HBA-EVB, LCA H.B. 1760 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1760
By: Hill
Public Education
4/21/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, a school district may not enter a contract to purchase
investments with the proceeds of taxes levied or to be levied by the
district to retire debt service on bonds it has issued. H.B. 1760 amends
Chapter 45, Education Code (School District Funds) to authorize a school
district, including a junior college district or community college
district, to enter into a contract, with a term of less than seven years,
to purchase investments with the proceeds of taxes levied or to be levied
by the district to pay debt service on bonds issued by the district.  H.B.
1760 also sets forth bidding and contract requirements for a purchase of
investments under this section. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter E, Chapter 45, Education Code, by adding
Section 45.112, as follows: 

Sec. 45.112. CONTRACTS FOR INVESTMENT OF DEBT SERVICE FUNDS.  (a)
Authorizes a school district, including a junior or community college
district, to enter a contract, with a term not to exceed seven years, to
invest tax dollars in order to retire debt service on bonds it has issued.

(b)  Authorizes purchases of investments at a stated yield or yields.  

(c)  Provides that before entering a contract under this section, a school
district must solicit and receive bids from a minimum of three separate
providers, and must accept the most competitive bid.   

(d) Authorizes a contract under this section to provide only for the
purchase of investments described in Section 2256.009(a)(1), Government
Code (Authorized Investments: Obligations of, or Guaranteed by Governmental
Entities). 

SECTION 2.  Emergency clause.
  Effective date: upon passage.