Texas 2009 81st Regular

Texas House Bill HB2942 Introduced / Bill

Filed 02/01/2025

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                    By: Dunnam H.B. No. 2942


 A BILL TO BE ENTITLED
 AN ACT
 relating to fiscal accountability and transparency in government
 operations by providing for effective legislative oversight.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. SHORT TITLE
 SECTION 1.01. This Act may be cited as the "Texas Government
 Accountability and Transparency Act of 2009."
 ARTICLE 2. STATE AUDITOR AND FISCAL RESPONSIBILITY OFFICE
 SECTION 2.01. The chapter heading to Chapter 321,
 Government Code, is amended to read as follows:
 CHAPTER 321. TEXAS FISCAL RESPONSIBILITY OFFICE AND STATE AUDITOR
 SECTION 2.02. Chapter 321, Government Code, is amended by
 designating Sections 321.001-321.012 as Subchapter A and adding a
 heading for Subchapter A to read as follows:
 SUBCHAPTER A. GENERAL PROVISIONS
 SECTION 2.03. Subchapter A, Chapter 321, Government Code,
 as added by this Act, is amended by adding Section 321.0005 to read
 as follows:
 Sec. 321.0005.  FINDING AND PURPOSE. (a) The Legislature
 finds that the public's confidence in their government is highest
 when there is adequate oversight of government spending and
 performance by an independent agency that answers to the people's
 elected representatives.
 (b)  The purpose of this chapter is to ensure that the State
 Auditor and the Texas Fiscal Responsibility Office are able to
 provide the highest level of oversight of government spending and
 performance to ensure the utmost in government economy and
 efficiency.
 SECTION 2.04. Section 321.001, Government Code, is amended
 by amending Subdivisions (1) and (3) and adding Subdivision (4-a)
 to read as follows:
 (1) "Audit plan" means the outline of work [approved
 by the committee] for the office [State Auditor's Office] in a year
 for the performance of audits and related services, including
 technical assistance, data analysis, consulting and oversight
 functions, investigations, and the preparation of audit reports and
 other types of communications.
 (3) "Board" ["Committee"] means the Legislative Audit
 Board [legislative audit committee].
 (4-a)  "Office" means the Texas Fiscal Responsibility
 Office.
 SECTION 2.05. Subchapter A, Chapter 321, Government Code,
 as added by this Act, is amended by adding Sections 321.0011 and
 321.0014 to read as follows:
 Sec. 321.0011.  TEXAS FISCAL RESPONSIBILITY OFFICE; HEAD OF
 OFFICE. The Texas Fiscal Responsibility Office is an independent
 agency of the legislative branch of state government.
 Sec. 321.0014.  APPLICABILITY TO CERTAIN ENTITIES. This
 chapter applies to the following entities in the same manner as a
 department:
 (1)  an independent organization certified by the
 Public Utility Commission of Texas under Section 39.151, Utilities
 Code;
 (2) a regional mobility authority;
 (3) the Texas Economic Development Corporation;
 (4)  a nonprofit organization that is established by a
 state officer, agency, board, commission, or department and that
 solicits gifts, grants, and other donations for the Texas
 Enterprise Fund under Section 481.078;
 (5)  a nonprofit organization that is established by a
 state officer, agency, board, commission, or department and that
 solicits gifts, grants, and other donations; and
 (6)  any public or private person or entity receiving
 funds made available by or provided under the American Recovery and
 Reinvestment Act of 2009 (Pub. L. No. 111-5).
 Sec. 321.0015.  REFERENCES IN OTHER LAW. (a) A reference in
 law to the state auditor's office means the Texas Fiscal
 Responsibility Office.
 (b)  A reference in law to the legislative audit committee
 means the Legislative Audit Board.
 SECTION 2.06. Sections 321.002 and 321.004, Government
 Code, are amended to read as follows:
 Sec. 321.002. LEGISLATIVE AUDIT BOARD [COMMITTEE].
 (a) The Legislative Audit Board [legislative audit committee]
 consists of:
 (1) the lieutenant governor;
 (2) the speaker of the house of representatives;
 (3) the chairman of the senate finance committee;
 (4) four other members [one member] of the senate
 appointed by the lieutenant governor;
 (5) the chairman of the house appropriations
 committee; [and]
 (6) the chairman of the house ways and means
 committee; and
 (7)  three other members of the house appointed by the
 speaker.
 (b) In the absence of the chairman of a house or senate
 committee, the vice-chairman of the respective committee shall act.
 (c) Member's of the board [committee] serve without
 compensation but are entitled to actual and necessary expenses
 incurred in performing official duties.
 (d) The board [committee] shall employ necessary clerical
 assistants as allowed by legislative appropriation.
 (e) The lieutenant governor and the speaker are joint chairs
 of the board [committee]. [The committee shall elect one member to
 serve as secretary.]
 Sec. 321.004. MEETINGS; QUORUM; PROCEDURE FOR TIE VOTE. (a)
 Except as provided by Subsection (b), a majority of the members of
 the board from each house constitutes a quorum to transact
 business. If a quorum is present, the board may act on any matter
 that is within its jurisdiction by a majority vote.
 (b)  Two members of the board from each house constitutes a
 quorum for the taking of testimony and receiving evidence.
 (c)  The board shall meet as often as necessary to perform
 its duties. Meetings may be held at any time at the request of
 either of the joint chairs of the board or on written petition of
 two of the members of the board from each house.
 (c-1)  Beginning July 1, 2009, the board shall meet at least
 once each month in Austin to take testimony and receive evidence
 related to funds received by the state from the Federal government
 for economic stabilization, including funds received under the
 American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).
 This subsection expires January 1, 2011.
 (d)  The board shall meet in Austin, except that if a
 majority of the members of the board from each house agree, the
 board may meet in any location determined by the board.
 (e)  Each member of the legislature is entitled to attend and
 present his views in any meeting of the board, except that a
 legislator who is not a member of the board may not vote.
 (f)  As an exception to Chapter 551 and other law, if a
 meeting is located in Austin and the joint chairs of the board are
 physically present at the meeting, then any number of the other
 members of the board may attend the meeting by use of telephone
 conference call, video conference call, or other similar
 telecommunication device. This subsection applies for purposes of
 constituting, for a quorum, for purposes of voting, and for any
 other purpose allowing a member of the board to otherwise fully
 participate in any meeting of the board. This subsection applies
 without exception with regard to the subject of the meeting or
 topics considered by the members.
 (g)  A meeting held by use of telephone conference call,
 video conference call, or other similar telecommunication device:
 (1)  is subject to the notice requirements applicable
 to other meetings;
 (2)  must specify in the notice of the meeting the
 location in Austin of the meeting at which the joint chairs will be
 physically present;
 (3)  must be open to the public and shall be audible to
 the public at the location in Austin specified in the notice of the
 meeting as the location of the meeting at which the joint chairs
 will be physically present; and
 (4)  must provide two-way audio communication between
 all members of the board attending the meeting during the entire
 meeting, and if the two-way audio communication link with any
 member attending the meeting is disrupted at any time, the meeting
 may not continue until the two-way audio communication link is
 reestablished.
 (f) If the full board [committee] is present and is not able
 to resolve a tie vote within a reasonable time on a matter this
 chapter requires the committee to decide, the board [committee]
 shall select a member of the house or senate to meet with the board
 [committee] and to cast the tie-breaking vote.
 (g) [(b)] The thirteenth [seventh] member's duty to the
 board [committee] ends when the member casts the tie-breaking vote
 and the matter is resolved.
 SECTION 2.07. Subchapter A, Chapter 321, Government Code,
 as added by this Act, is amended by adding Section 321.003 to read
 as follows:
 Sec. 321.003.  SUNSET PROVISION. The office and the board
 are subject to review under Chapter 325 (Texas Sunset Act), but is
 not abolished under that chapter. The office and board shall be
 reviewed during the periods in which state agencies abolished in
 2013 and every 12th year after that year are reviewed.
