BILL ANALYSIS H.B. 943 By: Turner, Sylvester March 29, 1995 Committee Report (Unamended) BACKGROUND The statute which provides for local mass transit authorities provides adequately for financial audits. However, some legislators as well as their constituents have raised questions about whether the Board of the Houston Metropolitan Transit Authority is carrying out the intent of the legislature in its expenditures. Since 1992, the agency's fund balance has fallen from $650 million to $67.8 million. During this period, up to 63.7% of its sales tax income has been spent for street and traffic programs, although the statute sets the limit at 25%. This bill would give the Comptroller's Office authority to carry out performance audits similar to those it sometimes conducts on school districts. In this case, the focus would be on whether and/or to what degree the authority carries out the legislature's original intent in the services it provides. PURPOSE This bill would provide a means to determine whether the agency is functioning in accord with the intent of the legislation which provided for its creation. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1: (A) Empowers the comptroller to conduct audits of Houston metro to determine whether the authority is effectively and efficiently providing the services for which it was created, and otherwise operating in accord with legislative intent. (B) Provides that audits may be performed at comptroller's discretion upon request of the governor, lieutenant governor, speaker of the house, or presiding officer of the senate or house committee responsible for legislation governing the authority, and limits such audits to not more than one every two years. (C) Provides that comptroller may file a report of such audits with each person having the authority to initiate it. SECTION 2: Emergency Clause. Effective Date: upon passage. SUMMARY OF COMMITTEE ACTION H.B. 943 was considered in a public hearing on March 27, 1995. The following people testified in favor of the bill: Rep. Turner. The following people testified on the bill: Sabrina Foster, representing the Houston Mayor and City Council. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, and 2 absent.