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AN ACT
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relating to the allocations of money for transfer to the state |
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highway fund and the economic stabilization fund and the investment |
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of money in the economic stabilization fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter H, Chapter 316, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER H. ALLOCATION OF TRANSFERS TO [PRESERVATION OF
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SUFFICIENT BALANCE IN] ECONOMIC STABILIZATION FUND AND STATE |
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HIGHWAY FUND |
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SECTION 2. Sections 316.092 and 316.093, Government Code, |
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are amended to read as follows: |
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Sec. 316.092. DETERMINATION OF THRESHOLD FOR |
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CONSTITUTIONAL TRANSFER TO STATE HIGHWAY [SUFFICIENT] FUND |
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[BALANCE]. (a) [Not later than September 1 of each even-numbered
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year preceding the year in which this section expires as provided by
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Subsection (e), the speaker of the house of representatives and the
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lieutenant governor shall appoint a select committee as follows:
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[(1)
the speaker of the house of representatives shall
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appoint five members of the house of representatives as members of
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the committee; and
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[(2)
the lieutenant governor shall appoint five
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members of the senate as members of the committee.
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[(b)] For the purposes of adjusting the allocations of |
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transfers in accordance with Section 49-g(c-2), Article III, Texas |
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Constitution, and Section 316.093 for a state fiscal biennium [not
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later than December 1 of each even-numbered year preceding the year
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in which this section expires as provided by Subsection (e)], the |
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comptroller [select committee] shall determine and adopt for the |
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[next] state fiscal biennium an amount equal to seven percent of the |
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certified general revenue-related appropriations made for that |
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state fiscal biennium [a sufficient balance of the fund in an amount
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that the committee estimates will ensure an appropriate amount of
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revenue available in the fund.
In determining the sufficient
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balance for that fiscal biennium, the committee shall consider:
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[(1) the history of fund balances;
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[(2) the history of transfers to the fund;
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[(3)
estimated fund balances during that fiscal
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biennium;
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[(4)
estimated transfers to the fund to occur during
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that fiscal biennium;
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[(5)
information available to the committee regarding
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state highway congestion and funding demands; and
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[(6)
any other information requested by the committee
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regarding the state's financial condition]. |
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[(c)
On or before October 1 of each even-numbered year
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preceding the year in which this section expires as provided by
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Subsection (e), the comptroller shall provide to the select
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committee the comptroller's projection of the amounts to be
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transferred to the fund during the next state fiscal biennium.
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[(d)
When the select committee has adopted under Subsection
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(b) the amount of the sufficient balance of the fund for a state
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fiscal biennium, the matter of approving that amount shall be
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presented to each house of the legislature in a concurrent
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resolution during the next succeeding regular legislative session.
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The resolution must be presented for a vote in each house of the
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legislature not later than the 30th day of that legislative
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session, must be approved by a vote of a majority of the members of
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each house, and must be finally approved by each house not later
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than the 45th day of that legislative session.
If a resolution
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finally approved under this subsection is amended during the
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legislative process to provide for a different sufficient balance
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of the fund than that adopted under Subsection (b), that different
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balance is the sufficient balance adopted under this section for
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purposes of Section 316.093.
If a resolution finally approved
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under this subsection does not provide for a different sufficient
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balance of the fund or if a resolution is not finally approved as
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provided by this subsection, the sufficient balance adopted under
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Subsection (b) is the sufficient balance adopted under this section
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for purposes of Section 316.093.] |
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(b) [(e)] This section expires December 31, 2034 [2024]. |
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Sec. 316.093. ADJUSTMENT OF CONSTITUTIONAL ALLOCATIONS TO |
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FUND AND STATE HIGHWAY FUND. (a) Before the comptroller makes |
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transfers for a state fiscal year in accordance with Section |
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49-g(c), Article III, Texas Constitution, the comptroller shall |
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determine whether the sum of the balance of the fund on the |
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preceding August 31, any projected transfer to the fund under |
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Section 49-g(b) of that article, and any projected transfer to the |
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fund under Section 49-g(c) of that article in accordance with the |
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allocations for the transfer as provided by Section 49-g(c-1) of |
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that article is less than the amount determined under [sufficient
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balance adopted under] Section 316.092 for that state fiscal |
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biennium. |
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(b) If the sum described by Subsection (a) is less than the |
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amount determined under [sufficient balance adopted under] Section |
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316.092 for that state fiscal biennium, the comptroller shall |
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reduce the allocation to the state highway fund provided by Section |
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49-g(c), Article III, Texas Constitution, and increase the |
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allocation to the economic stabilization fund, in an equal amount, |
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until the amount determined under [sufficient balance adopted
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under] Section 316.092 for that state fiscal biennium would be [is] |
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achieved by the transfer to the fund or the total amount of the sum |
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described by Section 49-g(c), Article III, Texas Constitution, is |
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allocated to the fund, whichever occurs first. |
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(c) [If under Section 316.092 a sufficient balance has not
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been adopted for the comptroller to consider under this section,
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the comptroller shall adjust the allocation of amounts to be
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transferred to the fund and to the state highway fund provided by
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Section 49-g(c), Article III, Texas Constitution, so that the total
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of those amounts is transferred to the economic stabilization fund,
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except that the comptroller shall reduce a transfer made under this
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subsection as necessary to prevent the amount in the fund from
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exceeding the limit in effect for that biennium under Section
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49-g(g) of that article.
