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A BILL TO BE ENTITLED
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AN ACT
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relating to the management and investment of the economic |
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stabilization fund and the Texas legacy distribution fund, |
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including the determination of a sufficient balance within the |
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economic stabilization fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 404, Government Code, is |
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amended by adding Sections 404.0242 and 404.0243 to read as |
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follows: |
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Sec. 404.0242. MANAGEMENT AND INVESTMENT OF ECONOMIC |
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STABILIZATION FUND ACCOUNTS AND TEXAS LEGACY DISTRIBUTION FUND. |
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(a) This section applies only to the following accounts and fund |
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established under Section 49-g, Article III, Texas Constitution: |
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(1) the Texas stabilization account in the economic |
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stabilization fund; |
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(2) the Texas legacy account in the economic |
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stabilization fund; and |
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(3) the Texas legacy distribution fund. |
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(b) In managing the assets of an account or fund to which |
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this section applies, the comptroller, through procedures and |
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subject to restrictions the comptroller establishes for each |
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account or fund and in amounts the comptroller considers |
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appropriate for each account or fund, may acquire, exchange, sell, |
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supervise, manage, or retain any kind of investment that a prudent |
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investor exercising reasonable care, skill, and caution would |
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acquire, exchange, sell, supervise, manage, or retain in light of |
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the purposes, terms, distribution requirements, and other |
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circumstances then prevailing for the account or fund, taking into |
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consideration the investment of all the assets of the account or |
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fund rather that a single investment. |
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(c) Section 404.024 does not apply to the investment of the |
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assets of an account or fund to which this section applies. |
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Sec. 404.0243. INVESTMENT OBJECTIVES AND PURPOSES OF |
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ECONOMIC STABILIZATION FUND ACCOUNTS. (a) The investment |
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objectives and purposes of the Texas stabilization account in the |
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economic stabilization fund are to preserve: |
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(1) the account's principal; |
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(2) the purchasing power of the account's principal; |
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and |
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(3) the liquidity of the account. |
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(b) The investment objectives and purposes of the Texas |
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legacy account in the economic stabilization fund are to generate |
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earnings on the account'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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distributions to the Texas legacy distribution fund. |
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SECTION 2. 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 TEXAS STABILIZATION |
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ACCOUNT. For the purpose of making the transfers of money required |
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by 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 Texas stabilization account in the |
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economic stabilization fund. The amount of the sufficient balance |
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is equal to eight percent of the certified general revenue-related |
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appropriations for the state fiscal biennium during which the |
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determination is made. |
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SECTION 3. Sections 316.091, 316.092, 316.093, and |
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404.0241, Government Code, are repealed. |
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SECTION 4. This Act takes effect January 1, 2018, but only |
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if the constitutional amendment proposed by __.J.R. No.____, 85th |
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Legislature, Regular Session, 2017, is approved by the voters. If |
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that amendment is not approved by the voters, this Act has no |
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effect. |