76R10456 CAG-D                           
         By Junell                                              H.B. No. 930
         Substitute the following for H.B. No. 930:
         By McCall                                          C.S.H.B. No. 930
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the operation and oversight of a regional planning
 1-3     commission, council of government, or other similar regional
 1-4     planning agency.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 391.009, Local Government Code, is
 1-7     amended to read as follows:
 1-8           Sec. 391.009.  ROLE OF GOVERNOR AND STATE AGENCIES.  (a)  To
 1-9     protect the public interest or promote the efficient use of public
1-10     funds, the [The] governor shall adopt:
1-11                 (1)  rules relating to the operation and oversight of a
1-12     commission;
1-13                 (2)  rules relating to the receipt or  expenditure of
1-14     funds by a commission, including:
1-15                       (A)  restrictions on the expenditure of any
1-16     portion of commission funds for certain classes of expenses; and
1-17                       (B)  restrictions on the maximum amount of or
1-18     percentage of commission funds that may be expended on a class of
1-19     expenses, including indirect costs or travel expenses;
1-20                 (3)  annual reporting requirements for a commission;
1-21                 (4)  annual audit requirements on funds received or
1-22     expended by a commission from any source;
1-23                 (5)  rules relating to the establishment and use of
1-24     standards by which the productivity and performance of each
 2-1     commission can be evaluated; and
 2-2                 (6)  [issue] guidelines that [to] commissions and
 2-3     governmental units shall follow in carrying [to carry] out the
 2-4     provisions of this chapter relating to review and comment
 2-5     procedures.
 2-6           (b)  The governor and state agencies shall provide technical
 2-7     information and assistance to the members and staff of a commission
 2-8     to increase, to the greatest extent feasible, the capability of the
 2-9     commission to discharge its duties and responsibilities prescribed
2-10     by this chapter and to ensure compliance with the rules,
2-11     requirements, and guidelines adopted under Subsection (a).
2-12           SECTION 2.  Chapter 391, Local Government Code, is amended by
2-13     adding Section 391.0095 to read as follows:
2-14           Sec. 391.0095.  AUDIT AND REPORTING REQUIREMENTS.  (a)  The
2-15     audit and reporting requirements under Section 391.009(a) shall
2-16     include a requirement that a commission annually report to the
2-17     governor:
2-18                 (1)  the amount and source of funds received by the
2-19     commission;
2-20                 (2)  the amount and source of funds expended by the
2-21     commission;
2-22                 (3)  an explanation of any method used by the
2-23     commission to compute an expense of the commission, including
2-24     computation of any indirect cost of the commission;
2-25                 (4)  a report of the commission's productivity and
2-26     performance during the annual reporting period;
2-27                 (5)  a projection of the commission's productivity and
 3-1     performance during the next annual reporting period;
 3-2                 (6)  the results of an audit of the commission's
 3-3     affairs prepared by an independent certified public accountant; and
 3-4                 (7)  a report of any assets disposed of by the
 3-5     commission.
 3-6           (b)  The annual audit of a commission may be commissioned by
 3-7     the governor's office or by the commission, as determined by the
 3-8     governor's office, and shall be paid for from the commission's
 3-9     funds.
3-10           (c)  A commission shall submit any other report or an audit
3-11     required by the governor.
3-12           (d)  If a commission fails to submit a report or audit
3-13     required under this section or is determined by the governor to
3-14     have failed to comply with a rule, requirement, or guideline
3-15     adopted under Section 391.009, the governor may, until the failure
3-16     is corrected:
3-17                 (1)  appoint a receiver to operate or oversee the
3-18     commission; or
3-19                 (2)  withhold any appropriated funds of the commission.
3-20           (e)  A commission shall also send to the state auditor, the
3-21     comptroller, and the Legislative Budget Board a copy of a report or
3-22     an audit required under this section or under Section 391.009.  If
3-23     the governor determines that there is a question about the
3-24     appropriateness of an expenditure or other action of a commission,
3-25     the governor shall report the  expenditure or other action to the
3-26     state auditor for review.
3-27           SECTION 3.  Section 391.011(d), Local Government Code, is
 4-1     amended to read as follows:
 4-2           (d)  A commission may not expend funds for an automobile
 4-3     allowance for a member of the governing body of the commission if
 4-4     the member holds another state, county, or municipal office.
 4-5     [Funds may be expended for reimbursement of actual travel expenses,
 4-6     including mileage for automobile travel, incurred while the member
 4-7     is engaged  in the official business of the commission.]
