1-1                                   AN ACT
 1-2     relating to the ability of an employee of a public housing
 1-3     authority to participate in certain contracts or agreements for
 1-4     housing assistance.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 392.043, Local Government Code, is
 1-7     amended by amending Subsection (a) and by adding Subsections (f)
 1-8     and (g) to read as follows:
 1-9           (a)  Except as provided by Subsection (b), [or] (c), or (f),
1-10     an employee of an authority may not have dealings with a housing
1-11     project  for pecuniary gain and may not own, acquire, or control a
1-12     direct or indirect interest in a:
1-13                 (1)  housing project;
1-14                 (2)  property included or planned to be included in a
1-15     housing project;
1-16                 (3)  contract or proposed contract for the sale of land
1-17     to be used for a housing project;
1-18                 (4)  contract or proposed contract for the construction
1-19     of a housing project; or
1-20                 (5)  contract or proposed contract for the sale of
1-21     materials or services to be furnished or used in connection with a
1-22     housing project.
1-23           (f)  An employee of an authority may be a party to or
1-24     otherwise participate in a contract or agreement for assistance
 2-1     under a housing program, including a contract or agreement for
 2-2     public housing, Section 8 housing assistance, low-interest home
 2-3     loans, lease-purchase assistance, or down payment assistance, to
 2-4     the same extent as a member of the public if the employee qualifies
 2-5     for assistance under the program.
 2-6           (g)  In this section, "Section 8 housing assistance" means
 2-7     housing assistance provided under Section 8, United States Housing
 2-8     Act of 1937 (42 U.S.C. Section 1437f).
 2-9           SECTION 2.  Conduct described by Section 392.043(f), Local
2-10     Government Code, as added by this Act, that constituted an offense
2-11     under Section 392.043, Local Government Code, before the effective
2-12     date of this Act may not be prosecuted after the effective date of
2-13     this Act.  If on the effective date of this Act a criminal action
2-14     is pending for conduct described by Subsection (f) that constituted
2-15     an offense under Section 392.043, the action is dismissed on that
2-16     date.  However, a final conviction for conduct described by
2-17     Subsection (f) that constituted an offense under Section 392.043
2-18     that exists on the effective date of this Act is unaffected by this
2-19     Act.
2-20           SECTION 3.  The importance of this legislation and the
2-21     crowded condition of the calendars in both houses create an
2-22     emergency and an imperative public necessity that the
2-23     constitutional rule requiring bills to be read on three several
2-24     days in each house be suspended, and this rule is hereby suspended,
2-25     and that this Act take effect and be in force from and after its
2-26     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3790 was passed by the House on April
         16, 1999, by the following vote:  Yeas 136, Nays 0, 2 present, not
         voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3790 was passed by the Senate on May
         10, 1999, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor