LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 3, 2013

TO:	Honorable John Davis, Chair, House Committee on Economic & Small Business Development
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB2340 by Parker (Relating to the establishment of the Texas First Investment Fund.), As Introduced

No significant fiscal implication to the State is anticipated.

This bill would create the Texas First Investment Fund as a trust fund outside the state treasury to invest in energy, transportation, water, and other infrastructure, including toll roads, generating revenue in Texas.  The Fund would consist of public and private investment capital invested in exchange for securities issued by the Fund.  The Permanent University Fund, the Permanent School Fund, Teacher Retirement System of Texas, Employee Retirement of Texas, and any other pension system created in the United States would be permitted to invest in the Fund. A five member board, appointed by the governor, would control, oversee, and manage the investment of the Fund.  The board would be authorized to contract with a nonprofit corporation for the management of the investments.

Based on responses from the large Texas endowment and pension funds there would be no significant implication to the state.

The bill would take effect September 1, 2013.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board, 323 Teacher Retirement System, 327 Employees Retirement System, 338 Pension Review Board, 701 Central Education Agency, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration

LBB Staff:

UP, SD, KK, TL