AN ACT 1-1 relating to the investment of debt service funds by school 1-2 districts, junior college districts, and community college 1-3 districts. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter E, Chapter 45, Education Code, is 1-6 amended by adding Section 45.112 to read as follows: 1-7 Sec. 45.112. CONTRACTS FOR INVESTMENT OF DEBT SERVICE FUNDS. 1-8 (a) A school district, including a junior college district or 1-9 community college district, may enter into a contract with a term 1-10 not to exceed seven years to purchase investments with the proceeds 1-11 of taxes levied or to be levied by the district for the purpose of 1-12 paying debt service on bonds issued by the district. 1-13 (b) A contract under this section may provide for the 1-14 purchase of investments at a stated yield or yields. 1-15 (c) Before entering a contract under this section, a school 1-16 district must solicit and receive bids from at least three separate 1-17 providers. The district must accept the qualifying bid that 1-18 provides for the highest yield investments over the term of the 1-19 contract. 1-20 (d) A contract under this section may provide only for the 1-21 purchase of an obligation described by Section 2256.009(a)(1), 1-22 Government Code, other than an obligation described by Section 1-23 2256.009(b) of that code. 1-24 SECTION 2. The importance of this legislation and the 2-1 crowded condition of the calendars in both houses create an 2-2 emergency and an imperative public necessity that the 2-3 constitutional rule requiring bills to be read on three several 2-4 days in each house be suspended, and this rule is hereby suspended, 2-5 and that this Act take effect and be in force from and after its 2-6 passage, and it is so enacted. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1089 passed the Senate on April 29, 1999, by the following vote: Yeas 29, Nays 0. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1089 passed the House on May 26, 1999, by the following vote: Yeas 144, Nays 0, two present not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor