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.