By Gallego H.B. No. 3449
77R1074 KEL/QS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation and functions of the Texas Department
1-3 of Housing and Community Affairs and to other matters relating to
1-4 housing or community development, including the creation of the
1-5 Manufactured Housing Board and the Office of Rural Community
1-6 Affairs.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Section 2306.001, Government Code, is amended to
1-9 read as follows:
1-10 Sec. 2306.001. PURPOSES. The purposes of the department are
1-11 to:
1-12 (1) assist local governments in:
1-13 (A) providing essential public services for
1-14 their residents; and
1-15 (B) overcoming financial, social, and
1-16 environmental problems;
1-17 (2) provide for the housing needs of individuals and
1-18 families of low and very low income and families of moderate
1-19 income;
1-20 (3) contribute to the preservation, development, and
1-21 redevelopment of neighborhoods and communities, including
1-22 cooperation in the preservation of government-assisted housing
1-23 occupied by individuals and families of very low and extremely low
1-24 income;
2-1 (4) assist the governor and the legislature in
2-2 coordinating federal and state programs affecting local government;
2-3 [and]
2-4 (5) inform state officials and the public of the needs
2-5 of local government; and
2-6 (6) serve as a source of information to the public
2-7 regarding all affordable housing resources and community support
2-8 services in the state.
2-9 SECTION 2. Section 2306.021(b), Government Code, is amended
2-10 to read as follows:
2-11 (b) The department is composed of:
2-12 (1) the community affairs division;
2-13 (2) the housing finance division;
2-14 (3) the manufactured housing division; and
2-15 (4) [the community development division; and]
2-16 [(5)] any other division created by the director under
2-17 Section 2306.0521.
2-18 SECTION 3. Subchapter B, Chapter 2306, Government Code, is
2-19 amended by amending Sections 2306.022, 2306.024, 2306.025,
2-20 2306.027, and 2306.033-2306.035 and adding Section 2306.028 to read
2-21 as follows:
2-22 Sec. 2306.022. APPLICATION OF SUNSET ACT. The Texas
2-23 Department of Housing and Community Affairs is subject to Chapter
2-24 325 (Texas Sunset Act). Unless continued in existence as provided
2-25 by that chapter, the department is abolished and this chapter
2-26 expires September 1, 2003 [2001].
2-27 Sec. 2306.024. BOARD MEMBERS: APPOINTMENT AND COMPOSITION.
3-1 The board consists of seven public [nine] members appointed by the
3-2 governor.
3-3 Sec. 2306.025. TERMS OF BOARD MEMBERS. Members of the board
3-4 hold office for staggered terms of six years, with the terms of two
3-5 or three members expiring on January 31 of each odd-numbered year.
3-6 Sec. 2306.027. ELIGIBILITY. (a) The governor shall appoint
3-7 [make appointments] to the board public members who have a
3-8 demonstrated interest in issues related to housing and community
3-9 support services. A person appointed to the board must be a
3-10 registered voter in the state and may not hold another public
3-11 office [as follows:]
3-12 [(1) Place 1: an individual representing lending
3-13 institutions;]
3-14 [(2) Place 2: an individual representing local
3-15 government;]
3-16 [(3) Place 3: an individual representing housing
3-17 construction;]
3-18 [(4) Place 4: an individual representing
3-19 community-based nonprofit housing organizations;]
3-20 [(5) Place 5: an individual representing realtors or
3-21 housing developers;]
3-22 [(6) Place 6: an individual representing individuals
3-23 and families of low or very low income; and]
3-24 [(7) Places 7 through 9: public members].
3-25 (b) Appointments [Except as necessary to comply with the
3-26 requirements of Section 2306.026 regarding diversity, appointments]
3-27 to the board shall be made without regard to the race, color,
4-1 disability [handicap], sex, religion, age, or national origin of
4-2 the appointees and shall be made in a manner that produces
4-3 representation on the board of the different geographical regions
4-4 of this state. Appointments to the board must broadly reflect the
4-5 economic, cultural, and social diversity of the state, including
4-6 ethnic minorities and women.
4-7 (c) A person may not be a member of the board if the person
4-8 or the person's spouse:
4-9 (1) is registered, certified, or licensed by a
4-10 regulatory agency in the field of banking, real estate, housing
4-11 development, or housing construction;
4-12 (2) is employed by or participates in the management
4-13 of a business entity or other organization regulated by or
4-14 receiving money from the department;
4-15 (3) owns or controls, directly or indirectly, more
4-16 than a 10 percent interest in a business entity or other
4-17 organization regulated by or receiving money from the department;
4-18 or
4-19 (4) uses or receives a substantial amount of tangible
4-20 goods, services, or money from the department other than
4-21 compensation or reimbursement authorized by law for board
4-22 membership, attendance, or expenses [An elected or appointed
4-23 official of a political subdivision appointed to Place 2 on the
4-24 board is a member of the board as an additional or ex officio duty
4-25 required by the member's other official capacity, and the member's
4-26 service on the board is not dual office holding].
4-27 Sec. 2306.028. TRAINING. (a) A person who is appointed to
5-1 and qualifies for office as a member of the board may not vote,
5-2 deliberate, or be counted as a member in attendance at a meeting of
5-3 the board until the person completes a training program that
5-4 complies with this section.
5-5 (b) The training program must provide the person with
5-6 information regarding:
5-7 (1) the legislation that created the department and
5-8 the board;
5-9 (2) the programs operated by the department;
5-10 (3) the role and functions of the department;
5-11 (4) the rules of the department, with an emphasis on
5-12 the rules that relate to disciplinary and investigatory authority;
5-13 (5) the current budget for the department;
5-14 (6) the results of the most recent formal audit of the
5-15 department;
5-16 (7) the requirements of:
5-17 (A) the open meetings law, Chapter 551;
5-18 (B) the public information law, Chapter 552;
5-19 (C) the administrative procedure law, Chapter
5-20 2001; and
5-21 (D) other laws relating to public officials,
5-22 including conflict-of-interest laws; and
5-23 (8) any applicable ethics policies adopted by the
5-24 department or the Texas Ethics Commission.
5-25 (c) A person appointed to the board is entitled to
5-26 reimbursement, as provided by the General Appropriations Act, for
5-27 the travel expenses incurred in attending the training program
6-1 regardless of whether the attendance at the program occurs before
6-2 or after the person qualifies for office.
6-3 Sec. 2306.033. REMOVAL OF MEMBERS. (a) It is a ground for
6-4 removal from the board that a member:
6-5 (1) does not have at the time of taking office
6-6 [appointment] the qualifications required by Section [2306.026,]
6-7 2306.027[, or 2306.028 for appointment to the board];
6-8 (2) does not maintain during [the] service on the
6-9 board the qualifications required by Section [2306.026,] 2306.027[,
6-10 or 2306.028 for appointment to the board];
6-11 (3) is ineligible for membership under [violates a
6-12 prohibition established by] Section 2306.027(c), 2306.034, or
6-13 2306.035;
6-14 (4) cannot, because of illness or disability,
6-15 discharge the member's duties for a substantial part of the
6-16 member's term [for which the member is appointed because of illness
6-17 or disability];
6-18 (5) is absent from more than half of the regularly
6-19 scheduled board meetings [of the board] that the member is eligible
6-20 to attend during a calendar year without an excuse approved [unless
6-21 the absence is excused] by a majority vote of the board; or
6-22 (6) engages in misconduct or unethical or criminal
6-23 behavior.
6-24 (b) The validity of an action of the board is not affected
6-25 by the fact that it is taken when a ground for removal of a board
6-26 member exists.
6-27 (c) If the director has knowledge that a potential ground
7-1 for removal exists, the director shall notify the presiding officer
7-2 of the board of the potential ground. The presiding officer shall
7-3 then notify the governor and the attorney general that a potential
7-4 ground for removal exists. If the potential ground for removal
7-5 involves the presiding officer, the director shall notify the next
7-6 highest ranking officer of the board, who shall then notify the
7-7 governor and the attorney general that a potential ground for
7-8 removal exists.
7-9 Sec. 2306.034. DISQUALIFICATION OF MEMBERS AND CERTAIN
7-10 EMPLOYEES. (a) In [An employee or paid consultant of a Texas trade
7-11 association in the field of banking, real estate, housing
7-12 development, or housing construction may not be a member of the
7-13 board or an employee of the department who is exempt from the
7-14 state's position classification plan or is compensated at or above
7-15 the amount prescribed by the General Appropriations Act for step 1,
7-16 salary group 17, of the position classification salary schedule.]
7-17 [(b) For the purposes of] this section, [a] "Texas trade
7-18 association" means [is] a [nonprofit,] cooperative[,] and
7-19 voluntarily joined association of business or professional
7-20 competitors in this state designed to assist its members and its
7-21 industry or profession in dealing with mutual business or
7-22 professional problems and in promoting their common interest.
7-23 (b) A person may not be a member of the board and may not be
7-24 a department employee employed in a "bona fide executive,
7-25 administrative, or professional capacity," as that phrase is used
7-26 for purposes of establishing an exemption to the overtime
7-27 provisions of the federal Fair Labor Standards Act of 1938 (29
8-1 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
8-2 (1) the person is an officer, employee, or paid
8-3 consultant of a Texas trade association in the field of banking,
8-4 real estate, housing development, or housing construction; or
8-5 (2) the person's spouse is an officer, manager, or
8-6 paid consultant of a Texas trade association in the field of
8-7 banking, real estate, housing development, or housing construction.
8-8 Sec. 2306.035. LOBBYIST RESTRICTION. A person may not be
8-9 [serve as] a member of the board or act as the director of the
8-10 department or the general counsel to the board or the department if
8-11 the person is required to register as a lobbyist under Chapter 305
8-12 because of the person's activities for compensation [in or] on
8-13 behalf of a profession related to the operation of the department.
8-14 SECTION 4. Section 2306.030(a), Government Code, is amended
8-15 to read as follows:
8-16 (a) The governor shall designate a member of [appoint a
8-17 presiding officer from] the board as the presiding officer of the
8-18 board to serve in that capacity at the will of the governor
8-19 [members]. The presiding officer presides at meetings of the board
8-20 and performs other duties required by this chapter.
8-21 SECTION 5. Section 2306.032, Government Code, is amended by
8-22 adding Subsections (c)-(g) to read as follows:
8-23 (c) All materials in the possession of the department that
8-24 are relevant to a matter proposed for discussion at a board meeting
8-25 must be sent to interested parties, posted on the department's
8-26 website, made available in hard-copy format at the department,
8-27 filed with the secretary of state for publication by reference in
9-1 the Texas Register, and disseminated by any other means required by
9-2 this chapter or by Chapter 551.
9-3 (d) The materials described by Subsection (c) must be made
9-4 available to the public as required by Subsection (c) not later
9-5 than the seventh day before the date of the meeting. The board may
9-6 not consider at the meeting any material that is not made available
9-7 to the public by the date required by this subsection.
9-8 (e) The agenda for a board meeting must state each project
9-9 the staff is recommending for assistance by the department.
9-10 (f) For each item on the board's agenda at the meeting, the
9-11 board shall provide for public comment after the staff presentation
9-12 on that topic.
9-13 (g) The board shall adopt rules that give the public a
9-14 reasonable amount of time for testimony at meetings.
9-15 SECTION 6. Subchapter B, Chapter 2306, Government Code, is
9-16 amended by adding Section 2306.0321 to read as follows:
9-17 Sec. 2306.0321. APPEAL OF BOARD DECISIONS. (a) The board
9-18 shall adopt rules outlining a formal process for appealing board
9-19 decisions.
9-20 (b) The rules must specify the requirements for appealing a
9-21 board decision, including:
9-22 (1) the persons eligible to appeal;
9-23 (2) the grounds for an appeal;
9-24 (3) the process for filing an appeal, including the
9-25 information that must be submitted with an appeal;
9-26 (4) a reasonable period in which an appeal must be
9-27 filed, heard, and decided;
10-1 (5) the process by which an appeal is heard and a
10-2 decision is made;
10-3 (6) the possible outcomes of an appeal; and
10-4 (7) the process by which notification of a decision
10-5 and the basis for a decision is given.
10-6 SECTION 7. Subchapter C, Chapter 2306, Government Code, is
10-7 amended by adding Sections 2306.051, 2306.0521, and 2306.057 to
10-8 read as follows:
10-9 Sec. 2306.051. SEPARATION OF RESPONSIBILITIES. The board
10-10 shall develop and implement policies that clearly separate the
10-11 policy-making responsibilities of the board and the management
10-12 responsibilities of the director and staff of the department.
10-13 Sec. 2306.0521. ORGANIZATIONAL FLEXIBILITY OF DEPARTMENT.
10-14 (a) Notwithstanding Section 2306.021(b) or any other provision of
10-15 this chapter, the director, with the approval of the board, may:
10-16 (1) create divisions in addition to those listed in
10-17 Section 2306.021(b) and assign to the newly created divisions any
10-18 duties and powers imposed on or granted to an existing division or
10-19 the department generally;
10-20 (2) eliminate any division listed in Section
10-21 2306.021(b) or created under this section and assign any duties or
10-22 powers previously assigned to the eliminated division to another
10-23 division listed in Section 2306.021(b) or created under this
10-24 section; or
10-25 (3) eliminate all divisions listed in Section
10-26 2306.021(b) or created under this section and reorganize the
10-27 distribution of powers and duties granted to or imposed on a
11-1 division in any manner the director determines appropriate for the
11-2 proper administration of the department.
11-3 (b) This section does not apply to the manufactured housing
11-4 division.
11-5 Sec. 2306.057. COMPLIANCE ASSESSMENT REQUIRED FOR PROJECT
11-6 APPROVAL BY BOARD. (a) Before the board approves any project
11-7 application submitted under this chapter, the department, through
11-8 the division with responsibility for compliance matters, shall:
11-9 (1) assess the history of the applicant's compliance
11-10 with all applicable requirements and the compliance issues
11-11 associated with the proposed project; and
11-12 (2) report the results of the assessment in writing to
11-13 the board.
11-14 (b) The written report described by Subsection (a)(2) must
11-15 be included in the applicable project file for board and department
11-16 review.
11-17 (c) The board shall fully document and disclose any
11-18 instances in which the board approves a project application despite
11-19 an adverse compliance history associated with the project or the
11-20 applicant.
11-21 SECTION 8. Section 2306.052, Government Code, is amended by
11-22 amending Subsection (c) and adding Subsection (e) to read as
11-23 follows:
11-24 (c) The director shall develop and implement the policies
11-25 established by the board that define the responsibilities of each[:]
11-26 [(1) the director, board, and staff of the department;
11-27 and]
12-1 [(2) the community affairs division, the housing
12-2 finance division, and any other] division in the department.
12-3 (e) The director shall develop and implement a program to
12-4 train employees on the public information requirements of Chapter
12-5 552 and shall monitor the compliance of employees with those
12-6 requirements.
12-7 SECTION 9. Subchapter D, Chapter 2306, Government Code, is
12-8 amended by amending Section 2306.061 and adding Sections 2306.0631
12-9 and 2306.078 to read as follows:
12-10 Sec. 2306.061. STANDARDS OF [INFORMATION ON QUALIFICATIONS
12-11 AND] CONDUCT. The director or the director's designee shall become
12-12 aware of and provide to members of the board [members] and to [the]
12-13 department employees, as often as necessary, information regarding
12-14 the requirements [about the director's, members', and employees':]
12-15 [(1) qualifications] for office or employment under
12-16 this chapter, including information regarding a person's[; and]
12-17 [(2)] responsibilities under applicable laws relating
12-18 to standards of conduct for state officers or employees.
12-19 Sec. 2306.0631. STATE EMPLOYEE INCENTIVE PROGRAM. The
12-20 director or the director's designee shall provide to department
12-21 employees information and training on the benefits and methods of
12-22 participation in the state employee incentive program under
12-23 Subchapter B, Chapter 2108.
12-24 Sec. 2306.078. PROJECT COMPLIANCE; DATABASE. (a) The
12-25 department, through the division responsible for compliance
12-26 matters, shall monitor for compliance with all applicable
12-27 requirements the entire construction phase associated with any
13-1 project under this chapter. The monitoring level for each project
13-2 must be based on the amount of risk associated with the project.
13-3 (b) After completion of a project's construction phase, the
13-4 department shall periodically review the performance of the project
13-5 to confirm the accuracy of the department's initial compliance
13-6 evaluation during the construction phase.
13-7 (c) The department shall use the division responsible for
13-8 credit underwriting matters and the division responsible for
13-9 compliance matters to determine the amount of risk associated with
13-10 each project.
13-11 (d) The department shall create an easily accessible
13-12 database that contains all project compliance information developed
13-13 under this chapter.
13-14 SECTION 10. Sections 2306.066(b) and (c), Government Code,
13-15 are amended to read as follows:
13-16 (b) The department shall maintain a [keep an information]
13-17 file on [about] each written complaint filed with the department
13-18 [that the department has authority to resolve]. The file must
13-19 include:
13-20 (1) the name of the person who filed the complaint;
13-21 (2) the date the complaint is received by the
13-22 department;
13-23 (3) the subject matter of the complaint;
13-24 (4) the name of each person contacted in relation to
13-25 the complaint;
13-26 (5) a summary of the results of the review or
13-27 investigation of the complaint; and
14-1 (6) an explanation of the reason the file was closed,
14-2 if the department closed the file without taking action other than
14-3 to investigate the complaint.
14-4 (c) The department shall provide to the person filing the
14-5 complaint and to each person who is a subject of the complaint a
14-6 copy of the department's policies and procedures relating to
14-7 complaint investigation and resolution. The [If a written
14-8 complaint is filed with the department that the department has
14-9 authority to resolve, the] department, at least quarterly [and]
14-10 until final disposition of the complaint, shall notify the person
14-11 filing the complaint and each person who is a subject of [parties
14-12 to] the complaint of the status of the investigation [complaint]
14-13 unless the notice would jeopardize an undercover investigation.
14-14 SECTION 11. Section 2306.0661, Government Code, is amended
14-15 to read as follows:
14-16 Sec. 2306.0661. PUBLIC HEARINGS. (a) Except as provided by
14-17 Subsection (b), this [This] section applies only to state-funded
14-18 housing programs, programs funded with bond proceeds, the low
14-19 income housing tax credit program, and the state low income housing
14-20 plan. Federally funded programs shall comply with the federal
14-21 public participation requirements and Chapter 2105, if applicable.
14-22 (b) The department shall encourage informed and effective
14-23 public participation in the department's programs and plans by
14-24 [through] holding, on an annual basis in each uniform service
14-25 region of the state, a consolidated public hearing in which the
14-26 board solicits and accepts public comments regarding the following
14-27 programs:
15-1 (1) the housing trust fund program;
15-2 (2) the HOME investment partnerships program;
15-3 (3) the single-family housing mortgage revenue bond
15-4 program;
15-5 (4) the multifamily housing mortgage revenue bond
15-6 program;
15-7 (5) the low income housing tax credit program;
15-8 (6) the low income energy assistance program;
15-9 (7) any other program in the consolidated plan
15-10 submitted to the United States Department of Housing and Urban
15-11 Development; and
15-12 (8) any other program in the state low income housing
15-13 plan [hearings and soliciting and accepting public comments during
15-14 those hearings].
15-15 (c) In holding a public hearing, the department shall ensure
15-16 that:
15-17 (1) the location of the hearing is:
15-18 (A) in a public building or facility accessible
15-19 to the public;
15-20 (B) accessible to persons with disabilities; and
15-21 (C) reasonably accessible by public
15-22 transportation, if available;
15-23 (2) hearings are scheduled at times when working and
15-24 nonworking people can attend; and
15-25 (3) child care is provided where practical.
15-26 (d) [(c)] In scheduling a public hearing, the department
15-27 shall:
16-1 (1) publish notice of the time, place, and subject of
16-2 the hearing in the Texas Register and a newspaper of general
16-3 circulation in the community in which the hearing is to be held at
16-4 least seven days before the date of the hearing. Whenever
16-5 practical, the department shall publish notice of the time, place,
16-6 and subject of the hearing in the Texas Register and a newspaper of
16-7 general circulation in the community in which the hearing is to be
16-8 held at least thirty days before the date of the hearing;
16-9 (2) provide notice of the hearing to each public
16-10 library, in the community in which the hearing is to be held, for
16-11 posting in a public area of the library;
16-12 (3) provide notice of the hearing to:
16-13 (A) each member of the board;
16-14 (B) each member of the advisory committee
16-15 consulted by the department during preparation of the state low
16-16 income housing plan; and
16-17 (C) each member of the legislature;
16-18 (4) [make a reasonable effort to inform interested
16-19 persons and organizations of the hearing;]
16-20 [(5)] make information about the hearing, including,
16-21 if appropriate, the qualified allocation plan, application forms
16-22 for a low income housing tax credit, and the state low income
16-23 housing plan, available on the Internet in accordance with
16-24 Subsection (e) and with Section 2306.077; and
16-25 (5) [(6)] provide an opportunity for persons to
16-26 transmit on the Internet written testimony or comments on a subject
16-27 of a hearing in accordance with rules adopted by the board.
17-1 (e) At least six weeks before the date of the hearing, all
17-2 materials in the possession of the department that are relevant to
17-3 a matter proposed for discussion at a consolidated public hearing
17-4 under this section must be sent to interested persons and
17-5 organizations, posted on the department's website, made available
17-6 in hard-copy format at the department, filed with the secretary of
17-7 state for publication by reference in the Texas Register, and
17-8 disseminated by any other means required by this chapter or by
17-9 Chapter 551.
17-10 SECTION 12. Section 2306.067, Government Code, is amended by
17-11 adding Subsection (d) to read as follows:
17-12 (d) The director may enter into an agreement with the
17-13 manufactured housing division to loan or assign department
17-14 employees, equipment, and facilities to that division.
17-15 SECTION 13. Section 2306.0721, Government Code, is amended
17-16 by amending Subsection (c) and adding Subsection (f) to read as
17-17 follows:
17-18 (c) The plan must include:
17-19 (1) an estimate and analysis of the housing needs of
17-20 the following populations in each uniform [the] state service
17-21 region:
17-22 (A) individuals and families of moderate, low,
17-23 and very low income;
17-24 (B) individuals with special needs; and
17-25 (C) homeless individuals;
17-26 (2) a proposal to use all available housing resources
17-27 to address the housing needs of the populations described by
18-1 Subdivision (1) by establishing funding levels for all
18-2 housing-related programs;
18-3 (3) an estimate of the number of federally assisted
18-4 housing units available for individuals and families of low and
18-5 very low income and individuals with special needs in each uniform
18-6 state service region [county];
18-7 (4) a description of state programs that govern the
18-8 use of all available housing resources;
18-9 (5) a resource allocation plan that targets all
18-10 available housing resources to individuals and families of low and
18-11 very low income and individuals with special needs in each uniform
18-12 state service region;
18-13 (6) a description of the department's efforts to
18-14 monitor and analyze the unused or underused federal resources of
18-15 other state agencies for housing-related services and services for
18-16 homeless individuals and the department's recommendations to ensure
18-17 the full use by the state of all available federal resources for
18-18 those services in each uniform state service region;
18-19 (7) strategies to provide housing for individuals and
18-20 families with special needs in each uniform state service region;
18-21 (8) a description of the department's efforts to
18-22 encourage in each uniform state service region the construction of
18-23 housing units that incorporate energy efficient construction and
18-24 appliances; [and]
18-25 (9) an estimate and analysis of the housing supply in
18-26 each uniform state service region;
18-27 (10) an inventory of all publicly and, where possible,
19-1 privately funded housing resources, including public housing
19-2 authorities, housing finance corporations, community housing
19-3 development organizations, and community action agencies;
19-4 (11) strategies for meeting rural housing needs;
19-5 (12) information on the demand for contract-for-deed
19-6 conversions, services from self-help centers, consumer education,
19-7 and other colonia resident services in counties some part of which
19-8 is within 100 miles of the international border of this state;
19-9 (13) a summary of public comments received at a
19-10 hearing under this chapter or from another source that concern the
19-11 demand for colonia resident services described by Subdivision (12);
19-12 and
19-13 (14) any other housing-related information that the
19-14 state is required to include in the one-year action plan of the
19-15 consolidated plan submitted annually to the United States
19-16 Department of Housing and Urban Development.
19-17 (f) The director may subdivide the uniform state service
19-18 regions as necessary for purposes of the state low income housing
19-19 plan.
19-20 SECTION 14. Section 2306.0722, Government Code, is amended
19-21 to read as follows:
19-22 Sec. 2306.0722. PREPARATION OF PLAN AND REPORT. (a) Before
19-23 preparing the annual low income housing report under Section
19-24 2306.072 and the state low income housing plan under Section
19-25 2306.0721, the department shall meet with regional planning
19-26 commissions created under Chapter 391, Local Government Code,
19-27 representatives of groups with an interest in low income housing,
20-1 nonprofit housing organizations, managers, owners, and developers
20-2 of affordable housing, local government officials, and residents of
20-3 low income housing. The department shall obtain the comments and
20-4 suggestions of the representatives, officials, and residents about
20-5 the prioritization and allocation of the department's resources in
20-6 regard to housing.
