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.