1-1     By:  Solis (Senate Sponsor - Van de Putte)             H.B. No. 936
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Business
 1-4     and Commerce; May 11, 2001, reported favorably, as amended, by the
 1-5     following vote:  Yeas 6, Nays 0; May 11, 2001, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1
 1-7           Amend H.B. 936 by striking SECTION 6 of the bill and
 1-8     renumbering the subsequent sections appropriately.
 1-9                            A BILL TO BE ENTITLED
1-10                                   AN ACT
1-11     relating to the application of certain laws to local workforce
1-12     development boards and to the application of certain conflict of
1-13     interest requirements to the members of those boards.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15           SECTION 1. Section 551.001(3), Government Code, is amended to
1-16     read as follows:
1-17                 (3)  "Governmental body" means:
1-18                       (A)  a board, commission, department, committee,
1-19     or agency within the executive or legislative branch of state
1-20     government that is directed by one or more elected or appointed
1-21     members;
1-22                       (B)  a county commissioners court in the state;
1-23                       (C)  a municipal governing body in the state;
1-24                       (D)  a deliberative body that has rulemaking or
1-25     quasi-judicial power and that is classified as a department,
1-26     agency, or political subdivision of a county or municipality;
1-27                       (E)  a school district board of trustees;
1-28                       (F)  a county board of school trustees;
1-29                       (G)  a county board of education;
1-30                       (H)  the governing board of a special district
1-31     created by law; [and]
1-32                       (I)  a local workforce development board created
1-33     under Section 2308.253; and
1-34                       (J)  a nonprofit corporation organized under
1-35     Chapter 67, Water Code, that provides a water supply or wastewater
1-36     service, or both, and is exempt from ad valorem taxation under
1-37     Section 11.30, Tax Code.
1-38           SECTION 2. Section 552.003(1), Government Code, is amended to
1-39     read as follows:
1-40                 (1)  "Governmental body":
1-41                       (A)  means:
1-42                             (i)  a board, commission, department,
1-43     committee, institution, agency, or office that is within or is
1-44     created by the executive or legislative branch of state government
1-45     and that is directed by one or more elected or appointed members;
1-46                             (ii)  a county commissioners court in the
1-47     state;
1-48                             (iii)  a municipal governing body in the
1-49     state;
1-50                             (iv)  a deliberative body that has
1-51     rulemaking or quasi-judicial power and that is classified as a
1-52     department, agency, or political subdivision of a county or
1-53     municipality;
1-54                             (v)  a school district board of trustees;
1-55                             (vi)  a county board of school trustees;
1-56                             (vii)  a county board of education;
1-57                             (viii)  the governing board of a special
1-58     district;
1-59                             (ix)  a local workforce development board
1-60     created under Section 2308.253;
1-61                             (x) [(ix)]  the governing body of a
1-62     nonprofit corporation organized under Chapter 67, Water Code, that
1-63     provides a water supply or wastewater service, or both, and is
 2-1     exempt from ad valorem taxation under Section 11.30, Tax Code; and
 2-2                             (xi) [(x)]  the part, section, or portion
 2-3     of an organization, corporation, commission, committee,
 2-4     institution, or agency that spends or that is supported in whole or
 2-5     in part by public funds; and
 2-6                       (B)  does not include the judiciary.
 2-7           SECTION 3. Section 771.002(1), Government Code, is amended to
 2-8     read as follows:
 2-9                 (1)  "Agency" includes:
2-10                       (A)  a department, board, bureau, commission,
2-11     court, office, authority, council, or institution;
2-12                       (B)  a university, college, or any service or
2-13     part of a state institution of higher education;  [and]
2-14                       (C)  a local workforce development board created
2-15     under Section 2308.253; and
2-16                       (D)  any statewide job or employment training
2-17     program for disadvantaged youth that is substantially financed by
2-18     federal funds and that was created by executive order not later
2-19     than December 30, 1986.
2-20           SECTION 4. Section 271.081, Local Government Code, is amended
2-21     to read as follows:
2-22           Sec. 271.081.  DEFINITION.  In this subchapter, "local
2-23     government" means a county, municipality, special district, school
2-24     district, junior college district, a local workforce development
2-25     board created under Section 2308.253, Government Code, or other
2-26     legally constituted political subdivision of the state.
2-27           SECTION 5. Section 2175.001(1), Government Code, is amended
2-28     to read as follows:
2-29                 (1)  "Assistance organization" means:
2-30                       (A)  a nonprofit organization that provides
2-31     educational, health, or human services or assistance to homeless
2-32     individuals;
2-33                       (B)  a nonprofit food bank that solicits,
2-34     warehouses, and redistributes edible but unmarketable food to an
2-35     agency that feeds needy families and individuals;
2-36                       (C)  Texas Partners of the Americas, a registered
2-37     agency with the Advisory Committee on Voluntary Foreign Aid, with
2-38     the approval of the Partners of the Alliance office of the Agency
2-39     for International Development;  [and]
2-40                       (D)  a group, including a faith-based group, that
2-41     enters into a financial or nonfinancial agreement with a health or
2-42     human services agency to provide services to that agency's clients;
2-43     and
2-44                       (E)  a local workforce development board created
2-45     under Section 2308.253.
2-46           SECTION 6.  Section 171.001(1), Local Government Code, is
2-47     amended to read as follows:
2-48                 (1)  "Local public official" means a member of the
2-49     governing body or another officer, whether elected, appointed,
2-50     paid, or unpaid, of any district (including a school district),
2-51     county, municipality, precinct, central appraisal district, transit
2-52     authority or district, or other local governmental entity who
2-53     exercises responsibilities beyond those that are advisory in
2-54     nature, including a local workforce development board created under
2-55     Section 2308.253, Government Code.
2-56           SECTION 7.  Section 2308.257, Government Code, is amended to
2-57     read as follows:
2-58           Sec. 2308.257.  RECUSAL. (a)  A member of a board shall avoid
2-59     the appearance of conflict of interest by not voting in, or
2-60     participating in, any decision by the board regarding the provision
2-61     of services by such member, or any organization which that member
2-62     directly represents, or on any matter which would provide direct
2-63     financial benefit to that member, the member's immediate family, or
2-64     any organization which that member directly represents.
2-65           (b)  Subsection (a) shall serve as a minimum standard and
2-66     shall not be construed as to limit the board's authority for more
2-67     restrictive governance to prevent real and/or apparent conflict of
2-68     interest. [A member of a board shall avoid the appearance of
2-69     conflict of interest by not voting in a vote of the board that
 3-1     directly affects the funding of the member's organization or of any
 3-2     organization the member represents.]
 3-3           SECTION 8. This Act takes effect September 1, 2001.
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