SRC-JEC S.B. 354 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 354
77R4130 DWS-FBy: Lindsay
Intergovernmental Relations
1/29/2001
As Filed


DIGEST AND PURPOSE          

Prior to 1999, local government corporations, as provided by the
Transportation Code, were used primarily for transportation-related
purposes and supervised by the Transportation Commission. However, these
corporations were removed from the supervision of the Transportation
Commission and their authority was broadened to include
non-transportation-related functions with the passage of H.B. 2684 during
the 76th Legislature.  The applicability of state purchasing restrictions
and procedures to local government corporations has been questioned,
causing confusion and controversy.  As proposed, S.B. 354 limits local
government corporations to transportation-related purposes and clarifies
that they are subject to the applicable procurement restrictions and
procedures that apply to the governmental entities that created them. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 431.101(a) and (e), Transportation Code, to
authorize a local government corporation to be created to aid and act on
behalf of one or more local governments to accomplish any purpose under
this chapter.  Deletes language regarding local governments.  Provides that
a local government corporation is subject to all statutes, codes, and other
laws related to the design and construction of projects, including the
procurement of design and construction services, that apply to the local
government that created the corporation.  Deletes text regarding property
and improvements and contracts awarded by a local government corporation. 

SECTION 2.  Effective date:  upon passage or September 1, 2001.