 SECTION 2.08. Section 321.005, Government Code, is amended
 to read as follows:
 Sec. 321.005. [APPOINTMENT OF] STATE AUDITOR; APPOINTMENT.
 (a) The State Auditor is the office's chief executive and
 administrative officer. The State Auditor shall:
 (1) administer and enforce this chapter;
 (2) [The committee shall appoint a State Auditor to]
 investigate all custodians of state funds, disbursing agents, and
 department personnel;
 (3)  investigate fraud or abuse in all departments,
 including misuse of funds, conflicts of interest, contract abuses,
 and other violations of law;
 (4)  monitor the compliance of all departments with the
 applicable laws relating to the powers, duties, and functions of
 the departments;
 (5)  refer criminal matters as appropriate to the
 district attorney of Travis County or the prosecuting attorney of
 the county in which an offense is alleged to have occurred;
 (6)  refer civil matters as appropriate to the attorney
 general, the district attorney of Travis County, or the prosecuting
 attorney of the county in which an offense is alleged to have
 occurred; and
 (6)  perform all other duties and exercise all other
 powers granted to the office or the State Auditor by this chapter or
 any other law.
 (b) The board [committee] shall appoint the State Auditor.
 The joint chairs of the board shall execute a written declaration of
 the person appointed by the board as State Auditor and file the
 declaration with the secretary of state.
 (c) The State Auditor serves at the will of the board
 [committee]. The State Auditor is ineligible to be a candidate for a
 public elective office in this state, unless the State Auditor has
 resigned and the board has accepted the resignation.
 (d) The board [committee] shall fill any vacancy in the
 office of State Auditor.
 (e) A majority vote of the board [committee] members is
 sufficient to exercise any action authorized by this section.
 SECTION 2.09. Subchapter A, Chapter 321, Government Code,
 as added by this Act, is amended by amending Sections 321.010 and
 321.011 and adding Sections 321.0101-321.0102 to read as follows:
 Sec. 321.010. FIRST ASSISTANT STATE AUDITOR. (a) The State
 Auditor shall [may] appoint a first assistant state auditor with
 the approval of the board.
 (b) The first assistant state auditor shall:
 (1) perform the duties and assignments prescribed by
 the State Auditor; and
 (2) act as the State Auditor when the State Auditor is
 absent.
 Sec. 321.0101.  COUNSELLOR; ADVISORY OPINIONS. (a) The State
 Auditor shall appoint a counsellor.
 (b)  The counsellor must be an attorney licensed to practice
 law in this state.
 (c)  The counsellor may issue advisory opinions under
 procedures approved by the State Auditor relating to the
 appropriate use of and authority to spend state funds.
 Sec. 321.0102.  CHIEF CLERK. The State Auditor may appoint a
 chief clerk to receive, file, and carefully preserve all documents
 and records provided to the State Auditor and the office and to
 serve as secretary to the board.
 Sec. 321.011. PERSONNEL. (a) Subject to the General
 Appropriations Act or other law, the [The] State Auditor shall
 appoint assistant state auditors [may employ a professional staff,
 including assistant auditors] and may employ [stenographic and
 clerical] personnel as necessary to carry out the powers and duties
 of the State Auditor and the office under this chapter and other
 laws granting jurisdiction or applicable to the State Auditor or
 the office.
 (b) The State Auditor shall establish the qualifications
 necessary for appointment or employment. A person appointed or
 employed must have the experience necessary to qualify the person
 for the position. The State Auditor may conduct professional
 examinations to determine the qualifications of a person seeking
 appointment or employment [prospective staff members].
 (c) The State Auditor may discharge any assistant state
 auditors or other [stenographic or clerical] personnel at any time
 for any reason satisfactory to the State Auditor and without a
 hearing.
 (d) The State Auditor and office personnel [staff] are to be
 free from partisan politics, and the State Auditor is free to select
 the most efficient personnel available for each position in the
 [his] office so that the State Auditor may render to the legislature
 the service the legislature has a right to expect.
 (e) It is against public policy and illegal for a member of
 the legislature, an officer or employee of the state, or an officer
 or employee of a state department to recommend or suggest that the
 State Auditor appoint a person to a position in the office [on the
 state auditor's staff]. An offense under this section is a Class A
 misdemeanor.
 Sec. 321.012. EXPENDITURES AND SALARIES. (a) The board
 [committee] directs and controls the expenditure of any money
 appropriated to the office of the State Auditor and must approve the
 State Auditor's appropriation requests and must review the audit
 plan.
 (b) Before payment may be made on a voucher issued for
 payment of the salaries and expenses of the office, the State
 Auditor must approve the voucher.
 (c) The salaries of the assistant auditors and other
 [stenographic and clerical] personnel may not exceed the amounts
 paid by other departments for similar services without the approval
 of the board.
 (d) Salaries shall be paid monthly.
 SECTION 2.10. Subchapter A, Chapter 321, Government Code,
 as added by this Act, is amended by adding Sections
 321.0121-321.012 to read as follows:
 Sec. 321.0121.  PUBLIC INTEREST INFORMATION. (a) The office
 shall prepare information of public interest describing:
 (1)  the functions of the office, including the
 functions of the state auditor;
 (2)  the matters or issues that may be subject to
 audits, investigations, and other functions performed by the
 office; and
 (3)  the manner in which a person may report an
 allegation of fraud or abuse to the office.
 (b)  The office shall make the information described by
 Subsection (a) available to state officers and employees, and to
 the public.
 Sec. 321.0122.  REQUIRED CONTRACT DISCLOSURE STATEMENT. (a)
 The office shall develop a standard contract provision requiring a
 contractor to disclose to the office the amount of a payment made
 under the contract to any subcontractor, consultant, or person
 required to register as a lobbyist under Chapter 305 or the Lobbying
 Disclosure Act of 1995 (2 U.S.C. Section 1601 et seq.).
 (b)  A department shall include the provision in any contract
 entered into by the department.
 Sec. 321.0123.  CONTRACT REPORTING REQUIREMENTS. A
 department that is required under other law to report information
 relating to a contract entered into by the department to the
 Legislative Budget Board shall also report the information to the
 office.
 Sec. 321.0124.  POSTING OF CONTRACT INFORMATION ON INTERNET.
 (a) The office shall post any information received by the office
 that relates to a contract entered into by a department on an
 Internet site maintained by or for the office. The office shall post
 the information in a timely manner after receipt of the
 information.
 (b) The Internet site must be accessible to the public.
 SECTION 2.11. Section 321.023, Government Code, is
 redesignated as Section 321.009, Government Code, and amended to
 read as follows:
 Sec. 321.009 [321.023]. SEAL. The [state auditor shall
 obtain a] seal of the office is [with "State Auditor, State of
 Texas" engraved around the margin and] a five-pointed star in the
 center with the words "Texas Fiscal Responsibility Office, State of
 Texas" engraved around the margin. The seal shall [to] be used to
 authenticate official documents issued by the state auditor.
 SECTION 2.12. Chapter 321, Government Code, is amended by
 designating Sections 321.013-321.022 as Subchapter B and adding a
 heading for Subchapter B to read as follows:
 SUBCHAPTER B. AUDITS AND INVESTIGATIONS
 SECTION 2.13. The heading for Section 321.013 and
 Subsections (a), (c), and (f) of that section, Government Code, are
 amended to read as follows:
 Sec. 321.013. ADDITIONAL POWERS AND DUTIES OF STATE AUDITOR
 (a) The State Auditor shall conduct audits of all departments,
 including institutions of higher education, as specified in the
 audit plan. [At the direction of the committee,] The [the] State
 Auditor [shall] may conduct an audit or investigation of any entity
 receiving funds from the state.
 (c) The State Auditor shall [recommend the] prepare an audit
 plan for the state for each year [to the committee]. In devising the
 plan, the State Auditor shall consider recommendations concerning
 coordination of agency functions made jointly by representatives of
 the Legislative Budget Board, Sunset Advisory Commission, and
 [State Auditor's Office] the office. The State Auditor shall also
 consider the extent to which a department has received a
 significant increase in appropriations, including a significant
 increase in federal or other money passed through to the
 department, and shall review procurement activities for compliance
 with Section 2161.123. The plan shall provide for auditing of
 federal programs at least as often as required under federal law and
 shall ensure that audit requirements of all bond covenants and
 other credit or financial agreements are satisfied. The committee
 shall review [and approve] the plan.
 (f) The State Auditor may conduct financial audits,
 compliance audits and investigations, [and, with specific
 authority from the committee,] economy and efficiency audits,
 effectiveness audits, and special audits as defined by this chapter
 and specified in the audit plan.
 SECTION 2.14. Section 321.016, Government Code, is amended
 to read as follows:
 Sec. 321.016. IMPROPER PRACTICES AND ILLEGAL TRANSACTIONS.
 (a) If in the course of an audit the State Auditor finds evidence of
 improper practices of financial administration, inadequate fiscal
 records, uneconomical use of resources, or ineffective program
 performance, the State Auditor, after consulting with the head of
 the agency, shall immediately report the evidence to the governor,
 the board [committee], the chairmen of the committees of each house
 with oversight responsibility for the agency, and the
 administrative head and the chairman of the governing body of the
 affected department.
 (b) If in the course of an audit the State Auditor finds
 evidence of an illegal transaction, the State Auditor, after
 consulting with the head of the agency, shall immediately report
 the transaction to the governor, the board [committee], the
 chairmen of the committees of each house with oversight
 responsibility for the agency, to the district attorney of Travis
 County or the prosecuting attorney of the county in which an offense
 is alleged to have occurred, and any other [the] appropriate legal
 authority.
 (c) Immediately after the committee receives a report from
 the State Auditor alleging improper practices of financial
 administration, uneconomical use of resources, or ineffective
 program performance, the board [committee] shall review the report
 and shall consult with and may hold hearings with the
 administrative head and the chairman of the governing body of the
 affected department regarding the report.
 (d) If the administrative head or the governing body of the
 affected department refuses to make the changes recommended by the
 board [committee] at the hearing or provide any additional
 information or reports requested, the board [committee] shall
 report the refusal to the legislature.
 SECTION 2.15. Subchapter A, Government Code, as added by
 this Act, is amended by amending Sections 321.018 and 321.019 and
 adding Section 321.0191 to read as follows:
 Sec. 321.018. SUBPOENAS. (a) The [At the request of the]
 State Auditor or the board on its own motion[, the committee] may
 subpoena witnesses or any books, records, or other documents
 reasonably necessary to conduct an examination under this chapter.
 (b) Each subpoena must be signed by either:
 (1) the State Auditor; or
 (2) one of the joint chairs of the board [committee or
 the secretary of the committee].
 (c) On the request of either the State Auditor or one of the
 joint chairs of the board [committee or the secretary of the
 committee], the sergeant at arms or an assistant sergeant at arms of
 either house of the legislature or any peace officer shall serve the
 subpoena in the manner prescribed for service of a district court
 subpoena.
 (d) If the person to whom a subpoena is directed fails to
 comply, the State Auditor or the board [committee] may bring suit in
 district court to enforce the subpoena. If the court determines
 that good cause exists for the issuance of the subpoena, the court
 shall order compliance. The court may modify the requirements of a
 subpoena that the court determines are unreasonable. Failure to
 comply with the order of the district court is punishable as
 contempt.
 (e) The State Auditor or the board [committee] may provide
 for the compensation of subpoenaed witnesses. The amount of
 compensation may not exceed the amount paid to a witness subpoenaed
 by a district court in a civil proceeding.
 Sec. 321.019. INTERFERENCE WITH AUDIT OR INVESTIGATION;
 CRIMINAL OFFENSE. (a) An officer or employee of this state or of an
 entity subject to audit or investigation by the state auditor
 commits an offense if the officer or employee:
 (1) refuses to immediately permit the State Auditor to
 examine or have access to the books, accounts, reports, vouchers,
 papers, documents, or electronic data to which the State Auditor is
 entitled under Section 321.013(e) or other law, or to the cash
 drawer, or cash from the officer's or employee's department;
 (2) interferes with an examination by the State
 Auditor; or
 (3) refuses to make a report required by this chapter.
 (b) An offense under this section is a Class A misdemeanor,
 except that that an offense under Subsection (a) is a felony of the
 third degree if the audit or investigation is related to funds made
 available by or provided under the American Recovery and
 Reinvestment Act of 2009 (Pub. L. No. 111-5).
 (c)  An offense under this section may be prosecuted in the
 county in which an element of the offense occurs or in Travis
 County.
 Sec. 321.0191.  REQUEST FOR INFORMATION; CIVIL PENALTY. (a)
 The State Auditor may serve upon the officer or employee of any
 agency or entity written requests for information or inspection of
 property. A request under this section shall identify with
 reasonable particularity the information, documents or material
 sought. A request seeking inspection of documents or property shall
 describe with reasonable particularity the documents to be produced
 or the property to which access is requested, and shall set forth
 the items to be inspected by individual item or by category.
 (b)  An officer or employee who does not produce the
 documents or grant access to the property not later than 24 hours
 after the request is served is personally liable to the state for a
 civil penalty of $1,000 for each day the conduct continues, except
 that the civil penalty is $5,000 for each day the conduct continues
 if the audit or investigation is related to funds made available by
 or provided under the American Recovery and Reinvestment Act of
 2009 (Pub. L. No. 111-5).
 (c)  The attorney general, the district attorney of Travis
 County, or the prosecuting attorney of the county in which an
 violation is alleged to have occurred may sue to collect the
 penalty.
 SECTION 2.16. Subchapter B, Chapter 321, as added by this
 Act, is amended by adding Sections 321.020-321.027 to read as
 follows:
 Sec. 321.023.  GOVERNMENT ACCOUNTABILITY RECOMMENDATIONS.
 The office shall recommend policies for:
 (1)  the detection of fraud and abuse, including state
 contract violations, conflicts of interest, and the inappropriate
 use or unauthorized expenditure of state funds;
 (2)  the identification of participants in any detected
 fraud or abuse;
 (3)  the termination or prosecution of state employees
 in relation to detected fraud or abuse; and
 (4)  the exclusion of contractors from participation in
 state contracts for detected fraud or abuse.
 Sec. 321.024.  RECEIPT AND INVESTIGATION OF COMPLAINTS AND
 INFORMATION. (a) The State Auditor may receive and investigate
 complaints and information concerning the possible existence of
 fraud or abuse.
 (b)  The State Auditor shall establish and operate a toll-
 free telephone line known as the Texas Government Accountability
 Hotline that enables a person to call the hotline number to:
 (1)  obtain information concerning audits or
 investigations conducted by the office; or
 (2)  report an alleged violation of the laws of this
 state related to government accountability, including laws related
 to spending, procurement, and auditing, by any agency or entity
 that may be audited or investigated by the State Auditor.
 (c)  The State Auditor shall establish an Internet page that
 permits a person to obtain any information a person may obtain from
 or report any violation a person may report to the hotline.
 (d)  Each agency or entity that may be audited or
 investigated by the State Auditor that maintains one or more
 Internet pages shall post on the home page a prominent link to the
 Internet page maintained by the State Auditor under this section.
 Sec. 321.025.  LEGAL ASSISTANCE. On request of the State
 Auditor, the district attorney of Travis County or the prosecuting
 attorney of the county in which an offense is alleged to have
 occurred shall assist the State Auditor with investigations and
 provide appropriate legal assistance.
 Sec. 321.026.  LEGAL REFERRAL. (a) After an investigation of
 possible fraud or abuse, if the State Auditor believes that fraud or
 abuse by a department may have resulted in the inappropriate use or
 unauthorized expenditure of state funds, the office may refer the
 matter to the district attorney of Travis County or the prosecuting
 attorney of the county in which an offense is alleged to have
 occurred and recommend that the appropriate district attorney
 pursue the recovery of state funds.
 (b)  After receiving a referral from the office under this
 section, the district attorney of Travis County or the prosecuting
 attorney of the county in which an offense is alleged to have
 occurred shall review the request, make an independent decision,
 and issue a written public opinion with respect to the existence of
 fraud or abuse and whether the district attorney pursue the
 recovery of state funds.
 Sec. 321.027.  LEGAL REFERRAL RELATED TO RECOVERY ACT
 MATTERS. (a) Notwithstanding any other provision of law, a matter
 referred by the State Auditor concerning fraud or other criminal
 activity in connection with Recovery Act funds may be prosecuted in
 the county in which an element of the offense occurs or in Travis
 County.
 (b)  As used in this section, "Recovery Act" means the
 American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).
 SECTION 8. Sections 322.015, 322.016, 322.0165, 322.017,
 and 322.018, Government Code, are transferred to Chapter 321,
 Government Code, redesignated as Subchapter C, Chapter 321,
 Government Code, and amended with the addition of a subchapter
 heading to read as follows:
 SUBCHAPTER C. PERFORMANCE REVIEWS
 Sec. 321.051 [322.015]. REVIEW OF INTERSCHOLASTIC
 COMPETITION. The office [board] may periodically review and analyze
 the effectiveness and efficiency of the policies, management,
 fiscal affairs, and operations of an organization that is a
 component or part of a state agency or institution and that
 sanctions or conducts interscholastic competition. The office
 [board] shall report the findings to the governor and the
 legislature. The legislature may consider the office's [board's]
 reports in connection with the legislative appropriations process.
 Sec. 321.052 [322.016]. PERFORMANCE REVIEW OF SCHOOL
 DISTRICTS. (a) The office [board] may periodically review the
 effectiveness and efficiency of the operations of school districts,
 including the district's expenditures for its officers' and
 employees' travel services. A review of a school district may be
 initiated by the office [board] at the State Auditor's [its]
 discretion or on the request of the school district. A review may be
 initiated by a school district only by resolution adopted by a
 majority of the members of the board of trustees of the district.
 (b) If a review is initiated on the request of the school
 district, the district shall pay 25 percent of the cost incurred in
 conducting the review.
 (c) The office [board] shall:
 (1) prepare a report showing the results of each
 review conducted under this section;
 (2) file the report with the school district, the
 governor, the lieutenant governor, the speaker of the house of
 representatives, the chairs of the standing committees of the
 senate and the house of representatives with jurisdiction over
 public education, and the commissioner of education; and
 (3) make the entire report and a summary of the report
 available to the public on the Internet.
 (d) Until the office [board] has completed a review under
 this section, all information, documentary or otherwise, prepared
 or maintained in conducting the review or preparing the review
 report, including intra-agency and interagency communications and
 drafts of the review report or portions of those drafts, is excepted
 from required public disclosure as audit working papers under
 Section 552.116. This subsection does not affect whether
 information described by this subsection is confidential or
 excepted from required public disclosure under a law other than
 Section 552.116.
 Sec. 321.053 [322.0165]. PERFORMANCE REVIEW OF INSTITUTIONS
 OF HIGHER EDUCATION. (a) In this section, "public junior college"
 and "general academic teaching institution" have the meanings
 assigned by Section 61.003, Education Code.
 (b) The office [board] may periodically review the
 effectiveness and efficiency of the budgets and operations of:
 (1) public junior colleges; and
 (2) general academic teaching institutions.
 (c) A review under this section may be initiated by the
 office [board] or at the request of:
 (1) the governor; or
 (2) the public junior college or general academic
 teaching institution.
 (d) A review may be initiated by a public junior college or
 general academic teaching institution only at the request of the
 president of the college or institution or by a resolution adopted
 by a majority of the governing body of the college or institution.
 (e) If a review is initiated by a public junior college or
 general academic teaching institution, the college or institution
 shall pay 25 percent of the cost incurred in conducting the review.
 (f) The office [board] shall:
 (1) prepare a report showing the results of each
 review conducted under this section;
 (2) file the report with:
 (A) the chief executive officer of the public
 junior college or general academic teaching institution that is the
 subject of the report; and
 (B) the governor, the lieutenant governor, the
 speaker of the house of representatives, the chairs of the standing
 committees of the senate and of the house of representatives with
 primary jurisdiction over higher education, and the commissioner of
 higher education; and
 (3) make the entire report and a summary of the report
 available to the public on the Internet.
 (g) Until the office [board] has completed a review under
 this section, all information, documentary or otherwise, prepared
 or maintained in conducting the review or preparing the review
 report, including intra-agency and interagency communications and
 drafts of the review report or portions of those drafts, is excepted
 from required public disclosure as audit working papers under
 Section 552.116. This subsection does not affect whether
 information described by this subsection is confidential or
 excepted from required public disclosure under a law other than
 Section 552.116.
 Sec. 321.054 [322.017]. EFFICIENCY REVIEW OF STATE AGENCIES.
 (a) In this section, "state agency" has the meaning assigned by
 Section 2056.001.
 (b) The office [board] periodically may review and analyze
 the effectiveness and efficiency of the policies, management,
 fiscal affairs, and operations of state agencies.
 (c) The office [board] shall report the findings of the
 review and analysis to the governor and the legislature.
 (d) The legislature may consider the office's [board's]
 reports in connection with the legislative appropriations process.
 (e) Until the office [board] has completed a review and
 analysis under this section, all information, documentary or
 otherwise, prepared or maintained in conducting the review and
 analysis or preparing the review report, including intra-agency and
 interagency communications and drafts of the review report or
 portions of those drafts, is excepted from required public
 disclosure as audit working papers under Section 552.116. This
 subsection does not affect whether information described by this
 subsection is confidential or excepted from required public
 disclosure under a law other than Section 552.116.
 Sec. 321.055 [322.018]. RECORDS MANAGEMENT REVIEW. (a) In
 this section, "state agency" has the meaning assigned by Section
 2056.001.
 (b) The office [board] may periodically review and analyze
 the effectiveness and efficiency of the policies and management of
 a state governmental committee or state agency that is involved in:
 (1) analyzing and recommending improvements to the
 state's system of records management; and
 (2) preserving the essential records of this state,
 including records relating to financial management information.
 ARTICLE 2. LEGISLATIVE BUDGET BOARD
 SECTION 2.01. Section 322.001(a), Government Code, is
 amended to read as follows:
 Sec. 322.001. MEMBERSHIP. (a) The Legislative Budget Board
 consists of:
 (1) the lieutenant governor;
 (2) the speaker of the house of representatives;
 (3) the chairman of the senate finance committee;
 (4) the chairman of the house appropriations
 committee;
 (5) the chairman of the house ways and means
 committee;
 (6) five [three] members of the senate appointed by
 the lieutenant governor; and
 (7) four [two] other members of the house appointed by
 the speaker.
 SECTION 2.02. Chapter 322, Government Code, is amended by
 adding Section 322.002 to read as follows:
 Sec. 321.002.  SUNSET PROVISION. The board is subject to
 review under Chapter 325 (Texas Sunset Act), but is not abolished
 under that chapter. The board shall be reviewed during the periods
 in which state agencies abolished in 2013 and every 12th year after
 that year are reviewed.
 SECTION 2.03. Section 322.003, Government Code, is amended
 by amending Subsections (a) and (b) and adding Subsections (a-1),
 (b-1), and (c-1) to read as follows:
 Sec. 322.003. QUORUM; MEETINGS. (a) Except as provided by
 Subsection (a-1), a [A] majority of the members of the board from
 each house constitutes a quorum to transact business. If a quorum is
 present, the board may act on any matter that is within its
 jurisdiction by a majority vote.
 (a-1)  Two members of the board from each house constitutes a
 quorum for the taking of testimony and receiving evidence.
 (b) The board shall meet as often as necessary to perform
 its duties. Meetings may be held at any time at the request of
 either of the joint chairs of the board or on written petition of
 two [a majority] of the members of the board from each house.
 (b-1)  Beginning July 1, 2009, the board shall meet at least
 once each month in Austin to take testimony and receive evidence
 related to funds received by the state from the Federal government
 for economic stabilization, including funds received under the
 American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).
 This subsection expires January 1, 2011.
 (c-1)  Each member of the legislature is entitled to attend
 and present his views in any meeting of the board, except that a
 legislator who is not a member of the board may not vote.
 SECTION 2.04. Chapter 322, Government Code, is amended by
 adding Sections 322.0141, 322.0142, 322.1043, and 322.0144 to read
 as follows:
 Sec. 322.0141.  RECOVERY ACT FUNDING. (a) The board shall
 report monthly on the receipt and use of Recovery Act funds as
 provided by this section.
 (b)  The board shall issue the report not later than the 15th
 day of each month following a reporting period. A reporting period
 consists of a calendar month.
 (c) The report shall contain the following information:
 (1)  the amount of Recovery Act funding received by
 each state agency, political subdivision, and private entity under
 the Act;
 (2)  the title(s) and section(s) of the Recovery Act
 under which the funding is provided;
 (3)  any outstanding requirements or unmet deadlines
 for applying for Recovery Act funds;
 (4)  any changes in any requirements associated with
 Recovery Act funding, including but not limited to spending
 limitations, state match or cost share requirements, percentage
 limitations and timeframes;
 (5) when Recovery Act funding is anticipated to end;
 (6)  whether any additional authority is necessary to
 spend the Recovery Act funds;
 (7)  the number of additional state employees actually
 employed or projected as needed to oversee or administer Recovery
 Act funds; and
 (8)  current plans for addressing how each agency will
 conduct its operations when Recovery Act funds ends.
 (d)  Each state agency, political subdivision, and private
 entity receiving Recovery Act funds shall provide the board any
 information requested by the board under this section necessary for
 the board to prepare a report required under this section and shall
 submit such reports as the board may require to administer this
 section.
 Sec. 322.0142.  INTERFERENCE WITH BOARD FUNCTIONS; CRIMINAL
 OFFENSE. (a) An officer or employee of this state or of an entity
 receiving Recovery Act funds commits an offense if the officer or
 employee:
 (1)  refuses to immediately permit the board to examine
 or have access to the books, accounts, reports, vouchers, papers,
 documents, or electronic data which the board designated as
 necessary to prepare the reports required under Section 322.0141;
 (2) interferes with the Board's reporting duties; or
 (3) refuses to make a report required by this chapter.
 (b)  An offense under this section is a felony of the third
 degree.
 (c)  An offense under this section may be prosecuted in the
 county in which an element of the offense occurs or in Travis
 County.
 Sec. 322.0143.  REQUEST FOR INFORMATION; CIVIL PENALTY. (a)
 The board may serve upon the officer or employee of an agency or
 entity written requests for information or inspection of property
 necessary to produce the reports under Section 322.0141. A request
 under this section shall identify with reasonable particularity the
 information, documents or material sought. A request seeking
 inspection of documents or property shall describe with reasonable
 particularity the documents to be produced or the property to which
 access is requested, and shall set forth the items to be inspected
 by individual item or by category.
 (b)  An officer or employee who does not produce the
 documents or grant access to the property not later than 24 hours
 after the request is served is personally liable to the state for a
 civil penalty of $5,000 for each day the conduct continues.
 (c)  The attorney general, the district attorney of Travis
 County, or the prosecuting attorney of the county in which an
 violation is alleged to have occurred may sue to collect the
 penalty.
 Sec. 322.0144.  SUPPLEMENTAL DEFINITION. As used in this
 chapter, "Recovery Act" means the American Recovery and
 Reinvestment Act of 2009 (Pub. L. No. 111-5).
 ARTICLE 3. TEXAS LEGISLATIVE COUNCIL
 SECTION 3.01. Section 323.001(b), Government Code, is
 amended to read as follows:
 (b) The council consists of:
 (1) the lieutenant governor;
 (2) the speaker of the house of representatives;
 (3) the chairman of the house administration
 committee;
 (4) eight [six] senators from various areas of the
 state appointed by the president of the senate; and
 (5) seven [five] other members of the house of
 representatives from various areas of the state appointed by the
 speaker.
 SECTION 3.02. Chapter 323, Government Code, is amended by
 adding Section 323.002 to read as follows:
 Sec. 323.002.  SUNSET PROVISION. The council is subject to
 review under Chapter 325 (Texas Sunset Act), but is not abolished
 under that chapter. The council shall be reviewed during the
 periods in which state agencies abolished in 2013 and every 12th
 year after that year are reviewed.
 SECTION 3.03. Section 323.003, Government Code, by amending
 Subsections (a) and (b) and adding Subsections (a-1), (b-1), (e),
 and (f) to read as follows:
 Sec. 323.003. MEETINGS. (a) The council shall meet as often
 as necessary to perform its duties. Meetings may be held at any time
 at the request of either of the joint chairs of the council or on
 written petition of two of the members of the council from each
 house.
 (a-1)  Beginning July 1, 2009, the council shall meet at
 least once very two months in Austin to take testimony and receive
 evidence related to funds received by the state from the Federal
 government for economic stabilization, including funds received
 under the American Recovery and Reinvestment Act of 2009 (Pub. L.
 No. 111-5). This subsection expires January 1, 2011.
 (b) Except as provided by Subsection (b-1), a [A] majority
 of the members of the council from each house of the legislature
 constitutes a quorum. If a quorum is present, the council may act on
 any matter that is within its jurisdiction by a majority vote.
 (b-1)  Two members of the council from each house constitutes
 a quorum for the taking of testimony and receiving evidence.
 (e)  As an exception to Chapter 551 and other law, if a
 meeting is located in Austin and the joint chairs of the council are
 physically present at the meeting, then any number of the other
 members of the council may attend the meeting by use of telephone
 conference call, video conference call, or other similar
 telecommunication device. This subsection applies for purposes of
 constituting a quorum, for purposes of voting, and for any other
 purpose allowing a member of the council to otherwise fully
 participate in any meeting of the council. This subsection applies
 without exception with regard to the subject of the meeting or
 topics considered by the members.
 (f)  A meeting held by use of telephone conference call,
 video conference call, or other similar telecommunication device:
 (1)  is subject to the notice requirements applicable
 to other meetings;
 (2)  must specify in the notice of the meeting the
 location in Austin of the meeting at which the joint chairs will be
 physically present;
 (3)  must be open to the public and shall be audible to
 the public at the location in Austin specified in the notice of the
 meeting as the location of the meeting at which the joint chairs
 will be physically present; and
 (4)  must provide two-way audio communication between
 all members of the council attending the meeting during the entire
 meeting, and if the two-way audio communication link with any
 member attending the meeting is disrupted at any time, the meeting
 may not continue until the two-way audio communication link is
 reestablished.
 SECTION 3.04. Sections 323.0145(a)-(b), Government Code,
 are amended to read as follows:
 Sec. 323.0145. ELECTRONIC AVAILABILITY OF LEGISLATIVE
 INFORMATION THROUGH THE INTERNET. (a) In this section:
 (1) "Internet" means the largest nonproprietary
 nonprofit cooperative public computer network, popularly known as
 the Internet.
 (2) "Legislative information" means:
 (A) a list of all the members of each house of the
 legislature;
 (B) a list of the committees of the legislature
 and their members;
 (C) the full text of each bill as filed and as
 subsequently amended, substituted, engrossed, or enrolled in
 either house of the legislature;
 (D) the full text of each amendment or substitute
 adopted by a legislative committee for each bill filed in either
 house of the legislature;
 (E) the calendar of each house of the
 legislature, the schedule of legislative committee hearings, and a
 list of the matters pending on the floor of each house of the
 legislature;
 (F) detailed procedural information about how a
 bill filed in either house of the legislature becomes law,
 including detailed timetable information concerning the times
 under the constitution or the rules of either house when the
 legislature may take certain actions on a bill;
 (G) the district boundaries or other identifying
 information for the following districts in Texas:
 (i) house of representatives;
 (ii) senate;
 (iii) State Board of Education; and
 (iv) United States Congress; [and]
 (H) information about legislative oversight of
 Recovery Act funds, including the committees of each house and each
 legislative agency responsible for providing oversight of or
 information about Recovery Act funds;
 (I) other information related to the legislative
 process that in the council's opinion should be made available
 through the Internet.
 (3)  "Recovery Act" means the American Recovery and
 Reinvestment Act of 2009 (Pub. L. No. 111-5)
 (b) The council, to the extent it considers it to be
 feasible and appropriate, may make legislative information
 available to the public through the Internet. The council shall
 make legislative information related to the Recovery Act available
 to the public through the Internet.
 ARTICLE 4. LEGISLATIVE REFERENCE LIBRARY AND SUNSET ADVISORY
 COMMISSION
 SECTION 4.01. Chapter 324, Government Code, is amended by
 adding Section 324.003 to read as follows:
 Sec. 324.003.  SUNSET PROVISION. The board and the library
 are subject to review under Chapter 325 (Texas Sunset Act), but are
 not abolished under that chapter. The board and the library shall be
 reviewed during the periods in which state agencies abolished in
 2013 and every 12th year after that year are reviewed.
 SECTION 4.02. Chapter 324, Government Code, is amended by
 amending Section 324.004 and adding Section 324.0041 to read as
 follows:
 Sec. 324.004. LEGISLATIVE LIBRARY BOARD. (a) The board
 controls and administers the library.
 (b) The board consists of:
 (1) the lieutenant governor;
 (2) the speaker of the house of representatives;
 (3) the chairman of the house appropriations
 committee;
 (4) four [two] members of the senate appointed by the
 lieutenant governor; and
 (5) three [one] other [member] of the house appointed
 by the speaker.
 (b-1)  The lieutenant governor and the speaker are joint
 chairs of the board.
 (c) Members of the board serve without compensation but are
 entitled to reimbursement for actual and necessary expenses
 incurred in attending meetings and performing official functions.
 (d) Actual and necessary expenses are paid from funds
 appropriated to the board.
 Sec. 323.0041.  MEETINGS. (a) The board shall meet as often
 as necessary to perform its duties. Meetings may be held at any time
 at the request of either of the joint chairs of the board or on
 written petition of two of the members of the board from each house.
 (a-1)  Beginning July 1, 2009, the board shall meet at least
 once every two months in Austin to take testimony and receive
 evidence related to funds received by the state from the Federal
 government for economic stabilization, including funds received
 under the American Recovery and Reinvestment Act of 2009 (Pub. L.
 No. 111-5). This subsection expires January 1, 2010.
 (b)  Except as provided by Subsection (c), a majority of the
 members of the board from each house of the legislature constitutes
 a quorum. If a quorum is present, the board may act on any matter
 that is within its jurisdiction by a majority vote.
 (c)  Two members of the board from each house constitutes a
 quorum for the taking of testimony and receiving evidence.
 (d)  As an exception to Chapter 551 and other law, if a
 meeting is located in Austin and the joint chairs of the board are
 physically present at the meeting, then any number of the other
 members of the board may attend the meeting by use of telephone
 conference call, video conference call, or other similar
 telecommunication device. This subsection applies for purposes of
 constituting a quorum, for purposes of voting, and for any other
 purpose allowing a member of the board to otherwise fully
 participate in any meeting of the board. This subsection applies
 without exception with regard to the subject of the meeting or
 topics considered by the members.
 (e)  A meeting held by use of telephone conference call,
 video conference call, or other similar telecommunication device:
 (1)  is subject to the notice requirements applicable
 to other meetings;
 (2)  must specify in the notice of the meeting the
 location in Austin of the meeting at which the joint chairs will be
 physically present;
 (3)  must be open to the public and shall be audible to
 the public at the location in Austin specified in the notice of the
 meeting as the location of the meeting at which the joint chairs
 will be physically present; and
 (4)  must provide two-way audio communication between
 all members of the board attending the meeting during the entire
 meeting, and if the two-way audio communication link with any
 member attending the meeting is disrupted at any time, the meeting
 may not continue until the two-way audio communication link is
 reestablished.
 SECTION 4.03. Chapter 324, Government Code, is amended by
 amending by adding Section 324.0081 to read as follows:
 Sec. 324.0081.  RECOVERY ACT DEPOSITORY. (a) The library
 shall serve as the central depository for all Recovery Act
 publications.
 (b)  Each agency, political subdivision, or private entity
 receiving, disbursing, investigating, auditing, or reporting the
 use of Recovery Act funds shall provide the library with a copy of
 each Recovery Act publication.
 (c)  To the extent feasible, the library shall make Recovery
 Act publications available for public viewing on the Internet.
 (d) As used in this section:
 (1)  "Recovery Act" means the American Recovery and
 Reinvestment Act of 2009 (Pub. L. No. 111-5)
 (2) "Recovery Act publication":
 (A)  means information in any format, including
 materials in a physical format or in an electronic format, related
 in any way to Recovery Act funds that:
 (i)  is produced by the authority of or at
 the total or partial expense of a state agency or is required to be
 distributed under law by the agency; and
 (ii)  is publicly distributed outside the
 agency by or for the agency;
 (iii)  information the distribution of which
 is limited to contractors with or grantees of the agency;
 (iv)  information the distribution of which
 is limited to persons within the agency or within other government
 agencies; and
 (B)  does not include information the
 distribution of which is limited to members of the public under a
 request made under the open records law, Chapter 552.
 SECTION 4.04. Section 325.011, Government Code, is amended
 to read as follows:
 Sec. 325.011. CRITERIA FOR REVIEW. The commission and its
 staff shall consider the following criteria in determining whether
 a public need exists for the continuation of a state agency or its
 advisory committees or for the performance of the functions of the
 agency or its advisory committees:
 (1) the efficiency and effectiveness with which the
 agency or the advisory committee operates;
 (2)(A) an identification of the mission, goals, and
 objectives intended for the agency or advisory committee and of the
 problem or need that the agency or advisory committee was intended
 to address; and
 (B) the extent to which the mission, goals, and
 objectives have been achieved and the problem or need has been
 addressed;
 (3)(A) an identification of any activities of the
 agency in addition to those granted by statute and of the authority
 for those activities; and
 (B) the extent to which those activities are
 needed;
 (4) an assessment of authority of the agency relating
 to fees, inspections, enforcement, and penalties;
 (5) whether less restrictive or alternative methods of
 performing any function that the agency performs could adequately
 protect or provide service to the public;
 (6) the extent to which the jurisdiction of the agency
 and the programs administered by the agency overlap or duplicate
 those of other agencies, the extent to which the agency coordinates
 with those agencies, and the extent to which the programs
 administered by the agency can be consolidated with the programs of
 other state agencies;
 (7) the promptness and effectiveness with which the
 agency addresses complaints concerning entities or other persons
 affected by the agency, including an assessment of the agency's
 administrative hearings process;
 (8) an assessment of the agency's rulemaking process
 and the extent to which the agency has encouraged participation by
 the public in making its rules and decisions and the extent to which
 the public participation has resulted in rules that benefit the
 public;
 (9) the extent to which the agency has complied with:
 (A) federal and state laws and applicable rules
 regarding equality of employment opportunity and the rights and
 privacy of individuals; and
 (B) state law and applicable rules of any state
 agency regarding purchasing guidelines and programs for
 historically underutilized businesses;
 (10) the extent to which the agency issues and
 enforces rules relating to potential conflicts of interest of its
 employees;
 (11) the extent to which the agency complies with
 Chapters 551 and 552 and follows records management practices that
 enable the agency to respond efficiently to requests for public
 information; [and]
 (12) the effect of federal intervention or loss of
 federal funds if the agency is abolished;
 (13)  for a legislative agency, board, or council
 subject to review under this chapter, the extent to which the
 agency, board, or council discharged its responsibilities related
 to Recovery Act funds. As used in this subdivision, "Recovery Act"
 means the American Recovery and Reinvestment Act of 2009 (Pub. L.
 No. 111-5).
 ARTICLE 5. RECOVERY ACT ACCOUNTABILITY BOARD
 SECTION 5.01. Subtitle C, Title 3, Government Code, is
 amended by adding Chapter 331 to read as follows:
 CHAPTER 331. RECOVERY ACT ACCOUNTABILITY BOARD.
 Sec. 331.001. DEFINITIONS. In this chapter:
 (1)  "Recovery Act" means the American Recovery and
 Reinvestment Act of 2009 (Pub. L. No. 111-5).
 (2)  "Board" means the Recovery Act Accountability
 Board.
 (3) "Legislative agency" means:
 (A) the Texas Legislative Council;
 (B) the Legislative Budget Board;
 (C) the Legislative Reference Library;
 (D) the Texas Fiscal Responsibility Office; or
 (E)  any other agency in the legislative branch of
 state government.
 Sec. 331.002.  RECOVERY ACT ACCOUNTABILITY BOARD.  (a)  The
 Recovery Act Accountability Board consists of:
 (1) the following voting members:
 (A) the lieutenant governor;
 (B) the speaker of the house of representatives;
 (C)  one senate member and one house member of the
 Legislative Audit Board;
 (D)  one senate member and one house member of the
 Legislature Budget Board;
 (E)  one senate member and one house member of the
 Texas Legislative Council
 (F)  one senate member and one house member of the
 Sunset Advisory Commission;
 (G)  one senate member and one house member of the
 Legislative Library Board;
 (H)  the chairman and vice-chairman of the House
 Select Committee on Federal Economic Stabilization Funding;
 (I) four other members of the senate;
 (J) four other members of the house;
 (K)  two public members appointed by the
 lieutenant governor; and
 (L)  two public members appointed by the speaker
 of the house.
 (2) the following non-voting members:
 (A)  four members of Congress from Texas, with two
 members selected by the members of each party required by law to
 hold a primary;
 (B) the State Auditor;
 (C) the director of the Legislative Budget Board;
 (D)  the executive director of the Texas
 Legislative Council;
 (E)  the executive director of the Sunset Advisory
 Commission; and
 (F)  the director of the Legislative Reference
 Library.
 (b)  One of the members appointed under Subsection (a)(1)
 must be the chairman of the senate finance committee. One other
 member appointed under Subsection (a)(1) must be the chairman of
 the house appropriations committee.
 (c)  The lieutenant governor and the speaker are joint chairs
 of the board.
 (d)  Legislative members serving on the board because of
 their service on another board or committee serve during their
 service on that board. Other legislative members and public members
 serve for the term of the board.
 (e)  If a vacancy occurs in the appointed membership, the
 appropriate appointing authority shall appoint a person to serve
 for the remainder of the unexpired term.
 (f)  Each member of the board is entitled to reimbursement
 for actual and necessary expenses incurred in performing commission
 duties. Each legislative member is entitled to reimbursement from
 the appropriate fund of the member's respective house. Each public
 member is entitled to reimbursement from the appropriate fund of
 the house of the appointing authority.
 Sec. 331.003.  TERM OF BOARD. The board is abolished and this
 chapter expires December 31, 2013.
 Sec. 331.004.  ADMINISTRATIVE OFFICER. The State Auditor
 serves as the chief administrative officer of the board.
 Sec. 331.005.  QUORUM; MEETINGS. (a) The board shall meet as
 often as necessary to perform its duties. Meetings may be held at
 any time at the request of either of the joint chairs of the board or
 on written petition of four of the members of the board from each
 house.
 (b)  Beginning July 1, 2009, the board shall meet at least
 once each month in Austin to take testimony and receive evidence
 related to funds received by the state from the Federal government
 for economic stabilization, including funds received under the
 American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5).
 (c)  Except as provided by Subsection (b-1), a majority of
 the members of the board from each house of the legislature
 constitutes a quorum. If a quorum is present, the board may act on
 any matter that is within its jurisdiction by a majority vote.
 (d)  Two members of the board from each house constitutes a
 quorum for the taking of testimony and receiving evidence.
 (e)  Each member of the legislature is entitled to attend and
 present the legislator's views in any meeting of the board, except
 that a legislator who is not a member of the board may not vote.
 (f)  As an exception to Chapter 551 and other law, if a
 meeting is located in Austin and the joint chairs of the board are
 physically present at the meeting, then any number of the other
 members of the board may attend the meeting by use of telephone
 conference call, video conference call, or other similar
 telecommunication device. This subsection applies for purposes of
 constituting a quorum, for purposes of voting, and for any other
 purpose allowing a member of the board to otherwise fully
 participate in any meeting of the board. This subsection applies
 without exception with regard to the subject of the meeting or
 topics considered by the members.
 (g)  A meeting held by use of telephone conference call,
 video conference call, or other similar telecommunication device:
 (1)  is subject to the notice requirements applicable
 to other meetings;
 (2)  must specify in the notice of the meeting the
 location in Austin of the meeting at which the joint chairs will be
 physically present;
 (3)  must be open to the public and shall be audible to
 the public at the location in Austin specified in the notice of the
 meeting as the location of the meeting at which the joint chairs
 will be physically present; and
 (4)  must provide two-way audio communication between
 all members of the board attending the meeting during the entire
 meeting, and if the two-way audio communication link with any
 member attending the meeting is disrupted at any time, the meeting
 may not continue until the two-way audio communication link is
 reestablished.
 Sec. 331.006.  POWERS AND DUTIES. The board shall coordinate
 the auditing and reviews of spending of funds provided to the state
 through the Recovery Act that are conducted by a legislative agency
 to ensure that duplication and overlap of legislative agency work
 is avoided.
 Sec. 331.007.  HEARINGS; INVESTIGATIONS AND SURVEYS.
 (a)  The board may hold public or executive hearings to make
 investigations and surveys.
 (b)  The hearing shall be held at a time and place in the
 state determined by the board.
 (c) The board may:
 (1)  inspect and copy any book, record, file, or other
 instrument or document of a department, institution, county, or
 political subdivision of the state that is pertinent to a matter
 under investigation by the board; and
 (2)  examine and audit the books of a person, firm, or
 corporation having dealings with a department or institution under
 investigation by the board.
 (d)  Any member of the board may administer oaths to
 witnesses appearing at the hearing.
 Sec. 331.008.  SUBPOENAS.  (a)  The board may issue subpoenas
 to compel the attendance of witnesses and the production of books,
 records, or other documents in their custody.
