By Dutton                                             H.B. No. 3026
         76R6732 CAS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to school district contracts and bonds.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 44.031, Education Code, is amended by
 1-5     amending Subsections (f) and (h) and adding Subsection (m) to read
 1-6     as follows:
 1-7           (f)  This section does not apply to fees received for
 1-8     professional services rendered, including [architect's fees,
 1-9     attorney's fees, and] fees for the services of an architect,
1-10     attorney, computer programmer, systems analyst, financial
1-11     consultant, or fiscal agent [agents].  Fees for those services
1-12     shall be determined in the manner provided by Section 2254.003 or
1-13     2254.004, Government Code, as appropriate.
1-14           (h)  If school equipment or part of a school facility is
1-15     destroyed or severely damaged or, as a result of an unforeseen
1-16     emergency or catastrophe, undergoes major operational or structural
1-17     failure, and the board of trustees determines that the delay posed
1-18     by the methods required by this section [competitive bidding
1-19     process] would prevent or substantially impair the conduct of
1-20     classes or other essential school activities, then contracts for
1-21     the replacement or repair of the equipment or part of the school
1-22     facility may be made by a method other than the methods [without
1-23     competitive bidding as otherwise] required by this section.
1-24           (m)  If a school district has formally adopted a campus-level
 2-1     planning and decision-making process as provided by Subchapter F,
 2-2     Chapter 11, under which district campuses are authorized to make
 2-3     certain purchases, Subsections (a)-(c) and (g) apply to the
 2-4     contracts for those purchases entered into by a district campus,
 2-5     except the campus shall publish notice under Subsection (g) in a
 2-6     newspaper published in the county in which the  campus is located
 2-7     or in a newspaper published in the county nearest the county seat
 2-8     of the county in which the campus is located, as applicable.  The
 2-9     district is not required to aggregate and jointly award those
2-10     contracts.
2-11           SECTION 2.  Section 44.033, Education Code, is amended by
2-12     adding Subsection (e) to read as follows:
2-13           (e)  If a school district has formally adopted a campus-level
2-14     planning and decision-making process as provided by Subchapter F,
2-15     Chapter 11, under which district campuses are authorized to make
2-16     certain purchases, this section applies to the contracts for those
2-17     purchases entered into by a district campus, except the campus
2-18     shall publish notice under Subsection (b) in a newspaper published
2-19     in the county in which the  campus is located or in a newspaper
2-20     published in the county nearest the county seat of the county in
2-21     which the campus is located, as applicable.  The district is not
2-22     required to aggregate and jointly award those contracts.
2-23           SECTION 3.  Section 1(1), Chapter 656, Acts of the 68th
2-24     Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
2-25     Civil Statutes), is amended to read as follows:
2-26                 (1)  "Issuer" means (A)  any incorporated city
2-27     operating under a home-rule charter adopted pursuant to Article XI,
 3-1     Section 5, of the Constitution of Texas having a population
 3-2     according to the latest federal decennial census of 90,000 or more
 3-3     and having outstanding long-term debt secured by the revenues of
 3-4     the public utility for which the obligations are being issued which
 3-5     is rated by a nationally recognized rating agency for municipal
 3-6     securities in one of the four highest rating categories for
 3-7     long-term obligations; (B)  any conservation and reclamation
 3-8     district created and organized as a river authority under and
 3-9     pursuant to Article III, Section 52, or Article XVI, Section 59, of
3-10     the Constitution of Texas and by an act of the legislature of the
3-11     State of Texas; (C)  any joint powers agency organized and
3-12     operating pursuant to Chapter 163, Utilities Code [166, Acts of the
3-13     63rd Legislature, Regular Session, 1973 (Article 1435a, Revised
3-14     Statutes)]; (D)  any metropolitan rapid transit authority or
3-15     regional transportation authority created, organized, and operating
3-16     pursuant to Chapter 451 or 452, Transportation Code [141, Acts of
3-17     the 63rd Legislature, Regular Session, 1973 (Article 1118x, Revised
3-18     Statutes) or Chapter 683, Acts of the 66th Legislature, Regular
3-19     Session, 1979 (Article 1118y, Revised Statutes)]; (E)  any
3-20     conservation and reclamation district organized or operating as a
3-21     navigation district under and pursuant to Article III, Section 52,
3-22     or Article XVI, Section 59, of the Constitution of Texas; (F)  any
3-23     district organized or operating under and pursuant to Article XVI,
3-24     Section 59, of the Constitution of Texas which has all or part of
3-25     two or more incorporated cities within its boundaries;
3-26     (G)  agencies of the State of Texas (including the governing boards
3-27     of the state institutions of higher education); (H)  any hospital
 4-1     authority in a county with a population of more than 2 million,
 4-2     according to the most recent federal census, or any hospital
 4-3     authority in a county that is included, in whole or in part, in a
 4-4     standard metropolitan statistical area of this state that includes
 4-5     a county with a population of more than 1,800,000, that was created
 4-6     or is operating under Chapter 262, Health and Safety Code, or
 4-7     Chapter 264, Health and Safety Code; (I)  any nonprofit corporation
 4-8     organized to exercise the powers of a higher education authority
 4-9     under Subsection (e), Section 53.47, Education Code; [and] (J)  a
4-10     county having a population of 2 million or more according to the
4-11     most recent federal census; and (K) an independent school district
4-12     that has an average daily attendance of 190,000 or more as
4-13     determined under Section 42.005, Education Code.
4-14           SECTION 4.  Section 4.041, Article 717s, Revised Statutes, is
4-15     amended by adding Subsection (d) to read as follows:
4-16           (d)  A corporation and the officers, directors, and employees
4-17     of the corporation, in carrying out corporate duties, have the same
4-18     liabilities and immunities as if the corporation were a part of the
4-19     sponsor.
4-20           SECTION 5.  Section 1, Chapter 137, Acts of the 73rd
4-21     Legislature, Regular Session, 1993 (Article 717w, Vernon's Texas
4-22     Civil Statutes), is amended by amending Subdivisions (6) and (7)
4-23     and adding Subdivision (8) to read as follows:
4-24                 (6)  "Eligible school district" means an independent
4-25     school district that has an average daily attendance of 190,000 or
4-26     more as determined  under Section 42.005, Education Code.
4-27                 (7)  "Governing body" means the board, council,
 5-1     commission, court, or other body or group authorized to issue
 5-2     anticipation notes for or on behalf of an issuer.
 5-3                 (8) [(7)]  "Issuer" means a municipality, [or] county,
 5-4     or eligible school district.
 5-5           SECTION 6.  Section 3, Chapter 137, Acts of the 73rd
 5-6     Legislature, Regular Session, 1993 (Article 717w, Vernon's Texas
 5-7     Civil Statutes), is amended to read as follows:
 5-8           Sec. 3.  (a)  The commissioners court of a county, on
 5-9     recommendation of the county auditor or budget officer if
5-10     applicable, or the governing body of a municipality may authorize
5-11     anticipation notes to:
5-12                 (1)  pay a contractual obligation incurred or to be
5-13     incurred for the construction of any public work;
5-14                 (2)  pay a contractual obligation incurred or to be
5-15     incurred for the purchase of materials, supplies, equipment,
5-16     machinery, buildings, lands, and rights-of-way for an issuer's
5-17     authorized needs and purposes;
5-18                 (3)  pay a contractual obligation incurred or to be
5-19     incurred for professional services, including services provided by
5-20     tax appraisal engineers, engineers, architects, attorneys,
5-21     mapmakers, auditors, financial advisors, and fiscal agents;
5-22                 (4)  pay operating expenses or current expenses; or
5-23                 (5)  fund the issuer's cumulative cash flow deficit.
5-24           (b)  The governing body of an eligible school district may
5-25     authorize anticipation notes for a purpose described by Subsection
5-26     (a)(2), (3), (4), or (5) of this section.
