1-1                                   AN ACT
 1-2     relating to authorized investments for certain public money.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 2256.009(a), Government Code, is amended
 1-5     to read as follows:
 1-6           (a)  Except as provided by Subsection (b), the following are
 1-7     authorized investments under this subchapter:
 1-8                 (1)  obligations, including letters of credit, of the
 1-9     United States or its agencies and instrumentalities;
1-10                 (2)  direct obligations of this state or its agencies
1-11     and instrumentalities;
1-12                 (3)  collateralized mortgage obligations directly
1-13     issued by a federal agency or instrumentality of the United States,
1-14     the underlying security for which is guaranteed by an agency or
1-15     instrumentality of the United States;
1-16                 (4)  other obligations, the principal and interest of
1-17     which are unconditionally guaranteed or insured by, or backed by
1-18     the full faith and credit of, this state or the United States or
1-19     their respective agencies and instrumentalities;
1-20                 (5)  obligations of states, agencies, counties, cities,
1-21     and other political subdivisions of any state rated as to
1-22     investment quality by a nationally recognized investment rating
1-23     firm not less than A or its equivalent; and
1-24                 (6)  bonds issued, assumed, or guaranteed by the State
 2-1     of Israel.
 2-2           SECTION 2. This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2957 was passed by the House on May
         4, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2957 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor