1-1                                   AN ACT
 1-2     relating to the application of certain laws to local workforce
 1-3     development boards and to the application of certain conflict of
 1-4     interest requirements to the members of those boards.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 551.001(3), Government Code, is amended to
 1-7     read as follows:
 1-8                 (3)  "Governmental body" means:
 1-9                       (A)  a board, commission, department, committee,
1-10     or agency within the executive or legislative branch of state
1-11     government that is directed by one or more elected or appointed
1-12     members;
1-13                       (B)  a county commissioners court in the state;
1-14                       (C)  a municipal governing body in the state;
1-15                       (D)  a deliberative body that has rulemaking or
1-16     quasi-judicial power and that is classified as a department,
1-17     agency, or political subdivision of a county or municipality;
1-18                       (E)  a school district board of trustees;
1-19                       (F)  a county board of school trustees;
1-20                       (G)  a county board of education;
1-21                       (H)  the governing board of a special district
1-22     created by law; [and]
1-23                       (I)  a local workforce development board created
1-24     under Section 2308.253; and
 2-1                       (J)  a nonprofit corporation organized under
 2-2     Chapter 67, Water Code, that provides a water supply or wastewater
 2-3     service, or both, and is exempt from ad valorem taxation under
 2-4     Section 11.30, Tax Code.
 2-5           SECTION 2. Section 552.003(1), Government Code, is amended to
 2-6     read as follows:
 2-7                 (1)  "Governmental body":
 2-8                       (A)  means:
 2-9                             (i)  a board, commission, department,
2-10     committee, institution, agency, or office that is within or is
2-11     created by the executive or legislative branch of state government
2-12     and that is directed by one or more elected or appointed members;
2-13                             (ii)  a county commissioners court in the
2-14     state;
2-15                             (iii)  a municipal governing body in the
2-16     state;
2-17                             (iv)  a deliberative body that has
2-18     rulemaking or quasi-judicial power and that is classified as a
2-19     department, agency, or political subdivision of a county or
2-20     municipality;
2-21                             (v)  a school district board of trustees;
2-22                             (vi)  a county board of school trustees;
2-23                             (vii)  a county board of education;
2-24                             (viii)  the governing board of a special
2-25     district;
2-26                             (ix)  a local workforce development board
2-27     created under Section 2308.253;
 3-1                             (x) [(ix)]  the governing body of a
 3-2     nonprofit corporation organized under Chapter 67, Water Code, that
 3-3     provides a water supply or wastewater service, or both, and is
 3-4     exempt from ad valorem taxation under Section 11.30, Tax Code; and
 3-5                             (xi) [(x)]  the part, section, or portion
 3-6     of an organization, corporation, commission, committee,
 3-7     institution, or agency that spends or that is supported in whole or
 3-8     in part by public funds; and
 3-9                       (B)  does not include the judiciary.
3-10           SECTION 3. Section 771.002(1), Government Code, is amended to
3-11     read as follows:
3-12                 (1)  "Agency" includes:
3-13                       (A)  a department, board, bureau, commission,
3-14     court, office, authority, council, or institution;
3-15                       (B)  a university, college, or any service or
3-16     part of a state institution of higher education;  [and]
3-17                       (C)  a local workforce development board created
3-18     under Section 2308.253; and
3-19                       (D)  any statewide job or employment training
3-20     program for disadvantaged youth that is substantially financed by
3-21     federal funds and that was created by executive order not later
3-22     than December 30, 1986.
3-23           SECTION 4. Section 271.081, Local Government Code, is amended
3-24     to read as follows:
3-25           Sec. 271.081.  DEFINITION.  In this subchapter, "local
3-26     government" means a county, municipality, special district, school
3-27     district, junior college district, a local workforce development
 4-1     board created under Section 2308.253, Government Code, or other
 4-2     legally constituted political subdivision of the state.
 4-3           SECTION 5. Section 2175.001(1), Government Code, is amended
 4-4     to read as follows:
 4-5                 (1)  "Assistance organization" means:
 4-6                       (A)  a nonprofit organization that provides
 4-7     educational, health, or human services or assistance to homeless
 4-8     individuals;
 4-9                       (B)  a nonprofit food bank that solicits,
4-10     warehouses, and redistributes edible but unmarketable food to an
4-11     agency that feeds needy families and individuals;
4-12                       (C)  Texas Partners of the Americas, a registered
4-13     agency with the Advisory Committee on Voluntary Foreign Aid, with
4-14     the approval of the Partners of the Alliance office of the Agency
4-15     for International Development;  [and]
4-16                       (D)  a group, including a faith-based group, that
4-17     enters into a financial or nonfinancial agreement with a health or
4-18     human services agency to provide services to that agency's clients;
4-19     and
4-20                       (E)  a local workforce development board created
4-21     under Section 2308.253.
4-22           SECTION 6.  Section 2308.257, Government Code, is amended to
4-23     read as follows:
4-24           Sec. 2308.257.  RECUSAL. (a)  A member of a board shall avoid
4-25     the appearance of conflict of interest by not voting in, or
4-26     participating in, any decision by the board regarding the provision
4-27     of services by such member, or any organization which that member
 5-1     directly represents, or on any matter which would provide direct
 5-2     financial benefit to that member, the member's immediate family, or
 5-3     any organization which that member directly represents.
 5-4           (b)  Subsection (a) shall serve as a minimum standard and
 5-5     shall not be construed as to limit the board's authority for more
 5-6     restrictive governance to prevent real and/or apparent conflict of
 5-7     interest. [A member of a board shall avoid the appearance of
 5-8     conflict of interest by not voting in a vote of the board that
 5-9     directly affects the funding of the member's organization or of any
5-10     organization the member represents.]
5-11           SECTION 7. This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 936 was passed by the House on May 4,
         2001, by a non-record vote; and that the House concurred in Senate
         amendments to H.B. No. 936 on May 24, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 936 was passed by the Senate, with
         amendments, on May 22, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor