S.B. 902 78(R)    BILL ANALYSIS


S.B. 902
By: Staples
Financial Institutions
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Current law permits counties, school districts, and municipalities to
enter into contracts with their respective depositories for a term of one
to five years or to extend such contracts for an additional two years.
Appraisal districts may enter into a two-year contract with a depository,
but there is not the same opportunity for extending the contract by two
years. 

S.B. 902 permits an appraisal district and a depository to extend a
two-year depository contract for an additional two-year period. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

S.B. 902 amends Section 6.09, Tax Code, to permit the board of an
appraisal district and a depository to extend a depository contract for
one additional two-year period.  The bill requires a depository, once
designated as such by the appraisal district, to serve for a two-year term
and until a successor has been designated and qualified. 

EFFECTIVE DATE

On passage or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.