HBA-JRA H.B. 3026 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3026 By: Dutton Public Education 4/20/1999 Introduced BACKGROUND AND PURPOSE Currently, a school district is authorized to contract for the replacement or repair of equipment damaged as a result of an unforseen emergency or catastrophe without competitive bidding if the delay caused by competitive bidding would prevent or substantially impair the conduct of essential school activities. In addition, a school district does not have the authority to authorize anticipation notes to pay contractual obligations. H.B. 3025 expands a school district's authority to contract for the replacement or repair of a part of a school facility damaged as a result of an unforseen emergency or catastrophe. This bill also authorizes the governing body of an eligible school district to authorize anticipation notes to pay certain contractual obligations other than those incurred for the construction of any public work, to pay operating or current expenses, or to fund the issuer's cumulative cash flow deficit. In addition, this bill extends the requirements placed on school districts for making contracts and for purchasing personal property to a campus-level planning and decision-making process. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 44.031, Education Code, by amending Subsections (f) and (h) and adding Subsection (m), as follows: (f) Includes fees received for the services of a computer programmer, systems analyst, and financial consultant among the fees to which this section (Purchasing Contracts) does not apply. Requires fees for those services to be determined in the manner provided by Section 2254.003 (Selection of Provider; Fees) or 2254.004 (Contract for Professional Services of Architect, Engineer, or Surveyor), Government Code, as appropriate. Makes nonsubstantive changes. (h) Authorizes the board of trustees to use a method other than the methods described by this section to contract for the replacement of a part of a school facility that is destroyed or severely damaged if the delay posed by using the methods required by this section would prevent or substantially impair the conduct of essential school activities. Makes nonsubstantive changes. (m) Provides that Subsections (a)-(c) and (g) apply to the contracts for those purchases entered into by a district campus if a school district has formally adopted a campus-level planning and decision-making process as provided by Subchapter F (District-Level and Site-Based Decision-Making), Chapter 11 (School Districts), except that the campus is required to publish notice in a newspaper published in the county in which the campus is located or in a newspaper published in the county nearest the county seat of the county in which the campus is located, as applicable. Provides that the district is not required to aggregate and jointly award those contracts. SECTION 2. Amends Section 44.033, Education Code, by adding Subsection (e), as follows: (e) Provides that this section (Purchases of Personal Property Valued Between $10,000 and $25,000) applies to the contracts for those purchases entered into by a district campus if a school district has formally adopted a campus-level planning and decision-making process as provided by Subchapter F (District-Level and Site-Based Decision-Making), Chapter 11 (School Districts), except that the campus is required to publish notice in a newspaper published in the county in which the campus is located or in a newspaper published in the county nearest the county seat of the county in which the campus is located, as applicable. Provides that the district is not required to aggregate and jointly award those contracts. SECTION 3. Amends Section 1(1), Article 717g, V.T.C.S., to redefine "issuer" to include an independent school district that has an average daily attendance of 190,000 or more as determined under Section 42.005 (Average Daily Attendance), Education Code. Updates references to recodified law. SECTION 4. Amends Section 4.041, Article 717s, V.T.C.S., by adding Subsection (d), as follows: (d) Provides that a corporation and the officers, directors, and employees of the corporation, in carrying out corporate duties, have the same liabilities and immunities as if the corporation were a part of the sponsor. SECTION 5. Amends Section 1, Article 717w, V.T.C.S., by amending Subdivisions (6) and (7) and adding Subdivision (8), as follows: (6) Defines "eligible school district." (7) Redesignated from existing Subdivision (6). (8) Redefines "issuer" to include an eligible school district. Redesignated from existing Subdivision (7). 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 to pay certain contractual obligations other than those incurred for the construction of any public work, to pay operating or current expenses, or to fund the issuer's cumulative cash flow deficit. SECTION 7. Amends Section 4(a), Article 717w, V.T.C.S., to provide that this section (Additional Authority for Counties and Certain Municipalities) applies to an eligible school district. Makes conforming changes. SECTION 8. Amends Section 5, Article 717w, V.T.C.S., to make a conforming change. SECTION 9. Amends Sections 6(e)-(h), Article 717w, V.T.C.S., to prohibit anticipation notes issued by an eligible school district from exceeding 75 percent of the income of the district for the previous year. Makes conforming changes. SECTION 10. Makes application of Section 44.031(f), Education Code, as amended by this Act, prospective. SECTION 11. Makes application of Sections 44.031(m) and 44.033(e), Education Code, as added by this Act, prospective. SECTION 12. Provides that Section 4.041(d), Article 717s, V.T.C.S., as added by this Act, applies to an act or omission of a public facility corporation or a director, officer, or employee of a public facility corporation regardless of when the act was taken or the omission occurred. SECTION 13. Effective date: September 1, 1999. SECTION 14. Emergency clause.