Bill Caption

Relating to the management of the permanent school fund by the School Land Board and the State Board of Education.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB 4388, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2021.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. 

Bill Analysis

HB 4388 would establish the permanent school fund liquid account within the permanent school fund (PSF) in the State Treasury to be used by the School land Board (SLB) and State Board of Education (SBOE). The SBOE would be able to invest funds in the account only in liquid assets in the same manner that the PSF is managed by the SBOE. The SLB would be required to provide to the SBOE in a quarterly report the SLB's anticipated cash needs so that the SBOE can ensure that these needs are met. 

SBOE would be required to release from liquid account funds to be deposited to the credit of the real estate special fund account in the State Treasury in an amount requested by the SLB not later than the fifth business day after the date of a SLB request.

This bill would also set limits and conditions on real estate investments, require the SBOE to provide to the SLB a quarterly financial report on the portion of the PSF assets and funds for which it is responsible (and vice versa), and set requirements for the quarterly financial reports. 

Vote Recommendation Notes

Texas Action is neutral on HB 4388 because it does not affect our liberty principles.