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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of independent school districts to invest |
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in corporate bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2256, Government Code, is |
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amended by adding Section 2256.0204 to read as follows: |
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Sec. 2256.0204. AUTHORIZED INVESTMENTS: INDEPENDENT SCHOOL |
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DISTRICTS. (a) This section applies only to an independent school |
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district that qualifies as an issuer as defined by Section |
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1371.001. |
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(b) In addition to authorized investments permitted by this |
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subchapter, an independent school district subject to this section |
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may purchase, sell, and invest its funds and funds under its control |
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in corporate bonds, debentures, or similar debt obligations that: |
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(1) are rated by a nationally recognized investment |
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rating firm in one of the two highest long-term rating categories, |
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without regard to gradations within those categories; and |
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(2) have a stated final maturity date that is not later |
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than the third anniversary of the date on which the debt obligations |
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were purchased or invested in. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |