Bill > HB5260

This bill modifies Texas state law regarding local government investments in investment pools, introducing new restrictions and requirements. Specifically, local governments will now only be allowed to invest funds in investment pools managed by either the comptroller or the Texas Treasury Safekeeping Trust Company, which are considered more secure and regulated entities. For any existing investments in "restricted investment pools" (those not managed by these two entities), local governments must divest according to a strict timeline: at least 50% of funds must be removed within 180 days of discovering the investment, and 100% must be removed within 360 days. The bill provides some flexibility for delayed divestment, but only if the local government can provide clear and convincing evidence that immediate withdrawal would result in significant financial losses or substantial deviation from investment benchmarks. If a local government chooses to delay divestment, they must submit detailed reports to legislative leaders, the attorney general, and the comptroller explaining their rationale. These new provisions aim to enhance financial oversight and reduce potential risks in local government investment strategies, with the changes set to take effect on September 1, 2025, and applying only to contracts entered into on or after that date.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5260