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.