By Allen, et al.                                       H.B. No. 731
       74R2727 PAM-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the investment of funds of a local government or an
    1-3  institution of higher education.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 2256.007, Government Code, is amended to
    1-6  read as follows:
    1-7        Sec. 2256.007.  AUTHORIZED INVESTMENTS:  CERTIFICATES OF
    1-8  DEPOSIT AND SHARE CERTIFICATES.   A certificate of deposit or share
    1-9  certificate is an authorized investment under this subchapter if
   1-10  the certificate <of deposit> is issued by a state or national bank
   1-11  domiciled in this state, <or> a savings and loan association
   1-12  domiciled in this state, or a state or federal credit union
   1-13  domiciled in this state and is:
   1-14              (1)  guaranteed or insured by the Federal Deposit
   1-15  Insurance Corporation or its successor or the National Credit Union
   1-16  Share Insurance Fund or its successor;
   1-17              (2)  secured by obligations that are described by
   1-18  Section 2256.006, including mortgage backed securities directly
   1-19  issued by a federal agency or instrumentality that have a market
   1-20  value of not less than the principal amount of the certificates; or
   1-21              (3)  secured in any other manner and amount provided by
   1-22  law for deposits of the investing entity.
   1-23        SECTION 2.  The importance of this legislation and the
   1-24  crowded condition of the calendars in both houses create an
    2-1  emergency and an imperative public necessity that the
    2-2  constitutional rule requiring bills to be read on three several
    2-3  days in each house be suspended, and this rule is hereby suspended,
    2-4  and that this Act take effect and be in force from and after its
    2-5  passage, and it is so enacted.