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Relating to the authority of certain insurers to make investments in bond exchange-traded funds.
No significant fiscal implication to the State is anticipated.
In current financial situations, an exchange-traded fund operates as an investment fund that is traded on stock exchanges.
HB 2694 would authorize certain insurers to exchange investments through bond-traded funds. Shares that would come from these bonds must be in compliance with the Investment Company Act of 1940.
The bill also sets out a list of financial obligations that the exchange must include such as the percentages of the assets that can be used from the insurer, and conditions that would be required if the exchange traded fund was considered to be solvent.
Texas Action remains neutral on HB 2694 as it neither advances nor hinders any of our liberty principles.