By Flores                                              H.B. No. 311
         77R1887 KEL-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of a school district to select a sole
 1-3     broker of record for the purpose of purchasing insurance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter B, Chapter 44, Education Code, is
 1-6     amended by adding Section 44.0316 to read as follows:
 1-7           Sec.  44.0316. SELECTION OF INSURANCE BROKER. (a)  This
 1-8     subchapter does not prevent the board of trustees of a school
 1-9     district from selecting a licensed insurance broker as the sole
1-10     broker of record for the purpose of purchasing insurance for the
1-11     school district, regardless of the aggregate value of insurance
1-12     contract premiums in a 12-month period.
1-13           (b)  The board of trustees shall ensure that:
1-14                 (1)  the use of a sole broker of record is in the
1-15     school district's best interest; and
1-16                 (2)  the broker is selected in a manner that is
1-17     consistent with good business management.
1-18           SECTION 2.  This Act takes effect immediately if it receives
1-19     a vote of two-thirds of all the members elected to each house, as
1-20     provided by Section 39, Article III, Texas Constitution.  If this
1-21     Act does not receive the vote necessary for immediate effect, this
1-22     Act takes effect September 1, 2001.