HBA-EDN H.B. 1486 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1486 By: Najera State Affairs 2/23/2001 Introduced BACKGROUND AND PURPOSE Currently, certain political subdivisions or agencies of political subdivisions receive funds from the state in the form of grants or contracts. Occasionally, these grants and contracts are misused or broken by the subdivision. House Bill 1486 authorizes the comptroller or state auditor to review such grants or contracts. 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. ANALYSIS House Bill 1486 amends the Government Code to authorize the comptroller or the state auditor to review any contracts under which a political subdivision of the state or an agency of the political subdivision receives money from the state to accomplish a purpose on the state's behalf to determine whether: _the parties to the contract have sufficient authority to enter into the contract; _the contract is proper, reasonable, and easily understood by each party; _the contract implies that the state or federal laws or rules governing the subject matter of the contract apply in a different manner than the officer conducting the review considers correct; and _the purposes for which the state has provided state money are being adequately furthered by the contract. The bill authorizes the comptroller or state auditor to send any material or information developed in conducting a review to the attorney general or other state or federal investigatory agency if reason is found for further investigation by another entity. The bill requires the comptroller or state auditor to provide a report of the results of a review to the contracting parties, the governor, the presiding officer of each house of the legislature, and any state agency interested in the subject matter of the contract. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.