81R29713 MTB/YDB-F
By: Dunnam, Crownover, Coleman, H.B. No. 2942
Turner of Harris, Gattis
Substitute the following for H.B. No. 2942:
By: Solomons C.S.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;
providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. SHORT TITLE; FINDINGS; PURPOSE
SECTION 1.01. This Act may be cited as the "Texas Government
Accountability and Transparency Act of 2009."
SECTION 1.02. The legislature finds that the public's
confidence in its 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.
SECTION 1.03. The purpose of Article 2 of this Act is to
ensure that the State Auditor and the State Accountability Office
are able to provide the highest level of oversight of government
spending and performance to ensure the greatest possible economy
and efficiency in government.
ARTICLE 2. STATE AUDITOR AND STATE ACCOUNTABILITY OFFICE
SECTION 2.01. The heading to Chapter 321, Government Code,
is amended to read as follows:
CHAPTER 321. STATE ACCOUNTABILITY OFFICE AND STATE AUDITOR
SECTION 2.02. Chapter 321, Government Code, is amended by
designating Sections 321.001 through 321.012 as Subchapter A and
adding a heading for Subchapter A to read as follows:
SUBCHAPTER A. GENERAL PROVISIONS
SECTION 2.03. Section 321.001, Government Code, is amended
by amending Subdivisions (1), (3), and (4) and adding Subdivisions
(4-a) and (4-b) to read as follows:
(1) "Audit plan" means the outline of the office's work
[approved by the committee] for [the 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 [committee].
(4) "Department" includes every state department,
agency, board, bureau, institution, or commission. The term
includes an institution of higher education as defined by Section
61.003, Education Code.
(4-a) "Office" means the State Accountability Office.
(4-b) "Recovery Act" means the American Recovery and
Reinvestment Act of 2009 (Pub. L. No. 111-5) and includes any
subsequent federal economic stimulus legislation.
SECTION 2.04. Subchapter A, Chapter 321, Government Code,
as added by this Act, is amended by adding Sections 321.0011,
321.0014, and 321.0015 to read as follows:
Sec. 321.0011. STATE ACCOUNTABILITY OFFICE. The State
Accountability 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 if
each entity were 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 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 or department and that solicits gifts, grants, and
other donations for any other purpose; and
(6) any public or private person or entity receiving
funds through a governmental entity in this state that were made
available by or provided under the Recovery Act.
Sec. 321.0015. REFERENCES IN LAW. (a) A reference in this
chapter or other law to the state auditor's office means the State
Accountability Office.
(b) A reference in this chapter or other law to the
legislative audit committee means the legislative audit board.
SECTION 2.05. Section 321.002, Government Code, is amended
to read as follows:
Sec. 321.002. LEGISLATIVE AUDIT BOARD [COMMITTEE].
(a) The legislative audit board [committee] consists of:
(1) the lieutenant governor;
(2) the speaker of the house of representatives;
(3) the chair [chairman] of the senate finance
committee;
(4) four other members [one member] of the senate
appointed by the lieutenant governor;
(5) the chair [chairman] of the house appropriations
committee; [and]
(6) the chair [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 chair [chairman] of a house or
senate committee, the vice chair [vice-chairman] of the respective
committee shall act.
(c) Members 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.]
SECTION 2.06. 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 are
not abolished under that chapter. The office and board shall be
reviewed during the periods in which state agencies scheduled to be
abolished in 2013 and every 12th year after that year are reviewed.
SECTION 2.07. Section 321.004, Government Code, is amended
to read as follows:
Sec. 321.004. MEETINGS RELATED TO RECOVERY ACT [PROCEDURE
FOR TIE VOTE]. 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 Recovery Act
funds. This section expires January 1, 2011 [(a) If the full
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 committee shall select a member of the house or senate
to meet with the committee and to cast the tie-breaking vote.
[(b) The seventh member's duty to the committee ends when
the member casts the tie-breaking vote and the matter is resolved].
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 [committee] shall:
(1) administer and enforce this chapter;
(2) [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
Travis County district attorney 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 Travis County district attorney, or the
district or county attorney, as applicable, for the county in which
a civil action regarding the matter would be brought; and
(7) 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. Section 321.008(b), Government Code, is
amended to read as follows:
(b) The State Auditor must file the oath with the secretary
of state not later than the 10th day after the date on which the
board [committee] appointed the State Auditor, or the board
[committee] or a majority of the board [committee] members shall
appoint another qualified person as State Auditor.
SECTION 2.10. Section 321.023, Government Code, is
transferred to Subchapter A, Chapter 321, Government Code, as added
by this Act, 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 "State Accountability Office, State of Texas"
engraved around the margin. The seal shall [to] be used to
authenticate official documents issued by or on the order of the
state auditor.
SECTION 2.11. Section 321.010(a), Government Code, is
amended to read as follows:
(a) The State Auditor shall [may] appoint a first assistant
state auditor with the approval of the board.
SECTION 2.12. Subchapter A, Chapter 321, Government Code,
as added by this Act, is amended by adding Sections 321.0101 and
321.0102 to read as follows:
Sec. 321.0101. COUNSELOR; ADVISORY OPINIONS. (a) The
State Auditor shall appoint a counselor.
(b) The counselor must be an attorney licensed to practice
law in this state.
(c) The counselor 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.
SECTION 2.13. Sections 321.011(a), (b), and (c), Government
Code, are amended to read as follows:
(a) Subject to the General Appropriations Act, and 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, the
[The] State Auditor may:
(1) appoint [may employ a professional staff,
including] assistant state auditors, inspectors general, deputy
inspectors general, assistant inspectors general, and special
agents; and
(2) employ other [stenographic and clerical]
personnel.
(b) The State Auditor shall establish the qualifications
necessary for appointment or employment, including qualifications
regarding necessary legal knowledge, law enforcement experience,
honesty, integrity, education, training, and executive ability. 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 auditors
or stenographic or clerical] personnel at any time for any reason
satisfactory to the State Auditor and without a hearing.
