1-1     By:  King of Parker (Senate Sponsor - Sibley)         H.B. No. 2957
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Finance;
 1-4     May 11, 2001, reported favorably by the following vote:  Yeas 11,
 1-5     Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to authorized investments for certain public money.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1. Section 2256.009(a), Government Code, is amended
1-11     to read as follows:
1-12           (a)  Except as provided by Subsection (b), the following are
1-13     authorized investments under this subchapter:
1-14                 (1)  obligations, including letters of credit, of the
1-15     United States or its agencies and instrumentalities;
1-16                 (2)  direct obligations of this state or its agencies
1-17     and instrumentalities;
1-18                 (3)  collateralized mortgage obligations directly
1-19     issued by a federal agency or instrumentality of the United States,
1-20     the underlying security for which is guaranteed by an agency or
1-21     instrumentality of the United States;
1-22                 (4)  other obligations, the principal and interest of
1-23     which are unconditionally guaranteed or insured by, or backed by
1-24     the full faith and credit of, this state or the United States or
1-25     their respective agencies and instrumentalities;
1-26                 (5)  obligations of states, agencies, counties, cities,
1-27     and other political subdivisions of any state rated as to
1-28     investment quality by a nationally recognized investment rating
1-29     firm not less than A or its equivalent; and
1-30                 (6)  bonds issued, assumed, or guaranteed by the State
1-31     of Israel.
1-32           SECTION 2. This Act takes effect September 1, 2001.
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