LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 3, 1995



 TO:     Honorable Barry Telford, Chair         IN RE:  House Bill No. 2459
         Committee on Pensions & Investments            By: Marchant,
         House of Representatives               Junell,
         Austin, Texas                                          Greenberg








FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2459 (relating to public funds investment) this office has
determined the following:

The bill would amend the Public Funds Investment Act and would
require that governmental entities adopt a written investment
policy regarding the investment of its funds.  The investments
would be governed by preservation and safety of principal,
liquidity, and yield.  The investment officer would be required
to submit to the governing body of the entity an investment
transaction report, at least monthly. The bill would specify
authorized investments which are obligations of, or guaranteed
by, governmental entities and would detail requirements of such
investments.


The fiscal implication to the State or units of local government
cannot be determined.


Source:   Texas Public Finance Authority, Bond Review Board
          LBB Staff: JK, LP, RR