79R7273 JJT-D

By:  Flores                                                       H.B. No. 2010



A BILL TO BE ENTITLED

AN ACT

relating to authority of the state auditor to investigate or audit a 
nonprofit water supply or sewer service corporation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 67, Water Code, is amended by adding 
Section 67.018 to read as follows:
	Sec. 67.018.  AUTHORITY OF STATE AUDITOR TO INVESTIGATE OR 
AUDIT.  (a)  The state auditor may conduct an investigation of or 
audit a corporation that, through a state agency, receives state or 
federal money.
	(b)  The state auditor shall conduct an appropriate 
investigation or audit in response to a protest the state auditor 
receives from a member or customer of the corporation regarding 
alleged impropriety, malfeasance, or nonfeasance related to the 
performance of the corporation's duties that involve the receipt or 
use of the state or federal money.
	(c)  The state auditor may forward to the attorney general 
any findings of an investigation or audit conducted under this 
section.
	(d)  This section does not limit any authority of the state 
auditor or attorney general.
	SECTION 2.  This Act takes effect September 1, 2005.