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A BILL TO BE ENTITLED
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AN ACT
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relating to an audit by the state auditor of certain programs and |
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funds providing economic development incentives to entities and |
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other persons. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 321, Government Code, is amended by |
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adding Section 321.0139 to read as follows: |
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Sec. 321.0139. AUDIT OF CERTAIN ECONOMIC DEVELOPMENT |
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PROGRAMS AND FUNDS. (a) Beginning September 1, 2015, once every 12 |
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years the state auditor shall conduct an audit of each of the |
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following: |
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(1) the rural economic development and investment |
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program established under Section 12.0271, Agriculture Code; and |
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(2) the young farmer grant program under Subchapter G, |
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Chapter 58, Agriculture Code. |
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(b) Beginning September 1, 2017, once every 12 years the |
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state auditor shall conduct an audit of each of the following: |
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(1) the agricultural biomass and landfill diversion |
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incentive program established under Chapter 22, Agriculture Code; |
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(2) the defense economic adjustment assistance grant |
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program; |
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(3) the agricultural loan guarantee program |
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established under Subchapter E, Chapter 58, Agriculture Code; |
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(4) the young farmer interest rate reduction program |
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established under Subchapter F, Chapter 58, Agriculture Code; and |
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(5) the interest rate reduction program established |
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under Section 44.007, Agriculture Code. |
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(c) Beginning September 1, 2019, once every 12 years the |
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state auditor shall conduct an audit of each of the following: |
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(1) the rural investment fund program under Section |
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12.046, Agriculture Code; |
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(2) the capital access program established under |
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Subchapter BB, Chapter 481; |
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(3) the linked deposit program established under |
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Section 481.193; |
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(4) the moving image industry incentive program under |
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Subchapter B, Chapter 485; |
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(5) the product development program under Subchapter |
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D, Chapter 489; |
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(6) the small business incubator program under |
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Subchapter D, Chapter 489; and |
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(7) the certified capital company program established |
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under Chapter 228, Insurance Code. |
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(d) Beginning September 1, 2021, once every 12 years the |
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state auditor shall conduct an audit of each of the following: |
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(1) the program to provide grants of money from the |
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Texas Enterprise Fund under Section 481.078; |
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(2) the program to provide disbursements from events |
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trust funds established under Section 5C, Chapter 1507 (S.B. 456), |
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Acts of the 76th Legislature, Regular Session, 1999 (Article |
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5190.14, Vernon's Texas Civil Statutes), for event support |
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contracts; and |
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(3) the program to provide disbursements from major |
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events trust funds established under Section 5A, Chapter 1507 (S.B. |
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456), Acts of the 76th Legislature, Regular Session, 1999 (Article |
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5190.14, Vernon's Texas Civil Statutes), for game support contracts |
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or event support contracts. |
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(e) Beginning September 1, 2023, once every 12 years the |
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state auditor shall conduct an audit of each of the following: |
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(1) the program to provide disbursements from motor |
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sports racing trust funds established under Section 5B, Chapter |
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1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, |
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1999 (Article 5190.14, Vernon's Texas Civil Statutes), for motor |
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sports racing events support contracts or event support contracts; |
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(2) the program to provide disbursements from special |
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event trust funds established under Section 398.007, Local |
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Government Code; |
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(3) the program to provide allocations of money for |
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emerging technology from the Texas emerging technology fund |
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established under Chapter 490; and |
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(4) the skills development fund program established |
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under Chapter 303, Labor Code. |
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(f) The state auditor may establish the scope of an audit |
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and objective for an audit conducted under this section that are |
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consistent with generally accepted government auditing standards |
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and with other audits conducted by the state auditor under this |
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chapter. |
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(g) To the extent practicable, the state auditor may assess |
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the efficiency and effectiveness of the program or fund subject to |
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an audit under this section. |
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(h) The state auditor shall prepare a report of each audit |
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conducted under this section. Not later than the second anniversary |
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of the date on which an audit required to be conducted under this |
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section is scheduled to begin, the state auditor shall file the |
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report with the lieutenant governor, the speaker of the house of |
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representatives, and the presiding officer of each standing |
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committee of the senate and house of representatives with primary |
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jurisdiction over economic development. |
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(i) The scheduling of the audits specified by this section |
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is subject to a risk assessment in accordance with Chapter 321 and |
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to inclusion in the annual audit plan under Section 321.013(c). If |
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the state auditor determines that an exception to the schedule |
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specified by this section is warranted, the state auditor shall |
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notify the Legislative Audit Committee and each standing committee |
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of the senate and house of representatives with primary |
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jurisdiction over economic development of the reasons for the |
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exception. |
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SECTION 2. This Act takes effect September 1, 2015. |