1-1     By:  Gallegos                                          S.B. No. 656

 1-2           (In the Senate - Filed February 18, 1997; February 24, 1997,

 1-3     read first time and referred to Committee on Education;

 1-4     March 20, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 11, Nays 0; March 20, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 656                     By:  Luna

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the term of a school district depository contract.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 45.205, Education Code, is amended to

1-13     read as follows:

1-14           Sec. 45.205.  TERM OF CONTRACT.  (a)  Except as provided by

1-15     Subsection (b), the [The] depository bank when selected shall serve

1-16     for a term of two years and until its successor is selected and has

1-17     qualified.

1-18           (b)  A school district and the district's depository bank may

1-19     agree to extend a depository contract for one additional two-year

1-20     term.  An extension under this subsection is not subject to the

1-21     requirements of Section 45.206.

1-22           (c)  The contract term and any extension must coincide with

1-23     the school district's fiscal year.

1-24           SECTION 2.  The importance of this legislation and the

1-25     crowded condition of the calendars in both houses create an

1-26     emergency and an imperative public necessity that the

1-27     constitutional rule requiring bills to be read on three several

1-28     days in each house be suspended, and this rule is hereby suspended,

1-29     and that this Act take effect and be in force from and after its

1-30     passage, and it is so enacted.

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