By Madla                                              S.B. No. 1016
         77R6296 JMG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the review of financial audits of regional planning
 1-3     commissions.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 391.0095(e), Local Government Code, is
 1-6     amended to read as follows:
 1-7           (e)  A commission shall [also] send to the state auditor, the
 1-8     comptroller, and the Legislative Budget Board a copy of each [a]
 1-9     report and [or an] audit required under this section or under
1-10     Section 391.009.  The state auditor shall review each audit and
1-11     report and must be given access to working papers and other
1-12     supporting documentation that the state auditor determines is
1-13     necessary to perform the review.  If the state auditor finds
1-14     significant issues involving the administration or operation of a
1-15     commission or its programs, the state auditor shall report its
1-16     findings and related recommendations to the legislative audit
1-17     committee, the governor, and the commission.  The governor may
1-18     direct the commission to prepare a corrective action plan or other
1-19     response to the state auditor's findings or recommendations.  The
1-20     legislative audit committee may direct the state auditor to perform
1-21     any additional audit or investigative work that the committee
1-22     determines is necessary.  [If the governor determines that there is
1-23     a question about the appropriateness of an expenditure or other
1-24     action of a commission, the governor shall report the expenditure
 2-1     or other action to the state auditor for review.]
 2-2           SECTION 2.  This Act takes effect September 1, 2001, and
 2-3     applies only to an audit or report sent to the state auditor under
 2-4     Section 391.0095(e), Local Government Code, as amended by this Act,
 2-5     on or after the effective date of this Act.  An audit or report
 2-6     sent to the state auditor under Section 391.0095(e), Local
 2-7     Government Code, before the effective date of this Act is governed
 2-8     by the law in effect before the effective date of this Act, and
 2-9     that law is continued in effect for that purpose.