82R9798 PAM-D
 
  By: Wentworth S.B. No. 1543
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of independent school districts to invest
  in corporate bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 2256, Government Code, is
  amended by adding Section 2256.0204 to read as follows:
         Sec. 2256.0204.  AUTHORIZED INVESTMENTS: INDEPENDENT SCHOOL
  DISTRICTS. (a) This section applies only to an independent school
  district with an average daily attendance as determined under
  Section 42.005, Education Code, of at least 50,000.
         (b)  In addition to authorized investments permitted by this
  subchapter, an independent school district subject to this section
  may purchase, sell, and invest its funds and funds under its control
  in corporate bonds, debentures, or similar debt obligations rated
  by a nationally recognized investment rating firm in one of the two
  highest long-term rating categories, without regard to gradations
  within those categories.
         SECTION 2.  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, 2011.