House of Representatives

HB 2157

intergovernmental agreements; procedure; limitation

Sponsor: Representative Brimhall

 

DPA

Committee on Counties & Municipalities

DP

Committee on Public Institutions & Rural Affairs

X

Caucus and COW

 

 

As Passed the House

 

HB 2157 expands information included in an intergovernmental agreement and sets a 10 per cent cap on third party administrative costs.   

 

History

Current law allows authorized public agencies to enter into intergovernmental agreements [IGAs] for contracting services or jointly exercising common powers.  Each IGA must specify the duration and purpose of the contract or agreement, the manner of financing the joint undertaking and budget information, and the permissible methods used for terminating the contract or agreement.  HB 2157 requires an additional provision be included in the contract or agreement when applicable.  The provision stipulates that any separate entity or organization that is designated to provide services to, administer, execute or be funded by the agreement for the parties must be recorded in the document.

 

In addition, HB 2157 limits a public agency of spending no more than 10 per cent of available IGA monies on administrative costs associated with any separate entity contracted as a third party in an IGA.

 

Provisions

·              Requires any separate entity providing services to IGA participants to be documented within the IGA.

·              Limits the amount of monies spent by a separate entity for administrative costs to 10 per cent of the available monies of an IGA.

 

HB 2157 was amended in the Counties & Municipalities Committee as follows:

·              Permits contracting parties of an IGA to form a separate legal entity, including a nonprofit corporation, to contract for or perform services as specified in the IGA.

·              Allows the separate entity to exercise powers that are jointly held by the contracting parties.

·              Requires the precise organization, composition, title and nature of a separate entity be included in the contract or agreement.

 

·              Eliminates language pertaining to the 10 per cent cap of monies that separate entities may use for administrative costs.

HB 2157 passed the Public Institutions & Rural Affairs Committee unamended.

 

 

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45th Legislature                                                                                                                                

First Regular Session                                   2                                                     February 21, 2001

 

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