SRC-JJJ S.B. 1325 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1325
76R6732 CAS-FBy: Gallegos
Education
5/3/1999
As Filed


DIGEST 

Currently, Texas law requires a competitive bidding process for certain
services, while certain other services, such as architects, attorneys, and
such are exempt from the bidding process.  School districts are required to
aggregate purchasing contracts from all their campuses for purchases
exceeding a certain amount.  S.B. 1325 would establish provisions regarding
school district contracts and bonds. 

PURPOSE

As proposed, S.B. 1325 establishes provisions regarding school district
contracts and bonds. 

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 Section 44.031, Education Code, by amending Subsections
(f) and (h) and adding Subsection (m), to provide that this section does
not apply to certain professionals' fees received for professional services
rendered.  Requires the fees for those services to be determined as
appropriate.  Establishes that if certain school equipment or facilities
are destroyed or severely damaged, or a result of some other unforeseen
emergency or catastrophe, undergoes major operational or structural
failure, and the board of trustees determines that the delay posed by the
certain required methods would prevent or hamper the conduct of certain
school functions, then contracts for the replacement or repairs may be made
by a method other than those that are required. Provides that  if a school
district has formally adopted a campus-level planning and decision making
process, under which campuses may make purchases, Subsection (a)-(c) and
(g) apply to contracts for those purchases entered into by a district
campus, except the campus shall publish notice in a newspaper that fulfills
certain requirements.  Establishes that the district is not required to
aggregate and jointly award those contracts.  Deletes text regarding
competitive bidding. 

SECTION 2.  Amends Section 44.033, Education Code, by adding Subsection
(e), to make conforming changes.   

SECTION 3.  Amends Section 1(1), Article 717q, V.T.C.S., to redefine
"issuer." 

SECTION 4.  Amends Section 4.041, Article 717s, V.T.C.S., by adding
Subsection (d), to establish that certain individuals within a corporation,
in carrying out their corporate duties, have same liabilities and
immunities as if the corporation were a part of the sponsor. 

SECTION 5.  Amends Section 1, Article 717w, V.T.C.S., by amending
Subdivisions (6) and (7) and adding Subdivision (8), to define "eligible
school district" and "redefine "issuer."  Makes conforming changes. 

SECTION 6.  Amends Section 3, Article 717w, V.T.C.S., to authorize the
governing body of an eligible school district to authorize anticipation
notes for a described purpose. 

SECTION 7.  Amends Section 4(a), Article 717w, V.T.C.S., to establish that
this section applies  only to an eligible school district.  Makes
conforming changes. 

SECTION 8.  Amends Section 5, Article 717w, V.T.C.S., to make conforming
changes. 

SECTION 9.  Amends Sections 6(e) - (h), Article 717w, V.T.C.S., to provide
that anticipation notes issued by an eligible school district may not
exceed 75 percent of the income of the district for the previous year.
Makes conforming changes. 

SECTION 10.  Makes application of Section 44.031(f), Education Code, of
this Act prospective. 

SECTION 11.  Makes application of  Sections 44.031(m) and 44.031(e),
Education Code, of this Act prospective. 

SECTION 12.  Provides that Section 4.041(d), Article 717s,V.T.C.S., applies
to an act or omission of a public facility corporation or its employee
regardless of when the act was taken or the  omission occurred. 

SECTION 13.  Effective date: September 1, 1999.

SECTION 14.  Emergency clause.