S.B. No. 996




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.  Subsections (b) and (d), Section 404.0221, 
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.                           

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 996 passed the Senate on 
April 3, 2003, by the following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 996 passed the House on 
May 10, 2003, by a non-record vote.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor