Wednesday, June 29, 2011

SB 1 Confirms Transfer of TXCDBG to Agriculture; TDHCA Gets 2-Year Extension

SB 1, approved by both Chambers of the Texas Legislature, has now been sent to Governor Perry for his signature.  Among the numerous provisions of the bill are two (2) sections that are of particular importance to local governments in Texas:

Article 62. Transferring Texas Department of Rural Affairs (TDRA) to Office of Rural Affairs Within Texas Department of Agriculture.  This abolishes TDRA, accomplishing the wishes of Governor Perry, as expressed in his State of State Address back in January. Current employees of TDRA will become employees of the Office of Rural Affairs in the Department of Agriculture.  This will place operation of the federally-funded Texas Community Development Block Grant Program under the oversight of Texas Agriculture Commissioner Todd Staples.  Many local leaders have called for this change, expressing a desire for the Program's operation to be guided by a statewide elected official, instead of an independent Board.

Article 74. Operation and Administration of the Texas Department of Housing and Community Affairs (TDHCA). Governor Perry vetoed TDHCA's Sunset Bill over disagreement with objectionable language regarding future response to natural disasters. His veto effectively abolished TDHCA, effective September 1, 2011.  Article 74 in SB 1, absent authorization in a future Sunset Bill, abolishes the agency on September 1, 2013.  So, if signed by the Governor, SB 1 grants TDHCA a two-year reprieve, and ensures additional review of Agency operations and effectiveness by the Texas Sunset Commission, in the interim period until the next Legislature meets in 2013.