By Hill                                               H.B. No. 1760
         76R5981 ESH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the investment of debt service funds by school
 1-3     districts, junior college districts, and community college
 1-4     districts.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter E, Chapter 45, Education Code, is
 1-7     amended by adding Section 45.112 to read as follows:
 1-8           Sec. 45.112.  CONTRACTS FOR INVESTMENT OF DEBT SERVICE FUNDS.
 1-9     (a)  A school district, including a junior college district or
1-10     community college district, may enter into a contract with a term
1-11     not to exceed seven years to purchase investments with the proceeds
1-12     of taxes levied or to be levied by the district for the purpose of
1-13     paying debt service on bonds issued by the district.
1-14           (b)  A contract under this section may provide for the
1-15     purchase of investments at a stated yield or yields.
1-16           (c)  Before entering a contract under this section, a school
1-17     district must solicit and receive bids from at least three separate
1-18     providers.  The district must accept the qualifying bid that
1-19     provides for the highest yield investments over the term of the
1-20     contract.
1-21           (d)  A contract under this section may provide only for the
1-22     purchase of an obligation described by Section 2256.009(a)(1),
1-23     Government Code, other than an obligation described by Section
1-24     2256.009(b) of that code.
 2-1           SECTION 2.  The importance of this legislation and the
 2-2     crowded condition of the calendars in both houses create an
 2-3     emergency and an imperative public necessity that the
 2-4     constitutional rule requiring bills to be read on three several
 2-5     days in each house be suspended, and this rule is hereby suspended,
 2-6     and that this Act take effect and be in force from and after its
 2-7     passage, and it is so enacted.