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


Senate Research CenterC.S.S.B. 1325
76R14117 CAS-FBy: Gallegos
Education
5/6/1999
Committee Report (Substituted)


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. C.S.S.B. 1325 would establish provisions
regarding school district contracts and bonds. 

PURPOSE

As proposed, C.S.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 a contract for certain professional services rendered.
Authorizes a school district to contract for professional services rendered
by a financial consultant or a technology consultant in the manner provided
by Section 2254.003, Government Code, in lieu of the methods provided by
this section. Establishes that if all or part of certain school equipment
or facilities are destroyed, severely damaged, or  undergoes a major
unforeseen operational or structural failure, and the board of trustees
determines that the delay posed by the contracting 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 purchase is made at the campus level in a
school district with an average daily attendance of 190,000 or more.
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 3.028, Article 717s, V.T.C.S., by adding
Subsection (g), to establish that a member of a corporation's board of
directors who is acting in good faith and in the course and scope of
corporate duties or functions has the same immunity or liability as state
law provides to a member of the governing body 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 fiscal year
preceding the fiscal year in which the attorney general approves the notes.
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.

SUMMARY OF COMMITTEE CHANGES

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 a
contract for certain professional services rendered. Authorizes a school
district to contract for professional services rendered by a financial
consultant or a technology consultant in the manner provided by Section
2254.003, Government Code, in lieu of the methods provided by this section.
Establishes that if all or part of certain school equipment or facilities
are destroyed or severely damaged, or  undergoes a major unforeseen
operational or structural failure, and the board of trustees determines
that the delay posed by the contracting 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 purchase is made at the campus level in a school
district with an average daily attendance of 190,000 or more.  Deletes
proposed Subsection (m). 

SECTION 2.

Amends Section 44.033(e), Education Code, to make conforming changes.
Deletes proposed Subsection (e). 

SECTION 4.  

Amends Section 3.028, Article 717s, V.T.C.S., by adding Subsection (g), to
establish that a member of a corporation's board of directors who is acting
in good faith and in the course and scope of corporate duties or functions
has the same immunity or liability as state law provides to a member of the
governing body of the sponsor.  Deletes proposed SECTION 4. 

SECTION 9.  

Amends Section 6(g), 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 fiscal year preceding the fiscal year in
which the attorney general approves the notes. 

SECTION 10.  

 Makes conforming changes.