1-1 By: Duncan S.B. No. 1089 1-2 (In the Senate - Filed March 9, 1999; March 11, 1999, read 1-3 first time and referred to Committee on Education; April 23, 1999, 1-4 reported favorably by the following vote: Yeas 6, Nays 0; 1-5 April 23, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the investment of debt service funds by school 1-9 districts, junior college districts, and community college 1-10 districts. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter E, Chapter 45, Education Code, is 1-13 amended by adding Section 45.112 to read as follows: 1-14 Sec. 45.112. CONTRACTS FOR INVESTMENT OF DEBT SERVICE FUNDS. 1-15 (a) A school district, including a junior college district or 1-16 community college district, may enter into a contract with a term 1-17 not to exceed seven years to purchase investments with the proceeds 1-18 of taxes levied or to be levied by the district for the purpose of 1-19 paying debt service on bonds issued by the district. 1-20 (b) A contract under this section may provide for the 1-21 purchase of investments at a stated yield or yields. 1-22 (c) Before entering a contract under this section, a school 1-23 district must solicit and receive bids from at least three separate 1-24 providers. The district must accept the qualifying bid that 1-25 provides for the highest yield investments over the term of the 1-26 contract. 1-27 (d) A contract under this section may provide only for the 1-28 purchase of an obligation described by Section 2256.009(a)(1), 1-29 Government Code, other than an obligation described by Section 1-30 2256.009(b) of that code. 1-31 SECTION 2. The importance of this legislation and the 1-32 crowded condition of the calendars in both houses create an 1-33 emergency and an imperative public necessity that the 1-34 constitutional rule requiring bills to be read on three several 1-35 days in each house be suspended, and this rule is hereby suspended, 1-36 and that this Act take effect and be in force from and after its 1-37 passage, and it is so enacted. 1-38 * * * * *