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A BILL TO BE ENTITLED
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AN ACT
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relating to school district depositories. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 45.204, Education Code, is amended to |
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read as follows: |
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Sec. 45.204. CONFLICT OF INTEREST. (a) If a member of the |
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board of trustees of a school district is a stockholder, officer, |
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director, or employee of a bank, the bank is not disqualified from |
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bidding, submitting a proposal, or [and] becoming the [school] |
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depository of the [school] district if the bank is selected by a |
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majority vote of the board of trustees of the district or a majority |
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vote of a quorum when only a quorum is present. |
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(b) If a member of the board of trustees of a school district |
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is a stockholder, officer, director, or employee of a bank that has |
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bid or submitted a proposal to become a depository for the [school] |
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district, the member may not vote on awarding a depository contract |
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to the bank, and the contract must be awarded by a majority vote of |
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the trustees as provided by Subsection (a) who are not either a |
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stockholder, officer, director, or employee of a bank receiving a |
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[school] district depository contract. |
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SECTION 2. Section 45.205(b), Education Code, is amended to |
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read as follows: |
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(b) A school district and the district's depository bank may |
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agree to extend a depository contract for two [one] additional |
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two-year terms [term]. An extension under this subsection is not |
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subject to the requirements of Section 45.206. |
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SECTION 3. Sections 45.206 and 45.207, Education Code, are |
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amended to read as follows: |
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Sec. 45.206. BID OR REQUEST FOR PROPOSAL NOTICES; BID AND |
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PROPOSAL FORMS [FORM]. (a) Not later than the 60th day before the |
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date a school district's current depository contract expires, the |
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district shall choose whether to select a depository through |
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competitive bidding or through requests for proposals. |
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(a-1) If a school district chooses under Subsection (a) to |
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use competitive bidding, the [The board of trustees of each school] |
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district shall, not later than the 30th day [at least 30 days] |
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before the date [termination of] the current depository contract |
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expires, mail to each bank located in the district and, if desired, |
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to other banks, a notice stating the time and place in which bid |
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applications will be received for selecting a [school] depository |
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or depositories. The notice must include a uniform bid blank in the |
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form prescribed by State Board of Education rule. |
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(a-2) If a school district chooses under Subsection (a) to |
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use requests for proposals, the district shall, not later than the |
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30th day before the date the current depository contract expires, |
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mail to each bank located in the district and, if desired, to other |
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banks, a notice stating the time and place in which proposals will |
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be received for selecting a depository or depositories. The notice |
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must include a uniform proposal blank in the form prescribed by |
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State Board of Education rule. |
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(b) The school district may add to the uniform bid or |
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proposal blank other terms that do not unfairly restrict |
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competition between banks in or near the territory of the [school] |
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district. |
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(c) Interest rates may be stated in the bid or proposal |
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either as a fixed rate, as a percentage of a stated base rate, in |
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relation to a stated prevailing rate varying from time to time, or |
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in any other manner, but in every case in a uniform manner, that |
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will permit comparison with other bids or proposals received. |
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(d) If the school district chooses under Subsection (a) to |
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use requests for proposals, the district shall state the selection |
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criteria, including the factors specified under Section 45.207(c), |
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in the request for proposals and shall select the proposal that |
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offers the best value to the district based on the evaluation and |
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ranking of each submitted proposal in relation to the stated |
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selection criteria. A district may negotiate with the bank that |
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submits the highest-ranked proposal to determine any terms of the |
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proposed depository contract other than the interest rates |
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proposed. |
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Sec. 45.207. AWARD OF CONTRACT. (a) A school district |
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shall award the depository contract to the bank that submits the |
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highest bid or the highest-ranked proposal, as determined under |
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Subsection (c), except that the district may award the contract as |
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provided by Subsection (a-1) if: |
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(1) the district: |
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(A) receives tying [If tie] bids [are received] |
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for the [a school depository] contract; or |
