TX SB2642

Expands the definition of "qualified manager" for governmental entity investments to include investment management firms registered under federal or state securities law, FDIC-defined banks, and bank holding companies

Requires investment pools to invest at least 35 percent of their funds in authorized investments at banks located in Texas

Prohibits public funds investment pools from entering into royalty or sponsorship agreements with associations or organizations, or paying royalties/sponsorships from pool funds or interest income

Mandates that investment pools include written confirmation in their disclosure documents and monthly reports stating there is no sponsorship agreement or royalty paid to any association or organization from pool funds

Requires annual audited financial statements of investment pools to be posted on both the pool's public website and the comptroller's website

Takes effect September 1, 2026