By: Gallegos S.B. No. 1325
A BILL TO BE ENTITLED
AN ACT
1-1 relating to school district purchasing and bonds.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 44.031, Education Code, is amended by
1-4 amending Subsections (f) and (h) and adding Subsection (m) to read
1-5 as follows:
1-6 (f) This section does not apply to a contract [fees
1-7 received] for professional services rendered, including services of
1-8 an architect, attorney, or fiscal agent. A school district may, at
1-9 its option, contract for professional services rendered by a
1-10 financial consultant or a technology consultant in the manner
1-11 provided by Section 2254.003, Government Code, in lieu of the
1-12 methods provided by this section [architect's fees, attorney's
1-13 fees, and fees for fiscal agents].
1-14 (h) If school equipment or all or part of a school facility
1-15 is destroyed, [or] severely damaged, or undergoes a major
1-16 unforeseen operational or structural failure, and the board of
1-17 trustees determines that the delay posed by the contracting methods
1-18 required by this section [competitive bidding process] would
1-19 prevent or substantially impair the conduct of classes or other
1-20 essential school activities, then contracts for the replacement or
1-21 repair of the equipment or all or part of the school facility may
1-22 be made by a method other than the methods [without competitive
1-23 bidding as otherwise] required by this section.
1-24 (m) If a purchase is made at the campus level in a school
2-1 district with an average daily attendance of 190,000 or more as
2-2 determined under Section 42.005, that has formally adopted a
2-3 site-based decision-making plan under Subchapter F, Chapter 11,
2-4 that delegates purchasing decisions to the campus level, this
2-5 section applies only to the campus and does not require the
2-6 district to aggregate and jointly award purchasing contracts.
2-7 SECTION 2. Section 44.033, Education Code, is amended by
2-8 adding Subsection (e) to read as follows:
2-9 (e) If a purchase is made at the campus level in a school
2-10 district with an average daily attendance of 190,000 or more as
2-11 determined under Section 42.005, that has formally adopted a
2-12 site-based decision-making plan under Subchapter F, Chapter 11,
2-13 that delegates purchasing decisions to the campus level, this
2-14 section applies only to the campus and does not require the
2-15 district to aggregate and jointly award purchasing contracts.
2-16 SECTION 3. Subdivision (1), Section 1, Chapter 656, Acts of
2-17 the 68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
2-18 Texas Civil Statutes), is amended to read as follows:
2-19 (1) "Issuer" means (A) any incorporated city operating
2-20 under a home-rule charter adopted pursuant to Article XI, Section
2-21 5, of the Constitution of Texas having a population according to
2-22 the latest federal decennial census of 90,000 or more and having
2-23 outstanding long-term debt secured by the revenues of the public
2-24 utility for which the obligations are being issued which is rated
2-25 by a nationally recognized rating agency for municipal securities
2-26 in one of the four highest rating categories for long-term
3-1 obligations; (B) any conservation and reclamation district created
3-2 and organized as a river authority under and pursuant to Article
3-3 III, Section 52, or Article XVI, Section 59, of the Constitution of
3-4 Texas and by an act of the legislature of the State of Texas; (C)
3-5 any joint powers agency organized and operating pursuant to Chapter
3-6 163, Utilities Code [166, Acts of the 63rd Legislature, Regular
3-7 Session, 1973 (Article 1435a, Revised Statutes)]; (D) any
3-8 metropolitan rapid transit authority or regional transportation
3-9 authority created, organized, and operating pursuant to Chapter 451
3-10 or 452, Transportation Code [141, Acts of the 63rd Legislature,
3-11 Regular Session, 1973 (Article 1118x, Revised Statutes) or Chapter
3-12 683, Acts of the 66th Legislature, Regular Session, 1979 (Article
3-13 1118y, Revised Statutes)]; (E) any conservation and reclamation
3-14 district organized or operating as a navigation district under and
3-15 pursuant to Article III, Section 52, or Article XVI, Section 59, of
3-16 the Constitution of Texas; (F) any district organized or operating
3-17 under and pursuant to Article XVI, Section 59, of the Constitution
3-18 of Texas which has all or part of two or more incorporated cities
3-19 within its boundaries; (G) agencies of the State of Texas
3-20 (including the governing boards of the state institutions of higher
3-21 education); (H) any hospital authority in a county with a
3-22 population of more than 2 million, according to the most recent
3-23 federal census, or any hospital authority in a county that is
3-24 included, in whole or in part, in a standard metropolitan
3-25 statistical area of this state that includes a county with a
3-26 population of more than 1,800,000, that was created or is operating
4-1 under Chapter 262, Health and Safety Code, or Chapter 264, Health
4-2 and Safety Code; (I) any nonprofit corporation organized to
4-3 exercise the powers of a higher education authority under
4-4 Subsection (e), Section 53.47, Education Code; [and] (J) a county
4-5 having a population of 2 million or more according to the most
4-6 recent federal census; and (K) an independent school district that
4-7 has an average daily attendance of 190,000 or more as determined
4-8 under section 42.005, Education Code.
4-9 SECTION 4. Section 3.028, Article 717s, Revised Statutes, is
4-10 amended by adding Subsection (g) to read as follows:
4-11 (g) A member of a corporation's board of directors who is
4-12 acting in good faith and in the course and scope of corporate
4-13 duties or functions has the same immunity from liability as state
4-14 law provides to a member of the governing body of the sponsor.
4-15 SECTION 5. Section 1, Article 717w, Revised Statutes, is
4-16 amended by amending Subdivisions (6) and (7) and adding Subdivision
4-17 (8) to read as follows:
4-18 (6) "Eligible school district" means an independent
4-19 school district that has an average daily attendance of 190,000 or
4-20 more as determined under Section 42.005, Education Code.
4-21 (7) "Governing body" means the board, council,
4-22 commission, court, or other body or group authorized to issue
4-23 anticipation notes for or on behalf of an issuer.
4-24 (8) [(7)] "Issuer" means a municipality, [or] county,
4-25 or eligible school district.
4-26 SECTION 6. Section 3, Article 717w, Revised Statutes, is
5-1 amended to read as follows:
5-2 Sec. 3. Purposes for which anticipation notes may be
5-3 authorized. (a) The commissioners court of a county, on
5-4 recommendation of the county auditor or budget officer if
5-5 applicable, or the governing body of a municipality may authorize
5-6 anticipation notes to:
5-7 (1) pay a contractual obligation incurred or to be
5-8 incurred for the construction of any public work;
5-9 (2) pay a contractual obligation incurred or to be
5-10 incurred for the purchase of materials, supplies, equipment,
5-11 machinery, buildings, lands, and rights-of-way for an issuer's
5-12 authorized needs and purposes;
5-13 (3) pay a contractual obligation incurred or to be
5-14 incurred for professional services, including services provided by
5-15 tax appraisal engineers, engineers, architects, attorneys,
5-16 mapmakers, auditors, financial advisors, and fiscal agents;
5-17 (4) pay operating expenses or current expenses; or
5-18 (5) fund the issuer's cumulative cash flow deficit.
5-19 (b) The governing body of an eligible school district may
5-20 authorize anticipation notes for a purpose described by Subsection
5-21 (a)(2), (3), (4), or (5) of this section.
5-22 SECTION 7. Subsection (a), Section 4, Article 717w, Revised
5-23 Statutes, is amended to read as follows:
5-24 (a) This section applies only to:
5-25 (1) a county; [or]
5-26 (2) a municipality that has a population of 80,000 or
6-1 more, according to the most recent federal census; or
6-2 (3) an eligible school district.
6-3 SECTION 8. Section 5, Article 717w, Revised Statutes, is
6-4 amended to read as follows:
6-5 Sec. 5. Authorization of anticipation notes by ordinance or
6-6 order. Anticipation notes may be authorized by an ordinance
6-7 adopted by the governing body of a municipality or by an order
6-8 adopted by the governing body of a county or an eligible school
6-9 district.
6-10 SECTION 9. Subsections (e), (f), (g), and (h), Section 6,
6-11 Article 717w, Revised Statutes, are amended to read as follows:
6-12 (e) Anticipation notes issued for a purpose described by
6-13 Section 3(a)(1), (2), or (3) [Subdivision (1), (2), or (3) of
6-14 Section 3] of this article must mature before the seventh
6-15 anniversary of the date that the attorney general approves the
6-16 notes.
6-17 (f) Anticipation notes issued for a purpose described in
6-18 Section 3(a)(4) or (5) [Subdivision (4) or (5) of Section 3] of
6-19 this article must mature before the first anniversary of the date
6-20 that the attorney general approves the notes.
6-21 (g) Anticipation notes issued by a municipality under
6-22 Section 3(a)(4) [Subdivision (4) of Section 3] of this article may
6-23 not exceed 75 percent of the revenues or taxes anticipated to be
6-24 collected in the fiscal year in which the attorney general approves
6-25 the notes. Anticipation notes issued by a county under Section
6-26 3(a)(4) [Subdivision (4) of Section 3] of this article may not
7-1 exceed 50 percent of the revenues or taxes anticipated to be
7-2 collected in the fiscal year in which the attorney general approves
7-3 the notes. Anticipation notes issued by an eligible school
7-4 district under Section 3(a)(4) of this article may not exceed 75
7-5 percent of the income of the district for the fiscal year preceding
7-6 the fiscal year in which the attorney general approves the notes.
7-7 (h) A county must comply with the competitive bidding
7-8 requirements of Subchapter C, Chapter 271, Local Government Code,
7-9 in connection with a contract to be paid from the proceeds of
7-10 anticipation notes issued for a purpose described by Section
7-11 3(a)(1) [3(1)] of this article.
7-12 SECTION 10. Subsection (f), Section 44.031, Education Code,
7-13 as amended by this Act, applies only to a contract for professional
7-14 services a school district entered into on or after the effective
7-15 date of this Act. A contract for professional services a school
7-16 district entered into before the effective date of this Act is
7-17 governed by the law in effect on the date the contract was entered
7-18 into, and that law is continued in effect for that purpose.
7-19 SECTION 11. Subsection (m), Section 44.031, and Subsection
7-20 (e), Section 44.033, Education Code, as added by this Act, apply
7-21 only to a contract a public school enters into on or after the
7-22 effective date of this Act. A contract a public school entered
7-23 into before the effective date of this Act is governed by the law
7-24 in effect on the date the contract was entered into, and that law
7-25 is continued in effect for that purpose.
7-26 SECTION 12. Subsection (g), Section 3.028, Article 717s,
8-1 Revised Statutes, as added by this Act, applies to an act or
8-2 omission of a public facility corporation or a director, officer,
8-3 or employee of a public facility corporation regardless of when the
8-4 act was taken or the omission occurred.
8-5 SECTION 13. This Act takes effect September 1, 1999.
8-6 SECTION 14. The importance of this legislation and the
8-7 crowded condition of the calendars in both houses create an
8-8 emergency and an imperative public necessity that the
8-9 constitutional rule requiring bills to be read on three several
8-10 days in each house be suspended, and this rule is hereby suspended.