1-1     By:  Haywood, et al.                                  S.B. No. 1055

 1-2           (In the Senate - Filed March 7, 1997; March 12, 1997, read

 1-3     first time and referred to Committee on Intergovernmental

 1-4     Relations; April 4, 1997, reported favorably, as amended, by the

 1-5     following vote:  Yeas 10, Nays 0; April 4, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                             By:  Galloway

 1-7     Amend Introduced Version of Senate Bill 1055 as follows:

 1-8           On page 1, line 54, between "at" and "eight", strike "lease"

 1-9     and insert "least".

1-10                            A BILL TO BE ENTITLED

1-11                                   AN ACT

1-12     relating to the oversight and operations of regional planning

1-13     commissions and councils of governments.

1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-15           SECTION 1.  Section 391.002, Local Government Code, is

1-16     amended by adding Subdivision (4) to read as follows:

1-17                 (4)  "Unit of local government" includes a regional

1-18     planning commission or council of governments formed by counties

1-19     and municipalities under the provisions of this chapter.

1-20           SECTION 2.  Subsections (a) and (b), Section 391.005, Local

1-21     Government Code, are amended to read as follows:

1-22           (a)  A commission may contract with a participating

1-23     governmental unit to perform a service if:

1-24                 (1)  the participating governmental unit could contract

1-25     with another governmental unit, the state, or a private

1-26     organization without governmental powers to perform the service;

1-27     and

1-28                 (2)  the contract to perform the service does not

1-29     impose a cost or obligation on a participating governmental unit

1-30     not a party to the contract.

1-31           (b)  A commission may:

1-32                 (1)  purchase, lease, or otherwise acquire property;

1-33                 (2)  hold or sell or otherwise dispose of property;

1-34                 (3)  employ staff and consult with and retain experts;

1-35     or

1-36                 (4)(A)  provide retirement benefits for its employees

1-37     through a jointly contributory retirement plan with an agency,

1-38     firm, or corporation authorized to do business in the state; or

1-39                       (B)  participate in the Texas Municipal

1-40     Retirement System[, the Employees Retirement System of Texas,] or

1-41     the Texas County and District Retirement System when those systems

1-42     by legislation or administrative arrangement permit participation.

1-43           SECTION 3.  Section 391.006, Local Government Code, is

1-44     amended by adding Subsections (c), (d), and (e) to read as follows:

1-45           (c)  The governing body of each commission shall establish

1-46     salary schedules for all employees, benefits available to

1-47     employees, travel approval and reimbursement policies, and

1-48     procurement policies and procedures.  Salary schedules shall not be

1-49     changed without a compensation study of market salaries and

1-50     benefits and any changes shall be consistent with the findings of

1-51     the study.  Procurement policies shall be equivalent to those

1-52     required of municipalities by Chapter 252.

1-53           (d)  The governing body of each commission shall arrange

1-54     annually for at lease eight hours of training for its members.

1-55     Training topics shall include the personnel, procurement, and

1-56     travel policies of the commission; the duties of governing board

1-57     members; compliance with open meetings, open records,

1-58     conflict-of-interest, and nepotism laws applying to the commission;

1-59     and the finances and work program of the commission, including

1-60     audits and contractual responsibilities to state and federal

1-61     agencies.  Training on the required topics may be provided as a

1-62     part of other required training for county or municipal officials.

1-63           (e)  The nepotism provisions of Chapter 573, Government Code,

1-64     apply to a commission.

 2-1           SECTION 4.  Section 391.009, Local Government Code, is

 2-2     amended to read as follows:

 2-3           Sec. 391.009.  ROLE OF GOVERNOR AND STATE AGENCIES.  (a)  The

 2-4     governor shall issue rules for [guidelines to] commissions and

 2-5     governmental units to carry out the provisions of this chapter,

 2-6     including but not limited [relating] to review and comment

 2-7     procedures.

