HBA-CBW C.S.H.B. 7 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 7
By: Chisum
Land & Resource Management
3/23/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Promoting economic development and ensuring the general welfare of rural
communities in Texas is a continuing challenge for Texas state government.
Social and economic forces in rural Texas have led to post offices and
hospitals being closed or consolidated; home-owned cafes, department
stores, and banks being replaced by national chains; smaller and smaller
graduating classes; downtowns being bypassed by highway loops; and empty
storefronts on main street.  It is clear that rural Texas is in a state of
transition. The future of rural communities lies in how well rural Texas
communities adjust to the changes. 

Recognizing that government is an economic pillar in rural areas, Speaker
James E. "Pete" Laney appointed the House Select Committee on Rural
Development whose mission it was to search for ways state, local, and
federal governments can improve the quality of life in rural Texas.  A
major issue identified by the select committee is that there is no focus
point at state or federal levels for rural policy formulation or
implementation, which results in fragmented policies spread among a myriad
of governmental agencies.  All levels of government have a hand in
developing and implementing rural policy and cooperation and coordination
are essential to maximizing the effectiveness of policy programs. 

C.S.H.B.  7 creates the Office of Rural Community Affairs as a stand-alone
executive branch agency to assure a continuing focus on rural issues,
monitor governmental actions affecting rural Texas, research problems and
recommended solutions, and to coordinate rural programs among state
agencies.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the executive committee of the Office
of Rural Community Affairs in SECTION 1 (Sections 487.052, 487.104,
487.109, 487.112, 487.159, 487.163, 487.204, 487.252, and 487.253,
Government Code) and to the Office of Rural Community Affairs in SECTION 1
(Sections 487.302 and 487.304, Government Code) and in SECTION 9 (Section
204.104, Occupations Code) of this bill. 

ANALYSIS

C.S.H.B.  7 amends the Government Code to create the Office of Rural
Community Affairs (office) and sets forth provisions and procedures to
establish the role of the office.  The bill provides that the office is
abolished on September 1, 2007, unless continued pursuant to the Texas
Sunset Act (Sec. 487.002). The bill establishes the executive committee of
the office (committee) as the governing body of the office and provides
that the committee is composed of three members appointed by the governor,
three members appointed by the lieutenant governor, and three members
appointed by the speaker of the house of representatives.  The bill sets
forth provisions regarding the appointment of committee members, terms of
the committee members, and the election of a presiding officer of the
committee (Sec. 487.021).   

The bill sets forth standard provisions regarding conflicts of interest,
committee member training, committee member removal, policy implementation
by the committee,  public testimony, the implementation of an equal
employment opportunity policy, standards of conduct, and the maintaining of
written complaints.  The bill authorizes the committee to hire an executive
director (director) to serve as the chief executive officer of  the office
and perform the administrative duties of the office (Secs. 487.022 -
487.030).  The bill provides for the initial appointment of committee
members, the employment of a director, and selection of a presiding officer
(SECTION 11). 

The bill requires the office to develop a rural policy, work with other
state agencies and officials, develop programs to improve the leadership of
rural community leaders, monitor developments relating to rural Texas
communities, administer the federal community development block grant
nonentitlement program, administer programs supporting rural health care,
and perform research (Sec. 487.051).  The bill authorizes the committee to
adopt rules as necessary to implement these provisions (Sec. 487.052).  The
bill authorizes the office to accept gifts, grants, and donations and sets
forth standards by which these gifts and grants may be accepted (Sec.
487.053).  

The bill requires the committee to call an annual meeting to discuss rural
issues and requires the following agency heads to meet: 

 _the commissioner of agriculture; 
 
 _the executive director of the Public Utility Commission of Texas; 
 
 _the director of the Texas Agricultural Extension; 
 
 _the presiding officer of the Telecommunications Infrastructure Fund
Board;  

 _the executive director of the Texas Department of Housing and Community
Affairs;  

 _the commissioner of health; 

 _the executive administrator of the Texas Water Development Board; 

 _the executive director of the Parks and Wildlife Department; 

 _the commissioner of human services;

 _the commissioner of higher education; 

 _the comptroller of public accounts; and 

 _the executive director of the Texas Department of Transportation (Sec.
487.054).   
 
