Delete Article 2E beginning on page 57 and replace with the
following:
SECTION 2E.01. The heading to Section 391.009, Local
Government Code, is amended to read as follows:
Sec. 391.009. ROLE OF STATE AUDITOR, GOVERNOR, AND STATE
AGENCIES.
SECTION 2E.02. Section 391.009, Local Government Code, is
amended by amending Subsection (a) and adding Subsections (a-1) and
(a-2) to read as follows:
(a) To protect the public interest and [or] promote the
efficient use of public funds, the governor, with the technical
assistance of the state auditor, may draft and [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) guidelines that commissions and governmental units
shall follow in carrying out the provisions of this chapter
relating to review and comment procedures.
(a-1) The governor may draft and adopt rules under
Subsection (a) using negotiated rulemaking procedures under
Chapter 2008, Government Code.
(a-2) Based on a risk assessment performed by the state
auditor and subject to the legislative audit committee's approval
for inclusion in the audit plan under Section 321.013, Government
Code, the state auditor's office shall assist the governor as
provided by Subsection (a).
SECTION 2E.03. Section 391.0095, Local Government Code, is
amended 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
state auditor [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 or at the direction of
the governor's office, 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 to
the state auditor and [required by] the governor.
(d) If a commission fails to submit a report or audit
required under this section or is determined by the state auditor
[governor] to have failed to comply with a rule, requirement, or
guideline adopted under Section 391.009, the state auditor shall
report the failure to the governor's office. 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 send to the governor, the state
auditor, the comptroller, and the Legislative Budget Board a copy
of each report and audit required under this section or under
Section 391.009. Subject to a risk assessment performed by the
state auditor and to the legislative audit committee's approval for
inclusion in the audit plan under Section 321.013, Government Code,
the [The] state auditor may [shall] review each audit and report.
If the state auditor reviews an audit or report, the state auditor
[and] must 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
involving the administration or operation of a commission or its
programs, the state auditor shall report its findings and related
recommendations to the legislative audit committee, the governor,
and the commission. The governor and the legislative audit
committee may direct the commission to prepare a corrective action
plan or other response to the state auditor's findings or
recommendations. The legislative audit committee may direct the
state auditor to perform any additional audit or investigative work
that the committee determines is necessary.
SECTION 2E.04. Subsection (e), Section 391.0117, Local
Government Code, is amended to read as follows:
(e) A commission shall submit to the state auditor
[governor] the commission's salary schedule, including the
salaries of all exempt positions, not later than the 45th day before
the date of the beginning of the commission's fiscal year. If the
state auditor, subject to the legislative audit committee's
approval for inclusion in the audit plan under Section 321.013,
Government Code, has recommendations to improve [governor objects
to] a commission's salary schedule or a portion of the schedule, the
state auditor shall report the recommendations to the governor's
office. The governor's office may not allow the portion of the
schedule for which [that] the state auditor has recommendations to
[governor objects to may not] go into effect until revisions or
explanations are given that are satisfactory to the governor based
on recommendations from the state auditor [and the governor
approves that portion of the schedule].
SECTION 2E.05. On the effective date of this Act, a rule,
requirement, or guideline adopted by the governor relating to the
oversight of regional planning commissions remains in effect until
amended or repealed by the governor.