1-1     By:  Haywood, et al.                                   S.B. No. 549
 1-2           (In the Senate - Filed February 16, 1999; February 17, 1999,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; March 31, 1999, reported favorably by the following
 1-5     vote:  Yeas 5, Nays 0; March 31, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the oversight and operations of regional planning
 1-9     commissions and councils of governments.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subdivision (1), Section 391.002, Local
1-12     Government Code, is amended to read as follows:
1-13                 (1)  "Local governmental [Governmental] unit" means a
1-14     county, municipality, authority, district, or other political
1-15     subdivision of the state and includes a regional planning
1-16     commission or council of governments formed by counties and
1-17     municipalities under the provisions of this chapter.
1-18           SECTION 2.  Subsections (a) and (b), Section 391.005, Local
1-19     Government Code, are amended to read as follows:
1-20           (a)  A commission may contract with a participating
1-21     governmental unit to perform a service if:
1-22                 (1)  the participating governmental unit could contract
1-23     with another governmental unit, the state, or a private
1-24     organization without governmental powers to perform the service;
1-25     and
1-26                 (2)  the contract to perform the service does not
1-27     impose a cost or obligation on a participating governmental unit
1-28     not a party to the contract.
1-29           (b)  A commission may:
1-30                 (1)  purchase, lease, or otherwise acquire property;
1-31                 (2)  hold or sell or otherwise dispose of property;
1-32                 (3)  employ staff and consult with and retain experts;
1-33     or
1-34                 (4)(A)  provide retirement benefits for its employees
1-35     through a jointly contributory retirement plan with an agency,
1-36     firm, or corporation authorized to do business in the state; or
1-37                       (B)  participate in the Texas Municipal
1-38     Retirement System[, the Employees Retirement System of Texas,] or
1-39     the Texas County and District Retirement System when those systems
1-40     by legislation or administrative arrangement permit participation.
1-41           SECTION 3.  Section 391.006, Local Government Code, is
1-42     amended by adding Subsections (c), (d), and (e) to read as follows:
1-43           (c)  The governing body of each commission shall establish
1-44     salary schedules for all employees, benefits available to
1-45     employees, travel approval and reimbursement policies, and
1-46     procurement policies and procedures.  Salary schedules shall not be
1-47     changed without a compensation study of market salaries and
1-48     benefits, and any changes to the salary schedules shall be
1-49     consistent with the findings of the study.
1-50           (d)  The governing body of each commission shall arrange
1-51     annually for at least eight hours of training for its members.
1-52     Training topics shall include the personnel, procurement, and
1-53     travel policies of the commission; the duties of governing body
1-54     members; compliance with open meeting, open records,
1-55     conflict-of-interest, and nepotism laws applicable to the
1-56     commission; and the finances and work program of the commission,
1-57     including audits and contractual responsibilities to state and
1-58     federal agencies.  Training on the required topics may be provided
1-59     as a part of other required training for county or municipal
1-60     officials.
1-61           (e)  The nepotism provisions of Chapter 573, Government Code,
1-62     apply to a commission.
1-63           SECTION 4.  Section 391.009, Local Government Code, is
1-64     amended to read as follows:
 2-1           Sec. 391.009.  Role of Governor and State Agencies.  (a)  The
 2-2     governor may [shall] issue rules for [guidelines to] commissions
 2-3     and governmental units to carry out the provisions of this chapter,
 2-4     including but not limited [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.
2-11           (c)   The governing body of a commission shall report to the
2-12     governor annually on its operation and oversight of the commission,
2-13     the receipt and expenditures of funds, the calculation of direct
2-14     and indirect expenses, the acquisition and disposal of assets,
2-15     compensation policies and studies, audits, and the performance of
2-16     the commission, including achievement of local objectives and
2-17     contributions to the performance measures of any state agency from
2-18     which the commission receives funds.
2-19           (d)  Annually, each commission shall provide to the governor
2-20     a copy of an audit of its accounts conducted by a qualified
2-21     independent auditor and such other reports as shall be required by
2-22     the governor to assure compliance with requirements of this
2-23     chapter.  If the governor determines that there is a question about
2-24     the appropriateness of an expenditure or other action of a
2-25     commission, the governor shall report the expenditure to the state
2-26     auditor for review.
2-27           (e)  Annually, at least 30 days before the commencement of
2-28     its independent audit, a commission shall give each state agency
2-29     that provides funds to the commission a written notice of its
2-30     planned audit along with an opportunity to specify audit objectives
2-31     of the agency to be addressed in the independent audit.
2-32           (f)  State agencies shall review a commission's most recent
2-33     independent audit before initiating a field audit of the commission
2-34     and shall coordinate their audits, including requests for
2-35     information, the timing of audits, and the number of auditors on
2-36     site at any given time.
2-37           (g)  A commission shall also send to the state auditor, the
2-38     comptroller, and the Legislative Budget Board a copy of a report or
2-39     an audit required under this chapter.
2-40           SECTION 5.  Section 391.011, Local Government Code, is
2-41     amended by adding Subsections (e) and (f) to read as follows:
2-42           (e)  A commission shall not expend public funds, including
2-43     funds appropriated by the state, for any of the following purposes:
2-44                 (1)  travel by a spouse;
2-45                 (2)  personal business expenses;
2-46                 (3)  personal entertainment;
2-47                 (4)  alcoholic beverages;
2-48                 (5)  personal services such as dry cleaning or laundry;
2-49                 (6)  any expense that is also being reimbursed by
2-50     another governmental unit or private source;
2-51                 (7)  any expense for which compensation was initially
2-52     made through a per diem or a group purchase; or
2-53                 (8)  any airfare other than coach class airfare, unless
2-54     coach class airfares are unavailable.
2-55           (f)  A commission shall comply with the provisions of state
2-56     and federal law regarding the use of state or federal funds for
2-57     lobbying or advocacy.
2-58           SECTION 6.  This Act takes effect September 1, 1999.
2-59           SECTION 7.  The importance of this legislation and the
2-60     crowded condition of the calendars in both houses create an
2-61     emergency and an imperative public necessity that the
2-62     constitutional rule requiring bills to be read on three several
2-63     days in each house be suspended, and this rule is hereby suspended.
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