78R4978 ATP-D

By:  Madla                                                        S.B. No. 1300


A BILL TO BE ENTITLED
AN ACT
relating to the oversight of regional planning commissions by the state auditor. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. 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 2. Sections 391.009(a) and (b), Local Government Code, are amended to read as follows: (a) To protect the public interest or promote the efficient use of public funds, the state auditor [governor] 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. (b) The state auditor [governor] and state agencies shall provide technical information and assistance to the members and staff of a commission to increase, to the greatest extent feasible, the capability of the commission to discharge its duties and responsibilities prescribed by this chapter and to ensure compliance with the rules, requirements, and guidelines adopted under Subsection (a). SECTION 3. 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 state auditor's [governor's] office or by the commission, as determined by the state auditor's [governor's] office, and shall be paid for from the commission's funds. (c) A commission shall submit any other report or an audit required by the state auditor [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 [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 state auditor, the governor, the comptroller, and the Legislative Budget Board a copy of each report and audit required under this section or under Section 391.009. The state auditor shall review each audit and report 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 state auditor [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 4. Section 391.0115(f), Local Government Code, is amended to read as follows: (f) In this section, "indirect costs" means costs that are not directly attributable to a single action of a commission. The state auditor [governor] shall use the federal Office of Management and Budget circulars A-87 and A-122 or use any rules relating to the determination of indirect costs adopted under Chapter 783, Government Code, in administering this section. SECTION 5. Section 391.0117(e), 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 [governor] objects to a commission's salary schedule or a portion of the schedule, the portion of the schedule that the state auditor [governor] objects to may not go into effect until revisions or explanations are given that are satisfactory to the state auditor [governor] and the state auditor [governor] approves that portion of the schedule. SECTION 6. Section 391.013(a), Local Government Code, is amended to read as follows: (a) With the advance approval of the state auditor [governor], a commission that borders another state may: (1) join with a similar commission or planning agency in a contiguous area of the bordering state to form an interstate commission; or (2) permit a similar commission or planning agency in a contiguous area of the bordering state to participate in planning functions. SECTION 7. Section 391.014, Local Government Code, is amended to read as follows: Sec. 391.014. INTERNATIONAL AREAS. With the advance approval of the state auditor [governor], a commission that borders the Republic of Mexico may spend funds in cooperation with an agency, constituent state, or local government of the Republic of Mexico for planning studies encompassing areas lying both in this state and in contiguous territory of the Republic of Mexico. SECTION 8. (a) On the effective date of this Act: (1) a rule, requirement, or guideline adopted by the governor relating to the oversight of regional planning commissions becomes a rule, requirement, or guideline of the state auditor's and remains in effect until amended or repealed by the state auditor; and (2) appropriated funds withheld from a regional planning commission by the governor under Section 391.0095, Local Government Code, are transferred to the state auditor. (b) A request for advance approval by the governor under Section 391.013 or 391.014, Local Government Code, that is pending on the effective date of this Act must be submitted to the state auditor for approval. SECTION 9. This Act takes effect September 1, 2003.