BILL ANALYSIS


                                                         H.B. 943
                                        By: Turner, S. (Gallegos)
                                      Intergovernmental Relations
                                                         05-22-95
                                Senate Committee Report (Amended)
BACKGROUND

The statute which provides for local mass transit authorities
provides adequately for financial audits.  However, some
legislators and 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 percent of its
sale tax income has been spent for street and traffic programs,
although the statute sets the limit at 25 percent.

PURPOSE

As proposed, H.B. 943 provides that certain metropolitan transit
authorities are subject to performance audits by the state
comptroller.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 141, Article 1118x, V.T.C.S., by adding
Section 12H, as follows:

     Sec. 12H.  COMPTROLLER'S PERFORMANCE AUDITS OF CERTAIN
     AUTHORITIES.  (a)  Provides that an authority in which the
     principal city has a population of more than 1.2 million and
     an authority in which the principal city has a population of
     less than 750,000 and that was confirmed at a tax election
     before July 1, 1985, are subject to performance audits by the
     state comptroller of public accounts to determine whether the
     particular authority is accomplishing the purposes for which
     it was created, in addition to the audit required by Section
     12D of this Act.  Authorizes the comptroller to examine any
     budgets and operations of the authority, determine whether the
     authority is effectively and efficiently providing the
     services it was created to provide, and make appropriate
     recommendations to the legislature, in performing an audit
     under this section.
     
     (b)  Authorizes the comptroller to initiate an audit under
       this section at the comptroller's discretion and to initiate
       an audit at the request of the governor, lieutenant
       governor, the speaker of the house of representatives, the
       presiding officer of the committee of the senate or the
       house of representatives responsible for approving
       legislation governing the authority or, in an authority in
       which the principal city has a population of less than
       750,000, the Chair of the Metropolitan Planning Organization
       certified by the U.S. Department of Transportation which
       covers the area in which the authority operates, except that
       an audit under this section may not be performed more often
       than once every two years.
       
       (c)  Requires the comptroller to file a copy of the report
       of each audit performed under this section with each person
       who has authority to initiate the audit.
       
       (d)  Prohibits an authority from collecting a sales tax
       greater than that which it was collecting on January 1,
       1995, until such time as the performance audit is conducted
       by the comptroller and filed with the person who requested
       the audit, if a request for a performance audit is made for
       an authority in which the population of the principal city
       is less than 1.2 million.
       
       SECTION 2.   Emergency clause.
           Effective date: upon passage.