By:  Christian (Senate Sponsor - Staples)                         H.B. No. 424
	(In the Senate - Received from the House May 2, 2003; 
May 6, 2003, read first time and referred to Committee on 
Intergovernmental Relations; May 21, 2003, reported favorably by 
the following vote:  Yeas 5, Nays 0; May 21, 2003, sent to printer.)

A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain housing authorities; providing a penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 392.0331, Local Government Code, is amended by amending Subsection (a) and adding Subsections (j) and (k) to read as follows: (a) This section applies only to: (1) a municipality that has a municipal housing authority in which the total number of public housing units is 300 or more, except as provided by Section 392.0332; or (2) a county that has a county housing authority or is a member of a regional housing authority and the total number of public housing units in the authority is more than 750. (j) In this section, "public housing unit" is a dwelling unit for which the owner receives a public housing operating subsidy from the United States Department of Housing and Urban Development. The term does not include a unit for which payments are made to the landlord under the federal Section 8 Housing Choice Voucher Program. (k) 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 2. 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(k). SECTION 3. Section 392.038, Local Government Code, is amended to read as follows: Sec. 392.038. OTHER OFFICERS AND EMPLOYEES OF A MUNICIPAL OR COUNTY HOUSING AUTHORITY. (a) A municipal or county housing authority may employ a secretary, who shall serve as executive director, and may employ technical experts and other officers, agents, and employees, permanent or temporary, the authority considers necessary, except as prohibited in Subsection (b). The authority shall determine the qualifications, duties, and compensation of the persons employed. (b) A housing authority may not use any money under the control of the authority to pay: (1) lobbying expenses incurred by the authority; (2) a person that is required to register with the Texas Ethics Commission under Chapter 305, Government Code; (3) any partner, employee, employer, relative, contractor, consultant, or related entity of a person described by Subdivision (2); or (4) a person that has been hired to represent associations or other entities for the purpose of affecting the outcome of legislation, agency rules, ordinances, or other government policies. (c) A person who violates Subsection (b) commits an offense. An offense under this section is a Class A misdemeanor. (d) Section 305.026, Government Code, does not apply to a housing authority. (e) The restriction imposed by this section is in addition to the restriction imposed by Section 556.0055, Government Code. SECTION 4. 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. SECTION 5. This Act takes effect September 1, 2003.
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