Amend HB 2841 in SECTION 7.31 of the bill by striking amended
Sections 404.024(b) and (f), Government Code (introduced version,
page 57, line 9, through page 58, line 22) and substituting the
following:
      (b)  State funds not deposited in state depositories shall be
invested by the comptroller <treasurer> in:
            (1)  direct security repurchase agreements;
            (2)  reverse security repurchase agreements;
            (3)  direct obligations of or obligations the principal
and interest of which are guaranteed by the United States;
            (4)  direct obligations of or obligations guaranteed by
agencies or instrumentalities of the United States government;
            (5)  bankers' acceptances that:
                  (A)  are eligible for purchase by the Federal
Reserve System;
                  (B)  do not exceed 270 days to maturity; and
                  (C)  are issued by a bank that has received the
highest short-term credit rating by a nationally recognized
investment rating firm;
            (6)  commercial paper that:
                  (A)  does not exceed 270 days to maturity; and
                  (B)  except as provided by Subsection (i), has
received the highest short-term credit rating by a nationally
recognized investment rating firm;
            (7)  contracts written by the treasury in which the
treasury grants the purchaser the right to purchase securities in
the treasury's marketable securities portfolio at a specified price
over a specified period and for which the treasury is paid a fee
and specifically prohibits naked-option or uncovered option
trading;
            (8)  direct obligations of or obligations guaranteed by
the Inter-American Development Bank, the International Bank for
Reconstruction and Development (the World Bank), the African
Development Bank, the Asian Development Bank, and the International
Finance Corporation that have received the highest credit rating by
a nationally recognized investment rating firm;
            (9)  bonds issued, assumed, or guaranteed by the State
of Israel;
            (10)  obligations of a state or an agency, county,
city, or other political subdivision of a state; and
            (11)  mutual funds secured by obligations that are
described by Subdivisions (1) through (6).
      (f)  The comptroller <treasurer> by rule may define
derivative investments other than those described by Subsection
(e).  The treasury may not purchase investments defined by rule
adopted under this subsection in an amount that at the time of
purchase will cause the aggregate value of the investments to
exceed five percent of the treasury's total investments.