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Amend CSHB 2120 (Senate committee printing) by adding the 
following appropriately numbered SECTION to the bill and 
renumbering the subsequent SECTIONS accordingly:
	SECTION __.  Section 172.003(l), Local Government Code, is 
amended to read as follows:
		(1)  "Affiliated service contractor" means an 
organization qualified for exemption under Section 501(c), 
Internal Revenue Code (26 U.S.C. Section 501(c)), as amended, that 
provides governmental or quasi-governmental services on behalf of a 
political subdivision and derives more than 25 [50] percent of its 
gross revenues from grants or funding from the political 
subdivision.