Texas HB5260 mandates divestment timelines for local governments from restricted investment pools.

Texas HB5260 amends the Government Code to establish a divestment schedule for local governments from restricted investment pools. Local governments must divest at least 50% of their funds within 180 days of discovering their investment in a restricted pool, with full divestment required within 360 days. A local government may delay divestment if it determines, in good faith, that divestment would result in a loss in value or benchmark deviation, supported by clear and convincing evidence.

Texas HB5260 mandates divestment timelines for local governments from restricted investment pools.

Texas HB5260 amends the Government Code to establish a divestment schedule for local governments from restricted investment pools. Local governments must divest at least 50% of their funds within 180 days of discovering their investment in a restricted pool, with full divestment required within 360 days. A local government may delay divestment if it determines, in good faith, that divestment would result in a loss in value or benchmark deviation, supported by clear and convincing evidence.