By Torres                                       H.B. No. 1628

      75R6377 ESH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the term of a school district depository contract.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 45.205, Education Code, is amended to

 1-5     read as follows:

 1-6           Sec. 45.205.  TERM OF CONTRACT.  (a)  Except as provided by

 1-7     Subsection (b), the [The] depository bank when selected shall serve

 1-8     for a term of two years and until its successor is selected and has

 1-9     qualified.

1-10           (b)  A school district and the district's depository bank may

1-11     agree to extend a depository contract for an additional two-year

1-12     term.  An extension under this subsection is not subject to the

1-13     requirements of Section 45.206.

1-14           (c)  The contract term and any extension must coincide with

1-15     the school district's fiscal year.

1-16           SECTION 2.  This Act takes effect September 1, 1997.

1-17           SECTION 3.  The importance of this legislation and the

1-18     crowded condition of the calendars in both houses create an

1-19     emergency and an imperative public necessity that the

1-20     constitutional rule requiring bills to be read on three several

1-21     days in each house be suspended, and this rule is hereby suspended.