SRC-TNM H.B. 2446 75(R) BILL ANALYSIS Senate Research Center H.B. 2446 By: Greenberg (Barrientos) Intergovernmental Relations 5-12-97 Engrossed DIGEST Currently, it is necessary to have an independent performance audit of an agency in order for the Capital Metropolitan Transit Authority to gain the public trust and to move forward in a positive manner. H.B. 2446 would provide that certain metropolitan transit authorities are subject to performance audits by the state comptroller and allow the comptroller to withhold sales tax revenue for the cost of performing the audit. PURPOSE As proposed, H.B. 2446 outlines provisions regarding performance audits of certain metropolitan transit authorities. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 403B, Government Code, by adding Section 403.026, as follows: Sec. 403.026. PERFORMANCE AUDIT OF CERTAIN TRANSIT AUTHORITIES. Provides that this section applies only to a transit authority that is governed by Chapter 451, Transportation Code, and was confirmed before July 1, 1985, and does not contain a municipality with a population of more than 750,000, or contains a municipality with a population of more than 1.2 million. Authorizes the comptroller, on the request of an entity listed in Subsection (c), to enter into an interlocal contract under Chapter 791 with a transit authority to conduct a performance audit to determine whether the authority is effectively and efficiently providing the services it was created to provide. Requires the comptroller to report the findings of an audit conducted under this section and make appropriate recommendations on changes in the operations of the authority to the governing body of the authority. Sets forth entities by which a performance audit under this section is authorized to be requested. Requires a contract under Subsection (b) to provide that the authority will reimburse the comptroller for costs incurred in conducting the audit. Requires the comptroller to file a report containing the results of an audit performed under this section with the governor, the lieutenant governor, the speaker of the house of representatives, and the presiding officers of the committees of the senate and the house or representatives responsible for approving legislation governing the authority. Prohibits an audit from being conducted under this section more often than once every two years. SECTION 2. Emergency clause. Effective date: upon passage.