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


Office of House Bill AnalysisH.B. 2557
By: Glaze
State Affairs
3/30/1999
Introduced



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.  H.B. 2557 subjects
any organization that receives public funds from 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" 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. 

SECTION 2.  Amends Section 552.003(1), Government Code, to include in the
definition of "governmental body" an entity, or the part, section, or
portion of an entity, that is a party to a contract with this state under
which the entity, or that part, section, or portion of that entity,
receives public funds or that is a recipient of a grant of money from this
state that is conditioned on the performance of a function or service.
Makes a conforming change. 

SECTION 3.  Effective date: September 1, 1999.
Makes application of SECTION 1 of this Act prospective to a deliberation of
the governing body of an entity that is a party to a contract with or the
recipient of a grant from this state that begins on or after September 4,
1999. 
Makes SECTION 2 of this Act applicable regardless of when the information
was collected or assembled. 

SECTION 4.  Emergency clause.