78R4443 JJT-D

By:  King                                                         H.B. No. 1109



A BILL TO BE ENTITLED

AN ACT

relating to collateral eligible to be pledged with the comptroller 
to secure state deposits.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 404.0221(b) and (d), Government Code, 
are amended to read as follows:
	(b)  For the purposes of Section 404.022, collateral 
eligible to be pledged with the comptroller to secure state 
deposits includes:
		(1)  direct obligations of or obligations the principal 
and interest of which are guaranteed by the United States 
government;
		(2)  direct obligations of or obligations guaranteed by 
agencies or instrumentalities of the United States government, 
including letters of credit; and
		(3)  a general or special obligation issued by a public 
agency and approved by the attorney general that is payable from 
taxes, revenues, or both.
	(d)  Eligible collateral includes only:                                 
		(1)  a security with fixed, stated rates; or                    
		(2)  a letter of credit described by Subsection (b)(2) 
for a stated amount.
	SECTION 2.  This Act takes effect September 1, 2003.