85R12555 KLA-F
 
  By: Stephenson H.B. No. 2647
 
 
 
A BILL TO BE ENTITLED
 
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; and
               (7)  interest-bearing banking deposits or other
  obligations 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.
         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.