By King of Parker                                     H.B. No. 2957
         77R8465 JJT-D                           
                                A BILL TO BE ENTITLED
 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.