H.B. No. 3900 amends Section 2256.005 of the Government Code to enhance local governments' investment policies by allowing them to consider the physical location and staffing of banks, credit unions, and investment pools when evaluating authorized investments. Specifically, the bill introduces a new subsection (c-1) that permits local governments to incorporate criteria regarding whether these financial institutions have a presence in Texas as part of their investment evaluation process.

The bill aims to encourage local investment by ensuring that local governments prioritize financial institutions that contribute to the state's economy. It will take effect immediately if it receives a two-thirds majority vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

Statutes affected:
Introduced: Government Code 2256.005 (Government Code 2256)
House Committee Report: Government Code 2256.005 (Government Code 2256)