SECTION 2.14. Subchapter A, Chapter 321, Government Code,
is amended by adding Sections 321.0111, 321.0112, and 321.0113 to
read as follows:
Sec. 321.0111. SPECIAL AGENTS. (a) The State Auditor may
employ and commission special agents to assist the office in
carrying out the duties of the office relating to detection,
investigation, and prevention of fraud, waste, and abuse.
(b) A special agent employed by the office is not:
(1) a peace officer but has the powers of search and
seizure, as to felony offenses only, under the laws of this state;
or
(2) entitled to supplemental benefits from the law
enforcement and custodial officer supplemental retirement fund
unless the officer transfers from a position, without a break in
service, that qualifies for supplemental retirement benefits from
the fund.
(c) An assistant state auditor, inspector general, deputy
inspector general, or assistant inspector general may be
commissioned under this section.
(d) The State Auditor may not commission more than 20
special agents at any time.
Sec. 321.0112. EXPERTS. Subject to the availability of
funds, the State Auditor may contract with certified public
accountants, qualified management consultants, or other
professional experts as necessary to independently perform the
functions of the office under this chapter or other law.
Sec. 321.0113. PERSONNEL; POLITICAL INFLUENCE. (a) The
State Auditor and office personnel 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 office so that the
State Auditor may render to the legislature the service the
legislature has a right to expect.
(b) It is against public policy and a criminal offense 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.
An offense under this section is a Class A misdemeanor.
SECTION 2.15. Sections 321.012(a) and (c), Government Code,
are amended to read as follows:
(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 audit plan].
(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.
SECTION 2.16. Subchapter A, Chapter 321, Government Code,
as added by this Act, is amended by adding Sections 321.0121 through
321.0124 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 and that is
not confidential by law 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 2.17. Chapter 321, Government Code, is amended by
designating Sections 321.013 through 321.022 as Subchapter B and
adding a heading for Subchapter B to read as follows:
SUBCHAPTER B. AUDITS AND INVESTIGATIONS
SECTION 2.18. The heading for Section 321.013, Government
Code, is amended to read as follows:
Sec. 321.013. ADDITIONAL POWERS AND DUTIES OF STATE
AUDITOR.
SECTION 2.19. Sections 321.013(a), (c), and (f), Government
Code, are amended to read as follows:
(a) The State Auditor shall conduct audits of all
departments, including institutions of higher education, as
specified in the audit plan. The [At the direction of the
committee, the] State Auditor may [shall] conduct an audit or
investigation of any entity receiving funds from the state.
(c) The State Auditor shall prepare an [recommend the] 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 the office [State Auditor's 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 board [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. The State Auditor shall conduct or
direct investigations as necessary.
SECTION 2.20. 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 chairs of the committees of
each house with oversight responsibility for the agency, and the
administrative head and the chair [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 chairs
of the committees of each house with oversight responsibility for
the agency, the Travis County district attorney or the prosecuting
attorney of the county in which the offense is alleged to have
occurred, and any other [the] appropriate legal authority.
(c) Immediately after the board [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 chair [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 2.21. Section 321.018, Government Code, is amended
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, a special agent of the office [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.
SECTION 2.22. The heading to Section 321.019, Government
Code, is amended to read as follows:
Sec. 321.019. INTERFERENCE WITH AUDIT OR INVESTIGATION;
CRIMINAL OFFENSE.
SECTION 2.23. Section 321.019, Government Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) An offense under this section is a Class A misdemeanor,
except that the offense is a felony of the third degree if the audit
or investigation is related to funds made available by or provided
under the Recovery Act.
(c) An offense under this section may be prosecuted in the
county in which an element of the offense occurs or in Travis
County.
SECTION 2.24. Subchapter B, Chapter 321, Government Code,
as added by this Act, is amended by adding Section 321.0191 and
Sections 321.023 through 321.027 to read as follows:
Sec. 321.0191. REQUEST FOR INFORMATION; CIVIL PENALTY. (a)
The State Auditor may serve on the officer or employee of a
department or an entity subject to audit or investigation under
this chapter written requests for information or inspection of
property. A request under this section must:
(1) identify and describe with reasonable
particularity the information sought, documents to be produced, or
other property to which access is requested; and
(2) 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 before the 25th hour 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 Recovery Act.
(c) The attorney general, the Travis County district
attorney, or the prosecuting attorney of the county in which a
violation is alleged to have occurred may sue to collect the
penalty.
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 to be 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 department or any
entity subject to audit or investigation under this chapter.
(c) The State Auditor shall establish an Internet web page
that permits a person to obtain information and report violations
as provided by Subsection (b).
(d) Each department and each entity subject to audit or
investigation under this chapter that maintains one or more
Internet web pages shall post on the department's or entity's home
page a prominent link to the Internet web page maintained by the
State Auditor under this section.
Sec. 321.025. LEGAL ASSISTANCE. On request of the State
Auditor, the Travis County district attorney 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. REFERRAL OF CERTAIN MATTERS. (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 Travis County district
attorney or the prosecuting attorney of the county in which an
offense or impropriety is alleged to have occurred and recommend
that the attorney pursue the recovery of state funds.
(b) After receiving a referral from the office under this
section, the Travis County district attorney or the prosecuting
attorney of the county in which an offense or impropriety 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 attorney intends to
pursue the recovery of state funds.
Sec. 321.027. REFERRAL OF MATTERS RELATED TO RECOVERY ACT.
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 a county in
which an element of the offense occurs or in Travis County.
SECTION 2.25. Sections 322.015, 322.016, 322.0165,
322.017, and 322.018, Government Code, are transferred to Chapter
321, Government Code, renumbered as Sections 321.051, 321.052,
321.053, 321.054, and 321.055, Government Code, respectively,
designated as Subchapter C, Chapter 321, Government Code, and
amended, and a heading is added for Subchapter C, Chapter 321,
Government Code, 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.
SECTION 2.26. Chapter 321, Government Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. INSPECTOR GENERAL DIVISION
Sec. 321.101. DEFINITIONS. In this subchapter:
(1) "Agency" means a state agency subject to this
chapter under Section 321.102.
(2) "Commission" means the Health and Human Services
Commission.
(3) "Division" means the inspector general division.
(4) "Fraud" means an intentional deception or
misrepresentation made by a person with the knowledge that the
deception could result in some unauthorized benefit to that person
or some other person. The term includes any act that constitutes
fraud under applicable federal or state law.
(5) "Furnished," in reference to items or services:
(A) means items or services provided directly by,
provided under the direct supervision of, or ordered by:
(i) a physician or other individual
licensed under state law to practice the individual's profession,
either as an employee or in the individual's own capacity;
(ii) a provider; or
(iii) another supplier of services; and
(B) does not include services ordered by one
party but billed for and provided by or under the supervision of
another.
(6) "Hold on payment" means the temporary denial of
reimbursement under a federal program for items or services
furnished by a specified provider.
(7) "Inspector general" means the inspector general
appointed under Section 321.106.
(8) "Program exclusion" means the suspension of a
provider's authorization under a federal program to request
reimbursement for items or services furnished by that provider.
(9) "Provider" means a person, firm, partnership,
corporation, agency, association, institution, or other entity
that was or is approved by the commission to provide:
(A) medical assistance under contract or
provider agreement with the commission; or
(B) third-party billing vendor services under a
contract or provider agreement with the commission.
(10) "Review" includes an audit, inspection,
investigation, evaluation, or similar activity.
(11) "State funds" or "state money" includes federal
funds or money received and appropriated by the state or for which
the state has oversight responsibility.
Sec. 321.102. APPLICABILITY. (a) Except as provided by
Subsection (c), this chapter applies only to the:
(1) Health and Human Services Commission;
(2) Texas Education Agency; and
(3) Texas Department of Transportation.
(b) A state agency, other than the Texas Youth Commission or
the Texas Department of Criminal Justice, may not establish an
office of inspector general without specific legislative
authorization.
(c) A health and human services agency as defined by Section
531.001 is an agency to which this subchapter applies for purposes
related to the review and investigatory authority of the division.
Sec. 321.103. REFERENCE IN OTHER LAW. (a) Notwithstanding
any other provision of law, a reference in law or rule to an
agency's office of inspector general means, for an agency to which
this chapter applies, the division established under this
subchapter.
(b) Notwithstanding any other provision of law, with regard
to responsibilities that do not inherently involve the execution of
the laws and in accordance with this subchapter, a reference in law
or rule to the commission's office of investigations and
enforcement or the commission's office of inspector general means
the division established under this subchapter.
Sec. 321.104. ADMINISTRATIVE ATTACHMENT. A person
designated by the inspector general to serve as the deputy
inspector general for an agency, together with staff assigned to
the deputy inspector general, are administratively attached to the
assigned agency. The inspector general, a deputy inspector
general, and division personnel are not employees of the assigned
agency.
Sec. 321.105. SERVICE LEVEL AGREEMENT. (a) The division
and each state agency to which this subchapter applies shall enter
into a service level agreement that establishes the performance
standards and deliverables with regard to administrative support
provided to the division by the agency.
(b) The service level agreement must be reviewed at least
annually to ensure that services and deliverables are provided in
accordance with the agreement.
Sec. 321.106. APPOINTMENT. The state auditor shall appoint
a person as inspector general to serve as director of the division.
The inspector general serves at the pleasure of the state auditor.
Sec. 321.107. CONFLICT OF INTEREST. (a) A division officer
or employee may not serve as an ex officio member on the governing
body of a governmental entity.
(b) A division officer or employee may not have a financial
interest in the transactions of the division or an agency to which
this subchapter applies.
(c) A division officer or employee may not have a financial
interest in the transactions of a provider.
Sec. 321.108. DEPUTY INSPECTORS GENERAL. (a) The
inspector general, as necessary to implement this subchapter, shall
designate persons to serve as deputy inspectors general for each
agency to which this subchapter applies.
(b) A deputy inspector general shall report to and perform
duties as directed by the inspector general.
(c) Each agency to which this subchapter applies shall
provide to the agency's designated deputy inspector general
facilities and support services, including suitable office space,
furniture, computer and communications equipment, administrative
support, and salary and benefits as provided by the General
Appropriations Act.
Sec. 321.109. TRAINING. The inspector general shall train
division personnel to pursue, efficiently and as necessary, fraud,
waste, and abuse in programs at an agency to which this subchapter
applies or other state or federally funded programs implemented,
administered, or overseen by or for the agency.
Sec. 321.110. ASSISTANCE BY AGENCY EMPLOYEES. (a) The
inspector general may require employees of an agency to which this
subchapter applies to provide assistance to the division in
connection with the division's duties relating to the investigation
of fraud, waste, and abuse in the provision of services for programs
at an agency to which this subchapter applies or state or federally
funded programs implemented, administered, or overseen by or for
the agency.
(b) The inspector general or the deputy inspector general
for the commission may also require employees of any health and
human services agency to provide assistance under Subsection (a).
Sec. 321.111. INSPECTOR GENERAL RESPONSIBILITIES. (a) The
division shall investigate fraud, waste, and abuse, as defined in
applicable state and federal law, in the provision or funding of
services by or for an agency to which this subchapter applies or
under a program implemented, administered, or overseen by or for
the agency.
(b) The inspector general shall set clear objectives,
priorities, and performance standards for the division that
emphasize:
(1) coordinating investigative efforts with other
governmental entities that have the authority to aggressively
recover money;
(2) allocating resources so that those entities have
the strongest supportive evidence and the greatest potential for
recovery of money; and
(3) maximizing opportunities for referral of cases to
the office of the attorney general in accordance with this
subchapter and other applicable law.
