Committee adopts substitute revising ESF financing language after Comptroller input on TWIA provisions

Senator Kolkhorst explained the committee substitute to House Bill 36 89, legislation concerning the use of the Economic Stabilization Fund (ESF) and financing arrangements to support the Texas Windstorm Insurance Association (TWIA) and other financing needs. She said the substitute makes technical changes requested by the Comptroller of Public Accounts to ensure the language accurately reflects the comptroller’s investment authority under the Government Code and to ensure that ESF obligations and balances are protected.

"The substitute replaces loan or debt obligation with financing arrangement or investment agreement to reflect the use of the comptroller's investment authority more accurately under government code 4040242," the sponsor said, noting added protections so the ESF retains a sufficient balance for financing arrangements and to ensure no new state debt is created. The sponsor said most changes were protective and technical, aimed at avoiding new liability for the state while permitting financing arrangements.

Committee members had no further questions on the substitute. Senator Kolkhorst moved adoption of the committee substitute and the committee recorded 10 ayes and 0 nays; the committee substitute to House Bill 36 89 was favorably reported to the full Senate.