SRC-ARR S.B. 736 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 736
76R6702 SMJ-DBy: Armbrister
Natural Resources
3/29/1999
As Filed


DIGEST 

Currently, Texas law does not allow nonprofit water supply corporations the
opportunity to make investments authorized under the Public Funds
Investment Act. The laws restrict investments to government-backed bonds
and interest bearing accounts at a bank or saving and loan association.
S.B. 736 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, S.B. 736 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 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,
and further, 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.