Bill Text: TX SB69 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to the allocations of money for transfer to the state highway fund and the economic stabilization fund and the investment of money in the economic stabilization fund.

Sponsorship: Broadly Bipartisan Bill

Status: (Passed) 2019-06-14 - Effective on 9/1/19 [SB69 Detail]

Download: Texas-2019-SB69-Enrolled.html

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S.B. No. 69

AN ACT
relating to the allocations of money for transfer to the state
highway fund and the economic stabilization fund and the investment
of money in the economic stabilization fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter H, Chapter 316,
Government Code, is amended to read as follows:
SUBCHAPTER H. ALLOCATION OF TRANSFERS TO [PRESERVATION OF
SUFFICIENT BALANCE IN] ECONOMIC STABILIZATION FUND AND STATE
HIGHWAY FUND
SECTION 2. Sections 316.092 and 316.093, Government Code,
are amended to read as follows:
Sec. 316.092. DETERMINATION OF THRESHOLD FOR
CONSTITUTIONAL TRANSFER TO STATE HIGHWAY [SUFFICIENT] FUND
[BALANCE]. (a) [Not later than September 1 of each even-numbered
year preceding the year in which this section expires as provided by
Subsection (e), the speaker of the house of representatives and the
lieutenant governor shall appoint a select committee as follows:
[(1) the speaker of the house of representatives shall
appoint five members of the house of representatives as members of
the committee; and
[(2) the lieutenant governor shall appoint five
members of the senate as members of the committee.
[(b)] For the purposes of adjusting the allocations of
transfers in accordance with Section 49-g(c-2), Article III, Texas
Constitution, and Section 316.093 for a state fiscal biennium [not
later than December 1 of each even-numbered year preceding the year
in which this section expires as provided by Subsection (e)], the
comptroller [select committee] shall determine and adopt for the
[next] state fiscal biennium an amount equal to seven percent of the
certified general revenue-related appropriations made for that
state fiscal biennium [a sufficient balance of the fund in an amount
that the committee estimates will ensure an appropriate amount of
revenue available in the fund. In determining the sufficient
balance for that fiscal biennium, the committee shall consider:
[(1) the history of fund balances;
[(2) the history of transfers to the fund;
[(3) estimated fund balances during that fiscal
biennium;
[(4) estimated transfers to the fund to occur during
that fiscal biennium;
[(5) information available to the committee regarding
state highway congestion and funding demands; and
[(6) any other information requested by the committee
regarding the state's financial condition].
[(c) On or before October 1 of each even-numbered year
preceding the year in which this section expires as provided by
Subsection (e), the comptroller shall provide to the select
committee the comptroller's projection of the amounts to be
transferred to the fund during the next state fiscal biennium.
[(d) When the select committee has adopted under Subsection
(b) the amount of the sufficient balance of the fund for a state
fiscal biennium, the matter of approving that amount shall be
presented to each house of the legislature in a concurrent
resolution during the next succeeding regular legislative session.
The resolution must be presented for a vote in each house of the
legislature not later than the 30th day of that legislative
session, must be approved by a vote of a majority of the members of
each house, and must be finally approved by each house not later
than the 45th day of that legislative session. If a resolution
finally approved under this subsection is amended during the
legislative process to provide for a different sufficient balance
of the fund than that adopted under Subsection (b), that different
balance is the sufficient balance adopted under this section for
purposes of Section 316.093. If a resolution finally approved
under this subsection does not provide for a different sufficient
balance of the fund or if a resolution is not finally approved as
provided by this subsection, the sufficient balance adopted under
Subsection (b) is the sufficient balance adopted under this section
for purposes of Section 316.093.]
(b) [(e)] This section expires December 31, 2034 [2024].
Sec. 316.093. ADJUSTMENT OF CONSTITUTIONAL ALLOCATIONS TO
FUND AND STATE HIGHWAY FUND. (a) Before the comptroller makes
transfers for a state fiscal year in accordance with Section
49-g(c), Article III, Texas Constitution, the comptroller shall
determine whether the sum of the balance of the fund on the
preceding August 31, any projected transfer to the fund under
Section 49-g(b) of that article, and any projected transfer to the
fund under Section 49-g(c) of that article in accordance with the
allocations for the transfer as provided by Section 49-g(c-1) of
that article is less than the amount determined under [sufficient
balance adopted under] Section 316.092 for that state fiscal
biennium.
(b) If the sum described by Subsection (a) is less than the
amount determined under [sufficient balance adopted under] Section
