By Duncan S.B. No. 1089 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.