LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                        February 17, 1995



 TO:     Honorable Barry Telford, Chair         IN RE:  House Bill No. 731
         Committee on Pensions & Investments            By:  Allen
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
731 (Relating to the investment of funds of a local government or
an institution of higher education.) this office has determined
the following:

The bill would expand the investment authority of a local
government or an institution of higher education under the Public
Funds Investment Act by adding the authority to invest in share
certificates issued by a state or federal credit union domiciled
in this state, provided the share certificates are guaranteed or
insured as specified.


No fiscal implication to the State or units of local government
is anticipated.


Source:   The University of Texas System
          LBB Staff: JK, LS, RR