316.092 for that state fiscal biennium, the comptroller shall
reduce the allocation to the state highway fund provided by Section
49-g(c), Article III, Texas Constitution, and increase the
allocation to the economic stabilization fund, in an equal amount,
until the amount determined under [sufficient balance adopted
under] Section 316.092 for that state fiscal biennium would be [is]
achieved by the transfer to the fund or the total amount of the sum
described by Section 49-g(c), Article III, Texas Constitution, is
allocated to the fund, whichever occurs first.
(c) [If under Section 316.092 a sufficient balance has not
been adopted for the comptroller to consider under this section,
the comptroller shall adjust the allocation of amounts to be
transferred to the fund and to the state highway fund provided by
Section 49-g(c), Article III, Texas Constitution, so that the total
of those amounts is transferred to the economic stabilization fund,
except that the comptroller shall reduce a transfer made under this
subsection as necessary to prevent the amount in the fund from
exceeding the limit in effect for that biennium under Section
49-g(g) of that article.
[(e)] For the purposes of Section 49-g(c-2), Article III,
Texas Constitution, the comptroller shall adjust the allocation
provided by Section 49-g(c-1) of that article of amounts to be
transferred to the fund and to the state highway fund under Section
49-g(c) of that article in a state fiscal year beginning on or after
September 1, 2035 [2025], so that the total of those amounts is
transferred to the economic stabilization fund, except that the
comptroller shall reduce a transfer made under this subsection as
necessary to prevent the amount in the fund from exceeding the limit
in effect for that biennium under Section 49-g(g) of that article.
(d) [(f)] Subsections (a) and[,] (b)[, and (c)] and this
subsection expire December 31, 2034 [2024].
SECTION 3. Section 404.0241, Government Code, is amended to
read as follows:
Sec. 404.0241. INVESTMENT OF CERTAIN ECONOMIC
STABILIZATION FUND BALANCES. (a) Subject to Subsection (b) and
notwithstanding Section 404.024, for the purpose of investing the
assets of the economic stabilization fund, the [The] comptroller
may acquire, exchange, sell, supervise, manage, or retain any kind
of investment that a prudent investor exercising reasonable care,
skill, and caution would acquire, exchange, sell, supervise,
manage, or retain in light of the purposes, terms, distribution
requirements, and other circumstances then prevailing for the fund,
taking into consideration the investment of all the assets of the
fund rather than a single investment [shall invest a percentage of
the economic stabilization fund balance in a state fiscal biennium
that exceeds the amount of the sufficient balance of the fund
adopted under Section 316.092 for that biennium in accordance with
the investment standard described by Section 404.024(j). The
comptroller's investment of that percentage of the excess balance
is not subject to any other limitation or other requirement
provided by Section 404.024].
(b) At least one-quarter of the economic stabilization fund
balance must be invested in a manner that ensures the liquidity of
that amount.
(c) The comptroller may pool assets of the economic
stabilization fund with other state assets for purposes of
investment under Section 404.024(b).
(d) The comptroller shall adjust the investment [portfolio]
of economic stabilization fund money periodically as necessary to
ensure that:
(1) at all times at least one-quarter of the balance of
the economic stabilization fund is invested in a manner that
ensures the liquidity of that amount; and
(2) the balance of the economic stabilization fund is
sufficient to meet the cash flow requirements of the fund.
(e) [(c)] The comptroller shall include the fair market
value of the investments [investment portfolio] of the economic
stabilization fund in calculating the amount in the fund for
purposes of Section 49-g(g), Article III, Texas Constitution, and
Section 316.093 of this code.
[(d) This section expires on the date Section 316.092
expires.]
SECTION 4. Sections 316.093(a) and (b), Government Code, as
amended by this Act, apply only to the allocation of money to the
economic stabilization fund and the state highway fund under
Section 49-g(c-1), Article III, Texas Constitution, beginning with
the state fiscal year beginning September 1, 2021. The allocation
of money to the economic stabilization fund and the state highway
fund under Section 49-g(c-1), Article III, Texas Constitution, for
the state fiscal years beginning September 1, 2019, and September
1, 2020, is governed by Sections 316.093(a) and (b), Government
Code, as those sections existed immediately before the effective
date of this Act, and the former law is continued in effect for that
purpose.
SECTION 5. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 69 passed the Senate on
April 17, 2019, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 24, 2019, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 69 passed the House, with
amendments, on May 21, 2019, by the following vote: Yeas 144,
Nays 0, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor