By:  Barrientos                                       S.B. No. 1177
       73R5452 RJA-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to performance audit reviews of certain municipalities by
    1-3  the comptroller.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  MANDATORY PERFORMANCE AUDIT OF POPULOUS
    1-6  MUNICIPALITIES.  (a)  The comptroller shall conduct a performance
    1-7  audit review of each municipality in this state with a population
    1-8  of more than 500,000 according to the most recent federal decennial
    1-9  census.
   1-10        (b)  The comptroller shall complete an audit review performed
   1-11  under this section not later than August 31, 1995.
   1-12        SECTION 2.  PERMISSIVE PERFORMANCE AUDIT OF MUNICIPALITIES.
   1-13  The comptroller may conduct a performance audit review of each
   1-14  municipality in this state with a population of more than 100,000
   1-15  according to the most recent federal decennial census.
   1-16        SECTION 3.  MUNICIPAL COOPERATION; EVALUATIVE INFORMATION.
   1-17  (a)  A municipality subject to a performance audit review under
   1-18  this Act shall fully cooperate with the comptroller in the conduct
   1-19  of the audit.
   1-20        (b)  A performance audit review performed under this Act must
   1-21  provide evaluative information to improve the efficiency and
   1-22  effectiveness of the municipality.
   1-23        SECTION 4.  CONTRACTS.  The comptroller may contract for
   1-24  services in conjunction with the audit after consultation with the
    2-1  municipality to be audited concerning the scope of the audit, the
    2-2  budget of the audit, and any request for proposals issued for
    2-3  external contracting in conducting the audit.
    2-4        SECTION 5.  COSTS.  Notwithstanding the allocations of
    2-5  municipal tax revenue under Subchapter F, Chapter 321, Tax Code,
    2-6  before sending any money to a municipality under that subchapter,
    2-7  and after deducting the state's share under Section 321.503, Tax
    2-8  Code, the comptroller shall deduct the costs of an audit of the
    2-9  municipality performed under this Act and shall credit the money
   2-10  deducted to the general revenue fund.
   2-11        SECTION 6.  MUNICIPALITY CONDUCTING INDEPENDENT AUDIT EXEMPT.
   2-12  This Act does not apply to a municipality in which the governing
   2-13  body of the municipality initiated an independent performance audit
   2-14  review before September 1, 1993, and consulted with the comptroller
   2-15  before the development, issuance, and evaluation of any requests
   2-16  for proposals to conduct the audit.
   2-17        SECTION 7.  EXPIRATION.  This Act expires September 1, 1995.
   2-18        SECTION 8.  EMERGENCY.  The importance of this legislation
   2-19  and the crowded condition of the calendars in both houses create an
   2-20  emergency and an imperative public necessity that the
   2-21  constitutional rule requiring bills to be read on three several
   2-22  days in each house be suspended, and this rule is hereby suspended,
   2-23  and that this Act take effect and be in force from and after its
   2-24  passage, and it is so enacted.