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A BILL TO BE ENTITLED
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AN ACT
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relating to the investment of a portion of the economic |
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stabilization fund balance. |
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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 Section 404.0241 to read as follows: |
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Sec. 404.0241. INVESTMENT OF CERTAIN ECONOMIC |
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STABILIZATION FUND BALANCES. (a) The comptroller, with the |
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approval of the Legislative Budget Board under Subsection (c), may |
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invest an amount of the economic stabilization fund equal to the |
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sufficient balance adopted under Section 316.092(d) for the |
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applicable state fiscal biennium in accordance with the investment |
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standard described by Section 404.024(j). The comptroller's |
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investment under this subsection is not subject to any other |
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limitation or other requirement provided by Section 404.024. |
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(b) The comptroller, with the approval of the Legislative |
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Budget Board under Subsection (c), shall adjust the investment |
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portfolio of economic stabilization fund money periodically to |
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ensure that, as appropriated money is withdrawn or money is |
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otherwise transferred from the fund or as the sufficient balance |
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adopted under Section 316.092(d) changes, only the amount of funds |
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specified by Subsection (a) is invested in a manner that does not |
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comply with all limitations and other requirements of Section |
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404.024. |
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(c) Not later than February 1 of each year, the comptroller, |
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in consultation with the investment advisory board established |
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under Section 404.028, shall submit to the Legislative Budget Board |
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at least two investment plans detailing proposed investments under |
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Subsection (a) or adjustments under Subsection (b). At least one of |
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the proposed investment plans may not provide for any participation |
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by the Texas Treasury Safekeeping Trust Company. Not later than the |
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30th day after the date of receiving proposed investment plans from |
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the comptroller, the Legislative Budget Board shall conduct and the |
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comptroller shall attend a public hearing on the proposed |
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investment plans. The Legislative Budget Board shall approve or |
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disapprove each proposed investment plan not later than the 10th |
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day after the date of the hearing. If, after the 10th day after the |
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date of a hearing, the Legislative Budget Board has not approved an |
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investment plan, the comptroller may, not later than the 40th day |
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after the date of the hearing, submit additional investment plans |
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to the board in the manner described by this section. |
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(d) Not later than January 1 of each year, the Legislative |
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Budget Board, in consultation with the comptroller, shall publish |
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an annual report on the risk-adjusted performance of investments |
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under this section during the fiscal year ending on the preceding |
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August 31. The comptroller shall provide the Legislative Budget |
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Board with the information the board requests regarding the |
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performance of the investments under this section and, at the |
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request of the board, shall appear before the board to present |
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information and receive questions and comments. The annual report |
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must include: |
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(1) statements of assets and a schedule of changes in |
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book value of the investments under this section; |
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(2) a summary of the gains, losses, and income from |
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investments under this section on August 31; |
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(3) an itemized list of the securities held as |
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investments under this section on August 31; and |
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(4) any other information needed to clearly indicate |
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the nature and extent of the investments under this section and the |
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income realized from those investments. |
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(e) The comptroller and the Legislative Budget Board shall |
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each make the report described by Subsection (d) available on the |
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respective agency's Internet website. |
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(f) Funds invested under this section are considered for all |
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purposes to be part of the economic stabilization fund. |
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SECTION 2. 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, 2015. |