SRC-JFA H.B. 1564 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1564
By: Eiland (Patterson)
Economic Development
5-18-97
Engrossed


DIGEST 

Currently, many quasi-public entities and authorities, such as water
authorities, waste disposal authorities, and public-private corporations,
are not required to follow regulatory provisions requiring a competitive
bidding process for the selection of a depository for public funds.  This
bill would require quasi-public entities and authorities to follow
statutory provisions and competitive bidding procedures for the selection
of a depository for public funds.  

PURPOSE

As proposed, H.B. 1564 requires quasi-public entities and authorities to
follow statutory provisions and competitive bidding procedures for the
selection of a depository for public funds.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 131, Local Government Code, by adding Subchapter
B, as follows: 

SUBCHAPTER B.  DEPOSITORIES FOR CERTAIN SPECIAL DISTRICTS

Sec. 131.021.  APPLICABILITY.  Provides that this chapter applies only to
a special district created under Section 52 of Article III of Section 59
of Article XVI, Texas Constitution, that is not required to establish a
depository.   

Sec. 131.022.  FUNDS AFFECTED.  Provides that this chapter applies to the
funds of the special district or any district or any department or agency
of the special district.   

Sec. 131.023.  ESTABLISHMENT OF AND REQUIREMENTS FOR DEPOSITORY. Require
the governing body of the special district to establish a depository as
provided by Chapter 105 or 116.  Provides that depository established
under this section is subject to the same requirements imposed on a
depository under the chapter of this code that the governing body selects
to establish the depository.   

Sec. 131.024.  MEANING OF TERMS AND REQUIREMENTS.  Provides that the terms
defined by the chapter of this code that the governing body of the special
district selects to establish a depository have the meanings assigned by
that chapter for purposes of this chapter, except as provided by
Subsection (b).  Defines "designated officer," "municipality," "governing
body of a municipality," and "specific officer or employee of a
municipality," for purposes of a special district operating under Chapter
105.  Defines "county," "commissioners court of a county," and "specific
officer or employee of a county," for purposes of a special district
operating under Chapter 116.  Requires a special district operating under
Chapter 116 to select and establish a depository during the same time
period within which a commissioner's court is required to select and
establish a depository under Chapter 116.   

SECTION 2. Amends Chapter 271, Local Government Code, by adding Subchapter
G, as follows: 
 
SUBCHAPTER G.  COMPETITIVE BIDDING REQUIREMENTS FOR CERTAIN
SPECIAL DISTRICTS

Sec. 271.121.  APPLICABILITY.  Provides that this chapter applies only to
a special district created under Section 52 of Article III or Section 59
of Article XVI, Texas Constitution, that is not required to follow a
competitive bidding process or another process designated to achieve the
best value for the special district in its purchases.   

Sec. 271.122.  PURCHASING AND CONTRACTING AUTHORITY OF CERTAIN SPECIAL
DISTRICTS.  Requires the governing body of the special district to follow
the competitive bidding requirements, procedures, and enforcement
provisions of Chapter 252 or 262. 

Sec. 271.123.  MEANING OF TERMS AND REQUIREMENTS.  Provides that the terms
defined by the chapter of this code that the governing body of the special
district selects to follow for competitive bidding requirements have the
meanings assigned by that chapter for purposes of this chapter.  Provides
that for the purposes of this chapter, a provision of Chapter 252 or 262
that limits the application of the provision based on the population in
the municipality or county applies to a special district subject to this
subchapter regardless of the population limitation imposed under Chapter
252 or 262.  Defines, for purposes of a special district operating under
Chapter 252, "municipality," "governing body of a municipality," and
"specific officer or employee of municipality."  Defines, for purposes of
a special district operating under Chapter 262, "county," "commissioners
court of a county," "specific officer or employee of a county," and "board
in Section 262.011."  Provides that for purposes of a special district
operating under Chapter 262, Section 262.012 does not apply to the special
district.   

SECTION 3. Emergency clause.
  Effective date:  90 days after adjournment.