By Junell                                             H.B. No. 1409
         77R5216 ATP-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain restrictions on the authority of a regional
 1-3     planning commission, a council of governments, or a similar
 1-4     regional planning agency to contract to administer or collect a fee
 1-5     for administering federal funds.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1. Section 391.005(a), Local Government Code, is
 1-8     amended to read as follows:
 1-9           (a)  A commission may contract with a participating
1-10     governmental unit to perform a service if:
1-11                 (1)  the participating governmental unit could contract
1-12     with a private organization without governmental powers to perform
1-13     the service; [and]
1-14                 (2)  the contract to perform the service does not
1-15     impose a cost or obligation on a participating governmental unit
1-16     not a party to the contract; and
1-17                 (3)  the contract to perform the service is not for the
1-18     administration of federal funds, including community development
1-19     block grant funds, awarded through a competition between two or
1-20     more of the commission's participating governmental units.
1-21           SECTION 2. Section 2306.098, Government Code, is amended by
1-22     adding Subsection (c) to read as follows:
1-23           (c)  A regional planning commission, a council of
1-24     governments, or a similar regional planning agency created under
 2-1     Chapter 391, Local Government Code, may not collect a fee for
 2-2     administering community development block grant program funds
 2-3     allocated to eligible counties and municipalities.
 2-4           SECTION 3. This Act takes effect September 1, 2001.