 2-8           (b)  The governor and state agencies shall provide technical

 2-9     information and assistance to the members and staff of a commission

2-10     to increase, to the greatest extent feasible, the capability of the

2-11     commission to discharge its duties and responsibilities prescribed

2-12     by this chapter and to ensure compliance with the rules adopted

2-13     under Subsection (a).  State agencies shall comply with Chapter

2-14     783, Government Code, in regard to contracts, financial reporting,

2-15     allowability of direct and indirect charges to a project, and

2-16     auditing.

2-17           (c)  The office of the comptroller of public accounts shall

2-18     be the cognizant agency for review and approval of a commission's

2-19     indirect cost allocation plan.

2-20           (d)  Rules issued by the governor shall include requirements

2-21     that the governing body of a commission report to the governor

2-22     annually on its operation and oversight of the commission, receipt

2-23     and expenditures of funds, calculation of direct and indirect

2-24     expenses, acquisition and disposal of assets, compensation policies

2-25     and studies, audits, and the performance of the commission,

2-26     including achievement of local objectives and contributions to the

2-27     performance measures of any state agency from which the commission

2-28     receives funds.

2-29           (e)  Annually, each commission shall provide to the governor

2-30     a copy of an audit of its accounts conducted by a qualified

2-31     independent auditor and such other reports as shall be required by

2-32     the governor to assure compliance with requirements of this

2-33     chapter.  If the governor determines that there is a question about

2-34     the appropriateness of an expenditure or other action of a

2-35     commission, the governor shall report the expenditure to the state

2-36     auditor for review.

2-37           (f)  Annually, at least 60 days before the commencement of

2-38     its independent audit, a commission shall give each state agency

2-39     that provides funds to the commission a written notice of its

2-40     planned audit along with an opportunity to specify audit objectives

2-41     of the agency to be addressed in the independent audit.

2-42           (g)  State agencies shall review a commission's most recent

2-43     independent audit before initiating a field audit of the commission

2-44     and, through the office of the governor, coordinate their audits,

2-45     including requests for information, timing of audits, and the

2-46     number of auditors on site at any given time.

2-47           (h)  A commission also shall send to the state auditor, the

2-48     comptroller, and the Legislative Budget Board a copy of a report or

2-49     an audit required under this chapter.

2-50           SECTION 5.  Section 391.011, Local Government Code, is

2-51     amended by adding Subsections (e), (f), and (g) to read as follows:

2-52           (e)  A commission shall not expend public funds, including

2-53     funds appropriated by the State of Texas, for any of the following

2-54     purposes:

2-55                 (1)  travel by a spouse;

2-56                 (2)  personal business expenses;

2-57                 (3)  personal or group entertainment;

2-58                 (4)  alcoholic beverages;

2-59                 (5)  personal services such as dry cleaning or laundry;

2-60                 (6)  any expense that also is being reimbursed from

2-61     another governmental unit or private source;

2-62                 (7)  any expense that was compensated for initially

2-63     through a per diem or a group purchase; or

2-64                 (8)  any air fare other than coach class air fare

2-65     unless coach class air fares are unavailable.

2-66           (f)  A commission shall comply with the same federal and

2-67     state laws and rules regarding the definition of and application of

2-68     indirect costs that apply to other local governmental units and

2-69     state agencies.  The annual independent audit of a commission

 3-1     required by this chapter shall include an audit of the basis for,

 3-2     and the allowability of, any indirect charges.

 3-3           (g)  A commission shall comply with the provisions of state

 3-4     and federal law regarding the use of state or federal funds for

 3-5     lobbying or advocacy.

 3-6           SECTION 6.  This Act takes effect September 1, 1997.

 3-7           SECTION 7.  The importance of this legislation and the

 3-8     crowded condition of the calendars in both houses create an

 3-9     emergency and an imperative public necessity that the

3-10     constitutional rule requiring bills to be read on three several

3-11     days in each house be suspended, and this rule is hereby suspended.

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