S.B. No. 2329 amends Section 2256.005 of the Government Code to establish new requirements for local governments regarding the investment of their funds. The bill introduces a new subsection (b-1), which mandates that local government investment policies must ensure that at least 35 percent of the funds deemed available for investment by the governing body are allocated to authorized investments in banks located within the state of Texas. These authorized investments are specified in Section 2256.009(a)(7) or (8) or Section 2256.010.

The bill is set to take effect on January 1, 2026, thereby providing local governments with a timeline to adjust their investment policies in accordance with the new requirements. This legislation aims to promote the use of local banks for government investments, potentially benefiting the state's economy by keeping funds within Texas.

Statutes affected:
Introduced: Government Code 2256.005 (Government Code 2256)