JBM C.S.H.B. 3011 75(R)BILL ANALYSIS


NATURAL RESOURCES
C.S.H.B. 3011
By: Jackson
3-26-97
Committee Report (Substituted)



BACKGROUND 

The 70th Legislature adopted procedures that could be adopted by a
navigation district or port authority under subchapter N of Chapter 60 of
the Water Code for purchasing requirements.   

Section 60.403 indicates that an individual purchase order must be signed
and duplicated before a routine purchase under $25,000 may be made, even
if such an item is an expected and necessary item of expense.  Because
there are many small routine purchases made for standard necessities, such
as water and electricity, it is inefficient to require that an individual
purchase order be signed and duplicated each time a bill of such nature is
paid. 

PURPOSE

To allow the district or port authority to maintain a list of standard
items with precommitment approval which would make the process more
efficient  and eliminate unnecessary duplication. 

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.   Amends Section 60.403 of the Water Code to provide as follows:

 (a) No change from existing statutory language (other than subsection
designation). 

 (b) Allows some other form of precommitment approval in addition to a
standard purchase order as a means of approving a routine small item of
expenses;  provides that, for routine contracts or purchases, the approval
may be in the form of a list signed by the executive director; signed list
shall remain on file in the offices of the district or port authority. 

 (c) Changes "The" to "A" in describing purchase orders that must be
executed in duplicate. 

 (d) Provides that the precommitment list must be approved by the county
auditor if any of the items on the list require the approval of the county
auditor. 

SECTION 2.  Effective date: September 1, 1997.  This Act applies only to
purchases made after effective date. 

SECTION 3.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute for HB 3011 breaks down Section 1 of the original into
subsections (a)-(c), with no significant changes.  The substitute also
adds a new subsection (d) under Section 1, which  provides that the
precommitment list must be approved by the county auditor if any of the
items on the list require the approval of the county auditor.