By: Kolkhorst  S.B. No. 1544          (In the Senate - Filed March 8, 2017; March 21, 2017, read   first time and referred to Committee on Intergovernmental   Relations; March 30, 2017, reported adversely, with favorable   Committee Substitute by the following vote:  Yeas 7, Nays 0;   March 30, 2017, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 1544 By:  Lucio     A BILL TO BE ENTITLED   AN ACT     relating to financial reporting requirements of regional planning   commissions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 391.0095, Local Government Code, is   amended by amending Subsections (a), (d), and (e) and adding   Subsections (c-1), (d-1), and (f) to read as follows:          (a)  The audit and reporting requirements under Section   391.009(a) shall include a requirement that a commission annually   report to the state auditor:                (1)  the amount and source of funds received by the   commission during the commission's preceding fiscal year;                (2)  the amount and source of funds expended by the   commission during the commission's preceding fiscal year,   including, for each commission program for which an expenditure is   made:                      (A)  a description of the program;                      (B)  the name of the program and the name of each   eligible recipient, governmental unit, or other person who received   funds approved by the governing body of the commission under the   program; and                      (C)  the amount spent for each eligible   governmental unit;                (3)  an explanation of any method used by the   commission to compute an expense of the commission, including   computation of any indirect cost of the commission;                (4)  a report of the commission's productivity and   performance during the commission's preceding fiscal year [annual   reporting period];                (5)  a projection of the commission's productivity and   performance during the commission's next fiscal year [annual   reporting period];                (6)  the results of an audit of the commission's affairs   prepared by an independent certified public accountant; and                (7)  a report of any assets disposed of by the   commission during the commission's preceding fiscal year.          (c-1)  The report submitted under this section shall note any   governmental units that are ineligible to receive money under a   commission program.          (d)  If a commission fails to submit a report or audit as    required under this section or is determined by the state auditor to   have failed to comply with a rule, requirement, or guideline   adopted under Section 391.009, the state auditor shall report the   failure to the governor's office. The governor may, until the   failure is corrected:                (1)  appoint a receiver to operate or oversee the   commission; or                (2)  withhold any appropriated funds of the commission.          (d-1)  If the governor appoints a receiver under Subsection   (d)(1), the receiver or the commission may not spend any of the   commission's funds until the failure is corrected.          (e)  A commission shall send to the governor, the state   auditor, the comptroller, the members of the legislature that   represent a district located wholly or partly in the region of the   commission, each participating governmental unit in the region, and   the Legislative Budget Board a copy of each report and audit   required under this section or under Section 391.009.  The state   auditor may review each audit and report, subject to a risk   assessment performed by the state auditor and to the legislative   audit committee's approval of including the review in the audit   plan under Section 321.013, Government Code. If the state auditor   reviews the audit or report, the state auditor must be given access   to working papers and other supporting documentation that the state   auditor determines is necessary to perform the review.  If the state   auditor finds significant issues involving the administration or   operation of a commission or its programs, the state auditor shall   report its findings and related recommendations to the legislative   audit committee, the governor, and the commission.  The governor   and the legislative audit committee may direct the commission to   prepare a corrective action plan or other response to the state   auditor's findings or recommendations.  The legislative audit   committee may direct the state auditor to perform any additional   audit or investigative work that the committee determines is   necessary.          (f)  A commission's Internet website home page must contain a   prominently placed direct link to the most recent report and audit   required under this section.          SECTION 2.  This Act takes effect September 1, 2017.     * * * * *