HBA-TBM H.B. 1968 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1968 By: Tillery Pensions & Investments 3/9/2001 Introduced 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. House Bill 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 House Bill 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.