Texas Education Code 45.207 – Award of Contract
(a) A school district shall award the depository contract to the bank that submits the highest bid or the highest-ranked proposal, as determined under Subsection (c), except that the district may award the contract as provided by Subsection (a-1) if:
(1) the district:
(A) receives tying bids for the contract; or
(B) after evaluating the proposals for the contract, ranks two or more proposals equally;
(2) each bank submitting a tying bid or proposal has bid or proposed to pay the district the maximum interest rates allowed by law by the Board of Governors of the Federal Reserve System and the Board of Directors of the Federal Deposit Insurance Corporation; and
(3) the tying bids or proposals are otherwise equal in the judgment and discretion of the board of trustees of the district.
(a-1) In the case of tying bids or proposals, the board of trustees may award the depository contract by:
(1) determining by lot which of the banks submitting the tying bids or proposals will receive the contract; or
(2) awarding a contract to each of the banks submitting the tying bids or proposals.
Terms Used In Texas Education Code 45.207
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
(b) The board of trustees may, during the period of the contract, determine the amount of funds to be deposited in each depository bank and determine the account services offered in the bid or proposal form that are to be provided by each bank in its capacity as school district depository. All funds received by the district from or through the agency shall be deposited, at the district’s option, in one depository bank or invested in a public funds investment pool created under Chapter 791, Government Code, to be designated by the district.
(c) The board of trustees of the school district shall at a regular or special meeting consider in accordance with this subsection each bid or proposal received. In determining the highest and best bid or the highest-ranked proposal, or in case of tying bids or proposals the highest and best tying bids or proposals, the board of trustees shall consider:
(1) the interest rate bid or proposed on time deposits;
(2) charges for keeping district accounts, records, and reports and furnishing checks;
(3) the ability of the bank submitting the bid or proposal to provide the necessary services and perform the duties as school district depository; and
(4) any other matter that in the judgment of the board of trustees would be to the best interest of the school district.
(d) The board of trustees of the school district has the right to reject any and all bids or proposals.