By: Huffman  S.B. No. 1333
         (In the Senate - Filed March 1, 2023; March 16, 2023, read
  first time and referred to Committee on Finance; March 31, 2023,
  reported adversely, with favorable Committee Substitute by the
  following vote:  Yeas 17, Nays 0; March 31, 2023, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1333 By:  Huffman
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the creation of the Texas state buildings preservation
  endowment fund, including the transfer to the fund of the
  unencumbered balances of certain other funds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 443.0102(b), Government Code, is amended
  to read as follows:
         (b)  The Capitol fund created by Section 443.0101 and the
  Texas state buildings preservation endowment fund created by
  Section 443.0103 are [is] not subject to Subchapter F, Chapter 404.
  A provision of this chapter or other law that provides for the
  deposit of money or another thing of value into the Capitol fund or
  the Texas state buildings preservation endowment fund prevails over
  Subchapter F, Chapter 404.
         SECTION 2.  Section 443.0103, Government Code, is amended to
  read as follows:
         Sec. 443.0103.  TEXAS STATE BUILDINGS PRESERVATION
  ENDOWMENT [CAPITAL RENEWAL TRUST] FUND. (a) In this section:
               (1)  "Fund" means the Texas state buildings
  preservation endowment fund.
               (2)  "Trust company" means the Texas Treasury
  Safekeeping Trust Company.
         (b)  The Texas state buildings preservation endowment
  [capital renewal trust] fund is created as a [trust] fund outside
  the treasury. The purpose of the fund is to maintain, preserve,
  rehabilitate, and restore the state buildings and grounds over
  which the board has jurisdiction [with the comptroller and shall be
  administered by the board, as a trustee on behalf of the people of
  this state, to maintain and preserve the Capitol, the General Land
  Office Building, their contents, and their grounds].
         (c)  The fund consists of:
               (1)  money transferred or appropriated to the fund by[:
               [(1)  at the direction of] the legislature, including
  money transferred to the fund from the former capital renewal trust
  fund, Governor's Mansion renewal trust fund, and State Cemetery
  preservation trust fund; [or]
               (2)  gifts, grants, and donations contributed to the
  fund for a purpose for which money in the fund may be used under [in
  accordance with] this section; and
               (3)  any returns received from the investment of money
  in the fund.
         (d)  The trust company shall hold, manage, and invest the
  fund, and shall determine the amount available for distribution
  from the fund each year in accordance with a distribution policy
  adopted by the comptroller. The distribution policy must be
  designed to preserve the purchasing power of the assets of the fund,
  provide a stable and predictable series of annual distributions
  from the fund, and meet the liquidity needs of the fund as
  necessary. The expenses of managing the fund and its assets shall
  be paid from the fund. Except as otherwise provided by this
  section, money [(b)  Money] in the fund may not be used [only] for
  any other [the] purpose.
         (e)  In managing the assets of the fund, through procedures
  and subject to restrictions the trust company considers
  appropriate, the trust company may acquire, exchange, sell,
  supervise, manage, or retain any kind of investment that a prudent
  investor, exercising reasonable care, skill, and caution, would
  acquire or retain in light of the purposes, terms, distribution
  requirements, and other circumstances of the fund then prevailing,
  taking into consideration the investment of all the assets of the
  fund rather than a single investment. At the request of the trust
  company, the board shall provide the trust company with information
  the trust company determines is necessary to ensure that the trust
  company is able to achieve the objectives specified by Subsection
  (d).
         (f)  The board annually may request a distribution from the
  fund in an amount that may not exceed the amount the trust company
  determines is available for distribution in the applicable year
  under Subsection (d). Money distributed from the fund to the board
  may be used only for the purpose of maintaining, [and] preserving,
  rehabilitating, and restoring the buildings [the Capitol, the
  General Land Office Building, their contents,] and [their] grounds
  over which the board has jurisdiction. The board shall allocate to
  projects at the Bob Bullock Texas State History Museum an amount
  equal to at least one-third of each annual distribution from the
  fund under this subsection, other than the portion of the
  distribution made using money transferred to the fund from the
  former capital renewal trust fund, Governor's Mansion renewal trust
  fund, and State Cemetery preservation trust fund. The board, with
  the written approval of the Legislative Budget Board, may use money
  received from an annual distribution under this subsection to
  acquire land in close proximity to the State Cemetery for expansion
  of the cemetery. The board may not use money received from an
  annual distribution under this subsection to pay salaries, employee
  benefits, costs associated with employee benefits, or
  administration, operating, or program costs of the board or the
  buildings and grounds over which the board has jurisdiction.
