Relating to authorized investments by governmental entities.

SB 2642 expands the types of investment managers local Texas government entities (like cities, counties, and school districts) can hire to manage public funds. It defines "qualified manager" to include federally registered investment firms, state-registered securities firms, banks, and bank holding companies. The bill limits contracts with these managers to two years and requires renewal via separate approval. Additionally, it mandates detailed disclosure requirements for investment pools (funds pooling multiple entities' money), including investment types, maturity details, performance history, and transparency about no sponsorship fees. These changes aim to clarify and standardize investment options while increasing oversight for public fund management.