AN ACT

 1-1     relating to investments by the boards of trustees of local

 1-2     retirement systems for firefighters.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (a), Section 27, Texas Local Fire

 1-5     Fighters Retirement Act (Article 6243e, Vernon's Texas Civil

 1-6     Statutes), is amended to read as follows:

 1-7           (a)  A board of trustees established under this Act shall

 1-8     keep a sufficient amount of cash on hand to make payments as they

 1-9     become due under the retirement system.  If a board determines that

1-10     the fund of its retirement system contains an amount in excess of

1-11     the amount needed to make payments as they become due, the board

1-12     may invest any portion of the excess [in:]

1-13                 [(1)  bonds or other interest-bearing obligations and

1-14     securities of the United States, the state, or a political

1-15     subdivision of the state;]

1-16                 [(2)  shares and share accounts of savings and loan

1-17     associations to the extent that the shares and share accounts are

1-18     insured by the Federal Savings and Loan Insurance Corporation;]

1-19                 [(3)  first-lien real estate mortgage securities

1-20     insured by the Federal Housing Administration;]

1-21                 [(4)  bonds of companies incorporated within the United

1-22     States;]

1-23                 [(5)  common and preferred stocks of companies

 2-1     incorporated within the United States that, unless the stocks are

 2-2     bank or insurance stocks, are listed on an exchange registered with

 2-3     the Securities and Exchange Commission or its successor;]

 2-4                 [(6)  guaranteed investment contracts offered by

 2-5     insurance companies;]

 2-6                 [(7)  money market funds;]

 2-7                 [(8)  mutual funds and other pooled funds;]

 2-8                 [(9)  international stocks traded as American

 2-9     depository receipts; and]

2-10                 [(10)  over-the-counter stocks].

2-11           SECTION 2.  The importance of this legislation and the

2-12     crowded condition of the calendars in both houses create an

2-13     emergency and an imperative public necessity that the

2-14     constitutional rule requiring bills to be read on three several

2-15     days in each house be suspended, and this rule is hereby suspended,

2-16     and that this Act take effect and be in force from and after its

2-17     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 325 passed the Senate on

         February 25, 1997, by the following vote:  Yeas 30, Nays 0; and

         that the Senate concurred in House amendment on May 27, 1997, by

         the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 325 passed the House, with

         amendment, on April 8, 1997, by the following vote:  Yeas 145,

         Nays 0, one present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor