S.B. No. 1361

	AN ACT
	relating to the audit report exemption for certain general and
	special law districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 49.198, Water Code, is amended to read as
	follows:
	Sec. 49.198.  AUDIT REPORT EXEMPTION. (a)  A district may
	elect to file annual financial reports with the executive director
	in lieu of the district's compliance with Section 49.191 provided:
	(1)  the district had no bonds or other long-term (more
	than one year) liabilities outstanding during the fiscal period;
	(2)  the district did not have gross receipts from
	operations, loans, taxes, or contributions in excess of $250,000
	[$100,000] during the fiscal period; and
	(3)  the district's cash and temporary investments were
	not in excess of $250,000 [$100,000] at any time during the fiscal
	period.
	(b)  The annual financial report must be accompanied by an
	affidavit attesting to the accuracy and authenticity of the
	financial report signed by a duly authorized representative of the
	district.
	(c)  The annual financial report and affidavit in a format
	prescribed by the executive director must be on file with the
	executive director within 45 days after the close of the district's
	fiscal year.
	(d)  Districts governed by this section are subject to
	periodic audits by the executive director.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1361 passed the Senate on
	April 13, 2011, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1361 passed the House on
	May 23, 2011, by the following vote:  Yeas 142, Nays 0, one
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor