78R8907 T

By:  Casteel                                                      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 a new section to read as follows:
	Sec. 783.010  STATE AGENCY REPORTING AND AUDITING 
COORDINATION.  (a)  State agencies that require reports of local 
governments shall, during the second year of each state biennium 
conduct a zero-based review of reporting requirements placed on 
local governments and shall determine and eliminate unnecessary, 
duplicative, or overly burdensome reporting requirements and 
simplify reporting requirements.
	(b)  Agencies shall report the results of the reviews to the 
state auditor and may recommend statutory changes to minimize cost, 
duplication, and paperwork and to maximize the efficient and 
effective use of public funds.
	(c)  State agencies 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, state agencies must:
		(1)  accept, and not duplicate with state resources, 
the independent audit of a local government if it is performed by a 
Certified Public Accountant in accordance with generally accepted 
governmental auditing practices (GAAP) and the standards of the 
Governmental Accounting Standards Board (GASB);
		(2)  at the time of approval of a contract with or 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)  provide in the contract or grant award for the 
payment of any unique or special auditing requirements not required 
by generally accepted accounting practices or the standards of the 
Governmental Accounting Standards Board.
	(e)  The state auditor shall report to the legislature and 
the governor each biennium on state agency 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.