SRC-JJJ H.B. 1625 76(R)    BILL ANALYSIS


Senate Research CenterH.B. 1625
76R9007 SMJ-DBy: Pitts (Armbrister)
Natural Resources
4/28/1999
Engrossed


DIGEST 

Currently, Texas law does not allow nonprofit water supply corporations the
opportunity to make investments authorized under the Public Funds
Investment Act. The law restricts investments to government-backed bonds
and interest-bearing accounts at a bank or savings and loan association.
H.B. 1625 authorizes nonprofit water supply and sewer service corporations
to have the flexibility to invest in any investment that is authorized by
the Texas Public Funds Investment Act.  

PURPOSE

As proposed, H.B. 1625 authorizes nonprofit water supply  sewer service
corporations to make certain investments. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the heading to Section 67.014, Water Code, as follows:

 Sec. 67.014 New heading: DEPOSITORY FOR FUNDS; PERMITTED INVESTMENTS

SECTION 2. Amends Section 67.014(b), Water Code, to require funds allocated
by the board of directors of a water supply or sewer corporation (board) to
a sinking fund for replacement, amortization of debt, and the payment of
interest that are not required to be spent in the year in which deposited,
to be invested in an investment that is authorized under Chapter 2256A,
Government Code, and by a written investment policy approved by the
nonprofit water supply or sewer service corporation board and that complies
with a written investment strategy approved by the board. 

SECTION 3. Emergency clause.
                      Effective date: upon passage.