By Galloway H.B. No. 2775 75R8613 JRD-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to requiring a report by a private auditor as part of the 1-3 sunset review process. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 325, Government Code, is amended by 1-6 adding Section 325.0075 to read as follows: 1-7 Sec. 325.0075. REPORT BY PRIVATE AUDITOR. (a) Before 1-8 October 1 of the odd-numbered year before the year in which a state 1-9 agency subject to this chapter is scheduled to be abolished, the 1-10 state auditor shall issue a request for proposals from 1-11 nongovernmental entities that are engaged in the business of 1-12 auditing to audit the agency in accordance with this section. The 1-13 purpose of the audit is to provide information about a state agency 1-14 directly to the legislature for consideration during the regular 1-15 legislative session preceding the scheduled abolition date of the 1-16 agency. The state auditor shall award the contract to the 1-17 nongovernmental entity that is capable of performing the work that 1-18 presents the proposal that is most advantageous to the state. 1-19 (b) The auditor awarded the contract shall determine: 1-20 (1) whether the agency has received, obligated, spent, 1-21 and granted public money in accordance with the purpose for which 1-22 the money was appropriated or otherwise entrusted to the agency and 1-23 in accordance with any limitations, directions, or other conditions 1-24 imposed by law on the use of the money; 2-1 (2) whether the agency is managing and using its 2-2 resources, including money, personnel, property, equipment, and 2-3 space, in an economical and efficient manner; 2-4 (3) whether the agency is effectively and efficiently 2-5 achieving the purposes for which the agency was created; and 2-6 (4) any other matter relating to the agency that the 2-7 commission directs the state auditor to include in the request for 2-8 proposals. 2-9 (c) The auditor awarded the contract shall complete the 2-10 audit and publish its audit report not later than June 30 of the 2-11 even-numbered year before the year in which the state agency 2-12 subject to this chapter is scheduled to be abolished. The audit 2-13 report is public information subject to required public disclosure 2-14 in accordance with Chapter 552. 2-15 (d) The auditor awarded the contract shall state in the 2-16 audit report the auditor's opinion about the financial statements 2-17 of the agency. The auditor shall also comment in the audit report 2-18 on the agency's internal controls and compliance with state and 2-19 federal law and on ways in which the agency can improve its 2-20 operations and the effectiveness of its programs. 2-21 (e) The auditor awarded the contract shall send the audit 2-22 report to the governor, the commission, the state auditor, the 2-23 Legislative Reference Library, the chair of the standing committee 2-24 of each house of the legislature that has subject matter 2-25 jurisdiction over the audited agency, and the presiding officer and 2-26 administrative head of the audited agency. 2-27 (f) The state auditor periodically shall send a notice to 3-1 each member of the legislature that states which reports or audits 3-2 under this section have been completed most recently and are 3-3 available. 3-4 SECTION 2. Section 325.008(a), Government Code, is amended 3-5 to read as follows: 3-6 (a) Before September 1 of the even-numbered year before the 3-7 year in which a state agency subject to this chapter and its 3-8 advisory committees are abolished, the commission shall: 3-9 (1) review and take action necessary to verify the 3-10 reports submitted by the agency under Section 325.007; 3-11 (2) consult the Legislative Budget Board, the 3-12 Governor's Budget and Planning Office, the State Auditor, and the 3-13 comptroller of public accounts, or their successors, on the 3-14 application to the agency of the criteria provided in Section 3-15 325.011; 3-16 (3) consider the audit report on the agency prepared 3-17 under Section 325.0075, conduct a performance evaluation of the 3-18 agency based on the criteria provided in Section 325.011, and 3-19 prepare a written report; and 3-20 (4) review the implementation of commission 3-21 recommendations contained in the reports presented to the 3-22 legislature during the preceding legislative session. 3-23 SECTION 3. This Act takes effect September 1, 1997. 3-24 SECTION 4. The importance of this legislation and the 3-25 crowded condition of the calendars in both houses create an 3-26 emergency and an imperative public necessity that the 3-27 constitutional rule requiring bills to be read on three several 4-1 days in each house be suspended, and this rule is hereby suspended.