| 1 | 1 | | 84R22516 CLG-D |
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| 2 | 2 | | By: Button, Nevárez H.B. No. 28 |
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| 3 | 3 | | Substitute the following for H.B. No. 28: |
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| 4 | 4 | | By: Johnson C.S.H.B. No. 28 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to an audit by the state auditor of certain programs and |
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| 10 | 10 | | funds providing economic development incentives to entities and |
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| 11 | 11 | | other persons. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Chapter 321, Government Code, is amended by |
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| 14 | 14 | | adding Section 321.0139 to read as follows: |
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| 15 | 15 | | Sec. 321.0139. AUDIT OF CERTAIN ECONOMIC DEVELOPMENT |
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| 16 | 16 | | PROGRAMS AND FUNDS. (a) Beginning September 1, 2015, once every 12 |
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| 17 | 17 | | years the state auditor shall conduct an audit of each of the |
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| 18 | 18 | | following: |
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| 19 | 19 | | (1) the rural economic development and investment |
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| 20 | 20 | | program established under Section 12.0271, Agriculture Code; and |
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| 21 | 21 | | (2) the young farmer grant program under Subchapter G, |
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| 22 | 22 | | Chapter 58, Agriculture Code. |
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| 23 | 23 | | (b) Beginning September 1, 2017, once every 12 years the |
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| 24 | 24 | | state auditor shall conduct an audit of each of the following: |
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| 25 | 25 | | (1) the agricultural biomass and landfill diversion |
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| 26 | 26 | | incentive program established under Chapter 22, Agriculture Code; |
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| 27 | 27 | | (2) the defense economic adjustment assistance grant |
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| 28 | 28 | | program; |
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| 29 | 29 | | (3) the agricultural loan guarantee program |
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| 30 | 30 | | established under Subchapter E, Chapter 58, Agriculture Code; |
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| 31 | 31 | | (4) the young farmer interest rate reduction program |
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| 32 | 32 | | established under Subchapter F, Chapter 58, Agriculture Code; and |
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| 33 | 33 | | (5) the interest rate reduction program established |
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| 34 | 34 | | under Section 44.007, Agriculture Code. |
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| 35 | 35 | | (c) Beginning September 1, 2019, once every 12 years the |
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| 36 | 36 | | state auditor shall conduct an audit of each of the following: |
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| 37 | 37 | | (1) the rural investment fund program under Section |
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| 38 | 38 | | 12.046, Agriculture Code; |
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| 39 | 39 | | (2) the capital access program established under |
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| 40 | 40 | | Subchapter BB, Chapter 481; |
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| 41 | 41 | | (3) the linked deposit program established under |
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| 42 | 42 | | Section 481.193; |
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| 43 | 43 | | (4) the moving image industry incentive program under |
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| 44 | 44 | | Subchapter B, Chapter 485; |
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| 45 | 45 | | (5) the product development program under Subchapter |
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| 46 | 46 | | D, Chapter 489; |
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| 47 | 47 | | (6) the small business incubator program under |
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| 48 | 48 | | Subchapter D, Chapter 489; and |
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| 49 | 49 | | (7) the certified capital company program established |
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| 50 | 50 | | under Chapter 228, Insurance Code. |
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| 51 | 51 | | (d) Beginning September 1, 2021, once every 12 years the |
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| 52 | 52 | | state auditor shall conduct an audit of each of the following: |
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| 53 | 53 | | (1) the program to provide grants of money from the |
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| 54 | 54 | | Texas Enterprise Fund under Section 481.078; |
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| 55 | 55 | | (2) the program to provide disbursements from events |
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| 56 | 56 | | trust funds established under Section 5C, Chapter 1507 (S.B. 456), |
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| 57 | 57 | | Acts of the 76th Legislature, Regular Session, 1999 (Article |
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| 58 | 58 | | 5190.14, Vernon's Texas Civil Statutes), for event support |
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| 59 | 59 | | contracts; and |
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| 60 | 60 | | (3) the program to provide disbursements from major |
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| 61 | 61 | | events trust funds established under Section 5A, Chapter 1507 (S.B. |
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| 62 | 62 | | 456), Acts of the 76th Legislature, Regular Session, 1999 (Article |
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| 63 | 63 | | 5190.14, Vernon's Texas Civil Statutes), for game support contracts |
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| 64 | 64 | | or event support contracts. |
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| 65 | 65 | | (e) Beginning September 1, 2023, once every 12 years the |
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| 66 | 66 | | state auditor shall conduct an audit of each of the following: |
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| 67 | 67 | | (1) the program to provide disbursements from motor |
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| 68 | 68 | | sports racing trust funds established under Section 5B, Chapter |
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| 69 | 69 | | 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, |
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| 70 | 70 | | 1999 (Article 5190.14, Vernon's Texas Civil Statutes), for motor |
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| 71 | 71 | | sports racing events support contracts or event support contracts; |
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| 72 | 72 | | (2) the program to provide disbursements from special |
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| 73 | 73 | | event trust funds established under Section 398.007, Local |
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| 74 | 74 | | Government Code; |
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| 75 | 75 | | (3) the program to provide allocations of money for |
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| 76 | 76 | | emerging technology from the Texas emerging technology fund |
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| 77 | 77 | | established under Chapter 490; and |
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| 78 | 78 | | (4) the skills development fund program established |
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| 79 | 79 | | under Chapter 303, Labor Code. |
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| 80 | 80 | | (f) The state auditor may establish the scope of an audit |
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| 81 | 81 | | and objective for an audit conducted under this section that are |
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| 82 | 82 | | consistent with generally accepted government auditing standards |
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| 83 | 83 | | and with other audits conducted by the state auditor under this |
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| 84 | 84 | | chapter. |
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| 85 | 85 | | (g) To the extent practicable, the state auditor may assess |
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| 86 | 86 | | the efficiency and effectiveness of the program or fund subject to |
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| 87 | 87 | | an audit under this section. |
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| 88 | 88 | | (h) The state auditor shall prepare a report of each audit |
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| 89 | 89 | | conducted under this section. Not later than the second anniversary |
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| 90 | 90 | | of the date on which an audit required to be conducted under this |
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| 91 | 91 | | section is scheduled to begin, the state auditor shall file the |
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| 92 | 92 | | report with the lieutenant governor, the speaker of the house of |
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| 93 | 93 | | representatives, and the presiding officer of each standing |
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| 94 | 94 | | committee of the senate and house of representatives with primary |
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| 95 | 95 | | jurisdiction over economic development. |
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| 96 | 96 | | (i) The scheduling of the audits specified by this section |
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| 97 | 97 | | is subject to a risk assessment in accordance with Chapter 321 and |
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| 98 | 98 | | to inclusion in the annual audit plan under Section 321.013(c). If |
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| 99 | 99 | | the state auditor determines that an exception to the schedule |
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| 100 | 100 | | specified by this section is warranted, the state auditor shall |
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| 101 | 101 | | notify the Legislative Audit Committee and each standing committee |
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| 102 | 102 | | of the senate and house of representatives with primary |
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| 103 | 103 | | jurisdiction over economic development of the reasons for the |
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| 104 | 104 | | exception. |
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| 105 | 105 | | SECTION 2. This Act takes effect September 1, 2015. |
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