20-7 (b) In preparing the annual report under Section 2306.072
20-8 and the state low income housing plan under Section 2306.0721, the
20-9 director shall:
20-10 (1) coordinate local, state, and federal housing
20-11 resources, including tax exempt housing bond financing and low
20-12 income housing tax credits;
20-13 (2) set priorities for the available housing resources
20-14 to help the neediest individuals;
20-15 (3) evaluate the success of publicly supported housing
20-16 programs;
20-17 (4) survey and identify the unmet housing needs of
20-18 individuals the department is required to assist;
20-19 (5) ensure that housing programs benefit an individual
20-20 without regard to the individual's race, ethnicity, sex, or
20-21 national origin;
20-22 (6) develop housing opportunities for individuals and
20-23 families of low and very low income and individuals with special
20-24 housing needs;
20-25 (7) develop housing programs through an open, fair,
20-26 and public process;
20-27 (8) set priorities for assistance in a manner that is
21-1 appropriate and consistent with the housing needs of the
21-2 populations described by Section 2306.0721(c)(1);
21-3 (9) incorporate recommendations that are consistent
21-4 with the consolidated plan submitted annually by the state to the
21-5 United States Department of Housing and Urban Development;
21-6 (10) identify the organizations and individuals
21-7 consulted by the department in preparing the annual report and
21-8 state low income housing plan and summarize and incorporate
21-9 comments and suggestions provided under Subsection (a) as the
21-10 board determines to be appropriate;
21-11 (11) develop a plan to respond to changes in federal
21-12 funding and programs for the provision of affordable housing; [and]
21-13 (12) use the following standardized categories to
21-14 describe the income of program applicants and beneficiaries:
21-15 (A) 0 to 30 percent of area median income
21-16 adjusted for family size;
21-17 (B) more than 30 to 60 percent of area median
21-18 income adjusted for family size;
21-19 (C) more than 60 to 80 percent of area median
21-20 income adjusted for family size;
21-21 (D) more than 80 to 115 percent of area median
21-22 income adjusted for family size; or
21-23 (E) more than 115 percent of area median income
21-24 adjusted for family size; and
21-25 (13) use the most recent census data combined with
21-26 existing data from local housing and community service providers in
21-27 the state, including public housing authorities, housing finance
22-1 corporations, community housing development organizations, and
22-2 community action agencies.
22-3 SECTION 15. Section 2306.0723(a), Government Code, is amended
22-4 to read as follows:
22-5 (a) The department shall hold public hearings on the annual
22-6 state low income housing plan and report before the director
22-7 submits the report and the plan to the board. [Public hearings
22-8 shall be held in Dallas or Fort Worth, El Paso, Houston, San
22-9 Antonio, the Lower Rio Grande Valley, and at least two additional
22-10 municipalities selected by the department to represent
22-11 geographically diverse communities.] The department shall provide
22-12 notice of the public hearings as required by Section 2306.0661. The
22-13 published notice must include a summary of the report and plan. The
22-14 department shall accept comments on the report and plan at the
22-15 public hearings and for at least 30 days after the date of the
22-16 publication of the notice of the hearings.
22-17 SECTION 16. Section 2306.111, Government Code, is amended by
22-18 amending Subsection (d) and adding Subsection (g) to read as
22-19 follows:
22-20 (d) The department shall allocate housing funds provided to
22-21 the state under the Cranston-Gonzalez National Affordable Housing
22-22 Act (42 U.S.C. Section 12701 et seq.), housing trust funds
22-23 administered by the department under Sections 2306.201-2306.206,
22-24 and commitments issued under the federal low income housing tax
22-25 credit program administered by the department under Sections
22-26 2306.671-2306.678 to each uniform state service region based on a
22-27 formula developed by the department that is based on the need for
23-1 housing assistance and the availability of housing resources,
23-2 provided that the allocations are consistent with applicable
23-3 federal and state requirements and limitations. The department
23-4 shall use the information contained in its annual state low income
23-5 housing plan to develop the formula. If the department determines
23-6 under the formula that an insufficient number of eligible
23-7 applications for assistance out of funds or credits allocable under
23-8 this subsection are submitted to the department from a particular
23-9 uniform state service region, the department shall use the unused
23-10 funds or credits allocated to that region for all other regions
23-11 based on identified need and financial feasibility.
23-12 (g) For each uniform state service region, the department
23-13 shall establish funding priorities to ensure that:
23-14 (1) funds are awarded to project applicants who are
23-15 best able to meet recognized needs for affordable housing, as
23-16 determined by the department;
23-17 (2) when practicable, the least restrictive funding
23-18 sources are used to serve the lowest income residents; and
23-19 (3) funds are awarded based on a project applicant's
23-20 ability to:
23-21 (A) provide the greatest number of residential
23-22 units;
23-23 (B) serve persons with the lowest percent area
23-24 median family income;
23-25 (C) extend the duration of the project to serve
23-26 a continuing public need; and
23-27 (D) use other funding sources to minimize the
24-1 amount of subsidy needed to complete the project.
24-2 SECTION 17. Subchapter F, Chapter 2306, Government Code, is
24-3 amended by adding Sections 2306.1111 and 2306.1112 to read as
24-4 follows:
24-5 Sec. 2306.1111. UNIFORM APPLICATION AND FUNDING CYCLE. (a)
24-6 Notwithstanding any other state law and to the extent consistent
24-7 with federal law, the department shall establish a uniform
24-8 application and funding cycle for multifamily housing programs
24-9 administered by the department under this chapter.
24-10 (b) Wherever possible, the department shall use uniform
24-11 threshold requirements for multifamily housing program
24-12 applications, including uniform threshold requirements relating to
24-13 market studies and environmental reports.
24-14 Sec. 2306.1112. EXECUTIVE AWARD AND REVIEW ADVISORY
24-15 COMMITTEE. (a) The department shall establish an executive award
24-16 and review advisory committee to make recommendations to the board
24-17 regarding funding and allocation decisions.
24-18 (b) The advisory committee is composed of the administrator
24-19 of each of the department's programs and one representative from
24-20 each of the department's planning, underwriting, and compliance
24-21 functions.
24-22 (c) The advisory committee shall develop the funding
24-23 priorities required by Section 2306.111(g) and shall make funding
24-24 and allocation recommendations to the board based on the ability of
24-25 applicants to meet those priorities.
24-26 (d) The advisory committee is not subject to Chapter 2110.
24-27 SECTION 18. Subchapter H, Chapter 2306, Government Code, is
25-1 amended by adding Section 2306.1711 to read as follows:
25-2 Sec. 2306.1711. RULEMAKING PROCEDURES FOR CERTAIN PROGRAMS.
25-3 (a) The department shall adopt rules outlining formal rulemaking
25-4 procedures for the low income housing tax credit program and the
25-5 multifamily housing mortgage revenue bond program in accordance
25-6 with Chapter 2001.
25-7 (b) The rules adopted under Subsection (a) must include:
25-8 (1) procedures for allowing interested parties to
25-9 petition the department to request the adoption of a new rule or
25-10 the amendment of an existing rule;
25-11 (2) notice requirements and deadlines for taking
25-12 certain actions; and
25-13 (3) a provision for a public hearing.
25-14 (c) The department shall provide for public input before
25-15 adopting rules for programs with requests for proposals and notices
25-16 of funding availability.
25-17 SECTION 19. Subchapter H, Chapter 2306, Government Code, is
25-18 amended by adding Section 2306.185 to read as follows:
25-19 Sec. 2306.185. PRESERVATION OF AFFORDABILITY THROUGH
25-20 ALLOCATION OF CERTAIN TAX CREDITS AND BONDS. (a) The department
25-21 shall dedicate not less than 10 percent of the total amount of
25-22 department allocations of low income housing tax credits, private
25-23 activity bonds, and qualified 501(c)(3) bonds to preserving
25-24 affordable multifamily housing developments. Any additional amount
25-25 set aside by the department for preservation of those developments
25-26 must be determined through the department's public hearing process
25-27 under Subchapter D.
26-1 (b) The department shall modify existing scoring systems or
26-2 develop new scoring systems to reward low income housing tax credit
26-3 or bond applications that propose for multifamily housing
26-4 developments an affordability period that extends beyond any
26-5 minimum required affordability period.
26-6 SECTION 20. Section 2306.252, Government Code, is amended by
26-7 amending Subsection (b) and adding Subsections (d)-(g) to read as
26-8 follows:
26-9 (b) The center shall:
26-10 (1) provide educational material prepared in plain
26-11 language to housing advocates, housing sponsors, borrowers, and
26-12 tenants;
26-13 (2) provide technical assistance to nonprofit housing
26-14 sponsors; and
26-15 (3) assist in the development of housing policy,
26-16 including the annual state low income housing plan and report and
26-17 the consolidated plan.
26-18 (d) The center shall serve as a housing and community
26-19 services clearinghouse to provide information to the public, local
26-20 communities, housing providers, and other interested parties
26-21 regarding:
26-22 (1) the performance of each department program;
26-23 (2) the number of people served;
26-24 (3) the income of people served;
26-25 (4) the funding amounts distributed;
26-26 (5) allocation decisions;
26-27 (6) regional impact of department programs; and
27-1 (7) any other relevant information.
27-2 (e) The center shall compile the department's reports into
27-3 an integrated format and shall compile and maintain a list of all
27-4 affordable housing resources in the state, organized by community.
27-5 (f) The information required under Subsections (d) and (e)
27-6 must be readily available in:
27-7 (1) a hard-copy format; and
27-8 (2) a user-friendly format on the department's
27-9 website.
27-10 (g) The center shall provide information regarding the
27-11 department's housing and community affairs programs to the Texas
27-12 Information and Referral Network for inclusion in the statewide
27-13 information and referral network as required by Section 531.0312.
27-14 SECTION 21. Subchapter K, Chapter 2306, Government Code, is
27-15 amended by adding Sections 2306.256 and 2306.257 to read as
27-16 follows:
27-17 Sec. 2306.256. AFFORDABLE HOUSING PRESERVATION PROGRAM. (a)
27-18 The department shall develop and implement a program to preserve
27-19 affordable housing in this state.
27-20 (b) Through the program, the department shall:
27-21 (1) maintain data on housing projected to lose its
27-22 affordable status;
27-23 (2) develop policies necessary to ensure the
27-24 preservation of affordable housing in this state;
27-25 (3) advise other program areas with respect to the
27-26 policies; and
27-27 (4) assist those other program areas in implementing
28-1 the policies.
28-2 Sec. 2306.257. APPLICANT COMPLIANCE WITH STATE AND FEDERAL
28-3 LAWS PROHIBITING DISCRIMINATION: CERTIFICATION AND MONITORING. (a)
28-4 The department may provide assistance through a housing program
28-5 under this chapter only to an applicant who certifies the
28-6 applicant's compliance with:
28-7 (1) state and federal fair housing laws, including
28-8 Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Section 3601
28-9 et seq.), the Fair Housing Amendments Act of 1988 (42 U.S.C.
28-10 Section 3610 et seq.), and Chapter 301, Property Code;
28-11 (2) the Civil Rights Act of 1964 (42 U.S.C. Section
28-12 2000a et seq.);
28-13 (3) the Americans with Disabilities Act of 1990 (42
28-14 U.S.C. Section 12101 et seq.); and
28-15 (4) the Rehabilitation Act of 1973 (29 U.S.C. Section
28-16 701 et seq.).
28-17 (b) In conjunction with the state Commission on Human
28-18 Rights, the department shall adopt rules governing the
28-19 certification process described by this section, including rules
28-20 establishing:
28-21 (1) procedures for certifying compliance;
28-22 (2) methods for measuring continued compliance; and
28-23 (3) different degrees of sanctions for noncompliance
28-24 and reasonable periods for correcting noncompliance.
28-25 (c) Sanctions imposed under Subsection (b)(3) may:
28-26 (1) include a public reprimand, termination of
28-27 assistance, and a bar on future eligibility for assistance through
29-1 a housing program under this chapter; and
29-2 (2) be imposed in addition to any action taken by the
29-3 state Commission on Human Rights.
29-4 (d) The department shall promptly notify the state
29-5 Commission on Human Rights if the department determines that a
29-6 program participant may have failed to comply with the laws listed
29-7 by Subsection (a).
29-8 SECTION 22. Sections 2306.358(a), (a-1), and (b), Government
29-9 Code, are amended to read as follows:
29-10 (a) Of the total qualified 501(c)(3) bonds issued under
29-11 Section 145 of the Internal Revenue Code of 1986 (26 U.S.C. Section
29-12 145) in each fiscal year, it is the express intent of the
29-13 legislature that the department shall allocate qualified 501(c)(3)
29-14 bonding authority as follows:
29-15 (1) [at least 50 percent of the total annual issuance
29-16 amount authorized through the memorandum of understanding provided
29-17 for in Subsection (b) of this section is reserved for the purposes
29-18 of new construction or acquisition with substantial rehabilitation;]
29-19 [(2)] not more than 25 percent of the total annual
29-20 issuance amount authorized through the memorandum of understanding
29-21 provided for in Subsection (b) [of this section] may be used for
29-22 projects in any one metropolitan area; and
29-23 (2) [(3)] at least 15 percent of the annual issuance
29-24 amount authorized through the memorandum of understanding provided
29-25 for in Subsection (b) [of this section] is reserved for projects in
29-26 rural areas.
29-27 (a-1) For the purposes of Subsection (a), "rural[:]
30-1 [(1) "Rural] area" and "metropolitan area" shall be
30-2 defined through the memorandum of understanding provided for in
30-3 Subsection (b) [of this section.]
30-4 [(2) "Substantial rehabilitation" means rehabilitation
30-5 of a project with a minimum of $5,000 of rehabilitation cost per
30-6 unit].
30-7 (b) A qualified 501(c)(3) bond may not be issued unless
30-8 approved by the Bond Review Board. In addition, the Bond Review
30-9 Board shall enter into a memorandum of understanding with the
30-10 department specifying the amount of bonds to be issued in each
30-11 fiscal year. The department and the Bond Review Board shall review
30-12 the memorandum of understanding annually to determine the specific
30-13 amount of bonds to be issued in each fiscal year. The Bond Review
30-14 Board may not approve a proposal to issue qualified 501(c)(3) bonds
30-15 unless they meet the requirements of this section, including the
30-16 memorandum of understanding, and all other laws that may apply.
