1-1           By:  Armbrister                                  S.B. No. 481

 1-2           (In the Senate - Filed February 6, 1997; February 11, 1997,

 1-3     read first time and referred to Committee on Intergovernmental

 1-4     Relations; February 27, 1997, reported favorably by the following

 1-5     vote:  Yeas 7, Nays 3; February 27, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to investment of the volunteer Fire Fighters' Relief and

 1-9     Retirement Fund.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subsection (b), Section 14, Texas Statewide

1-12     Volunteer Fire Fighters Retirement Act (Article 6243e.3, Vernon's

1-13     Texas Civil Statutes), is amended to read as follows:

1-14           (b)  In making investments of the fund, the commissioner and

1-15     the state board of trustees shall exercise the judgment and care,

1-16     under the circumstances prevailing at the time of the investment,

1-17     that persons of ordinary prudence, discretion, and intelligence

1-18     exercise in the management of their own affairs, not in speculation

1-19     but when making a permanent disposition of their funds, considering

1-20     the probable income from the disposition and the probable safety of

1-21     their capital [The surplus may be invested in:]

1-22                 [(1)  bonds or other interest-bearing obligations and

1-23     securities issued by governmental entities;]

1-24                 [(2)  shares or share accounts of savings and loan

1-25     associations insured by the Federal Savings and Loan Insurance

1-26     Corporation;]

1-27                 [(3)  shares and share accounts of banks insured by the

1-28     Federal Deposit Insurance Corporation;]

1-29                 [(4)  first lien real estate mortgage securities

1-30     insured by the Federal Housing Administration under the National

1-31     Housing Act, as amended;]

1-32                 [(5)  investments made by a life insurance company in

1-33     order to effect a group annuity contract;]

1-34                 [(6)  corporation bonds, preferred stocks, and common

1-35     stocks;]

1-36                 [(7)  mutual funds; and]

1-37                 [(8)  international stocks traded as American

1-38     depository receipts].

1-39           SECTION 2.  The importance of this legislation and the

1-40     crowded condition of the calendars in both houses create an

1-41     emergency and an imperative public necessity that the

1-42     constitutional rule requiring bills to be read on three several

1-43     days in each house be suspended, and this rule is hereby suspended,

1-44     and that this Act take effect and be in force from and after its

1-45     passage, and it is so enacted.

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