JH H.B. 2692 75(R)BILL ANALYSIS URBAN AFFAIRS H.B. 2692 By: Ehrhardt 3-27-97 Committee Report (Unamended) BACKGROUND Federal regulations governing housing and community development programs provide more flexibility than local governments in the State of Texas may enjoy because of ambiguities in the Local Government Code. This proposed change in the Local Government code would clarify language to allow greater flexibility in the award of federal funds to nonprofit housing and community development organizations and would enable local governments in Texas to eliminate the requirement to competitively bid all programs administered by nonprofit housing organizations with federal funds. PURPOSE This bill conditionally eliminates the state requirement that state or federally funded community development awards be subject to competitive bidding requirements. The condition established in this bill is that a Request For Proposal process be established in its place. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends 252.021, Local Government Code by adding a new subsection (d) which exempts state and federal community development awards from the competitive bidding requirements of other "municipal funds" on the condition that a Request For Proposal process is utilized in making these awards. SECTION 2.Emergency Clause.