
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[under Section 316.092] for that state fiscal biennium, the |
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comptroller shall reduce the allocation to the Texas legacy [state |
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highway] fund provided by Section 49-g(c), Article III, Texas |
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Constitution, and increase the allocation to the economic |
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stabilization fund, in an [equal] amount equal to the reduction in |
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the allocation to the Texas legacy fund, until the sufficient |
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balance determined as provided by Section 404.074 is achieved |
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[amount determined under Section 316.092 for that state fiscal |
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biennium would be achieved by the transfer to the fund or the total |
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amount of the sum described by Section 49-g(c), Article III, Texas |
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Constitution, is allocated to the fund, whichever occurs first]. |
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(c) For the purposes of Section 49-g(c-2), Article III, |
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Texas Constitution, the comptroller shall adjust the allocation |
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provided by Section 49-g(c-1) of that article of amounts to be |
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transferred to the fund, to the Texas legacy fund, and to the state |
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highway fund under Section 49-g(c) of that article in a state fiscal |
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year beginning on or after September 1, 2035, as provided by |
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Subsections (c-1), (c-2), and (c-3) of this section [so that the |
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total of those amounts is transferred to the economic stabilization |
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fund], except that the comptroller shall reduce a transfer made |
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under Subsection (c-2) and (c-3) of this section to the economic |
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stabilization fund [this subsection] as necessary to prevent the |
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amount in the fund from exceeding the limit in effect for that |
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biennium under Section 49-g(g), Article III, Texas Constitution [of |
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that article]. |
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(c-1) For a state fiscal year to which Subsection (c) |
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applies, if at the time the comptroller makes the transfer under |
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Section 49-g(c), Article III, Texas Constitution, the sum described |
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by Subsection (a) of this section is equal to or greater than the |
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sufficient balance determined as provided by Section 404.074, the |
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comptroller shall allocate to the Texas legacy fund the total of the |
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amounts required to be transferred as provided by Section 49-g(c), |
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Article III, Texas Constitution. |
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(c-2) For a state fiscal year to which Subsection (c) |
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applies, if at the time the comptroller makes the transfer under |
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Section 49-g(c), Article III, Texas Constitution, the sum described |
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by Subsection (a) of this section is less than the sufficient |
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balance determined as provided by Section 404.074, the comptroller |
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shall allocate: |
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(1) to the fund an amount equal to the lesser of: |
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(A) the amount that, when added to the sum |
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described by Subsection (a), is necessary to make the |
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unappropriated balance of the fund equal to the sufficient balance; |
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and |
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(B) the total of the amounts required to be |
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transferred as provided by Section 49-g(c), Article III, Texas |
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Constitution; and |
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(2) to the Texas legacy fund an amount equal to the |
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remainder, if any, of the total of the amounts required to be |
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transferred as provided by Section 49-g(c), Article III, Texas |
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Constitution. |
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(c-3) Each time the comptroller, as provided by Section |
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49-g(b) or (c), Article III, Texas Constitution, reduces an amount |
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of general revenue that otherwise is to be transferred to the |
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economic stabilization fund, the comptroller shall allocate to the |
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credit of the state debt retirement account an amount of general |
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revenue equal to the amount by which the comptroller reduced the |
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amount of the transfer to the economic stabilization fund. |
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(d) Subsection [Subsections (a) and] (b) and this |
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subsection expire December 31, 2034. |
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SECTION 3. The heading to Section 404.0241, Government |
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Code, is amended to read as follows: |
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Sec. 404.0241. COMPUTATION [INVESTMENT] OF [CERTAIN] |
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ECONOMIC STABILIZATION FUND BALANCE [BALANCES]. |
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SECTION 4. Subchapter C, Chapter 404, Government Code, is |
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amended by adding Sections 404.02411, 404.02412, 404.02413, and |
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404.02414 to read as follows: |
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Sec. 404.02411. MANAGEMENT AND INVESTMENT OF ECONOMIC |
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STABILIZATION FUND, TEXAS LEGACY FUND, AND TEXAS LEGACY |
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DISTRIBUTION FUND. (a) This section applies only to the following |
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funds: |
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(1) the economic stabilization fund; |
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(2) the Texas legacy fund; and |
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(3) the Texas legacy distribution fund. |
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(b) Notwithstanding Section 404.024, in managing the assets |
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of a fund to which this section applies, the comptroller, through |
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procedures and subject to restrictions the comptroller establishes |
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for each fund and in amounts the comptroller considers appropriate |
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for each fund, may acquire, exchange, sell, supervise, manage, or |
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retain any kind of investment that a prudent investor exercising |
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reasonable care, skill, and caution would acquire, exchange, sell, |
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supervise, manage, or retain in light of the purposes, terms, |
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distribution requirements, and other circumstances then prevailing |
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for the fund, taking into consideration the investment of all the |
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assets of the fund rather than a single investment. |
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(c) The comptroller may pool assets of a fund to which this |
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section applies with other state funds for purposes of investment |
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under Section 404.024(b). |
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Sec. 404.02412. INVESTMENT OBJECTIVES AND PURPOSES OF |
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ECONOMIC STABILIZATION FUND. The investment objectives and |
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purposes of the economic stabilization fund are to preserve: |
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(1) the fund's principal; |
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(2) the purchasing power of the fund's principal; and |
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(3) the liquidity of the fund. |
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Sec. 404.02413. INVESTMENT OBJECTIVES AND PURPOSES OF TEXAS |
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LEGACY FUND. The investment objectives and purposes of the Texas |
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legacy fund are to generate earnings on the fund's principal to: |
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(1) maintain the purchasing power of that principal |
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and if possible, increase that purchasing power; and |
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(2) provide for predictable and stable annual earnings |
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transfers to the Texas legacy distribution fund. |
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Sec. 404.02414. INVESTMENT OBJECTIVE AND PURPOSE OF TEXAS |
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LEGACY DISTRIBUTION FUND. The investment objective and purpose of |
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the Texas legacy distribution fund is to maintain sufficient |
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liquidity to meet the needs of the fund. |
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SECTION 5. Subchapter E, Chapter 404, Government Code, is |
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amended by adding Section 404.074 to read as follows: |
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Sec. 404.074. SUFFICIENT BALANCE OF ECONOMIC STABILIZATION |
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FUND. For the purpose of making the transfers of money required by |
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Section 49-g, Article III, Texas Constitution, on or after the |
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first day but before the 90th day of a state fiscal year, the |
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comptroller shall determine for that fiscal year the amount of the |
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sufficient balance of the economic stabilization fund. The amount |
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of the sufficient balance is equal to seven percent of the certified |
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general revenue-related appropriations for the state fiscal |
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biennium during which the determination is made. |
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SECTION 6. The following provisions of the Government Code |
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are repealed: |
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(1) Section 316.092; and |
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(2) Sections 404.0241(a), (b), and (d). |
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SECTION 7. This Act takes effect January 1, 2024, but only |
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if the constitutional amendment providing for the creation of the |
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Texas legacy fund and the Texas legacy distribution fund, |
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dedicating the Texas legacy distribution fund to certain state |
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infrastructure projects or the reduction of certain long-term |
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obligations, and providing for the transfer of certain general |
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revenues to the economic stabilization fund, the Texas legacy fund, |
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and the state highway fund is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |