By Armbrister                                    S.B. No. 325

      75R3086 CAS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to investments by the boards of trustees of local

 1-3     retirement systems for firefighters.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 27(a), Texas Local Fire Fighters

 1-6     Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is

 1-7     amended to read as follows:

 1-8           (a)  A board of trustees established under this Act shall

 1-9     keep a sufficient amount of cash on hand to make payments as they

1-10     become due under the retirement system.  If a board determines that

1-11     the fund of its retirement system contains an amount in excess of

1-12     the amount needed to make payments as they become due, the board

1-13     may invest any portion of the excess [in:]

1-14                 [(1)  bonds or other interest-bearing obligations and

1-15     securities of the United States, the state, or a political

1-16     subdivision of the state;]

1-17                 [(2)  shares and share accounts of savings and loan

1-18     associations to the extent that the shares and share accounts are

1-19     insured by the Federal Savings and Loan Insurance Corporation;]

1-20                 [(3)  first-lien real estate mortgage securities

1-21     insured by the Federal Housing Administration;]

1-22                 [(4)  bonds of companies incorporated within the United

1-23     States;]

1-24                 [(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.