30-17 SECTION 23. The heading to Subchapter Z, Chapter 2306,
30-18 Government Code, is amended to read as follows:
30-19 SUBCHAPTER Z. COLONIAS [COLONIA SELF-HELP CENTERS]
30-20 SECTION 24. Subchapter Z, Chapter 2306, Government Code, is
30-21 amended by amending Sections 2306.584 and 2306.585 and adding
30-22 Sections 2306.590 and 2306.591 to read as follows:
30-23 Sec. 2306.584. COLONIA RESIDENT ADVISORY COMMITTEE. (a) The
30-24 department shall appoint not fewer than five persons who are
30-25 residents of colonias to serve on a colonia resident [an] advisory
30-26 committee. The members of the colonia resident advisory committee
30-27 shall be selected from lists of candidates submitted to the
31-1 department by local nonprofit organizations and the commissioners
31-2 court of a county in which a self-help center is located.
31-3 (b) The department shall appoint one committee member to
31-4 represent each of the counties in which self-help centers are
31-5 located. Each committee member:
31-6 (1) must be a resident of a colonia in the county the
31-7 member represents; and
31-8 (2) may not be a board member, contractor, or employee
31-9 of or have any ownership interest in an entity that is awarded a
31-10 contract under this subchapter.
31-11 Sec. 2306.585. DUTIES OF ADVISORY COMMITTEE. (a) The
31-12 colonia resident advisory committee shall advise the department
31-13 regarding:
31-14 (1) the needs of colonia residents;
31-15 (2) appropriate and effective programs that are
31-16 proposed or are operated through the self-help centers; and
31-17 (3) activities that may be undertaken through the
31-18 self-help centers to better serve the needs of colonia residents.
31-19 (b) The colonia resident advisory committee shall meet
31-20 before the 30th day preceding the date on which a contract is
31-21 scheduled to be awarded for the operation of a self-help center and
31-22 may meet at other times.
31-23 Sec. 2306.590. COLONIA INITIATIVES ADVISORY COMMITTEE. (a)
31-24 The department shall establish a colonia initiatives advisory
31-25 committee that is composed of the following members appointed by
31-26 the department:
31-27 (1) one member who resides in a colonia;
32-1 (2) one member who represents a nonprofit organization
32-2 that provides assistance to colonia residents;
32-3 (3) one member who represents a local political
32-4 subdivision containing all or part of a colonia;
32-5 (4) one member who represents private interests in
32-6 banking or land development; and
32-7 (5) one member who represents the public.
32-8 (b) Each member of the colonia initiatives advisory
32-9 committee other than the public member must reside within 100 miles
32-10 of the international border of this state.
32-11 (c) The colonia initiatives advisory committee shall:
32-12 (1) review public comments regarding the colonia needs
32-13 assessment incorporated into the state low income housing plan
32-14 under Section 2306.0721; and
32-15 (2) based on those public comments, recommend to the
32-16 department new colonia programs or improvements to existing colonia
32-17 programs.
32-18 Sec. 2306.591. BIENNIAL ACTION PLAN. (a) The office
32-19 established by the department to promote initiatives for colonias
32-20 shall prepare a biennial action plan addressing policy goals for
32-21 colonia programs, strategies to meet the policy goals, and the
32-22 projected outcomes with respect to those policy goals.
32-23 (b) The office shall solicit public comments regarding the
32-24 plan at a public hearing. At least six weeks before the public
32-25 hearing, the office shall prepare and publish an initial draft of
32-26 the plan. The office must publish a final plan that lists any
32-27 changes made to the draft based on public comments regarding the
33-1 initial draft of the plan and that directly addresses those
33-2 comments.
33-3 (c) The office shall send the final plan to the colonia
33-4 initiatives advisory committee for review and comment. After
33-5 receiving comments, the office shall send the plan to the board for
33-6 final approval, with the comments of the colonia initiatives
33-7 advisory committee attached to the plan.
33-8 SECTION 25. Section 2306.589(c), Government Code, is amended
33-9 to read as follows:
33-10 (c) The department may use money in the colonia set-aside
33-11 fund for specific activities that assist colonias, including:
33-12 (1) the operation and activities of the self-help
33-13 centers established under this subchapter;
33-14 (2) reimbursement of colonia resident advisory
33-15 committee members and colonia initiatives advisory committee
33-16 members for their reasonable expenses in the manner provided by
33-17 Chapter 2110 [Article 6252-33, Revised Statutes,] or the General
33-18 Appropriations Act; and
33-19 (3) funding for the provision of water and sewer
33-20 service connections in accordance with Subsection (b).
33-21 SECTION 26. Subchapter AA, Chapter 2306, Government Code, is
33-22 amended to read as follows:
33-23 SUBCHAPTER AA. MANUFACTURED HOUSING DIVISION
33-24 Sec. 2306.6001 [2306.601]. DEFINITIONS. In this subchapter:
33-25 (1) "Division" means the manufactured housing
33-26 division.
33-27 (2) "Division director" means the executive director
34-1 of the division.
34-2 (3) "Manufactured Housing Board" means the governing
34-3 board of the division.
34-4 Sec. 2306.6002. REGULATION AND ENFORCEMENT. The department
34-5 shall administer and enforce the Texas Manufactured Housing
34-6 Standards Act (Article 5221f, Vernon's Texas Civil Statutes)
34-7 through the [manufactured housing] division. The manufactured
34-8 housing board and the division director shall exercise authority
34-9 and responsibilities assigned to them under that Act.
34-10 Sec. 2306.6003. MANUFACTURED HOUSING BOARD. (a) The
34-11 Manufactured Housing Board is an independent entity within the
34-12 department, is administratively attached to the department, and is
34-13 not an advisory body to the department.
34-14 (b) The Manufactured Housing Board shall carry out the
34-15 functions and duties conferred on the Manufactured Housing Board by
34-16 this subchapter and by other law.
34-17 Sec. 2306.6004. MANUFACTURED HOUSING BOARD MEMBERSHIP. (a)
34-18 The Manufactured Housing Board consists of five public members
34-19 appointed by the governor.
34-20 (b) A person is eligible to be appointed as a public member
34-21 of the Manufactured Housing Board if the person is a citizen of the
34-22 United States and a resident of this state.
34-23 (c) A person may not be a member of the Manufactured Housing
34-24 Board if the person or the person's spouse:
34-25 (1) is registered, certified, or licensed by a
34-26 regulatory agency in the field of manufactured housing;
34-27 (2) is employed by or participates in the management
35-1 of a business entity or other organization regulated by or
35-2 receiving money from the division;
35-3 (3) owns or controls, directly or indirectly, more
35-4 than a 10 percent interest in a business entity or other
35-5 organization regulated by or receiving money from the division; or
35-6 (4) uses or receives a substantial amount of tangible
35-7 goods, services, or money from the division other than compensation
35-8 or reimbursement authorized by law for Manufactured Housing Board
35-9 membership, attendance, or expenses.
35-10 (d) Appointments to the Manufactured Housing Board shall be
35-11 made without regard to the race, color, disability, sex, religion,
35-12 age, or national origin of the appointees.
35-13 Sec. 2306.6005. CONFLICT OF INTEREST. (a) In this section,
35-14 "Texas trade association" means a cooperative and voluntarily
35-15 joined association of business or professional competitors in this
35-16 state designed to assist its members and its industry or profession
35-17 in dealing with mutual business or professional problems and in
35-18 promoting their common interest.
35-19 (b) A person may not be a member of the Manufactured Housing
35-20 Board and may not be a division employee employed in a "bona fide
35-21 executive, administrative, or professional capacity," as that
35-22 phrase is used for purposes of establishing an exemption to the
35-23 overtime provisions of the federal Fair Labor Standards Act of 1938
35-24 (29 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
35-25 (1) the person is an officer, employee, or paid
35-26 consultant of a Texas trade association in the field of
35-27 manufactured housing; or
36-1 (2) the person's spouse is an officer, manager, or
36-2 paid consultant of a Texas trade association in the field of
36-3 manufactured housing.
36-4 (c) A person may not be a member of the Manufactured Housing
36-5 Board or act as the general counsel to the Manufactured Housing
36-6 Board or the division if the person is required to register as a
36-7 lobbyist under Chapter 305 because of the person's activities for
36-8 compensation on behalf of a profession related to the operation of
36-9 the division.
36-10 Sec. 2306.6006. TERMS; VACANCY. (a) The members of the
36-11 Manufactured Housing Board serve staggered six-year terms, with the
36-12 terms of one or two members expiring on January 31 of each
36-13 odd-numbered year.
36-14 (b) A person may not serve two consecutive full six-year
36-15 terms as a member of the Manufactured Housing Board.
36-16 (c) If a vacancy occurs during a member's term, the governor
36-17 shall appoint a new member to fill the unexpired term.
36-18 Sec. 2306.6007. PRESIDING OFFICER. The governor shall
36-19 designate a member of the Manufactured Housing Board as the
36-20 presiding officer of the Manufactured Housing Board to serve in
36-21 that capacity at the will of the governor.
36-22 Sec. 2306.6008. GROUNDS FOR REMOVAL. (a) It is a ground for
36-23 removal from the Manufactured Housing Board that a member:
36-24 (1) does not have at the time of taking office the
36-25 qualifications required by Section 2306.6004(b);
36-26 (2) does not maintain during service on the
36-27 Manufactured Housing Board the qualifications required by Section
37-1 2306.6004(b);
37-2 (3) is ineligible for membership under Section
37-3 2306.6004(c) or 2306.6005;
37-4 (4) cannot, because of illness or disability,
37-5 discharge the member's duties for a substantial part of the
37-6 member's term; or
37-7 (5) is absent from more than half of the regularly
37-8 scheduled Manufactured Housing Board meetings that the member is
37-9 eligible to attend during a calendar year without an excuse
37-10 approved by a majority vote of the Manufactured Housing Board.
37-11 (b) The validity of an action of the Manufactured Housing
37-12 Board is not affected by the fact that it is taken when a ground
37-13 for removal of a Manufactured Housing Board member exists.
37-14 (c) If the division director has knowledge that a potential
37-15 ground for removal exists, the division director shall notify the
37-16 presiding officer of the Manufactured Housing Board of the
37-17 potential ground. The presiding officer shall then notify the
37-18 governor and the attorney general that a potential ground for
37-19 removal exists. If the potential ground for removal involves the
37-20 presiding officer, the division director shall notify the next
37-21 highest ranking officer of the Manufactured Housing Board, who
37-22 shall then notify the governor and the attorney general that a
37-23 potential ground for removal exists.
37-24 Sec. 2306.6009. PER DIEM; REIMBURSEMENT. (a) Each member of
37-25 the Manufactured Housing Board is entitled to a per diem as set by
37-26 legislative appropriation for each day that the member engages in
37-27 the business of the Manufactured Housing Board.
38-1 (b) A Manufactured Housing Board member may be reimbursed
38-2 for actual travel expenses, including expenses for meals, lodging,
38-3 and transportation. A Manufactured Housing Board member is
38-4 entitled to reimbursement for transportation expenses as provided
38-5 by the General Appropriations Act.
38-6 (c) At the time a Manufactured Housing Board member applies
38-7 for reimbursement under this section, the member shall make a sworn
38-8 statement of the number of days the member engaged in the business
38-9 of the Manufactured Housing Board and the amount of the member's
38-10 expenses.
38-11 Sec. 2306.6010. MEETINGS. (a) The Manufactured Housing
38-12 Board shall have regular meetings as the majority of the members
38-13 may specify and special meetings at the request of the presiding
38-14 officer, any two members, or the division director.
38-15 (b) Reasonable notice of all meetings shall be given as
38-16 prescribed by Manufactured Housing Board rules.
38-17 (c) The presiding officer shall preside at all meetings of
38-18 the Manufactured Housing Board. In the absence of the presiding
38-19 officer, the members present shall select one of the members to
38-20 preside at the meeting.
38-21 Sec. 2306.6011. TRAINING. (a) A person who is appointed to
38-22 and qualifies for office as a member of the Manufactured Housing
38-23 Board may not vote, deliberate, or be counted as a member in
38-24 attendance at a meeting of the Manufactured Housing Board until the
38-25 person completes a training program that complies with this
38-26 section.
38-27 (b) The training program must provide the person with
39-1 information regarding:
39-2 (1) the legislation that created the division and the
39-3 Manufactured Housing Board;
39-4 (2) the programs operated by the division;
39-5 (3) the role and functions of the division;
39-6 (4) the rules of the division, with an emphasis on the
39-7 rules that relate to disciplinary and investigatory authority;
39-8 (5) the current budget for the division;
39-9 (6) the results of the most recent formal audit of the
39-10 division;
39-11 (7) the requirements of:
39-12 (A) the open meetings law, Chapter 551;
39-13 (B) the public information law, Chapter 552;
39-14 (C) the administrative procedure law, Chapter
39-15 2001; and
39-16 (D) other laws relating to public officials,
39-17 including conflict-of-interest laws; and
39-18 (8) any applicable ethics policies adopted by the
39-19 division or the Texas Ethics Commission.
39-20 (c) A person appointed to the Manufactured Housing Board is
39-21 entitled to reimbursement, as provided by the General
39-22 Appropriations Act, for the travel expenses incurred in attending
39-23 the training program regardless of whether the attendance at the
39-24 program occurs before or after the person qualifies for office.
39-25 Sec. 2306.6012. APPROPRIATIONS; DONATIONS. (a) The
39-26 legislature shall separately appropriate money to the Manufactured
39-27 Housing Board within the appropriations to the department for all
40-1 matters relating to the operation of the division.
40-2 (b) The Manufactured Housing Board may accept gifts and
40-3 grants of money or property under this subchapter and shall spend
40-4 the money and use the property for the purpose for which the
40-5 donation was made, except that the expenditure of money or use of
40-6 property must promote the acceptance of HUD-Code manufactured homes
40-7 as a viable source of housing for very low, low, and moderate
40-8 income families.
40-9 Sec. 2306.6013. BUDGET; SHARING OF DEPARTMENT PERSONNEL,
40-10 EQUIPMENT, AND FACILITIES. (a) The Manufactured Housing Board
40-11 shall develop a budget for the operations of the department
40-12 relating to the division.
40-13 (b) The Manufactured Housing Board shall reduce
40-14 administrative costs by entering into an agreement with the
40-15 department to enable the sharing of department personnel,
40-16 equipment, and facilities.
40-17 Sec. 2306.6014. DIVISION DIRECTOR. (a) The Manufactured
40-18 Housing Board shall employ the division director. The division
40-19 director is the Manufactured Housing Board's chief executive and
40-20 administrative officer.
40-21 (b) The division director is charged with administering,
40-22 enforcing, and carrying out the functions and duties conferred on
40-23 the division director by this subchapter and by other law.
40-24 (c) The division director serves at the pleasure of the
40-25 Manufactured Housing Board.
40-26 Sec. 2306.6015 [2306.602]. PERSONNEL. The division director
40-27 may employ staff as necessary to perform the work of the
41-1 [manufactured housing] division and may prescribe their duties and
41-2 compensation. Subject to applicable personnel policies and
41-3 regulations, the division director may remove any division
41-4 employee.
41-5 Sec. 2306.6016. SEPARATION OF RESPONSIBILITIES. The
41-6 Manufactured Housing Board shall develop and implement policies
41-7 that clearly separate the policy-making responsibilities of the
41-8 Manufactured Housing Board and the management responsibilities of
41-9 the division director and staff of the division.
41-10 Sec. 2306.6017. STANDARDS OF CONDUCT. The division director
41-11 or the division director's designee shall provide to members of the
41-12 Manufactured Housing Board and to division employees, as often as
41-13 necessary, information regarding the requirements for office or
41-14 employment under this subchapter, including information regarding a
41-15 person's responsibilities under applicable laws relating to
41-16 standards of conduct for state officers or employees.
41-17 Sec. 2306.6018. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
41-18 division director or the division director's designee shall prepare
41-19 and maintain a written policy statement that implements a program
41-20 of equal employment opportunity to ensure that all personnel
41-21 decisions are made without regard to race, color, disability, sex,
41-22 religion, age, or national origin.
41-23 (b) The policy statement must include:
41-24 (1) personnel policies, including policies relating to
41-25 recruitment, evaluation, selection, training, and promotion of
41-26 personnel, that show the intent of the division to avoid the
41-27 unlawful employment practices described by Chapter 21, Labor Code;
42-1 and
42-2 (2) an analysis of the extent to which the composition
42-3 of the division's personnel is in accordance with state and federal
42-4 law and a description of reasonable methods to achieve compliance
42-5 with state and federal law.
42-6 (c) The policy statement must:
42-7 (1) be updated annually;
42-8 (2) be reviewed by the state Commission on Human
42-9 Rights for compliance with Subsection (b)(1); and
42-10 (3) be filed with the governor's office.
42-11 Sec. 2306.6019. STATE EMPLOYEE INCENTIVE PROGRAM. The
42-12 division director or the division director's designee shall provide
42-13 to division employees information and training on the benefits and
42-14 methods of participation in the state employee incentive program
42-15 under Subchapter B, Chapter 2108.
42-16 Sec. 2306.6020 [2306.603]. RULES. (a) The Manufactured
42-17 Housing Board [director] shall adopt rules as necessary to
42-18 implement this subchapter and to administer and enforce the
42-19 manufactured housing program through the [manufactured housing]
42-20 division. Rules adopted by the Manufactured Housing Board
42-21 [director] are subject to Chapter 2001[, Government Code].
42-22 (b) The Manufactured Housing Board [director] may not adopt
42-23 rules restricting competitive bidding or advertising by a person
42-24 regulated by the division except to prohibit false, misleading, or
42-25 deceptive practices by that person.
42-26 (c) The Manufactured Housing Board [director] may not
42-27 include in the rules to prohibit false, misleading, or deceptive
43-1 practices by a person regulated by the division a rule that:
43-2 (1) restricts the use of any advertising medium;
43-3 (2) restricts the person's personal appearance or the
43-4 use of the person's voice in an advertisement;
43-5 (3) relates to the size or duration of an
43-6 advertisement used by the person; or
43-7 (4) restricts the use of a trade name in advertising
43-8 by the person.
43-9 Sec. 2306.6021. PUBLIC PARTICIPATION. The Manufactured
43-10 Housing Board shall develop and implement policies that provide the
43-11 public with a reasonable opportunity to appear before the
43-12 Manufactured Housing Board and to speak on any issue under the
43-13 jurisdiction of the division.
43-14 Sec. 2306.6022. COMPLAINTS. (a) The division shall maintain
43-15 a file on each written complaint filed with the division. The file
43-16 must include:
43-17 (1) the name of the person who filed the complaint;
43-18 (2) the date the complaint is received by the
43-19 division;
43-20 (3) the subject matter of the complaint;
43-21 (4) the name of each person contacted in relation to
43-22 the complaint;
43-23 (5) a summary of the results of the review or
43-24 investigation of the complaint; and
43-25 (6) an explanation of the reason the file was closed,
43-26 if the division closed the file without taking action other than to
43-27 investigate the complaint.
44-1 (b) The division shall provide to the person filing the
44-2 complaint and to each person who is a subject of the complaint a
44-3 copy of the division's policies and procedures relating to
44-4 complaint investigation and resolution.
44-5 (c) The division, at least quarterly until final disposition
44-6 of the complaint, shall notify the person filing the complaint and
44-7 each person who is a subject of the complaint of the status of the
44-8 investigation unless the notice would jeopardize an undercover
44-9 investigation.
44-10 Sec. 2306.6023 [2306.604]. SANCTIONS AND PENALTIES. (a) The
44-11 Manufactured Housing Board [director] shall adopt rules relating to
44-12 the administrative sanctions that may be enforced against a person
44-13 regulated by the [manufactured housing] division. If the person
44-14 violates a law relating to the regulation of manufactured housing
44-15 or a rule or order adopted or issued by the Manufactured Housing
44-16 Board [director] relating to the program, the division director
44-17 may:
44-18 (1) issue a written reprimand to the person that
44-19 specifies the violation;
44-20 (2) revoke or suspend the person's certificate of
44-21 registration; or
44-22 (3) place on probation a person whose certificate of
44-23 registration has been suspended.
44-24 (b) In addition to or in lieu of a sanction imposed under
44-25 Subsection (a) of this section, the Manufactured Housing Board
44-26 [board] may assess an administrative penalty in an amount not to
44-27 exceed $1,000 for each violation.
45-1 (c) If a suspension is probated, the division director may
45-2 require the person to report regularly to the division director on
45-3 matters that are the basis of the probation.
45-4 (d) If the division director proposes to suspend or revoke a
45-5 certificate of registration or the division director proposes to
45-6 assess an administrative penalty against a person regulated by the
45-7 division, the person is entitled to a hearing before a hearings
45-8 officer appointed by the division director. The Manufactured
45-9 Housing Board [director] by rule shall prescribe the procedures by
45-10 which a decision to suspend or revoke a certificate of registration
45-11 or to assess an administrative penalty are made and are appealable.
45-12 (e) In determining the amount of an administrative penalty
45-13 assessed under this section, the Manufactured Housing Board [board]
45-14 shall consider:
45-15 (1) the seriousness of the violation;
45-16 (2) the history of previous violations;
45-17 (3) the amount necessary to deter future violations;
45-18 (4) efforts made to correct the violation; and
45-19 (5) any other matters that justice may require.
45-20 (f) If, after investigation of a possible violation and the
45-21 facts surrounding that possible violation, the division director
45-22 determines that a violation has occurred, the division director
45-23 shall issue a preliminary report stating the facts on which the
45-24 conclusion that a violation occurred is based, recommending that an
45-25 administrative penalty under this section be imposed on the person
45-26 charged, and recommending the amount of that proposed penalty. The
45-27 division director shall base the recommended amount of the proposed
46-1 penalty on the seriousness of the violation determined by
46-2 consideration of the factors set forth in Subsection (e) [of this
46-3 section].
46-4 (g) Not later than the 14th day after the date on which the
46-5 preliminary report is issued, the division director shall give
46-6 written notice of the violation to the person charged. The notice
46-7 shall include:
46-8 (1) a brief summary of the charges;
46-9 (2) a statement of the amount of the penalty
46-10 recommended; and
46-11 (3) a statement of the right of the person charged to
46-12 a hearing on the occurrence of the violation, the amount of the
46-13 penalty, or both the occurrence of the violation and the amount of
46-14 the penalty.
46-15 (h) Not later than the 20th day after the date on which the
46-16 notice is received, the person charged may accept the determination
46-17 of the division director made under Subsection (f) [of this
46-18 section], including the recommended penalty, or make a written
46-19 request for a hearing on that determination.
46-20 (i) If the person charged with the violation accepts the
46-21 determination of the division director, the division director shall
46-22 issue an order approving the determination and ordering that the
46-23 person pay the recommended penalty.
46-24 (j) If the person charged fails to respond in a timely
46-25 manner to the notice or if the person requests a hearing, the
46-26 division director shall set a hearing, give written notice of the
46-27 hearing to the person, and designate a hearings examiner to conduct
47-1 the hearing. The hearings examiner shall make findings of fact and
47-2 conclusions of law and shall promptly issue to the Manufactured
47-3 Housing Board [board] a proposal for decision as to the occurrence
47-4 of the violation and a recommendation as to the amount of the
47-5 proposed penalty if a penalty is determined to be warranted. Based
47-6 on the findings of fact and conclusions of law and the
47-7 recommendations of the hearings examiner, the Manufactured Housing
47-8 Board [board] by order may find that a violation has occurred and
47-9 may assess a penalty, or may find that no violation has occurred.
47-10 (k) The division director shall give notice of the
47-11 Manufactured Housing Board's [board's] order to the person charged.
47-12 The notice must include:
47-13 (1) separate statements of the findings of fact and
47-14 conclusions of law;
47-15 (2) the amount of any penalty assessed;
47-16 (3) a statement of the right of the person charged to
47-17 judicial review of the Manufactured Housing Board's [commission's]
47-18 order; and
47-19 (4) any other information required by law.
47-20 (l) Not later than the 30th day after the date on which the
47-21 decision is final, the person charged shall:
47-22 (1) pay the penalty in full; or
47-23 (2) if the person files a petition for judicial review
47-24 contesting the fact of the violation, the amount of the penalty, or
47-25 both the fact of the violation and the amount of the penalty:
47-26 (A) forward the amount assessed to the division
47-27 [department] for deposit in an escrow account;
48-1 (B) in lieu of payment into escrow, post with
48-2 the division [department] a supersedeas bond for the amount of the
48-3 penalty, in a form approved by the division director and effective
48-4 until judicial review of the decision is final; or
48-5 (C) without paying the amount of the penalty or
48-6 posting the supersedeas bond, pursue the judicial review.
48-7 (m) A person charged with a penalty who is financially
48-8 unable to comply with Subsection (l)(2) [of this section] is
48-9 entitled to judicial review if the person files with the court, as
48-10 part of the person's petition for judicial review, a sworn
48-11 statement that the person is unable to meet the requirements of
48-12 that subsection.
48-13 (n) If the person charged does not pay the penalty and does
48-14 not pursue judicial review, the division [department] or the
48-15 attorney general may bring an action for the collection of the
48-16 penalty.
48-17 (o) Judicial review of the order of the Manufactured Housing
48-18 Board [board] assessing the penalty is subject to the substantial
48-19 evidence rule and shall be instituted by filing a petition with a
48-20 Travis County district court.
48-21 (p) If, after judicial review, the penalty is reduced or not
48-22 assessed, the division director shall remit to the person charged
48-23 the appropriate amount, plus accrued interest if the penalty has
48-24 been paid, or shall execute a release of the bond if a supersedeas
48-25 bond has been posted. The accrued interest on amounts remitted by
48-26 the division director under this subsection shall be paid at a rate
48-27 equal to the rate charged on loans to depository institutions by
49-1 the New York Federal Reserve Bank, and shall be paid for the period
49-2 beginning on the date that the assessed penalty is paid to the
49-3 division director and ending on the date the penalty is remitted.
49-4 (q) A penalty collected under this section shall be
49-5 deposited in the state treasury to the credit of the general
49-6 revenue fund.
49-7 (r) All proceedings conducted under this section and any
49-8 review or appeal of those proceedings are subject to Chapter 2001[,
49-9 Government Code].
49-10 (s) If it appears that a person is in violation of, or is
49-11 threatening to violate, any provision of the Texas Manufactured
49-12 Housing Standards Act (Article 5221f, Vernon's Texas Civil
49-13 Statutes), or a rule or order related to the administration and
49-14 enforcement of the manufactured housing program, the attorney
49-15 general or the division director may institute an action for
49-16 injunctive relief to restrain the person from continuing the
49-17 violation and for civil penalties not to exceed $1,000 for each
49-18 violation and not exceeding $250,000 in the aggregate. A civil
49-19 action filed under this subsection shall be filed in district court
49-20 in Travis County. The attorney general and the division director
49-21 may recover reasonable expenses incurred in obtaining injunctive
49-22 relief under this subsection, including court costs, reasonable
49-23 attorney's fees, investigative costs, witness fees, and deposition
49-24 expenses.
49-25 [Sec. 2306.605. ACCEPTANCE OF DONATIONS. The department may
49-26 accept gifts and grants of money or property under this chapter and
49-27 shall spend the money and use the property for the purpose for
50-1 which the donation was made, except that the expenditure of money
50-2 or use of property must promote the acceptance of HUD-Code
50-3 manufactured homes as a viable source of housing for very low, low,
50-4 and moderate income families.]
50-5 SECTION 27. Subchapter DD, Chapter 2306, Government Code, is
50-6 amended by amending Sections 2306.672 and 2306.675 and adding
50-7 Sections 2306.6741, 2306.6751, and 2306.6761 to read as follows:
50-8 Sec. 2306.672. SCORING OF APPLICATIONS. (a) The goal of the
50-9 low income housing tax credit program is to provide permanent
50-10 affordable housing. In allocating low income housing tax credits,
50-11 the department shall score each application using a point system
50-12 based on criteria adopted by the department that are consistent
50-13 with the department's housing goals, including criteria addressing:
50-14 (1) an applicant's willingness to minimize profits
50-15 with respect to the proposed project; and
50-16 (2) the ability of the proposed project to:
50-17 (A) provide quality social support services to
50-18 residents;
50-19 (B) demonstrate community and neighborhood
50-20 support;
50-21 (C) serve individuals and families of extremely
50-22 low income;
50-23 (D) serve traditionally underserved areas;
50-24 (E) leverage state and federal resources,
50-25 including federal HOPE VI grants received through the United States
50-26 Department of Housing and Urban Development; and
50-27 (F) provide for extended or perpetual
51-1 affordability periods.
51-2 (b) The department shall publish in the qualified allocation
51-3 plan any discretionary factor that the department will consider in
51-4 scoring an application.
51-5 (c) [(b)] If an applicant meets the department's scoring and
51-6 underwriting criteria, the department shall add:
51-7 (1) five bonus points to the applicant's score if the
51-8 applicant agrees to provide to a qualified nonprofit organization
51-9 or tenant organization a right of first refusal to purchase the
51-10 property to which the tax credit applies at the minimum price
51-11 provided in, and in accordance with the requirements of, Section
51-12 42(i)(7), Internal Revenue Code of 1986 (26 U.S.C. Section
51-13 42(i)(7)); and
51-14 (2) two bonus points to the applicant's score if the
51-15 application is received within the first 10 days of the application
51-16 acceptance period.
51-17 (d) [(c)] The department shall provide the score of each
51-18 application on each criterion to the board and the governor. The
51-19 results of the scoring shall be available to the public.
51-20 (e) On [(d) Upon] awarding tax credit allocations, the
51-21 board shall document the reasons for each project's selection,
51-22 including an explanation of:
51-23 (1) all discretionary factors used in making its
51-24 determination; and
51-25 (2) the reasons for any decision that conflicts with
51-26 the recommendations of department staff under Section 2306.675.
51-27 (f) For each scoring criterion, the department shall use a
52-1 range of points to evaluate the degree to which a proposed project
52-2 satisfies the criterion. The department may not award a number of
52-3 points for a scoring criterion that is disproportionate to the
52-4 degree to which a proposed project complies with that criterion.
52-5 Sec. 2306.6741. DEPARTMENT POLICY AND PROCEDURES REGARDING
52-6 RECIPIENTS OF CERTAIN FEDERAL HOUSING ASSISTANCE. (a) The
52-7 department shall adopt a policy regarding the admittance to low
52-8 income housing tax credit properties of income-eligible individuals
52-9 and families receiving assistance under Section 8, United States
52-10 Housing Act of 1937 (42 U.S.C. Section 1437f).
52-11 (b) The policy must provide a reasonable minimum income
52-12 standard to be used by recipients of low income housing tax credits
52-13 and shall place reasonable limits on the use of any other factors
52-14 that frequently impede the admittance of individuals and families
52-15 described by Subsection (a) to low income housing tax credit
52-16 properties, including credit histories, security deposits, and
52-17 employment histories.
52-18 (c) The department shall establish procedures to monitor low
52-19 income housing tax credit properties that frequently refuse to
52-20 admit individuals and families described by Subsection (a). The
52-21 department shall establish enforcement mechanisms with respect to
52-22 those properties, including a range of sanctions to be imposed
52-23 against the owners of those properties.
52-24 Sec. 2306.675. ALLOCATION OF LOW INCOME HOUSING TAX CREDIT.
52-25 (a) Department staff shall provide written, documented
52-26 recommendations to the board concerning the financial or
52-27 programmatic viability of each application for a low income housing
53-1 tax credit before the board makes a decision relating to the
53-2 allocation of tax credits. The board may not make without good
53-3 cause an allocation decision that conflicts with the
53-4 recommendations of department staff.
53-5 (b) Not later than the deadline specified in Section
53-6 2306.671(e), the board shall issue a commitment for tax credits
53-7 available to the department. Concurrently with the issuance of a
53-8 commitment for initial tax credits, the board shall establish a
53-9 waiting list of additional applications, ranked in descending order
53-10 of priority, to be issued a commitment for tax credits if
53-11 additional credits become available.
53-12 (c) The board must reevaluate a project that undergoes a
53-13 substantial change between the time of initial board approval and
53-14 the time of issuance of a tax credit commitment for the project to
53-15 determine if approval should be withdrawn.
53-16 Sec. 2306.6751. LIMITATION ON ALLOCATION. For any three-year
53-17 period, the department may not award more than $2.4 million in low
53-18 income housing tax credits to a single developer and other
53-19 principals associated with the developer's project.
53-20 Sec. 2306.6761. QUALIFIED NONPROFIT ORGANIZATION. (a) A
53-21 qualified nonprofit organization may compete in any low income
53-22 housing tax credit allocation pool, including:
53-23 (1) the nonprofit allocation pool;
53-24 (2) the rural projects/prison communities allocation
53-25 pool; and
53-26 (3) the general projects allocation pool.
53-27 (b) A qualified nonprofit organization submitting an
54-1 application under this subchapter must have a controlling interest
54-2 in the project proposed to be financed with a low income housing
54-3 tax credit.
54-4 SECTION 28. Sections 2306.673(a) and (c), Government Code,
54-5 are amended to read as follows:
54-6 (a) Not later than two years before the expiration of the
54-7 compliance period, a recipient of a low income housing tax credit
54-8 who agreed to provide a right of first refusal under Section
54-9 2306.672(c)(1) [2306.672(b)(1)] and who intends to sell the
54-10 property shall notify the department of the recipient's intent to
54-11 sell. The recipient shall notify qualified nonprofit organizations
54-12 and tenant organizations of the opportunity to purchase the
54-13 property.
54-14 (c) Notwithstanding an agreement under Section
54-15 2306.672(c)(1) [2306.672(b)(1)], a recipient of a low income
54-16 housing tax credit may sell property to which the tax credit
54-17 applies to any purchaser after the expiration of the compliance
54-18 period if a qualified nonprofit organization or tenant organization
54-19 does not offer to purchase the property at the minimum price
54-20 provided by Section 42(i)(7), Internal Revenue Code of 1986 (26
54-21 U.S.C. Section 42(i)(7)), and the department declines to purchase
54-22 the property.
54-23 SECTION 29. Subtitle F, Title 4, Government Code, is amended
54-24 by adding Chapter 487 to read as follows:
54-25 CHAPTER 487. OFFICE OF RURAL COMMUNITY AFFAIRS
54-26 SUBCHAPTER A. GENERAL PROVISIONS
54-27 Sec. 487.001. DEFINITIONS. In this chapter:
55-1 (1) "Executive committee" means the executive
55-2 committee of the Office of Rural Community Affairs.
55-3 (2) "Office" means the Office of Rural Community
55-4 Affairs.
55-5 (Sections 487.002-487.020 reserved for expansion)
55-6 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
55-7 Sec. 487.021. EXECUTIVE COMMITTEE. (a) The executive
55-8 committee is the governing body of the office.
55-9 (b) The executive committee is composed of the following
55-10 nine members:
55-11 (1) three members appointed by the governor;
55-12 (2) three members appointed by the lieutenant
55-13 governor; and
55-14 (3) three members appointed by the governor based on a
55-15 list of eligible candidates submitted to the governor by the
55-16 speaker of the house of representatives.
55-17 (c) At least two persons appointed by the governor, by the
55-18 lieutenant governor, and by the governor based on the list
55-19 submitted by the speaker of the house of representatives must
55-20 possess a strong understanding of and commitment to rural interests
55-21 based on the individual's personal history, including residency,
55-22 occupation, and civic activities.
55-23 (d) Appointments to the executive committee shall be made
55-24 without regard to the race, color, disability, sex, religion, age,
55-25 or national origin of the appointees.
55-26 (e) The members of the executive committee serve for
55-27 staggered six-year terms, with the terms of three members expiring
56-1 February 1 of each odd-numbered year.
56-2 (f) Executive committee members receive no compensation but
56-3 are entitled to reimbursement of actual and necessary expenses
56-4 incurred in the performance of their duties.
56-5 (g) The members of the executive committee annually shall
56-6 elect a presiding officer from among the members of the executive
56-7 committee.
56-8 Sec. 487.022. CONFLICTS OF INTEREST. (a) In this section,
56-9 "Texas trade association" means a cooperative and voluntarily
56-10 joined association of business or professional competitors in this
56-11 state designed to assist its members and its industry or profession
56-12 in dealing with mutual business or professional problems and in
56-13 promoting their common interest.
56-14 (b) A person may not be a member of the executive committee
56-15 and may not be an office employee employed in a "bona fide
56-16 executive, administrative, or professional capacity," as that
56-17 phrase is used for purposes of establishing an exemption to the
56-18 overtime provisions of the federal Fair Labor Standards Act of 1938
56-19 (29 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
56-20 (1) the person is an officer, employee, or paid
56-21 consultant of a Texas trade association in the field of rural
56-22 affairs; or
56-23 (2) the person's spouse is an officer, manager, or
56-24 paid consultant of a Texas trade association in the field of rural
56-25 affairs.
56-26 (c) A person may not be a member of the executive committee
56-27 or act as the general counsel to the executive committee or the
57-1 office if the person is required to register as a lobbyist under
57-2 Chapter 305 because of the person's activities for compensation on
57-3 behalf of a profession related to the operation of the office.
57-4 Sec. 487.023. TRAINING FOR MEMBERS OF EXECUTIVE COMMITTEE.
57-5 (a) A person who is appointed to and qualifies for office as a
57-6 member of the executive committee may not vote, deliberate, or be
57-7 counted as a member in attendance at a meeting of the executive
57-8 committee until the person completes a training program that
57-9 complies with this section.
57-10 (b) The training program must provide the person with
57-11 information regarding:
57-12 (1) the legislation that created the office and the
57-13 executive committee;
57-14 (2) the programs operated by the office;
57-15 (3) the role and functions of the office;
57-16 (4) the rules of the office, with an emphasis on any
57-17 rules that relate to disciplinary and investigatory authority;
57-18 (5) the current budget for the office;
57-19 (6) the results of the most recent formal audit of the
57-20 office;
57-21 (7) the requirements of:
57-22 (A) the open meetings law, Chapter 551;
57-23 (B) the public information law, Chapter 552;
57-24 (C) the administrative procedure law, Chapter
57-25 2001; and
57-26 (D) other laws relating to public officials,
57-27 including conflict-of-interest laws; and
58-1 (8) any applicable ethics policies adopted by the
58-2 executive committee or the Texas Ethics Commission.
58-3 (c) A person appointed to the executive committee is
58-4 entitled to reimbursement, as provided by general law and the
58-5 General Appropriations Act, for the travel expenses incurred in
58-6 attending the training program regardless of whether the attendance
58-7 at the program occurs before or after the person qualifies for
58-8 office.
58-9 Sec. 487.024. REMOVAL. (a) It is a ground for removal from
58-10 the executive committee that a member:
58-11 (1) does not have at the time of taking office the
58-12 qualifications required by Section 487.021;
58-13 (2) does not maintain during service on the executive
58-14 committee the qualifications required by Section 487.021;
58-15 (3) is ineligible for membership under Section
58-16 487.022;
58-17 (4) cannot, because of illness or disability,
58-18 discharge the member's duties for a substantial part of the
58-19 member's term; or
58-20 (5) is absent from more than half of the regularly
58-21 scheduled executive committee meetings that the member is eligible
58-22 to attend during a calendar year without an excuse approved by a
58-23 majority vote of the executive committee.
58-24 (b) The validity of an action of the executive committee is
58-25 not affected by the fact that it is taken when a ground for removal
58-26 of an executive committee member exists.
58-27 (c) If the executive director has knowledge that a potential
59-1 ground for removal exists, the executive director shall notify the
59-2 presiding officer of the executive committee of the potential
59-3 ground. The presiding officer shall then notify the governor and
59-4 the attorney general that a potential ground for removal exists. If
59-5 the potential ground for removal involves the presiding officer,
59-6 the executive director shall notify the next highest ranking
59-7 officer of the executive committee, who shall then notify the
59-8 governor and the attorney general that a potential ground for
59-9 removal exists.
59-10 Sec. 487.025. DIVISION OF RESPONSIBILITY. The executive
59-11 committee shall develop and implement policies that clearly
59-12 separate the policy-making responsibilities of the executive
59-13 committee and the management responsibilities of the executive
59-14 director and staff of the office.
59-15 Sec. 487.026. EXECUTIVE DIRECTOR. (a) The executive
59-16 committee may hire an executive director to serve as the chief
59-17 executive officer of the office and to perform the administrative
59-18 duties of the office.
59-19 (b) The executive director serves at the will of the
59-20 executive committee.
59-21 (c) The executive director may hire staff within guidelines
59-22 established by the executive committee.
59-23 Sec. 487.027. PUBLIC HEARINGS. The executive committee shall
59-24 develop and implement policies that provide the public with a
59-25 reasonable opportunity to appear before the executive committee and
59-26 to speak on any issue under the jurisdiction of the office.
59-27 Sec. 487.028. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.
60-1 (a) The executive director or the executive director's designee
60-2 shall prepare and maintain a written policy statement that
60-3 implements a program of equal employment opportunity to ensure that
60-4 all personnel decisions are made without regard to race, color,
60-5 disability, sex, religion, age, or national origin.
60-6 (b) The policy statement must include:
60-7 (1) personnel policies, including policies relating to
60-8 recruitment, evaluation, selection, training, and promotion of
60-9 personnel, that show the intent of the office to avoid the unlawful
60-10 employment practices described by Chapter 21, Labor Code; and
60-11 (2) an analysis of the extent to which the composition
60-12 of the office's personnel is in accordance with state and federal
60-13 law and a description of reasonable methods to achieve compliance
60-14 with state and federal law.
60-15 (c) The policy statement must be:
60-16 (1) updated annually;
60-17 (2) reviewed by the state Commission on Human Rights
60-18 for compliance with Subsection (b)(1); and
60-19 (3) filed with the governor's office.
60-20 Sec. 487.029. STANDARDS OF CONDUCT. The executive director
60-21 or the executive director's designee shall provide to members of
60-22 the executive committee and to agency employees, as often as
60-23 necessary, information regarding the requirements for office or
60-24 employment under this chapter, including information regarding a
60-25 person's responsibilities under applicable laws relating to
60-26 standards of conduct for state officers or employees.
60-27 Sec. 487.030. COMPLAINTS. (a) The office shall maintain a
61-1 file on each written complaint filed with the office. The file must
61-2 include:
61-3 (1) the name of the person who filed the complaint;
61-4 (2) the date the complaint is received by the office;
61-5 (3) the subject matter of the complaint;
61-6 (4) the name of each person contacted in relation to
61-7 the complaint;
61-8 (5) a summary of the results of the review or
61-9 investigation of the complaint; and
61-10 (6) an explanation of the reason the file was closed,
61-11 if the office closed the file without taking action other than to
61-12 investigate the complaint.
61-13 (b) The office shall provide to the person filing the
61-14 complaint and to each person who is a subject of the complaint a
61-15 copy of the office's policies and procedures relating to complaint
61-16 investigation and resolution.
61-17 (c) The office, at least quarterly until final disposition
61-18 of the complaint, shall notify the person filing the complaint and
61-19 each person who is a subject of the complaint of the status of the
61-20 investigation unless the notice would jeopardize an undercover
61-21 investigation.
61-22 (Sections 487.031-487.050 reserved for expansion)
61-23 SUBCHAPTER C. GENERAL POWERS AND DUTIES
61-24 Sec. 487.051. POWERS AND DUTIES. (a) The office shall:
61-25 (1) administer the federal community development block
61-26 grant nonentitlement program; and
61-27 (2) promote the economic development and the general
62-1 welfare of rural communities in this state.
62-2 (b) The office may contract with public and private entities
62-3 in the performance of its responsibilities.
62-4 Sec. 487.052. RULES. The executive committee may adopt rules
62-5 as necessary to implement this chapter.
62-6 Sec. 487.053. GIFTS AND GRANTS. (a) The office may accept
62-7 gifts, grants, and donations from any organization for the purpose
62-8 of funding any activity under this chapter.
62-9 (b) All gifts, grants, and donations must be accepted in an
62-10 open meeting by a majority of the voting members of the executive
62-11 committee and reported in the public record of the meeting with the
62-12 name of the donor and purpose of the gift, grant, or donation.
62-13 Sec. 487.054. REPORT TO LEGISLATURE. Not later than January
62-14 1 of each odd-numbered year, the office shall submit a biennial
62-15 report to the legislature regarding the activities of the office
62-16 and any findings and recommendations relating to rural issues.
62-17 SECTION 30. Sections 2306.098, 2306.099, and 2306.100,
62-18 Government Code, are transferred to Chapter 487, Government Code,
62-19 redesignated as Subchapter D, Chapter 487, Government Code, and
62-20 amended to read as follows:
62-21 SUBCHAPTER D. COMMUNITY DEVELOPMENT BLOCK
62-22 GRANT NONENTITLEMENT PROGRAM
62-23 Sec. 487.101 [2306.098]. ADMINISTRATION OF COMMUNITY
62-24 DEVELOPMENT BLOCK GRANT PROGRAM; ALLOCATION OF FUNDS. (a) The
62-25 office [department] shall, under the Omnibus Budget Reconciliation
62-26 Act of 1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I,
62-27 administer the state's allocation of federal funds provided under
63-1 the community development block grant nonentitlement program
63-2 authorized by Title I of the Housing and Community Development Act
63-3 of 1974 (42 U.S.C. Section 5301 et seq.).
63-4 (b) Community development block grant program funds shall be
63-5 allocated to eligible counties and municipalities under office
63-6 [department] rules.
63-7 Sec. 487.102 [2306.099]. TRANSFER OF FEDERAL FUNDS. (a) The
63-8 office [department] may enter into an interagency agreement with
63-9 the Texas Department of Economic Development [Commerce] to
63-10 reimburse the Texas Department of Economic Development [Commerce]
63-11 for providing on behalf of the office [department] marketing,
63-12 underwriting, and any other services on the portion of the federal
63-13 community development block grant funds allocated by the office
63-14 [department] for economic development activities.
63-15 (b) The office [department] shall allocate not more than 20
63-16 percent of the federal funds received by the department to the
63-17 Texas Department of Economic Development [Commerce] to be used for
63-18 economic development activities.
63-19 (c) The office shall monitor the activities undertaken by
63-20 the Texas Department of Economic Development [Commerce] under this
63-21 section [must be monitored by the department].
63-22 Sec. 487.103 [2306.100]. STATE COMMUNITY DEVELOPMENT REVIEW
63-23 COMMITTEE. (a) The state community development review committee is
63-24 composed of 12 members appointed by the governor.
63-25 (b) A committee member must be:
63-26 (1) a member of the governing body of a county or
63-27 municipality eligible for funding under the community development
64-1 block grant program; or
64-2 (2) a county or municipal employee who is a supervisor
64-3 and whose regular duties include involvement in community
64-4 development activities.
64-5 (c) The ratio of county officials serving as committee
64-6 members to all committee members may not exceed the ratio of all
64-7 counties eligible for funding under the community development block
64-8 grant program to all eligible applicants.
64-9 (d) The governor shall designate the presiding officer of
64-10 the committee, who serves at the governor's pleasure.
64-11 (e) Committee members serve two-year terms expiring February
64-12 1 of each odd-numbered year.
64-13 (f) A committee member serves without compensation for
64-14 service on the committee, but is entitled to reimbursement for
64-15 reasonable and necessary expenses incurred in performing the
64-16 member's duties.
64-17 (g) Service on the committee by an officer or employee of a
64-18 county or municipality is an additional duty of the individual's
64-19 office or employment and is not dual office holding.
64-20 (h) The committee shall meet at least twice annually at the
64-21 executive director's call.
64-22 (i) The committee shall:
64-23 (1) consult with and advise the executive director on
64-24 the administration and enforcement of the community development
64-25 block grant program; and
64-26 (2) review funding applications of eligible counties
64-27 and municipalities and advise and assist the executive director
65-1 regarding the allocation of program funds to those applicants.
65-2 (j) The committee may annually recommend to the executive
65-3 director a formula for allocating funds to each geographic state
65-4 planning region established by the governor under Chapter 391,
65-5 Local Government Code. The formula must give preference to regions
65-6 according to the regions' needs.
65-7 SECTION 31. Section 531.0312, Government Code, is amended by
65-8 adding Subsection (d) to read as follows:
65-9 (d) The Texas Department of Housing and Community Affairs
65-10 shall provide the Texas Information and Referral Network with
65-11 information regarding the department's housing and community
65-12 affairs programs for inclusion in the statewide information and
65-13 referral network. The department shall provide the information in
65-14 a form determined by the commissioner and shall update the
65-15 information at least quarterly.
65-16 SECTION 32. Section 1372.023, Government Code, is amended to
65-17 read as follows:
65-18 Sec. 1372.023. DEDICATION OF PORTIONS [PORTION] OF STATE
65-19 CEILING TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. (a)
65-20 Until August 25, of that portion of the state ceiling that is
65-21 available exclusively for reservations by issuers of qualified
65-22 mortgage bonds, one-third is available exclusively to the Texas
65-23 Department of Housing and Community Affairs for the purpose of
65-24 issuing qualified mortgage bonds.
65-25 (b) Until August 25, of that portion of the state ceiling
65-26 that is available exclusively for reservations by issuers of
65-27 qualified residential rental project bonds, an amount to be
66-1 determined by the board is available exclusively to the Texas
66-2 Department of Housing and Community Affairs for the purpose of
66-3 issuing qualified residential rental project bonds.
66-4 (c) The Texas Department of Housing and Community Affairs
66-5 may not reserve a portion of the state ceiling that is available
66-6 exclusively for reservations by issuers of qualified residential
66-7 rental project bonds other than the portion dedicated to the
66-8 department under Subsection (b).
66-9 SECTION 33. Section 1372.025(b), Government Code, is amended
66-10 to read as follows:
66-11 (b) Subsection (a) does not apply to qualified mortgage
66-12 bonds or qualified residential rental project bonds made available
66-13 exclusively to the Texas Department of Housing and Community
66-14 Affairs under Section 1372.023.
66-15 SECTION 34. Sections 3(3), (7), and (8), Texas Manufactured
66-16 Housing Standards Act (Article 5221f, Vernon's Texas Civil
66-17 Statutes), are amended to read as follows:
66-18 (3) "Board" means the Manufactured Housing Board
66-19 within the Texas Department of Housing and Community Affairs
66-20 [governing board of the department].
66-21 (7) "Department" means the Texas Department of Housing
66-22 and Community Affairs operating through its manufactured housing
66-23 division.
66-24 (8) "Director" means the executive director of the
66-25 manufactured housing division of the Texas Department of Housing
66-26 and Community Affairs [department].
66-27 SECTION 35. Section 7, Texas Manufactured Housing Standards
67-1 Act (Article 5221f, Vernon's Texas Civil Statutes), is amended by
67-2 amending Subsections (g) and (k) and adding Subsections (t)-(aa) to
67-3 read as follows:
67-4 (g) All licenses are valid for one year and are renewable as
67-5 provided by the director. The board by rule may adopt a system
67-6 under which licenses expire on various dates during the year. For
67-7 the year in which the license expiration date is changed, the
67-8 department shall prorate license fees on a monthly basis so that
67-9 each license holder pays only that portion of the license fee that
67-10 is allocable to the number of months during which the license is
67-11 valid. On renewal of the license on the new expiration date, the
67-12 total license renewal fee is payable.
67-13 (k) The director shall conduct any hearing involving the
67-14 denial, renewal, revocation or suspension of a license in
67-15 accordance with Chapter 2001, Government Code. The department may
67-16 place on probation a person whose license is suspended. If a
67-17 license suspension is probated, the department may require the
67-18 person:
67-19 (1) to report regularly to the department on matters
67-20 that are the basis of the probation;
67-21 (2) to limit practice to the areas prescribed by the
67-22 department; or
67-23 (3) to continue or review professional education until
67-24 the person attains a degree of skill satisfactory to the department
67-25 in those areas that are the basis of the probation.
67-26 (t) A person whose license has expired may not engage in
67-27 activities that require a license until the license has been
68-1 renewed.
68-2 (u) A person whose license has been expired for 90 days or
68-3 less may renew the license by paying to the department a renewal
68-4 fee that is equal to 1-1/2 times the normally required renewal fee.
68-5 (v) A person whose license has been expired for more than 90
68-6 days but less than one year may renew the license by paying to the
68-7 department a renewal fee that is equal to two times the normally
68-8 required renewal fee.
68-9 (w) A person whose license has been expired for one year or
68-10 more may not renew the license. The person may obtain a new
68-11 license by complying with the requirements and procedures for
68-12 obtaining an original license.
68-13 (x) A person who was licensed in this state, moved to
68-14 another state, and is currently licensed and has been in practice
68-15 in the other state for the two years preceding the date of
68-16 application may obtain a new license without fulfilling the
68-17 instruction requirements of Subsection (o). The person must pay to
68-18 the department a fee that is equal to two times the normally
68-19 required renewal fee for the license.
68-20 (y) Not later than the 30th day before the date a person's
68-21 license is scheduled to expire, the department shall send written
68-22 notice of the impending expiration to the person at the person's
68-23 last known address according to the records of the department.
68-24 (z) The board may waive any prerequisite to obtaining a
68-25 license for an applicant after reviewing the applicant's
68-26 credentials and determining that the applicant holds a license
68-27 issued by another jurisdiction that has licensing requirements
69-1 substantially equivalent to those of this state.
69-2 (aa) The board may waive any prerequisite to obtaining a
69-3 license for an applicant who holds a license issued by another
69-4 jurisdiction with which this state has a reciprocity agreement. The
69-5 board may make an agreement, subject to the approval of the
69-6 governor, with another state to allow for licensing by reciprocity.
69-7 SECTION 36. The Texas Manufactured Housing Standards Act
69-8 (Article 5221f, Vernon's Texas Civil Statutes) is amended by adding
69-9 a new Section 7A and redesignating the existing Section 7A as
69-10 Section 7B and amending that section to read as follows:
69-11 Sec. 7A. PROVISIONAL LICENSE. (a) The board may issue a
69-12 provisional license to an applicant currently licensed in another
69-13 jurisdiction who seeks a license in this state and who:
69-14 (1) has been licensed in good standing as a
69-15 manufacturer, retailer, broker, salesperson, rebuilder, or
69-16 installer of manufactured housing for at least two years in another
69-17 jurisdiction, including a foreign country, that has licensing
69-18 requirements substantially equivalent to the requirements of this
69-19 Act;
69-20 (2) has passed a national or other examination
69-21 recognized by the board relating to the manufactured housing
69-22 industry; and
69-23 (3) is sponsored by a person licensed by the board
69-24 under this Act with whom the provisional license holder will
69-25 practice during the time the person holds a provisional license.
69-26 (b) The board may waive the requirement of Subsection (a)(3)
69-27 for an applicant if the board determines that compliance with that
70-1 subsection would be a hardship to the applicant.
70-2 (c) A provisional license is valid until the date the board
70-3 approves or denies the provisional license holder's application for
70-4 a license.
70-5 (d) The board shall issue a license under this Act to the
70-6 provisional license holder if the provisional license holder is
70-7 eligible to be licensed under Section 7(z) or (aa) or if:
70-8 (1) the board verifies that the provisional license
70-9 holder meets the academic and experience requirements for a license
70-10 under this Act; and
70-11 (2) the provisional license holder satisfies any other
70-12 licensing requirements under this Act.
70-13 (e) The board must approve or deny a provisional license
70-14 holder's application for a license not later than the 180th day
70-15 after the date the provisional license is issued.
70-16 (f) The board may establish a fee for provisional licenses
70-17 in an amount reasonable and necessary to cover the cost of issuing
70-18 the licenses.
70-19 Sec. 7B [7A]. EDUCATION PROGRAMS. (a) The department
70-20 [director] may recognize, prepare, or administer certification
70-21 programs [and continuing education programs] for persons regulated
70-22 under this Act. Participation in the programs is voluntary.
70-23 (b) The board shall recognize, prepare, or administer
70-24 continuing education programs for its license holders. A license
70-25 holder must participate in the continuing education programs to the
70-26 extent required by the board to keep the person's license.
70-27 (c) The department [director] shall issue appropriate
71-1 certificates to those persons who complete a [the] certification
71-2 program or who participate in a [the] continuing education program
71-3 under this section.
71-4 SECTION 37. (a) The nine members of the governing board of
71-5 the Texas Department of Housing and Community Affairs who are
71-6 serving immediately before September 1, 2001, continue to serve as
71-7 the governing board of the department on and after that date
71-8 regardless of whether those members meet the membership
71-9 requirements prescribed by Subchapter B, Chapter 2306, Government
71-10 Code, as amended by this Act. However, the positions of those nine
71-11 members are abolished on the date on which a majority of the seven
71-12 board membership positions that are created under Subchapter B,
71-13 Chapter 2306, Government Code, as amended by this Act, are filled
71-14 by appointment by the governor and the appointees qualify for
71-15 office.
71-16 (b) The governor shall make the seven appointments to the
71-17 board under Subchapter B, Chapter 2306, Government Code, as amended
71-18 by this Act, as soon as possible on or after September 1, 2001. In
71-19 making the initial appointments, the governor shall designate two
71-20 members for terms expiring January 31, 2003, two members for terms
71-21 expiring January 31, 2005, and three members for terms expiring
71-22 January 31, 2007.
71-23 (c) The changes in law made by this Act in amending
71-24 Subchapter B, Chapter 2306, Government Code, do not affect the
71-25 ability of the director of the Texas Department of Housing and
71-26 Community Affairs who is serving on the effective date of this Act
71-27 to continue to serve in that capacity until the governing board of
72-1 the department appointed by the governor under Subchapter B,
72-2 Chapter 2306, Government Code, as amended by this Act, employs a
72-3 new director under Chapter 2306.
72-4 SECTION 38. (a) The governor shall make the appointments to
72-5 the Manufactured Housing Board created by Subchapter AA, Chapter
72-6 2306, Government Code, as amended by this Act, as soon as possible
72-7 on or after September 1, 2001. In making the initial appointments,
72-8 the governor shall designate one member for a term expiring January
72-9 31, 2003, two members for terms expiring January 31, 2005, and two
72-10 members for terms expiring January 31, 2007.
72-11 (b) Until the Manufactured Housing Board employs a division
72-12 director for the manufactured housing division of the Texas
72-13 Department of Housing and Community Affairs, the director of the
72-14 department may continue to carry out the functions of the division
72-15 director for that division.
72-16 SECTION 39. As soon as practicable after the effective date
72-17 of this Act, the new governing board of the Texas Department of
72-18 Housing and Community Affairs appointed by the governor under
72-19 Subchapter B, Chapter 2306, Government Code, as amended by this
72-20 Act, shall develop a strategic action plan to implement the
72-21 requirements of this Act. The board shall employ a new director to
72-22 provide and monitor the provision of administrative support to the
72-23 board to assist in implementing the plan. The director shall
72-24 evaluate the organizational structure of the department, including
72-25 the evaluation of essential management positions, and shall make
72-26 any organizational changes necessary to implement the plan and the
72-27 other requirements of this Act.
73-1 SECTION 40. (a) Not later than December 31, 2002, the Sunset
73-2 Advisory Commission shall evaluate the success of the Texas
73-3 Department of Housing and Community Affairs in implementing the
73-4 requirements of this Act before that date, including actions taken
73-5 by the department with respect to the following:
73-6 (1) establishment of a functional governing board that
73-7 values public input and enables board members to develop the
73-8 expertise necessary to make informed decisions about and to ensure
73-9 the accountability of the department and the programs of the
73-10 department;
73-11 (2) establishment of an organizational structure to
73-12 develop and implement a statewide needs assessment and a
73-13 corresponding allocation process that:
73-14 (A) ensure that the state's objectives regarding
73-15 housing and community support services are fulfilled;
73-16 (B) ensure that the state's most critical needs
73-17 regarding housing and community support services are identified and
73-18 met;
73-19 (C) incorporate input from local entities;
73-20 (D) maximize the preservation of affordable
73-21 housing; and
73-22 (E) achieve the best use of state resources;
73-23 (3) development of policies and procedures that
73-24 clearly define the appropriate roles of board members, the
73-25 director, and department staff;
73-26 (4) implementation of rules outlining a formal process
73-27 to appeal board decisions; and
74-1 (5) establishment of project compliance procedures
74-2 that ensure that the programs of the department provide fair access
74-3 to housing and community support services in this state.
74-4 (b) Before January 1, 2003, the Sunset Advisory Commission
74-5 shall report the results of evaluation to the presiding officer of
74-6 each house of the legislature.
74-7 SECTION 41. (a) Not later than November 1, 2001, the
74-8 governor and the lieutenant governor shall appoint the initial
74-9 members of the executive committee of the Office of Rural Community
74-10 Affairs in accordance with Chapter 487, Government Code, as added
74-11 by this Act. The governor shall appoint two members and the
74-12 lieutenant governor shall appoint one member for terms expiring
74-13 February 1, 2003, the governor shall appoint two members and the
74-14 lieutenant governor shall appoint one member for terms expiring
74-15 February 1, 2005, and the governor shall appoint two members and
74-16 the lieutenant governor shall appoint one member for terms expiring
74-17 February 1, 2007. The executive committee may not take action
74-18 until a majority of the members have taken office.
74-19 (b) The Office of Rural Community Affairs shall employ an
74-20 executive director in accordance with Chapter 487, Government Code,
74-21 as added by this Act, not later than December 1, 2001.
74-22 SECTION 42. (a) On the date by which a majority of the
74-23 members of the executive committee of the Office of Rural Community
74-24 Affairs have taken office, all powers, duties, obligations, rights,
74-25 contracts, leases, records, personnel, property, and unspent and
74-26 unobligated appropriations and other funds of the Texas Department
74-27 of Housing and Community Affairs related to the federal community
75-1 development block grant nonentitlement program are transferred to
75-2 the Office of Rural Community Affairs.
75-3 (b) The transfer of the federal community development block
75-4 grant nonentitlement program to the Office of Rural Community
75-5 Affairs does not affect the validity of a right, privilege, or
75-6 obligation accrued, a contract or acquisition made, any liability
75-7 incurred, a permit or license issued, any penalty, forfeiture, or
75-8 punishment assessed, a rule adopted, a proceeding, investigation,
75-9 or remedy begun, a decision made, or other action taken by or in
75-10 connection with the program by the Texas Department of Housing and
75-11 Community Affairs.
75-12 (c) All rules, policies, procedures, and decisions of the
75-13 Texas Department of Housing and Community Affairs related to the
75-14 federal community development block grant nonentitlement program
75-15 are continued in effect as rules, policies, procedures, and
75-16 decisions of the Office of Rural Community Affairs until superseded
75-17 by a rule or other appropriate action of the Office of Rural
75-18 Community Affairs.
75-19 (d) Any action or proceeding before the Texas Department of
75-20 Housing and Community Affairs related to the federal community
75-21 development block grant nonentitlement program is transferred
75-22 without change in status to the Office of Rural Community Affairs,
75-23 and the Office of Rural Community Affairs assumes, without a change
75-24 in status, the position of the Texas Department of Housing and
75-25 Community Affairs in any action or proceeding related to the
75-26 program to which the Texas Department of Housing and Community
75-27 Affairs is a party.
76-1 (e) A fund or account administered by the Texas Department
76-2 of Economic Development relating to the federal community
76-3 development block grant nonentitlement program is not considered to
76-4 be abolished and re-created by this Act but is considered to be
76-5 transferred to the Office of Rural Community Affairs.
76-6 (f) Notwithstanding the changes in law made by this Act,
76-7 until the date the federal community development block grant
76-8 nonentitlement program is transferred to the Office of Rural
76-9 Community Affairs as provided by this Act, the Texas Department of
76-10 Housing and Community Affairs and the Texas Department of Economic
76-11 Development shall continue to exercise the powers and duties
76-12 assigned to the Texas Department of Housing and Community Affairs
76-13 and the Texas Department of Economic Development, respectively,
76-14 under the law as it existed immediately before the effective date
76-15 of this Act or as modified by another Act of the 77th Legislature,
76-16 Regular Session, 2001, that becomes law, and the former law is
76-17 continued in effect for that purpose.
76-18 SECTION 43. Sections 2306.023, 2306.026, and 2306.052(d),
76-19 Government Code, are repealed.
76-20 SECTION 44. A member of the governing board of the Texas
76-21 Department of Housing and Community Affairs, of the Manufactured
76-22 Housing Board, or of the executive committee of the Office of Rural
76-23 Community Affairs is not subject to the prohibition imposed by
76-24 Section 2306.028, 2306.6011, or 487.023, Government Code, as
76-25 applicable, until September 1, 2002.
76-26 SECTION 45. This Act takes effect September 1, 2001.