Bill Text: TX HB2647 | 2017-2018 | 85th Legislature | Enrolled


Bill Title: Relating to authorized investments of public funds.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2017-06-15 - Effective immediately [HB2647 Detail]

Download: Texas-2017-HB2647-Enrolled.html
 
 
  H.B. No. 2647
 
 
 
 
AN ACT
  relating to authorized investments of public funds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2256.009(a), Government Code, is amended
  to read as follows:
         (a)  Except as provided by Subsection (b), the following are
  authorized investments under this subchapter:
               (1)  obligations, including letters of credit, of the
  United States or its agencies and instrumentalities;
               (2)  direct obligations of this state or its agencies
  and instrumentalities;
               (3)  collateralized mortgage obligations directly
  issued by a federal agency or instrumentality of the United States,
  the underlying security for which is guaranteed by an agency or
  instrumentality of the United States;
               (4)  other obligations, the principal and interest of
  which are unconditionally guaranteed or insured by, or backed by
  the full faith and credit of, this state or the United States or
  their respective agencies and instrumentalities, including
  obligations that are fully guaranteed or insured by the Federal
  Deposit Insurance Corporation or by the explicit full faith and
  credit of the United States;
               (5)  obligations of states, agencies, counties,
  cities, and other political subdivisions of any state rated as to
  investment quality by a nationally recognized investment rating
  firm not less than A or its equivalent; [and]
               (6)  bonds issued, assumed, or guaranteed by the State
  of Israel;
               (7)  interest-bearing banking deposits that are
  guaranteed or insured by:
                     (A)  the Federal Deposit Insurance Corporation or
  its successor; or
                     (B)  the National Credit Union Share Insurance
  Fund or its successor; and
               (8)  interest-bearing banking deposits other than
  those described by Subdivision (7) if:
                     (A)  the funds invested in the banking deposits
  are invested through:
                           (i)  a broker with a main office or branch
  office in this state that the investing entity selects from a list
  the governing body or designated investment committee of the entity
  adopts as required by Section 2256.025; or
                           (ii)  a depository institution with a main
  office or branch office in this state that the investing entity
  selects;
                     (B)  the broker or depository institution
  selected as described by Paragraph (A) arranges for the deposit of
  the funds in the banking deposits in one or more federally insured
  depository institutions, regardless of where located, for the
  investing entity's account;
                     (C)  the full amount of the principal and accrued
  interest of the banking deposits is insured by the United States or
  an instrumentality of the United States; and
                     (D)  the investing entity appoints as the entity's
  custodian of the banking deposits issued for the entity's account:
                           (i)  the depository institution selected as
  described by Paragraph (A);
                           (ii)  an entity described by Section
  2257.041(d); or
                           (iii)  a clearing broker dealer registered
  with the Securities and Exchange Commission and operating under
  Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section
  240.15c3-3).
         SECTION 2.  The changes in law made by this Act apply only to
  authorized investments of public funds governed by Section
  2256.009, Government Code, as amended by this Act, that are made on
  or after the effective date of this Act. An authorized investment
  of public funds made before the effective date of this Act is
  governed by the law in effect immediately before that date, and that
  law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2647 was passed by the House on April
  20, 2017, by the following vote:  Yeas 144, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2647 was passed by the Senate on May
  19, 2017, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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