By:  Gallegos                                          S.B. No. 656

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 45.205, Education Code, is amended to

 1-4     read as follows:

 1-5           Sec. 45.205.  TERM OF CONTRACT.  (a)  Except as provided by

 1-6     Subsection (b), the [The] depository bank when selected shall serve

 1-7     for a term of two years and until its successor is selected and has

 1-8     qualified.

 1-9           (b)  A school district and the district's depository bank may

1-10     agree to extend a depository contract for one additional two-year

1-11     term.  An extension under this subsection is not subject to the

1-12     requirements of Section 45.206.

1-13           (c)  The contract term and any extension must coincide with

1-14     the school district's fiscal year.

1-15           SECTION 2.  The importance of this legislation and the

1-16     crowded condition of the calendars in both houses create an

1-17     emergency and an imperative public necessity that the

1-18     constitutional rule requiring bills to be read on three several

1-19     days in each house be suspended, and this rule is hereby suspended,

1-20     and that this Act take effect and be in force from and after its

1-21     passage, and it is so enacted.