2003S0643-1 03/13/03


By:  Armbrister                                                   S.B. No. 1516


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)  A state agency shall report the results of the reviews 
required by Subsection (a) 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)  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 shall:
		(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 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)  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 accounting principles 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.