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[(e)] For the purposes of Section 49-g(c-2), Article III, |
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Texas Constitution, the comptroller shall adjust the allocation |
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provided by Section 49-g(c-1) of that article of amounts to be |
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transferred to the fund and to the state highway fund under Section |
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49-g(c) of that article in a state fiscal year beginning on or after |
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September 1, 2035 [2025], so that the total of those amounts is |
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transferred to the economic stabilization fund, except that the |
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comptroller shall reduce a transfer made under this subsection as |
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necessary to prevent the amount in the fund from exceeding the limit |
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in effect for that biennium under Section 49-g(g) of that article. |
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(d) [(f)] Subsections (a) and[,] (b)[, and (c)] and this |
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subsection expire December 31, 2034 [2024]. |
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SECTION 3. Section 404.0241, Government Code, is amended to |
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read as follows: |
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Sec. 404.0241. INVESTMENT OF CERTAIN ECONOMIC |
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STABILIZATION FUND BALANCES. (a) Subject to Subsection (b) and |
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notwithstanding Section 404.024, for the purpose of investing the |
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assets of the economic stabilization fund, the [The] comptroller |
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may acquire, exchange, sell, supervise, manage, or retain any kind |
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of investment that a prudent investor exercising reasonable care, |
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skill, and caution would acquire, exchange, sell, supervise, |
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manage, or retain in light of the purposes, terms, distribution |
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requirements, and other circumstances then prevailing for the fund, |
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taking into consideration the investment of all the assets of the |
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fund rather than a single investment [shall invest a percentage of
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the economic stabilization fund balance in a state fiscal biennium
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that exceeds the amount of the sufficient balance of the fund
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adopted under Section 316.092 for that biennium in accordance with
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the investment standard described by Section 404.024(j).
The
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comptroller's investment of that percentage of the excess balance
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is not subject to any other limitation or other requirement
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provided by Section 404.024]. |
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(b) At least one-quarter of the economic stabilization fund |
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balance must be invested in a manner that ensures the liquidity of |
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that amount. |
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(c) The comptroller may pool assets of the economic |
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stabilization fund with other state assets for purposes of |
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investment under Section 404.024(b). |
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(d) The comptroller shall adjust the investment [portfolio] |
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of economic stabilization fund money periodically as necessary to |
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ensure that: |
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(1) at all times at least one-quarter of the balance of |
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the economic stabilization fund is invested in a manner that |
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ensures the liquidity of that amount; and |
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(2) the balance of the economic stabilization fund is |
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sufficient to meet the cash flow requirements of the fund. |
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(e) [(c)] The comptroller shall include the fair market |
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value of the investments [investment portfolio] of the economic |
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stabilization fund in calculating the amount in the fund for |
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purposes of Section 49-g(g), Article III, Texas Constitution, and |
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Section 316.093 of this code. |
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[(d)
This section expires on the date Section 316.092
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expires.] |
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SECTION 4. Sections 316.093(a) and (b), Government Code, as |
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amended by this Act, apply only to the allocation of money to the |
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economic stabilization fund and the state highway fund under |
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Section 49-g(c-1), Article III, Texas Constitution, beginning with |
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the state fiscal year beginning September 1, 2021. The allocation |
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of money to the economic stabilization fund and the state highway |
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fund under Section 49-g(c-1), Article III, Texas Constitution, for |
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the state fiscal years beginning September 1, 2019, and September |
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1, 2020, is governed by Sections 316.093(a) and (b), Government |
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Code, as those sections existed immediately before the effective |
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date of this Act, and the former law is continued in effect for that |
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purpose. |
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SECTION 5. This Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 69 passed the Senate on |
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April 17, 2019, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendments on May 24, 2019, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 69 passed the House, with |
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amendments, on May 21, 2019, by the following vote: Yeas 144, |
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Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |