1-1 By: Gallegos S.B. No. 1325
1-2 (In the Senate - Filed March 11, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Education; May 7, 1999,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 7, Nays 0; May 7, 1999, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1325 By: Zaffirini
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to school district purchasing and bonds.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 44.031, Education Code, is amended by
1-12 amending Subsections (f) and (h) and adding Subsection (m) to read
1-13 as follows:
1-14 (f) This section does not apply to a contract [fees
1-15 received] for professional services rendered, including services of
1-16 an architect, attorney, or fiscal agent. A school district may, at
1-17 its option, contract for professional services rendered by a
1-18 financial consultant or a technology consultant in the manner
1-19 provided by Section 2254.003, Government Code, in lieu of the
1-20 methods provided by this section [architect's fees, attorney's
1-21 fees, and fees for fiscal agents].
1-22 (h) If school equipment or all or part of a school facility
1-23 is destroyed, [or] severely damaged, or undergoes a major
1-24 unforeseen operational or structural failure, and the board of
1-25 trustees determines that the delay posed by the contracting methods
1-26 required by this section [competitive bidding process] would
1-27 prevent or substantially impair the conduct of classes or other
1-28 essential school activities, then contracts for the replacement or
1-29 repair of the equipment or all or part of the school facility may
1-30 be made by a method other than the methods [without competitive
1-31 bidding as otherwise] required by this section.
1-32 (m) If a purchase is made at the campus level in a school
1-33 district with an average daily attendance of 190,000 or more as
1-34 determined under Section 42.005, that has formally adopted a
1-35 site-based decision-making plan under Subchapter F, Chapter 11,
1-36 that delegates purchasing decisions to the campus level, this
1-37 section applies only to the campus and does not require the
1-38 district to aggregate and jointly award purchasing contracts.
1-39 SECTION 2. Section 44.033, Education Code, is amended by
1-40 adding Subsection (e) to read as follows:
1-41 (e) If a purchase is made at the campus level in a school
1-42 district with an average daily attendance of 190,000 or more as
1-43 determined under Section 42.005, that has formally adopted a
1-44 site-based decision-making plan under Subchapter F, Chapter 11,
1-45 that delegates purchasing decisions to the campus level, this
1-46 section applies only to the campus and does not require the
1-47 district to aggregate and jointly award purchasing contracts.
1-48 SECTION 3. Subdivision (1), Section 1, Chapter 656, Acts of
1-49 the 68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
1-50 Texas Civil Statutes), is amended to read as follows:
1-51 (1) "Issuer" means (A) any incorporated city operating
1-52 under a home-rule charter adopted pursuant to Article XI, Section
1-53 5, of the Constitution of Texas having a population according to
1-54 the latest federal decennial census of 90,000 or more and having
1-55 outstanding long-term debt secured by the revenues of the public
1-56 utility for which the obligations are being issued which is rated
1-57 by a nationally recognized rating agency for municipal securities
1-58 in one of the four highest rating categories for long-term
1-59 obligations; (B) any conservation and reclamation district created
1-60 and organized as a river authority under and pursuant to Article
1-61 III, Section 52, or Article XVI, Section 59, of the Constitution of
1-62 Texas and by an act of the legislature of the State of Texas; (C)
1-63 any joint powers agency organized and operating pursuant to Chapter
1-64 163, Utilities Code [166, Acts of the 63rd Legislature, Regular
2-1 Session, 1973 (Article 1435a, Revised Statutes)]; (D) any
2-2 metropolitan rapid transit authority or regional transportation
2-3 authority created, organized, and operating pursuant to Chapter 451
2-4 or 452, Transportation Code [141, Acts of the 63rd Legislature,
2-5 Regular Session, 1973 (Article 1118x, Revised Statutes) or Chapter
2-6 683, Acts of the 66th Legislature, Regular Session, 1979 (Article
2-7 1118y, Revised Statutes)]; (E) any conservation and reclamation
2-8 district organized or operating as a navigation district under and
2-9 pursuant to Article III, Section 52, or Article XVI, Section 59, of
2-10 the Constitution of Texas; (F) any district organized or operating
2-11 under and pursuant to Article XVI, Section 59, of the Constitution
2-12 of Texas which has all or part of two or more incorporated cities
2-13 within its boundaries; (G) agencies of the State of Texas
2-14 (including the governing boards of the state institutions of higher
2-15 education); (H) any hospital authority in a county with a
2-16 population of more than 2 million, according to the most recent
2-17 federal census, or any hospital authority in a county that is
2-18 included, in whole or in part, in a standard metropolitan
2-19 statistical area of this state that includes a county with a
2-20 population of more than 1,800,000, that was created or is operating
2-21 under Chapter 262, Health and Safety Code, or Chapter 264, Health
2-22 and Safety Code; (I) any nonprofit corporation organized to
2-23 exercise the powers of a higher education authority under
2-24 Subsection (e), Section 53.47, Education Code; [and] (J) a county
2-25 having a population of 2 million or more according to the most
2-26 recent federal census; and (K) an independent school district that
2-27 has an average daily attendance of 190,000 or more as determined
2-28 under section 42.005, Education Code.
2-29 SECTION 4. Section 3.028, Article 717s, Revised Statutes, is
2-30 amended by adding Subsection (g) to read as follows:
2-31 (g) A member of a corporation's board of directors who is
2-32 acting in good faith and in the course and scope of corporate
2-33 duties or functions has the same immunity from liability as state
2-34 law provides to a member of the governing body of the sponsor.
2-35 SECTION 5. Section 1, Article 717w, Revised Statutes, is
2-36 amended by amending Subdivisions (6) and (7) and adding Subdivision
2-37 (8) to read as follows:
2-38 (6) "Eligible school district" means an independent
2-39 school district that has an average daily attendance of 190,000 or
2-40 more as determined under Section 42.005, Education Code.
2-41 (7) "Governing body" means the board, council,
2-42 commission, court, or other body or group authorized to issue
2-43 anticipation notes for or on behalf of an issuer.
2-44 (8) [(7)] "Issuer" means a municipality, [or] county,
2-45 or eligible school district.
2-46 SECTION 6. Section 3, Article 717w, Revised Statutes, is
2-47 amended to read as follows:
2-48 Sec. 3. Purposes for which anticipation notes may be
2-49 authorized. (a) The commissioners court of a county, on
2-50 recommendation of the county auditor or budget officer if
2-51 applicable, or the governing body of a municipality may authorize
2-52 anticipation notes to:
2-53 (1) pay a contractual obligation incurred or to be
2-54 incurred for the construction of any public work;
2-55 (2) pay a contractual obligation incurred or to be
2-56 incurred for the purchase of materials, supplies, equipment,
2-57 machinery, buildings, lands, and rights-of-way for an issuer's
2-58 authorized needs and purposes;
2-59 (3) pay a contractual obligation incurred or to be
2-60 incurred for professional services, including services provided by
2-61 tax appraisal engineers, engineers, architects, attorneys,
2-62 mapmakers, auditors, financial advisors, and fiscal agents;
2-63 (4) pay operating expenses or current expenses; or
2-64 (5) fund the issuer's cumulative cash flow deficit.
2-65 (b) The governing body of an eligible school district may
2-66 authorize anticipation notes for a purpose described by Subsection
2-67 (a)(2), (3), (4), or (5) of this section.
2-68 SECTION 7. Subsection (a), Section 4, Article 717w, Revised
2-69 Statutes, is amended to read as follows:
3-1 (a) This section applies only to:
3-2 (1) a county; [or]
3-3 (2) a municipality that has a population of 80,000 or
3-4 more, according to the most recent federal census; or
3-5 (3) an eligible school district.
3-6 SECTION 8. Section 5, Article 717w, Revised Statutes, is
3-7 amended to read as follows:
3-8 Sec. 5. Authorization of anticipation notes by ordinance or
3-9 order. Anticipation notes may be authorized by an ordinance adopted
3-10 by the governing body of a municipality or by an order adopted by
3-11 the governing body of a county or an eligible school district.
3-12 SECTION 9. Subsections (e), (f), (g), and (h), Article 717w,
3-13 Revised Statutes, are amended to read as follows:
3-14 (e) Anticipation notes issued for a purpose described by
3-15 Section 3(a)(1), (2), or (3) [Subdivision (1), (2), or (3) of
3-16 Section 3] of this article must mature before the seventh
3-17 anniversary of the date that the attorney general approves the
3-18 notes.
3-19 (f) Anticipation notes issued for a purpose described in
3-20 Section 3(a)(4) or (5) [Subdivision (4) or (5) of Section 3] of
3-21 this article must mature before the first anniversary of the date
3-22 that the attorney general approves the notes.
3-23 (g) Anticipation notes issued by a municipality under
3-24 Section 3(a)(4) [Subdivision (4) of Section 3] of this article may
3-25 not exceed 75 percent of the revenues or taxes anticipated to be
3-26 collected in the fiscal year in which the attorney general approves
3-27 the notes. Anticipation notes issued by a county under Section
3-28 3(a)(4) [Subdivision (4) of Section 3] of this article may not
3-29 exceed 50 percent of the revenues or taxes anticipated to be
3-30 collected in the fiscal year in which the attorney general approves
3-31 the notes. Anticipation notes issued by an eligible school
3-32 district under Section 3(a)(4) of this article may not exceed 75
3-33 percent of the income of the district for the fiscal year preceding
3-34 the fiscal year in which the attorney general approves the notes.
3-35 (h) A county must comply with the competitive bidding
3-36 requirements of Subchapter C, Chapter 271, Local Government Code,
3-37 in connection with a contract to be paid from the proceeds of
3-38 anticipation notes issued for a purpose described by Section
3-39 3(a)(1) [3(1)] of this article.
3-40 SECTION 10. Subsection (f), Section 44.031, Education Code,
3-41 as amended by this Act, applies only to a contract for professional
3-42 services a school district entered into on or after the effective
3-43 date of this Act. A contract for professional services a school
3-44 district entered into before the effective date of this Act is
3-45 governed by the law in effect on the date the contract was entered
3-46 into, and that law is continued in effect for that purpose.
3-47 SECTION 11. Subsection (m), Section 44.031, and Subsection
3-48 (e), Section 44.033, Education Code, as added by this Act, apply
3-49 only to a contract a public school enters into on or after the
3-50 effective date of this Act. A contract a public school entered
3-51 into before the effective date of this Act is governed by the law
3-52 in effect on the date the contract was entered into, and that law
3-53 is continued in effect for that purpose.
3-54 SECTION 12. Subsection (g), Section 3.028, Article 717s,
3-55 Revised Statutes, as added by this Act, applies to an act or
3-56 omission of a public facility corporation or a director, officer,
3-57 or employee of a public facility corporation regardless of when the
3-58 act was taken or the omission occurred.
3-59 SECTION 13. This Act takes effect September 1, 1999.
3-60 SECTION 14. The importance of this legislation and the
3-61 crowded condition of the calendars in both houses create an
3-62 emergency and an imperative public necessity that the
3-63 constitutional rule requiring bills to be read on three several
3-64 days in each house be suspended, and this rule is hereby suspended.
3-65 * * * * *