By: Stephenson H.B. No. 2647         (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 authorized investments of public funds.          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;                (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;                (7)  interest-bearing banking deposits that are   guaranteed or insured by:                      (A)  the Federal Deposit Insurance Corporation or   its successor; or                      (B)  the National Credit Union Share Insurance   Fund or its successor; and                (8)  interest-bearing banking deposits other than   those described by Subdivision (7) if:                      (A)  the funds invested in the banking deposits   are invested through:                            (i)  a broker with a main office or branch   office in this state that the investing entity selects from a list   the governing body or designated investment committee of the entity   adopts as required by Section 2256.025; or                            (ii)  a depository institution with a main   office or branch office in this state that the investing entity   selects;                      (B)  the broker or depository institution   selected as described by Paragraph (A) arranges for the deposit of   the funds in the banking deposits in one or more federally insured   depository institutions, regardless of where located, for the   investing entity's account;                      (C)  the full amount of the principal and accrued   interest of the banking deposits is insured by the United States or   an instrumentality of the United States; and                      (D)  the investing entity appoints as the entity's   custodian of the banking deposits issued for the entity's account:                            (i)  the depository institution selected as   described by Paragraph (A);                            (ii)  an entity described by Section   2257.041(d); or                            (iii)  a clearing broker dealer registered   with the Securities and Exchange Commission and operating under   Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section   240.15c3-3).          SECTION 2.  The changes in law made by this Act apply only to   authorized investments of public funds governed by Section   2256.009, Government Code, as amended by this Act, that are 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   governed by the law in effect immediately before that date, and that   law is continued in effect for that purpose.          SECTION 3.  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, 2017.     * * * * *