BILL ANALYSIS

 

 

Senate Research Center	H.B. 878
85R2932 MM-F	By: King, Ken; Fallon (Perry)
	Education
	5/10/2017
	Engrossed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Interested parties note that while an independent school district is able to extend a two-year contract with its depository bank two times, no changes to the contract may be made without beginning the process of executing a new contract. H.B. 878 seeks to allow districts to extend depository contracts for an additional two-year term and to allow the contracts to be modified.

 

H.B. 878 amends current law relating to the extension and modification of a public school district depository contract.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 45.205(b), Education Code, to authorize a school district and the district's depository to agree to extend a depository contract for three additional two-year terms and to modify the contract for any extension, rather than to extend a depository contract for two additional two-year terms.

 

SECTION 2. Effective date: September 1, 2017.