82R9798 PAM-D
By: Wentworth S.B. No. 1543
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 with an average daily attendance as determined under
Section 42.005, Education Code, of at least 50,000.
(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 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.
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.