 4-8           SECTION 4.  Chapter 391, Local Government Code, is amended by
 4-9     adding Sections 391.0115-391.0117 to read as follows:
4-10           Sec. 391.0115.  RESTRICTIONS ON COMMISSION COSTS.  (a)  In
4-11     reimbursing commission personnel for travel expenses, a commission
4-12     may not expend funds for travel in excess of the amount of money
4-13     that may be  expended for state personnel under the General
4-14     Appropriations Act or travel regulations adopted by the
4-15     comptroller, including any restrictions on mileage reimbursement,
4-16     per diem, and lodging reimbursement rates.
4-17           (b)  A commission may not expend any funds for the purchase
4-18     of alcoholic beverages or entertainment.
4-19           (c)  A commission may purchase goods or a service only if the
4-20     commission complies with the same provisions for purchasing goods
4-21     or a service that are equivalent to the provisions, including
4-22     Chapter 252, Local Government Code, applying to a local government.
4-23           (d)  A commission may not spend an amount more than 15
4-24     percent of the commission's total expenditures on the commission's
4-25     indirect costs.  For the purposes of this subsection, the
4-26     commission's capital expenditures and any subcontracts,
4-27     pass-throughs, or subgrants may not be considered in determining
 5-1     the commission's total direct costs.  In this subsection,
 5-2     "pass-through funds" means funds, including subgrants or
 5-3     subcontracts, that are received by a commission from the federal or
 5-4     state government or other grantor for which the commission serves
 5-5     merely as a cash conduit and has no administrative or financial
 5-6     involvement in the program, such as contractor selection, contract
 5-7     provisions, contract methodology payment, or contractor oversight
 5-8     and monitoring.
 5-9           (e)  In this section, "indirect costs" means costs that are
5-10     not directly attributable to a single action of a commission.  The
5-11     governor shall use the federal Office of Management and Budget
5-12     circulars A-87 and A-122 or use any rules relating to the
5-13     determination of indirect costs adopted under Chapter 783,
5-14     Government Code, in administering this section.
5-15           Sec. 391.0116.  RESTRICTIONS ON EMPLOYMENT.  (a)  An employee
5-16     of a commission is subject to the same rules regarding lobbying and
5-17     other advocacy activities as an employee of any state agency.
5-18           (b)  The nepotism provisions of Chapter 573, Government Code,
5-19     apply to a commission.
5-20           Sec. 391.0117.  SALARY SCHEDULES.  (a)  For each fiscal year,
5-21     a commission shall adopt a salary schedule containing a
5-22     classification salary schedule for classified positions and
5-23     identifying and specifying the salaries for positions exempt from
5-24     the classification salary schedule.
5-25           (b)  The salary schedule adopted by the commission may not
5-26     exceed, for classified positions, the state salary schedule for
5-27     classified positions as prescribed by the General Appropriations
 6-1     Act adopted by the most recent legislature.  A commission may adopt
 6-2     a salary schedule that is less than the state salary schedule.
 6-3           (c)  A salary for a position classified under the salary
 6-4     schedule may not exceed the state salary that has been approved by
 6-5     the state auditor's office and paid by the state for comparable
 6-6     work.
 6-7           (d)  A position may only be exempted from the classification
 6-8     salary schedule adopted by the commission if the exemption and the
 6-9     amount of salary paid for the exempt position is within the range
6-10     determined appropriate for state exempt positions by the state
6-11     auditor.
6-12           (e)  A commission shall submit to the governor the
6-13     commission's salary schedule, including the salaries of all exempt
6-14     positions, not later than the 45th day before the date of the
6-15     beginning of the commission's fiscal year.  If the governor objects
6-16     to a commission's salary schedule or a portion of the schedule, the
6-17     portion of the schedule that the governor objects to may not go
6-18     into effect until revisions or explanations are given that are
6-19     satisfactory to the governor and the governor approves that portion
6-20     of the schedule.
6-21           (f)  This section does not apply to a commission if the most
6-22     populous county that is a member of the commission has an actual
6-23     average weekly wage that exceeds the state actual average weekly
6-24     wage by 20 percent or more for the previous year as determined by
6-25     the Texas Workforce Commission in its County Employment and Wage
6-26     Information Report.
6-27           SECTION 5.  This Act takes effect September 1, 1999.
 7-1           SECTION 6.  (a)  The governor shall adopt rules,
 7-2     requirements, and guidelines required by Sections 391.009 and
 7-3     391.0095, Local Government Code, as amended or added by this Act,
 7-4     not later than January 1, 2000.
 7-5           (b)  An entity required to file an audit or a  report under
 7-6     Section 391.009 or Section 391.0095, Local Government Code, as
 7-7     amended or added by this Act, shall file the initial audit or
 7-8     report not later than September 1, 2000.
 7-9           SECTION 7.  The importance of this legislation and the
7-10     crowded condition of the calendars in both houses create an
7-11     emergency and an imperative public necessity that the
7-12     constitutional rule requiring bills to be read on three several
7-13     days in each house be suspended, and this rule is hereby suspended.