Amend HB 424 as follows:                                                     
	(1)  On page 1, strike lines 5-6 and substitute the following:                 
	SECTION 1.  Section 392.0331, Local Government Code, is 
amended by amending Subsection (a) and adding Subsection (j) to 
read as follows:
	(2)  On page 1, line 9, strike "more than 300" and substitute 
"300 or more, except as provided by Section 392.0332".
	(3)  On page 1, between lines 12 and 13, insert the following:                 
	(j)  On an annual basis in a manner prescribed by the 
department, a housing authority shall provide the Texas Department 
of Housing and Community Affairs with written notice regarding 
whether a tenant resident serves as a commissioner of the authority 
and, if applicable, the name and mailing address of that resident.
	SECTION _____.  Subchapter C, Chapter 392, Local Government 
Code, is amended by adding Section 392.0332 to read as follows:
	Sec. 392.0332.  TENANT COMMISSIONER REQUIREMENT FOR SMALL 
MUNICIPAL HOUSING AUTHORITIES.  (a)  In this section, "small 
municipal housing authority" means a municipal housing authority 
that has fewer than 300 housing units under its jurisdiction.  The 
term includes an authority with no housing units that administers 
only Section 8 housing assistance provided under Section 8, United 
States Housing Act of 1937 (42 U.S.C. Section 1437f), as amended.
	(b)  Section 392.0331 applies to a municipality with respect 
to a small municipal housing authority unless the municipality, 
acting through the housing authority:
		(1)  makes a reasonable effort to recruit eligible 
tenants to serve as commissioners of the authority, including 
notifying the authority's resident advisory board of the 
opportunity for eligible tenants to serve as commissioners of the 
authority;
		(2)  does not receive any positive tenant response on or 
before the 30th day following the date that notice is provided to 
the resident advisory board under Subdivision (1);
		(3)  repeats the requirements of Subdivisions (1) and 
(2) at least annually; and
		(4)  provides the Texas Department of Housing and 
Community Affairs with the annual notice required by Section 
392.0331(j).
	SECTION _____.  The change in law made by this Act in amending 
Section 392.0331, Local Government Code, and in adding Section 
392.0332, Local Government Code, does not affect the ability of a 
commissioner of a housing authority serving on the effective date 
of this Act to continue to serve the remainder of the term to which 
the member is appointed before that date.  As the terms of 
commissioners of the housing authority expire or as a vacancy is 
created in a commissioner's position, the presiding officer of the 
municipality shall appoint the tenant member or members required by 
Section 392.0331, Local Government Code, as amended by this Act.
	(4)  Renumber existing SECTIONS accordingly.