Bill

HB 903

84(R) - 2015
House Appropriations
House Appropriations

Vote Recommendation

Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral

Author(s)

Giovanni Capriglione

Co-Author(s)

Greg Bonnen
Cindy Burkett
Byron Cook
Morgan Meyer
Rick Miller
John Otto
Ron Simmons

Bill Caption

Relating to the investment of a percentage of the economic stabilization fund balance in excess of the sufficient balance.

Fiscal Notes

A fiscal note dated March 25, 2015 indicates that the fiscal implications of House Bill 903 cannot be determined at this time because the percentage of funds that could be invested is not yet known.

Bill Analysis

House Bill 903 would require that a percentage of the Economic Stabilization Fund (ESF) balance in a state fiscal biennium that exceeds the amount of the sufficient balance of the fund required in that fiscal biennium, be invested. The Comptroller would have to invest this percentage of money "under the restrictions and procedures for making the investments that persons of ordinary prudence, discretion, and intelligence, exercising the judgment and care under the prevailing circumstances, would follow in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital." (Section 404.024(j) of the Government Code).

The Comptroller would have to adjust the investment portfolio if necessary to make sure  the balance of the fund is sufficient to meet its cash flow requirements.

The market value of the investment portfolio would be included in calculating the maximum amount allowed in the fund during each fiscal biennium.

The Comptroller would invest the amount of money in accordance with Section 404.024(j) of the Government Code, that is "under the restrictions and procedures for making the investments that persons of ordinary prudence, discretion, and intelligence, exercising the judgment and care under the prevailing circumstances, would follow in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital."

Vote Recommendation Notes

5/08/15 Update:

This bill is the same as when we reported on it in its original chamber. We continue to remain neutral.

First chamber analysis below:

Texans' hard-earned tax dollars should be returned to them whenever possible, not used to raise additional revenues for government spending. Investing the money to get a return from it, in itself, isn't against our Liberty Principles but there are too many unknowns in this case, including the way the money would be invested. We will remain neutral on House Bill 903.