Bill Text: TX SB69 | 2019-2020 | 86th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the allocations of money for transfer to the state highway fund and the economic stabilization fund and the investment of money in the economic stabilization fund.

Spectrum: Slight Partisan Bill (Republican 36-15)

Status: (Passed) 2019-06-14 - Effective on 9/1/19 [SB69 Detail]

Download: Texas-2019-SB69-Introduced.html

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86R1634 JJT-D
By: Nelson S.B. No. 69

A BILL TO BE ENTITLED
AN ACT
relating to the authority of the comptroller regarding the
management of the general revenue fund and the economic
stabilization fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter H, Chapter 316,
Government Code, is amended to read as follows:
SUBCHAPTER H. ALLOCATION OF TRANSFERS TO [PRESERVATION OF
SUFFICIENT BALANCE IN] ECONOMIC STABILIZATION FUND AND STATE
HIGHWAY FUND
SECTION 2. Sections 316.092 and 316.093, Government Code,
are amended to read as follows:
Sec. 316.092. DETERMINATION OF THRESHOLD FOR
CONSTITUTIONAL TRANSFER TO STATE HIGHWAY [SUFFICIENT] FUND
[BALANCE]. (a) [Not later than September 1 of each even-numbered
year preceding the year in which this section expires as provided by
Subsection (e), the speaker of the house of representatives and the
lieutenant governor shall appoint a select committee as follows:
[(1) the speaker of the house of representatives shall
appoint five members of the house of representatives as members of
the committee; and
[(2) the lieutenant governor shall appoint five
members of the senate as members of the committee.
[(b)] For the purposes of adjusting the allocations of
transfers in accordance with Section 49-g(c-2), Article III, Texas
Constitution, and Section 316.093, not later than December 1 of
each even-numbered year preceding the year in which this section
expires [as provided by Subsection (e)], the comptroller [select
committee] shall determine and adopt for the next state fiscal
biennium an amount equal to seven one-hundredths of the most recent
estimate of anticipated revenue made under Section 49a(a), Article
III, Texas Constitution [a sufficient balance of the fund in an
amount that the committee estimates will ensure an appropriate
amount of revenue available in the fund. In determining the
sufficient balance for that fiscal biennium, the committee shall
consider:
[(1) the history of fund balances;
[(2) the history of transfers to the fund;
[(3) estimated fund balances during that fiscal
biennium;
[(4) estimated transfers to the fund to occur during
that fiscal biennium;
[(5) information available to the committee regarding
state highway congestion and funding demands; and
[(6) any other information requested by the committee
regarding the state's financial condition].
[(c) On or before October 1 of each even-numbered year
preceding the year in which this section expires as provided by
Subsection (e), the comptroller shall provide to the select
committee the comptroller's projection of the amounts to be
transferred to the fund during the next state fiscal biennium.
[(d) When the select committee has adopted under Subsection
(b) the amount of the sufficient balance of the fund for a state
fiscal biennium, the matter of approving that amount shall be
presented to each house of the legislature in a concurrent
resolution during the next succeeding regular legislative
session. The resolution must be presented for a vote in each house
of the legislature not later than the 30th day of that legislative
session, must be approved by a vote of a majority of the members of
each house, and must be finally approved by each house not later
than the 45th day of that legislative session. If a resolution
finally approved under this subsection is amended during the
legislative process to provide for a different sufficient balance
of the fund than that adopted under Subsection (b), that different
balance is the sufficient balance adopted under this section for
purposes of Section 316.093. If a resolution finally approved
under this subsection does not provide for a different sufficient
balance of the fund or if a resolution is not finally approved as
provided by this subsection, the sufficient balance adopted under
Subsection (b) is the sufficient balance adopted under this section
for purposes of Section 316.093.]
(b) [(e)] This section expires December 31, 2024.
Sec. 316.093. ADJUSTMENT OF CONSTITUTIONAL ALLOCATIONS TO
FUND AND STATE HIGHWAY FUND. (a) Before the comptroller makes
transfers for a state fiscal year in accordance with Section
49-g(c), Article III, Texas Constitution, the comptroller shall
determine whether the sum of the balance of the fund on the
preceding August 31, any projected transfer to the fund under
Section 49-g(b) of that article, and any projected transfer to the
fund under Section 49-g(c) of that article in accordance with the
allocations for the transfer as provided by Section 49-g(c-1) of
that article is less than the amount determined under [sufficient
balance adopted under] Section 316.092 for that state fiscal
biennium.
(b) If the sum described by Subsection (a) is less than the
amount determined under [sufficient balance adopted under] Section
316.092 for that state fiscal biennium, the comptroller shall
reduce the allocation to the state highway fund provided by Section
49-g(c), Article III, Texas Constitution, and increase the
allocation to the economic stabilization fund, in an equal amount,
until the amount determined under [sufficient balance adopted
under] Section 316.092 for that state fiscal biennium would be [is]
achieved by the transfer to the fund or the total amount of the sum
described by Section 49-g(c), Article III, Texas Constitution, is
allocated to the fund, whichever occurs first.
(c) [If under Section 316.092 a sufficient balance has not
been adopted for the comptroller to consider under this section,
the comptroller shall adjust the allocation of amounts to be
transferred to the fund and to the state highway fund provided by
