H.B. 289 78(R)    BILL ANALYSIS


H.B. 289
By: Chisum
Land & Resource Management
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently an entity may not receive a monetary award from the Office of
Rural Community Affairs (ORCA) if a member of the Board of ORCA or its
executive director has a financial interest in that entity, even if the
member or executive director recuses him or herself from the vote.   

Because well qualified candidates for the ORCA Board or executive director
position are often from entities that would otherwise qualify for monetary
awards, H.B. 289 will provide the opportunity for entities to be
considered for a monetary award even if a board member or the executive
director has a financial interest in the entity, without compromising the
integrity of the process. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1.Amends Subchapter C, Chapter 487, Government Code, by adding
Sec. 487.059 as follows: 

   Defines "Financial interest in an entity" and "Monetary Award." 

The executive director or a member of the executive committee or another
committee who has a financial interest in a monetary award is required to
disclose the fact at the time of the vote.   

The affected executive director or committee member may not vote on or
participate in any discussion or activity regarding the monetary award.   

If the affected executive director or member is not in compliance with
this section, the entity is not eligible for the monetary award.   

SECTION 2.Effective date. 

EFFECTIVE DATE

September 1, 2003 unless the Act receives the vote necessary for immediate
effect.