1-1     By:  Counts, et al. (Senate Sponsor - Shapleigh)      H.B. No. 1722
 1-2           (In the Senate - Received from the House April 21, 1999;
 1-3     April 22, 1999, read first time and referred to Committee on
 1-4     Finance; April 27, 1999, reported favorably by the following vote:
 1-5     Yeas 9, Nays 0; April 27, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to investment of money in the veterans' land fund.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Section 161.173(a), Natural Resources Code, is
1-11     amended to read as follows:
1-12           (a)  Money in the fund that is not immediately committed to
1-13     paying principal of and interest on the bonds, to the purchase of
1-14     land, or to the payment of expenses as provided in this chapter may
1-15     be invested in:
1-16                 (1)  direct security repurchase agreements and reverse
1-17     security repurchase agreements made with state or national banks
1-18     domiciled in this state or with primary dealers as approved by the
1-19     Federal Reserve System;
1-20                 (2)  direct obligations of or obligations the principal
1-21     and interest of which are guaranteed by the United States;
1-22                 (3)  direct obligations of or obligations guaranteed by
1-23     the Federal Home Loan Banks, the Federal National Mortgage
1-24     Association, the Federal Farm Credit System, the Student Loan
1-25     Marketing Association, the Federal Home Loan Mortgage Corporation,
1-26     or a successor organization to one of those organizations;
1-27                 (4)  bankers' acceptances that:
1-28                       (A)  are eligible for purchase by members of the
1-29     Federal Reserve System;
1-30                       (B)  do not exceed 270 days to maturity; and
1-31                       (C)  are issued by a bank that has received the
1-32     highest short-term credit rating by a nationally recognized
1-33     investment rating firm;
1-34                 (5)  commercial paper that:
1-35                       (A)  does not exceed 270 days to maturity; and
1-36                       (B)  has received the highest short-term credit
1-37     rating by a nationally recognized investment rating firm;
1-38                 (6)  contracts written by the board in which the board
1-39     grants the purchaser the right to purchase securities in the
1-40     board's marketable securities portfolio at a specified price over a
1-41     specified period and for which the board is paid a fee and
1-42     specifically prohibits naked-option or uncovered option trading;
1-43                 (7)  obligations of a state or an agency, county, city,
1-44     or other political subdivision of a state, including revenue bonds
1-45     issued under Chapter 164, and mutual funds composed of these
1-46     obligations;
1-47                 (8)  an investment instrument, obligation, or other
1-48     evidence of indebtedness the payment of which is directly or
1-49     indirectly guaranteed by the full faith and credit of the United
1-50     States;
1-51                 (9)  an investment, account, depository receipt, or
1-52     deposit that is fully:
1-53                       (A)  insured by the Federal Deposit Insurance
1-54     Corporation, the Federal Savings and Loan Insurance Corporation, or
1-55     a successor organization to one of those organizations; or
1-56                       (B)  secured by securities described by
1-57     Subdivision (2), (3), or (8) of this subsection;
1-58                 (10)  a collateralized mortgage obligation fully
1-59     secured by securities or mortgages issued or guaranteed by the
1-60     Government National Mortgage Association (GNMA) or any entity
1-61     described by Subdivision (3) of this subsection;
1-62                 (11)  a security or evidence of indebtedness issued by
1-63     the Farm Credit System Financial Assistance Corporation, the
1-64     Private Export Funding Corporation, or the Export-Import Bank; and
 2-1                 (12)  any other investment authorized for investment of
 2-2     state funds by the comptroller under Section 404.024, Government
 2-3     Code.
 2-4           SECTION 2.  The importance of this legislation and the
 2-5     crowded condition of the calendars in both houses create an
 2-6     emergency and an imperative public necessity that the
 2-7     constitutional rule requiring bills to be read on three several
 2-8     days in each house be suspended, and this rule is hereby suspended,
 2-9     and that this Act take effect and be in force from and after its
2-10     passage, and it is so enacted.
2-11                                  * * * * *