TX HB3975

Authorizes credit unions to serve as school district depositories alongside banks, expanding options for where districts can hold public funds

Defines "credit union" as a state or federal credit union doing business in Texas whose deposits are insured by the National Credit Union Share Insurance Fund

Requires credit unions serving as depositories to meet the same requirements as banks, including bonding, pledging approved securities, and adhering to conflict of interest rules for board trustees

Extends the same provisions to open-enrollment charter schools, allowing them to deposit funds in credit unions with depository contracts

Maintains existing depository contract terms of two years with the option for three additional two-year extensions, applicable to both banks and credit unions