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.

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