AN ACT
 1-1     relating to the employment and supervision of the executive
 1-2     director of the Texas Department of Housing and Community Affairs.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 2306.036, Government Code, is amended to
 1-5     read as follows:
 1-6           Sec. 2306.036.  EMPLOYMENT OF DIRECTOR[: APPOINTMENT; TERM].
 1-7     (a)  With the approval of the governor, the board [The governor]
 1-8     shall employ a [appoint the] director to serve [with the advice and
 1-9     consent of the senate.  The director serves] at the pleasure of the
1-10     board [governor during the governor's terms of office].
1-11           (b)  After the election of a governor who did not approve the
1-12     director's employment under Subsection (a), that governor may
1-13     remove the director and require the board to employ a new director
1-14     in accordance with Subsection (a).  The governor must act under
1-15     this subsection before the 90th day after the date the governor
1-16     takes office.
1-17           SECTION 2.  Section 2306.037, Government Code, is amended to
1-18     read as follows:
1-19           Sec. 2306.037.  DIRECTOR'S COMPENSATION.  The board
1-20     [governor] shall set the salary of the director.
1-21           SECTION 3.  Section 2306.038, Government Code, is amended to
1-22     read as follows:
1-23           Sec. 2306.038.  ACTING DIRECTOR.  The board [governor] shall
1-24     establish a procedure for designating an acting director and shall,
 2-1     with the approval of the governor, immediately designate an acting
 2-2     director or a new permanent director if the position becomes vacant
 2-3     because of absence or disability.  A director designated under this
 2-4     section serves at the pleasure of the board but is subject to
 2-5     removal by a newly elected governor in accordance with Section
 2-6     2306.036(b).
 2-7           SECTION 4.  Subsection (b), Section 2306.052, Government
 2-8     Code, is amended to read as follows:
 2-9           (b)  The director shall:
2-10                 (1)  administer and organize the work of the department
2-11     consistent with this chapter and with sound organizational
2-12     management that promotes efficient and effective operation;
2-13                 (2)  appoint and remove personnel employed by the
2-14     department;
2-15                 (3)  submit, through and with the approval of the
2-16     governor, requests for appropriations and other money to operate
2-17     the department;
2-18                 (4)  administer all money entrusted to the department;
2-19                 (5)  administer all money and investments of the
2-20     department subject to:
2-21                       (A)  department indentures and contracts;
2-22                       (B)  Sections 2306.118 through 2306.120; and
2-23                       (C)  an action of the board under Section
2-24     2306.351; and
2-25                 (6)  perform other functions that may be assigned by
2-26     the board or the governor.
 3-1           SECTION 5.  As soon as possible after the effective date of
 3-2     this Act, the governing board of the Texas Department of Housing
 3-3     and Community Affairs shall employ a person to serve as executive
 3-4     director of that department, as authorized by Section 2306.036,
 3-5     Government Code, as amended by this Act.  The person serving as
 3-6     executive director or acting executive director immediately before
 3-7     the effective date of this Act may continue to serve at the
 3-8     pleasure of the governor until the date on which the person
 3-9     employed by the board assumes the duties of executive director.
3-10           SECTION 6.  The importance of this legislation and the
3-11     crowded condition of the calendars in both houses create an
3-12     emergency and an imperative public necessity that the
3-13     constitutional rule requiring bills to be read on three several
3-14     days in each house be suspended, and this rule is hereby suspended,
3-15     and that this Act take effect and be in force from and after its
3-16     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 79 passed the Senate on
         March 11, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendment on May 25, 1999, by the following vote:
         Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 79 passed the House, with
         amendment, on May 22, 1999, by the following vote:  Yeas 144,
         Nays 0, two present not voting.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor