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.