The Texas Education Agency (TEA) adopts amendments to 19 TAC §109.51 and §109.52, concerning uniform bank bids and depository contracts, without changes to the proposed text as published in the November 24, 2000, issue of the Texas Register (25 TexReg 11628) and will not be republished. Section 109.51 establishes the requirement that each school district submit a blank uniform bid form to each bank located in the district and, if desired, to other banks interested in acting as depository for all funds. The section includes the bid form prescribed by the State Board of Education (SBOE). Section 109.52 establishes the requirement that each school district select a bank or banks as school depository or depositories and enter into a depository contract or contracts with the bank or banks. A school district may also enter into a bond or bonds with the bank or banks. The section includes the depository contract form with the content prescribed by the SBOE.

The adopted amendments include updates to the bid form (Figure 19 TAC §109.51(b)) and the contract form (Figure 19 TAC §109.52(b)) and the addition of a new surety bond form (Figure 19 TAC §109.52(d)). Revisions to the bid form and contract form include: wording to specify that the content of a surety bond is defined in SBOE rule; details relating to surety bonds such as payments, signatures, school district board of trustee approval, and bond conditioning; specifications regarding the location for the venue for litigation; and conditions for early withdrawal penalties related to interest rates. In addition, revision to the contract form stipulates that the length of the contract extends until a successor is selected and qualified. The new surety bond form sets forth requirements relating to: guarantee; designation of depository owner(s) and account(s); limit of liability; payment of loss; termination or cancellation; responsibility of bank; consolidation or merger; and sole use and benefits.

No comments were received regarding adoption of the amendments.

The amendments are adopted under the Texas Education Code, §7.102(b)(34), which requires the SBOE to prescribe uniform bid blanks for school districts to use in selecting a depository bank as required under §45.206; and §45.208, which requires the SBOE to prescribe the form and content of a depository contract or contracts, bond or bonds, or other necessary instruments setting forth the duties and agreements pertaining to a depository.