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Bill

HB 3900

Relating to consideration of whether banks, credit unions, and investment pools are located in this state in investment policies adopted by local governments.

89th Legislature (2025) Introduced by Pat Curry and 2 co-sponsors

Texas bill requires local governments to consider in-state location when choosing banks and investment pools for public funds, potentially redirecting billions toward Texas-based financial institutions.

Placed on General State Calendar
#citygovernment--finance(i0062) #countygovernment--finance(i0097) #financial--banks(i0366)
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WeVote Research Nonpartisan
Bill Summary · HB 3900

Legislative bill overview

HB 3900 requires local governments in Texas to consider whether financial institutions (banks, credit unions, and investment pools) are located within the state when adopting investment policies. The bill appears designed to encourage local governments to prioritize in-state financial institutions in their investment decisions.

Why is this important

Local government investment policies control where billions of dollars in public funds flow, affecting capital availability for businesses and financial institutions. This bill could redirect public investment toward Texas-based financial institutions, potentially strengthening the state's financial sector while also raising questions about fiduciary duty and competitive neutrality.

Potential points of contention

  • Fiduciary obligation conflicts: Local officials have legal duties to invest public funds prudently and obtain best returns; requiring consideration of in-state location could conflict with maximizing taxpayer value
  • Market competition concerns: Mandating preference for in-state institutions may reduce competitive pressure and raise costs for taxpayers compared to open market investing
  • Implementation ambiguity: The bill's language requiring institutions be "considered" is vague—unclear whether this is advisory or creates binding preferences that might restrict investment options

Compiled from official sources — confirm details with the bill’s official record.

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