Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB2146 by Parker (Relating to oversight by the comptroller of financial institution divestments from certain industries.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend Subchapter B, Chapter 403, Government Code, directing the Comptroller to require financial institutions that operate a mutual fund to periodically submit a statement to the Comptroller stating whether the institution has divested or intends to divest from mutual fund investments in a company that engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossilÂfuel based energy. The bill would require the Comptroller to adopt rules to implement the bill, including providing a penalty for financial institutions that fail to submit the required statement.
According to the Comptroller, there would administrative costs to implement the bill's provisions. This analysis assumes the costs could be absorbed within existing resources.
Additionally, there would be an indeterminate, and offsetting revenue gain associated with penalties imposed on noncompliant financial institutions.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts