By Marchant                                           H.B. No. 2995
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain public funds investment pools.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter A, Chapter 2256, Government Code, is
    1-5  amended by adding Sections 2256.0142, 2256.0143, and 2256.0144 to
    1-6  read as follows:
    1-7        Sec. 2256.0142.  PORTFOLIO OF CERTAIN INVESTMENT POOLS.  The
    1-8  portfolio of a public funds investment pool created under Chapter
    1-9  791 and managed by a state agency must be market to market daily
   1-10  and stabilize, to the extent reasonably possible, at a $1 net asset
   1-11  value.  If the ratio of the market value of the portfolio divided
   1-12  by the book value of the portfolio is less than 0.995 or greater
   1-13  than 1.005, portfolio holdings shall be sold as necessary to
   1-14  maintain the ratio between 0.995 and 1.005.
   1-15        Sec. 2256.0143.  ADVISORY BOARD OF CERTAIN INVESTMENT POOLS.
   1-16  A public funds investment pool created under Chapter 791 and
   1-17  managed by a state agency shall establish an advisory board
   1-18  composed of participants in the pool and other persons who do not
   1-19  have a business relationship with the pool.  A board member must be
   1-20  qualified to advise the pool.
   1-21        Sec. 2256.0144.  RATING OF CERTAIN INVESTMENT POOLS.  A
   1-22  public funds investment pool created under Chapter 791 and managed
   1-23  by a state agency must be rated as "AAA" or better by Standard and
    2-1  Poor's rating service or at an equivalent rating by another
    2-2  nationally recognized rating service.
    2-3        SECTION 2.  This Act takes effect September 1, 1995.
    2-4        SECTION 3.  The importance of this legislation and the
    2-5  crowded condition of the calendars in both houses create an
    2-6  emergency and an imperative public necessity that the
    2-7  constitutional rule requiring bills to be read on three several
    2-8  days in each house be suspended, and this rule is hereby suspended.