1-1     By:  Armbrister                                        S.B. No. 736
 1-2           (In the Senate - Filed February 26, 1999; March 1, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 6, 1999, reported favorably by the following vote:  Yeas 6,
 1-5     Nays 0; April 6, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the investment of funds of a nonprofit water supply or
 1-9     sewer service corporation.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  The heading to Section 67.014, Water Code, is
1-12     amended to read as follows:
1-13           Sec. 67.014.  DEPOSITORY FOR [OF] FUNDS; PERMITTED
1-14     INVESTMENTS.
1-15           SECTION 2.  Subsection (b), Section 67.014, Water Code, is
1-16     amended to read as follows:
1-17           (b)  Funds allocated by the board to a sinking fund for
1-18     replacement, amortization of debts, and the payment of interest
1-19     that are not required to be spent in the year in which deposited
1-20     shall be:
1-21                 (1)  invested in bonds or other evidence of
1-22     indebtedness of the United States;
1-23                 (2)  placed with the depository in an interest-bearing
1-24     savings account; [or]
1-25                 (3)  invested in shares or share accounts in a savings
1-26     and loan association insured by the Federal Deposit Insurance
1-27     Corporation; or
1-28                 (4)  invested in an investment that is authorized under
1-29     Subchapter A, Chapter 2256, Government Code, and by a written
1-30     investment policy approved by the board and that complies with a
1-31     written investment strategy approved by the board.
1-32           SECTION 3.  The importance of this legislation and the
1-33     crowded condition of the calendars in both houses create an
1-34     emergency and an imperative public necessity that the
1-35     constitutional rule requiring bills to be read on three several
1-36     days in each house be suspended, and this rule is hereby suspended,
1-37     and that this Act take effect and be in force from and after its
1-38     passage, and it is so enacted.
1-39                                  * * * * *