1-1                                   AN ACT

 1-2     relating to performance audits of certain metropolitan transit

 1-3     authorities.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter B, Chapter 403, Government Code, is

 1-6     amended by adding Section 403.026 to read as follows:

 1-7           Sec. 403.026.  PERFORMANCE AUDIT OF CERTAIN TRANSIT

 1-8     AUTHORITIES.  (a)  This section applies only to a transit authority

 1-9     that is governed by Chapter 451, Transportation Code, and was

1-10     confirmed before July 1, 1985, and does not contain a municipality

1-11     of more than 750,000.

1-12           (b)  The comptroller may, on the request of an entity listed

1-13     in Subsection (c), enter into an interlocal contract under Chapter

1-14     791 with a transit authority to conduct a performance audit to

1-15     determine whether the authority is effectively and efficiently

1-16     providing the services it was created to provide.   The comptroller

1-17     shall report the findings of an audit conducted under this section

1-18     and make appropriate recommendations on changes in the operations

1-19     of the authority to the governing body of the authority.

1-20           (c)  A performance audit under this section may be requested

1-21     by:

1-22                 (1)  the governing body of the transit authority;

1-23                 (2)  the governing body of the municipality with the

1-24     largest population in the authority; or

 2-1                 (3)  the commissioners court in which the majority of

 2-2     the area of the municipality described in Subdivision (2) is

 2-3     located.

 2-4           (d)  A contract under Subsection (b) shall provide that the

 2-5     authority will reimburse the comptroller for costs incurred in

 2-6     conducting the audit.

 2-7           (e)  The comptroller shall file a report containing the

 2-8     results of an audit performed under this section with the governor,

 2-9     the lieutenant governor, the speaker of the house of

2-10     representatives, and the presiding officers of the committees of

2-11     the senate and the house of representatives responsible for

2-12     approving legislation governing the authority.

2-13           (f)  An audit may not be conducted under this section more

2-14     often than once every two years.

2-15           SECTION 2.  The importance of this legislation and the

2-16     crowded condition of the calendars in both houses create an

2-17     emergency and an imperative public necessity that the

2-18     constitutional rule requiring bills to be read on three several

2-19     days in each house be suspended, and this rule is hereby suspended,

2-20     and that this Act take effect and be in force from and after its

2-21     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2446 was passed by the House on April

         30, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 2446 on May 21, 1997, by the

         following vote:  Yeas 144, Nays 0, 1 present, not voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2446 was passed by the Senate, with

         amendments, on May 19, 1997, by the following vote:  Yeas 30, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor