Texas SB1842 allows credit unions to act as school district depositories.

Texas SB1842 amends the Education Code to authorize credit unions as school district depositories. It modifies the definition of "credit union" to include federal credit unions doing business in Texas, excluding those not insured by the National Credit Union Share Insurance Fund. The bill outlines procedures for selecting depositories through competitive bidding or requests for proposals, including criteria for evaluating bids and proposals. It also details the terms of depository contracts, including bond requirements and the handling of bond proceeds. The act takes effect September 1, 2025.

Texas SB1842 allows credit unions to act as school district depositories.

Texas SB1842 amends the Education Code to authorize credit unions as school district depositories. It modifies the definition of "credit union" to include federal credit unions doing business in Texas, excluding those not insured by the National Credit Union Share Insurance Fund. The bill outlines procedures for selecting depositories through competitive bidding or requests for proposals, including criteria for evaluating bids and proposals. It also details the terms of depository contracts, including bond requirements and the handling of bond proceeds. The act takes effect September 1, 2025.