 (b)  A subpoena must be signed by either of the joint chairs
 of the board.
 (c)  The sergeant at arms of either house of the legislature
 or any peace officer shall serve the subpoena in the manner
 prescribed for service of a district court subpoena.
 (d)  If a person to whom a subpoena is directed refuses to
 appear, refuses to answer inquiries, or fails or refuses to produce
 books, records, or other documents that were under the person's
 control when the demand was made, the board shall report the fact to
 a Travis County district court.
 (e)  The district court shall enforce a board subpoena by
 attachment proceedings for contempt in the same manner the court
 enforces a subpoena issued by that court.
 (f)  A subpoenaed witness who attends a board hearing or
 meeting is entitled to the same mileage and per diem as a witness
 who appears before a grand jury of this state.
 Sec. 331.009.  ASSISTANCE FROM OTHER AGENCIES; CONTRACTS.
 (a)  The board may request assistance and advice from a legislative
 agency or any other state officer, department, board, commission,
 or agency, including the governor and the attorney general.
 (b)  Either of the joint chairs may request legal opinions or
 other advice or assistance from:
 (1)  the counsellor of the Texas Fiscal Responsibility
 Office; or
 (2)  the director of the legal division of the Texas
 Legislative Council.
 ARTICLE 6. CONFORMING CHANGES
 SECTION 6.01. Sections 326.001 and 326.003, Government
 Code, are amended to read as follows:
 Sec. 326.001. DEFINITION. In this chapter, "legislative
 agency" means:
 (1) the senate;
 (2) the house of representatives;
 (3) a committee, division, department, or office of
 the senate or house;
 (4) the Texas Legislative Council;
 (5) the Legislative Budget Board;
 (6) the Legislative Reference Library;
 (7) the Texas Fiscal Responsibility Office [office of
 the State Auditor];
 (7-a) the Recovery Act Accountability Board; or
 (8) any other agency in the legislative branch of
 state government.
 Sec. 326.003. COMMITTEE OF TEXAS FISCAL RESPONSIBILITY
 OFFICE [STATE AUDITOR'S] OFFICE, LEGISLATIVE BUDGET BOARD, AND
 SUNSET ADVISORY COMMISSION. (a) The Texas Fiscal Responsibility
 [State Auditor's] Office, Legislative Budget Board, and Sunset
 Advisory Commission shall form a committee to make recommendations
 relating to the coordination of the agencies' functions.
 (b) The committee shall meet on a regular basis at least
 quarterly. The State Auditor shall call each meeting.
 (c) Each agency shall designate a supervisory level staff
 member as its representative on the committee.
 (d) Not later than one month after the date of a meeting, the
 committee shall submit its recommendations in writing to the head
 of each agency and the members of the Legislative Audit Board
 [legislative audit committee].
 SECTION 6.02. Section 783.003(4), Government Code, is
 amended to read as follows:
 Sec. 783.003. DEFINITIONS. In this chapter:
 (4) "State agency" means a state board, commission, or
 department, or office having statewide jurisdiction, but does not
 include a state college or university or an agency of the
 legislative branch.
 ARTICLE 7. TRANSITION PROVISIONS AND EFFECTIVE DATES
 SECTION 7.01. (a) On the effective date of this Act the
 state auditor's office is renamed the Texas Fiscal Responsibility
 Office.
 (b) The validity of an action taken by the state auditor,
 the state auditor's office, or the legislative audit committee is
 not affected by the change in names of the state auditor's office
 and the legislative audit committee.
 (c) On the effective date of this Act:
 (1) all functions, activities, employees, rules,
 forms, money, property, contracts, records, and obligations of the
 state auditor's office become functions, activities, employees,
 rules, forms, money, property, contracts, records, and obligations
 of the Texas Fiscal Responsibility Office without a change in
 status;
 (2) a reference in law to the state auditor's office
 means the Texas Fiscal Responsibility Office; and
 (3) all funds appropriated by the state auditor's
 office, including funds for providing administrative support for
 the state auditor's office, such as funds to pay the salary and
 benefits of employees who provide administrative support, are
 transferred to the Texas Fiscal Responsibility Office.
 SECTION 7.02. (a) In this section, "board," "department,"
 and "office" have the meanings assigned by Section 321.001,
 Government Code, as amended by this Act.
 (c) During the time before the effective date of this Act,
 any person who performs a function related to the investigation of
 fraud or abuse immediately before the effective date of this Act
 continues to keep the same functions that the person had under the
 law as it existed immediately before the effective date of this Act,
 and the former law is continued in effect for that purpose.
 (d) Except as provided by Subsection (c) of this section,
 the powers, duties, and functions of an inspector general or other
 officer or employee of a department that relate to the
 investigation of fraud or abuse are transferred to the State
 Auditor under Subchapter B, Chapter 321, Government Code, as added
 by this Act.
 (e) Except as provided by Subsection (c) of this section,
 the personnel, property, and obligations of an inspector general or
 other officer or employee of the department that relate to the
 investigation of fraud or abuse are transferred to the inspector
 general.
 (f) A department procedure that relates to the
 investigation of fraud or abuse remains in effect as a department
 procedure until procedures are developed by the State Auditor under
 Subchapter B.
 (g) Except as provided by Subsection (c) of this section, a
 reference in law to an inspector general or other officer or
 employee of a department that relates to the investigation of fraud
 or abuse means the State Auditor.
 (h) The validity of a prior action that relates to the
 investigation of fraud or abuse is not affected by the transfer.
 SECTION 7.03. (a) Not later than March 1, 2010, the Texas
 Fiscal Responsibility Office shall develop the standard contract
 provision required by Section 321.026, Government Code, as added by
 this Act.
 (b) A department is not required to comply with Section
 321.026, Government Code, as added by this Act, until September 1,
 2010.
 SECTION 7.04. (a) In this section, "performance review"
 means a function performed by the Legislative Budget Board before
 the effective date of this Act under Section 322.015, 322.016,
 322.0165, 322.017, or 322.018, Government Code.
 (b) On the effective date of this Act, the following are
 transferred from the Legislative Budget Board to the Texas Fiscal
 Responsibility Office:
 (1) all employees whose primary duties involved
 performing or supporting the performance of performance reviews;
 (2) all records and equipment primarily used by the
 board in connection with performance reviews; and
 (3) all appropriations for the state fiscal biennium
 beginning September 1, 2009, made to or budgeted by the board
 specifically for performance reviews.
 (c) If the Legislative Budget Board does not receive
 appropriations specifically designated for performance review
 purposes for the state fiscal biennium beginning September 1, 2009,
 and has not specifically budgeted amounts for performance review
 purposes for that biennium, an amount equal to the amount of
 appropriations specifically designated for or budgeted by the
 Legislative Budget Board for performance review purposes for the
 state fiscal biennium beginning September 1, 2007, is transferred
 from appropriations made to the Legislative Budget Board for the
 state fiscal biennium beginning September 1, 2009, to the Texas
 Fiscal Responsibility Office for that biennium.
 SECTION 7.05. In the event of a conflict between a provision
 of this Act and another Act passed by the 81st Legislature, Regular
 Session, 2009, that becomes law, this Act prevails and controls
 regardless of the relative dates of enactment.
 SECTION 7.06. A person holding an office for which this Act
 alters the duties of that office or serving as a member of a board,
 committee, or council for which this Act alters the composition of
 the board, committee, or council does not vacate the office or the
 board, committee, or council because of the changes made by this Act
 and those persons continue in office or as members of the board,
 committee, or council.
 SECTION 7.07. This Act takes effect immediately if it
 receives a vote of two-thirds of all the members elected to each
 House, as provided by Section 39, Article III, Texas Constitution.
 If this Act does not receive the vote necessary for immediate
 effect, this Act takes effect September 1, 2009.