SRC-AXB H.B. 2557 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2557
76R12946  JRD-DBy: Glaze (Ratliff)
State Affairs
5/13/1999
Engrossed


DIGEST 

Currently, there is concern regarding the accountability of private,
nonprofit corporations who receive grant money from the state or the
federal government and distribute these funds to local service agencies
under contract. While these organizations are subject to the Texas Open
Records Act, they are not subject to the Texas Open Meetings Act. In this
situation, decisions can be made without the knowledge of, or an
opportunity for input by, various interested parties. H.B. 2557 subjects a
nonprofit organization that receives funds under the federal community
services block grant and that is authorized to serve a geographic area of
the state to the Texas Open Meetings Act, requiring it to make its board
meetings and financial records open to the public. 

PURPOSE

As proposed, H.B. 2557 subjects a nonprofit organization that receives
funds under the federal community services block grant and that is
authorized to serve a geographic area of the state to the Texas Open
Meetings Act, requiring it to make its board meetings and financial records
open to the public. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 551.001(3), Government Code, to
redefine"governmental body" as a nonprofit corporation organized under
Chapter 67 (Nonprofit Water Supply or Sewer Service Corporations), Water
Code, rather than Chapter 76, Acts of the 43rd Legislature, 1st Called
Session, 1933 (Article 1434a, V.T.C.S.). Includes in the definition of a
"governmental body" a nonprofit corporation that is eligible to receive
funds under the federal community services block grant program and that is
authorized by this state to serve a geographic area of the state.  

SECTION 2. Amends Section 552.003(1), Government Code, to include in the
definition of "governmental body" a nonprofit corporation that is eligible
to receive funds under the federal community services block grant program
and that is authorized by this state to serve a geographic area of the
state. Makes a conforming change.  

SECTION 3. Effective date: September 1, 1999.  Makes application of the
change in law to Section 551.001, Government Code, made by this Act
prospective to a deliberation of the governing body of a nonprofit
corporation that is eligible to receive funds under the federal community
services block grant program and that is authorized by this state to serve
a geographic area of the state that begins on or after September 4, 1999.
Makes the change in law to Section 552.003, Government Code, made by this
Act applicable regardless of when the information was collected or
assembled.  

SECTION 4. Emergency clause.