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

HB 3900 requires Texas local governments (like cities, counties, and school districts) to invest at least 35% of their available funds in Texas-located banks or credit unions that meet specific investment criteria. The bill mandates this requirement in local governments' official investment policies, directly affecting how public funds are managed. Key provisions specify that the 35% minimum must apply to funds designated for investment under existing state law (Sections 2256.009(a)(7), (8), or 2256.010). The law takes effect on January 1, 2026.