(c) In addition to performing functions and duties
otherwise provided by law, the division may:
(1) provide for coordination between the division and
special investigative units formed by managed care organizations
under Section 531.113 or entities with which managed care
organizations contract under that section;
(2) audit the use and effectiveness of state or
federal funds, including contract and grant funds, administered by
a person or an agency to which this subchapter applies;
(3) conduct reviews, investigations, and inspections
relating to the funds described by Subdivision (2);
(4) recommend policies promoting economical and
efficient administration of the funds described by Subdivision (2)
and the prevention and detection of fraud, waste, and abuse in
administration of those funds; and
(5) conduct investigations in instances of fraud,
waste, and abuse and in instances of misconduct by employees,
contractors, subcontractors, and vendors.
(d) The division shall:
(1) investigate fraud, waste, and abuse in the
provision or funding of health or human services by this state;
(2) determine and report regarding whether there is
adequate enforcement of state law relating to the provision of
those services; and
(3) alert the appropriate law enforcement authorities
to enable the authorities to prevent and detect crime relating to
the provision of those services.
Sec. 321.112. STATE AUDITOR AUDITS, INVESTIGATIONS, AND
ACCESS TO INFORMATION NOT IMPAIRED. This subchapter or other law
related to the operation of the division does not:
(1) take precedence over other authority of the state
auditor to conduct audits under this chapter or other law; or
(2) affect the state auditor's authority under another
provision of this chapter to conduct an audit, investigation, or
other review or to have full and complete access to all records and
other information, including witnesses and electronic data, that
the state auditor considers necessary for the audit, investigation,
or other review.
Sec. 321.113. INTERAGENCY COORDINATION. (a) An exchange
of information under this section between the division and the
attorney general or any other state agency does not affect whether
the information is subject to disclosure under Chapter 552.
(b) With respect to Medicaid fraud, the division shall
ensure that no barriers to direct fraud referrals to the attorney
general's Medicaid fraud control unit or unreasonable impediments
to communication between Medicaid agency employees and the Medicaid
fraud control unit are imposed.
Sec. 321.114. REVIEW, INVESTIGATION, AND AUDIT AUTHORITY.
(a) The division may evaluate any activity or operation of an
agency to which this subchapter applies, a provider, if applicable,
or a person in this state that is related to the investigation,
detection, or prevention of fraud, waste, abuse, or employee
misconduct in a program at an agency to which this subchapter
applies or in a state or federally funded program implemented,
administered, or overseen by or for the agency. A review may
include an investigation or other inquiry into a specific act or
allegation of, or a specific financial transaction or practice that
may involve, impropriety, malfeasance, or nonfeasance in the
obligation, spending, receipt, or other use of state or federal
money.
(b) The division shall conduct reviews and inspections to
protect the public and detect and prevent fraud, waste, and abuse in
the provision or funding of services or programs described by
Subsection (a).
(c) With respect to an agency to which this subchapter
applies, the division may audit and review the use and
effectiveness of state or federal funds, including contract and
grant funds, administered by a person or agency receiving the funds
in connection with an agency or state or federally funded program
implemented, administered, or overseen by or for the agency.
Sec. 321.115. INITIATION OF REVIEW. The inspector general
may initiate a review:
(1) on the inspector general's own initiative;
(2) at the request of an agency to which this
subchapter applies or the governing body or governing officer of
the agency; or
(3) based on a complaint from any source concerning a
matter described by Section 321.114.
Sec. 321.116. INTEGRITY REVIEW FOR MEDICAID PROGRAM. (a)
The division shall conduct an integrity review to determine whether
there is sufficient basis to warrant a full investigation on
receipt of any complaint of fraud, waste, or abuse of funds in the
state Medicaid program from any source.
(b) An integrity review under this section must begin not
later than the 30th day after the date the division receives a
complaint or has reason to believe that Medicaid fraud, waste, or
abuse has occurred. An integrity review shall be completed not
later than the 90th day after the date the review began.
(c) If the findings of an integrity review give the division
reason to believe that an incident of fraud involving possible
criminal conduct has occurred in the state Medicaid program, the
division must take the following action, as appropriate, not later
than the 30th day after the completion of the integrity review:
(1) if a provider is suspected of fraud involving
criminal conduct, the office must refer the case to the state's
Medicaid fraud control unit, provided that the criminal referral
does not preclude the division from continuing its investigation of
the provider, making an additional criminal referral to the
appropriate prosecuting attorney, or recommending the imposition
of appropriate administrative or civil sanctions; or
(2) if there is reason to believe that a recipient of
funds has defrauded the Medicaid program, the division may conduct
a full investigation of the suspected fraud.
Sec. 321.117. ACCESS TO INFORMATION. (a) To further a
review conducted by the division, the inspector general or a deputy
inspector general is entitled to access all books, records,
accounts, documents, reports, vouchers, databases, systems, or
other information, including confidential information, electronic
data, and internal records relevant to the functions of the
division that are maintained by or for a person, state agency, or
provider, if applicable, in connection with an agency to which this
subchapter applies or a state or federally funded program
implemented, administered, or overseen by or for the agency.
(b) The inspector general or deputy inspector general may
not access data or other information the release of which is
restricted under federal law unless the appropriate federal agency
approves the release to the division or its agent.
Sec. 321.118. COOPERATION REQUIRED. To further a review
conducted by the division, the inspector general or deputy
inspector general may require medical or other professional
assistance from an agency to which this subchapter applies or an
auditor, accountant, or other employee of the agency.
Sec. 321.119. REFERRAL TO STATE MEDICAID FRAUD CONTROL
UNIT. (a) At the time the division learns or has reason to suspect
that a health or human services provider's records related to
participation in the state Medicaid program are being withheld,
concealed, destroyed, fabricated, or in any way falsified, the
division shall immediately refer the case to the state's Medicaid
fraud control unit.
(b) A criminal referral under Subsection (a) does not
preclude the division from continuing its investigation of a health
or human services provider or the imposition by the appropriate
agency of appropriate administrative or civil sanctions.