Section 49-g(c), Article III, Texas Constitution, so that the total
of those amounts is transferred to the economic stabilization fund,
except that the comptroller shall reduce a transfer made under this
subsection as necessary to prevent the amount in the fund from
exceeding the limit in effect for that biennium under Section
49-g(g) of that article.
[(e)] For the purposes of Section 49-g(c-2), Article III,
Texas Constitution, the comptroller shall adjust the allocation
provided by Section 49-g(c-1) of that article of amounts to be
transferred to the fund and to the state highway fund under Section
49-g(c) of that article in a state fiscal year beginning on or after
September 1, 2025, so that the total of those amounts is transferred
to the economic stabilization fund, except that the comptroller
shall reduce a transfer made under this subsection as necessary to
prevent the amount in the fund from exceeding the limit in effect
for that biennium under Section 49-g(g) of that article.
(d) [(f)] Subsections (a) and [,] (b) [, and (c)] and this
subsection expire December 31, 2024.
SECTION 3. Subchapter B, Chapter 403, Government Code, is
amended by adding Section 403.0125 to read as follows:
Sec. 403.0125. FEDERAL MONEY DEPOSITED TO TREASURY. (a)
The comptroller may not deposit to the credit of the general revenue
fund money received from the federal government or accrued interest
or other earnings on money received from the federal government.
The comptroller shall account for and administer federal money
separately from money in the general revenue fund in a manner that
ensures federal money and earnings on federal money are used for the
purposes for which federal money is received.
(b) To facilitate the administration of federal money under
this section or other law, the comptroller may:
(1) designate or create a fund or account in the
treasury for the deposit of federal money and any interest or other
earnings on the federal money;
(2) merge, consolidate, or segregate funds or accounts
or money deposited to funds or accounts; or
(3) abolish a fund, or an account in the general
revenue fund, to which federal money has been deposited in
accordance with other law.
(c) This section prevails over other general law that
provides for money received from the federal government, or
earnings on money received from the federal government, to be
deposited to the credit of the general revenue fund or to the credit
of an account in the general revenue fund. To the extent of any
other conflict between this section and other law, this section
controls.
SECTION 4. Section 404.0241, Government Code, is amended to
read as follows:
Sec. 404.0241. INVESTMENT OF CERTAIN ECONOMIC
STABILIZATION FUND BALANCES. (a) The comptroller may [shall]
invest a percentage of the balance of the economic stabilization
fund in an investment portfolio managed [balance in a state fiscal
biennium that exceeds the amount of the sufficient balance of the
fund adopted under Section 316.092 for that biennium] in accordance
with the investment standard described by Section 404.024(j). The
comptroller's investment of that percentage of the fund [excess]
balance is not subject to any other limitation or other requirement
provided by Section 404.024.
(b) The balance of the investment portfolio may not exceed
three-quarters of the balance of the economic stabilization fund.
(c) The comptroller shall adjust the investment portfolio
[of economic stabilization fund money] periodically as necessary to
ensure that:
(1) at all times at least one-quarter of the balance of
the economic stabilization fund is invested in a manner that
ensures the liquidity of that amount; and
(2) the balance of the economic stabilization fund is
sufficient to meet the cash flow requirements of the fund.
(d) The comptroller may transfer to the credit of the
endowment principal account of the state endowment fund any part of
the accrued earnings attributable to the investment portfolio.
(e) [(c)] The comptroller shall include the fair market
value of the investment portfolio of the economic stabilization
fund in calculating the amount in the fund for purposes of Section
49-g(g), Article III, Texas Constitution, and Section 316.093 of
this code.
[(d) This section expires on the date Section 316.092
expires.]
SECTION 5. Subchapter C, Chapter 404, Government Code, is
amended by adding Section 404.0242 to read as follows:
Sec. 404.0242. STATE ENDOWMENT FUND. (a) The state
endowment fund is a special fund in the state treasury outside the
general revenue fund that consists of principal deposited or
transferred to the credit of the fund in accordance with law and the
accrued earnings on the balance of the fund.
(b) The comptroller shall maintain the principal of the fund
in an endowment principal account and the accrued earnings in an
accrued earnings account.
(c) Money deposited or transferred to the credit of the
endowment principal account may not be appropriated for any
purpose.
(d) Accrued earnings on the fund's principal maintained in
the accrued earnings account and the accrued earnings on the
balance of that account may be appropriated for any general
governmental purpose.
(e) The comptroller may invest all or any part of the
balance of the endowment principal account or the accrued earnings
account in accordance with the investment standard described by
Section 404.024(j). The comptroller's investment of those amounts
is not subject to any other limitation or other requirement
provided by Section 404.024.
SECTION 6. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2019.
(b) Section 404.0241(d), Government Code, as added by this
Act, takes effect January 1, 2020, but only if the constitutional
amendment proposed by the 86th Legislature, Regular Session, 2019,
to authorize the legislature to provide for a transfer of economic
stabilization fund investment earnings to a special endowment fund
in the state treasury is approved by the voters. If that amendment
is not approved by the voters, Section 404.0241(d), Government
Code, as added by this Act, has no effect.