82R19545 PAM-D
By: Larson H.B. No. 2349
Substitute the following for H.B. No. 2349:
By: Hochberg C.S.H.B. No. 2349
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 that qualifies as an issuer as defined by Section
1371.001.
(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 that:
(1) are 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; and
(2) have a stated final maturity date that is not later
than the third anniversary of the date on which the debt obligations
were purchased or invested in.
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.