By:  Armbrister                                        S.B. No. 736
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the investment of funds of a nonprofit water supply or
 1-2     sewer service corporation.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  The heading to Section 67.014, Water Code, is
 1-5     amended to read as follows:
 1-6           Sec. 67.014.  DEPOSITORY FOR [OF] FUNDS; PERMITTED
 1-7     INVESTMENTS.
 1-8           SECTION 2.  Subsection (b), Section 67.014, Water Code, is
 1-9     amended to read as follows:
1-10           (b)  Funds allocated by the board to a sinking fund for
1-11     replacement, amortization of debts, and the payment of interest
1-12     that are not required to be spent in the year in which deposited
1-13     shall be:
1-14                 (1)  invested in bonds or other evidence of
1-15     indebtedness of the United States;
1-16                 (2)  placed with the depository in an interest-bearing
1-17     savings account; [or]
1-18                 (3)  invested in shares or share accounts in a savings
1-19     and loan association insured by the Federal Deposit Insurance
1-20     Corporation; or
1-21                 (4)  invested in an investment that is authorized under
1-22     Subchapter A, Chapter 2256, Government Code, and by a written
1-23     investment policy approved by the board and that complies with a
1-24     written investment strategy approved by the board.
 2-1           SECTION 3.  The importance of this legislation and the
 2-2     crowded condition of the calendars in both houses create an
 2-3     emergency and an imperative public necessity that the
 2-4     constitutional rule requiring bills to be read on three several
 2-5     days in each house be suspended, and this rule is hereby suspended,
 2-6     and that this Act take effect and be in force from and after its
 2-7     passage, and it is so enacted.