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 * * * * *