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A BILL TO BE ENTITLED
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AN ACT
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relating to the dedication and maximization of returns on payments |
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received by this state for economic losses sustained from the |
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Deepwater Horizon oil spill. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 403, Government Code, is |
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amended by adding Section 403.108 to read as follows: |
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Sec. 403.108. TEXAS GULF RECOVERY FUND. (a) In this |
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section: |
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(1) "Deepwater Horizon incident" means the oil spill |
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occurring from the MC252 well beginning in April 2010 in the Gulf of |
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Mexico. |
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(2) "Fund" means the Texas Gulf recovery fund. |
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(3) "Trust company" means the Texas Treasury |
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Safekeeping Trust Company. |
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(b) The Texas Gulf recovery fund is a special fund in the |
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state treasury outside the general revenue fund. The fund is |
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composed of: |
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(1) all money received by this state for general |
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economic losses that is paid in accordance with: |
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(A) the Gulf States Economic Claims Settlement |
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Agreement arising in part out of this state's case styled Texas v. |
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BP Exploration & Production Inc., et al., No. 13-cv-4677, filed |
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June 18, 2013, in the United States District Court, Eastern |
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District of Louisiana, and consolidated in the multidistrict |
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litigation known as MDL 2179 in that court; or |
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(B) the Master Settlement Agreement entered into |
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by Transocean Offshore Deepwater Drilling Inc., Transocean |
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Deepwater Inc., Transocean Holdings LLC, and Triton Asset Leasing |
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GmbH, this state, and other Gulf states arising out of litigation |
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from the Deepwater Horizon incident consolidated in the |
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multidistrict litigation known as MDL 2179 in the United States |
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District Court, Eastern District of Louisiana; and |
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(2) interest received from the investment of fund |
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assets. |
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(c) On receipt, the comptroller shall deposit money |
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described by Subsection (b)(1) to the credit of the fund. |
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(d) Except as otherwise provided by this section, the |
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comptroller shall administer the fund and may establish separate |
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accounts in the fund as necessary. |
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(e) The trust company shall hold and invest the assets of |
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the fund and any accounts established in the fund on behalf of the |
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comptroller, taking into account the purposes for which the fund is |
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established. In managing the fund assets, through procedures and |
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subject to restrictions the trust company considers appropriate, |
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the trust company may acquire, exchange, sell, supervise, manage, |
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or retain any kind of investment that a prudent investor, |
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exercising reasonable care, skill, and caution, would acquire or |
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retain in light of the purposes, terms, and other circumstances of |
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the fund then prevailing, taking into consideration the investment |
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of all the fund assets rather than a single investment. The trust |
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company may invest the fund assets with the state treasury pool. |
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(f) Expenses of managing the fund assets shall be paid from |
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the fund, notwithstanding Subsections (g) and (h). |
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(g) Until September 1, 2033, the sole purpose of the fund is |
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to maximize the return on investment of the fund assets. Money in |
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the fund may not be appropriated for any purpose for a period |
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beginning before September 1, 2033. This subsection expires |
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September 1, 2033. |
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(h) Money in the fund may be appropriated only: |
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(1) for a period beginning on or after September 1, |
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2033; and |
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(2) for ecological, environmental, or economic |
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projects benefiting areas of this state bordering the Gulf of |
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Mexico that sustained environmental or ecological damage or other |
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economic losses as a result of the Deepwater Horizon incident. |
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(i) The fund is exempt from the application of Section |
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403.095. |
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SECTION 2. Section 404.071(a), Government Code, is amended |
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to read as follows: |
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(a) Interest received from investments of money in funds and |
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accounts in the charge of the comptroller shall be allocated on a |
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monthly basis as follows: |
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(1) the pro rata portion of the interest received due |
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to each constitutional fund shall be credited to that fund; |
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(2) the pro rata portion of the interest received due |
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to the game, fish, and water safety fund shall be credited to that |
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fund; |
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(2-a) the pro rata portion of the interest received from |
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the investment of the Texas Gulf recovery fund shall be credited to |
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that fund; and |
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(3) the remainder of the interest received shall be |
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credited to the general revenue fund. |
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SECTION 3. On the effective date of this Act, the |
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comptroller of public accounts shall transfer from the general |
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revenue fund to the Texas Gulf recovery fund established under |
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Section 403.108, Government Code, as added by this Act, an amount of |
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money equal to the amounts of money described by Section |
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403.108(b)(1), Government Code, as added by this Act, that were |
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received by this state before the effective date of this Act. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |