By:  Haywood                                 S.B. No. 1055

         97S0568/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the oversight and operations of regional planning

 1-2     commissions and councils of governments.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 391.002, Local Government Code, is

 1-5     amended by adding Subdivision (4) to read as follows:

 1-6                 (4)  "Unit of local government" includes a regional

 1-7     planning commission or council of governments formed by counties

 1-8     and municipalities under the provisions of this chapter.

 1-9           SECTION 2.  Subsections (a) and (b), Section 391.005, Local

1-10     Government Code, are amended to read as follows:

1-11           (a)  A commission may contract with a participating

1-12     governmental unit to perform a service if:

1-13                 (1)  the participating governmental unit could contract

1-14     with another governmental unit, the state, or a private

1-15     organization without governmental powers to perform the service;

1-16     and

1-17                 (2)  the contract to perform the service does not

1-18     impose a cost or obligation on a participating governmental unit

1-19     not a party to the contract.

1-20           (b)  A commission may:

1-21                 (1)  purchase, lease, or otherwise acquire property;

1-22                 (2)  hold or sell or otherwise dispose of property;

1-23                 (3)  employ staff and consult with and retain experts;

 2-1     or

 2-2                 (4)(A)  provide retirement benefits for its employees

 2-3     through a jointly contributory retirement plan with an agency,

 2-4     firm, or corporation authorized to do business in the state; or

 2-5                       (B)  participate in the Texas Municipal

 2-6     Retirement System[, the Employees Retirement System of Texas,] or

 2-7     the Texas County and District Retirement System when those systems

 2-8     by legislation or administrative arrangement permit participation.

 2-9           SECTION 3.  Section 391.006, Local Government Code, is

2-10     amended by adding Subsections (c), (d), and (e) to read as follows:

2-11           (c)  The governing body of each commission shall establish

2-12     salary schedules for all employees, benefits available to

2-13     employees, travel approval and reimbursement policies, and

2-14     procurement policies and procedures.  Salary schedules shall not be

2-15     changed without a compensation study of market salaries and

2-16     benefits and any changes shall be consistent with the findings of

2-17     the study.  Procurement policies shall be equivalent to those

2-18     required of municipalities by Chapter 252.

2-19           (d)  The governing body of each commission shall arrange

2-20     annually for at lease eight hours of training for its members.

2-21     Training topics shall include the personnel, procurement, and

2-22     travel policies of the commission; the duties of governing board

2-23     members; compliance with open meeting, open records,

2-24     conflict-of-interest, and nepotism laws applying to the commission;

2-25     and the finances and work program of the commission, including

 3-1     audits and contractual responsibilities to state and federal

 3-2     agencies.  Training on the required topics may be provided as a

 3-3     part of other required training for county or municipal officials.

 3-4           (e)  The nepotism provisions of Chapter 573, Government Code,

 3-5     apply to a commission.

 3-6           SECTION 4.  Section 391.009, Local Government Code, is

 3-7     amended to read as follows:

 3-8           Sec. 391.009.  ROLE OF GOVERNOR AND STATE AGENCIES.  (a)  The

 3-9     governor shall issue rules for [guidelines to] commissions and

3-10     governmental units to carry out the provisions of this chapter,

3-11     including but not limited [relating] to review and comment

3-12     procedures.

3-13           (b)  The governor and state agencies shall provide technical

3-14     information and assistance to the members and staff of a commission

3-15     to increase, to the greatest extent feasible, the capability of the

3-16     commission to discharge its duties and responsibilities prescribed

3-17     by this chapter and to ensure compliance with the rules adopted

3-18     under Subsection (a).  State agencies shall comply with Chapter

3-19     783, Government Code, in regard to contracts, financial reporting,

3-20     allowability of direct and indirect charges to a project, and

3-21     auditing.

3-22           (c)  The office of the comptroller of public accounts shall

3-23     be the cognizant agency for review and approval of a commission's

3-24     indirect cost allocation plan.

3-25           (d)  Rules issued by the governor shall include requirements

 4-1     that the governing body of a commission report to the governor

 4-2     annually on its operation and oversight of the commission, receipt

 4-3     and expenditures of funds, calculation of direct and indirect

 4-4     expenses, acquisition and disposal of assets, compensation policies

 4-5     and studies, audits, and the performance of the commission,

 4-6     including achievement of local objectives and contributions to the

 4-7     performance measures of any state agency from which the commission

 4-8     receives funds.

 4-9           (e)  Annually, each commission shall provide to the governor

4-10     a copy of an audit of its accounts conducted by a qualified

4-11     independent auditor and such other reports as shall be required by

4-12     the governor to assure compliance with requirements of this

4-13     chapter.  If the governor determines that there is a question about

4-14     the appropriateness of an expenditure or other action of a

4-15     commission, the governor shall report the expenditure to the state

4-16     auditor for review.

4-17           (f)  Annually, at least 60 days before the commencement of

4-18     its independent audit, a commission shall give each state agency

4-19     that provides funds to the commission a written notice of its

4-20     planned audit along with an opportunity to specify audit objectives

4-21     of the agency to be addressed in the independent audit.

4-22           (g)  State agencies shall review a commission's most recent

4-23     independent audit before initiating a field audit of the commission

4-24     and, through the office of the governor, coordinate their audits,

4-25     including requests for information, timing of audits, and the

 5-1     number of auditors on site at any given time.

 5-2           (h)  A commission also shall send to the state auditor, the

 5-3     comptroller, and the Legislative Budget Board a copy of a report or

 5-4     an audit required under this chapter.

 5-5           SECTION 5.  Section 391.011, Local Government Code, is

 5-6     amended by adding Subsections (e), (f), and (g) to read as follows:

 5-7           (e)  A commission shall not expend public funds, including

 5-8     funds appropriated by the State of Texas, for any of the following

 5-9     purposes:

5-10                 (1)  travel by a spouse;

5-11                 (2)  personal business expenses;

5-12                 (3)  personal or group entertainment;

5-13                 (4)  alcoholic beverages;

5-14                 (5)  personal services such as dry cleaning or laundry;

5-15                 (6)  any expense that also is being reimbursed from

5-16     another governmental unit or private source;

5-17                 (7)  any expense that was compensated for initially

5-18     through a per diem or a group purchase; or

5-19                 (8)  any air fare other than coach class air fare

5-20     unless coach class air fares are unavailable.

5-21           (f)  A commission shall comply with the same federal and

5-22     state laws and rules regarding the definition of and application of

5-23     indirect costs that apply to other local governmental units and

5-24     state agencies.  The annual independent audit of a commission

5-25     required by this chapter shall include an audit of the basis for,

 6-1     and the allowability of, any indirect charges.

 6-2           (g)  A commission shall comply with the provisions of state

 6-3     and federal law regarding the use of state or federal funds for

 6-4     lobbying or advocacy.

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

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

 6-7     crowded condition of the calendars in both houses create an

 6-8     emergency and an imperative public necessity that the

 6-9     constitutional rule requiring bills to be read on three several

6-10     days in each house be suspended, and this rule is hereby suspended.