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A BILL TO BE ENTITLED
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AN ACT
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relating to authorized investments of public funds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2256.009(a), Government Code, is amended |
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to read as follows: |
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(a) Except as provided by Subsection (b), the following are |
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authorized investments under this subchapter: |
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(1) obligations, including letters of credit, of the |
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United States or its agencies and instrumentalities; |
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(2) direct obligations of this state or its agencies |
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and instrumentalities; |
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(3) collateralized mortgage obligations directly |
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issued by a federal agency or instrumentality of the United States, |
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the underlying security for which is guaranteed by an agency or |
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instrumentality of the United States; |
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(4) other obligations, the principal and interest of |
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which are unconditionally guaranteed or insured by, or backed by |
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the full faith and credit of, this state or the United States or |
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their respective agencies and instrumentalities, including |
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obligations that are fully guaranteed or insured by the Federal |
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Deposit Insurance Corporation or by the explicit full faith and |
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credit of the United States; |
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(5) obligations of states, agencies, counties, |
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cities, and other political subdivisions of any state rated as to |
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investment quality by a nationally recognized investment rating |
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firm not less than A or its equivalent; [and] |
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(6) bonds issued, assumed, or guaranteed by the State |
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of Israel; and |
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(7) interest-bearing banking deposits or other |
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obligations that are guaranteed or insured by: |
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(A) the Federal Deposit Insurance Corporation or |
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its successor; or |
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(B) the National Credit Union Share Insurance |
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Fund or its successor. |
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SECTION 2. The changes in law made by this Act apply only to |
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authorized investments of public funds governed by Section |
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2256.009, Government Code, as amended by this Act, that are made on |
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or after the effective date of this Act. An authorized investment |
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of public funds made before the effective date of this Act is |
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governed by the law in effect immediately before that date, and that |
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law is continued in effect for that purpose. |
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SECTION 3. 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, 2017. |