1-1  By:  Allen, et al. (Senate Sponsor - Harris)           H.B. No. 731
    1-2        (In the Senate - Received from the House March 27, 1995;
    1-3  March 29, 1995, read first time and referred to Committee on State
    1-4  Affairs; April 7, 1995, reported favorably by the following vote:
    1-5  Yeas 10, Nays 0; April 7, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the investment of funds of a local government or an
    1-9  institution of higher education.
   1-10        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  Section 2256.007, Government Code, is amended to
   1-12  read as follows:
   1-13        Sec. 2256.007.  AUTHORIZED INVESTMENTS:  CERTIFICATES OF
   1-14  DEPOSIT AND SHARE CERTIFICATES.   A certificate of deposit or share
   1-15  certificate is an authorized investment under this subchapter if
   1-16  the certificate <of deposit> is issued by a state or national bank
   1-17  domiciled in this state, <or> a savings and loan association
   1-18  domiciled in this state, or a state or federal credit union
   1-19  domiciled in this state and is:
   1-20              (1)  guaranteed or insured by the Federal Deposit
   1-21  Insurance Corporation or its successor or the National Credit Union
   1-22  Share Insurance Fund or its successor;
   1-23              (2)  secured by obligations that are described by
   1-24  Section 2256.006, including mortgage backed securities directly
   1-25  issued by a federal agency or instrumentality that have a market
   1-26  value of not less than the principal amount of the certificates; or
   1-27              (3)  secured in any other manner and amount provided by
   1-28  law for deposits of the investing entity.
   1-29        SECTION 2.  The importance of this legislation and the
   1-30  crowded condition of the calendars in both houses create an
   1-31  emergency and an imperative public necessity that the
   1-32  constitutional rule requiring bills to be read on three several
   1-33  days in each house be suspended, and this rule is hereby suspended,
   1-34  and that this Act take effect and be in force from and after its
   1-35  passage, and it is so enacted.
   1-36                               * * * * *