HB4857 - Relating to the creation of the Fiscal Risk Management Commission.

      By: Hopper H.B. No. 4857       A BILL TO BE ENTITLED   AN ACT   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.