House of Representatives

HB 2157

intergovernmental agreements; procedure; limitation

Sponsor: Representative Brimhall

DPA	Committee on Counties & Municipalities
DP	Committee on Public Institutions & Rural Affairs
DPA	Caucus and COW
X	As Passed the House

HB 2157 allows the formation of a separate entity in order to exercise powers jointly held by contracting parties of an intergovernmental agreement and requires specific information regarding the separate entity be included in an intergovernmental agreement.

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 if a separate legal entity is formed, the precise organization, composition, title and nature of the entity shall be included in the contract.

Provisions

· 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.

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.

The Counties & Municipalities Committee amendment was adopted in the Committee of the Whole.

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45th Legislature

First Regular Session 2 March 30, 2001

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