HBA-TYH C.S.H.B. 2557 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2557
By: Glaze
State Affairs
5/5/1999
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

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.  C.S.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

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

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 application of 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original bill by removing all reference to "the
governing body of an entity that is a party to a contract with this state
under which the entity receives public funds or is a recipient of a grant
of money from this state that is conditioned on the entity's performance of
a function or services, and engages or proposes to engage in a deliberation
relating to the enumerated topics," and replacing it with "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."