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Relating to the allocation of certain constitutional transfers of
money to the economic stabilization fund, the Texas legacy fund,
and the state highway fund and to the management and investment of
the economic stabilization fund, the Texas legacy fund, and the
Texas legacy distribution fund.
The bill is the enabling legislation for House Joint Resolution 10 and would have no fiscal impact by itself. The fiscal impact of the bill combined with the proposed constitutional amendment is shown in the fiscal note of the House Committee Substitute for House Joint Resolution 10. HJR 10 fiscal impact is below:
Report 1st House, Substituted: a negative impact of ($177,289) through the biennium ending August 31, 2021. Additionally, the joint resolution will create a net positive impact of $286,412,000 to Other Funds during the 2020-21 biennium. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
HB 20 is enabling legislation for the constitutional amendment proposed by HJR 10 and would only be effective if HJR 10 is approved by the voters in an election. Our bill page for HJR 10 is here.
HB 20 would establish guidelines for the management and investment of the Economic Stabilization Fund (ESF), the Texas Legacy Fund, and the Texas Legacy Distribution Fund. (The latter two funds do not yet exist but would be created contingent on the approval of HJR 10.) The bill would set forth the respective objectives and purposes of the funds.
The bill would also peg the sufficient balance of the ESF to 7% of certified general revenue appropriations.
Texas Action is opposed to HJR 10 and HB 20 because these bills would violate our principle of limited government. This constitutional amendment and its enabling legislation would expose taxpayer funds to investment risks and grow the size of government while failing to provide tax relief or reform structural deficiencies of long term debt obligations and public pensions.