Texas 2011 - 82nd Regular

Texas House Bill HB2349

Filed
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the authority of independent school districts to invest in corporate bonds.

Impact

If enacted, HB2349 would impact state laws concerning the investment capabilities of independent school districts, creating a framework for them to diversify their investment portfolios. This could enable districts to increase their revenue and financial stability through investments that were previously restricted, offering them more flexibility in managing their finances while adhering to investment standards. The bill emphasizes responsible investment by stipulating that eligible securities must have a favorable rating and a maturity date not exceeding three years from the investment date.

Summary

House Bill 2349 aims to expand the investment authority of independent school districts in Texas by allowing them to invest in corporate bonds. This legislative move modifies the Government Code to include corporate bonds, debentures, or similar debt obligations as authorized investments, provided they meet certain criteria, such as having a high credit rating from a nationally recognized investment rating firm. This change seeks to enhance the financial strategies available to school districts, potentially leading to better funding for educational activities and services.

Contention

There may be points of contention regarding the increased investment authority granted to school districts. Critics could argue that allowing school districts to invest in corporate bonds presents risks associated with market volatility and may divert focus from traditional funding mechanisms. Supporters, on the other hand, may contend that this legislative change opens up new revenue streams, enhances financial management, and aligns school districts with practices used in the private sector. Ultimately, the discourse surrounding HB2349 could center on balancing investment opportunities with the inherent risks and responsibilities of managing public funds.

Companion Bills

TX SB1543

Identical Relating to the authority of an independent school district to invest in corporate bonds.

Previously Filed As

TX SB1246

Relating to authorized investments of public money by certain governmental entities and the confidentiality of certain information related to those investments.

TX HB3495

Relating to the investment authority of certain state agencies and the confidentiality of certain information related to those investments.

TX HB3899

Relating to the issuance of bonds by certain local government corporations.

TX HB2285

Relating to the authority of certain independent school districts to change the terms for members of the districts' board of trustees.

TX SB1546

Relating to the authority of certain special districts and corporations created by certain special districts to exercise certain rights and powers outside district boundaries.

TX HB4993

Relating to the authority of a development corporation created by the Gulf Coast Authority to finance certain projects.

TX HB5039

Relating to the governance and number of trustees of certain independent school districts.

TX HB5359

Relating to the creation of the Williamson County Development District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

TX SB1131

Relating to the authority of certain independent school districts to change the date of the general election for officers.

TX HB5375

Relating to the creation of the Montgomery County Management District No. 2; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Similar Bills

No similar bills found.