LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 5, 2017 TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2928 by Stephenson (Relating to including the obligations of Federal Home Loan Banks as authorized investments for a governmental entity and the requirements for certificates of deposit or share certificates held as authorized investments for a governmental entity.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would amend Chapter 2256 of the Government Code, regarding public funds investment. The bill would add Federal Home Loan Banks to the list of approved issuers of obligations, including letters of credit, of the U.S. or its agencies and instrumentalities that are authorized investments for governmental entities. The bill would specify that certificates of deposit and share certificates would be authorized investments if they were secured in accordance with Chapter 2257 of this code (collateral for public funds). Local Government Impact According to the Texas Municipal League, the fiscal impact to municipalities is not anticipated to be significant. According to a County Treasurers' Association of Texas (CTAT) analysis of similar provisions, the fiscal implication to counties cannot be determined but could be significant due to the potential loss of county monies on investments under the provisions of the bill. Source Agencies:304 Comptroller of Public Accounts, 332 Department of Housing and Community Affairs, 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 580 Water Development Board, 601 Department of Transportation, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: UP, CL, JJ, BRi, EK, JGA
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
May 5, 2017
TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2928 by Stephenson (Relating to including the obligations of Federal Home Loan Banks as authorized investments for a governmental entity and the requirements for certificates of deposit or share certificates held as authorized investments for a governmental entity.), As Engrossed
TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2928 by Stephenson (Relating to including the obligations of Federal Home Loan Banks as authorized investments for a governmental entity and the requirements for certificates of deposit or share certificates held as authorized investments for a governmental entity.), As Engrossed
Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2928 by Stephenson (Relating to including the obligations of Federal Home Loan Banks as authorized investments for a governmental entity and the requirements for certificates of deposit or share certificates held as authorized investments for a governmental entity.), As Engrossed
HB2928 by Stephenson (Relating to including the obligations of Federal Home Loan Banks as authorized investments for a governmental entity and the requirements for certificates of deposit or share certificates held as authorized investments for a governmental entity.), As Engrossed
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 2256 of the Government Code, regarding public funds investment. The bill would add Federal Home Loan Banks to the list of approved issuers of obligations, including letters of credit, of the U.S. or its agencies and instrumentalities that are authorized investments for governmental entities. The bill would specify that certificates of deposit and share certificates would be authorized investments if they were secured in accordance with Chapter 2257 of this code (collateral for public funds).
Local Government Impact
According to the Texas Municipal League, the fiscal impact to municipalities is not anticipated to be significant. According to a County Treasurers' Association of Texas (CTAT) analysis of similar provisions, the fiscal implication to counties cannot be determined but could be significant due to the potential loss of county monies on investments under the provisions of the bill.
Source Agencies: 304 Comptroller of Public Accounts, 332 Department of Housing and Community Affairs, 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 580 Water Development Board, 601 Department of Transportation, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration
304 Comptroller of Public Accounts, 332 Department of Housing and Community Affairs, 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 580 Water Development Board, 601 Department of Transportation, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration
LBB Staff: UP, CL, JJ, BRi, EK, JGA
UP, CL, JJ, BRi, EK, JGA