         (g)  Subject to Subsection (h) and not more frequently than
  once each calendar year, the board may request an additional
  distribution from the fund in an amount that exceeds the amount the
  trust company determines is available for distribution from the
  fund in that year under Subsection (d). An additional distribution
  under this subsection may be used for a purpose described by
  Subsection (f). The trust company may not make an additional
  distribution under this subsection if the distribution would
  negatively affect the purchasing power of the assets of the fund as
  determined by the terms of the distribution policy adopted by the
  comptroller under Subsection (d).
         (h)  The board may receive an additional distribution from
  the fund under Subsection (g) only after the board certifies to the
  Legislative Budget Board that:
               (1)  the board has reviewed and approved the use of the
  money;
               (2)  all purchases made with the money will conform to
  any applicable provision of law governing state procurement and
  contracting; and
               (3)  the money will not be used to:
                     (A)  pay salaries, employee benefits, costs
  associated with employee benefits, or administration, operating,
  or program costs of the board or the buildings and grounds over
  which the board has jurisdiction;
                     (B)  except as provided by Subsection (f), acquire
  new historic sites or real property; or
                     (C)  purchase capital equipment that is not
  related to the rehabilitation or restoration of a building or
  grounds.
         (i)  All expenditures by the board under this section are
  subject to audit by the state auditor.
         (j)  The board shall include in the strategic plan submitted
  under Section 2056.002 a report on each project funded using money
  in the fund during the two-year period preceding the date on which
  the board submits the plan and a list of each project the board
  anticipates will be funded using money in the fund for the period
  covered by the plan.
         [(c)  The interest received from investment of money in the
  fund shall be credited to the fund.
         [(d)  The board may transfer money from any account of the
  Capitol fund to the capital renewal trust fund, other than money
  that was donated to the board, derived from a security or other
  thing of value donated to the board, or earned as interest or other
  income on a donation to the board, if the board determines that
  after the transfer there will be a sufficient amount of money in the
  applicable account of the Capitol fund to accomplish the purposes
  for which the account was created.
         [(e)  The board may transfer money from the capital renewal
  trust fund to any account of the Capitol fund, provided that money
  transferred shall only be used for the purposes outlined in
  Subsection (b).]
         SECTION 3.  Effective September 1, 2024, the following
  provisions of the Government Code are repealed:
               (1)  Section 443.0295;
               (2)  Section 2165.2565, as added by Chapter 72 (S.B.
  574), Acts of the 84th Legislature, Regular Session, 2015; and
               (3)  Section 2165.2565, as added by Chapter 932 (H.B.
  2206), Acts of the 84th Legislature, Regular Session, 2015.
         SECTION 4.  On September 1, 2024, the Governor's Mansion
  renewal trust fund and the State Cemetery preservation trust fund
  are abolished and the unencumbered balances of those funds are
  transferred to the comptroller of public accounts for deposit in
  the Texas state buildings preservation endowment fund created under
  Section 443.0103, Government Code, as amended by this Act. Money
  transferred under this section is available for expenditure in the
  manner prescribed by Section 443.0103, Government Code, as amended
  by this Act, except that the requirement that one-third of the
  amount spent be used as required by Subsection (f) of that section
  does not apply to money transferred under this section.
         SECTION 5.  On September 1, 2024, the unencumbered balance
  of the capital renewal trust fund is transferred to the comptroller
  of public accounts for deposit in the Texas state buildings
  preservation endowment fund created under Section 443.0103,
  Government Code, as amended by this Act. Money transferred under
  this section is available for expenditure in the manner prescribed
  by Section 443.0103, Government Code, as amended by this Act,
  except that the requirement that one-third of the amount spent be
  used as required by Subsection (f) of that section does not apply to
  money transferred under this section.
         SECTION 6.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2023.
 
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