BWH C.S.H.B. 1564 75(R)BILL ANALYSIS COUNTY AFFAIRS C.S.H.B. 1564 By: Eiland 3-21-97 Committee Report (Substituted) BACKGROUND 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. Nothing requires that these entities seek out the best interest rates or the most secure institutions. PURPOSE To require quasi-public entities and authorities to follow statutory provisions and competitive bidding procedures for the selection of a depository for public funds. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Adds Subchapter B, DEPOSITORIES FOR CERTAIN SPECIAL DISTRICTS, to Chapter 131, Local Government Code. Sec. 131.021. APPLICABILITY. Describes which special districts are subject to this chapter. Sec. 131.022. FUNDS AFFECTED. Describes what funds will be affected. Sec. 131.023. ESTABLISHMENT OF AND REQUIREMENTS FOR DEPOSITORY. (a) Requires the governing body of a special district to establish a depository and follow Chapter 105 or Chapter 116. (b) The depository is subject to requirements imposed by those chapters. Sec. 131.024. MEANING OF TERMS. (a) Terms are defined by the chapter of the code that the governing body of the special district selects to use. (b) Defines terms and clarifies references for use when operating under Chapter 105. Defines "designated officer." (c) Clarifies references for use when operating under Chapter 116. (d) Under Chapter 116, specifies the time period for selecting and establishing a depository. SECTION 2. Adds Subchapter G, COMPETITIVE BIDDING REQUIREMENTS FOR CERTAIN SPECIAL DISTRICTS, to Chapter 271, Local Government Code. Sec. 271.121. APPLICABILITY. Describes which special districts are subject to this chapter. Sec. 271.122. PURCHASING AND CONTRACTING AUTHORITY OF CERTAIN SPECIAL DISTRICTS. Requires the governing body of special districts to follow competitive bidding requirements, procedures, and enforcement of Chapter 252 or Chapter 262. Sec. 271.123. MEANING OF TERMS AND REQUIREMENTS. (a) The terms are defined by the chapter the governing body of a special district selects to follow. (b) Any limitations on the application of a provision in Chapter 252 or 262 based on population are inapplicable for purposes of this chapter. (c) Clarifies references for use when operating under Chapter 252. (d) Clarifies references for use when operating under Chapter 262. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE CSHB 1564 changes all references to "political subdivision" into "special district."