Relating to the creation of the Fiscal Risk Management Commission.
relating to the creation of the Fiscal Risk Management Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 10, Government Code, is
amended by adding Chapter 2119 to read as follows:
CHAPTER 2119. FISCAL RISK MANAGEMENT COMMISSION
Sec. 2119.0001. DEFINITIONS. In this chapter:
(1) “Commission” means the Fiscal Risk Management
Commission.
(2) “State agency” means a board, commission,
department, office, or other agency in the executive branch of
state government created by the constitution or a statute of this
state, including an institution of higher education as defined by
Section 61.003, Education Code.
Sec. 2119.0002. COMPOSITION. (a) The commission is
composed of the following seven members:
(1) the comptroller;
(2) the speaker of the house of representatives or a
member of the house of representatives designated by the speaker;
(3) the lieutenant governor or a member of the senate
designated by the lieutenant governor; and
(4) four members of the public, appointed by the
governor, who have experience with state and federal fiscal policy
and budgetary analysis.
(b) The comptroller shall serve as the presiding officer of
the commission.
(c) Public members serve at the pleasure of the governor.
(d) The state auditor may on request provide advice and
technical assistance to the commission.
Sec. 2119.0003. COMPENSATION. A member of the commission
serves without compensation but is entitled to reimbursement for
actual expenses incurred in performing functions as a member of the
commission, subject to any applicable limitation on reimbursement
provided by general law or the General Appropriations Act.
Sec. 2119.0004. COMMISSION DUTIES. (a) The commission
shall:
(1) meet at least once each year at the call of the
presiding officer; and
(2) study:
(A) the effect of federal fiscal policy on this
state’s economy, including:
(i) the percentage of this state’s budget
currently funded by federal money and the effect that a significant
reduction or elimination of federal funding for state governments
would have on this state’s economy;
(ii) the effect of a political or
market-led default on the United States’ debt obligations on this
state’s economy; and
(iii) the amount of money earned in this
state that is transferred to the federal government as compared to
the amount of federal money received by this state from the federal
government, and the effect of those transfers on businesses in this
state;
(B) the amount of federal money received by each
state agency, and the effect that a significant reduction or
elimination of federal funding for state governments would have on
the continuing operation of, and the delivery of critical services
by, each of those agencies;
(C) the effect of the devaluation of the United
States dollar on this state’s economy, including an examination of:
(i) the effect of a gradual devaluation, a
loss of reserve currency status, or an outright collapse of the
United States dollar on this state’s economy; and
(ii) the advisability of developing a
contingency currency;
(D) the risks presented by acts of economic
terrorism, including:
(i) the effect of power outages caused by
acts of cyberterrorism, including an electromagnetic pulse, on
financial markets and critical infrastructure in this state; and
(ii) the effect of an energy embargo or the
disruption of the food, water, or power supply chain on the ability
of this state and state agencies to continue to provide critical
services; and
(E) any other macroeconomic threat to this
state’s economy the commission considers appropriate.
(b) In conducting the study required by this section, the
commission shall consult with and consider papers authored by
private entities specializing in fiscal risk management readiness
and response. The commission may not rely solely on papers authored
by institutions of higher education.
Sec. 2119.0005. FISCAL RISK MANAGEMENT PLAN. The
commission biennially shall develop and publish a cohesive,
in-depth plan to effectively and efficiently address the effects
and risks identified by the commission in conducting the study
required by Section 2119.0004.
Sec. 2119.0006. REPORT. (a) Not later than September 1 of
each even-numbered year, the commission shall submit a report to
the governor and the legislature based on the commission’s findings
under Section 2119.0004 during the previous two-year period.
(b) The report must include:
(1) a complete explanation of the methods used by the
commission in conducting the financial analysis required by the
study;
(2) a summary of the commission’s findings under
Section 2119.0004 and a copy of the plan created under Section
2119.0005; and
(3) drafts of any proposed legislation needed to
implement the commission’s recommendations.
(4) Following a resolution adopted by either chamber
of the legislature declaring that the right of local self
government has been impaired, per Section 1, Article I, Texas
Constitution, the report shall further include:
(i) an audit to determine the total sum
benefit of federal assistance to any state agency, or all state
agencies;
(ii) the cost to the state to assume any
federal assistance provided to that agency;
(iii) a list of all critical government
functions currently performed or delegated to the federal
government by the state;
(iv) the estimated cost to this state were
it to resume responsibility for that function; and
(v) a detailed financial projection for the
state to assume sole responsibility for each, or every, function.
(c) The first report due under this section must include a
thorough evaluation of this state’s need to develop a contingency
currency in the event of a collapse of the United States dollar.
This subsection expires September 1, 2027.
SECTION 2. (a) Not later than the 60th day after the
effective date of this Act, the governor and, if applicable, the
speaker of the house of representatives and the lieutenant governor
shall make the appointments and designations under Chapter 2119,
Government Code, as added by this Act.
(b) The Fiscal Risk Management Commission shall submit the
first report required by Section 2119.0006, Government Code, as
added by this Act, not later than September 1, 2026.
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. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
