BILL ANALYSIS H.B. 2103 By: Jackson, Jim Ways & Means Committee Report (Unamended) BACKGROUND AND PURPOSE There are concerns that current law does not adequately define "eligible security" for the purposes of establishing the forms of collateral required to secure a deposit of public funds under the Public Funds Collateral Act. H.B. 2103 seeks to address such concerns by expanding the definition of "eligible security" to include a letter of credit issued by a federal home loan bank. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 2103 amends the Government Code to redefine "eligible security," for purposes of establishing the forms of collateral required to secure a deposit of public funds under the Public Funds Collateral Act, to include a letter of credit issued by a federal loan bank. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2011.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 2103
By: Jackson, Jim
Ways & Means
Committee Report (Unamended)
H.B. 2103
By: Jackson, Jim
Ways & Means
Committee Report (Unamended)
BACKGROUND AND PURPOSE There are concerns that current law does not adequately define "eligible security" for the purposes of establishing the forms of collateral required to secure a deposit of public funds under the Public Funds Collateral Act. H.B. 2103 seeks to address such concerns by expanding the definition of "eligible security" to include a letter of credit issued by a federal home loan bank.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 2103 amends the Government Code to redefine "eligible security," for purposes of establishing the forms of collateral required to secure a deposit of public funds under the Public Funds Collateral Act, to include a letter of credit issued by a federal loan bank.
EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2011.
BACKGROUND AND PURPOSE
There are concerns that current law does not adequately define "eligible security" for the purposes of establishing the forms of collateral required to secure a deposit of public funds under the Public Funds Collateral Act. H.B. 2103 seeks to address such concerns by expanding the definition of "eligible security" to include a letter of credit issued by a federal home loan bank.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 2103 amends the Government Code to redefine "eligible security," for purposes of establishing the forms of collateral required to secure a deposit of public funds under the Public Funds Collateral Act, to include a letter of credit issued by a federal loan bank.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2011.