79R7543 MXM-F

By:  Madla                                                        S.B. No. 1436



A BILL TO BE ENTITLED

AN ACT

relating to audits of and financial statements for emergency 
services districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Section 775.082, Health and 
Safety Code, is amended to read as follows:
	Sec. 775.082.  AUDIT OF DISTRICT [LOCATED WHOLLY IN ONE 
COUNTY].
	SECTION 2.  Sections 775.082(a), (b), (e), and (f), Health 
and Safety Code, are amended to read as follows:
	(a)  The [In a district located wholly in one county, the] 
county auditor of a county that contains any part of the district
shall have access to the books, records, officials, and assets of 
the district.
	(b)  Except as provided by Section 775.0825, a [A] district 
[located wholly in one county] shall prepare and file with the 
commissioners court of each [the] county that contains any part of 
the district on or before June 1 of each year an audit report of the 
district's fiscal accounts and records.  The audit shall be 
performed and the report shall be prepared at the expense of the 
district.  The county auditor, with the approval of the 
commissioners court, shall adopt rules relating to the format of 
the audit and report.  If a district is located in more than one 
county, the county auditors, with the approval of the commissioners 
court of each county in which the district is located, shall adopt 
uniform rules relating to the format of the audit and report.
	(e)  If the district fails to complete and file the audit 
report within the time provided by Subsection (b) or (d), the 
commissioners court may order the county auditor to perform the 
audit and issue the report.  If a district is located in more than 
one county, the commissioners court of each county in which the 
district is located shall designate by joint order a county auditor 
of one of the counties to perform the audit and issue the report.
	(f)  The district shall pay all costs incurred by the county 
auditor to perform an audit and issue the report required by this 
section, unless otherwise ordered by the commissioners court or by 
joint order of the commissioners courts, if the district is located 
in more than one county.
	SECTION 3.  Subchapter E, Chapter 775, Health and Safety 
Code, is amended by adding Section 775.0825 to read as follows:
	Sec. 775.0825.  AUDIT OF DISTRICT; EXCEPTION.   (a)  Section 
775.082 does not apply to a district that imposed during the fiscal 
year taxes of $250,000 or less.
	(b)  Not later than the 90th day after the date on which the 
fiscal year ends, a district to which this section applies may file 
with the commissioners court of each county in which the district is 
located a compiled financial statement of the district's fiscal 
accounts and records.   If the district files a financial statement 
under this section, the financial statement must be prepared by an 
independent certified public accountant or firm of certified public 
accountants licensed in this state.
	(c)  The district shall pay for any compiled financial 
statement prepared under this section.
	SECTION 4.  This Act takes effect September 1, 2005.