Amend CSSB 176 by adding the following appropriately numbered
SECTIONS to the bill and renumbering the remaining SECTIONS of the
bill accordingly:
      SECTION ____.  Section 391.009, Local Government Code, is
amended to read as follows:
      Sec. 391.009.  ROLE OF GOVERNOR AND STATE AGENCIES.  (a)  To
protect the public interest or promote the efficient use of public
funds, the <The> governor shall adopt:
            (1)  rules relating to the operation and oversight of a
commission;
            (2)  rules relating to the receipt or  expenditure of
funds by a commission, including:
                  (A)  restrictions on the expenditure of any
portion of commission funds for certain classes of expenses; and
                  (B)  restrictions on the maximum amount of or
percentage of commission funds that may be expended on a class of
expenses, including indirect costs or travel expenses;
            (3)  annual reporting requirements for a commission;
            (4)  annual audit requirements on funds received or
expended by a commission from any source;
            (5)  rules relating to the establishment and use of
standards by which the productivity and performance of each
commission can be evaluated; and
            (6)  <issue> guidelines that <to> commissions and
governmental units shall follow in carrying <to carry> out the
provisions of this chapter relating to review and comment
procedures.
      (b)  The governor and state agencies shall provide technical
information and assistance to the members and staff of a commission
to increase, to the greatest extent feasible, the capability of the
commission to discharge its duties and responsibilities prescribed
by this chapter and to ensure compliance with the rules,
requirements, and guidelines adopted under Subsection (a).
      SECTION ____.  Chapter 391, Local Government Code, is amended
by adding Section 391.0095 to read as follows:
      Sec. 391.0095.  AUDIT AND REPORTING REQUIREMENTS.  (a)  The
audit and reporting requirements under Section 391.009(a) shall
include a requirement that a commission annually report to the
governor:
            (1)  the amount and source of funds received by the
commission;
            (2)  the amount and source of funds expended by the
commission;
            (3)  an explanation of any method used by the
commission to compute an expense of the commission, including
computation of any indirect cost of the commission;
            (4)  a report of the commission's productivity and
performance during the annual reporting period;
            (5)  a projection of the commission's productivity and
performance during the next annual reporting period;
            (6)  the results of an audit of the commission's
affairs prepared by an independent certified public accountant; and
            (7)  a report of any assets disposed of by the
commission.
      (b)  The annual audit of a commission may be commissioned by
the governor's office or by the commission, as determined by the
governor's office, and shall be paid for from the commission's
funds.
      (c)  A commission shall submit any other report or an audit
required by the governor.
      (d)  If a commission fails to submit a report or audit
required under this section or is determined by the governor to
have failed to comply with a rule, requirement, or guideline
adopted under Section 391.009, the governor may, until the failure
is corrected:
            (1)  appoint a receiver to operate or oversee the
commission; or
            (2)  withhold any appropriated funds of the commission.
      (e)  A commission shall also send to the state auditor, the
comptroller, and the Legislative Budget Board a copy of a report or
an audit required under this section or under Section 391.009.  If
the governor determines that there is a question about the
appropriateness of an expenditure or other action of a commission,
the governor shall report the  expenditure or other action to the
state auditor for review.
      SECTION ____.  (a)  The governor shall adopt rules,
requirements, and guidelines required by Sections 391.009 and
391.0095, Local Government Code, as amended or added by this Act,
not later than January 1, 2000.
      (b)  An entity required to file an audit or a  report under
Section 391.009 or Section 391.0095, Local Government Code, as
amended or added by this Act, shall file the initial audit or
report not later than September 1, 2000.