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


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.

Spectrum: Slight Partisan Bill (Republican 35-16)

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

Download: Texas-2019-SB69-Enrolled.html
 
 
  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
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