The bill authorizes the committee to appoint advisory committees to assist
the committee in performing its duties and sets forth provisions regarding
the advisory committees (Sec. 487.055). The bill requires the office to
submit a report to the legislature not later than January 1 of each
odd-numbered year that includes the activities of the office (Sec.
487.056).  The bill requires the office to develop, implement, and update a
rural health work plan and sets forth provisions relating to the plan (Sec.
487.057). The office is required to enter into an interagency contract with
another state agency to provide routine administrative services for the
office (Sec. 487.058). 

C.S.H.B. 7 transfers the administration of the federal community
development block grant nonentitlement program and the community affairs
and community development program from the Texas Department of Housing and
Community Affairs and the Texas Department of Economic Development to the
office and provides that the community development block grant funds shall
be allocated to eligible counties and municipalities under office rules
(Secs. 487.351-487.353, and SECTIONS 13 and 14).  The bill authorizes the
office to enter an interagency agreement with, and monitor the activities
of, the Department of Agriculture (department) to reimburse the department
for providing services relating to federal community development block
grant funds on behalf of the office.  The bill requires the office to
allocate not more than  20 percent of the federal funds received by the
office to the department to be used for economic development activities
(Sec. 487.352). 

The bill also transfers from the Center for Rural Health Initiatives to the
office the following: 

 _outstanding rural scholar recognition and loan program;
 
 _ health careers promotion and education program;
 
 _ medically underserved community-state matching incentive program;
 
 _ Texas health service corps program; and 
 
 _ program for rural health facility capital improvement from the authority
of the center to the authority of the office (Secs. 487.104-487.112,
487.151-487.163, 487.201-487.204, 487.251-487.256, and 487.301-487.304). 

C.S.H.B. 7 repeals provisions regarding the Center for Rural Health
Initiatives (center) and certain duties of the Texas Department of Housing
and Community Affairs, abolishes the center, and transfers all powers and
duties, including rulemaking authority, from the center to the office
(SECTIONS 10,12, and 13).   The bill updates references to the center in
the Occupations, Health and Safety, and Education codes to reflect the
change (Secs. 38.011, 51.918, 58.007, Education Code; Sec. 86.011, Health
and Safety Code; and 204.104, Occupations Code). 

EFFECTIVE DATE

September 1, 2001.  Provisions relating to training for members of the
executive committee of the Office of Rural Community Affairs take effect
September 1, 2002. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 7 modifies the original bill by requiring specified agency heads
to meet at least once each year to discuss rural issues,  rather than
creating an advisory committee consisting of such agency heads. The
substitute also adds the comptroller of public accounts and the executive
director of the Texas Department of Transportation to the list of agency
heads for the annual meeting. The substitute removes the ability of agency
heads to designate a representative to head such a meeting (Sec 487.054).
The substitute authorizes the executive committee of the Office of Rural
Community Affairs (executive committee) to appoint advisory committees to
perform certain duties and sets forth provisions regarding the advisory
committees (Sec. 487.055).  The substitute requires the  Office of Rural
Community Affairs (office)  to enter into an interagency contract with
another state agency to provide routine administrative services for the
office (Sec. 487.058). The substitute repeals provisions regarding certain
duties of the Texas Department of Housing and Community Affairs  (TDHCA)
(SECTION 11).  The substitute provides that a community must be willing to
forgive repayment of a scholar's loan for the executive committee to be
authorized to provide for loan forgiveness for a scholar who practices in
another rural community under the outstanding rural scholar recognition and
loan program (487.109). 

C.S.H.B. 7 modifies the original by providing that the community affairs
and community development program, including appropriations, is transferred
from TDHCA to the office (SECTION 14). 

C.S.H.B. 7 authorizes the executive director of the office to change the
duties of any employee transferred to the office (SECTION 15). The
substitute requires the Legislative Budget Board to resolve any disputes
relating to the transfer of duties to the office (SECTION 16). 

C.S.H.B. 7 provides that the office is subject to the Texas Sunset Act
(Sec. 487.002).