HBA-TYH H.B. 2557 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2557 By: Glaze State Affairs 3/30/1999 Introduced BACKGROUND AND PURPOSE Currently, there is concern regarding the accountability of private, nonprofit corporations who receive grant money from the state or the federal government and distribute these funds to local service agencies under contract. While these organizations are subject to the Texas Open Records Act, they are not subject to the Texas Open Meetings Act. In this situation, decisions can be made without the knowledge of, or an opportunity for input by, various interested parties. H.B. 2557 subjects any organization that receives public funds from the state to the Texas Open Meetings Act, requiring it to make its board meetings and financial records open to the public. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 551.001(3), Government Code, to redefine 'governmental body' as a nonprofit corporation organized under Chapter 67 (Nonprofit Water Supply or Sewer Service Corporations), Water Code, rather than Chapter 76, Acts of the 43rd legislature, 1st Called Session, 1933 (Article 1434a, V.T.C.S.). Includes in the definition of a "governmental body" the governing body of an entity that is a party to a contract with this state under which the entity receives public funds or is a recipient of a grant of money from this state that is conditioned on the entity's performance of a function or services, and engages or proposes to engage in a deliberation relating to the enumerated topics. SECTION 2. Amends Section 552.003(1), Government Code, to include in the definition of "governmental body" an entity, or the part, section, or portion of an entity, that is a party to a contract with this state under which the entity, or that part, section, or portion of that entity, receives public funds or that is a recipient of a grant of money from this state that is conditioned on the performance of a function or service. Makes a conforming change. SECTION 3. Effective date: September 1, 1999. Makes application of SECTION 1 of this Act prospective to a deliberation of the governing body of an entity that is a party to a contract with or the recipient of a grant from this state that begins on or after September 4, 1999. Makes SECTION 2 of this Act applicable regardless of when the information was collected or assembled. SECTION 4. Emergency clause.