Texas SB404 mandates divestment timelines for local governments from restricted investment pools.

Texas SB404 requires local governments to divest from restricted investment pools, defined as those not managed by the comptroller or the Texas Treasury Safekeeping Trust Company. Local governments must remove at least 50% of their funds within 180 days of discovering the investment, and all funds within 360 days. Exceptions allow for delays if divestment would cause a loss in value or benchmark deviation, supported by clear and convincing evidence. The law takes effect September 1, 2025.

Texas SB404 mandates divestment timelines for local governments from restricted investment pools.

Texas SB404 requires local governments to divest from restricted investment pools, defined as those not managed by the comptroller or the Texas Treasury Safekeeping Trust Company. Local governments must remove at least 50% of their funds within 180 days of discovering the investment, and all funds within 360 days. Exceptions allow for delays if divestment would cause a loss in value or benchmark deviation, supported by clear and convincing evidence. The law takes effect September 1, 2025.