1-1 By: Kuempel (Senate Sponsor - Armbrister) H.B. No. 803
1-2 (In the Senate - Received from the House March 26, 1997;
1-3 April 2, 1997, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 15, 1997, reported favorably by
1-5 the following vote: Yeas 11, Nays 0; May 15, 1997, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to investment of the volunteer firefighters' relief and
1-10 retirement fund.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 14(b), Texas Statewide Volunteer Fire
1-13 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
1-14 Statutes), is amended to read as follows:
1-15 (b) In making investments of the fund, the commissioner and
1-16 the state board of trustees shall exercise the judgment and care,
1-17 under the circumstances prevailing at the time of the investment,
1-18 that persons of ordinary prudence, discretion, and intelligence
1-19 exercise in the management of their own affairs, not in speculation
1-20 but when making a permanent disposition of their funds, considering
1-21 the probable income from the disposition and the probable safety of
1-22 their capital [The surplus may be invested in:]
1-23 [(1) bonds or other interest-bearing obligations and
1-24 securities issued by governmental entities;]
1-25 [(2) shares or share accounts of savings and loan
1-26 associations insured by the Federal Savings and Loan Insurance
1-27 Corporation;]
1-28 [(3) shares and share accounts of banks insured by the
1-29 Federal Deposit Insurance Corporation;]
1-30 [(4) first lien real estate mortgage securities
1-31 insured by the Federal Housing Administration under the National
1-32 Housing Act, as amended;]
1-33 [(5) investments made by a life insurance company in
1-34 order to effect a group annuity contract;]
1-35 [(6) corporation bonds, preferred stocks, and common
1-36 stocks;]
1-37 [(7) mutual funds; and]
1-38 [(8) international stocks traded as American
1-39 depository receipts].
1-40 SECTION 2. The importance of this legislation and the
1-41 crowded condition of the calendars in both houses create an
1-42 emergency and an imperative public necessity that the
1-43 constitutional rule requiring bills to be read on three several
1-44 days in each house be suspended, and this rule is hereby suspended,
1-45 and that this Act take effect and be in force from and after its
1-46 passage, and it is so enacted.
1-47 * * * * *