Sec. 321.120. HOLD ON CLAIM REIMBURSEMENT PAYMENT;
EXCLUSION FROM PROGRAMS. (a) In addition to other instances
authorized under state or federal law, the division shall whenever
appropriate recommend that the comptroller impose without prior
notice a hold on payment of claims for reimbursement submitted by a
health or human services provider to compel production of records
related to participation in the state Medicaid program or on
request of the state's Medicaid fraud control unit, as applicable.
(b) The comptroller must notify the health or human services
provider of the hold on payment not later than the fifth working day
after the date the payment hold is imposed.
(c) The comptroller shall, in consultation with the
division and the state's Medicaid fraud control unit, establish
guidelines under which holds on payment or exclusions from a health
and human services program:
(1) may permissively be imposed on a health or human
services provider; or
(2) shall automatically be imposed on a provider.
(d) A health or human services provider subject to a hold on
payment or excluded from a program under this section is entitled to
a hearing on the hold or exclusion. A hearing under this subsection
is a contested case hearing under Chapter 2001. The State Office of
Administrative Hearings shall conduct the hearing. After the
hearing, the comptroller, subject to judicial review, shall make a
final determination. The commission, a health and human services
agency, and the attorney general are entitled to intervene as
parties in the contested case.
Sec. 321.121. REQUEST FOR EXPEDITED HEARING. (a) On timely
written request by a health or human services provider subject to a
hold on payment under Section 321.120, other than a hold requested
by the state's Medicaid fraud control unit, the comptroller shall
file a request with the State Office of Administrative Hearings for
an expedited administrative hearing regarding the hold.
(b) The health or human services provider must request an
expedited hearing not later than the 10th day after the date the
provider receives notice from the comptroller under Section
321.120(b).
Sec. 321.122. INFORMAL RESOLUTION. (a) The comptroller
shall adopt rules that allow a health or human services provider
subject to a hold on payment under Section 321.120, other than a
hold requested by the state's Medicaid fraud control unit, to seek
an informal resolution of the issues identified by the comptroller
in the notice provided under that section.
(b) A health or human services provider that seeks an
informal resolution must do so not later than the 10th day after the
date the provider receives notice from the comptroller under
Section 321.120(b).
(c) A health or human services provider's decision to seek
an informal resolution does not extend the time by which the
provider must request an expedited administrative hearing under
Section 321.121.
(d) A hearing initiated under Section 321.120 shall be
stayed at the comptroller's request until the informal resolution
process is completed.
Sec. 321.123. EMPLOYEE REPORTS. The state auditor may
require employees at an agency to which this subchapter applies to
report to the division information regarding fraud, waste, misuse
or abuse of funds or resources, corruption, or illegal acts.
Sec. 321.124. INTERNAL AUDITOR. (a) In this section,
"internal auditor" means a person appointed under Section 2102.006.
(b) The internal auditor for an agency to which this
subchapter applies shall provide the state auditor with a copy of
the agency's internal audit plan to:
(1) assist in the coordination of efforts between the
state auditor and the internal auditor; and
(2) limit duplication of effort regarding reviews by
the state auditor and internal auditor.
(c) The internal auditor shall provide to the state auditor
all final audit reports concerning audits of any:
(1) part or division of the agency;
(2) contract, procurement, or grant; and
(3) program conducted by the agency.
Sec. 321.125. COOPERATION WITH LAW ENFORCEMENT OFFICIALS
AND OTHER ENTITIES. (a) The state auditor may provide information
and evidence relating to criminal acts to appropriate law
enforcement officials.
(b) The state auditor may refer matters for further civil,
criminal, and administrative action to appropriate administrative
and prosecutorial agencies.
Sec. 321.126. PREVENTION. (a) The state auditor may
recommend to an agency to which this subchapter applies or the
presiding officer of the agency policies on:
(1) promoting economical and efficient administration
of state or federal funds administered by an individual or entity
that received the funds from a state agency; and
(2) preventing and detecting fraud, waste, and abuse
in the administration of those funds.
(b) The state auditor may provide training or other
education regarding the prevention of fraud, waste, and abuse to
employees of a state agency. The training or education provided
must be approved by the presiding officer of the agency.
Sec. 321.127. PERIODIC REPORTING REQUIRED. The state
auditor shall timely inform the governor, the attorney general, and
the presiding officer of the relevant agency of the initiation of a
review of an agency program and the ongoing status of the review.
Sec. 321.128. REPORT OF FINDINGS. The state auditor shall
report the findings of the division in connection with a review
conducted under this subchapter to:
(1) the presiding officer of the agency;
(2) the governor;
(3) the lieutenant governor;
(4) the speaker of the house of representatives;
(5) the comptroller; and
(6) the attorney general.
Sec. 321.129. FLAGRANT VIOLATIONS; IMMEDIATE REPORT. The
state auditor shall immediately report to the presiding officer of
the agency associated with the review, the governor, and any other
person the state auditor considers necessary a particularly serious
or flagrant problem relating to the administration of a program,
operation of the agency, or interference with a review by the state
auditor.
Sec. 321.130. INFORMATION CONFIDENTIAL. (a) Except as
provided by this subchapter, all information and material compiled
by the state auditor during a review under this subchapter is:
(1) confidential and not subject to disclosure under
Chapter 552; and
(2) not subject to disclosure, discovery, subpoena, or
other means of legal compulsion for release to anyone other than the
state auditor's office or the agency that is the subject of a
review.
(b) As the state auditor determines appropriate,
information relating to a review may be disclosed to:
(1) a law enforcement agency;
(2) the appropriate prosecuting attorney;
(3) the attorney general; or
(4) the agency that is the subject of a review.
(c) A person that receives information under Subsection (b)
may not disclose the information except to the extent that
disclosure is consistent with the authorized purpose for which the
person received the information.
Sec. 321.131. DRAFT OF FINAL REVIEW REPORT; AGENCY
RESPONSE. (a) Except in cases in which the division has determined
that potential fraud, waste, or abuse exists, the state auditor
shall provide a draft of the final review report of any
investigation, audit, or review of the operations of an agency to
the presiding officer of the agency before publishing the state
auditor's final review report.
