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.