HBA-TBM C.S.H.B. 1968 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1968
By: Tillery
Pensions & Investments
4/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, local governments are not authorized to invest in certificates
of deposit issued by institutions outside of Texas.  This restriction
hinders local governments in their efforts to find the greatest possible
returns on their investments.  C.S.H.B. 1968 authorizes local governments
to invest in certificates of deposit issued by institutions outside of
Texas.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 1968 amends the Government Code to remove the provision that
restricts a local government's authority to invest in certificates of
deposit to those certificates issued by a state or national bank, a savings
bank, or a state or federal credit union domiciled in this state.  The bill
provides that a certificate of deposit is an authorized investment if the
certificate is issued by a bank, savings and loan association, or savings
bank that has its main office or a branch office in this state and is
organized under the laws of this state, the laws of another state, or
federal law.   

EFFECTIVE DATE

September 1, 2001.  

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1968 differs from the original by not removing the provision that
a certificate of deposit is an authorized investment if the certificate is
issued by a state or federal credit union domiciled in this state.