SRC-JRN C.S.S.B. 656 75(R)   BILL ANALYSIS


Senate Research Center   C.S.S.B. 656
By: Gallegos
Education
3-19-97
Committee Report (Substituted)


DIGEST 

Currently, a selected depository bank is required to serve a two-year term
under certain conditions, and the contract term must coincide with the
school district's fiscal year.  Re-bidding depository contracts every two
years may be difficult and time consuming for school business officials.
This bill allows a school district to extend a depository contract for one
additional two-year term, under certain conditions. 

PURPOSE

As proposed, C.S.S.B. 656 allows a school district to extend a depository
contract for one additional two-year term, under certain conditions. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 45.205, Education Code, as follows:

Sec. 45.205. TERM OF CONTRACT.  Requires the depository bank to serve a
term for two years and until its successor is selected and qualified,
except as provided by Subsection (b).  Authorizes a school district and
the district's depository bank to agree to extend a depository contract
for one additional two-year term.  Provides that an extension under this
subsection is not subject to the requirements of Section 45.206.  Requires
the contract term and any extension to coincide with the school district's
fiscal year. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 45.205, Education Code, to authorize a depository contract
to be extended for one additional two-year term, rather than an additional
two-year term.