| 1 | 1 | | 82R19545 PAM-D |
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| 2 | 2 | | By: Larson H.B. No. 2349 |
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| 3 | 3 | | Substitute the following for H.B. No. 2349: |
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| 4 | 4 | | By: Hochberg C.S.H.B. No. 2349 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the authority of independent school districts to invest |
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| 10 | 10 | | in corporate bonds. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter A, Chapter 2256, Government Code, is |
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| 13 | 13 | | amended by adding Section 2256.0204 to read as follows: |
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| 14 | 14 | | Sec. 2256.0204. AUTHORIZED INVESTMENTS: INDEPENDENT SCHOOL |
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| 15 | 15 | | DISTRICTS. (a) This section applies only to an independent school |
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| 16 | 16 | | district that qualifies as an issuer as defined by Section |
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| 17 | 17 | | 1371.001. |
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| 18 | 18 | | (b) In addition to authorized investments permitted by this |
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| 19 | 19 | | subchapter, an independent school district subject to this section |
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| 20 | 20 | | may purchase, sell, and invest its funds and funds under its control |
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| 21 | 21 | | in corporate bonds, debentures, or similar debt obligations that: |
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| 22 | 22 | | (1) are rated by a nationally recognized investment |
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| 23 | 23 | | rating firm in one of the two highest long-term rating categories, |
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| 24 | 24 | | without regard to gradations within those categories; and |
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| 25 | 25 | | (2) have a stated final maturity date that is not later |
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| 26 | 26 | | than the third anniversary of the date on which the debt obligations |
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| 27 | 27 | | were purchased or invested in. |
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| 28 | 28 | | SECTION 2. This Act takes effect immediately if it receives |
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| 29 | 29 | | a vote of two-thirds of all the members elected to each house, as |
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| 30 | 30 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 31 | 31 | | Act does not receive the vote necessary for immediate effect, this |
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| 32 | 32 | | Act takes effect September 1, 2011. |
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