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(B) after evaluating the proposals for the |
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contract, ranks two or more proposals equally; |
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(2) [and] each bank submitting a tying bid or proposal |
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[of the tie bidders] has bid or proposed to pay the [school] |
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district the maximum interest rates allowed by law by the Board of |
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Governors of the Federal Reserve System and the Board of Directors |
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of the Federal Deposit Insurance Corporation; and |
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(3) [, if] the tying [tie] bids or proposals are |
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otherwise equal in the judgment and discretion of the board of |
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trustees of the [school] district. |
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(a-1) In the case of tying bids or proposals, [, and if two
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or more of the tie bidders in the judgment and discretion of the
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school district have the facilities and ability to provide the
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necessary services of school depository for the school district,] |
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the board of trustees may award the depository contract by [any one
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of the following methods]: |
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(1) [awarding the contract, at the discretion of the
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board of trustees, to any one of the tie bidders;
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[(2)] determining by lot which of the banks submitting |
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the tying bids or proposals [tie bidders] will receive the |
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contract; or |
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(2) [(3)] awarding a contract to each of the banks |
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submitting the tying bids or proposals [tie bidders or to as many of
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the tie bidders as the board of trustees selects]. |
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(b) The board of trustees may, during the period of the |
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contract, determine the amount of funds to be deposited in each |
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depository bank and determine the account services offered in the |
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bid or proposal form that are to be provided by each bank in its |
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capacity as school district depository. All funds received by the |
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district from or through the agency shall be deposited, at the |
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district's option, in one depository bank or invested in a public |
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funds investment pool created under Chapter 791, Government Code, |
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to be designated by the district. |
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(c) The board of trustees of the school district shall at a |
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regular or special meeting consider [all bids received] in |
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accordance with this subsection each bid or proposal received |
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[section]. In determining the highest and best bid or the |
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highest-ranked proposal, or in case of tying [tie] bids or |
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proposals the highest and best tying [tie] bids or proposals, the |
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board of trustees shall consider: |
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(1) the interest rate bid or proposed on time |
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deposits; |
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(2) [,] charges for keeping district accounts, |
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records, and reports and furnishing checks; |
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(3) [, and] the ability of the bank submitting the bid |
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or proposal [bidder] to provide the necessary services and perform |
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the duties as school district depository; and |
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(4) any other matter [, together with all other
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matters] that in the judgment of the board of trustees would be to |
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the best interest of the school district. |
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(d) The board of trustees of the school district has the |
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right to reject any and all bids or proposals. |
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SECTION 4. Section 45.208(a), Education Code, is amended to |
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read as follows: |
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(a) The bank or banks selected as the [school] depository or |
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depositories and the school district shall enter into a depository |
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contract or contracts, bond or bonds, or other necessary |
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instruments setting forth the duties and agreements pertaining to |
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the depository, in a form and with the content prescribed by the |
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State Board of Education. The parties shall attach to the contract |
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and incorporate by reference the bid or proposal of the depository. |
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SECTION 5. Section 45.209, Education Code, is amended to |
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read as follows: |
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Sec. 45.209. INVESTMENT OF DISTRICT FUNDS. The school |
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district may provide in its bid or proposal blank for the right to |
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place on time deposits with savings and loan institutions located |
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in this state only funds that are fully insured by the Federal |
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Deposit Insurance Corporation. A district may not place on deposit |
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with any savings and loan institution any bond or certificate of |
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indebtedness proceeds as provided by Section 45.102. A depository |
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bank may not be compelled without its consent to accept on time |
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deposit any bond proceeds under Section 45.102, but a depository |
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bank may offer a bid or proposal of interest equaling the highest |
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bid or proposal of interest for the time deposit of the bond |
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proceeds tendered by another bank. If the depository bank equals |
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the bid or proposal, it is entitled to receive the bond proceeds on |
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time deposit. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |
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