By Junell                                             H.B. No. 1215
       74R5288 RJA-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to investments by state agencies and political
    1-3  subdivisions.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter B, Chapter 2256, Government Code, is
    1-6  amended by adding Section 2256.0521 to read as follows:
    1-7        Sec. 2256.0521.  INVESTMENT STRATEGY; INVESTMENT REPORT.  (a)
    1-8  A state agency or political subdivision investing local funds shall
    1-9  adopt an investment strategy governing the investment of those
   1-10  funds.  An investment strategy must describe the investment
   1-11  objectives of the agency or political subdivision using the
   1-12  following priorities:
   1-13              (1)  suitability of the investment to the financial
   1-14  requirements of the agency or political subdivision;
   1-15              (2)  safety of principal;
   1-16              (3)  liquidity;
   1-17              (4)  marketability;
   1-18              (5)  diversification; and
   1-19              (6)  yield.
   1-20        (b)  The state agency or political subdivision shall submit a
   1-21  monthly investment report to the governing body of the agency or
   1-22  political subdivision.   The report must state:
   1-23              (1)  the carrying value of each individual investment
   1-24  as of the date of the report;
    2-1              (2)  the market value of each individual investment as
    2-2  of the date of the report;
    2-3              (3)  the maturity date of each individual investment;
    2-4  and
    2-5              (4)  the account or fund in the agency or subdivision
    2-6  budget that was the source of the money for each individual
    2-7  investment.
    2-8        (c)  In this section:
    2-9              (1)  "Carrying value" means the total cost of an
   2-10  investment plus or minus amortization or accretion.
   2-11              (2)  "Market value" means the face or par value
   2-12  multiplied by the dollar price of the security.
   2-13        SECTION 2.  This Act takes effect September 1, 1995.
   2-14        SECTION 3.  The importance of this legislation and the
   2-15  crowded condition of the calendars in both houses create an
   2-16  emergency and an imperative public necessity that the
   2-17  constitutional rule requiring bills to be read on three several
   2-18  days in each house be suspended, and this rule is hereby suspended.