(b) The presiding officer of the agency may provide a
response to the draft report in the manner prescribed by the state
auditor not later than the 10th day after the date the draft report
is received by the agency. The state auditor may specify the format
of and requirements for the agency response.
(c) Notwithstanding Subsection (a), the division may not
provide a draft report to the presiding officer of the agency if in
the state auditor's opinion providing the draft report could
negatively affect any anticipated civil or criminal proceedings.
(d) The state auditor may include any portion of the
agency's response in the final report.
Sec. 321.132. FINAL REVIEW REPORTS; AGENCY RESPONSE. (a)
The state auditor shall prepare a final report for each review
conducted under this subchapter. The final report must include:
(1) a summary of the activities performed by the state
auditor in conducting the review;
(2) a determination of whether wrongdoing was found;
and
(3) a description of any findings of wrongdoing.
(b) The state auditor's final review reports are subject to
disclosure under Chapter 552.
(c) All working papers and other documents related to
compiling the final review reports remain confidential and are not
subject to disclosure under Chapter 552.
(d) Not later than the 60th day after the date the state
auditor issues a final report under this subchapter that identifies
deficiencies or inefficiencies in, or recommends corrective
measures in the operations of, an agency, the agency shall file a
response that includes:
(1) an implementation plan and timeline for
implementing corrective measures; or
(2) the agency's rationale for declining to implement
corrective measures for the identified deficiencies or
inefficiencies or the state auditor's recommended corrective
measures, as applicable.
Sec. 321.133. COSTS. (a) The state auditor shall maintain
information regarding the cost of reviews.
(b) The state auditor may cooperate with appropriate
administrative and prosecutorial agencies, including the attorney
general, in recovering costs incurred under this subchapter from
nongovernmental entities, including contractors or individuals
involved in:
(1) violations of applicable state or federal rules or
statutes;
(2) abusive or wilful misconduct; or
(3) violations of a provider contract or program
policy.
Sec. 321.134. SEMIANNUAL REPORT. The state auditor shall
prepare and submit a semiannual report to the governor, the
lieutenant governor, the speaker of the house of representatives,
the attorney general, the comptroller, and each member of the
legislature concerning the activities of the division in detecting
and preventing fraud, waste, and abuse under any agency programs or
in programs receiving state or federal funds that are implemented,
administered, or overseen by a state agency that is reviewed by the
division under this chapter. The report may be consolidated with
any other report relating to the same subject matter the state
auditor is required to submit under other law.
SECTION 2.27. (a) Sections 321.011(d) and (e), Government
Code, are repealed.
(b) To the extent of a conflict between Subchapter D,
Chapter 321, Government Code, as added by this Act, and Chapter 531,
Government Code, Subchapter D, Chapter 321, prevails.
ARTICLE 3. LEGISLATIVE BUDGET BOARD
SECTION 3.01. Section 322.001(a), Government Code, is
amended to read as follows:
(a) The Legislative Budget Board consists of:
(1) the lieutenant governor;
(2) the speaker of the house of representatives;
(3) the chair [chairman] of the senate finance
committee;
(4) the chair [chairman] of the house appropriations
committee;
(5) the chair [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 3.02. Chapter 322, Government Code, is amended by
adding Section 322.002 to read as follows:
Sec. 322.002. 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 scheduled to be abolished in 2013 and every
12th year after that year are reviewed.
SECTION 3.03. Chapter 322, Government Code, is amending by
adding Section 322.0031 to read as follows:
Sec. 322.0031. MEETINGS RELATED TO RECOVERY ACT. 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
section expires January 1, 2011.
ARTICLE 4. TEXAS LEGISLATIVE COUNCIL
SECTION 4.01. 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 chair [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 4.02. 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 scheduled to be abolished in 2013
and every 12th year after that year are reviewed.
SECTION 4.03. Section 323.0145(a), Government Code, is
amended by amending Subdivision (2) and adding Subdivision (3) to
read as follows:
(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; and
(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) and includes any
subsequent federal economic stimulus legislation.
SECTION 4.04. Section 323.0145(b), Government Code, is
amended to read as follows:
(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 5. LEGISLATIVE REFERENCE LIBRARY
SECTION 5.01. 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 scheduled to
be abolished in 2013 and every 12th year after that year are
reviewed.
SECTION 5.02. Section 324.004, Government Code, is amended
by amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) The board consists of:
(1) the lieutenant governor;
(2) the speaker of the house of representatives;
(3) the chair [chairman] of the house appropriations
committee;
(4) four [two] members of the senate appointed by the
lieutenant governor; and
(5) three [one] other members [member] of the house
appointed by the speaker.
(b-1) The lieutenant governor and the speaker are joint
chairs of the board.
SECTION 5.03. Chapter 324, Government Code, is amended 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 state or local governmental entity and each private
entity receiving, disbursing, investigating, auditing, or
reporting the use of Recovery Act funds received by or through a
governmental entity in this state shall provide the library with a
copy of each Recovery Act publication produced, assembled, or
maintained by the entity.
(c) To the extent feasible, the library shall make Recovery
Act publications available for public viewing on the Internet.
(d) In this section:
(1) "Recovery Act" means the American Recovery and
Reinvestment Act of 2009 (Pub. L. No. 111-5) and includes any
subsequent federal economic stimulus legislation.
(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 the receipt, disbursement, expenditure, or audit of
Recovery Act funds, including a report regarding Recovery Act
funds, that:
(i) is produced, assembled, or maintained
by or for a state or local governmental entity receiving Recovery
Act funds or an entity receiving Recovery Act funds through a
governmental entity in this state; and
(ii) is distributed to persons outside the
entity or distributed to persons within the entity; and
(B) does not include information the
distribution of which is limited to members of the public under a
request made under Chapter 552.
ARTICLE 6. SUNSET ADVISORY COMMISSION
SECTION 6.01. Chapter 325, Government Code, is amended by
adding Section 325.0115 to read as follows:
Sec. 325.0115. CRITERIA FOR REVIEW OF CERTAIN LEGISLATIVE
AGENCIES. (a) Notwithstanding Section 325.011, for the initial
review of a legislative agency, board, or council subject to review
under this chapter in 2013, the commission and its staff may only
consider the extent to which the agency, board, or council
discharged its responsibilities related to Recovery Act funds under
this subtitle and any other applicable law.
(b) In this section, "Recovery Act" means the American
Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5) and
includes any subsequent federal economic stimulus legislation.
(c) This section expires January 1, 2014.
ARTICLE 7. RECOVERY ACT ACCOUNTABILITY BOARD
SECTION 7.01. 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) and includes any
subsequent federal economic stimulus legislation.
(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 State Accountability 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, designated by the
lieutenant governor, and one house member, designated by the
speaker, of the Legislative Audit Board;
(D) one senate member, designated by the
lieutenant governor, and one house member, designated by the
speaker, of the Legislative Budget Board;
(E) one senate member, designated by the
lieutenant governor, and one house member, designated by the
speaker, of the Texas Legislative Council;
(F) one senate member, designated by the
lieutenant governor, and one house member, designated by the
speaker, of the Sunset Advisory Commission;
(G) one senate member, designated by the
lieutenant governor, and one house member, designated by the
speaker, of the Legislative Library Board;
(H) the chair and vice chair of the House Select
Committee on Federal Economic Stabilization Funding;
(I) four other members of the senate, designated
by the lieutenant governor;
(J) four other members of the house, designated
by the speaker;
(K) two public members appointed by the
lieutenant governor; and
(L) two public members appointed by the speaker;
and
(2) the following nonvoting members:
(A) four members of the United States Congress
from this state, with two members selected by the members of each
political party required by law to hold a primary; and
(B) the chief administrative officer of each
legislative agency, except the State Accountability Office.
(b) One of the members appointed under Subsection (a)(1)
must be the chair of the Senate Finance Committee. One other member
appointed under Subsection (a)(1) must be the chair of the House
Appropriations Committee.
(c) The lieutenant governor and the speaker are joint chairs
of the board.
(d) A legislative member serving on the board because of the
member's service on another board, commission, or committee serves
a term coinciding with the member's service on the other board,
commission, or committee. 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 board
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; EXPIRATION. The board is
abolished and this chapter expires December 31, 2013.
Sec. 331.004. ADMINISTRATIVE OFFICER. The board shall
select a chief administrative officer of the board. An officer or
employee of a legislative agency, other than the State
Accountability Office, is eligible for appointment under this
section.
Sec. 331.005. MEETINGS. 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 governmental entities
in this state from the federal government for economic
stabilization, including funds received under the Recovery Act.
Sec. 331.006. POWERS AND DUTIES. The board:
(1) shall coordinate reviews of spending of Recovery
Act funds conducted by a legislative agency to ensure that
duplication and overlap of legislative agency work is avoided;
(2) may hold hearings and conduct investigations and
surveys as provided by Section 331.008;
(3) shall ensure the public has access to vital
information related to the expenditure of Recovery Act funds;
(4) may prescribe performance measures in addition to
those prescribed by Section 331.007;
(5) may make recommendations regarding interagency
coordination, opportunities that concern multiple units of
government, and opportunities for public-private partnerships
using Recovery Act funds; and
(6) may appoint advisory committees as necessary to
assist the board.
Sec. 331.007. RECIPIENT AGENCY REPORTS; PERFORMANCE
MEASURES. Not later than the 10th day after the date a state fiscal
quarter ends, each governmental entity that receives Recovery Act
funds shall submit a report to the board that contains:
(1) the amount of Recovery Act funding received by a
public or private entity by or through the governmental entity
under the Act;
(2) the citation to the specific provision 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 spending limitations, state match
or cost share requirements, percentage limitations, and
timeframes;
(5) the date on which each type of Recovery Act funding
discussed in the report 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 to be needed to oversee or administer
Recovery Act funds;
(8) current plans for addressing how each agency will
conduct its operations when Recovery Act funds end;
(9) a detailed list of all projects or activities for
which Recovery Act funds were expended or obligated, including:
(A) the name of the project or activity;
(B) a description of the project or activity; and
(C) an evaluation of the completion status of the
project or activity;
(10) an assessment of the performance of all Recovery
Act funds expended or obligated relating to specific performance
measures, including:
(A) the number of new jobs created in this state;
(B) the number of new jobs created in small and
medium-sized businesses;
(C) the estimated economic benefit for small and
medium-sized businesses;
(D) the number of new jobs created in women-owned
and minority-owned businesses;
(E) the estimated economic benefit for
women-owned and minority-owned businesses;
(F) the number of new jobs created in distressed
areas;
(G) the estimated economic benefit in distressed
areas;
(H) the number of new jobs created at or above the
median hourly wage in this state;
(I) the increase in jobs providing access to
employer-sponsored health insurance; and
(J) any other performance measures prescribed by
the board; and
(11) an impact statement detailing the impact, if any,
of Recovery Act funds on:
(A) the extent to which electric utility
customers in this state have increased access to renewable energy;
(B) carbon emissions in this state resulting from
energy and transportation projects, including any emissions
reductions; and
(C) the extent to which per capita electric usage
in this state is reduced as a result of energy efficiency
initiatives.
Sec. 331.008. HEARINGS; INVESTIGATIONS AND SURVEYS. (a)
The board may make investigations and surveys regarding funds
received by governmental entities in this state from the federal
government for economic stabilization, including Recovery Act
funds, and may hold public or executive hearings in connection with
those investigations and surveys.
(b) A 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 governmental entity in this 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 governmental entity under
investigation by the board.
(d) Any member of the board may administer oaths to
witnesses appearing at the hearing.
Sec. 331.009. 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. 331.010. 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 counselor of the State Accountability Office;
or
(2) the director of the legal division of the Texas
Legislative Council.
