Relating to authorizing a credit union to act as a school district depository.

SB 1842 amends Texas Education Code to allow school districts and charter schools to use credit unions (as defined) as depositories for public funds, expanding the previous requirement that funds must be held in a bank. The bill defines "credit union" to include those insured by the National Credit Union Share Insurance Fund and requires that any depository contract with a credit union meets this standard. It updates sections of the code to ensure funds are managed properly, including allowing charter schools to deposit funds into credit unions and requiring written contracts for such arrangements. This change provides school districts with more financial institution options for holding public funds while maintaining oversight requirements.