By Junell                                        H.B. No. 980

      75R1143 CAG-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the operation and oversight of a regional planning

 1-3     commission, council of government, or other similar regional

 1-4     planning agency.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 391.009, Local Government Code, is

 1-7     amended to read as follows:

 1-8           Sec. 391.009.  ROLE OF GOVERNOR AND STATE AGENCIES.  (a)  To

 1-9     protect the public interest or promote the efficient use of public

1-10     funds, the [The] governor shall adopt:

1-11                 (1)  rules relating to the operation and oversight of a

1-12     commission;

1-13                 (2)  rules relating to the receipt or  expenditure of

1-14     funds by a commission, including:

1-15                       (A)  restrictions on the expenditure of any

1-16     portion of commission funds for certain classes of expenses; and

1-17                       (B)  restrictions on the maximum amount of or

1-18     percentage of commission funds that may be expended on a class of

1-19     expenses, including indirect costs or travel expenses;

1-20                 (3)  annual reporting requirements for a commission;

1-21                 (4)  annual audit requirements on funds received or

1-22     expended by a commission from any source;

1-23                 (5)  rules relating to the establishment and use of

1-24     standards by which the productivity and performance of each

 2-1     commission can be evaluated; and

 2-2                 (6)  [issue] guidelines that [to] commissions and

 2-3     governmental units shall follow in carrying [to carry] out the

 2-4     provisions of this chapter relating to review and comment

 2-5     procedures.

 2-6           (b)  The governor and state agencies shall provide technical

 2-7     information and assistance to the members and staff of a commission

 2-8     to increase, to the greatest extent feasible, the capability of the

 2-9     commission to discharge its duties and responsibilities prescribed

2-10     by this chapter and to ensure compliance with the rules,

2-11     requirements, and guidelines adopted under Subsection (a).

2-12           (c)  The governor shall appoint one member to each

2-13     commission.

2-14           SECTION 2.  Chapter 391, Local Government Code, is amended by

2-15     adding Section 391.0095 to read as follows:

2-16           Sec. 391.0095.  AUDIT AND REPORTING REQUIREMENTS.  (a)  The

2-17     audit and reporting requirements under Section 391.009(a) shall

2-18     include a requirement that a commission annually report to the

2-19     governor:

2-20                 (1)  the amount and source of funds received by the

2-21     commission;

2-22                 (2)  the amount and source of funds expended by the

2-23     commission;

2-24                 (3)  an explanation of any method used by the

2-25     commission to compute an expense of the commission, including

2-26     computation of any indirect cost of the commission;

2-27                 (4)  a report of the commission's productivity and

 3-1     performance during the annual reporting period;

 3-2                 (5)  a projection of the commission's productivity and

 3-3     performance during the next annual reporting period;

 3-4                 (6)  the results of an audit of the commission's

 3-5     affairs prepared by an independent certified public accountant; and

 3-6                 (7)  a report of any assets disposed of by the

 3-7     commission.

 3-8           (b)  A commission shall submit any other report or an audit

 3-9     required by the governor.

3-10           (c)  If a commission fails to submit a report or audit

3-11     required under this section or is determined by the governor to

3-12     have failed to comply with a rule, requirement, or guideline

3-13     adopted under Section 391.009, the governor may, until the failure

3-14     is corrected:

3-15                 (1)  appoint a receiver to operate or oversee the

3-16     commission; or

3-17                 (2)  withhold any funds of the commission.

3-18           (d)  A commission shall also send to the state auditor, the

3-19     comptroller, and the Legislative Budget Board a copy of a report or

3-20     an audit required under this section or under Section 391.009.  If

3-21     the governor determines that there is a question about the

3-22     appropriateness of an expenditure or other action of a commission,

3-23     the governor shall report the  expenditure or other action to the

3-24     state auditor for review.

3-25           SECTION 3.  Section 391.011(d), Local Government Code, is

3-26     amended to read as follows:

3-27           (d)  A commission may not expend funds for an automobile

 4-1     allowance for a member of the governing body of the commission if

 4-2     the member holds another state, county, or municipal office.

 4-3     [Funds may be expended for reimbursement of actual travel expenses,

 4-4     including mileage for automobile travel, incurred while the member

 4-5     is engaged  in the official business of the commission.]

 4-6           SECTION 4.  Chapter 391, Local Government Code, is amended by

 4-7     adding Sections 391.0115-391.0117 to read as follows:

 4-8           Sec. 391.0115.  RESTRICTIONS ON COMMISSION COSTS.  (a)  In

 4-9     reimbursing commission personnel for travel expenses, a commission

4-10     may not expend funds for travel in excess of the amount of money

4-11     that may be  expended for state personnel under the general

4-12     appropriations act or travel regulations adopted by the

4-13     comptroller, including any restrictions on mileage reimbursement,

4-14     per diem, and lodging reimbursement rates.

4-15           (b)  A commission may not expend any funds for the purchase

4-16     of alcoholic beverages or entertainment.

4-17           (c)  A commission may purchase goods or a service only if the

4-18     commission complies with the same provisions for purchasing goods

4-19     or a service that are equivalent to the provisions applying to a

4-20     state agency, including Chapters 2155-2158, Government Code.

4-21           (d)  A commission may not spend more than the lesser of the

4-22     following on indirect costs of the commission:

4-23                 (1)  20 percent of the commission's direct personnel

4-24     costs; or

4-25                 (2)  10 percent of the commission's total direct costs.

4-26           (e)  In this section, "indirect costs" means costs that are

4-27     not directly attributable to a single action of a commission.  The

 5-1     governor may further define the term as necessary to assist in the

 5-2     administration of this section.

 5-3           Sec. 391.0116.  RESTRICTIONS ON EMPLOYMENT.  (a)  An officer

 5-4     or employee of a commission is subject to the same rules regarding

 5-5     lobbying and other advocacy activities as an officer or employee of

 5-6     any state agency.

 5-7           (b)  The nepotism provisions of Chapter 573, Government Code,

 5-8     apply to a commission.

 5-9           Sec. 391.0117.  SALARY SCHEDULES.  (a)  For each fiscal year,

5-10     a commission shall adopt a salary schedule containing a

5-11     classification salary schedule for classified positions and

5-12     identifying and specifying the salaries for positions exempt from

5-13     the classification salary schedule.

5-14           (b)  The salary schedule adopted by the commission must be

5-15     identical, for classified positions, to the state salary schedule

5-16     for classified positions as prescribed by the general

5-17     appropriations act adopted by the most recent legislature.

5-18           (c)  A salary for a position classified under the salary

5-19     schedule may not exceed the salary approved by the state auditor's

5-20     office and paid by the state for comparable work.

5-21           (d)  A position may only be exempted from the classification

5-22     salary schedule adopted by the commission if the exemption and the

5-23     amount of salary paid for the exempt position is within the range

5-24     determined appropriate for exempt positions by  the state auditor.

5-25           (e)  A commission shall submit to the governor for approval

5-26     the commission's salary schedule, including the salaries of all

5-27     exempt positions, not later than the 45th day before the date of

 6-1     the beginning of the commission's fiscal year.  A commission may

 6-2     not implement a salary schedule unless the salary schedule is

 6-3     approved by the governor.

 6-4           SECTION 5.  This Act takes effect September 1, 1997.

 6-5           SECTION 6.  (a)  The governor shall adopt rules,

 6-6     requirements, and guidelines required by Sections 391.009 and

 6-7     391.0095, Local Government Code, as amended or added by this Act,

 6-8     not later than January 1, 1998.

 6-9           (b)  An entity required to file an audit or a  report under

6-10     Section 391.009 or Section 391.0095, Local Government Code, as

6-11     amended or added by this Act, shall file the initial audit or

6-12     report not later than September 1, 1998.

6-13           SECTION 7.  The importance of this legislation and the

6-14     crowded condition of the calendars in both houses create an

6-15     emergency and an imperative public necessity that the

6-16     constitutional rule requiring bills to be read on three several

6-17     days in each house be suspended, and this rule is hereby suspended.