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	Amend CSHB 4586 by adding the following appropriately 
numbered SECTION to the bill and renumbering subsequent SECTIONS of 
the bill accordingly:
	SECTION ____.  STATE AUDITOR AUTHORITY:  DISASTER RELIEF 
APPROPRIATIONS.  An entity receiving funds under this Act 
appropriated for disaster relief, including an entity receiving 
funds appropriated in response to a natural disaster and a unit of 
local government receiving funds appropriated for transfer to and 
expenditure out of the disaster contingency fund, is subject to 
audit by the state auditor based on a risk assessment made by the 
state auditor in developing the annual audit plan under Chapter 
321, Government Code.  As part of the risk assessment of an entity, 
including a unit of local government, the state auditor may 
consider:
		(1)  the amount of money directly appropriated to an 
entity by this Act or received by a unit of local government out of 
money appropriated for transfer to and expenditure out of the 
disaster contingency fund by this Act;
		(2)  the amount of money reimbursed under a provision 
of this Act requiring that the general revenue fund or disaster 
contingency fund be reimbursed under certain circumstances; and
		(3)  the methodology used by an entity, including a 
unit of local government, to estimate a loss caused by a disaster.