By:  Casteel                                                      H.B. No. 3024

Substitute the following for H.B. No. 3024:                                   

By:  Allen                                                    C.S.H.B. No. 3024



A BILL TO BE ENTITLED

AN ACT

relating to increasing governmental efficiency through the 
reduction of duplicative reporting and auditing requirements.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 783, Government Code, is amended by 
adding Section 783.010 to read as follows:
	Sec. 783.010.  STATE AGENCY REPORTING AND AUDITING 
COORDINATION.  (a)  A state agency that requires reports of local 
governments shall, during the second year of each state biennium, 
conduct a zero-based review of reporting requirements imposed on 
local governments and shall simplify the reporting requirements and 
determine and eliminate unnecessary, duplicative, or overly 
burdensome reporting requirements.
	(b)  Based on the results of these reviews, the state agency 
shall recommend to the legislature statutory changes to minimize 
cost, duplication, and paperwork and to maximize the efficient and 
effective use of public funds.
	(c)  A state agency may not require local governments to 
submit reports on items not required by law, rule, or performance 
measures.
	(d)  To achieve greater efficiency in the use of governmental 
funds expended on governmental audits, a state agency, except as 
shown necessary to further protect public funds, shall:
		(1)  accept, and not duplicate with state resources, an 
independent audit of a local government if it is performed by a 
certified public accountant in accordance with generally accepted 
governmental auditing standards and the standards of the 
Governmental Accounting Standards Board;
		(2)  at the time of approval of a contract with or a 
grant to a local government, specify any special or unique auditing 
requirements that must be performed by the local government's 
independent auditors; and
		(3)  as may be allowed by law or rule, provide in the 
contract or grant award for the payment of costs incurred by the 
local government in complying with any special or unique auditing 
requirements not required by generally accepted governmental 
auditing standards or the standards of the Governmental Accounting 
Standards Board.
	(e)  Nothing in this section shall be construed to limit the 
authority of a state agency to monitor or audit a local government's 
expenditure of state or federal funds received via contract or 
grant.
	(f)  The state auditor may audit for compliance with these 
provisions.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.