LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 23, 2001
TO: Honorable Steven Wolens, Chair, House Committee on State
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2523 by Wilson (Relating to the powers and duties of
the State Investment Commission.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2523, As Introduced: negative impact of $(200,000) through the *
* biennium ending August 31, 2003. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(100,000) *
* 2003 (100,000) *
* 2004 (100,000) *
* 2005 (100,000) *
* 2006 (100,000) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(100,000) 1.0 *
* 2003 (100,000) 1.0 *
* 2004 (100,000) 1.0 *
* 2005 (100,000) 1.0 *
* 2006 (100,000) 1.0 *
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Fiscal Analysis
The bill would amend the Government Code by adding Chapter 2262 to create
the State Investment Commission (SIC). The SIC would consist of six
commissioners appointed by the Governor with the advice and consent of
the Senate. To be eligible for appointment, a person would have to be an
investment professional or have extensive experience in the investment
of public money.
The SIC would have full authority, notwithstanding any other law, to
manage or direct the investment of all money held, in trust or otherwise,
by the state or by a state agency or official. The SIC would be
empowered to review investment rules, policies, and guidelines of state
agencies and officials and would be allowed to order changes to a rule,
policy, or guideline that did not meet the SIC's approval.
SIC would be required to employ a general manager to direct the daily
affairs.
The bill would take effect on the date the constitutional amendment
proposed by the 77th Legislature, Regular Session, 2001, providing for
the establishment of the State Investment Commission takes effect. If
the proposed constitutional amendment were not approved by the voters,
the bill would have no effect and no costs.
Methodology
Since provisions of the bill does not require reimbursement for SIC
members, this fiscal note does not identify any costs for it. The note
does take into consideration the general manager's salary and benefits
at $100,000 per year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, RB, RT, DE