LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
                                Revision 1
  
                              April 17, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1016  by Madla (Relating to the review of financial
               audits of regional planning commissions.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1016, As Introduced:  negative impact of $(133,098) through the     *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                            $(66,549)  *
          *       2003                             (66,549)  *
          *       2004                             (66,549)  *
          *       2005                             (66,549)  *
          *       2006                             (66,549)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year         General Revenue Fund           Employees from FY 2001      *
*                      0001                                               *
*  2002                         $(66,549)                             0.5 *
*  2003                          (66,549)                             0.5 *
*  2004                          (66,549)                             0.5 *
*  2005                          (66,549)                             0.5 *
*  2006                          (66,549)                             0.5 *
***************************************************************************
  
Technology Impact
  
None.
  
  
Fiscal Analysis
  
This bill would require the regional planning commissions to send the
State Auditor, the Comptroller, and the Legislative Budget Board a copy
of each report and audit required.

This bill would also require the State Auditor to review each audit and
report and be given access to working papers and other supporting
documentation that the State Auditor determines is necessary to perform
the review.  If the State Auditor finds significant issues, the findings
and related recommendations must be reported to the Legislative Audit
Committee, the Governor, and the commission.  The Governor would be
authorized to direct the commission to prepare a corrective action plan,
and the Legislative Audit Committee would be authorized to direct the
State Auditor to perform any additional audits.

This bill would take effect September 1, 2001.
  
  
Methodology
  
The State Auditor's Office estimates that implementation of the
provisions of the bill would require adding approximately one-half FTE
for the reviews.  The agency estimates that review of each of the 24
Councils of Government (COGs) would take 40 hours for a total of 960
hours per year.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.  Surveyed COGs estimated average costs of $100 per hour and
that each review would require 8 to 10 contact hours with SAO staff for
a total of $800 to $1,000 per review.
  
  
Source Agencies:   308   State Auditor's Office, 304   Comptroller of
                   Public Accounts, 301   Office of the Governor
LBB Staff:         JK, DB, MF