HB 4209

84(R) - 2015
House Investments & Financial Services
House Investments & Financial Services
Investment & Financial Services

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Giovanni Capriglione

Bill Caption

Relating to investment of public funds.

Fiscal Notes

A fiscal note dated May 6, 2015 indicates that the  bill would authorize eligible entities to expand investment options including investing in hedging contracts and insurance agreements. Depending upon the investment decisions that would be made by eligible entities, there could be an indeterminate financial impact to the state.

Bill Analysis

House Bill 4209 would amend Chapter 2256 of the Government Code relating to public funds investments and would make several changes to regulations affecting different types of investments in which public entities are allowed to invest funds. It would also allow an eligible entity to enter into hedging contracts and related security and insurance agreements related to certain commodities investments.

Vote Recommendation Notes

According to the statement of purpose for the bill, House Bill 4209 aims at aligning the state's current law regarding investments of funds by political subdivisions with rules promulgated by the federal Securities and Exchange Commission (SEC). The bill would allow political subdivisions to have access to more choices in terms of investment opportunities.

House Bill 4209 is updating current law to align it with SEC regulations. It does not affect our Liberty Principles, hence we will remain neutral on this bill.