HBA-SEP H.B. 1409 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1409
By: Junell
State Affairs
2/21/2001
Introduced



BACKGROUND AND PURPOSE 

A regional planning commission, a council of governments, and a regional
planning agency (commission) are voluntary associations of local
governments that address the problems and planning needs that cross the
boundaries of individual local governments or that require regional
attention.  Commissions currently provide technical assistance to
governmental units, including assistance with the Community Development
Block Grant Program (program), by conducting planning and needs assessment
prior to submitting a grant application, administering grants awarded, and
providing grant writing for which the commission may charge a fee of a
certain percentage of the awarded grant.  However, the commissions are
statutorily required to provide review for some federal or state funded
grant applications submitted by governmental units or to advise a
governmental unit for a proposed project that is seeking federal or sate
funds.  There are concerns that it may be a conflict of interest for a
commission to provide both technical assistance and administer a grant for
a particular applicant.  House Bill 1409 prohibits a commission from
contracting with a participating governmental unit if the contract to
perform the service is for the administration of federal funds and from
collecting a fee for administering program funds allocated to eligible
counties and municipalities.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1409 amends the Local Government Code to prohibit a regional
planning commission, council of governments, or a similar regional planing
agency (commission) from contracting with a participating governmental unit
if the contract to perform the service is for the administration of federal
funds, including community development block grant funds (funds), awarded
through a competition between two or more of the commission's participating
governmental units. 

The bill also amends the Government Code to prohibit a commission from
collecting a fee for administering program funds allocated to eligible
counties and municipalities. 

EFFECTIVE DATE

September 1, 2001.