ARTICLE 8. PROVISIONS APPLICABLE TO ALL LEGISLATIVE AGENCIES
SECTION 8.01. The heading to Chapter 326, Government Code,
is amended to read as follows:
CHAPTER 326. PROVISIONS GENERALLY APPLICABLE TO [COOPERATION
BETWEEN] LEGISLATIVE AGENCIES AND OVERSIGHT COMMITTEES
SECTION 8.02. Chapter 326, Government Code, is amended by
designating Sections 326.001 through 326.003 as Subchapter A and
adding a heading for Subchapter A to read as follows:
SUBCHAPTER A. COOPERATION BETWEEN LEGISLATIVE AGENCIES
SECTION 8.03. Section 326.001, Government Code, is amended
to read as follows:
Sec. 326.001. DEFINITION. In this subchapter [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 [office of the] State Accountability Office
[Auditor];
(7-a) the Recovery Act Accountability Board; or
(8) any other agency in the legislative branch of
state government.
SECTION 8.04. The heading to Section 326.003, Government
Code, is amended to read as follows:
Sec. 326.003. COMMITTEE OF STATE ACCOUNTABILITY
[AUDITOR'S] OFFICE, LEGISLATIVE BUDGET BOARD, AND SUNSET ADVISORY
COMMISSION.
SECTION 8.05. Sections 326.003(a) and (d), Government Code,
are amended to read as follows:
(a) The State Accountability [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.
(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
[committee].
SECTION 8.06. Chapter 326, Government Code, is amended by
adding Subchapter B to read as follows:
SUBCHAPTER B. QUORUM AND MEETINGS
Sec. 326.021. DEFINITION. In this subchapter, "legislative
entity" means:
(1) the Legislative Audit Board;
(2) the Legislative Budget Board;
(3) the Legislative Library Board;
(4) the Texas Legislative Council;
(5) the Recovery Act Accountability Board; and
(6) any other oversight committee created under this
subtitle.
Sec. 326.022. CONFLICT WITH OTHER LAW. To the extent of a
conflict between this subchapter and any other provision of this
subtitle, the other provision of this subtitle prevails.
Sec. 326.023. QUORUM. (a) Except as provided by Subsection
(b), a majority of the members of a legislative entity from each
house constitutes a quorum to transact business. If a quorum is
present, the legislative entity may act on any matter that is within
its jurisdiction by a majority vote.
(b) Two members of a legislative entity from each house
constitutes a quorum for the taking of testimony and receiving
evidence.
Sec. 326.024. MEETINGS. (a) A legislative entity shall
meet as often as necessary to perform its duties. A legislative
entity shall meet at least once every six months. Meetings may be
held at any time at the request of either of the joint chairs of a
legislative entity or on written petition of two of the members of a
legislative entity from each house.
(b) Each member of the legislature is entitled to attend and
present the member's views in any meeting of the legislative
entity. A legislator who is not a member of the legislative entity
may not vote.
(c) As an exception to Chapter 551 and other law, if a
meeting is located in Austin and the joint chairs of a legislative
entity are physically present at the meeting, then any number of the
other members of the legislative entity may attend the meeting by
use of telephone conference call, videoconference 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 legislative entity to
otherwise fully participate in any meeting of the legislative
entity. This subsection applies without exception with regard to
the subject of the meeting or topics considered by the members.
(d) A meeting held by use of telephone conference call,
videoconference 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 legislative entity 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 8.07. Section 783.003(4), Government Code, is
amended to read as follows:
(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 of state government.
ARTICLE 9. TRANSITION PROVISIONS AND EFFECTIVE DATES
SECTION 9.01. (a) On the effective date of this Act the
state auditor's office is renamed the State Accountability 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 State Accountability Office without a change in status;
(2) a reference in law to the state auditor's office
means the State Accountability Office; and
(3) all funds appropriated to 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 State Accountability Office.
SECTION 9.02. (a) In this section, "department" and
"office" have the meanings assigned by Section 321.001, Government
Code, as amended by this Act.
(b) Each department, other than the Texas Department of
Criminal Justice and the Texas Youth Commission, that has an
inspector general and each department, other than the Texas
Department of Criminal Justice and the Texas Youth Commission, that
does not have an inspector general but that has a division
responsible for investigating fraud and abuse in the expenditure of
funds shall enter into a memorandum of understanding with the
office under which:
(1) the responsibilities of the inspector general or
division that involve the execution of the laws and the
responsibilities of the inspector general or division that concern
only auditing and investigation are clearly defined and delineated;
(2) the responsibilities of the inspector general or
division that involve the execution of the laws remain under the
authority of the department; and
(3) the responsibilities of the inspector general or
division that concern only auditing and investigation are
transferred to the office.
(c) With respect to responsibilities transferred to the
office under Subsection (b)(3) of this section, the office has
discretion with respect to whether to allow employees whose duties
primarily involve a transferred function to remain in the same
physical location while performing those duties or to require that
the employees are housed in another facility.
(d) All employees whose duties primarily involve a
transferred function and all property and support staff and
appropriations connected to those employees and their duties are
transferred to the office.
SECTION 9.03. (a) Not later than March 1, 2010, the State
Accountability Office shall develop the standard contract
provision required by Section 321.0122, Government Code, as added
by this Act.
(b) A department is not required to comply with Section
321.0122, Government Code, as added by this Act, until September 1,
2010.
SECTION 9.04. A governmental entity is not required to
submit a report under Section 331.007, Government Code, as added by
this Act, until the end of the first full state fiscal quarter after
the effective date of this Act.
SECTION 9.05. (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 State
Accountability 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 State
Accountability Office for that biennium.
SECTION 9.06. 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 9.07. (a) The changes in law made by this Act do not
affect the entitlement of a person who is a member of a board,
commission, or council serving immediately before the effective
date of this Act to continue to carry out the board's, commission's,
or council's functions for the remainder of the member's term.
(b) As soon as possible after the effective date of this
Act, the lieutenant governor and speaker of the house of
representatives shall appoint members in accordance with Sections
321.002, 322.001, 323.001, and 324.004, Government Code, as amended
by this Act, and Section 331.002, Government Code, as added by this
Act.
SECTION 9.08. 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, 2010.