Relating to investment of local governments' money in banks located in this state.

SB 2329 requires Texas local governments (such as cities, counties, and school districts) to invest at least 35% of their available funds designated for investment in banks physically located within Texas. This rule applies to funds the governing body determines are "available for investment" under existing policies. The bill amends Texas Government Code to mandate this minimum investment threshold in state banks, directly affecting how local governments allocate public funds. It takes effect January 1, 2026, but does not change current investment rules for funds not designated for investment.