5-27           SECTION 7.  Section 4(a), Chapter 137, Acts of the 73rd
 6-1     Legislature, Regular Session, 1993 (Article 717w, Vernon's Texas
 6-2     Civil Statutes), is amended to read as follows:
 6-3           (a)  This section applies only to:
 6-4                 (1)  a county; [or]
 6-5                 (2)  a municipality that has a population of 80,000 or
 6-6     more, according to the most recent federal census; or
 6-7                 (3)  an eligible school district.
 6-8           SECTION 8.  Section 5, Chapter 137, Acts of the 73rd
 6-9     Legislature, Regular Session, 1993 (Article 717w, Vernon's Texas
6-10     Civil Statutes), is amended to read as follows:
6-11           Sec. 5.  Anticipation notes may be authorized by an ordinance
6-12     adopted by the governing body of a municipality or by an order
6-13     adopted by the governing body of a county or an eligible school
6-14     district.
6-15           SECTION 9.  Sections 6(e)-(h), Chapter 137, Acts of the 73rd
6-16     Legislature, Regular Session, 1993 (Article 717w, Vernon's Texas
6-17     Civil Statutes), are amended to read as follows:
6-18           (e)  Anticipation notes issued for a purpose described by
6-19     Section 3(a)(1), (2), or (3) [Subdivision (1), (2), or (3) of
6-20     Section 3] of this article must mature before the seventh
6-21     anniversary of the date that the attorney general approves the
6-22     notes.
6-23           (f)  Anticipation notes issued for a purpose described in
6-24     Section 3(a)(4) or (5) [Subdivision (4) or (5) of Section 3] of
6-25     this article must mature before the first anniversary of the date
6-26     that the attorney general approves the notes.
6-27           (g)  Anticipation notes issued by a municipality under
 7-1     Section 3(a)(4) [Subdivision (4) of Section 3] of this article may
 7-2     not exceed 75 percent of the revenues or taxes anticipated to be
 7-3     collected in the fiscal year in which the attorney general approves
 7-4     the notes.  Anticipation notes issued by a county under Section
 7-5     3(a)(4) [Subdivision (4) of Section 3] of this article may not
 7-6     exceed 50 percent of the revenues or taxes anticipated to be
 7-7     collected in the fiscal year in which the attorney general approves
 7-8     the notes.  Anticipation notes issued by an eligible school
 7-9     district under Section 3(a)(4) of this article may not exceed 75
7-10     percent of the income of the district for the previous year.
7-11           (h)  A county must comply with the competitive bidding
7-12     requirements of Subchapter C, Chapter 271, Local Government Code,
7-13     in connection with a contract to be paid from the proceeds of
7-14     anticipation notes issued for a purpose described by Section
7-15     3(a)(1) [3(1)] of this article.
7-16           SECTION 10.  Section 44.031(f), Education Code, as amended by
7-17     this Act, applies only to fees a school district pays for
7-18     professional services under a contract entered into on or after the
7-19     effective date of this Act.  Fees a school district pays for
7-20     professional services under a contract entered into before the
7-21     effective date of this Act is governed by the law in effect on the
7-22     date the contract was entered into, and that law is continued in
7-23     effect for that purpose.
7-24           SECTION 11.  Sections 44.031(m) and 44.033(e), Education
7-25     Code, as added by this Act, apply only to a contract a public
7-26     school enters into on or after the effective date of this Act.  A
7-27     contract a public school entered into before the effective date of
 8-1     this Act is governed by the law in effect on the date the contract
 8-2     was entered into, and that law is continued in effect for that
 8-3     purpose.
 8-4           SECTION 12.  Section 4.041(d), Article 717s, Revised
 8-5     Statutes, as added by this Act, applies to an act or omission of a
 8-6     public facility corporation or a director, officer, or employee of
 8-7     a public facility corporation regardless of when the act was taken
 8-8     or the omission occurred.
 8-9           SECTION 13.  This Act takes effect September 1, 1999.
8-10           SECTION 14.  The importance of this legislation and the
8-11     crowded condition of the calendars in both houses create an
8-12     emergency and an imperative public necessity that the
8-13     constitutional rule requiring bills to be read on three several
8-14     days in each house be suspended, and this rule is hereby suspended.