TITLE: Relating to the investment of a portion of the economic stabilization fund balance.

SUMMARY: Relating to the investment of a portion of the economic stabilization fund balance.

FULL TEXT:
AN ACT relating to the investment of a portion of the economic stabilization fund balance. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 404, Government Code, is amended by adding Section 404.0241 to read as follows: Sec. 404.0241. INVESTMENT OF CERTAIN ECONOMIC STABILIZATION FUND BALANCES. (a) The comptroller shall invest the balance of the economic stabilization fund that exceeds an amount equal to 30 percent of the maximum authorized balance of the fund for the applicable state fiscal biennium as prescribed by Section 49-g(g), Article III, Texas Constitution, in accordance with the investment standard described by Section 404.024(j). The comptroller's investment of that excess balance is not subject to any other limitation or other requirement provided by Section 404.024. (b) The comptroller shall adjust the investment portfolio of economic stabilization fund money periodically to ensure that, as appropriated money is withdrawn or money is otherwise transferred from the fund or as the maximum authorized balance of the fund as prescribed by Section 49-g(g), Article III, Texas Constitution, changes, only the balance of the fund that exceeds the amount specified by Subsection (a) is invested in a manner that does not comply with all limitations and other requirements of Section 404.024. SECTION 2. (a) The comptroller of public accounts shall conduct a study of the potential costs and benefits of investing, as provided by Section 404.0241, Government Code, as added by this Act, or of investing under an alternative method as the comptroller may propose, a portion of the economic stabilization fund in precious metals stored in this state. The comptroller shall report the findings and conclusions of the study to the legislature not later than August 31, 2014. (b) In conducting the study under Subsection (a) of this section, the comptroller shall include the comptroller's analysis of the costs and benefits of the following scenarios for managing the storage of precious metals in which economic stabilization fund money is invested: (1) establishing and operating a state depository for precious metals; (2) establishing and operating a state depository for precious metals with private depository agents regulated by this state; (3) establishing and operating several state depositories for precious metals; (4) establishing and operating several state depositories for precious metals with private depository agents regulated by this state; and (5) using an established network of private depository agents with regulatory oversight conducted by this state. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution.