By Patterson                                    S.B. No. 1668

      75R6548 JJT-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the duties and rights of a county auditor regarding

 1-3     financial records of certain navigation districts.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Sections 3, 4, and 6, Chapter 90, Acts of the

 1-6     49th Legislature, Regular Session, 1945 (Article 8235a, Vernon's

 1-7     Texas Civil Statutes), are amended to read as follows:

 1-8           Sec. 3.  (a)  No contract may be made by the Board which

 1-9     encumbers future revenues of the District, unless the Commissioners

1-10     Court shall have levied a special tax therefor, or unless the

1-11     revenues of a particular facility or facilities are encumbered to

1-12     discharge the obligation.

1-13           (b)  The Board shall be authorized to make, or to authorize

1-14     the General Manager to make, routine purchases or contracts not to

1-15     exceed the sum of Five Thousand Dollars ($5,000) upon requisitions

1-16     signed by at least two (2) Commissioners[,] or the General Manager.

1-17     The[, which] requisitions must [shall] be [executed at least in

1-18     triplicate, one (1) copy to be] delivered to the person, firm or

1-19     corporation from whom the purchase is made[, one (1) copy to be

1-20     delivered to the County Auditor, and one (1) copy to remain on file

1-21     with the Board,] before the [any] purchase is [shall be] made.  The

1-22     Board shall keep a copy of each requisition. Such purchases and

1-23     requisitions shall be subject to ratification and approval at the

1-24     next succeeding meeting of the Board.  This Act shall not be

 2-1     construed to permit the division or reduction of purchases or

 2-2     contracts for the purpose of avoiding the requirement of taking

 2-3     formal bids on purchases or contracts which would otherwise exceed

 2-4     Five Thousand Dollars ($5,000).

 2-5           (c)  Cumulative of the provisions of Section 3(b) of this Act

 2-6     and the authority thereby extended, the Board may, by an order or

 2-7     regulation entered in its minutes, provide for the making of

 2-8     routine purchases or contracts in amounts not to exceed Five

 2-9     Thousand Dollars ($5,000) in any one (1) instance or for the

2-10     payment of wages or salaries of its hourly-rated employees, in the

2-11     interim between meetings of the Board, and such purchases,

2-12     contracts or payroll payments shall be subject to ratification and

2-13     approval at the next succeeding meeting of the Board; provided,

2-14     however, that the making of such interim purchases or contracts or

2-15     the interim payment of such payrolls shall be approved by the

2-16     General Manager and by at least three (3) of the Navigation

2-17     Commissioners; and when so approved, any requisition issued, and

2-18     signed as and in the manner provided for in this Section 3(c), and

2-19     any warrant issued or authorized by the provisions of Section 4 of

2-20     this Act, may be approved [and certified] by the County Auditor in

2-21     full and complete reliance thereon in the same manner and to the

2-22     same extent as if the same had been made and issued pursuant to the

2-23     provisions of this Section 3(c) of this Act or other applicable

2-24     laws; provided further, however, that nothing in this Section 3(c)

2-25     shall apply or operate as a limitation upon the authority of the

2-26     Board in cases of public calamity where it becomes necessary to act

2-27     at once to appropriate money to relieve the distress of the

 3-1     citizens or to protect the property of the District; in cases of

 3-2     unforeseen damage to Navigation District property, machinery, or

 3-3     equipment, or in the handling of ships where time will not permit

 3-4     of advertisement; nor shall they apply to contracts for

 3-5     professional services.  In all such cases the Board shall set out

 3-6     in the minutes of the District that an emergency exists and the

 3-7     facts which gave rise to the emergency.  In instances provided in

 3-8     this Section 3(c), requisitions must [shall] be [executed in at

 3-9     least triplicate,] signed by the General Manager, and have [to

3-10     which shall be] attached [or with which shall be filed with the

3-11     County Auditor] a letter of approval of the item, account or

3-12     subject covered by such requisitions, signed by said General

3-13     Manager and at least three (3) of the Navigation Commissioners.

3-14     The[, one (1) copy of such] requisition must [to] be delivered to

3-15     the person, firm or corporation from whom the purchase is made or

3-16     with whom the contract is made[, one (1) copy to be delivered to

3-17     the County Auditor, and one (1) copy to remain on file with the

3-18     Board,] before the [any such] purchase or contract is [shall be]

3-19     made; provided, however, that it shall be sufficient to issue only

3-20     one (1) requisition [(in at least triplicate)] covering or in

3-21     respect of any payroll for wages or salaries of all hourly-rated

3-22     employees.  The Board shall keep a copy of each requisition.

3-23           (d)  In cases in which the materials, supplies, machinery,

3-24     equipment, or other items sought to be purchased or the contract

3-25     sought to be made shall exceed Five Thousand Dollars ($5,000)

3-26     written specifications shall be filed with the County Auditor and

3-27     advertisement shall be published once a week for two (2) successive

 4-1     weeks or for such added time as the Board may require (in a

 4-2     newspaper of general circulation within said District prior to the

 4-3     last date for the [the] receipt of the bids, in which

 4-4     advertisements shall be stated the items or things to be purchased

 4-5     or the contract sought to be made); the time and place of receipt

 4-6     of such bids; and the place where specifications may be obtained.

 4-7     The specifications shall state in detail what is desired; shall

 4-8     require that bids be sealed; and shall require the attachment to

 4-9     said bid of a certified or cashier's check payable to the

4-10     Navigation District, drawn on a bank which is a member of the

4-11     Federal Reserve System, for five per cent (5%) of the total amount

4-12     of the bid, or a bidder's bond executed by a responsible corporate

4-13     surety authorized to do business in Texas, conditioned that the

4-14     successful bidder will enter into a contract and give bond as

4-15     required by the specifications.  All such contracts shall be

4-16     awarded by the Board at a regularly scheduled or specially called

4-17     meeting; shall be reduced to writing; executed for the District  by

4-18     the Chairman or General Manager; and filed with the proper officers

4-19     of said District with a copy thereof filed with the County Auditor.

4-20     Before any contract or requisition is effective or [shall be placed

4-21     into effect or become] binding on [upon] the Navigation District,

4-22     the requisition or contract must [it shall] be submitted to the

4-23     County Auditor for [his] approval and the [and certification that

4-24     funds are or will be available to meet the contract when due and a]

4-25     requisition, purchase order or work order must  [issued in

4-26     triplicate, one (1) copy to] be delivered to the contractor.  The

4-27     Board shall keep a copy of each requisition, purchase order, or

 5-1     work order[, one (1) copy to be delivered to the County Auditor,

 5-2     and one (1) copy to remain on file with the Navigation District].

 5-3     Provided, however, that the provisions of this Section shall not

 5-4     apply in cases of public calamity where it becomes necessary to act

 5-5     at once to appropriate money to relieve the distress of the

 5-6     citizens or to protect the property of the Navigation District; in

 5-7     cases of unforeseen damage to Navigation District property,

 5-8     machinery, or equipment, or in the handling of ships where time

 5-9     will not permit of advertisement; nor shall they apply to contracts

5-10     for professional services.  In all such cases the Board shall set

5-11     out in the minutes of the District that an emergency exists and the

5-12     facts which gave rise to the emergency.  In such cases, bids and

5-13     the advertisement therefor may be waived.

5-14           (e)  Any purchase or contract made without compliance with

5-15     the provisions of this Act shall be void and unenforceable in any

5-16     courts in this State.

5-17           (f)  All financial records possessed by an officer or

5-18     employee of a Navigation District or by another person legally

5-19     charged with custody of the records are subject to the County

5-20     Auditor's inspection at any time.  The County Auditor must present

5-21     in writing any matter the auditor considers worthy of reporting to

5-22     the Board.

5-23           (g)  A requirement of this Act that the Board keep a copy of

5-24     a requisition, purchase order, or work order may be satisfied by

5-25     storing the information in a computer system if the information can

5-26     be made available to the County Auditor by a means and in a format

5-27     the County Auditor accepts.

 6-1           Sec. 4.  All claims against the Navigation District and all

 6-2     obligations of the Navigation District shall be paid only after

 6-3     approval of claims by the Board or after approval by the General

 6-4     Manager and at least three (3) of the Navigation Commissioners in

 6-5     instances covered and provided for in Section 3(c) of this Act and

 6-6     upon warrants issued or authorized by the governing board thereof

 6-7     or authorized by at least three (3) members of the governing board

 6-8     thereof in cases and under circumstances provided for in Section

 6-9     3(c) of this Act after such claims have been made available

6-10     [submitted] to and approved by the County Auditor.  When authorized

6-11     to do so, the General Manager may execute contracts previously

6-12     awarded by the governing Board or by at least three (3) of the

6-13     Navigation Commissioners in instances provided for in Section 3(c)

6-14     of this Act and may issue and sign any warrant upon the funds of

6-15     the District when the account or accounts in payment of which such

6-16     warrant is issued shall have been approved and ordered paid as

6-17     herein provided.  The General Manager may issue requisitions to put

6-18     into effect contracts executed and entered into pursuant to the

6-19     provisions of this Act or other applicable law and may issue

6-20     requisitions to give effect to and carry out, under the provisions

6-21     of and conditions contemplated and provided for in this Act,

6-22     contracts, purchases, payroll payments authorized and provided for

6-23     by the terms and provisions of this Act.  He may issue and sign all

6-24     payroll vouchers and checks, after the payroll shall have been

6-25     approved by the governing board or at least three (3) of the

6-26     Navigation Commissioners in instances covered and provided for in

6-27     Section 3(c) of this Act, and payment of the sums thereon listed

 7-1     authorized by the Board or by at least three (3) of the Navigation

 7-2     Commissioners in instances covered and provided for in Section 3(c)

 7-3     of this Act.

 7-4           Sec. 6.  The Board may, by an order or regulation entered in

 7-5     its minutes, provide for a system of hospitalization and medical

 7-6     attention for its employees, as a part of the compensation provided

 7-7     for such employees.  All contracts of employment shall be in

 7-8     writing, and shall make reference to the regulations governing the

 7-9     medical attention and hospitalization benefits, and such

7-10     regulations shall be a part of the contract of employment.  Such

7-11     regulations may be changed from time to time, as the necessities

7-12     may require, in the judgment of the Board.  [The contracts of

7-13     employment shall provide accordingly, and a copy of each contract

7-14     shall be filed immediately with the County Auditor for his

7-15     certificate of availability of funds before such contract shall

7-16     become effective.]

7-17           SECTION 2.  This Act takes effect September 1, 1997.

7-18           SECTION 3.  The importance of this legislation and the

7-19     crowded condition of the calendars in both houses create an

7-20     emergency and an imperative public necessity that the

7-21     constitutional rule requiring bills to be read on three several

7-22     days in each house be suspended, and this rule is hereby suspended.