By: Stephenson H.B. No. 2928         (Senate Sponsor - Taylor of Galveston)          (In the Senate - Received from the House April 24, 2017;   May 4, 2017, read first time and referred to Committee on Business &   Commerce; May 15, 2017, reported favorably by the following vote:     Yeas 9, Nays 0; May 15, 2017, sent to printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     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.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2256.009(a), Government Code, is amended   to read as follows:          (a)  Except as provided by Subsection (b), the following are   authorized investments under this subchapter:                (1)  obligations, including letters of credit, of the   United States or its agencies and instrumentalities, including the   Federal Home Loan Banks;                (2)  direct obligations of this state or its agencies   and instrumentalities;                (3)  collateralized mortgage obligations directly   issued by a federal agency or instrumentality of the United States,   the underlying security for which is guaranteed by an agency or   instrumentality of the United States;                (4)  other obligations, the principal and interest of   which are unconditionally guaranteed or insured by, or backed by   the full faith and credit of, this state or the United States or   their respective agencies and instrumentalities, including   obligations that are fully guaranteed or insured by the Federal   Deposit Insurance Corporation or by the explicit full faith and   credit of the United States;                (5)  obligations of states, agencies, counties,   cities, and other political subdivisions of any state rated as to   investment quality by a nationally recognized investment rating   firm not less than A or its equivalent; and                (6)  bonds issued, assumed, or guaranteed by the State   of Israel.          SECTION 2.  Section 2256.010(a), Government Code, is amended   to read as follows:          (a)  A certificate of deposit or share certificate is an   authorized investment under this subchapter if the certificate is   issued by a depository institution that has its main office or a   branch office in this state and is:                (1)  guaranteed or insured by the Federal Deposit   Insurance Corporation or its successor or the National Credit Union   Share Insurance Fund or its successor;                (2)  secured by obligations that are described by   Section 2256.009(a), including mortgage backed securities directly   issued by a federal agency or instrumentality that have a market   value of not less than the principal amount of the certificates, but   excluding those mortgage backed securities of the nature described   by Section 2256.009(b); or                (3)  secured in accordance with Chapter 2257 or in any   other manner and amount provided by law for deposits of the   investing entity.          SECTION 3.  The changes in law made by this Act apply to an   authorized investment of public funds governed by Chapter 2256,   Government Code, as amended by this Act, made on or after the   effective date of this Act. An authorized investment of public   funds made before the effective date of this Act is subject to the   law in effect on the date the investment was made, and the former   law is continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2017.     * * * * *