85R402 MTB-D By: Huffines S.B. No. 637 A BILL TO BE ENTITLED AN ACT relating to state audits of a regional mobility authority that receives a grant or loan from the Texas Department of Transportation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter G, Chapter 370, Transportation Code, is amended by adding Section 370.318 to read as follows: Sec. 370.318. AUDIT REQUIREMENT FOR DEPARTMENT GRANT OR LOAN. The department may not make a grant or loan to an authority for a transportation project unless the authority agrees in writing to allow state audits of the authority at any time until the completion of the transportation project for which the funds are granted or loaned at the discretion of the state auditor's office or on a majority vote of a standing legislative committee with primary jurisdiction over transportation. SECTION 2. This Act applies only to a grant or loan agreement that is entered into on or after the effective date of this Act. A grant or loan agreement that is entered into before the effective date of this Act is governed by the law in effect on the date the agreement was entered into, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2017.