1-1     By:  Madla                                             S.B. No. 796
 1-2           (In the Senate - Filed February 20, 2001; February 21, 2001,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     April 20, 2001, reported favorably by the following vote:  Yeas 6,
 1-5     Nays 0; April 20, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the exception to disclosure under the public
 1-9     information law of certain audit working papers.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 552.116, Government Code, is amended to
1-12     read as follows:
1-13           Sec. 552.116.  EXCEPTION:  AUDIT WORKING PAPERS.  (a)  An
1-14     audit working paper of an audit of the state auditor or the auditor
1-15     of a state agency or institution of higher education as defined by
1-16     Section 61.003, Education Code, is excepted from the requirements
1-17     of Section 552.021.
1-18           (b)  An audit working paper of an auditor of a political
1-19     subdivision of this state is excepted from the requirements of
1-20     Section 552.021 if the audit is conducted in accordance with
1-21     generally accepted auditing standards as prescribed by the American
1-22     Institute of Certified Public Accountants, the Governmental
1-23     Accounting Standards Board, the United States General Accounting
1-24     Office, or another professionally recognized entity that prescribes
1-25     auditing standards.
1-26           (c)  If information in an audit working paper is also
1-27     maintained in another record, that other record is not excepted
1-28     from the requirements of Section 552.021 by this section.
1-29           (d) [(b)]  In this section:
1-30                 (1)  "Audit" means an audit authorized or required by a
1-31     statute of this state or the United States and includes an
1-32     investigation.
1-33                 (2)  "Audit working paper" includes all information,
1-34     documentary or otherwise, prepared or maintained in conducting an
1-35     audit or preparing an audit report, including:
1-36                       (A)  intra-agency and interagency communications;
1-37     and
1-38                       (B)  drafts of the audit report or portions of
1-39     those drafts.
1-40           SECTION 2.  This Act takes effect immediately if it receives
1-41     a vote of two-thirds of all the members elected to each house, as
1-42     provided by Section 39, Article III, Texas Constitution.  If this
1-43     Act does not receive the vote necessary for immediate effect, this
1-44     Act takes effect September 1, 2001.
1-45                                  * * * * *