By:  Haywood, et al.                                   S.B. No. 549
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the oversight and operations of regional planning
 1-2     commissions and councils of governments.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subdivision (1), Section 391.002, Local
 1-5     Government Code, is amended to read as follows:
 1-6                 (1)  "Local governmental [Governmental] unit" means a
 1-7     county, municipality, authority, district, or other political
 1-8     subdivision of the state and includes a regional planning
 1-9     commission or council of governments formed by counties and
1-10     municipalities under the provisions of this chapter.
1-11           SECTION 2.  Subsections (a) and (b), Section 391.005, Local
1-12     Government Code, are amended to read as follows:
1-13           (a)  A commission may contract with a participating
1-14     governmental unit to perform a service if:
1-15                 (1)  the participating governmental unit could contract
1-16     with another governmental unit, the state, or a private
1-17     organization without governmental powers to perform the service;
1-18     and
1-19                 (2)  the contract to perform the service does not
1-20     impose a cost or obligation on a participating governmental unit
1-21     not a party to the contract.
1-22           (b)  A commission may:
1-23                 (1)  purchase, lease, or otherwise acquire property;
1-24                 (2)  hold or sell or otherwise dispose of property;
 2-1                 (3)  employ staff and consult with and retain experts;
 2-2     or
 2-3                 (4)(A)  provide retirement benefits for its employees
 2-4     through a jointly contributory retirement plan with an agency,
 2-5     firm, or corporation authorized to do business in the state; or
 2-6                       (B)  participate in the Texas Municipal
 2-7     Retirement System[, the Employees Retirement System of Texas,] or
 2-8     the Texas County and District Retirement System when those systems
 2-9     by legislation or administrative arrangement permit participation.
2-10           SECTION 3.  Section 391.006, Local Government Code, is
2-11     amended by adding Subsections (c), (d), and (e) to read as follows:
2-12           (c)  The governing body of each commission shall establish
2-13     salary schedules for all employees, benefits available to
2-14     employees, travel approval and reimbursement policies, and
2-15     procurement policies and procedures.  Salary schedules shall not be
2-16     changed without a compensation study of market salaries and
2-17     benefits, and any changes to the salary schedules shall be
2-18     consistent with the findings of the study.
2-19           (d)  The governing body of each commission shall arrange
2-20     annually for at least eight hours of training for its members.
2-21     Training topics shall include the personnel, procurement, and
2-22     travel policies of the commission; the duties of governing body
2-23     members; compliance with open meeting, open records,
2-24     conflict-of-interest, and nepotism laws applicable to the
2-25     commission; and the finances and work program of the commission,
2-26     including audits and contractual responsibilities to state and
 3-1     federal agencies.  Training on the required topics may be provided
 3-2     as a part of other required training for county or municipal
 3-3     officials.
 3-4           (e)  The nepotism provisions of Chapter 573, Government Code,
 3-5     apply to a commission.
 3-6           SECTION 4.  Section 391.009, Local Government Code, is
 3-7     amended to read as follows:
 3-8           Sec. 391.009.  Role of Governor and State Agencies.  (a)  The
 3-9     governor may [shall] issue rules for [guidelines to] commissions
3-10     and governmental units to carry out the provisions of this chapter,
3-11     including but not limited [relating] to review and comment
3-12     procedures.
3-13           (b)  The governor and state agencies shall provide technical
3-14     information and assistance to the members and staff of a commission
3-15     to increase, to the greatest extent feasible, the capability of the
3-16     commission to discharge its duties and responsibilities prescribed
3-17     by this chapter.
3-18           (c)  The governing body of a commission shall report to the
3-19     governor annually on its operation and oversight of the commission,
3-20     the receipt and expenditures of funds, the calculation of direct
3-21     and indirect expenses, the acquisition and disposal of assets,
3-22     compensation policies and studies, audits, and the performance of
3-23     the commission, including achievement of local objectives and
3-24     contributions to the performance measures of any state agency from
3-25     which the commission receives funds.
3-26           (d)  Annually, each commission shall provide to the governor
 4-1     a copy of an audit of its accounts conducted by a qualified
 4-2     independent auditor and such other reports as shall be required by
 4-3     the governor to assure compliance with requirements of this
 4-4     chapter.  If the governor determines that there is a question about
 4-5     the appropriateness of an expenditure or other action of a
 4-6     commission, the governor shall report the expenditure to the state
 4-7     auditor for review.
 4-8           (e)  Annually, at least 30 days before the commencement of
 4-9     its independent audit, a commission shall give each state agency
4-10     that provides funds to the commission a written notice of its
4-11     planned audit along with an opportunity to specify audit objectives
4-12     of the agency to be addressed in the independent audit.
4-13           (f)  State agencies shall review a commission's most recent
4-14     independent audit before initiating a field audit of the commission
4-15     and shall coordinate their audits, including requests for
4-16     information, the timing of audits, and the number of auditors on
4-17     site at any given time.
4-18           (g)  A commission shall also send to the state auditor, the
4-19     comptroller, and the Legislative Budget Board a copy of a report or
4-20     an audit required under this chapter.
4-21           SECTION 5.  Section 391.011, Local Government Code, is
4-22     amended by adding Subsections (e) and (f) to read as follows:
4-23           (e)  A commission shall not expend public funds, including
4-24     funds appropriated by the state, for any of the following purposes:
4-25                 (1)  travel by a spouse;
4-26                 (2)  personal business expenses;
 5-1                 (3)  personal entertainment;
 5-2                 (4)  alcoholic beverages;
 5-3                 (5)  personal services such as dry cleaning or laundry;
 5-4                 (6)  any expense that is also being reimbursed by
 5-5     another governmental unit or private source;
 5-6                 (7)  any expense for which compensation was initially
 5-7     made through a per diem or a group purchase; or
 5-8                 (8)  any airfare other than coach class airfare, unless
 5-9     coach class airfares are unavailable.
5-10           (f)  A commission shall comply with the provisions of state
5-11     and federal law regarding the use of state or federal funds for
5-12     lobbying or advocacy.
5-13           SECTION 6.  This Act takes effect September 1, 1999.
5-14           SECTION 7.  The importance of this legislation and the
5-15     crowded condition of the calendars in both houses create an
5-16     emergency and an imperative public necessity that the
5-17     constitutional rule requiring bills to be read on three several
5-18     days in each house be suspended, and this rule is hereby suspended.