Other Revenues: Investments

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• PFIA Compliance Statement: The updated policy adds a statement that District funds will be invested following the Public Funds Investment Act (Texas Government Code § 2256.005). The District chose to include this language as a formal policy commitment, rather than being required to do so by the statute itself.
• Investment Pool Distributor Registration: The policy now requires that distributors of investment pools be registered with the Texas State Securities Board and SIPC/FINRA, referencing Texas Government Code § 2256.016. This registration requirement reflects a standard the District selected on its own, as no verified statutory language was found that specifically compels or permits this exact requirement.
• MSRB Good Standing Requirement: The policy also requires that investment pool distributors be in good standing with the Municipal Securities Rulemaking Board (MSRB), referencing Texas Government Code § 2256.016. This is an additional standard the District added beyond what the cited statute was confirmed to require or expressly allow.
• Overall Classification: All three changes in this policy update are classified as Locally Discretionary, meaning the District made these additions based on its own judgment rather than a direct state law mandate. No litigation related to any of these provisions was identified.

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